F i n a n c i a l R e s u l t s P r e s e n t - PowerPoint PPT Presentation

F o r t h e F i r s t T h r e e Q u a r t e r so f F i s c a l Y e a r E n d i n g S e p t e mb e r 3 0 , 2 0 1 5 F i n a n c i a l R e s u l t s P r e s e n t a t i o n Aug 3, 2015 Securities Code:9438

C O N T E N T S C o n s o l i d a t e d F i n a n c i a l R e s u l t s O v e r v i e w f o r Q 3 F Y 2 0 1 5 1 2 F i n a n c i a l H i g h l i g h t s 3 C o n s o l i d a t e d P / L 4 C o n s o l i d a t e d S G & A 5 P r o g r e s s f o r E a r n i n g s F o r e c a s t f o r t h e F u l l - y e a r T e r m 6 B u s i n e s s O v e r v i e w 1 1 C o n s o l i d a t e d B / S N e w A c t i o n s f r o m Q 4 F Y 2 0 1 5 12 1 3 B a s i c P o l i c y i n t h e F Y 2 0 1 5 1 4 E n h a n c e me n t i n t h e N o n - v i r t u a l A f f i l i a t e N e t w o r k 1 5 E n l a r g e me n t o f C o n t e n t s S e r v i c e s 2 0 E x p a n s i o n o f t h e H e a l t h c a r e - r e l a t e d S e r v i c e B u s i n e s s D o ma i n 2 4 C o n s o l i d a t e d E a r n i n g s F o r e c a s t f o r t h e F Y 2 0 1 5 2 5 I ma g e o f G r o w t h O p e r a t i n g I n c o me A p p e n d i x 26

Consolidated Financial Results Overview for Q3 FY2015 1

F i n a n c i a l H i g h l i g h t s １ N e t s a l e s a n d o p e r a t i n g i n c o me f o r t h e f i r s t t h r e e q u a r t e r s r e c o r d h i g h s ! r e a c h e d N e t s a l e s U p1 , 8 7 1mi l l i o n s o f y e n , U p8 . 1 %, Y o Y ¥24,881 M ( ) O p e r a t i n g i n c o me U p 1 , 5 9 7mi l l i o n s o f y e n , U p 8 2 . 7 %, Y o Y ¥3,528 M ( ) N e t i n c o me U p 9 3 4mi l l i o n s o f y e n , U p 9 2 . 6 %, Y o Y ¥1,944 M ( ) 2 N e t s a l e s , o p e r a t i n g i n c o me , a n d t h e d i v i d e n d p e r s h a r e r e c o r d h i g h s ! wi l l l i k e l y r e a c h N e t s a l e s ¥34,000 M O p e r a t i n g i n c o me ¥4,200 M A n n u a l d i v i d e n d s ¥12 * A f t e r s h a r e s p l i t 2

C o n s o l i d a t e d P / L ■ S S a l e s a n d i n c o me t r o n g p e r f o r ma n c e o f S u g o T o k uc o n t e n t ( N T T d o c o mo ) ■ I mp r o v e me n t i n a v e r a g e r e v e n u e p e r u s e r ( A R P U ) I n c r e a s e d Y o Y C h a n g e N i n e mo n t h s e n d i n g N i n e mo n t h s e n d e d ( Mi l l i o n s o f y e n ) S e p t e mb e r 3 0 , 2 0 1 5 S e p t e mb e r 3 0 , 2 0 1 4 A mo u n t P e r c e n t a g e 2 4 , 8 8 1 2 3 , 0 1 0 + 1 , 8 7 1 + 8 . 1 % N e t s a l e s 3 , 9 4 7 3 , 7 1 4 + 2 3 3 + 6 . 3 % C o s t o f s a l e s 2 0 , 9 3 3 1 9 , 2 9 5 + 1 , 6 3 8 + 8 . 5 % G r o s sp r o f i t 8 4 . 1 % 8 3 . 9 % （R a t i o ） 1 7 , 4 0 5 1 7 , 3 6 4 + 4 0 + 0 . 2 % S G &A 7 0 . 0 % 7 5 . 5 % （R a t i o ） 3 , 5 2 8 1 , 9 3 1 + 1 , 5 9 7 + 8 2 . ７％ O p e r a t i n gi n c o me 1 4 . 2 % 8 . 4 % （R a t i o ） 3 , 4 3 9 1 , 9 2 5 + 1 , 5 1 4 + 7 8 . 7 % O r d i n a r yi n c o me 1 3 . 8 % 8 . 4 % （R a t i o ） 1 , 9 4 4 1 , 0 0 9 + 9 3 4 + 9 2 . 6 % N e t i n c o me 7 . 8 ％ 4 . 4 % （R a t i o ） 3

