SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
|
|
|
|
|
|
|
|
NTT DOCOMO, INC.
|
|
|
|
|
Date: May 25, 2017
|
|
|
|
By:
|
|
/S/ KATSUYUKI TAKAGI
|
|
|
|
|
|
|
Katsuyuki Takagi
Head of Investor Relations
|
Information furnished in this form:
1. Notice of Convocation of the 26th Ordinary General Meeting of Shareholders
Notice of
Convocation of the 26th Ordinary
General Meeting of Shareholders
NTT DOCOMO, INC.
This is an
English translation of the Notice of Convocation of the Ordinary General Shareholders Meeting for the 26
th
Fiscal Year (the Notice) of NTT DOCOMO, INC. and its subsidiaries
(DOCOMO, the Company, we, or our Group). This translation includes a translation of the audit report of KPMG AZSA LLC, DOCOMOs independent auditor, of the financial statements included in the
original Japanese language Notice. KPMG AZSA LLC has not audited and makes no warranty as to the accuracy or otherwise of the translation of the financial statements or other financial information included in this translation of the Notice.
TABLE OF CONTENTS
|
|
|
|
|
New Brand Statement
|
|
|
1
|
|
|
|
Message from the President
|
|
|
2
|
|
|
|
Notice of Convocation of the 26th Ordinary General Meeting of Shareholders
|
|
|
3
|
|
|
|
(Attachments)
|
|
|
|
|
|
|
Business Report
|
|
|
11
|
|
|
|
Consolidated Balance Sheet [U.S.GAAP]
|
|
|
44
|
|
|
|
Consolidated Statement of Income [U.S.GAAP]
|
|
|
45
|
|
|
|
Consolidated Statement of Changes in Equity [U.S.GAAP]
|
|
|
46
|
|
|
|
(Reference) Consolidated Statement of Comprehensive Income [U.S.GAAP]
|
|
|
47
|
|
|
|
Non-Consolidated
Balance Sheet
|
|
|
48
|
|
|
|
Non-Consolidated
Statement of Income
|
|
|
49
|
|
|
|
Non-Consolidated
Statement of Changes in Net
Assets
|
|
|
50
|
|
|
|
Independent Auditors Report regarding the Consolidated Financial Statements
|
|
|
52
|
|
|
|
Independent Auditors Report regarding the
Non-Consolidated
Financial Statements
|
|
|
54
|
|
|
|
Audit Report of Audit & Supervisory Board
|
|
|
56
|
|
NEW BRAND STATEMENT
The new of today, the norm of tomorrow
DOCOMO has embarked on
a new challenge:
connecting the separate elements of daily life
to achieve levels of convenience and enjoyment never seen before.
We call it smart innovation.
Security and peace of
mind, health, education,
and all the other pleasures that go to make up life
we are proposing optimum connections for each individual,
taking
the provision of information and enjoyment of life a giant step forward.
To make this a reality, we are supporting innovation across a wide range of
businesses.
And beyond this, we are also actively developing novel solutions
to the challenges facing society.
This culture of challenge and
innovation is deeply rooted at DOCOMO.
For us, however, its not simply about creating products and
services that are new; its about creating things that, before you know it,
become essential or even taken for granted in daily life.
We
firmly believe the lifestyles that smart innovation
makes possible will become the standard, so deeply ingrained they are hardly noticed.
We envisage a time when the new becomes everybodys
taken-for-granted
standard,
and we are working towards that day with everything at our command.
1
MESSAGE FROM THE PRESIDENT
Dear Shareholders:
I am delighted to
present this convocation notice for the general shareholders meeting for the 26
th
fiscal year (from April 1, 2016 to March 31, 2017).
July 2017 will mark our 25
th
anniversary since establishment. On the occasion of this
important milestone, I would like to extend my deepest appreciation to our valued shareholders for all the support you have provided to us over the years.
During the fiscal year ended March 31, 2017 (FY2016), which was positioned as the year to achieve a vibrant leap toward further
growth beyond income recovery, we promoted the two pillars of reinforcement of telecommunications business and expansion of smart life business and other businesses. As a result of our undertakings, all of our
medium-term targets set for the year ending March 31, 2018 were met one year ahead of the schedule, including the recovery of operating income, expansion of income from smart life business and other businesses and cost efficiency improvement.
Further, we also made progress in the advancement of our LTE network while steadily increasing the number of partners participating in
our +d value
co-creation
activities. We thus believe we indeed achieved a vibrant leap in FY2016.
We recently announced our Medium-Term Strategy 2020 Declaration beyond. Looking ahead to the year 2020 and beyond, we will aim to
amaze and inspire our customers and create new values
hand-in-hand
with our business partners to exceed customers expectations.
As we move ahead with these endeavors, we will strive to transform ourselves to realize a richer future with 5G.
As always, I ask for your continued goodwill and support.
|
|
|
|
|
May 2017
|
|
|
|
|
Kazuhiro Yoshizawa
|
|
|
President and CEO
|
2
Tokyo Stock Exchange: 9437
New York Stock Exchange: DCM
May 29, 2017
To Shareholders
NTT DOCOMO, INC.
11-1,
Nagata-cho
2-chome
Chiyoda-ku,
Tokyo, Japan
President and CEO: Kazuhiro Yoshizawa
NOTICE OF CONVOCATION OF
THE 26
th
ORDINARY GENERAL MEETING OF SHAREHOLDERS
Notice is hereby given that the 26
th
Ordinary General Meeting of Shareholders of the
Company (the Meeting) will be held as described below.
Details
|
|
|
1. Date and Time:
|
|
Tuesday, June 20, 2017 at 10:00 a.m. (Japan Standard Time)
|
|
|
2. Place of the Meeting:
|
|
Tsuru-no-ma,
The Main Banquet Floor
|
|
|
|
|
Hotel New Otani
|
|
|
|
|
4-1,
Kioi-cho,
Chiyoda-ku,
Tokyo, Japan
|
3
3.
|
Matters to be dealt with at the Meeting:
|
Matters to be reported:
|
1)
|
Report on Business Report, Consolidated and
Non-Consolidated
Financial Statements for the 26
th
Fiscal Year (from April 1,
2016 to March 31, 2017).
|
|
2)
|
Report on Results of Audit of Consolidated Financial Statements by Registered Public Accountants and Audit & Supervisory Board.
|
Matters to be resolved:
|
|
|
First Item of Business:
|
|
Appropriation of Retained Earnings
|
|
|
Second Item of Business:
|
|
Partial Amendments to Articles of Incorporation
|
|
|
Third Item of Business:
|
|
Election of Two (2) Directors
|
|
|
Fourth Item of Business:
|
|
Election of Two (2) Audit & Supervisory Board Members
|
A copy of the Business Report and our Consolidated and
Non-Consolidated
Financial Statements and a certified copy of the Independent Auditors Report and the Audit Report of Audit & Supervisory Board for the 26
th
Fiscal Year required to be attached are included as pages 12-59 hereto.
In accordance with the applicable laws and regulations, and the provisions of Article 16 of the Companys Articles of Incorporation, we
have posted the Notes to the Consolidated and
Non-Consolidated
Financial Statements, which comprise the Attachments to this Notice of Convocation of the
26
th
Ordinary General Meeting of Shareholders, at the Companys following web site:
(
https://www.nttdocomo.co.jp/english/corporate/ir/event/meeting/index.html
) instead of including them herein.
Our Consolidated and
Non-Consolidated
Financial Statements included in the Attachments to the Notice
of Convocation of the 26
th
Ordinary General Meeting of Shareholders are part of our Consolidated and
Non-Consolidated
Financial Statements audited by the
Independent Auditor in preparing the Independent Auditors Report.
Should any revision be needed with regard to the Reference
Materials for the Ordinary General Meeting of Shareholders, Business Report or Consolidated and
Non-Consolidated
Financial Statements, the Company will publish such revision on its website:
https://www.nttdocomo.co.jp/english/corporate/ir/event/meeting/index.html
4
REFERENCE MATERIALS FOR THE ORDINARY GENERAL MEETING OF SHAREHOLDERS
Items of Business and Matters for Reference
|
|
|
First Item of Business:
|
|
Appropriation of Retained Earnings
|
Items relating to
year-end
dividends
Taking into account the consolidated results of operations, financial conditions and dividend payout ratio, the Company distributes dividends
based on the principle of providing stable and sustainable dividends. The Company proposes to pay the
year-end
dividend for the 26
th
fiscal year as follows:
|
(1)
|
Type of Dividend Asset
|
Cash
|
(2)
|
Proposed Appropriation of Dividend Assets to Shareholders and Total Amount of Dividend Payment
|
¥40 per share of common stock of the Company
Total Amount of Dividend Payment: ¥148,183,421,320
(The Company paid an interim dividend in November 2016. Accordingly, the aggregate amount of annual dividends for this fiscal year, i.e., the
sum of interim and
year-end
dividends, will be ¥80 per share.)
|
(3)
|
Effective Date of the Appropriation of Dividends from Retained Earnings
|
Wednesday,
June 21, 2017
<Reference>
|
|
|
|
|
|
|
|
|
|
|
|
|
22
nd
fiscal
year
|
|
23
rd
fiscal
year
|
|
24
th
fiscal
year
|
|
25
th
fiscal
year
|
|
26
th
fiscal
year
|
Dividend per share (annual)
|
|
¥60
|
|
¥60
|
|
¥65
|
|
¥70
|
|
¥80
|
|
|
|
Note:
|
|
The Company conducted a 1:100 stock split with an effective date of October 1, 2013 (23
rd
fiscal year). The dividend amounts per share in the table above are adjusted to
reflect this stock split.
|
5
Second Item of Business:
Partial Amendments to Articles of Incorporation
1.
|
Reasons for Amending the Articles of Incorporation of the Company
|
In order to prepare for our
future business deployment, the Company proposes to make necessary amendments to parts of Article 2 (Purpose) of the existing Articles of Incorporation of the Company.
Details of amendments are as follows:
(Changes are underlined)
|
|
|
|
|
|
|
|
|
Current Articles of Incorporation
|
|
Proposed Articles of Incorporation
|
|
|
(Purpose)
|
|
|
|
(Purpose)
|
|
|
|
|
Article 2
|
|
(Provisions omitted)
|
|
Article 2
|
|
(Same as present)
|
|
|
1~15
|
|
(Provisions omitted)
|
|
1~15
|
|
(Same as present)
|
|
|
|
|
(Newly established)
|
|
16
|
|
Fee-charging employment agency business
|
|
|
16
~
22
|
|
(Provisions omitted)
|
|
17
~
23
|
|
(Same as present)
|
|
|
6
Third Item of Business:
Election of Two (2) Directors
As two (2) Directors, Mr. Akira Terasaki and Mr. Seizo Onoe, will resign at the close of this meeting, it is proposed that two
(2) Directors be elected to fill the vacancies.
The candidates for positions as Directors are as follows:
|
|
|
|
|
|
|
|
|
|
|
Candidate
Number
|
|
Name
(Date of Birth)
|
|
History, Positions, Responsibilities and
Principal Concurrent Positions
|
|
Number
of
Company
Shares
Owned
|
|
1
|
|
Hiroshi Nakamura
(April 4, 1962)
|
|
April 1987
|
|
Entered NIPPON TELEGRAPH AND TELEPHONE CORPORATION (NTT)
|
|
|
8,800
|
|
|
|
|
|
July 2006
|
|
Senior Manager of R&D Strategy Department of the Company
|
|
|
|
|
|
|
|
|
October 2006
|
|
Senior Manager of Core Network Development Department of the
Company
|
|
|
|
|
|
|
|
|
July 2010
|
|
General Manager of Core Network Development Department of the
Company
|
|
|
|
|
|
|
|
|
June 2014
|
|
Senior Vice President, General Manager of Core Network Development
Department of the Company
|
|
|
|
|
|
|
|
|
October 2014
|
|
Senior Vice President, General Manager of R&D Strategy Department
of the Company (To the present)
|
|
|
|
|
|
|
|
|
Reasons for
election as candidate for director:
Mr. Nakamura has been elected as candidate for director for his engagement in research and development activities
and other operations, his rich experience in business execution as well as for his excellent character and wealth of knowledge.
|
|
|
|
|
|
|
2
|
|
Hozumi Tamura
|
|
April 1987
|
|
Entered NTT
|
|
|
6,600
|
|
|
|
(December 12, 1962)
|
|
July 2004
|
|
Senior Manager of Product Department of the Company
|
|
|
|
|
|
|
|
|
July 2007
|
|
Senior Manager of Corporate Strategy & Planning Department of
the Company
|
|
|
|
|
|
|
|
|
June 2012
|
|
General Manager of Procurement and Supply Department of the
Company
|
|
|
|
|
|
|
|
|
July 2013
|
|
General Manager of Smart-life Planning Department of the
Company
|
|
|
|
|
|
|
|
|
June 2014
|
|
Senior Vice President, General Manager of Smart-life Planning
Department of the Company (To the present)
|
|
|
|
|
|
|
|
|
Reasons for election as candidate for director:
Mr. Tamura has been elected as candidate for director for his engagement in service planning, corporate strategy & planning and other operations,
his rich experience in business execution as well as for his excellent character and wealth of knowledge.
|
|
|
|
|
|
|
|
|
Note:
|
|
NIPPON TELEGRAPH AND TELEPHONE CORPORATION (NTT) is the parent of the Company.
|
7
|
|
|
Fourth Item of Business:
|
|
Election of Two (2) Audit & Supervisory Board Members
|
As two (2) audit & supervisory board members, Mr. Tooru Kobayashi and Mr. Naoto
Shiotsuka, will resign at the close of this Meeting, it is proposed that two (2) audit & supervisory board members, Mr. Shoji Suto to fill the vacancy left by Mr. Tooru Kobayashi and Mr. Hironobu Sagae to fill the
vacancy left by Mr. Naoto Shiotsuka, be elected.
