Edgar Filing: NTT DOCOMO INC

(Millions of yen)

Operating Revenues

Income before

Income Taxes

Net Income

Year ending March 31, 2007

Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

For the month of May 2006.

Commission File Number: 001-31221

Total number of pages: 89

NTT DoCoMo, Inc.

(Translation of registrant’s name into English)

Sanno Park Tower 11-1, Nagata-cho 2-chome

Chiyoda-ku, Tokyo 100-6150

Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F x Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

Information furnished in this form:


1.		Earnings release dated April 28, 2006 announcing the company’s results for the year ended March 31, 2006.
2.		Materials presented in conjunction with the earnings release dated April 28, 2006 announcing the company’s results for the year ended March 31, 2006.

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 1, 2006	By:	/s/ YOSHIKIYO SAKAI
		Yoshikiyo Sakai Head of Investor Relations

3:00 P.M. JST, April 28, 2006

NTT DoCoMo, Inc.

Earnings Release for the Fiscal Year Ended March 31, 2006

Consolidated financial results of NTT DoCoMo, Inc. (the “Company”) and its subsidiaries (collectively “we” or “DoCoMo”) for the fiscal year ended March 31, 2006, are summarized as follows.

<< Highlights of Financial Results >>

•

For the fiscal year ended March 31, 2006, operating revenues were ¥4,765.9 billion (down 1.6% year-on-year), operating income was ¥832.6 billion (up 6.2% year-on-year), income before income taxes was ¥952.3 billion (down 26.1% year-on-year) and net income was ¥610.5 billion (down 18.3% year-on-year).

•

Earnings per share were ¥13,491.28 and EBITDA margin* was 33.7% (up 0.1 points year-on-year), and ROCE* was 17.2% (up 1.0 point year-on-year).

•

Operating revenues, operating income, income before income taxes and net income for the fiscal year ending March 31, 2007, are estimated to be ¥4,838.0 billion (up 1.5% year-on-year), ¥810.0 billion (down 2.7% year-on-year), ¥815.0 billion (down 14.4% year-on-year) and ¥488.0 billion (down 20.1% year-on-year), respectively.

Notes:

1.	Consolidated financial statements for the fiscal year ended March 31, 2006, in this release are unaudited.

2.	Amounts in this release are rounded, excluding non-consolidated financial statements, where amounts are truncated.

3.	With regard to the assumptions and other related matters concerning the forecasts of consolidated financial results for the fiscal year ending March 31, 2007, please refer to pages 9 and 10.

EBITDA and EBITDA margin, as we use them, are different from EBITDA as defined in Item 10(e) of Regulation S-K and may not be comparable to similarly titled measures used by other companies. For an explanation of our definition of EBITDA, see the reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP on page 44. See page 44 for the definition of ROCE.

<< Comment from Masao Nakamura, President and CEO >>

The customer-oriented management policy that we have been using since June 2004, when I assumed my current post as CEO, began to deliver visible results during the fiscal year ended March 31, 2006. Our cellular churn rate improved, dropping 0.24 points from the previous fiscal year to 0.77%, and we had the largest market share of net additional subscribers during the fiscal year ended March 31, 2006. With the brisk sales of our latest FOMA 902i/702i series handsets and the “Kids’ PHONE” designed to offer peace of mind for parents by increasing the safety of children, we are making favorable progress in the migration of subscribers to the FOMA network. As a consequence, operating income for the fiscal year ended March 31, 2006 grew to ¥832.6 billion, up ¥48.5 billion year-on-year, beating our original guidance of ¥830.0 billion.

Going forward, we will strive to reinforce our core business more than ever by taking comprehensive measures to improve our offerings, including the enhancement of our handset lineup, improvement of network quality, providing customer-oriented billing plans, and reinforcement of after-sales support. At the same time, to promote sustainable growth for the future, we will seek new revenue sources by entering the credit payment business—a market with great prospects for future growth, especially in the area of small amount transactions, expanding international service revenues by adding more roaming destinations and compatible handset models, and further growing i-mode revenues leveraging “i-channel” and other services. The credit payment service, in particular, is expected to accelerate our efforts to transform cellular services into a “lifestyle infrastructure”. As a first step toward this goal, we recently commenced the “DCMX mini” consumer credit service, which offers a monthly credit line of ¥10,000. Users can use this service easily by applying through an i-mode site. In May 2006, we plan to start receiving applications for another new credit service, dubbed “DCMX”, which can offer higher credit lines, to provide mobile phone-based credit payment services on a full scale basis.

Although the business environment surrounding us is subject to constant change, we will always place customers at the center of our considerations, endeavor to improve every aspect of our services and aim to solidify our business foundation thereby.

