For Sustainable Growth in the 2020s - December 11, 2018
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
For Sustainable Growth
in the 2020s
December 11, 2018
0
Connecting dreams, for a richer future with 5G
Value and excitement Value co-creation
to customers with partners
Benefit
Contribution to industries
Convenience
Enjoyment Solution of social issues
Surprise Regional vitalization
Satisfaction Expansion of partners’ business
Peace of mind
Promote ESG management and strive to realize sustainable development of society by addressing the two aspects of
“Innovative docomo” and “Responsible docomo” 1
For Sustainable Growth in 2020s
• Transformation into business management
pivoted on membership base
• 5G rollout and business creation
Revenue opportunity creation centered on customer base
- Expansion of customer base and promotion of “+d”
- Growth of Smart life business
- Growth of Enterprise business
Growth driven by 5G
- Construction of 5G network
- Creation of 5G services and solutions
Execution of customer returns and evolution of customer touchpoints
- Great value and simple rate plans
- Shorten customers’ wait and attendance time
2
Positioning of Medium-Term
Management Strategy
Presents our concrete strategies and quantitative
targets in line with “Declaration beyond”
Medium-term management strategy
2017 2018 2019 2020 2021 2022 2023 ・・・
FY2017-2020s Announced
Apr. 2017
Strategy Medium-term strategy 2020
“Declaration beyond”
Announced
FY2019-2023 Oct. 31, 2018
Medium-term management strategy
Presents concrete initiatives and quantitative
targets* for sustainable growth in 2020s
Targets
* Target revenues/profit, operational indicators (number of
members, 5G investment, etc.)
3
Revenue opportunity creation centered on
customer base
Growth driven by 5G
Execution of customer returns and evolution of
customer touchpoints
4
Promotion of
Offer new value to customers and partners
Create revenue opportunities
d POINT
Billing/
my daiz Payment
Membership Shops AI Partners
base Devices
DOCOMO
assets
Advertisement
Enterprise partners:
No. of members: Drones Services
78 million DMP IoT 5,000
(FY2021 target) 5G (FY2021 target)
Create new added value
5
Revenue Creation through
Revenues from members Revenues from partners
B2C B2B2C B2B
Expansion of participating Solution development
Recommendation of stores, reinforcement of through Top Gun
services/products via support approach and 5G OPP
＋ ＋
web/system
Business support Nationwide rollout utilizing
in the fields of regional offices/branches
Proposal of optimal advertisement, CRM
service based on analysis
of members Co-creation of Co-creation of
new services new services
Bill amount
Platform revenues Solution revenues
Length of service use
6
Point
Expansion of Business Base
Build a new ecosystem through
synergy of membership and
transformation of the marketing model
Micro
marketing Ecosystem
エコシステム
（web/system） （個別課金）
（Pay per
revenue
Increase
use）
Expand
Physical
Ecosystem
marketing Increase
（Monthly customers
（personnel/shop） billing）
SubscriptionMigrate Membership
base base
7
Evolution of
Advance business models by deepening
our ties with partners
Point/Payment program Joint business
Marketing support
participating stores deployment
(c)J.LEAGUE
Expand fan base through Joint development of
collaborative marketing marketing tools & materials
New collaborative services
Micromarketing (Ads/CRM)
Authentication/Payment/Point services
8
Example of Business Model Advancement
Create new businesses by combining
partners’ assets with DOCOMO’s
《Case: DOCOMO × Matsumotokiyoshi》
New “co-creation” services
×
●High-precision target extraction
through the use of data owned ・ Gender, age ・Product purchase
by the two companies ・ Survey response
・ Service usage
history
・Record of past
promotions
Sales of ●Needs of manufacturers
marketing ・Highly accurate promotion
●Extensive reach leveraging the
media of both companies
tools & ・Analysis of actual purchasers
materials
●Capability to analyze actual purchaser
enabled by tracking of purchase data
9Growth of Finance/Payment Business
Expand the payment ecosystem
No. of locations where payment/ Approx.
point services can be used
900,000 → 2 million （FY2021 target)
Finance/Payment transactions Approx.