The candidates for audit & supervisory board member, to whom the
Audit & Supervisory Board has given its approval, are as follows:
|
|
|
|
|
|
|
|
|
|
|
Candidate
Number
|
|
Name
(Date of Birth)
|
|
History, Positions, Responsibilities and
Principal Concurrent Positions
|
|
Number
of
Company
Shares
Owned
|
|
1
|
|
Shoji Suto
|
|
April 1980
|
|
Entered NTT Public Corporation
|
|
|
12,900
|
|
|
|
(March 4, 1957)
|
|
June 2008
|
|
Senior Vice President, General Manager of Sales Promotion Department of
the Company
|
|
|
|
|
|
|
|
|
June 2009
|
|
Executive Vice President, Executive General Manager of Marketing
Business Department, Member of the Board of Directors of DOCOMO Business Net Inc.
|
|
|
|
|
|
|
|
|
July 2009
|
|
Executive Vice President, Executive General Manager of Marketing
Division, Member of the Board of Directors of DOCOMO Business Net Inc.
|
|
|
|
|
|
|
|
|
June 2010
|
|
Executive Vice President, Executive General Manager of Corporate
Marketing Division, Member of the Board of Directors of DOCOMO Business Net Inc.
|
|
|
|
|
|
|
|
|
June 2011
|
|
Senior Vice President, Executive General Manager of Shikoku Regional
Office of the Company
|
|
|
|
|
|
|
|
|
June 2014
|
|
Executive Vice President, Responsible for Consumer Sales and Branches
in Kanto and Koshinetsu areas, Member of the Board of Directors of the Company
|
|
|
|
|
|
|
|
|
July 2014
|
|
Executive Vice President, Responsible for Consumer Sales, Member of the
Board of Directors of the Company
|
|
|
|
|
|
|
|
|
June 2015
|
|
Senior Executive Vice President, Member of the Board of Directors of
DOCOMO CS Inc. (To the present)
|
|
|
|
|
|
|
|
|
Reasons for election as a candidate for audit &
supervisory board member:
Mr. Suto has been elected as a candidate for audit & supervisory board member for his engagement in the
Companys business execution and his service as Vice President of our group company, and the Companys expectations that he will continue to perform an audit and supervisory function based on his extensive experience and insights
pertaining to telecommunications business accumulated through his career.
|
|
8
|
|
|
|
|
|
|
|
|
|
|
Candidate
Number
|
|
Name
(Date of Birth)
|
|
History, Positions, Responsibilities and
Principal Concurrent Positions
|
|
Number
of
Company
Shares
Owned
|
|
2
|
|
Hironobu Sagae
(March 3, 1959)
|
|
April 1981
|
|
Entered NTT Public Corporation
|
|
|
0
|
|
|
|
|
July 2008
|
|
General Manager of Human Resources Management Department of NTT DATA
Corporation
|
|
|
|
|
|
|
|
June 2011
|
|
Senior Vice President, General Manager of Accounts and Finance
Department, General manager of Human Resources Management Department, Member of the Board of Directors of NTT DATA Corporation
|
|
|
|
|
|
|
|
|
June 2012
|
|
Senior Vice President, General Manager of Accounts and Finance
Department, Member of the Board of Directors of NTT DATA Corporation
|
|
|
|
|
|
|
|
|
June 2014
|
|
Executive Vice President, General Manager of Accounts and Finance
Department, Member of the Board of Directors of NTT DATA Corporation
|
|
|
|
|
|
|
|
|
June 2016
|
|
President, Member of the Board of Directors of NTT DATA MANAGEMENT
SERVICE Corporation. (To the present)
|
|
|
|
|
|
|
|
|
Reasons for election as a candidate for outside
audit & supervisory board member:
Mr. Sagae has been elected as a candidate for audit & supervisory board member due to his
experience in corporate management and his career in Financial Department of NTT DATA Corporation and the Companys expectations that he will continue to perform an audit and supervisory function based on his extensive knowledge pertaining to
finance and accounting.
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
1.
|
|
DOCOMO Business Net, Inc. was a subsidiary of the Company, but was dissolved in July 2014 upon the establishment of DOCOMO CS, Inc. by merging the four companies of DOCOMO Engineering, Inc., DOCOMO Service, Inc., DOCOMO Mobile, Inc.
and DOCOMO Business Net, Inc. In addition, DOCOMO CS, Inc. is a subsidiary of the Company.
|
|
|
2.
|
|
NTT DATA Corporation and NTT DATA MANAGEMENT SERVICE Corporation are subsidiaries of NTT which is the parent of the Company.
|
|
|
3.
|
|
Mr. Shoji Suto is expected to resign from the Board of Directors of DOCOMO CS Inc. on June 15, 2017. During the past five years, Mr. Suto had served as President and Chief Executive Officer of Business Expert Inc., a
subsidiary of DOCOMO CS Inc., and currently serves as President and Chief Executive Officer of Business Expert Inc., but is expected to resign from the position on June 8, 2017.
|
|
|
4.
|
|
Mr. Hironobu Sagae is expected to resign from the Board of Directors of NTT DATA MANAGEMENT Service Corporation on June 14, 2017. During the past five years, Mr. Sagae has served as President and Chief Executive
Officer of
R-Cubic
corporation, a subsidiary of NTT, and currently serves as President and Chief Executive Officer of
R-Cubic
corporation, but is expected to resign from
the position on June 15, 2017.
|
|
|
5.
|
|
Mr. Hironobu Sagae is a candidate for outside audit and supervisory board member of the Company.
|
9
|
|
|
|
|
|
|
6.
|
|
Mr. Hironobu Sagae has received compensation, etc., from NTT DATA Corporation and NTT DATA MANAGEMENT SERVICE Corporation, as a member of the Board of Directors during the past two years. Mr. Sagae is expected to continue
receiving compensation, etc., as member of the Board of Directors of NTT DATA MANAGEMENT SERVICE Corporation. In addition, he has not received compensation, etc., from
R-
Cubic corporation during the past two
years.
|
|
|
7.
|
|
If the election of Mr. Shoji Suto and Mr. Hironobu Sagae are approved, in accordance with the provisions of Article 427, Paragraph 1 of the Companies Act of Japan, the Company plans to enter into a limited liability
contract with each of Mr. Suto and Mr. Sagae, respectively, which sets forth the upper limit of damage compensation liability as provided in Article 423 Paragraph 1 of the Companies Act of Japan.
|
10
(Attachments)
BUSINESS REPORT
(For the fiscal year from
April 1, 2016 to March 31, 2017)
Note:
|
The term FY2016 hereinafter refers to the fiscal year ended March 31, 2017, and other fiscal years are referred to in a corresponding manner. All
non-consolidated
figures regarding results of operations in this report were prepared in accordance with accounting principles generally accepted in Japan (Japanese GAAP), unless otherwise stated herein. Consolidated results contained herein were
prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP), unless otherwise noted.
|
1. Business
Matters of the Corporate Group
(1) Main Business Activities (As of March 31, 2017)
The main business activities of our Group are summarized in the table below.
|
|
|
Business Segment
|
|
Main Business Areas
|
Telecommunications business
|
|
Mobile phone services (LTE(Xi) services and FOMA services), optical-fiber broadband services, satellite mobile communications services, international services and the equipment sales related to these services, etc.
|
|
|
Smart life business
|
|
Services offered through dmarket portal such as distribution of video, music and electronic books, etc., finance/payment services, online shopping service and other life-related services, etc.
|
|
|
Other businesses
|
|
Mobile Device Protection Service, commissioned development/sales and maintenance of systems, etc.
|
(2) Developments and Results of Operations
<<Summary of the principal initiative>>
The environment surrounding our business has changed significantly.
In Japans telecommunications market, competition has intensified due to the governments
pro-competition
policy, the rise of
low-cost
smartphones offered by Mobile Virtual Network Operators (MVNOs) and other factors. In addition, we have seen technical
advancements in areas such as artificial intelligence (AI), IoT* and drones, as well as an expansion of customer touchpoints by various service providers leveraging loyalty point programs and other means. These changes have brought about both active
competition in the telecommunications market and collaboration with new players from other industries, accelerating competition in new markets that transcend the conventional boundaries of the telecommunications business.
Amid these changes in the market environment, we positioned the fiscal year ended March 31, 2017 as the period to make a vibrant
leap toward further growth beyond income recovery, and promoted the two pillars of reinforcement of telecommunications business and expansion of smart life business and other businesses. Our strategy is based on value
co-creation,
which we call +d, through which we pursue the creation of new values by evolving our collaborative activities with a wide range of external partners.
In order to enhance the convenience of d POINTs, we made efforts to increase the number of stores participating in the d
POINT program, including, for example, through our +d initiative with McDonalds Co. Ltd, which enables customers to accumulate and redeem d POINTs at all McDonalds restaurants in Japan. In another effort to
create new value, we launched an
over-the-counter
insurance consultation service, DOCOMO Insurance Consultation, at our docomo Shops. Other projects included
the commencement of the DOCOMO Drone Project, a series of verification trials using drones for shopping and package delivery services, and verification trials for a self-driving bus utilizing mobile network, which we conducted jointly
with various external partners to make advances towards solving social issues.
11
Meanwhile, we continued to enhance customer returns, with emphasis on enriching our
Kake-hodai & Pake-aeru billing scheme. As a part of such measures, we launched the docomo Child-Raising Support Program for families with children, offering additional benefits, convenience and assisting them in
making their precious memories.
|
*
|
Abbreviation for Internet of Things. A concept that describes a world in which everything is connected to the Internet, enabling remote control and management of devices, etc.
|
<<Promotion of the New Added Value
Co-creation
by Moving Forward with Our +d Initiatives>>
🌑
Expansion in the number of +d partners
The number of partners is steadily growing thanks to an increase in the number of stores using d POINTs and the
promotion of +d initiatives that aim to solve social issues. As of March 31, 2017, the number of our affiliated partners has increased to 236, and we are speeding up creative collaboration with all of our partners.
🌑
Nationwide Expansion of Accumulating and Redeeming d POINTs at
McDonalds
In the past, customers were able to accumulate and redeem d POINTs at a limited number of
McDonalds restaurants in Japan, but now customers are able to use d POINTs at McDonalds restaurants across the country. Furthermore, we have launched several campaigns with McDonalds to enhance the convenience of
d POINTs.
Partner: McDonalds Company (Japan), Ltd.
🌑
Nationwide Expansion of IoT for Livestock Farm Utilizing AI
To solve social issues such as lack of livestock farm workers and to improve farming productivity, we released a new product
called Farmnote Color throughout Japan in conjunction with two other organizations. This is an IoT device for cattle that utilizes AI to analyze active data such as estrus in cattle and signs of disease.
Partners: Farmnote, Inc. and National Federation of Agricultural Cooperative Associations
🌑
Self-driving Bus Service Using a Communications Network
To solve social issues such as a shortage in the number of vehicle drivers and the increasing unavailability of public
transportation in rural areas, we founded the Smart Mobility Promotion Consortium with other three organizations and have begun demonstration tests of a self-driving bus service at Kyushu Universitys Ito Campus with the aim of putting a safe
and convenient service that uses a communications network and AI into operation as soon as possible.
Partners: Kyushu
University, DeNA Co., Ltd. and Fukuoka City
🌑
Efficiency Improvements in
Allocation of Taxis Utilizing AI
To solve social issues such as a shortage in the number of vehicle drivers caused by the
falling birthrate and aging society, we have developed a new Technology to Forecast Travel Demand that forecasts the demand for taxis in real time, and started demonstration tests using the name AI Taxi. In demonstration
tests, this service has achieved an overall forecast accuracy of 92.9%.
Partners: Tokyo Radio Cooperative, FUJITSU LIMITED
and FUJITSU TEN LIMITED
12
<<Results of Operations for the FY2016>>
(Billions of yen)
|
|
|
|
|
|
|
|
|
|
|
|
|
Item
|
|
25th Fiscal Year
(FY2015)
|
|
|
26th Fiscal Year
(FY2016)
|
|
|
Year-on-Year
Change
|
|
Operating revenues
|
|
|
4,527.1
|
|
|
|
4,584.6
|
|
|
|
1.3
|
%
|
Operating income
|
|
|
783.0
|
|
|
|
944.7
|
|
|
|
20.7
|
%
|
Income before income taxes and equity in net income (losses) of affiliates
|
|
|
778.0
|
|
|
|
949.6
|
|
|
|
22.0
|
%
|
Net income attributable to NTT DOCOMO, INC.
|
|
|
548.4
|
|
|
|
652.5
|
|
|
|
19.0
|
%
|
For the fiscal year ended March 31, 2017, despite a decrease in equipment sales revenues and a negative
impact on mobile communications services revenues caused by the further expansion of our Kake-hodai & Pake-aeru billing scheme for the purpose of increasing returns to our customers, operating revenues increased by
¥57.5 billion from the previous fiscal year to ¥4,584.6 billion, mainly due to the recovery of telecommunications services revenues as a result of the growth of the packet consumption of our Kake-hodai &
Pake-aeru billing plan subscribers, the expansion of smartphone use and the demand for tablets and other products purchased as a second mobile device for individual use, and the growth in the number of docomo Hikari users, as well
as the growth of our smart life business and other businesses such as dmarket and other content services.
Operating expenses
decreased by ¥104.2 billion from the previous fiscal year to ¥3,639.8 billion, owing primarily to a decline of depreciation expenses as a result of our change in depreciation method used and a decrease in cost of equipment sold and
initiatives to pursue further cost efficiency, despite an increase in expenses associated with the expansion of docomo Hikari revenues and the growth of revenues from our smart life business and other businesses, as well as an increase
in expenses associated with the initiatives for enhancing returns to our customers such as Renewal Points and docomo Child Raising Support Program.
As a result, operating income increased by ¥161.7 billion from the previous fiscal year to ¥944.7 billion, which was higher
than ¥940.0 billion, the full-year forecast as revised in the second quarter of the fiscal year ended March 31, 2017.
Income
before income taxes and equity in net income (losses) of affiliates was ¥949.6 billion, and net income attributable to NTT DOCOMO, INC. increased by ¥104.2 billion from the previous fiscal year to ¥652.5 billion for the
fiscal year ended March 31, 2017.
13
<<Trend of Business Segments>>
Principal initiatives of our group in each business segment in the fiscal year ended March 31, 2017 are summarized below.
∎
|
|
Telecommunications Business
|
Despite a decrease in equipment sales revenues and the negative
impact on mobile communications services revenues caused by the further expansion of our Kake-hodai & Pake-aeru billing scheme for the purpose of increasing returns to our customers, operating revenues from telecommunications
business for the fiscal year ended March 31, 2017 were ¥3,711.2 billion, an increase of ¥21.4 billion, or 0.6% from the previous fiscal year, as a result of the growth of the packet consumption of our
Kake-hodai & Pake-aeru billing plan subscribers, the expansion of smartphone use and the demand for tablets and other products purchased as a second mobile device for individual use, and the growth in the number of docomo
Hikari users, of which there were 3.40 million as of March 31, 2017.
Operating expenses from telecommunications business
decreased by ¥102.6 billion, or 3.4%, from the previous fiscal year to ¥2,878.4 billion due primarily to a decrease in depreciation expenses as a result of our change in depreciation method used, a decrease in cost of equipment
sold and initiatives to pursue further cost efficiency, despite the increase in expenses associated with docomo Hikari revenues as well as an increase in expenses associated with initiatives for enhancing returns to our customers, such
as Renewal Points and docomo Child Raising Support Program.
Consequently, operating income from telecommunications
business was ¥832.8 billion, an increase of ¥123.9 billion, or 17.5%, from the previous fiscal year.
<<Number of Subscriptions
for Principal Services>>
(Thousands of subscriptions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Category
|
|
25th Fiscal Year
(FY2015)
|
|
|
26th Fiscal Year
(FY2016)
|
|
|
Increase or
Decrease
|
|
|
Year-on-Year
Change
|
|
Mobile telecommunications services
|
|
|
70,964
|
|
|
|
74,880
|
|
|
|
3,916
|
|
|
|
5.5
|
%
|
Including: Kake-hodai & Pake-aeru billing plan
|
|
|
29,704
|
|
|
|
37,066
|
|
|
|
7,362
|
|
|
|
24.8
|
%
|
LTE(Xi) services
|
|
|
38,679
|
|
|
|
44,544
|
|
|
|
5,865
|
|
|
|
15.2
|
%
|
FOMA services
|
|
|
32,285
|
|
|
|
30,336
|
|
|
|
(1,949
|
)
|
|
|
(6.0
|
)%
|
Churn rate (%)
|
|
|
0.62
|
%
|
|
|
0.59
|
%
|
|
|
(0.03
|
)point
|
|
|
|
|
Notes:
|
1.
|
Number of subscriptions to Mobile telecommunications services, Mobile telecommunications services (LTE(Xi)) services and Mobile telecommunications services (FOMA) services include Communication Module services
subscriptions.
|
|
2
|
Churn rate is calculated excluding the subscriptions and cancellations of subscriptions of Mobile Virtual Network Operators (MVNOs).
|
14
|
🌑
|
Enhanced Customer Returns
|
We continued to strengthen returns to our customers
mainly by leveraging our Kake-hodai & Pake-aeru billing scheme in an effort to address to their diverse needs.