<< Business Results and Financial Position >>


<Results of operations>	Billions of yen
	(UNAUDITED) Year ended March 31, 2006			Year ended March 31, 2005			Increase (Decrease)
Operating revenues	¥	4,765.9		¥	4,844.6		¥	(78.7	)	(1.6	%)
Operating expenses		3,933.2			4,060.4			(127.2	)	(3.1	)

Operating income		832.6			784.2			48.5		6.2
Other income (expense)		119.7			504.1			(384.4	)	(76.3	)

Income before income taxes		952.3			1,288.2			(335.9	)	(26.1	)
Income taxes		341.4			527.7			(186.3	)	(35.3	)
Equity in net losses of affiliates		(0.4	)		(12.9	)		12.5		—
Minority interests in consolidated subsidiaries		(0.1	)		(0.1	)		(0.0	)	—

Net income	¥	610.5		¥	747.6		¥	(137.1	)	(18.3	%)

1.	Business Overview

(1)

Operating revenues totaled ¥4,765.9 billion (down 1.6% year-on-year).

•

Cellular (FOMA+mova) services revenues increased to ¥4,158.1 billion (up 0.3% year-on-year). Although we had a decline in ARPU resulting from the amendment of our billing plans, cellular (FOMA+mova) services revenues increased due to the acquisition of new subscribers and lowered churn rate driven by our customer-oriented measures such as reinforcement of handset lineup and services, improvement of network quality, and further improvement of after-sales services.

•

Voice revenues from FOMA services increased to ¥1,169.9 billion (up 127.3% year-on-year) and packet communications revenues from FOMA services increased to ¥613.3 billion (up 135.3% year-on-year) owing to a significant increase in the number of FOMA services subscribers to 23.46 million (up 104.0% year-on-year), which resulted from improvement of network quality and strong sales of new handsets such as the “902i” and “702i” series and the “Kids’ PHONE” designed for children’s safety.

•

Although the sales of handsets related to the migration of subscribers from mova services to FOMA services were continuously strong, revenues from equipment sales decreased to ¥470.0 billion (down 14.2% year-on-year) due to a decrease in the total number of handsets sold.


<Breakdown of operating revenues>	Billions of yen
	(UNAUDITED) Year ended March 31, 2006		Year ended March 31, 2005		Increase (Decrease)
Wireless services	¥	4,295.9	¥	4,296.5	¥	(0.7	)	(0.0	%)
Cellular (FOMA+mova) services revenues (i)		4,158.1		4,147.0		11.2		0.3
- Voice revenues (ii)		3,038.7		3,086.3		(47.6	)	(1.5	)
Including: FOMA services		1,169.9		514.7		655.2		127.3
- Packet communications revenues		1,119.5		1,060.7		58.8		5.5
Including: FOMA services		613.3		260.7		352.6		135.3
PHS services revenues		40.9		60.3		(19.3	)	(32.1	)
Other revenues (i)		96.8		89.3		7.5		8.4
Equipment sales		470.0		548.1		(78.1	)	(14.2	)

Total operating revenues	¥	4,765.9	¥	4,844.6	¥	(78.7	)	(1.6	%)

Notes:

(i)

For periods beginning after March 31, 2005, Quickcast services revenues, which were presented separately in the past, are included in “Other revenues,” and international services revenues, which were previously included in “Other revenues,” are included in “Cellular (FOMA+mova) services revenues” and the results for the year ended March 31, 2005 are restated to confirm to the presentation for the year ended March 31, 2006. However, international services revenues related to FOMA services are not included in FOMA services revenues for the year ended March 31, 2005 because such information was not previously maintained.

(ii)

Voice revenues include data communications revenues through circuit switching system.

(2)

Operating expenses were ¥3,933.2 billion (down 3.1% year-on-year).

•

Personnel expenses decreased to ¥250.3 billion (down 0.5% year-on-year). The number of employees was 21,646 as of March 31, 2006.

•

Non-personnel expenses decreased to ¥2,484.8 billion (down 2.1% year-on-year) due to a decrease in equipment-sales-related expenses, such as commissions paid to agents, reflecting a decrease in the number of handsets sold.

•

Depreciation and amortization expenses increased by 0.2% year-on-year to ¥737.1 billion due to the effect of shortened useful lives of assets associated with the renewal of IT systems.

•

Impairment loss decreased to ¥1.1 billion (down 98.2% year-on-year), which represents the minimum maintenance capital expenditures made during the year ended March 31, 2006 for our PHS services, following our write-down of the entire carrying value of the assets related to our PHS business during the year ended March 31, 2005. We plan to terminate our PHS business during the three months ending December 31, 2007.


<Breakdown of operating expenses>	Billions of yen
	(UNAUDITED) Year ended March 31, 2006		Year ended March 31, 2005		Increase (Decrease)
Personnel expenses	¥	250.3	¥	251.4	¥	(1.1	)	(0.5	%)
Non-personnel expenses		2,484.8		2,539.2		(54.4	)	(2.1	)
Depreciation and amortization		737.1		735.4		1.6		0.2
Impairment loss		1.1		60.4		(59.3	)	(98.2	)
Loss on disposal of property, plant and equipment and intangible assets		54.7		65.5		(10.8	)	(16.4	)
Communication network charges		368.5		372.4		(3.9	)	(1.1	)
Taxes and public dues		36.7		36.1		0.7		1.9

Total operating expenses	¥	3,933.2	¥	4,060.4	¥	(127.2	)	(3.1	%)

(3)

Operating income increased to ¥832.6 billion (up 6.2% year-on-year). Income before income taxes decreased by 26.1% year-on-year to ¥952.3 billion mainly due to the fact that gains on sale of Hutchison 3G UK Holdings Limited shares (¥62.0 billion) and of KPN Mobile N.V. shares (¥40.0 billion) during the year ended March 31, 2006 were less than the gain on sale of AT&T Wireless Services, Inc. (“AT&T Wireless”) shares of ¥501.8 billion during the year ended March 31, 2005.