handled ¥3.2 trillion→ ¥6 trillion （FY2021 target)
Value to customers Value to partners
・Anywhere ・Stimulate usage
・Great value Payment platform ・Lower financing burden
・Convenience ・Improve productivity
DMP
Advertisement Various DOCOMO services
Financial services
Lending
docomo AI insurance
platform
10Effects of “d Payment” Implementation
“d Payment” turned out highly effective
in boosting partners’ businesses
Average transaction volume No. of transactions
Retailer Retailer
A B
Average transaction volume:
Up approx. 1.5-times No. of transactions
processed:
Up 10+ times
Other QR payment
services
d Payment d Payment 11Growth of Enterprise Business
Create and expand new solutions
to generate ¥120 billion in revenues (FY2021 target)
Nationwide Solve social issues
deployment through ICT
Tourism/
Sports Community
Workstyle
Fintech
reform
Health
Elderly Primary
Mobility care
industry Education
Solution creation with a wide range of partners
12Revenue opportunity creation centered on
customer base
Growth driven by 5G
Execution of customer returns and evolution of
customer touchpoints
135G Network Rollout
Steadily build coverage in areas
where 5G is considered necessary
FY2018 FY2019 FY2020 FY202x
▲ ▲
Rugby World Cup 2019™ The Olympic and Paralympic Games Tokyo 2020
Network rollout/
development Pre-commercial Commercial service
toward service
pre-commercial （from September (from Spring 2020)
service 2019)
¥1 trillion investment for 5G infrastructure buildout, etc.
(FY2019-2023 cumulative)
◆ NTT DOCOMO is a Gold Partner of the Tokyo 2020 Olympic and Paralympic Games (in the telecommunications services category).
14From “People” to “Everything”
From urban centers to local towns;
Roll out service in areas where there is demand
◆Future（5G）
◆Past (Up to 4G)
“Humans”were considered to be the user “Humans + objects” to be provided with service
15DOCOMO Open House 2018
An exhibition event showcasing various
programs, including business solutions
leveraging 5G, AI, IoT and other state-of-the-
art technologies and speeches / lectures
by a wide array of collaboration partners
【Event dates】 Dec. 6-7, 2018
* Introduced 5G use cases that take advantage of
5G’s unique properties, i.e., high-speed & large-
capacity transmission, low latency and massive
device connectivity
Garnered 14,000 visitors in 2 days
（Up 1.7 times compared to FY17）
16DOCOMO 5G Open Cloud
Provision of various services on cloud,
enabling business matching of partners
DOCOMO DOCOMO DOCOMO Partners Partners
Image Intent Translation, Multi-device AI/IoT
Human object
interpretation
recognition natural dialogue
speech
recognition, etc. live encoder
4K live video
Image/video
solutions 5G+cloud
detection recognition distribution
Constructed a telecom cloud environment
DOCOMO 5G Open Cloud ™ directly linking 5G’s verification
environment with the cloud platform
DOCOMO’s AI
Techniques
Partners’
techniques AI techniques
Use of DOCOMO’s AI techniques
such as image recognition,
DOCOMO Cloud Platform AI agent platform, etc.
Co-creation
Creation of joint solutions combining
partners’ assets with DOCOMO’s
DOCOMO５G Open Lab™ 175GxAR Sports Viewing
High speed
Large capacity
Low latency Displays information sent from MEC* server
in the venue on smart glass in real time
Securing bandwidth through slicing
+ Use of MEC server
5G
↓
Wi-Fi router
Content
transmitter
Realizes low latency
(Studio system)
(Communication time lag: 1/1000 second)
Mobile station Base station
MEC server
(3D image recognition *MEC（Multi-access-Edge Computing）:
processing)
Optimizes communication by assigning the data
processing function near the edge of the network such
as smartphones and other terminal devices. An
architecture that holds key to the next-generation
network that realizes much faster transmission speeds.
