Form 20-F þ | Form 40-F o |
Yes o | No þ |
NTT DoCoMo, Inc. |
||||
Date: November 12, 2008 | By: | /S/ OSAMU HIROKADO | ||
Osamu Hirokado | ||||
Head of Investor Relations | ||||
* | Securities and Exchange Board of India Act, 1992: SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 |
Copyright (C) 2008 NTT DOCOMO, INC. All rights reserved. NTT DOCOMO, INC. Investment in Indias Tata Teleservices Ltd. November 12, 2008 |
SLIDE No. 1 Investment in India This presentation contains forward-looking statements such as forecasts of results of operations, management strategies, objectives and plans, forecasts of operational data such as expected number of subscribers, and expected dividend payments. All forward-looking statements that are not historical facts are based on managements current plans, expectations, assumptions and estimates based on the information currently available. Some of the projected numbers in this report were derived using certain assumptions that are indispensable for making such projections in addition to historical facts. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from those contained in or suggested by any forward-looking statement. Potential risks and uncertainties include, without limitation, the following: 1. As competition in the market becomes more fierce due to changes in the business environment caused by Mobile Number Portability, new market entrants, competition from other cellular service providers or other technologies, and other factors could limit our acquisition of new subscribers retention of existing subscribers, or may lead to decrease in ARPU or an increase in our costs and expenses. 2. Current and new services, usage patterns, and sales schemes introduced by our corporate group may not develop as planned, which could affect our financial condition and limit our growth. 3. The introduction or change of various laws or regulations or the application of such laws and regulations to our corporate group could restrict our business operations, which may adversely affect our financial condition and results of operations. 4. Limitations in the amount of frequency spectrum or facilities made available to us could negatively affect our ability to maintain and improve our service quality and level of customer satisfaction. 5. The W-CDMA technology that we use for our 3G system and/or mobile multimedia services may not be introduced by other overseas operators, which could limit our ability to offer international services to our subscribers. 6. Our domestic and international investments, alliances and collaborations may not produce the returns or provide the opportunities we expect. 7. As electronic payment capability and many other new features are built into our cellular phones, and services of parties other than those belonging to our corporate group are provided through our cellular handsets, potential problems resulting from malfunctions, defects or loss of handsets, or imperfection of services provided by such other parties may arise, which could have an adverse effect on our financial condition and results of operations. 8. Social problems that could be caused by misuse or misunderstanding of our products and services may adversely affect our credibility or corporate image. 9. Inadequate handling of confidential business information including personal information by our corporate group, contractors and other factors,may adversely affect our credibility or corporate image. 10. Owners of intellectual property rights that are essential for our business execution may not grant us the right to license or otherwise use such intellectual property rights on acceptable terms or at all, which may limit our ability to offer certain technologies, products and/or services, and we may also be held liable for damage compensation if we infringe the intellectual property rights of others. 11. Earthquakes, power shortages, malfunctioning of equipment, software bugs, computer viruses, cyber attacks, hacking, unauthorized access and other problems could cause systems failures in the networks required for the provision of service, disrupting our ability to offer services to our subscribers, and may adversely affect our credibility or corporate image. 12. Concerns a bout wireless telecommunications health risks may adversely affect our financial condition and results of operations. 13. Our parent company, Nippon Telegraph and Telephone Corporation (NTT), could exercise influence that may not be in the interests of our other shareholders. Forward-Looking Statements |