In June 2016, to improve the benefits offered to long-term users, we introduced two new subscription courses for customers
completing a
two-year
contract. These customers can choose between the Free Course and Zutto DOCOMO Discount Course, subscriptions with or without cancellation fees. At the same time,
we raised the amount of monthly discounts offered under the Zutto DOCOMO Discount program and started offering Renewal Points to customers renewing their subscription contract.
In September 2016, we launched the Ultra Pack designed for customers with high data usage. In October 2016, we
introduced two new plans for
LTE-enabled
docomo Feature Phone users: Kake-hodai Light Plan (for feature phones), which provides for a monthly flat rate unlimited domestic voice calls of under five
minutes, and Keitai Pack, a
two-tier
rate plan for packet data communications. From November 2016, we started offering the Kids Keitai Plus rate plan for customers using our
Kids Phone. And starting in January 2017, to cater to users with limited data usage, we enabled users to bundle the Kake-hodai Light Plan (for smartphones/tablets) with Data S Pack.
As a result of these undertakings, the total number of Kake-hodai & Pake-aeru subscriptions as of
March 31, 2017 reached 37.07 million, recording an increase of 7.36 million from March 31, 2016.
|
🌑
|
Actions for Boosting Smartphone Usage
|
From August 2016, we started offering
the Smartphone Debut Discount, a program that provides first-time smartphone users with discounts on their basic monthly charges for up to 24 months. Furthermore, starting January 2017, we increased the amount of discounts available with
the Kake-hodai Light Plan (for smartphones/tablets) for first-time smartphone users of age 60 and higher, called the Senior Special Discount program which allows seniors to use our services at more affordable rates.
To further accelerate the adoption of smartphones, we continued to expand our product lineup, releasing iPhone 7, iPhone 7 Plus
and launching other new models equipped with new features such as Suguden (which enables tapless operation of smartphones) as well as our first original smartphone, MONO
MO-01J,
featuring enhanced ease of use.
As a result of these undertakings, the total number of our smartphone/tablet users grew to
35.86 million as of March 31, 2017.
|
🌑
|
Actions to Enrich Service Offerings and Expand Adoption of docomo Hikari
|
In April 2016, we added new offerings to our docomo Hikari optical-fiber broadband service: docomo Hikari
Denwa IP telephone service and docomo Hikari TV Option IP TV service. By doing so, we have been able to integrate all customer-related operations for our optical-fiber broadband, fixed-line telephone and TV services, from
application to after-sales.
We also introduced other new rate plans and services to accommodate the needs of our
customers, including the Hikari Fukusu Wari package for customers subscribing to two or more docomo Hikari lines for a group of people to share, and docomo Hikari Type C which allows subscribers to use the
optical-fiber broadband and Internet access services offered by our partner cable TV operators as a set.
Further, in
February 2017, we released docomo Hikari Router 01, a home
Wi-Fi
router that comes together with a remote assistance service for setting up Internet access and
Wi-Fi
environments. Simultaneously, we commenced docomo Hikari Router Security, a new service that allows users to use docomo Hikari services easily, conveniently and free from
concerns.
Because of our efforts regarding these initiatives and also our various promotional campaigns were well-received
by our customers, the total number of docomo Hikari subscriptions grew to 3.40 million as of March 31, 2017, posting a net increase of 1.84 million over the past fiscal year.
15
|
🌑
|
Actions for Reinforcement of Communication Network
|
In an effort to reinforce
our networks, we have expanded the coverage of our PREMIUM 4G service to 1,421 cities across Japan as of March 31, 2017. We also improved the speed of network by using carrier
aggregation
*
using a new spectrum band of 3.5GHz from June 2016, and through other new techniques, we commenced a communication service that offers Japans fastest maximum downlink speed of
682Mbps in March 2017.
Through these measures, we have successfully created a high-speed communication environment that
provides customers with comfortable network experience.
We conducted surveys of effective data speeds adhering to the
Guidelines for the Effective Speed Measurement Method of Internet Connection Services Provided by Mobile Telecommunications Carriers and Information Providing Method, etc. for Users defined by the Ministry of Internal Affairs and
Communications. The results indicated that we achieved improvements in both download and upload speeds over the previous year: the median (Android + iOS) of our download speeds was 118Mbps (166% the level of the previous year), and that of our
upload speeds was 23Mbps (110% the level of the previous year).
|
*
|
Technology that achieves improvement of data speeds by aggregating multiple carrier frequencies
|
Operating revenues from smart life business for the
fiscal year ended March 31, 2017 were ¥501.9 billion, a decrease of ¥2.2 billion, or 0.4%, from the previous fiscal year, due mainly to a decrease in revenues from our subsidiaries, despite an increase of content services
revenues such as dmarket and other content services.
Operating expenses from smart life business were
¥444.0 billion, a decrease of ¥13.7 billion, or 3.0%, from the previous fiscal year, due mainly to a decrease in expenses associated with revenues from our subsidiaries and despite an increase in expenses associated with the growth
in content services revenues.
As a consequence, operating income from smart life business was ¥57.9 billion, an
increase of ¥11.5 billion, or 24.7%, from the previous fiscal year.
|
🌑
|
Initiatives Aimed at Enhancing dmarket
|
We continued enhancing our
dmarket lineup by offering new services in our smart life business that are closely related to our customers health and livelihoods.
To provide total support for customers health, we started offering dhealthcare pack in April 2016, an
integrated package that combines four health-related services, including the Aruite-Otoku application that allows users to earn d POINTs from the number of steps recorded on their smartphones. Also, in July 2016, we rebranded
our Home Anshin Partner service to dliving, adding new components such as a childcare support service offered at a discounted rate, and a feature that allows users to check their home electricity consumption, etc. These
initiatives, along with the brisk sales of dmagazine, resulted in a rise in the combined number of dmarket subscriptions
*
to 16.08 million as of March 31, 2017.
|
*
|
The total number of users using dTV, danime store, dhits, dkids, dmagazine, dgourmet, dhealthcare pack and dliving services
under a monthly subscription arrangement.
|
|
🌑
|
Actions for Proliferation of d CARD
|
Since October 2016, our
d CARD credit card service and our iD contactless payment service have supported Apple Pay. This enables users of Apply
Pay-compatible
devices to use d CARD on Apple Pay,
and users of iPhone 7, iPhone 7 Plus and Apple Watch Series 2 to pay with iD for purchases at stores.
In
November 2016, we started offering d CARD PREPAID, a prepaid card which can be used for payments at all stores accepting iD across Japan as well as those accepting Mastercard worldwide. It also carries the features of the
d POINT CARD for accumulating and using points.
16
|
🌑
|
Launch of New Sports Content Service toward the Realization of a Smart Life
|
In
February 2017, in collaboration with the Perform Group, we launched a new sports content service, DAZN for docomo. The service offers both live and
on-demand
video with unlimited viewing access to
Meiji Yasuda J. League soccer games and other popular sports programs from Japan and overseas.
|
🌑
|
Actions to Support Regional Vitalization
|
Starting in December 2016, our
gacco online video learning service was adopted as the
e-learning
system for the Regional Revitalization College program promoted by the Office for Promotion of Regional Revitalization
in the Cabinet Office of the government of Japan. The program offers a total of 37 professional courses, including a course on how to build attractive tourist destinations.
|
🌑
|
Bicycle Sharing Service by Using IoT
|
To address social issues such as the need
to reduce greenhouse gas emissions and revitalize regions and tourism, we worked to expand the bicycle sharing business. Specifically, including an experiment carried out over a wide area in
Tokyo
*
, we operated bicycle sharing services with local government business partners, and we enriched usage of services by expanding service areas and improving their qualities.
|
*
|
Conducted with Chiyoda City, Chuou City, Minato City, Shinjuku City, Bunkyo City and Koto City
|
Operating revenues from other businesses for the fiscal year ended
March 31, 2017 amounted to ¥400.4 billion, an increase of ¥41.1 billion, or 11.4%, from the previous fiscal year, driven mainly by an increase in the number of subscriptions for our Mobile Device Protection Service
and the growth of revenues relating to IoT businesses.
Operating expenses from other businesses were ¥346.4 billion, an increase
of ¥14.8 billion, or 4.5%, from the previous fiscal year, as a result of rises in expenses associated with the expansion of revenues from our Mobile Device Protection Service and other services.
Consequently, operating income from other businesses was ¥54.0 billion, an increase of ¥26.3 billion, or 94.9%, from the
previous fiscal year.
To allow customers to utilize LTE connections in IoT
solutions that involve high-speed transmission of large-capacity content, we started marketing a
LTE-enabled
ubiquitous communication module
UM04-KO.
The
module enables stress-free execution of remote control/operational support solutions, such as remote monitoring of images that require high-speed and large-capacity transmission.
To encourage the use of modules in a wide variety of applications, we created the LTE Ubiquitous Plan, a billing
scheme that enables the use of modules at lower transmission speeds and reduced power.
|
🌑
|
Promotion of Global Platform Business through DOCOMO Digital Limited
|
DOCOMOs subsidiary, DOCOMO Digital Limited (DDL), mainly offers mobile payment platforms such as carrier billing payment
and digital marketing-driven mobile content distribution in more than 35 countries through DOCOMO Digital Germany GmbH and Buongiorno S.p.A., subsidiaries of DDL.
DDL has positioned mobile payment platforms as a pillar of future growth in the fiscal year ended March 31, 2017, they
promoted its expansion by providing carrier billing payment for service providers and mobile network operators in various countries. Customers of the carrier billing payment are able to make payments of monthly charges and contents for purchases at
App stores through their billing statements.
17
|
🌑
|
Supporting Program for Business Startups
|
We support the growth of startup
companies and innovate together with them through both our investment in such startups and the activities of DOCOMO Innovation Village.
With respect to our investment activities, we strategically invest in businesses that provide synergies to our own business,
mainly targeting business sectors related to telecommunications and sectors that can provide added value through ICT
*
such as medicine, education, agriculture and others.
With respect to the activities of DOCOMO Innovation Village, we support startup companies through our three core programs:
Village Alliance, Village Community and Village Social Entrepreneurs. Specifically, in each program, we offer opportunities to make connections between us and startups companies or between our employees and entrepreneurs, and supported entrepreneurs
who aim to solve social issues.
|
*
|
Abbreviation for Information and Communication Technology.
|
Operating revenues and income
(loss) in each business segment in the fiscal year ended March 31, 2017 are indicated in the table below.
(Billions of yen)
|
|
|
|
|
|
|
|
|
|
|
|
|
Category
|
|
25th Fiscal Year
(FY2015)
|
|
|
26th Fiscal Year
(FY2016)
|
|
|
Year-on-Year
Change
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications business
|
|
|
3,689.8
|
|
|
|
3,711.2
|
|
|
|
0.6
|
%
|
Smart life business
|
|
|
504.1
|
|
|
|
501.9
|
|
|
|
(0.4
|
)%
|
Other businesses
|
|
|
359.3
|
|
|
|
400.4
|
|
|
|
11.4
|
%
|
Elimination
|
|
|
(26.1
|
)
|
|
|
(28.9
|
)
|
|
|
(10.8
|
)%
|
Total
|
|
|
4,527.1
|
|
|
|
4,584.6
|
|
|
|
1.3
|
%
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications business
|
|
|
708.9
|
|
|
|
832.8
|
|
|
|
17.5
|
%
|
Smart life business
|
|
|
46.5
|
|
|
|
57.9
|
|
|
|
24.7
|
%
|
Other businesses
|
|
|
27.7
|
|
|
|
54.0
|
|
|
|
94.9
|
%
|
Total
|
|
|
783.0
|
|
|
|
944.7
|
|
|
|
20.7
|
%
|
(3) Trend of Capital Expenditures
|
🌑
|
Expansion of Telecommunications Facilities
|
As a result of our aggressive
roll-out
of PREMIUM 4G service in the high-traffic areas in urban centers to construct a network that can offer greater comfort of access to our customers, the total number of PREMIUM
4G-compatible base stations increased from previously 22,800 stations as of March 31, 2016 to 69,700 stations as of March 31, 2017.
In addition, in pursuit of further coverage improvement of our LTE service, we increased the total number of LTE base stations
from 138,100 as of March 31, 2016 to 161,900 as of March 31, 2017.
|
🌑
|
Measures for More Efficient Use of Capital Expenditures
|
Toward the goal of
further strengthening our managerial structure, we continued to pursue more efficient use of capital expenditures through reduction of equipment procurement and other costs, and further improvement of the efficiency of telecommunications facilities
construction. We also aggressively promoted the integration and/or capacity expansion of our facilities with the introduction of high-performance equipment for the purpose of reducing our future network operation costs.
18
As a result of the above measures, the total capital expenditures for the fiscal year ended
March 31, 2017 increased by 0.3% from the previous fiscal year to ¥597.1 billion.
(4) Financing Activities
During the fiscal year ended March 31, 2017, we did not make any long-term financing through capital increase, issuance of corporate
bonds or long-term borrowings.
(5) Research and Development Activities
In order to provide the 5th generation mobile communications system (5G) and develop businesses such as AI, IoT and drones, etc.,
we have been working on R&D for communication networks, devices and services. We also have been proactively working on open innovation with external companies to create new value.
<< Technology Put to Practical Use During the Fiscal Year Ended March 31, 2017 >>
|
🌑
|
Natural-Language Dialogue Platform
|
We launched the Talking Robot for
Biz, a service that companies can customize for their own intended uses, utilizing a natural-language dialogue platform that produces natural dialogue through the use of artificial intelligence. In addition, we provided the same
platform for the ATOM
*
communications robot.
|
*
|
Jointly developed with Kodansha Ltd, Tezuka Productions Co., Ltd, FUJI SOFT INCORPORATED, and VAIO Co., Ltd.
|
|
🌑
|
Communication Partner COCOKUMA
|
We have developed a teddy
bear-shaped robot named COCOKUMA
*
, which is a communications robot that can exchange messages with family members who live far away and that is easier to operate than cellular phone or
smart phone. It is also equipped with a motion sensor, so by talking through COCOKUMA, users can monitor another persons presence.
|
*
|
Jointly developed with Iwaya Co., Ltd, Vitech Global Electronics Co., Ltd, and MOOREdoll Inc, distributed by Iwaya Co., Ltd.
|
|
🌑
|
Customer Translation Service for Corporations
|
To support companies that
provide services to foreign visitors, we launched the translation service called Hanashite Honyaku for Biz, a service that combines two functions: (1) speech translation that allows spoken conversation between Japanese
and another language: and (2) a fixed phrase function that registers responses to frequent phrases.
<< Technology
Developments to be Implemented >>
|
🌑
|
5th Generation Mobile Communications System (5G)
|
We have been engaged in
on-going
collaborative trials with leading global vendors with a view to offering 5G by 2020 and have successfully achieved a data speed of more than 2.5Gbps with a mobile device that was in a vehicle travelling
150km/h.