94th Japan National Inter-college Swimming Championship (Sept. 7-9, 2018)
18Remote Support Solution
Using 8K Image Transmission
High speed
Large capacity
Enables remote work support in agriculture
where professional skills are required
Before
■5G×8K image transmission Verification trial configuration
8K Determination on harvest time
（Example: Grape)
LAN LAN LAN HDMI×4
Encode Distributor Player decode 8K minotor ★Required advanced professional skills
such as visual judgment of color of
the grain or cluster of grape
■ Future implementation in field (illustrative)
After
Farm/orchard Precisejudgmentbasedon Agricultural lab
remoteinstruction 8K high-resolution image
Wearable device
（8K, etc）
Instruction using images/voice,
judgment on harvest, etc.
transmission using 5G
○ Supplements remote visual judgment
5G
with high color reproducibility
Farmer Images with high color reproducibility Technical instructor
○ Provision of farm operational instructions
(e.g., 4K, 8k)
without any constraints on distance or time
19High-Resolution Video Transmission
High speed
Large capacity
High-resolution video transmission using 5G
Live venue Realize transmission of high-resolution
videos by taking advantage of 5G’s
IP-HE950E high-speed & large-capacity
4K camera 4K encoder
transmission capabilities.
Broadcaster, etc
Broadcast service
Viewer platform Broadcasting vans and
wired cables no longer required
IP-HE950D Programming APC
Vatic 9901si
as cameras and relay stations
4K decoder
can be connected with 5G
IP distribution
【Examples of services】
Internet
Multiscreen-compatible encoder
transcoder/ Elemenntal Live
● Delivery of live videos of sports,
① ② ③ ④ ⑤
music performances, etc.
● Live video distribution to event
Distribute ON View program
Transmit videos Perform
Shoot video filmed via 5G programming AIR data via the from various
using 4K network. Video with the live broadcaster devices, e.g.,
camera at
live venue
data is encoded
with H.265/HEVC.
video and file
content.
and IP
distribution
TV, PC,
smartphone, sites or enterprises
20
portal. etc.Remote Operation of Humanoid Robots
Enables free maneuvering of robots
Low latency
from a distant location like an alter ego
Place of operation Place of work
5G base station
Low latency transmission
enabled by 5G
5G device Potential use cases
Everyday chores, e.g., housekeeping,
ｚ
Optical fiber network
nursing, child care
Construction work and medical diagnosis
Free maneuvering from a
Work in extreme or hazardous conditions in
remote location sharing the disaster-stricken areas, etc.
torque between the two
Master operation system Humanoid robot
（Operator） T-HR3* * Humanoid robot developed by Toyota Motor Corporation.
21Revenue opportunity creation centered on
customer base
Growth driven by 5G
Execution of customer returns and evolution of
customer touchpoints
22Affordable Rates for
First-Time Smartphone Users
Discount of ¥1,500/month
NEW To start Nov. 1, 2018
“Welcome Sumaho Wari”
From Discount of ¥1,500/month for 1 year
¥1,606 From
¥980
◆ The rates above do not include taxes.
◆ Rates applied for use of feature phone (“Type SS Value” + i-mode monthly fee + “Pake-hodai Double”)
23
◆ Rates applied for use of smartphone (“Simple Plan” + sp-mode monthly fee + “Basic Pack” + “Zutto DOCOMO Wari Plus(Platinum Stage)” + “docomo with” + “Welcome
Sumaho Wari”)Accelerate Subscriber Migration
Leveraging “Welcome Sumaho Wari”
With the view to terminate 3G service
in mid-2020s
2000~ 2010~ 2020~ 2030~
5G
4G
3G
Accelerate migration of feature phone users
24Great Value & Simple Rate Plans
Pursue customers’ ease of understanding
Survey on DOCOMO’s rate plans Customers’ voices
Q: Are our rate plans easy to understand?
The rate plans are hard to
understand. “Make them simpler.”
23%
Yes
48% “The structure of the rate plans is too complex.
No Cannot fully understand even if I read
29% your home page or other material.”
Cannot
say either
“Cannot understand the rate plan just by using
Approx. 50% of customers the service on a daily basis.”
think the rate plans are “Cannot perceive savings or great value from
difficult to understand user’s perspective.”