SLIDE No. 2 Investment in India 1. Overview of India (Part 1) ??Overview ?? Country name India ?? Area 3,287,263 km2 (Source: Indian government materials. Includes regions under dispute with Pakistan and China) ?? Population 1,148 million (as of July 2008) ?? Capital city New Delhi, population 295,000 (2001) ?? Religions Hinduism (80.5%), Islam (13.4%) Christianity (2.3%), Sikhism (1.9%) Buddhism (0.8%), Jainsm (0.4%) (Source: Country Census 2001) ?? Language Primary official language: Hindi 21 other languages are recognized under the Indian Constitution ?? Economy Real GDP growth: 9.3% (2007) Nominal GDP: INR 45.53 trillion (2007), (USD 1.100 trillion) Nominal GDP per capita: USD 942 (2007) ?? Other Since the 1990s, India has been continuing deregulation and reforms, and has been experiencing robust growth The large younger population has helped the rapid development of Indias IT industry, and Indias economy is the 12th largest in the world Source: Bureau of Immigration, Department of Tourism of India, CIA Factbook,Jetro, IMF |
SLIDE No. 3 Investment in India 1. Overview of India (Part 2) Sources: Wireless Intelligence, IMF Fundamental economic indicators (2007) ?? Robust growth is expected for both Indias economy and its wireless market Wireless penetration rate 21% 78% Nominal GDP per capita (USD) (estimate) 942 34,296 Nominal GDP (USD bn) 1,100 4,382 Real GDP growth rate 9.34% 2.08% India Japan (USD) Source: IMF (mm) Source: Wireless Intelligence Nominal GDP per capita & GDP growth Subscriber and penetration trends 428 513 588 652 148 236 339 54.2% 49.5% 43.7% 37.0% 29.6% 13.3% 20.9% 0 100 200 300 400 500 600 700 800 2006 2007 2008 2009 2010 2011 2012 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% _ñ#Ò# gÑdb#y¦ Subscribers Wireless penetration 1,043 1,122 521 690 942 1,433 1,319 1,215 1,557 7.7% 8.0% 6.9% 7.9% 9.3% 6.9% 9.1% 8.0% 8.0% 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2003 2005 2007 2008 2009 2010 2011 2012 2013 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Nominal GDP per capita GDP growth Estimate Estimate |
SLIDE No. 4 Investment in India Source: Nomura Research Institute analysis based on National Council for Applied Economic Research (NCAER) data Note1: Household incomes are in real terms with 2001 as the base year Note2: INR/JPY exchange rate is INR 1 = JPY 2.74 (approximate figure based on TTS rate as of 2008/3/4) 1. Overview of India (Part 3) < 0.25mm < 0.55mm > 0.25mm < 1.35mm > 0.55mm < 2.7mm > 1.35mm > 2.7mm Nominal exchange rate (JPY) < 0.09mm < 0.20mm > 0.09mm < 0.50mm > 0.20mm < 1mm > 0.50mm > 1mm (Rupees) Household income 2001 2005 135.4 9.0 1.7 0.8 132.2 53.3 13.2 3.2 1.7 2.5 4.9 (Units: million households) Number of households by income level India has a steadily growing middle class 41.3 |
SLIDE No. 5 Investment in India 2. High growth potential of Indias wireless market 9.0% 18.0% 32.7% 9.2% 24.9% 30.0% 5.4% 49.2% 19.4% 59.0% 0% 10% 20% 30% 40% 50% 60% 70% W. Eur ope E. E urope Africa Mid East N. America S. America Asia Pacific Japan China ?? The robust growth of the Indian wireless market may enable DOCOMO to capture growth in the medium term ?? Penetration is projected to increase from the current 30% (320mm subscribers) to 54% (650mm subscribers) in 2012 Source: Gartner July 2008 (China and India data as of June 2008#j 8.1% 4.7% 21.2% 14.3% 3.2% 14.4% 8.0% 6.5% 12.9% 3.2% 0% 5% 10% 15% 20% 25% W. Europe E. Europe Afr i ca Mid East N. America S. America Asia Pacific Japan China 2007 Actuals 2010 Estimates *As of Sep 2008, Source: Wireless Intelligence Subscriber growth (yoy) India India * |