Moreover, to allow our customers to experience a wide range of services leveraging 5G technology, we have started
to build the 5G Trial Sites and have made agreements to proceed with empirical trials in cooperation with partner companies
*
.
|
*
|
Such partner companies include TOBU Railway Co., Ltd., Sohgo Security Services Co., Ltd., Japan Display Inc., Toppan Printing Co., Ltd. and Fuji Television Network, Inc. (as of the end of March 2017)
|
19
In September 2016, we acquired a license of a
development test station applied for the use of mobile terminals in unmanned aerial vehicles and began to verifying the communication quality in the sky and the impact on terrestrial mobile phone networks. Specifically, we also started
verification trials for the commercialization of proxy shopping services
*1
and package delivery systems
*2
using cellular drones.
|
*1
|
Carried out in conjunction with ENROUTE CO., LTD. and MIKAWAYA21 Co., Ltd.
|
|
*2
|
Carried out in conjunction with Rakuten Co., Ltd. and Autonomous Control Systems Laboratory Ltd.
|
|
🌑
|
Wireless Technology Suitable for IoT
|
To provide LPWA
*
networks and solutions suitable for various forms of IoT products and services, we have started to develop a cellular IoT that allows low price and low power consumption modules based on LTE.
We have also developed and begun empirical trials on gateway devices that allow information collected from IoT devices using
optimal wireless communication for IoT and sent to the cloud via a cellular network.
|
*
|
Abbreviation for Low Power Wide Area. Low Power Wide Area wireless technology that saves power consumption and allows communication over a long distance.
|
|
🌑
|
docomo Smart Parking System
|
To solve the problem of finding parking spaces in
urban areas, we have developed a solution which enables small plots of land to be used as parking spaces, and we started a trial service
*
using this solution at some parking lots in Tokyo since
November 2016.
|
*
|
Using some parking lots operated by Coin Park Co., Ltd., Sharing Service Inc. and Prestige International Inc.
|
|
🌑
|
UI Technology Compatible with Flexible Displays
|
We have developed new UI
*
technology that is compatible with rollable display devices that can change the display size according to users preference. It can optimize the layout of various contents depending on how much
the display has been rolled up.
|
*
|
Abbreviation for User Interface, a means for human-computer interaction how commands are given to a computer and how information is displayed to a user.
|
As a result of the above, the total research and development costs for the fiscal year ended March 31, 2017, decreased by 0.3% from the
previous fiscal year to ¥83.1 billion.
|
Note:
|
Included in the technologies that constitute such as Natural-Language Dialog Platforms is the NTT Groups AI technology corevo.
|
20
(6) CSR Activities
We aspire to help build a society in which everyone can share in a prosperous life of safety, security and comfort, beyond borders and across
generations. We believe it is our corporate social responsibility (CSR) to fulfill the two aspects of (i) Innovative docomo, to solve various social issues in the fields of IoT, medicine, healthcare, education and agriculture
through the
co-creation
of social values, an initiative that we plan to pursue together with various partners to create new services and businesses, and (ii) Responsible docomo, to
thoroughly ensure fair, transparent and ethical business operations as a foundation for the creation of such values. Accordingly, we will strive to realize a sustainable society while expanding our own businesses.
DOCOMO was selected as a component of the Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific), a part of the Down Jones
Sustainability Indices, which is one of the worlds leading indices for ESG
*
investment. Also, DOCOMO was selected as a component of the FTSE4Good Index.
We aspire to build a better future for the earth together with our various stakeholders. In October 2016 we established the DOCOMO Global
Environmental Charter which sets forth our aspirations for the future, and established specific environmental targets in our Green Action Plan 2030.
|
*
|
An investment method that is named after and focuses on the three elements of Environment, Social and Governance.
|
21
<<Innovative docomo>>
|
🌑
|
Cooperation with Local Governments for the Solution of Social Issues
|
In April
2016 we entered into a business collaboration agreement for the use of ICT and data with Kobe City for the purpose of solving various social issues in the regional communities. As a project promoted under this agreement, we commenced the
Kobe City-DOCOMO urban monitoring service (verification trial) using BLE
*
tags for monitoring children.
We have promoted various other joint initiatives with local governments across Japan. One example is a collaboration agreement
with Sendai City in August 2016. The initiative aims to support the development of a sustainably vibrant town with three main areas of focus: disaster prevention and mitigation, regional revitalization and feasibility
tests of near-future technology that uses drones and other technologies.
|
*
|
Abbreviation for Bluetooth Low Energy. One of the extended specifications of Bluetooth that enables communication with reduced power consumption.
|
|
🌑
|
New Service for Customers with Hearing Difficulties
|
In October 2016 we started
a trial offering of Mierudenwa to assist customers with hearing difficulties. The service automatically converts and displays a callers spoken words into text in real time.
<<Responsible docomo>>
|
🌑
|
Actions for Disaster Response and Preparedness
|
In the aftermath of the 2016
Kumamoto Earthquakes, in addition to securing and restoring communication services, we provided assistance to the people and areas affected by the disaster by affording free battery-charging services and
Wi-Fi
spots at evacuation shelters and through the donation of relief funds.
In the aftermath of the torrential rain and other
harms caused by Typhoon No.10 in 2016, we promptly secured and restored communication services. We also implemented various measures to help disaster victims affected by the 2016 Middle Tottori Earthquake and the large-scale fire that devastated
Itoigawa City, Niigata Prefecture, including the free provision of battery chargers and partial waiver of handset repair fees.
Other measures we have taken to step up our disaster preparedness include the upgrade of our large-zone base stations by adding
LTE-compatibility
and conversion of existing base stations covering coastal and mountainous areas into medium-zone base stations to secure communications in these areas. These preparations taken in advance
will allow customers to use mobile phones free of concerns in the event of a disaster. We have also added foreign language and illustration-based guidance functions to our Area Mail emergency alert service in a preparatory effort to
provide our diverse customer base with greater peace of mind when a disaster does occur.
|
🌑
|
For the Recovery of Disaster-Stricken Areas in Tohoku Japan
|
We donated a total
of approximately ¥72.60 million to municipalities in the disaster-stricken areas (12 municipalities in Iwate, Miyagi and Fukushima Prefectures, and 3 intermediary organizations). Donations were made by approximately 9,900 employees who
participated in the Companys recovery support program along with contributions from the Company itself.
In addition,
at the oyster and seaweed farms of Higashi-Matsushima City, Miyagi Prefecture damaged by the 2011 Great East Japan Earthquake, we promoted fishery +d initiatives by installing
ICT-enabled
buoys
with the aim of improving the productivity of fishermen and realizing high-quality seafood production. In Fukushima Prefecture, we provided a tablet-based information distribution and community support system to help sustain the
community of residents living in temporary housing units. Further, to support the continued use of this system by the senior population, we also hosted community gatherings and other regular events using tablet devices.
22
|
🌑
|
Continued Efforts in Smartphone and Mobile Phone Safety Class and DOCOMO Hearty Lecture
|
DOCOMOs Smartphone and Mobile Phone Safety Classes enlighten participants on the rules and manners of using
smartphones and mobile phones, as well as to how to respond to troubles that may arise with their use. In the year ended March 31, 2017, we held a total of approximately 7,900 sessions with a cumulative participation of approximately
1.26 million people. In April 2016, we launched a new initiative convening the class in conjunction with a crime prevention seminar hosted by the Hiroshima Prefectural Police.
We also held 114 sessions of our DOCOMO Hearty Lecture for people with disabilities, introducing convenient
features and usage tips for smartphones and other mobile devices. The lectures had a participation of a total of 1,200 people.
|
🌑
|
Mobile Communication Fund Activities
|
The Mobile Communication Fund (MCF) is a
non-profit
organization established by DOCOMO with the aim to support research activities. In the year ended March 31, 2017, the Fund continued its sponsorship of the DOCOMO Mobile Science Award,
given to outstanding research and dissertations relating to mobile communications technologies. The MCF presented an Award of Excellence (with ¥6.00 million in prize money) in each of the following divisions: Advanced Technology, Basic
Science and Social Science Divisions. The Fund also provided scholarships totaling ¥56.16 million to 39 privately financed international students from Asia and provided subsidies totaling ¥35.00 million to 68 different civic
activities undertaken for the health and development of children and relief for the 2016 Kumamoto Earthquake victims.
23
(7) Activities for Work Style Reform
In order to continue to deliver new values to society, work styles that foster self-discipline and a challenging
mindset in each of our employees are necessary. Through diversity management, broader work style options and health and productivity management, we are promoting work style reforms of our employees.
DOCOMO recognizes and embraces individual differences in
race, ethnicity, nationality, gender (including gender identity and sexual orientation), restriction of work hours, disabilities, vocational skills and values. We are also pushing forward on endeavors to create a corporate culture that not only
accepts, but also allows each and every employee to exert their full potential and contribute to the Companys business.
|
🌑
|
Broader Work Style Options
|
We have implemented a number of new work style
options for enhanced productivity. These options include the introduction of a slide work system (adjusting the start and end times of the workday for employees raising children or providing nursing care), expanding options for working
at home (permitted locations, eligible employees and number of days per month for working outside the office), and increasing the number of business units that are allowed to adopt flexible work hours.
|
🌑
|
Health and Productivity Management
|
We are promoting initiatives aimed at
maintaining the physical and mental health and enhancing the vitality and productivity of employees. Examples include an intra-company step-count competition, publishing a Health White Paper, and performing stress checks to introduce
work place improvement measures.
24
(8) Consolidated Financial Results and Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23rd Fiscal Year
(FY 2013)
|
|
|
24th Fiscal Year
(FY 2014)
|
|
|
25th Fiscal Year
(FY 2015)
|
|
|
26th Fiscal Year
(FY 2016)
|
|
Operating revenues
(millions of yen)
|
|
|
4,461,203
|
|
|
|
4,383,397
|
|
|
|
4,527,084
|
|
|
|
4,584,552
|
|
Operating income
(millions of yen)
|
|
|
819,199
|
|
|
|
639,071
|
|
|
|
783,024
|
|
|
|
944,738
|
|
Income before income taxes
and equity in net
income(losses) of
affiliates
(millions of yen)
|
|
|
833,049
|
|
|
|
643,883
|
|
|
|
778,021
|
|
|
|
949,563
|
|
Net income attributable to
NTT DOCOMO, INC.
(millions of yen)
|
|
|
464,729
|
|
|
|
410,093
|
|
|
|
548,378
|
|
|
|
652,538
|
|
Earnings per share attributable
to NTT DOCOMO, INC.
(yen)
|
|
|
112.07
|
|
|
|
101.55
|
|
|
|
141.30
|
|
|
|
175.12
|
|
Total assets (millions of yen)
|
|
|
7,508,030
|
|
|
|
7,146,340
|
|
|
|
7,214,114
|
|
|
|
7,453,074
|
|
Total NTT DOCOMO, INC.
shareholders equity
(millions of yen)
|
|
|
5,643,366
|
|
|
|
5,380,072
|
|
|
|
5,302,248
|
|
|
|
5,530,629
|
|
|
|
|
Note:
|
|
We conducted a 1:100 stock split with an effective date of October 1, 2013. Earnings per share attributable to NTT DOCOMO, INC. for each fiscal year are calculated based on the number of shares after the stock
split.
|
(9) Issues to be addressed by the Group
The Group formulated its Medium-Term Strategy 2020 Declaration beyond and announced it at the FY2016 Analyst Meeting.
|
|
|
Medium-Term Strategy 2020 Declaration
beyond
|
|
|
In order to respond to our customers needs on an ongoing basis, by further evolving our relationships
with various external partners through open collaboration, we will continue to create new added value by moving forward with our +d initiatives.
Specifically, we, together with our partners, will roll out initiatives in order to
co-create
new
added value, making available to our partners our own business assets, such as our payment platform and point program. Through these endeavors, we will aim to deliver more benefits, more fun and more convenience to our customers in
tandem with our partners.
In addition to creating value for our customers, we will also strive to offer new value to our various
partners. Particularly, in the areas of IoT, Regional Revitalization, 2020, and Solution of Social Issues, we will move forward with the
co-creation
of
social values, creating new services and businesses in collaboration with our partners and utilizing the assets of both parties, with the goal of capturing revenue opportunities in new business fields that transcend the confines of industries
or business formats.
25
<Declaration 1: Market Leader>
We will aspire to become a market leader in delivering benefits and convenience through further convergence and evolution of
services, billing plans and point programs.
<Declaration 2: Style Innovation>
Taking advantage of the distinctive properties of 5G, we will devise enjoyable and exciting new services that bring innovation
to customers usage style.
<Declaration 3:
Peace-of-Mind
and
Comfort Support>
Toward the goal of realizing services that ensure the peace of mind and satisfaction of customers, we
will continue to evolve our customer touchpoints through the adoption of AI.
<Declaration 4: Industry Creation>
Leveraging the 5G network that enables high-speed, large-capacity and
low-latency
transmission and simultaneous connections with massive number of devices, we will strive to broaden the business opportunities of our partners and drive advancements across all industries in Japan.
<Declaration 5: Solution
Co-creation>
Aiming to bring about growth and social abundance to Japan, we will further accelerate our +d initiatives to solve
social issues.
<Declaration 6: Partner Business Expansion>
By further expanding and evolving the business platforms built upon DOCOMOs assets, we will support our partners
businesses and promote measures to grow the flow of transactions.
|
|
|
FY2017 Priority Initiatives
|
|
|
We position FY2017 as the year to tackle evolution, taking the first steps towards the delivery of
our Medium-Term Strategy 2020 Declaration beyond. We will do so by moving forward with the creation & evolution of services, business evolution with +d and reinforcement & evolution of all foundations, the
following are the details:
|
(1)
|
Creation & Evolution of Services
|
We will work to realize services
which offer exciting new viewing experiences, continue with returns to customers that cater to different stages in life and further brush up our customer touchpoints.
|
(2)
|
Business Evolution with +d initiatives
|
In the smart life business,
corporate sales and marketing business and other businesses, we will accelerate and expand our existing +d initiatives, and also create new businesses with our partners based on trials utilizing 5G.
|
(3)
|
Reinforcement & Evolution of All Foundations
|
We will strengthen our
technical assets that are required to drive evolution in the age of 5G/IoT while also solidifying our financial position. Concurrently, we will focus on work style reforms for our employees, who sustain our business operations.
In our Medium-Term Strategy 2020 Declaration beyond, we will aim to continue providing customer returns through ongoing cost
efficiency improvement, while increasing our operating free cash flow and shareholder returns by the convergence & evolution of a wide variety of added value and advancement of broadband services such as 5G and docomo Hikari.