(4)

Net income was ¥610.5 billion (down 18.3% year-on-year).

2.	Segment Information

(1)

Mobile phone business

Operating revenues were ¥4,683.0 billion and operating income was ¥844.4 billion.

•

Cellular (FOMA) services

–

In and after November 2005, we released the “FOMA 902i” series handsets as our high-end models, which are compatible with the “PushTalk,” walkie-talkie-style communication service that allows multiple users to speak simultaneously. We also released the “FOMA 702i” series handsets, which feature attractive designs by collaborations with creators, in and after February 2006 as our standard models. To meet diversified needs of customers, we enhanced our handset lineup by releasing the “FOMA P901iTV” handset, with which users can watch the newly launched digital terrestrial broadcastings for mobile phones and terminals; the Kids’ PHONE “FOMA SA800i,” which is equipped with security alarm and global positioning system (GPS) function under the concept of children’s safety and ease of use; and an ecological handset, “FOMA N701iECO,” using bioplastic reinforced with kenaf fiber in March 2006. Beginning March 1, 2006, all new FOMA billing plans offer the option of unlimited i-mode packet communications for a flat monthly rate named “pake-hodai.” The number of FOMA services subscribers surpassed 20 million in December 2005 and increased to 23.46 million as of March 31, 2006.

–

Voice ARPU, packet ARPU and aggregate ARPU of cellular (FOMA) services were ¥5,680, ¥3,020 and ¥8,700, respectively.

•

Cellular (mova) services

–

We released the “mova N506iS II” handset, which focuses on ease of use and viewability, and enables users to talk and to browse i-mode sites and e-mails with the clamshell body closed. Due to continuous progress in the migration of subscribers from mova services to FOMA services, the number of mova services subscribers decreased to 27.68 million as of March 31, 2006.

–

Voice ARPU, i-mode ARPU and aggregate ARPU of cellular (mova) services were ¥4,680, ¥1,290 and ¥5,970, respectively.

–

In both FOMA and mova services, we launched new simpler and easier-to-understand billing plans, and upgraded the “Ichinen Discount” by providing our long-term subscribers with further discount rates in November 2005. Starting December 1, 2005, we enhanced the existing “Family Discount” by launching the “Fami-wari Wide” discount plan for qualified subscribers. We also introduced the “Fami-wari Wide Limit” plan, which limits calling and packet communications charges at a value set in advance by a subscriber in March 2006. In addition, we launched various initiatives aimed at enhancing the convenience for our customers, including the launch of a service which allows our new subscribers to choose the last four digits of their phone numbers in February 2006. The aggregate number of the FOMA and mova services subscribers surpassed 50 million in November 2005 and increased to 51.14 million as of March 31, 2006.

–

Voice ARPU, packet ARPU and aggregate ARPU of cellular (FOMA+mova) services were ¥5,030, ¥1,880 and ¥6,910, respectively.

–

Churn rate for cellular (FOMA+mova) services for the three months ended March 31, 2006 and the year ended March 31, 2006 was 0.75% and 0.77%, improvement of 0.21 points and 0.24 points compared to the same periods of the prior fiscal year, respectively.

•

i-mode services

–

In September 2005, we launched the “i-channel” service, which automatically pushes various latest information such as news and weather forecasts to a compatible handset’s standby screen as scrolling ticker, and the number of the subscribers surpassed 2 million in March 2006. Toward promotion of “Osaifu-Keitai*” usage, we launched the new “iD” credit card brand for card issuers, which enables a user to make speedy payments, simply by holding the handset against dedicated reader/writers at stores, in December 2005. Furthermore, we agreed with our strategic partners to introduce “iD” credit card payment service in places such as convenience stores and taxis . The number of subscribers using i-mode-FeliCa compatible handsets surpassed 10 million in January 2006 and reached 11.80 million as of March 31, 2006. The number of i-mode services subscribers reached 46.36 million as of March 31, 2006.

–

As for global development, starting from May 2005, the eight overseas i-mode alliance carriers jointly procure i-mode compatible GSM handsets to lower procurement costs. As of March 31, 2006, i-mode services have been rolled out in 15 countries and areas including Japan, and the aggregate number of cellular service subscribers of all the carriers which participate in the i-mode service alliance exceeded 250 million.

“Osaifu-Keitai” refers to mobile phones equipped with a contactless IC chip, as well as the useful function and services enabled by the IC chip. With this function, a mobile phone can be utilized as an electronic wallet, a credit card, an electronic ticket, a membership card, an airline ticket, and more.