SLIDE No. 6 Investment in India 3. Wireless operators in India TTSL (incl. TTML) 29.3 0.0 9.3% 1,104 20 Others (5 players) 2.1 1.7 0.7% NA NA MTNL 4.0 3.7 1.3% 918 2 Spice 3.6 3.6 1.1% 197 2 (announced merger) Aircel 13.9 13.9 4.4% NA 10 IDEA 30.4 30.4 9.6% 1,380 12 (announced merger) BSNL 43.9 39.2 13.9% 7,812 21 Vodafone Essar 54.6 54.6 17.3% NA 19 Reliance 56.0 9.2 17.8% 3,865 23 Communications Bharti 77.5 77.5 24.6% 5,517 23 (mm) (mm) (08/9) (mm USD) # circles with existing subscriber base Revenues GSM subs Market share (08/3) (08/9) Subscribers (08/9) Wireless subscribers in India (Sep 2008): 315.3mm (of which GSM: 233.7mm, CDMA: 81.6mm) Source#FTRAI, COAI, Company information |
SLIDE No. 7 Investment in India 4. Strategic rationale for partnership with TTSL ?? Strategic rationale for partnership with TTSL ?? The Tata Group is one of the largest and highly respected conglomerate in India ?? Significant upside from GSM rollout ?? TTSL will increase its enterprise value even further with the technology and know-how provided by DOCOMO |
SLIDE No. 8 Investment in India 4-1. Overview of the Tata Group ?? One of Indias largest business conglomerates, with group revenues of approximately US $62.5 bn in 2007 March -08 March * ?? Employs ~ approximately 350,000 people across 7 business sectors ?? Includes 27 publicly listed enterprises having a cumulative shareholder base of over 3.2 million. The total market cap* of key listed entities is approximately US$24.2 bn ?? Operations in over 80 countries across six continents and exports products & services to over 85 countries ?? Founded by Mr. Jamsetji Tata in the second half of the 19th century, the Group is currently headed by Mr. Ratan N. Tata Tata Motors (incl. JLR), Voltas, Tata Autocomp Systems, Tata 17% Projects, Tata Construction Equipment Engineering IT & communications TCS, Tata Tech, Tata Exlsi, Tata Communications, Tata Tele 16% Consumer Products Tata Tea, Titan, Trent, Infiniti Retail 3% Chemicals Tata Chemicals, Rallis 3% Services Indian Hotels, Tata Realty, Tata Housing, Insurance, AMC 4% Energy Materials Sector Tata Power, Tata BP Solar Tata Steel (incl. Corus), Tata Advanced Materials Major companies 5% 52% Group revenue share (FY08) *$ exchange rates as of FY 2007-08 |
SLIDE No. 9 Investment in India 1 Includes TTML (6.2mm subs) 2 Includes TTML (5.7mm subs) 3 Only the wireless market. Includes TTML NNeettwwoorrkk ccoovveerraaggee ??Has CDMA operations in 20 circles ??Has obtained GSM spectrum in 8 circles, and plans to launch services in early 2009 ??Headquarters: Mumbai, India ??Subscribers: 30.2mm1 (as of 2008/9) ??Wireless subscribers: 29.3mm2 (as of 2008/9) Market share: 9.3%3 (as of 2008/9) ??Wireless technology: CDMA, GSM (rollout is planned to start 2009/1) ??Retail network: 3,500+ exclusive or directly owned stores ??Revenues: INR53,779mm (JPY 108.6bn) (at 2008/3) ??Shares: unlisted ??Chairman of the Board ??Ratan Tata ??Managing Director ??Anil Sardana ??Headquarters: Mumbai, India ??Subscribers: 30.2mm1 (as of 2008/9) ??Wireless subscribers: 29.3mm2 (as of 2008/9) Market share: 9.3%3 (as of 2008/9) ??Wireless technology: CDMA, GSM (rollout is planned to start 2009/1) ??Retail network: 3,500+ exclusive or directly owned stores ??Revenues: INR53,779mm (JPY 108.6bn) (at 2008/3) ??Shares: unlisted ??Chairman of the Board ??Ratan Tata ??Managing Director ??Anil Sardana CCoommppaannyy oovveerrvviieeww 4-2. Overview of TTSL 1 Includes TTML (6.2mm subs) 2 Includes TTML (5.7mm subs) 3 Only the wireless market. Includes TTML Exchange rate: Middle rate as of 2008/10/31: INR 1 = JPY 2.02 Karnataka Kerala Tamilnadu Chennai Andhra Pradesh Maharashtra Madhya Pradesh Mumbai Bihar Orissa Kolkata Haryana CDMA services CDMA services and GSM spectrum obtained TTMLs area of operations |
SLIDE No. 10 Investment in India 1.6 2.5 6.8 13.2 19.7 0 10 20 30 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 TTSL wireless subscribers (in mm) ?? TTSLs wireless subscriber base grew at a CAGR of 87.3% from Mar 2004 to Mar 2008 ?? Wireless industry grew at a CAGR of 68.8% over the corresponding period (excluding Mumbai & Maharashtra) Roll-out of GSM Services starting early 2009 is aimed at maintaining the growth momentum CAGR: 87.3% 4-3. TTSLs attractive growth prospects |
Names of companies, products, etc., contained in this document are the trademarks or registered trademarks of their respective organizations |