26
<<FY2017 Target>>
|
|
|
|
|
Item
|
|
FY2017 Target
|
|
<Reference>
Toward 2020
|
Operating free cash flow
*
|
|
¥910.0 billion
|
|
Cash generation capability exceeding previous fiscal year continuously by realizing efficient investment activities in 5G and EBITDA growth
|
Shareholder returns
|
|
Annual Dividend ¥100
|
|
Continuous increase in dividends and expeditious share repurchase
|
* Operating free cash flow = EBITDA - Capital Expenditures
(10) Principal Offices (As of March 31, 2017)
(a)
Headquarters:
11-1,
Nagata-cho,
2-chome,
Chiyoda-ku, Tokyo, Japan
(b)
Regional Offices:
|
|
|
|
|
Hokkaido Regional Office
|
|
:
|
|
Chuo-ku, Sapporo, Hokkaido Prefecture
|
Tohoku Regional Office
|
|
:
|
|
Aoba-ku, Sendai, Miyagi Prefecture
|
Tokai Regional Office
|
|
:
|
|
Higashi-ku, Nagoya, Aichi Prefecture
|
Hokuriku Regional Office
|
|
:
|
|
Kanazawa, Ishikawa Prefecture
|
Kansai Regional Office
|
|
:
|
|
Kita-ku, Osaka, Osaka Prefecture
|
Chugoku Regional Office
|
|
:
|
|
Naka-ku, Hiroshima, Hiroshima Prefecture
|
Shikoku Regional Office
|
|
:
|
|
Takamatsu, Kagawa Prefecture
|
Kyushu Regional Office
|
|
:
|
|
Chuo-ku, Fukuoka, Fukuoka Prefecture
|
(11) Employees (As of March 31, 2017)
|
|
|
|
|
Number of Employees
(change from March 31, 2016)
|
|
Average Age
|
|
Average Length of Employment
|
26,734 (increase of 605)
|
|
41.0
|
|
15.2 years
|
Notes:
1.
|
The number of employees includes 278 employees seconded from companies other than the Company or its subsidiaries, but does not include 157 employees seconded to companies other than the Company or its subsidiaries.
|
2.
|
In calculating the average age of employees, employees at overseas subsidiaries are not included.
|
3.
|
In calculating the average length of service for employees transferred from NTT, other companies in the NTT Group, the former NTT Central Personal Communications Network, Inc., or the eight regional companies in the
Personal Communications Network, years of employment at their respective prior employers are included in the calculation. Employees seconded from companies other than the Company or its consolidated subsidiaries and employees at overseas
subsidiaries are not included in the calculation.
|
(12) Status of Parent Company and Principal Subsidiaries
(a) Relationship with Parent Company
NTT, our parent company, currently owns 2,469,084,400 shares of our company (66.65% of all shares
*
) as of March 31, 2017. The Company conducts business mainly in the mobile communication field under its own managerial responsibilities within the NTT Group.
* The percentage of shares held is calculated excluding treasury shares.
27
(b) Transactions with Parent Company
The Company and NTT have concluded agreements on the content of services and benefits provided by NTT to the Company, and compensation for the
same, with respect to basic research and development and group management conducted by NTT. Including such agreements, any material contracts concluded between the Company and NTT are subject to legal review by the Legal Department and auditing by
the audit & supervisory board members. In addition particularly important agreements must be approved at meeting of the Board of Directors at which both independent outside directors and independent outside audit & supervisory
board members are present.
(c) Principal Subsidiaries
There are no subsidiaries that are considered to be principal subsidiaries as of March 31, 2017.
There were 117 subsidiaries and 23 affiliates as of March 31, 2017.
(d) Material contracts for management of the company
We have entered into a basic agreement for billing and collection activities for telecommunications services charges, as well as a receivables
assignment agreement pursuant that agreement, with NTT Finance Corporation (NTT Finance). Under these agreements we have assigned the receivables associated with our telecommunications services to NTT Finance.
(13) Principal Creditors
There were no
principal creditors as of March 31, 2017
(14) Status of Absorption Mergers
While the Group operated, through mmbi, Inc. (mmbi), a multimedia broadcasting business for mobile devices and operated, through
Japan Mobilecasting, Inc. (Japan Mobilecasting), a business providing a broadcasting station for multimedia broadcasting for mobile devices, each such business was concluded on June 30, 2016.
In conjunction with this, as of July 1, 2016, mmbi (one of our consolidated subsidiaries) absorbed its own subsidiary Japan
Mobilecasting, and the Company then absorbed mmbi as of the same date to further streamline group management and speed up decision making to allow efficient liquidation of mmbi and Japan Mobilecasting once the businesses closed.
(15) Other Principal Materials about Present Situation of the Company
The Company exercised to Tata Sons Limited (Tata Sons) on July 2014 its right (option) to request that a suitable buyer be found to purchase
its Tata Teleservices Limited (TTSL) shares for 50% of the acquired price, or a fair market value, whichever is higher, and submitted our request for the London Court of International Arbitration (LCIA) on January 2015.
In June 2016, the award from LCIA orders that Tata Sons pay damages to the Company in the amount of approximately US$1,172 million
(approximately ¥130.0 billion
*
) for Tata Sons breach of the shareholders agreement, upon the Companys tender of its entire stake in TTSL to Tata Sons or its designee.
In July 2016, the Company made a request to Delhi High Court to accept the LCIA award in India, and on February 2017, the Company and Tata
Sons jointly applied to the Court, requesting that it accept their agreed terms of settlement, subject to such further orders as the court sees fit. On April, 2017, the Court delivered a court decision approving the joint application.
Summary of the Court Decision
|
1.
|
Recognizing the enforceability of the LCIA Award in India, the court decision orders Tata Sons to remit to DOCOMO the approximately US$1,180 million (approximately ¥130.0 billion
*
) that Tata Sons has deposited with the Court.
|
28
|
2.
|
The court decision orders DOCOMO to assist in the transfer of its shares in TTSL, which have already been tendered as per the LCIA Award, to Tata Sons upon receipt of the US$1,180 million.
|
The remittance will be made after the necessary procedures, including a notice filing with the Competition Commission of India for the share
transfer of TTSL, are completed.
|
*
|
US$1 = ¥111.29 as of April 30, 2017
|
29
2. Company Shares
(as of March 31, 2017)
(1) Total number of authorized shares: 17,460,000,000 shares
(2) Total number of issued shares: 3,899,563,000 shares
*
|
*
|
The total number of issued shares decreased
year-on-year
by 58,980,000 due to the cancellation of treasury stock on
March 31, 2017.
|
(3) Number of shareholders: 252,164
(4) Principal Shareholders
|
|
|
|
|
|
|
|
|
|
|
Holdings in the Company
|
|
Shareholders
|
|
Number of Shares
Held
|
|
|
Shareholding Ratio
(%)
|
|
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
|
|
|
2,469,084,400
|
|
|
|
66.65
|
|
THE MASTER TRUST BANK OF JAPAN, LTD. (TRUST ACCOUNT)
|
|
|
72,187,700
|
|
|
|
1.95
|
|
JAPAN TRUSTEE SERVICES BANK, LTD. (TRUST ACCOUNT)
|
|
|
65,400,700
|
|
|
|
1.77
|
|
BARCLAYS CAPITAL INC.
|
|
|
40,000,000
|
|
|
|
1.08
|
|
STATE STREET BANK AND TRUST COMPANY
|
|
|
33,113,565
|
|
|
|
0.89
|
|
JAPAN TRUSTEE SERVICES BANK, LTD. (TRUST ACCOUNT 5)
|
|
|
27,095,600
|
|
|
|
0.73
|
|
STATE STREET BANK WEST CLIENT TREATY 505234
|
|
|
22,470,637
|
|
|
|
0.61
|
|
THE BANK OF NEW YORK MELLON AS DEPOSITARY BANK FOR DEPOSITARY RECEIPT HOLDERS
|
|
|
21,129,496
|
|
|
|
0.57
|
|
JAPAN TRUSTEE SERVICES BANK, LTD. (TRUST ACCOUNT 9)
|
|
|
21,098,200
|
|
|
|
0.57
|
|
JAPAN TRUSTEE SERVICES BANK, LTD. (TRUST ACCOUNT 1)
|
|
|
20,146,000
|
|
|
|
0.54
|
|
Notes:
1.
|
The Companys holding of treasury stock (194,977,467 shares) is not included in the above.
|
2.
|
The Shareholding Ratio calculation excludes treasury stock.
|
(5) Other Principal Issues on the Company Shares
The Company acquired 56,031,000 common shares for an acquisition price of 149.6 billion yen during this period based on a resolution
of the Board of Directors in order to strengthen shareholder returns and improve capital efficiency.
Furthermore, we cancelled 58,980,000
treasury stocks (approximately 1.49% of the total number of issued shares before retirement) on March 31, 2017 based on a resolution of the Board of Directors.
30
3. Directors, Corporate Officers and Audit & Supervisory Board Members
(1) Directors and Audit & Supervisory Board Members (as of March 31, 2017)
|
|
|
|
|
Position
|
|
Name
|
|
Primary Responsibilities and
Affiliations
|
President and CEO
Member of the Board of Directors
|
|
Kazuhiro
Yoshizawa
|
|
|
|
|
|
Senior Executive Vice President
Member of the Board of Directors
|
|
Hiroyasu
Asami
|
|
Responsible for Technology, Devices, Network, Information Strategy and Preparation for 2020
*
|
|
|
|
Senior Executive Vice President
Member of the Board of Directors
|
|
Toshiki
Nakayama
|
|
Responsible for Global business and Corporate
|
|
|
|
Senior Executive Vice President
Member of the Board of Directors
|
|
Akira
Terasaki
|
|
Responsible for Corporate business, Improvement of business operations and CSR
|
|
|
|
Executive Vice President
Member of the Board of Directors
|
|
Seizo
Onoe
|
|
Executive General Manager of R&D Innovation Division
|
|
|
|
Executive Vice President
Member of the Board of Directors
|
|
Hirotaka
Sato
|
|
General Manager of Accounts and Finance Department
Responsible for Finance and Business Alliance
|
|
|
|
Executive Vice President
Member of the Board of Directors
|
|
Kiyohiro
Omatsuzawa
|
|
General Manager of Corporate Strategy & Planning Department
Responsible for Broadband business
|
|
|
|
Executive Vice President
Member of the Board of Directors
|
|
Hiroshi
Tsujigami
|
|
Executive General Manager of Sales and Marketing Division
|
|
|
|
Executive Vice President
Member of the Board of Directors
|
|
Kouji
Furukawa
|
|
Executive General Manager of Corporate Sales and Marketing Division and General Manager of TOHOKU Reconstruction Support Office
|
|
|
|
Executive Vice President
Member of the Board of Directors
|
|
Kyoji
Murakami
|
|
Executive General Manager of Smart-life Business Division
|
|
|
|
Senior Vice President
Member of the Board of Directors
|
|
Seiji
Maruyama
|
|
General Manager of Human Resources Management Department
|
|
|
|
Member of the Board of Directors
|
|
Kaoru
Kato
|
|
Corporate Advisor
|
|
|
|
Outside Member of the Board of Directors
|
|
Teruyasu
Murakami
|
|
Director of Research Institute for Industrial Strategy
|
|
|
|
Outside Member of the Board of Directors
|
|
Noriko
Endo
|
|
Visiting Researcher at Policy Alternatives
Research Institute, University of Tokyo
Project Professor,
Graduate School of Media
and Governance, Keio University
Adjunct Researcher, Environmental
Research Institute, Waseda
University
|
|
|
|
Member of the Board of Directors
|
|
Shinichiro
Ueno
|
|
Vice President of R&D Planning
Research and
Development Planning Department of NTT
|
|
|
|
Full-time Audit & Supervisory Board Member
|
|
Tooru
Kobayashi
|
|
|
|
|
|
Full-time Outside Audit & Supervisory Board Member
|
|
Naoto
Shiotsuka
|
|
|
|
|
|
Full-time Outside Audit & Supervisory Board Member
|
|
Toshimune
Okihara
|
|
|
|
|
|
Full-time Outside Audit & Supervisory Board Member
|
|
Yutaka
Kawataki
|
|
|
|
|
|
Outside Audit & Supervisory Board Member
|
|
Eiko
Tsujiyama
|
|
Professor, Faculty of Commerce, Waseda University
Outside Director of ORIX Corporation
Outside Corporate Auditor of
Lawson, Inc.
Outside Audit & Supervisory Board Member of Shiseido Company, Limited
|
*
|
2020 refers to the anticipated increase in tourism and general economic activity, between now and 2020 and the opportunity to develop various new products and services to capture this anticipated increase in
demand.
|
31
Notes:
|
1.
|
Directors and audit & supervisory board members who resigned or retired during the fiscal year ended March 31, 2017 are as follows:
|
|
|
|
|
|
|
|
Name
|
|
Retirement date
|
|
Reason
|
|
Position/responsibility at time of
retirement
|
Yoshikiyo Sakai
|
|
June 16, 2016
|
|
Term expired
|
|
Senior Executive Vice President, Member of the Board of Directors, Executive General Manager of Sales and Marketing Division, Responsible for Global business and Corporate
|
|
|
|
|
Kazuhiro Takagi
|
|
June 16, 2016
|
|
Term expired
|
|
Executive Vice President, Member of the Board of Directors, Executive General Manager of Corporate Sales and Marketing Division and General Manager of TOHOKU Reconstruction Support Office
|
|
|
|
|
Hajime Kii
|
|
June 16, 2016
|
|
Term expired
|
|
Executive Vice President, Member of the Board of Directors, General Manager of Human Resources Management Department
|
|
|
|
|
Makoto Tani
|
|
June 16, 2016
|
|
Term expired
|
|
Senior Vice President, Member of the Board of Directors, General Manager of General Affairs Department and General Manager of Improvement Action Office
|
|
|
|
|
Takashi Nakamura
|
|
June 16, 2016
|
|
Term expired
|
|
Member of the Board of Directors
|
|
2.
|
Directors and audit & supervisory board members elected at the 25
th
Annual General Meeting of Shareholders held on June 16, 2016 are as follows:
|
|
|
|
|
|
|
|
Name
|
|
Inauguration
Date
|
|
Position of Inauguration
|
|
Responsibility of Inauguration
|
Hiroshi
Tsujigami
|
|
June 24, 2016
|
|
Executive Vice President, Member of the Board of Directors
|
|
Executive General Manager of Sales and Marketing Division
|
|
|
|
|
Kouji
Furukawa
|
|
June 16, 2016
|
|
Executive Vice President, Member of the Board of Directors
|
|
Executive General Manager of Corporate Sales and Marketing Division and General Manager of TOHOKU Reconstruction Support Office
|
|
|
|
|
Kyoji
Murakami
|
|
June 16, 2016
|
|
Executive Vice President, Member of the Board of Directors
|
|
Executive General Manager of Smart-life Business Division
|
|
|
|
|
Seiji
Maruyama
|
|
June 16, 2016
|
|
Senior Vice President, Member of the Board of Directors
|
|
General Manager of Human Resources Management Department
|
|
|
|
|
Noriko
Endo
|
|
June 16, 2016
|
|
Member of the Board of Directors
|
|
|
|
|
|
|
Shinichiro
Ueno
|
|
June 16, 2016
|
|
Member of the Board of Directors
|
|
|
32
|
3.