C o n s o l i d a t e d S G&A e x p e n s e s ■ A p p r o p r i a t e l y c o n t r o l l e d s e l l i n g , g e n e r a l a n d a d mi n i s t r a t i v e e x p e n s et h r o u g h me a n i n g f u l u s e . ( U p 4 0 mi l l i o n s o f y e n ) C h a n g e N i n e mo n t h s e n d i n g N i n e mo n t h s e n d e d ( Mi l l i o n s o f y e n ) S e p t e mb e r 3 0 , 2 0 1 5 S e p t e mb e r 3 0 , 2 0 1 4 A mo u n t P e r c e n t a g e 1 7 , 4 0 5 1 7 , 3 6 4 + 4 0 + 0 . 2 % S G &A 6 , 4 9 7 6 , 0 4 2 + 4 5 4 + 7 . 5 % A d v e r t i s i n g e x p e n s e s 4 , 2 1 1 4 , 2 5 0 - 3 9 - 0 . 9 % P e r s o n n e l e x p e n s e s 2 , 7 5 8 2 , 5 2 5 + 2 3 3 + 9 . 2 % C o mmi s s i o nf e e 1 , 0 2 7 1 , 3 8 2 - 3 5 4 - 2 5 . 7 % S u b c o n t r a c t e x p e n s e s 1 , 0 0 9 1 , 3 4 1 - 3 3 1 - 2 4 . 7 % D e p r e c i a t i o n 1 , 9 0 0 1 , 8 2 2 + 7 8 + 4 . 3 % O t h e r 4

P r o g r e s s f o r E a r n i n g s F o r e c a s t f o r t h e F u l l - y e a r T e r m 8 4 % o ■ O p e r a t i n g i n c o me r e a c h e d f t h e a n n u a l f o r e c a s t . P e r f o r ma n c e wa s g o o d . F Y 2 0 1 5 P r o g r e s s r a t i o (Millions of yen） F u l l - y e a r 3 Q ( C u mmu l a t i v e ) f o r e c a s t A c t u a l Net sales 2 4 , 8 8 1 3 4 , 0 0 0 7 3 . 2 % Operating income 3 , 5 2 8 4 , 2 0 0 8 4 . 0 % （R a t i o ） 1 4 . 2 % 1 2 . 4 % Ordinary income 3 , 4 3 9 4 , 1 2 0 8 3 . 5 % （R a t i o ） 1 3 . 8 % 1 2 . 1 % Net income 1 , 9 4 4 2 , 2 7 0 8 5 . 6 % （R a t i o ） 7 . 8 % 6 . 7 % 5

T h e N u mb e r o f P a y i n g S u b s c r i b e r s ( B u s i n e s s O v e r v i e w : S ma r t p h o n e ) N e t d e c r e a s e i n s ma r t p h o n e s a l e s b e c a u s e Q 3 i s a l o w s e a s o n 5.69 M p a y i n g s u b s c r i b e r s Down 0.21M, compared to March 31, 2015 Monthly change in the number of paying subscribers for smartphones 5 . 9 0 5 . 6 9 5 . 5 2 5 . 4 0 5 . 3 3 5 . 2 8 4 . 8 0 4 . 7 6 4 . 4 1 4 . 2 6 i P h o n e 1 . 1 4 M J a n F e b M a r A p rM a y J u n J u l A u g S e p O c tN o v D e c J a n F e b M a r A p rM a y J u n J u l A u g S e p O c t N o v D e c J a n F e b M a r A p r M a y J u n 2 0 1 3 2 0 1 4 2 0 1 5 6

T h e T o t a l N u mb e r o f P a y i n g S u b s c r i b e r s B u s i n e s s O v e r v i e w : N e t d e c r e a s e i n s ma r t p h o n e s a l e s b e c a u s e Q 3 i s a l o w s e a s o n S ma r t p h o n e r a t i o 7.73 M p a y i n g s u b s c r i b e r s Exceeds 73.6 % Down 0.35M, compared to March 31, 2015 Quarterly change in the number of paying subscribers 8.58 8.26 8.16 8.17 8.13 8.08 8.04 8.04 7.94 7.90 7.86 7.85 7.83 7.73 7 3 . 6 % 6 6 . 8 ％ 5 5 . 5 ％ 2 8 . 5 ％ 1 2 / 0 31 2 / 0 61 2 / 0 91 2 / 1 21 3 / 0 31 3 / 0 61 3 / 0 91 3 / 1 21 4 / 0 31 4 / 0 61 4 / 0 91 4 / 1 21 5 / 0 31 5 / 0 6 フィーチャーフォン スマートフォン Feature phones Smart phones 7

d o c o mo ” d - me n u ” R a n k i n g B u s i n e s s O v e r v i e w : 8 contents! N o . 1 D e c o r a t i o n e - ma i l We s t e r n H e a l t h c a r e p r e g n a n c y , c h i l d b i r t h , E - b o o k M u s i c P h o t o b o o k M u l t i - d i c t i o n a r y U n l i mi t e d d i s t r i b u t i o n F o r t u n e - t e l l i n g - r e l a t e d c h i l d c a r e ゲッティ イメージズ E a s t e r n P u z z l e g a me D i e t & b e a u t y P o i n t a t p h r a s e s We a t h e r i n f o C o mi c F o r t u n e - t e l l i n g N o . 2 N o . 4 8 * Source: Ranking data from “d-menu”, a portal site for smartphone services, by NTT docomo Co., Ltd. as of July 21 , 2015