•

International services

–

To further improve the convenience of our subscribers, we allow our customers to apply allowances, which are included in charges such as the base monthly charge, toward international services charges from June 1, 2005. We reduced charges for an international dialing service, “WORLD CALL,” and extended the “Yu Yu Call” discounts, which provide subscribers with discounted charges for calls to designated numbers, to include the international dialing charges beginning March 1, 2006. In July 2005, we launched an international multimedia messaging service (MMS) which enables i-mode users to exchange text messages with images with MMS users of foreign carriers, and we also established the first overseas service counter, “DoCoMo WORLD COUNTER,” in Hawaii. As of March 31, 2006, we expanded the service area of international roaming-out services for voice calls and Short Messaging Service (SMS) to 132 countries and areas; for packet communications to 69 countries and areas; and for videophone calls to 23 countries and areas.

Note:

ARPU: Average monthly revenue per unit

Average monthly revenue per unit, or ARPU, is used to measure average monthly operating revenues attributable to designated services on a per user basis. ARPU is calculated by dividing various revenue items included in operating revenues from our wireless services, such as monthly charges, voice transmission charges and packet transmission charges, from designated services which are incurred consistently each month, by number of active subscribers to the relevant services. Accordingly, the calculation of ARPU excludes revenues that are not representative of monthly average usage such as activation fees. We believe that our ARPU figures provide useful information regarding the average usage of our subscribers. The revenue items included in the numerators of our ARPU figures are based on our U.S. GAAP results of operations. This definition applies to all ARPU figures hereinafter.

See page 43 for the details of the calculation methods.


<Number of subscribers by services>	Thousand subscribers
	March 31, 2006	March 31, 2005	Increase (Decrease)
Cellular (FOMA) services	23,463	11,501	11,963		104.0	%
Cellular (mova) services	27,680	37,324	(9,644	)	(25.8	)
i-mode services	46,360	44,021	2,339		5.3

Note:

(i)

Number of i-mode subscribers as of March 31, 2006 = Cellular (FOMA) i-mode subscribers (22,914 thousand) + Cellular (mova) i-mode subscribers (23,446 thousand)

(ii)

Number of i-mode subscribers as of March 31, 2005 = Cellular (FOMA) i-mode subscribers (11,353 thousand) + Cellular (mova) i-mode subscribers (32,667 thousand)


<Operating results>	Billions of yen
	(UNAUDITED) Year ended March 31, 2006		Year ended March 31, 2005		Increase (Decrease)
Mobile phone business operating revenues	¥	4,683.0	¥	4,755.8	¥	(72.8	)	(1.5	%)
Mobile phone business operating income		844.4		875.4		(30.9	)	(3.5	)

Note:

For periods beginning after March 31, 2005, international services, which were previously included in “Miscellaneous businesses,” are included in “Mobile phone business.” As a result thereof, certain reclassifications are made to the operating results for the year ended March 31, 2005.

(2)	PHS business

Operating revenues were ¥41.7 billion and operating loss was ¥9.5 billion.

•

In order to concentrate our business resources on FOMA services, we ceased accepting new PHS subscriptions on April 30, 2005 and plan to terminate PHS services during the three months ending December 31, 2007. The actual date of the termination will be determined while monitoring the usage trends of the current subscribers.

•

PHS ARPU was ¥3,280.

Note:

See page 43 for the details of the ARPU calculation methods.


<Number of subscribers>	Thousand subscribers
	March 31, 2006			March 31, 2005			Increase (Decrease)
PHS services		771			1,314			(543	)	(41.3	%)

<Operating results>	Billions of yen
	(UNAUDITED) Year ended March 31, 2006			Year ended March 31, 2005			Increase (Decrease)
PHS business operating revenues	¥	41.7		¥	63.1		¥	(21.4	)	(33.8	%)
PHS business operating loss		(9.5	)		(85.9	)		76.4		—

(3)

Miscellaneous businesses

Operating revenues were ¥41.1 billion and operating loss was ¥2.3 billion.

•

For our public wireless LAN service, in addition to our “Mzone” service, we launched a plan named “U public wireless LAN course” as a part of “mopera U” service, our internet access service for FOMA subscribers, in June 2005. In July 2005 and March 2006, in the aim to economically and efficiently roll out wireless LAN areas, we entered into agreements with Nippon Telegraph and Telephone East Corporation and three other companies, pursuant to which NTT Broadband Platform, Inc. undertake the ownership and operation of the shared wireless LAN base stations. In February 2006, we additionally began to support IEEE802.11a/g standards, which offer high-speed data communications up to 54Mbps. As of March 31, 2006, the number of our domestic hot spots increased to 1,057.

•

In April 2005, considering the continuous decline in the number of Quickcast services subscribers, we decided to terminate the services on March 31, 2007.


<Operating results>	Billions of yen
	(UNAUDITED) Year ended March 31, 2006			Year ended March 31, 2005			Increase (Decrease)
Miscellaneous businesses operating revenues	¥	41.1		¥	25.7		¥	15.4	60.0	%
Miscellaneous businesses operating loss		(2.3	)		(5.3	)		3.0	—

Note:

For periods beginning after March 31, 2005, Quickcast business, which was presented separately in past releases, is included in “Miscellaneous businesses.” As a result thereof, certain reclassifications are made to the operating results for the year ended March 31, 2005.