|
Changes in responsibilities of directors during the fiscal year ended March 31, 2017 are as follows:
|
|
|
|
|
|
|
|
Name
|
|
Effective date
|
|
Current Positions and Responsibilities
|
|
Previous Positions and
Responsibilities
|
Kazuhiro
Yoshizawa
|
|
June 16, 2016
|
|
President and CEO, Executive General Manager of Sales and Marketing Division, Member of the Board of Directors
|
|
Senior Executive Vice President, Responsible for Technology, Devices and Information Strategy, Member of the Board of Directors
|
|
|
June 24, 2016
|
|
President and CEO, Member of the Board of Directors
|
|
President and CEO, Executive General Manager of Sales and Marketing
Division, Member of the Board of Directors
|
|
|
|
|
Hiroyasu
Asami
|
|
June 16, 2016
|
|
Senior Executive Vice President, Responsible for Technology, Devices, Network, Information Strategy and Preparation for 2020, Member of the Board of Directors
|
|
Executive Vice President, General Manager of Corporate Strategy & Planning Department,
Responsible for Broadband business, Member of the Board of Directors
|
|
|
|
|
Toshiki
Nakayama
|
|
June 16, 2016
|
|
Senior Executive Vice President,
Responsible for Global business and Corporate, Member of the Board of Directors
|
|
Executive Vice President, Executive General Manager of Smart-life Business Division, Member of the Board of Directors
|
|
|
|
|
Kiyohiro
Omatsuzawa
|
|
June 16, 2016
|
|
Executive Vice President, General Manager of Corporate Strategy & Planning Department,
Responsible for Broadband business, Member of the Board of Directors
|
|
Executive Vice President, Responsible for Network, and Preparation for 2020, Member of the Board of Directors
|
|
|
|
|
Kaoru
Kato
|
|
June 16, 2016
|
|
Corporate Advisor, Member of the Board of Directors
|
|
President and CEO, Member of the Board of Directors
|
|
4.
|
Board members Teruyasu Murakami and Noriko Endo are outside directors as provided in Article 2, Item15 of the Companies Act.
|
|
5.
|
Full-time audit & supervisory board members Naoto Shiotsuka, Toshimune Okihara, Yutaka Kawataki and audit & supervisory board member Eiko Tsujiyama are outside audit & supervisory board
members as provided in Article 2, Item16 of the Companies Act.
|
|
6.
|
Outside audit & supervisory board member Naoto Shiotsuka has experience in corporate management and extensive knowledge pertaining to finance and accounting through his career in the Finance Department of NTT
DATA Corporation.
|
|
7.
|
Outside audit & supervisory board member Eiko Tsujiyama has considerable knowledge in finance and accounting gained through her years of experience as a university professor and outside director of private
companies, along with being a Certified Public Accountant and as an outside director on corporate boards.
|
|
8.
|
Outside audit & supervisory board member Eiko Tsujiyama also serves as an outside audit & supervisory board member with Lawson, Inc., a company with which we have business alliance. In addition, we
have no special relationship with Mitsubishi Corporation and other firms where Ms. Tsujiyama was or is concurrently serving, with Research Institute for Industrial Strategy where an outside member of the board of director Teruyasu Murakami is
acting as director and with universities where an outside member of the board of director Noriko Endo is acting as researcher and professor.
|
|
9.
|
We have designated each of outside director Teruyasu Murakami and Noriko Endo, and outside audit & supervisory board members Yutaka Kawataki and Eiko Tsujiyama as an independent director/auditor, respectively,
pursuant to the Securities Listing Regulations of Tokyo Stock Exchange, and we have notified the Tokyo Stock Exchange of such designation.
|
|
10.
|
Outside audit & supervisory board member Eiko Tsujiyama retired from outside corporate auditor of Mitsubishi Corporation as of June, 2016.
|
33
The Company has concluded agreements with directors Teruyasu Murakami, Noriko Endo and Shinichiro Ueno and audit & supervisory board
members to indemnify them for personal liability as provided in Article 423, Paragraph 1 of the Companies Act in accordance with Article 427, Paragraph 1 of the same act. The compensation of liability is the minimum amount in accordance with Article
425, Paragraph 1 of the Companies Act.
(2) Policies concerning, and total compensation of, directors and audit & supervisory board members
(a) Policies
Compensation for directors is
decided based on the following policies from the perspective of reflecting medium- to long-term business results of the Company.
|
(i)
|
Compensation for directors consists of a monthly salary and bonuses. The Company determines monthly salaries based on the scope of roles and responsibilities of each director, and bonuses by taking into account the
Companys business results for the current term.
|
|
(ii)
|
From the perspective of reflecting medium- to long-term business results, directors with executive authority over operations make monthly contributions of at least a certain amount for the purchase of the Companys
shares through the Director Shareholding Association and all purchased shares are held by the directors during their terms in office.
|
|
(iii)
|
In order to ensure a high level of independence, the Company pays only monthly salaries as compensation for independent outside directors with no links to business results.
|
Compensation for audit & supervisory board members is determined through consultation with the members, and in order to ensure a high
level of independence, only monthly salaries are paid with no links to business results.
34
(b) Total Compensation for directors and audit & supervisory board members for the Fiscal Year Ended
March 31, 2017
|
|
|
|
|
Position
|
|
Number of Persons
|
|
Total Compensation (Millions of yen)
|
Director
|
|
18
|
|
526
|
Audit & Supervisory Board Member
|
|
5
|
|
131
|
|
|
|
|
|
Total
|
|
23
|
|
658
|
|
|
|
|
|
Notes:
|
1.
|
Upper limits on compensation for directors and audit & supervisory board members were set at ¥600 million annually for directors and ¥150 million annually for audit & supervisory
board members at the 15th ordinary general meeting of shareholders held on June 20, 2006.
|
|
2.
|
The above includes four directors who retired at the conclusion of the 25th ordinary general meeting of shareholders held on June 16, 2016.
|
|
3.
|
Total compensation for directors includes ¥99 million in bonuses paid in the fiscal year ended March 31, 2017.
|
(3) Outside Directors and Outside Audit & Supervisory Board Members
(a) Principal activities of outside directors and outside audit & supervisory board members
|
|
|
|
|
|
|
|
|
Position
|
|
Name
|
|
Attendance Rate
of Board of
Directors
Meetings
(Number of
Meetings
Attended)
|
|
Attendance Rate
of
Audit &
Supervisory
Board Meetings
(Number of
Meetings
Attended)
|
|
Principal Comments Activities
|
Outside
Members of the Board
of Directors
|
|
Teruyasu
Murakami
|
|
100%
(13/13)
|
|
|
|
He used his extensive experience in corporate management and information industries to make appropriate comments from a perspective independent from the Companys business operations.
|
|
|
|
|
|
|
|
Noriko
Endo
|
|
100%
(10/10)
|
|
|
|
She used her extensive experience in her news gathering activities as an editor of an economic magazine and research on public policies to make appropriate comments from a perspective independent from the Companys business
operations as well as customer and female perspectives.
|
35
|
|
|
|
|
|
|
|
|
Position
|
|
Name
|
|
Attendance Rate
of Board of
Directors
Meetings
(Number of
Meetings
Attended)
|
|
Attendance Rate
of
Audit &
Supervisory
Board Meetings
(Number of
Meetings
Attended)
|
|
Principal Comments Activities
|
Outside Audit & Supervisory Board Members
|
|
Naoto
Shiotsuka
|
|
100%
(13/13)
|
|
100%
(14/14)
|
|
He made appropriate comments from his extensive knowledge pertaining to finance and accounting in addition to his experience in corporate management and financial department of a company.
|
|
|
|
|
|
|
|
Toshimune
Okihara
|
|
100%
(13/13)
|
|
100%
(14/14)
|
|
He made appropriate comments from his experience and extensive knowledge due to the career and engagement in businesses pertaining to telecommunications and corporate management.
|
|
|
|
|
|
|
|
Yutaka
Kawataki
|
|
100%
(13/13)
|
|
100%
(14/14)
|
|
He made appropriate comments from his expert perspective gained through his work experience in the Board of Audit of Japan.
|
|
|
|
|
|
|
|
Eiko
Tsujiyama
|
|
92.3%
(12/13)
|
|
100%
(14/14)
|
|
She made appropriate comments from her expert perspective in finance and accounting as a Certified Public Accountant and gained through her years of experience as a university professor and as an outside director on corporate
boards.
|
|
|
|
Note:
|
|
The principal activities of outside director Noriko Endo are shown for after her inauguration in June 2016.
|
(b) Total compensation to outside directors in the fiscal year ended March 31, 2017
|
|
|
|
|
Number of persons
|
|
Total compensation (Millions of yen)
|
|
|
6
|
|
121
|
|
|
36
4. Independent Auditor
(1) Name of independent auditor
KPMG AZSA LLC
(2) Audit fees paid to the independent auditor in the fiscal year ended March 31, 2017
|
|
|
Details
|
|
Amount
(Millions of yen)
|
Audit fees for the independent auditor in the fiscal year ended March 31, 2017
|
|
700
|
|
|
Total monetary and other financial benefits payable by the Company and its subsidiaries
|
|
1,019
|
Notes:
1.
|
The audit contract between the Company and the independent auditor does not distinguish among audit fees paid for audits performed pursuant to the Companies Act, audit fees paid for audits performed pursuant to the
Financial Instruments and Exchange Act and audit fees paid for audits performed pursuant to the U.S. Securities Exchange Act, and since it is not practically possible to make such a distinction, the amounts indicated in the audit fees paid to the
independent auditor in the fiscal year ended March 31, 2017 above are totals.
|
2.
|
Consideration is paid to the independent auditor for services other than the services specified in Article 2, Paragraph 1 of the Certified Public Accountants Act
(non-audit
services). The
non-audit
services are advisory services and other service relating to international financial reporting standards.
|
(3) Grounds for consenting to audit fees paid to the independent auditor
The Audit & Supervisory Board consented to the audit fees paid to the independent auditor after considering the time required for the
audit and details such as the allocation of personnel under the independent auditors audit plan; the suitability of the state of execution of the audit by the independent auditor; and the basis for the calculation of the estimated fees.
(4) Policies concerning decisions to discharge or not reappoint independent auditors
In the event that the circumstances set forth in any of the items of Article 340, Paragraph 1 of the Companies Act apply to the independent
auditor, the independent auditor is to be discharged by a unanimous resolution of the Audit & Supervisory Board.
In addition, if
the Company determines that it would be difficult for the independent auditor to perform proper audits, the Audit & Supervisory Board may determine the content of a proposal to the general meeting of shareholders that the independent
auditor be discharged or not be reappointed.
37
5. The State of Corporate Governance
(1) Overview of corporate governance structure
In regard to our core telecommunications businesses, we recognize that mobile phones have come to play a vital role as social infrastructure in
line with market expansion for these products. Accordingly, we have adopted a corporate governance structure consisting of the Board of Directors, audit & supervisory board members and an Audit & Supervisory Board. This structure
reflects a desire for directors to play a key role in important business execution matters, from the standpoint of realizing consistent and stable business operations through the effective utilization of management resources. From the perspective of
ensuring sound and efficient management, this configuration also reflects the desire for a structure in which directors, serving concurrently as executive officers responsible for business execution, mutually supervise their respective actions,
while audit & supervisory board members perform audits of overall management. Similarly, we appoint outside directors and audit & supervisory board members, with a view to further enhancing monitoring and audit functions.
In addition, we have introduced the executive officer system (26 men and 1 woman currently serve as executive officers and 7 executive officers
concurrently hold the post of director) to clearly delineate the roles of business execution and monitoring, and to better reinforce business execution functions. This system enables speedier responsiveness to changes in the operating environment.
Through the initiatives mentioned above, we strive constantly to boost management speed in order to realize consistent and stable business operations, as well as develop a corporate governance structure capable of bolstering both auditing and
governance functions.
Our business execution and management supervision mechanisms are summarized in the figure below:
38
∎
|
The State of the Companys Corporate Governance
|
The Opinion of Independent
Outside Director, Teruyasu Murakami:
The Company introduced a system of independent outside directors in fiscal year ended
March 31, 2013, and since I assumed office as a director, I have been representing the interests of general shareholders in my work overseeing the execution of the Companys business activities. In light of the special nature of the
Companys corporate governance (due to the fact that the government holds a certain percentage of shares of its parent company NTT), as an independent outside director I have been concentrating on demonstrating fair competitiveness in the new
market environment and introducing a mindset (fundamental conceptual framework) from outside to foster a service-driven corporate culture.
I receive accurate information in advance and express my opinion from the viewpoint of an independent outside director at the Companys
meeting of the Board of Directors on all proposals considered important, with free and candid discussions.
In addition, the Company has
effectively constructed a support system that ensures good contact with independent outside directors is widely available and is not limited to the Board of Directors; this allows opinions and recommendations to be freely given. Apart from the
meeting of the Board of Directors, there are many opportunities for an independent outside director to participate proactively in the Company, including discussions held on management strategies and
medium-to-long
term corporate vision, executive training camps, various
in-house
events and sessions to exchange ideas with younger members of staff in
mid-grade
positions.
Moreover, the Company has been making constant efforts to enhance its corporate
governance, and we are committed to implementing all the principles in the Corporate Governance Code. As such, I judge that the opinion of the independent outside director is properly reflected in the management of the Company and that the
Companys corporate governance functions in an effective manner.
In short, the Company achieved a
so-called
V-shaped
recovery thanks to its rapid response to technological innovation and market changes, as well as its
on-going
development of service-driven businesses that emphasize the value
co-creation
with our customers and partners, and in the
medium-to-long
term it is also set to continue on a steady growth trajectory.
39
(2) Systems for ensuring the propriety of the Companys business activities and their operational status
A summary of the Board of Directors resolution concerning the development of a system to ensure the propriety of the Companys
business activities (internal control system) is set forth below, along with an overview of the systems operational status.
A.
|
Basic stance on fortifying internal control systems
|
(a)
|
In fortifying the internal control systems, the Company aims to achieve legal compliance, management of loss risk and appropriate and efficient business operations and consider various measures, including regulations,
organizational and structural improvement, formulation of action plans and the monitoring of activities.
|
(b)
|
An internal control committee will be formed as an entity overseeing efforts to have the internal control systems function more efficiently. The committee will aim to fortify internal control systems from the
cross-departmental perspective; upon assessing efficacy, necessary improvements will be carried out.
|
(c)
|
Appropriate efforts will be made with regard to ensuring the reliability of the internal control systems, which will be involved with the financial reporting based on the U.S. Sarbanes-Oxley Act and the Financial
Instruments and Exchange Act.
|
(d)
|
The Board of Directors will approve the basic policy on fortifying internal control systems (the Basic Policy), receive regular reports on the progress of the initiative to fortify internal control systems, and oversee
and monitor the internal control systems of the Company.
|
(e)
|
As chief executive officer, the president and representative director will oversee the efforts to build the internal control systems based on the Basic Policy approved by board members.
|
B.
|
Fortifying structure relating to internal control systems
|
(a)
|
System to ensure that the performance of duties by directors and employees conform with laws and regulations and the Companys Articles of Incorporation
|
We institute the NTT DOCOMO Group Code of Ethics and compliance-related regulations and create requisite systems
for ethical and legal compliance. In addition, when preparing financial statements, officers responsible for finance, audit & supervisory board members, and independent auditors hold preliminary discussions of significant accounting
policies, and for disclosure of company information including financial statements in a manner that conforms with securities-related laws and regulations, matters are decided at meetings of the Board of Directors after the necessary internal
procedures pursuant to
in-house
regulations have been completed. Also, internal audit staff conducts audits of the companys overall business activities to ensure conformity with laws and regulations and
in-house
regulations.
(b)
|
System for storage and maintenance of information relating to the performance of duties by directors
|
Information relating to the performance of duties by directors is recorded and stored in accordance with rules stipulating the
methods of storage and administration of documents and administrative information.