◆ Independent survey on rate plans by DOCOMO (Conducted June 2018, No. of respondents=6,618)
25Bold Review of Rate Plans
To be announced and launched
in FY2019/1Q
Low-cost plan Customer returns (per annum)
Approx. 20-40% Up to approx.
rate reduction ¥400 billion
26
◆ The actual level of reduction may be different from the description herein depending on customer’s usage behavior.Customer Returns (Illustrative)
Projected size of customer returns is max. ¥400 billion/year,
after accounting for the revenue impact mitigation effect
from eliminating “Monthly Support” discounts
Impact of eliminating “Monthly Support”
Revenue impact from launch of new rate structure
taking into account abolishment of “Monthly Support”
Negative revenue impact from
Max. ¥400 billion
the new billing scheme
27Implications of the New Rate Plan
In order to continue to truly be chosen by
customers,
Complicated rate plan
should be made
Simple and
easy to Customers
understand
With low rate level,
Have them
really feel Make the customer
the bargain base more solid,
to maximize LTV
28MIC’s Urgent Proposal (draft)
As a result of the joint meeting of “Mobile Study Group” and “Consumer Protection
Working Group” under the Ministry of Internal Affairs and Communications (MIC)
held on Nov. 26 (Mon), 2018, an urgent proposal (draft) was developed;
Overview of Proposal
１. Realization of simple and easy-to-understand rate plans
・ Complete separation of tele-communication charges from handset cost.
・ Review of binding periods that unreasonably restrict users from switching
operators, or impede fair competition amongst operators.
・ Review of rate plans that are excessively complicated and lack rationality.
２. Ensuring adequacy of sales agencies’ businesses
・ Introduce a filing system so that the administration can directly recognize the
existence of sales agencies.
・ Prohibit inappropriate solicitation that could mislead users.
・ Introduce discipline with “Business Improvement Order” for any inappropriate
business practices in handset sale or other activities.
29Medium-Term Operational Indices
Revenue “d POINT CLUB” members: 78 million
opportunity Enterprise partners: 5,000
creation Locations where payment/point service can be used: 2 million
centered on
customer Transactions handled by Finance/Payment business: ¥6 trillion
base Enterprise solution revenues: ¥120 billion
(FY2021 target)
Cumulative investment for 5G infrastructure
Growth driven build-out, etc.: ¥ 1 trillion
by 5G (FY2019-FY2023)
Evolution of Wait time + attendance time:
customer Roughly half
(Within FY2019) the current level
touchpoints
◆ Total number of locations where “d POINT,” “iD” and “d Payment” can be used
30Cost Efficiency Improvement
Continue to work on cost efficiency
improvement through structural reform
Marketing Network
Example Reinforcement of online sales Integration into higher-efficiency
Automated customer services equipment
of measures Use of AI and other technologies
Lower infrastructure cost
Expected More efficient store operation
Improved efficiency in
Reduced attendance time/
effects network operations and
wait time
maintenance
31Financial Targets
Execute customer returns and growth investments
to achieve sustainable growth
Recover
FY2023
Customer operating profit
Drop in profit projected, but…
returns to ¥990 billion
FY2021
Growth of Operating revenues
Smart life, ¥ 5 trillion
Enterprise
businesses
and 5G
◆ FY2023 operating profit target is comparable to the FY2017 level
32For Sustainable Growth
Reinforce Customer Relationships
－ Great value and simple rate plans Expansion
Tele- Of
communications
－ Evolution of customer touchpoints
Customer base
business － Further upgrade of network,
Further reinforcement of
disaster preparedness measures
Business management
pivoted on membership base
Smart life
business
Smart
life
Enterprise 5G Growth of non-
telecommunications
business
Co-creation with partnersMedium-Term Management
Strategy: Summary
The basic policy of medium-term management strategy is to clearly shift
the Company’s direction to “transformation into business management
pivoted on membership base” and “5G rollout and business creation.”
As concrete initiatives, in response to customer voices, we will execute
customer returns through simple rate plans that offer great value.
By connecting our membership base—which will be strengthened
through the customer return measures—with our partners, we will
create revenue opportunities for Smart life, Enterprise and 5G
businesses, etc.
By undertaking the above, we aim to recover our operating profit
for FY2023 to a level comparable to FY2017 and realize sustained growth
in the 2020s.
34You can also read