3.	Capital Expenditures

Total capital expenditures were ¥887.1 billion.

•

We expanded the coverage areas of FOMA services, including a rollout of “FOMA Plus Area,” which enables calls in mountainous areas, where previously FOMA handsets could not make connections; improved network quality; reinforced our FOMA network to meet the increase in demand; and constructed networks and equipment to provide new services, such as our “PushTalk” and “i-channel.” On the other hand, we continued our efforts to make capital expenditures more efficient and less costly by saving on equipment purchase costs and improving the design and construction process. Total capital expenditures during the year ended March 31, 2006 increased by 3.0% year-on-year due to the accelerated roll out of FOMA base stations for reinforcement of our competitiveness prior to the introduction of the mobile number portability system.


<Breakdown of capital expenditures>	Billions of yen
	(UNAUDITED) Year ended March 31, 2006		Year ended March 31, 2005		Increase (Decrease)
Mobile phone business	¥	749.5	¥	696.6	¥	52.8		7.6	%
PHS business		1.1		4.8		(3.8	)	(77.9	)
Other (including information systems)		136.6		160.0		(23.5	)	(14.7	)

Total capital expenditures	¥	887.1	¥	861.5	¥	25.6		3.0	%

Note:

For periods beginning after March 31, 2005, capital expenditures for Quickcast business, which were presented separately in past releases, are included in “Other (including information systems).” As a result thereof, certain reclassifications are made to the capital expenditures for the year ended March 31, 2005.

4.	Cash Flow Conditions

•

Net cash provided by operating activities was ¥1,610.9 billion (up 36.3% year-on-year). Net cash provided by operating activities increased mainly owing to a decrease in the payment of income taxes, which was ¥541.7 billion in the prior fiscal year, to ¥182.9 billion and refund of income taxes of ¥93.1 billion. The decrease in the income tax payment and the refund of income taxes were mainly due to realization of deferred tax assets from the impairment of our investment in AT&T Wireless in connection with the sale of our AT&T Wireless shares in the prior fiscal year.

•

Net cash used in investing activities increased to ¥951.1 billion (up 64.5% year-on-year). Proceeds from the sale of non-current investments, which were ¥725.9 billion in the prior year, when we sold AT&T Wireless shares, decreased to ¥25.1 billion. In addition, purchases of non-current investments increased to ¥292.6 billion resulting from our investments in companies such as Sumitomo Mitsui Card Company, Limited and KT Freetel Co., Ltd. Changes in investments for cash management purposes, which were outflows of ¥400.3 billion in the prior fiscal year, were inflows of ¥149.0 billion.

•

Net cash used in financing activities was ¥590.6 billion (down 12.1% year-on-year). Net cash used in financing activities decreased mainly due to a decrease in payments to acquire treasury stock.

•

Free cash flows were ¥659.9 billion (up 9.4% year-on-year). Free cash flows excluding changes in investments for cash management purposes* were ¥510.9 billion (down 49.1% year-on-year).

•

Market equity ratio* declined due to a decrease in the market value of total share capital. Our debt ratio, debt payout period and interest coverage ratio improved mainly from an increase in shareholders’ equity, a decrease in interest bearing liabilities and an increase in net cash provided by operating activities.


<Statements of cash flows>	Billions of yen
	(UNAUDITED) Year ended March 31, 2006			Year ended March 31, 2005			Increase (Decrease)
Net cash provided by operating activities	¥	1,610.9		¥	1,181.6		¥	429.4		36.3	%
Net cash used in investing activities		(951.1	)		(578.3	)		(372.7	)	—
Net cash used in financing activities		(590.6	)		(672.0	)		81.4		—
Free cash flows		659.9			603.3			56.6		9.4
Adjusted free cash flows*		510.9			1,003.6			(492.7	)	(49.1	)

<Financial measures>	Year ended March 31, 2006			Year ended March 31, 2005			Increase (Decrease)
Equity ratio		63.7	%		63.7	%				(0.0 points	)
Market equity ratio*		128.0	%		142.8	%				(14.8 points	)
Debt ratio		16.4	%		19.5	%				(3.1 points	)
Debt payout period (years)		0.5			0.8					(0.3	)
Interest coverage ratio		185.9			114.5					71.4

Notes:

•

Free cash flows = Net cash provided by (used in) operating activities + Net cash provided by (used in) investing activities

•

Adjusted free cash flows exclude the effects of irregular factors and changes in investments for cash management purposes.

•

Changes in investments for cash management purposes = Changes by purchases, redemptions and disposal of financial instruments for cash management purposes with original maturities of longer than 3 months.