(c)
|
Regulations and other systems relating to the management of loss risks
|
Executive directors responsible for risk management periodically summarize information relating to risks in their organizations
in accordance with rules concerning risk management, and the internal control committee made up of directors, senior vice presidents, and others identifies risks as necessary for companywide risk management, and decide management policy for
identified risks to prevent risks from occurring and to take rapid countermeasures in the event that risks do occur.
40
(d)
|
System to ensure that the performance of duties by directors is conducted efficiently
|
The efficiency of the performance by directors of their duties is ensured by such means as decision-making rules based on
internal regulations and the specification of powers relating to their duties, the formulation of medium-term management policies and business plans by the Board of Directors, and the establishment of committees composed of directors, senior vice
presidents, and others.
(e)
|
System to ensure the propriety of the business activities of the corporate group consisting of the Company, its parent company, and its subsidiaries
|
|
i.
|
System for reporting matters concerning the execution of duties of directors, etc. of subsidiaries to the company
|
In accordance with the rules stipulating fundamental matters relating to the management of affiliated companies for the purpose
of the comprehensive development and improvement of performance of the Group, affiliated companies will consult with or report to the Company.
|
ii.
|
Regulations and other systems relating to the management of loss risks of subsidiaries
|
Intrinsic risks in the Group are managed in accordance with the rules concerning risk management, and risk management for Group
companies is conducted according to their scale and business type.
|
iii.
|
System to ensure that the performance of duties by directors, etc. of subsidiaries is conducted efficiently
|
Group companies establish decision-making rules and authority in duties according to their scale and business type, and consult
or report on principal issues relating to the business operations of the Group as a whole.
|
iv.
|
System to ensure that the performance of duties by directors, etc. and employees of subsidiaries conforms with laws and regulations and the Companys Articles of Incorporation
|
We have established the NTT DOCOMO Group Code of Ethics as a uniform code of ethics for the Group, and all Group
companies strive to comply with this code of ethics. Furthermore, subsidiaries officers are responsible for formulating and reporting the status of management systems of code of ethics, as well as for reporting to the Company when they
identify a problematic situation involving a management executive, and the Company provides the necessary guidance on the appropriate response.
|
v.
|
Other systems to ensure appropriate operations
|
With respect to unusual
transactions with the parent company, investigations are conducted by legal personnel and audits are conducted by audit & supervisory board members. Further, audits by internal audit personnel are directed to cover its subsidiaries, and
whenever necessary they obtain and assess the results of the internal audits of those companies.
(f)
|
System to ensure the effectiveness of audits by audit & supervisory board members
|
|
i.
|
Matters relevant to employees assistance to the duties of audit & supervisory board members if their assignment is requested
|
The Audit & Supervisory Board Members Office is established as an organization dedicated to assisting the
audit & supervisory board members with the performance of their duties, and specialist staff are assigned to it.
|
ii.
|
Matters relevant to the independence of the employees in (i.) above from directors
|
We provide the Audit & Supervisory Board with advance explanations concerning matters such as transfers and assessment
of personnel who belong to the Audit & Supervisory Board Members Office, and pay respectful attention to the boards opinions before acting on such matters.
41
|
iii.
|
Matters relevant to ensuring the effectiveness of instructions of audit & supervisory board members to the employees in (i) above
|
Employees who belong to the Audit & Supervisory Board Members Office exclusively follow the directions and
commands of audit & supervisory board members.
|
iv.
|
System for reporting to audit & supervisory board members by directors and employees
|
Directors, executive officers, and employees report promptly to the audit & supervisory board members and to the
Audit & Supervisory Board concerning matters prescribed by laws and regulations as well as requested matters necessary for the performance by the audit & supervisory board members of their duties.
|
v.
|
System for reporting to the Companys audit & supervisory board members by subsidiaries directors, audit & supervisory board members and other equivalent persons and employees, or persons
who have received reports from such persons
|
The matters to be reported in (iv) above shall include
material information reported by Group companies.
|
vi.
|
System to ensure that persons making reports in the above items (iv) and (v) are not treated disadvantageously due to making the report
|
Persons who make reports in the above items (iv) and (v) are not treated disadvantageously due to making the report.
|
vii.
|
Matters relevant to procedures policy on the expense or debts arising from the execution such an advance payment or reimbursement of expenses arising from the execution of duties by audit & supervisory board
members
|
Audit & supervisory board members may claim necessary expenses for the execution of their
duties, and the Company must make the necessary payments based on such claims.
|
viii.
|
Other systems for ensuring that auditing by audit & supervisory board members is conducted effectively
|
Representative directors and the Audit & Supervisory Board hold regular meetings and develop an auditing environment
necessary for enabling the audit & supervisory board members to perform their duties. In addition, representative directors endeavor to establish a system enabling audit & supervisory board members to hold regular and occasional
meetings with internal audit staff and independent auditors.
C.
|
Operational status of internal control systems
|
(a)
|
In order to ensure that the performance of duties by directors and employees conforms to laws and regulations and the Articles of Incorporation, meetings of the Compliance Promotion Committee are held to check decisions
on initiatives made by management systems for ethical and legal compliance as well as to check on the status of the implementation of such initiatives. Furthermore, periodic training, education and monitoring are carried out for management
executives and employees to foster awareness of ethical and legal compliance, and a compliance help desk has been established in an effort to prevent compliance violations.
|
(b)
|
In order to store and manage the information related to duties of directors, we established rules for storage and management of written documents and management information. Furthermore, refer to (3) Efforts
Related to Information Security for other details on the Companys efforts related to information security.
|
(c)
|
As rules and other systems related to the management of the risk of loss, the Risk Management Principles were established to contribute to the appropriate and smooth management of the operations of the Company and Group
companies, and in fiscal 2016, two meetings of the Internal Control Committee based on the rules were held to identify the risks requiring management across the entire Company and establish management policies on these risks. Furthermore, the
Internal Audit Department conducted audits on whether the management policies for each risk were being appropriately managed by each organization.
|
42
(d)
|
In order to ensure the efficient execution of duties of directors, we arrange our organization to realize our management strategy to ensure duties are executed efficiently.
|
(e)
|
In order to ensure the propriety of the business activities of the corporate group consisting of the Company, as well as its parent company and its subsidiaries, we receive the necessary consultation and reports from
Group companies, and we provide guidance on the establishment and operation of internal control systems to subsidiaries. Furthermore, the Internal Audit Department conducts internal audits of select Group companies.
|
(f)
|
In order to ensure that audit by audit & supervisory board members are conducted effectively, we make quarterly reports of financial condition of subsidiaries deemed to be important in terms of business to
audit & supervisory board members, as well as these being reported at the meetings attended by the audit & supervisory board members. Also the results of internal audits for the Company and Group companies are reported to
audit & supervisory board members on a monthly basis. Furthermore, the Internal Audit Department, the Accounts and Finance Department and the Accounting Auditor hold periodic
tri-party
meetings with
audit & supervisory board members to encourage coordination.
|
(3)
|
Efforts Related to Information Security
|
The Company recognizing that proper information management is an important management issue, therefore declares the Information Security
Policy is the Companys action policy for information security and will abide by the Information Security Policy and the separate Privacy Policy regarding our customers personal information in order to ensure that customers are able to
use the Companys services safely.
Information assets to which the Information Security Policy applies shall include information
obtained or learned in the course of the Companys business activities, as well as all information owned by the Company for business purposes.
The Company has designated each November as Information Security Month in its efforts to continuously educate and enlighten all
employees. This fiscal year, in an attempt to improve information security, we have specifically been working on training for the hypothetical receipt of targeted attack
e-mails
that have been
increasing and becoming more sophisticated in recent years.
Please refer to the Companys website for further details on the
Information Security Policy and the Privacy Policy:
https://www.nttdocomo.co.jp/english/utility/security/
Throughout this report, amounts prepared based on accounting principles generally accepted in Japan are rounded down to the nearest unit. Amounts prepared in
accordance with U.S. generally accepted accounting principles are rounded up or down to the nearest unit.
Names of companies, products, etc., contained
in this release are the trademarks or registered trademarks of their respective organizations.
iPhone, Apple Watch Series, Apple Pay are trademarks of
Apple Inc. The iPhone trademark is used under a license from AIPHONE CO., LTD
43
CONSOLIDATED BALANCE SHEET [U.S. GAAP]
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
March 31, 2017
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
¥
|
289,610
|
|
Short-term investments
|
|
|
301,070
|
|
Accounts receivable
|
|
|
239,137
|
|
Receivables held for sale
|
|
|
936,748
|
|
Credit card receivables
|
|
|
347,557
|
|
Other receivables
|
|
|
398,842
|
|
Allowance for doubtful accounts
|
|
|
(19,517
|
)
|
Inventories
|
|
|
153,388
|
|
Deferred tax assets
|
|
|
81,025
|
|
Prepaid expenses and other current assets
|
|
|
108,412
|
|
|
|
|
|
|
Total current assets
|
|
|
2,836,272
|
|
|
|
|
|
|
Property, plant and equipment:
|
|
|
|
|
Wireless telecommunications equipment
|
|
|
5,084,923
|
|
Buildings and structures
|
|
|
906,177
|
|
Tools, furniture and fixtures
|
|
|
441,513
|
|
Land
|
|
|
198,980
|
|
Construction in progress
|
|
|
204,413
|
|
Accumulated depreciation and amortization
|
|
|
(4,295,111
|
)
|
|
|
|
|
|
Total property, plant and equipment, net
|
|
|
2,540,895
|
|
|
|
|
|
|
Non-current
investments and other assets:
|
|
|
|
|
Investments in affiliates
|
|
|
373,758
|
|
Marketable securities and other investments
|
|
|
198,650
|
|
Intangible assets, net
|
|
|
608,776
|
|
Goodwill
|
|
|
230,971
|
|
Other assets
|
|
|
434,312
|
|
Deferred tax assets
|
|
|
229,440
|
|
|
|
|
|
|
Total
non-current
investments and other assets
|
|
|
2,075,907
|
|
|
|
|
|
|
Total assets
|
|
¥
|
7,453,074
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current portion of long-term debt
|
|
¥
|
60,217
|
|
Short-term borrowings
|
|
|
1,623
|
|
Accounts payable, trade
|
|
|
853,538
|
|
Accrued payroll
|
|
|
59,187
|
|
Accrued income taxes
|
|
|
105,997
|
|
Other current liabilities
|
|
|
194,494
|
|
|
|
|
|
|
Total current liabilities
|
|
|
1,275,056
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
Long-term debt (exclusive of current portion)
|
|
|
160,040
|
|
Accrued liabilities for point programs
|
|
|
94,639
|
|
Liability for employees retirement benefits
|
|
|
193,985
|
|
Other long-term liabilities
|
|
|
145,266
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
593,930
|
|
|
|
|
|
|
Total liabilities
|
|
|
1,868,986
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
22,942
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
NTT DOCOMO, INC. shareholders equity
|
|
|
|
|
Common stock
|
|
|
949,680
|
|
Additional
paid-in
capital
|
|
|
326,621
|
|
Retained earnings
|
|
|
4,656,139
|
|
Accumulated other comprehensive income (loss)
|
|
|
24,631
|
|
Treasury stock
|
|
|
(426,442
|
)
|
Total NTT DOCOMO, INC. shareholders equity
|
|
|
5,530,629
|
|
Noncontrolling interests
|
|
|
30,517
|
|
|
|
|
|
|
Total equity
|
|
|
5,561,146
|
|
|
|
|
|
|
Total liabilities and equity
|
|
¥
|
7,453,074
|
|
|
|
|
|
|
(Note) Amounts are rounded off to the nearest 1 million yen.
44
CONSOLIDATED STATEMENT OF INCOME [U.S.GAAP]
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
|
|
Year ended March 31, 2017
(April 1, 2016 - March 31, 2017)
|
|
Operating revenues:
|
|
|
|
|
Telecommunications services
|
|
¥
|
2,985,094
|
|
Equipment sales
|
|
|
719,161
|
|
Other operating revenues
|
|
|
880,297
|
|
|
|
|
|
|
Total operating revenues
|
|
|
4,584,552
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Cost of services (exclusive of items shown separately below)
|
|
|
1,335,457
|
|
Cost of equipment sold (exclusive of items shown separately below)
|
|
|
792,145
|
|
Depreciation and amortization
|
|
|
452,341
|
|
Impairment loss
|
|
|
12,205
|
|
Selling, general and administrative
|
|
|
1,047,666
|
|
|
|
|
|
|
Total operating expenses
|
|
|
3,639,814
|
|
|
|
|
|
|
Operating income
|
|
|
944,738
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest expense
|
|
|
(277
|
)
|
Interest income
|
|
|
608
|
|
Other, net
|
|
|
4,494
|
|
|
|
|
|
|
Total other income (expense)
|
|
|
4,825
|
|
|
|
|
|
|
Income before income taxes and equity in net income (losses) of affiliates
|
|
|
949,563
|
|
|
|
|
|
|
Income taxes:
|
|
|
|
|
Current
|
|
|
238,172
|
|
Deferred
|
|
|
49,507
|
|
|
|
|
|
|
Total income taxes
|
|
|
287,679
|
|
|
|
|
|
|
Income before equity in net income (losses) of affiliates
|
|
|
661,884
|
|
|
|
|
|
|
Equity in net income (losses) of affiliates (including impairment charges of investments in
affiliates)
|
|
|
(11,273
|
)
|
|
|
|
|
|
Net income
|
|
|
650,611
|
|
|
|
|
|
|
Less: Net (income) loss attributable to noncontrolling interests
|
|
|
1,927
|
|
|
|
|
|
|
Net income attributable to NTT DOCOMO, INC.
|
|
¥
|
652,538
|
|
|
|
|
|
|
(Note) Amounts are rounded off to the nearest 1 million yen.
