Medium-Term Management Strategy - October 31, 2018 - Results Presentation
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FY2018/2Q
Results Presentation
(excerpted version)
Medium-Term Management Strategy
October 31, 2018
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
Revenue opportunity creation centered on
customer base
Growth driven by 5G
Execution of customer returns and evolution of
customer touchpoints
3
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) (FY2021 target)
5G
Create new added value
4
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
5
Growth 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
6
Growth 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
7
Revenue opportunity creation centered on
customer base
Growth driven by 5G
Execution of customer returns and evolution of
customer touchpoints
8
5G 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).
95G Services & Solutions
Creation underway in cooperation with a wide
range of partners toward full-scale launch of 5G
Solutions for social issues/
New sensory experience services Regional vitalization
High presence
Stadium solutions Remote medicine
Interactive
Anomaly detection Remote operation of
VR/AR/MR New sensory live events through video analysis construction equipment, etc.
(Disaster prevention/
10
mitigation)Case-1: Stadium Solutions
Delivery of new sport-viewing styles
Stadium viewing Public viewing Experience sharing
Multi-angle images
Stadium
Stats
Video
Tactile Audio
Video
Image Video
Public viewing venue
11Case-2: Disaster Prevention & Mitigation
Anomaly detection using AI analytics of
city video/image feeds
Fire detection Human movement
Congestion detection detection
Squat
Wheelchair
12Case-3: Remote Medicine
Eliminate inequality in access to healthcare by
leveraging 5G
Next-generation mobile clinic vehicles
Real-time sharing of
high-resolution
diagnostic imaging
Treatment advice
Real-time
communication
via high-resolution
Specialist at TV conferencing General practitioner
general hospital
DOCOMO
Open House 2018 To be showcased
5G Innovation and Collaboration in December
Dec. 6-7 (Thu & Fri), 2018 @Tokyo Big Sight
13Revenue opportunity creation centered on
customer base
Growth driven by 5G
Execution of customer returns and evolution of
customer touchpoints
14Affordable 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”)
15
◆ 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”)Great 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
“The structure of the rate plans is too complex.
48%
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
the service on a daily basis.”
Approx. 50% of customers “Cannot perceive savings or great value from
think the rate plans are user’s perspective.”
difficult to understand
◆ Independent survey on rate plans by DOCOMO (Conducted June 2018, No. of respondents=6,618)
16Bold 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
17
◆ The actual level of reduction may be different from the description herein depending on customer’s usage behavior.For Customers’
Comfortable Experience
Reduction of wait/attendance time
Average: Over 2 hours
Present Various explanations & Initial settings
Wait time
(2018) procedures, etc. Data transfer
Cut roughly by half Support provided
only upon request
Wait Various explanations & Initial settings
Within FY2019
time procedures, etc. Data transfer
Expand use of Review explanation Assignment of dedicated staff
Initiatives shop visit reservation method (Initial setting/data transition) Smartphone class
towards
reduction Reinforce web page / Promote micromarketing / Coordination between channels
◆ Wait time/attendance time represents the average time required for a customer to purchase a smartphone calculated based on DOCOMO’s independent shop survey (conducted
in 2018 with a sample size of approximately 850 shops). 18Medium-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: Roughly half
customer (Within FY2019) the current level
touchpoints
◆ Total number of locations where “d POINT,” “iD” and “d Payment” can be used
19Financial 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
20Medium-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.
21The new of today, the norm of tomorrow
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