•

Equity ratio = Shareholders’ equity / Total assets

•

Market equity ratio* = Market value of total share capital / Total assets

•

Debt ratio = Interest bearing liabilities / (Shareholders’ equity + Interest bearing liabilities)

•

Debt payout period (years) = Interest bearing liabilities / Net cash provided by (used in) operating activities

•

Interest coverage ratio = Net cash provided by (used in) operating activities / Interest expense**

Interest expense is cash interest paid, which is disclosed in “Supplemental disclosures of cash flow information” for consolidated statements of cash flows on page 20.

See the reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP on page 44.

5.	Profit Distribution

•

The Company plans to pay the total dividend of ¥4,000 per share (including ¥2,000 interim dividend) for the year ended March 31, 2006.

<<Prospects for the Fiscal Year Ending March 31, 2007>>

Competition in the Japanese cellular phone market is expected to become increasingly fierce in the future, with the introduction of mobile number portability and market entry by new entrants scheduled for this fiscal year ending March 31, 2007 in addition to the increase of cellular phone penetration rates and diversifying user needs.

Under these market conditions, while the downtrend in our average revenue per unit (ARPU) is projected to continue, we are expecting an increase in operating revenues for the fiscal year ending March 31, 2007 due mainly to the growth in our cellular subscriber base, and equipment sales revenues, which we plan to achieve by reinforcing our comprehensive service offerings from a customer-centric viewpoint. Operating income, on the other hand, is expected to decline because of a projected increase in equipment-sales-related expenses resulting from the progress in the migration of subscribers to the FOMA network, and growth in network-related capital expenditures aimed at strengthening our competitiveness.

Against this backdrop, we will strive even harder to strengthen our core business, and at the same time, work to create new revenue sources by linking our cellular phones with the services provided by related external partners, such as our new credit payment service “DCMX” provided via our “iD” platform, with the goal to transform cellular phones into convenient multifunctional tools for everyday life and business.

We will also continue our efforts to enhance the efficiency of our operations by reviewing our business process to solidify our managerial foundation, and try to maximize our enterprise value thereby.


	Billions of yen
	Year ending March 31, 2007 (Forecasts)			Year ended March 31, 2006 (Actual results)			Increase (Decrease)
Operating revenues	¥	4,838.0		¥	4,765.9		¥	72.1		1.5	%
Operating income		810.0			832.6			(22.6	)	(2.7	%)
Income before income taxes		815.0			952.3			(137.3	)	(14.4	%)
Net income		488.0			610.5			(122.5	)	(20.1	%)

Capital expenditures		905.0			887.1			17.9		2.0	%
Adjusted free cash flows *		280.0			510.9			(230.9	)	(45.2	%)
EBITDA *		1,601.0			1,606.8			(5.8	)	(0.4	%)
EBITDA margin *		33.1	%		33.7	%				(0.6poin	ts)
ROCE *		16.5	%		17.2	%				(0.7poin	ts)
ROCE after tax effect *		9.8	%		10.1	%				(0.3poin	ts)

See the reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP on Page 44.

The financial forecasts for the year ending March 31, 2007, were based on the forecasts of the following operation data.


	March 31, 2007 (Forecasts)		March 31, 2006 (Actual results)		Increase (Decrease)
Number of cellular (FOMA) services subscribers (thousands)		35,000		23,463		11,537		49.2	%
Number of cellular (mova) services subscribers (thousands)		17,900		27,680		(9,780	)	(35.3	)
Number of i-mode subscribers (thousands)		47,900		46,360		1,540		3.3
Number of PHS subscribers (thousands)		320		771		(451	)	(58.5	)
Aggregate ARPU* (cellular (FOMA+mova) services)	¥	6,690	¥	6,910	¥	(220	)	(3.2	)
Voice ARPU		4,760		5,030		(270	)	(5.4	)
Packet ARPU		1,930		1,880		50		2.7

Notes:

Number of i-mode subscribers includes numbers of cellular (FOMA) and cellular (mova) i-mode subscribers.

See page 43 for the details of ARPU calculation methods.

•

The Company expects to pay a total annual dividend of ¥4,000 per share for the year ending March 31, 2007, consisting of an interim dividend of ¥2,000 per share and a year-end dividend of ¥2,000 per share.

EBITDA and EBITDA margin, as we use them, are different from EBITDA as defined in Item 10(e) of Regulation S-K and may not be comparable to similarly titled measures used by other companies. For an explanation of our definition of EBITDA, EBITDA margin, free cash flows, adjusted free cash flows, ROCE and ROCE after tax effect, see the reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP on the page 44.

Special Note Regarding Forward-Looking Statements

This Earnings Release 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 management’s 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:

•

As competition in the market is expected to become more fierce due to changes in the business environment caused by the introduction of mobile number portability and new market entrants, competition from other cellular service providers or other technologies could limit our acquisition of new subscribers, retention of existing subscribers and average revenue per unit (ARPU), or may lead to an increase in our costs and expenses.

•

The new services and usage patterns introduced by our corporate group may not develop as planned, which could limit our growth.

•

The introduction or change of various laws or regulations or the application of such laws and regulations to our corporate group may adversely affect our financial condition and results of operations.

•

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.

•

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.

•

Our domestic and international investments, alliances and collaborations may not produce the returns or provide the opportunities we expect.