45
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY [U.S.GAAP]
|
|
|
|
|
Year Ended March 31, 2017 (April 1, 2016 March 31, 2017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NTT DOCOMO, INC. shareholders equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
Additional
paid-in
capital
|
|
|
Retained
earnings
|
|
|
Accumulated
other
comprehensive
income (loss)
|
|
|
Treasury
stock
|
|
|
Total NTT
DOCOMO,
INC.
shareholders
equity
|
|
|
Non-
controlling
interests
|
|
|
Total
equity
|
|
Balance as of March 31, 2016
|
|
¥
|
949,680
|
|
|
¥
|
330,482
|
|
|
¥
|
4,413,030
|
|
|
¥
|
14,888
|
|
|
¥
|
(405,832
|
)
|
|
¥
|
5,302,248
|
|
|
¥
|
40,857
|
|
|
¥
|
5,343,105
|
|
Purchase of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(149,607
|
)
|
|
|
(149,607
|
)
|
|
|
|
|
|
|
(149,607
|
)
|
Retirement of treasury stock
|
|
|
|
|
|
|
|
|
|
|
(128,997
|
)
|
|
|
|
|
|
|
128,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared to NTT DOCOMO, INC. shareholders
|
|
|
|
|
|
|
|
|
|
|
(280,432
|
)
|
|
|
|
|
|
|
|
|
|
|
(280,432
|
)
|
|
|
|
|
|
|
(280,432
|
)
|
Cash distributions to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,500
|
)
|
|
|
(3,500
|
)
|
Acquisition of new subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
|
|
|
|
49
|
|
Changes in interest in subsidiaries
|
|
|
|
|
|
|
(3,861
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,861
|
)
|
|
|
(4,095
|
)
|
|
|
(7,956
|
)
|
Net income
|
|
|
|
|
|
|
|
|
|
|
652,538
|
|
|
|
|
|
|
|
|
|
|
|
652,538
|
|
|
|
(2,610
|
)
|
|
|
649,928
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,743
|
|
|
|
|
|
|
|
9,743
|
|
|
|
(184
|
)
|
|
|
9,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of March 31, 2017
|
|
¥
|
949,680
|
|
|
¥
|
326,621
|
|
|
¥
|
4,656,139
|
|
|
¥
|
24,631
|
|
|
¥
|
(426,442
|
)
|
|
¥
|
5,530,629
|
|
|
¥
|
30,517
|
|
|
¥
|
5,561,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Notes)
|
|
1. Amounts are rounded off to the nearest 1 million yen.
|
|
|
2. Changes in the redeemable noncontrolling interest are not included
in the table.
|
46
(Reference) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [U.S.GAAP]
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
Year ended March 31, 2017
(April 1, 2016
- March 31, 2017)
|
|
Net income
|
|
¥
|
650,611
|
|
Other comprehensive income (loss):
|
|
|
|
|
Unrealized holding gains (losses) on
available-for-sale
securities, net of applicable taxes
|
|
|
11,739
|
|
Unrealized gains (losses) on cash flow hedges, net of applicable taxes
|
|
|
85
|
|
Foreign currency translation adjustment, net of applicable taxes
|
|
|
(12,975
|
)
|
Pension liability adjustment, net of applicable taxes
|
|
|
10,709
|
|
|
|
|
|
|
Total other comprehensive income (loss)
|
|
|
9,558
|
|
|
|
|
|
|
Comprehensive income
|
|
|
660,169
|
|
|
|
|
|
|
Less: Comprehensive (income) loss attributable to noncontrolling interests
|
|
|
2,112
|
|
|
|
|
|
|
Comprehensive income attributable to NTT DOCOMO, INC.
|
|
¥
|
662,281
|
|
|
|
|
|
|
(Note) Amounts are rounded off to the nearest 1 million yen.
47
NON-CONSOLIDATED
BALANCE SHEET
(As of March 31, 2017)
(Millions of yen)
|
|
|
|
|
ASSETS
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Non-current
assets for telecommunications
businesses
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
Machinery and equipment
|
|
¥
|
1,055,016
|
|
Antenna facilities
|
|
|
539,758
|
|
Telecommunications line facilities
|
|
|
29,376
|
|
Pipe and hand holes
|
|
|
13,803
|
|
Building
|
|
|
294,385
|
|
Structures
|
|
|
71,678
|
|
Other machinery and equipment
|
|
|
2,669
|
|
Vehicles
|
|
|
593
|
|
Tools, furniture and fixtures
|
|
|
65,732
|
|
Land
|
|
|
196,266
|
|
Lease assets
|
|
|
471
|
|
Construction in progress
|
|
|
171,955
|
|
|
|
|
|
|
Total property, plant and equipment
|
|
|
2,441,707
|
|
|
|
|
|
|
Intangible assets
|
|
|
|
|
Rights to use utility facilities
|
|
|
11,590
|
|
Software
|
|
|
496,382
|
|
Patents
|
|
|
119
|
|
Leasehold rights
|
|
|
57,369
|
|
Lease assets
|
|
|
22
|
|
Other intangible assets
|
|
|
26,784
|
|
|
|
|
|
|
Total intangible assets
|
|
|
592,269
|
|
|
|
|
|
|
Total
non-current
assets for telecommunications
businesses
|
|
|
3,033,976
|
|
|
|
|
|
|
Investments and other assets
|
|
|
|
|
Investment securities
|
|
|
311,326
|
|
Shares of affiliated companies
|
|
|
325,668
|
|
Other investments in affiliated companies
|
|
|
6,831
|
|
Contributions in affiliated companies
|
|
|
5,267
|
|
Long-term loan receivable
|
|
|
17
|
|
Long-term loan receivable in affiliated companies
|
|
|
18,260
|
|
Long-term prepaid expenses
|
|
|
26,910
|
|
Long-term accounts receivable, other
|
|
|
215,337
|
|
Deferred tax assets
|
|
|
110,291
|
|
Other investments and other assets
|
|
|
108,045
|
|
Allowance for doubtful accounts
|
|
|
(6,302
|
)
|
|
|
|
|
|
Total investments and other assets
|
|
|
1,121,655
|
|
|
|
|
|
|
Total
non-current
assets
|
|
|
4,155,632
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and bank deposits
|
|
|
50,632
|
|
Accounts receivable, trade
|
|
|
532,091
|
|
Accounts receivable, other
|
|
|
1,354,670
|
|
Securities
|
|
|
20,000
|
|
Inventories and supplies
|
|
|
165,593
|
|
Advances
|
|
|
6,376
|
|
Prepaid expenses
|
|
|
36,121
|
|
Deposits
|
|
|
437,207
|
|
Deferred tax assets
|
|
|
53,739
|
|
Other current assets
|
|
|
37,054
|
|
Allowance for doubtful accounts
|
|
|
(19,219
|
)
|
|
|
|
|
|
Total current assets
|
|
|
2,674,265
|
|
|
|
|
|
|
Total assets
|
|
¥
|
6,829,897
|
|
|
|
|
|
|
(Note) Amounts are rounded down to the nearest 1 million yen.
(Millions of yen)
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Long-term liabilities
|
|
|
|
|
Bonds
|
|
¥
|
160,000
|
|
Lease obligations
|
|
|
352
|
|
Liability for employees retirement benefits
|
|
|
152,308
|
|
Accrued liabilities for loyalty programs
|
|
|
110,991
|
|
Provision for loss on business withdrawal
|
|
|
2,153
|
|
Asset retirement obligations
|
|
|
3,213
|
|
Other long-term liabilities
|
|
|
589
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
429,608
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable, trade
|
|
|
287,020
|
|
Lease obligations
|
|
|
217
|
|
Accounts payable, other
|
|
|
580,679
|
|
Accrued expenses
|
|
|
11,925
|
|
Current portion of
non-current
liabilities
|
|
|
60,000
|
|
Accrued income taxes
|
|
|
96,344
|
|
Advances received
|
|
|
35,526
|
|
Deposits received
|
|
|
81,916
|
|
Provision for loss on business withdrawal
|
|
|
1,077
|
|
Asset retirement obligations
|
|
|
704
|
|
Other current liabilities
|
|
|
22,212
|
|
|
|
|
|
|
Total current liabilities
|
|
|
1,177,625
|
|
|
|
|
|
|
Total liabilities
|
|
|
1,607,233
|
|
|
|
|
|
|
|
|
NET ASSETS
|
|
|
|
|
Shareholders equity
|
|
|
|
|
Common stock
|
|
|
949,679
|
|
|
|
|
|
|
Capital surplus
|
|
|
|
|
Capital legal reserve
|
|
|
292,385
|
|
|
|
|
|
|
Total capital surplus
|
|
|
292,385
|
|
|
|
|
|
|
Earned surplus
|
|
|
|
|
Earned legal reserve
|
|
|
4,099
|
|
Other earned surplus
|
|
|
|
|
Accelerated depreciation reserve
|
|
|
21
|
|
General reserve
|
|
|
358,000
|
|
Earned surplus brought forward
|
|
|
3,979,505
|
|
|
|
|
|
|
Total earned surplus
|
|
|
4,341,626
|
|
|
|
|
|
|
Treasury stock
|
|
|
(426,442
|
)
|
|
|
|
|
|
Total shareholders equity
|
|
|
5,157,248
|
|
|
|
|
|
|
Valuation and translation adjustments
|
|
|
|
|
Net unrealized holding gains or losses on securities
|
|
|
65,415
|
|
|
|
|
|
|
Total valuation and translation adjustments
|
|
|
65,415
|
|
|
|
|
|
|
Total net assets
|
|
|
5,222,663
|
|
|
|
|
|
|
Total liabilities and net assets
|
|
¥
|
6,829,897
|
|
|
|
|
|
|
(Note) Amounts are rounded down to the nearest 1 million yen.
48
NON-CONSOLIDATED
STATEMENT OF INCOME
Year ended March 31, 2017 (April 1, 2016 - March 31, 2017)
(Millions of yen)
|
|
|
|
|
|
|
|
|
Recurring profits and losses
|
|
|
|
|
|
|
|
|
Operating revenues and expenses
|
|
|
|
|
|
|
|
|
Telecommunications businesses
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
Voice transmission services
|
|
¥
|
872,521
|
|
|
|
|
|
Data transmission services
|
|
|
2,247,239
|
|
|
|
|
|
Other
|
|
|
52,976
|
|
|
¥
|
3,172,737
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Sales expenses
|
|
|
858,196
|
|
|
|
|
|
Facility maintenance expenses
|
|
|
334,615
|
|
|
|
|
|
General expenses
|
|
|
44,255
|
|
|
|
|
|
Administrative expenses
|
|
|
54,086
|
|
|
|
|
|
Research expenses
|
|
|
57,261
|
|
|
|
|
|
Depreciation and amortization
|
|
|
420,709
|
|
|
|
|
|
Loss on disposal of property, plant and equipment and intangible assets
|
|
|
66,382
|
|
|
|
|
|
Communication network charges
|
|
|
327,300
|
|
|
|
|
|
Taxes and public dues
|
|
|
49,347
|
|
|
|
2,212,155
|
|
|
|
|
|
|
|
|
|
|
Operating income from telecommunications businesses
|
|
|
|
|
|
|
960,581
|
|
Supplementary businesses
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
|
|
|
|
1,415,842
|
|
Operating expenses
|
|
|
|
|
|
|
1,460,542
|
|
|
|
|
|
|
|
|
|
|
Operating income (losses) from supplementary businesses
|
|
|
|
|
|
|
(44,699
|
)
|
|
|
|
|
|
|
|
|
|
Total operating income
|
|
|
|
|
|
|
915,882
|
|
Non-operating
revenues and expenses
|
|
|
|
|
|
|
|
|
Non-operating
revenues
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
534
|
|
|
|
|
|
Interest income-securities
|
|
|
341
|
|
|
|
|
|
Dividend income
|
|
|
21,833
|
|
|
|
|
|
Rental income
|
|
|
7,527
|
|
|
|
|
|
Miscellaneous income
|
|
|
7,078
|
|
|
|
37,315
|
|
|
|
|
|
|
|
|
|
|
Non-operating
expenses
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
26
|
|
|
|
|
|
Interest expense-bonds
|
|
|
2,590
|
|
|
|
|
|
Provision for doubtful accounts
|
|
|
5,609
|
|
|
|
|
|
Foreign exchange losses
|
|
|
1,979
|
|
|
|
|
|
Bad debt expenses for an affiliated company
|
|
|
3,401
|
|
|
|
|
|
Miscellaneous expenses
|
|
|
1,773
|
|
|
|
15,381
|
|
|
|
|
|
|
|
|
|
|
Recurring profit
|
|
|
|
|
|
|
937,816
|
|
Extraordinary profit
|
|
|
|
|
|
|
|
|
Gain on reversal of allowance for loss on business withdrawal
|
|
|
3,889
|
|
|
|
3,889
|
|
|
|
|
|
|
|
|
|
|
Extraordinary Loss
|
|
|
|
|
|
|
|
|
Write-down of investment in affiliated companies
|
|
|
14,965
|
|
|
|
|
|
Write-down of investment securities
|
|
|
71,912
|
|
|
|
86,878
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
|
|
854,828
|
|
Income taxes-current
|
|
|
|
|
|
|
205,600
|
|
Income taxes-deferred
|
|
|
|
|
|
|
20,062
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
¥
|
629,165
|
|
|
|
|
|
|
|
|
|
|
(Note) Amounts are rounded down to the nearest 1 million yen.
49
NON-CONSOLIDATED
STATEMENT OF CHANGES IN NET ASSETS
Year ended March 31, 2017 (April 1, 2016 - March 31, 2017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
Shareholders equity
|
|
|
|
Common
stock
|
|
|
Capital surplus
|
|
|
Earned surplus
|
|
|
Treasury
stock
|
|
|
Total
shareholders
equity
|
|
|
|
|
Capital
legal
reserve
|
|
|
Total
capital
surplus
|
|
|
Earned
legal
reserve
|
|
|
Other earned surplus
|
|
|
Total
earned
surplus
|
|
|
|
|
|
|
|
|
|
Accelerated
depreciation
reserve
|
|
|
General
reserve
|
|
|
Earned
surplus
brought
forward
|
|
|
|
|
Balance as of April 1, 2016
|
|
¥
|
949,679
|
|
|
¥
|
292,385
|
|
|
¥
|
292,385
|
|
|
¥
|
4,099
|
|
|
¥
|
48
|
|
|
¥
|
358,000
|
|
|
¥
|
3,759,741
|
|
|
¥
|
4,121,889
|
|
|
¥
|
(405,832
|
)
|
|
¥
|
4,958,122
|
|
Changes during the annual period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of accelerated depreciation reserve
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(27
|
)
|
|
|
|
|
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(280,431
|
)
|
|
|
(280,431
|
)
|
|
|
|
|
|
|
(280,431
|
)
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
629,165
|
|
|
|
629,165
|
|
|
|
|
|
|
|
629,165
|
|
Purchase of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(149,607
|
)
|
|
|
(149,607
|
)
|
Retirement of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(128,996
|
)
|
|
|
(128,996
|
)
|
|
|
128,996
|
|
|
|
|
|
Net changes other than shareholders equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The total amount of changes during the annual period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(27
|
)
|
|
|
|
|
|
|
219,764
|
|
|
|
219,736
|
|
|
|
(20,610
|
)
|
|
|
199,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of March 31, 2017
|
|
¥
|
949,679
|
|
|
¥
|
292,385
|
|
|
¥
|
292,385
|
|
|
¥
|
4,099
|
|
|
¥
|
21
|
|
|
¥
|
358,000
|
|
|
¥
|
3,979,505
|
|
|
¥
|
4,341,626
|
|
|
¥
|
(426,442
|
)
|
|
¥
|
5,157,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note) Amounts are rounded down to the nearest 1 million yen.
50
(Millions of yen)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation and translation adjustments
|
|
|
Total net assets
|
|
|
|
Net unrealized holding gains or
losses on securities
|
|
|
Total valuation and translation
adjustments
|
|
|
Balance as of April 1, 2016
|
|
¥
|
30,724
|
|
|
¥
|
30,724
|
|
|
¥
|
4,988,846
|
|
Changes during the annual period
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of accelerated depreciation reserve
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from surplus
|
|
|
|
|
|
|
|
|
|
|
(280,431
|
)
|
Net income
|
|
|
|
|
|
|
|
|
|
|
629,165
|
|
Purchase of treasury stock
|
|
|
|
|
|
|
|
|
|
|
(149,607
|
)
|
Retirement of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
Net changes other than shareholders equity
|
|
|
34,691
|
|
|
|
34,691
|
|
|
|
34,691
|
|
The total amount of changes during the annual period
|
|
|
34,691
|
|
|
|
34,691
|
|
|
|
233,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of March 31, 2017
|
|
¥
|
65,415
|
|
|
¥
|
65,415
|
|
|
¥
|
5,222,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note) Amounts are rounded down to the nearest 1 million yen.
51
[English Translation of the Auditors Report Originally Issued in the Japanese Language]