•

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 missing 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.

•

Social problems that could be caused by misuse or misunderstanding of our products and services may adversely affect our credibility or corporate image.

•

Inadequate handling of subscriber information by our corporate group or contractors may adversely affect our credibility or corporate image.

•

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.

•

Earthquakes, power shortages, malfunctioning of equipment, and 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.

•

Concerns about wireless telecommunications health risks may adversely affect our financial condition and results of operations.

•

Our parent company, Nippon Telegraph and Telephone Corporation (NTT), could exercise influence that may not be in the interests of our other shareholders.

“Kids’ PHONE”, “FOMA”, “mova”, “i-channel”, “i-mode”, “DCMX”, “Quickcast”, “PushTalk”, “pake-hodai”, “Fami-wari Wide”, “Fami-wari Wide Limit”, “Osaifu-Keitai”, “iD”, “WORLD CALL”, “Yu Yu Call”, “WORLD WING”, “Mzone”, and “mopera U” are trademarks or registered trademarks of NTT DoCoMo, Inc. in Japan. Other products or company names shown in this Earnings Release are trademarks or registered trademarks.


Consolidated Financial Statements		April 28, 2006
For the Fiscal Year Ended March 31, 2006		[U.S. GAAP]


Name of registrant:		NTT DoCoMo, Inc.
Code No.:		9437
Stock exchange on which the Company’s shares are listed:		Tokyo Stock Exchange-First Section
Address of principal executive office:		Tokyo, Japan
(URL http://www.nttdocomo.co.jp/)
Representative:		Masao Nakamura, Representative Director, President and Chief Executive Officer
Contact:		Masahiko Yamada, Senior Manager, General Affairs Department / TEL +81-3-5156-1111
Date of the meeting of the Board of Directors for approval of the consolidated financial statements:		April 28, 2006
Name of Parent Company:		Nippon Telegraph and Telephone Corporation (Code No. 9432)
Percentage of ownership interest in NTT DoCoMo, Inc. held by parent company:		62.2%
Adoption of US GAAP:		Yes

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2006 (April 1, 2005 - March 31, 2006)

(1)	Consolidated Results of Operations


Amounts are rounded off to the nearest 1 million yen.


	(Millions of yen, except per share amounts)
	Operating Revenues			Operating Income			Income before Income Taxes
Year ended March 31, 2006	4,765,872	(1.6	%)	832,639	6.2	%	952,303	(26.1	%)
Year ended March 31, 2005	4,844,610	(4.0	%)	784,166	(28.9	%)	1,288,221	17.0	%


	Net Income			Basic Earnings per Share			Diluted Earnings per Share			ROE (Ratio of Net Income to Shareholders’ Equity)		ROA (Ratio of Income before Income Taxes to Total Assets)		Income before Income Taxes Margin (Ratio of Income before Income Taxes to Operating Revenues)
Year ended March 31, 2006	610,481	(18.3	%)	13,491.28	(yen	)	13,491.28	(yen	)	15.3	%	15.2	%	20.0	%
Year ended March 31, 2005	747,564	15.0	%	15,771.01	(yen	)	15,771.01	(yen	)	19.6	%	20.8	%	26.6	%


Notes:	1.	Equity in net losses of affiliated companies:	For the fiscal year ended March 31, 2006: For the fiscal year ended March 31, 2005:	(364) million yen (12,886) million yen
	2.	Change in accounting policy:	Yes (Reclassification of segment information)
	3.	The weighted average number of shares outstanding:	For the fiscal year ended March 31, 2006:	45,250,031 shares
			For the fiscal year ended March 31, 2005:	47,401,154 shares
	4.	Percentages for operating revenues, operating income, income before income taxes and net income in the above tables represent year-on-year changes.


(2) Consolidated Financial Position


	(Millions of yen, except per share amounts)
	Total Assets	Shareholders’ Equity	Equity Ratio (Ratio of Shareholders’ Equity to Total Assets)		Shareholders’ Equity per Share
March 31, 2006	6,365,257	4,052,017	63.7	%	91,109.33	(yen)
March 31, 2005	6,136,521	3,907,932	63.7	%	84,455.27	(yen)

Note:

The number of shares outstanding as of March 31, 2006, and 2005, were 44,474,227 shares and 46,272,208 shares, respectively.


(3) Consolidated Cash Flows


	(Millions of yen)
	Cash Flows from Operating Activities	Cash Flows from Investing Activities		Cash Flows from Financing Activities		Cash and Cash Equivalents at Fiscal Year End
Year ended March 31, 2006	1,610,941	(951,077	)	(590,621	)	840,724
Year ended March 31, 2005	1,181,585	(578,329	)	(672,039	)	769,952


(4)	Number of consolidated companies and companies accounted for using the equity method
	The number of consolidated subsidiaries:		99
	The number of unconsolidated subsidiaries accounted for using the equity method:		0
	The number of affiliated companies accounted for using the equity method:		13

(5)	Change of reporting entities
	The number of consolidated companies added:	14 The number of consolidated companies removed:		3
	The number of companies on equity method added:	7 The number of companies on equity method removed:		9

Note: Six companies which were accounted for using the equity method in previous fiscal year are consolidated from this fiscal year.

2. Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2007 (April 1, 2006 - March 31, 2007)

(Reference)

Expected Earnings per Share: 10,972.65 yen

Note:

With regard to the above forecasts, please refer to pages 9 and 10.

* Consolidated financial statements are unaudited.

<< Condition of the Corporate Group >>

NTT DoCoMo, Inc. primarily engages in mobile telecommunications services as a member of the NTT group, with Nippon Telegraph and Telephone Corporation (“NTT”) as the holding company.

The Company, its 99 subsidiaries and 13 affiliates constitute the NTT DoCoMo group (“DoCoMo group”), the largest mobile telecommunications services provider in Japan.

The business segments of the DoCoMo group and the corporate position of each group company are as follows.

[Business Segment Information]


Business				Main service lines
Mobile phone business				Cellular (FOMA) services, cellular (mova) services, packet communications services, international services, satellite mobile communications services, and sales of handsets and equipment for each service

PHS business				PHS services and sales of PHS handsets and equipment

Miscellaneous businesses				Wireless LAN services, radio paging (Quickcast) service and other miscellaneous businesses

Notes

(i)

For periods beginning after March 31, 2005, “Quickcast” business is included in “miscellaneous” businesses, and international businesses, which were previously included in “miscellaneous” businesses, are reclassified into “mobile phone” business.

(ii)

Quickcast services will be terminated on March 31, 2007, and we plan to terminate PHS services by the third quarter of fiscal 2007.

[Position of Each Group Company]

(1)

The Company engages in Mobile phone, PHS and other businesses in the Kanto-Koshinetsu region of Japan. The Company also provides nationwide services such as satellite mobile communications. The Company is solely responsible for DoCoMo group’s overall research and development activities in the area of mobile telecommunications business as well as the development of services and information processing systems. The Company provides the results of such research and development to its eight regional subsidiaries, each of which operates in one of eight regions in Japan (“DoCoMo Regional Subsidiaries”).

(2)	Each of the DoCoMo Regional Subsidiaries engages in Mobile phone (excluding satellite mobile communications services), PHS and other businesses in their respective regions.

(3)

Twenty-nine other subsidiaries of the Company, each of which is entrusted with certain services by the Company and/or DoCoMo Regional Subsidiaries, operate independently to maximize their expertise and efficiency. They are entrusted with part of the services provided by, or give assistance to, the Company and DoCoMo Regional Subsidiaries.

(4)	There are 62 other subsidiaries and 13 affiliates, including, among others, some overseas units established for the purpose of global expansion of the third-generation mobile communications system based on W-CDMA, and joint ventures set up to launch new business operations.

The following chart summarizes the above.

LOGO

<< Management Policies >>

1.	Basic Management Policies

Under the corporate philosophy of “creating a new world of communications culture,” DoCoMo aims to contribute to the realization of a rich and vigorous society by reinforcing its core business with a focus on popularizing FOMA services, and promoting mobile multimedia services by offering services that are useful for customers’ daily lives and businesses. It also seeks to maximize its corporate value in order to be greatly trusted and highly valued by its shareholders and customers.

2.	Medium- and Long-Term Management Strategies

The competition amongst carriers in the Japanese mobile communications market is expected to intensify even further due to increases in the market penetration rate, diversification of customer needs and the introduction of mobile number portability and market entry by new entrants during the this fiscal year. Under these circumstances, we plan to run our business focusing on the following three goals; (1) strengthen our core business even further, (2) create new revenue channels, and (3) facilitate cost reduction.

(1) Strengthening our core business

We aim to react swiftly and adequately to the diversifying needs of customers, and improve every aspect of our offerings, including our handsets, services, billing plans, service area quality and after-sales support to reinforce our comprehensive strength.

(2) Creation of new revenue sources

We will strive to expand our business domains pursuing the three key growth strategies of “multimedia,” “ubiquity” and “globalization”. Specifically, to further expand the use of i-mode and FOMA services, which enable the transmission of large amounts of data at high speeds, we plan to add more handsets tailored to user’s needs in our product lineup, and work to develop and provide a wide array of sophisticated non-voice services, including visual communications and video/text delivery services.

Around the summer of this year, we plan to launch a new High-Speed Downlink Packet Access (HSDPA) system to provide new services leveraging the higher packet transmission speeds offered by this system, in an effort to boost the usage of our cellular phones. We will also work to link our services with those offered by our partner companies through an active use of external interface capabilities embedded in cellular handsets, such as contactless IC chips, bar codes and infrared data transmission, with the goal to create new businesses which generate income independently of traffic income. Furthermore, as the arena of competition in mobile communications business expands to a global scale, we intend to enhance user’s convenience and increase our revenue opportunities by further enlarging the “i-mode” alliance and offering W-CDMA-based global handsets. Also, in view of global competition, we will widely look into opportunities for revenue growth, including the possibility of making investments in or forming alliances with not only telecommunications carriers, but also enterprises owning promising technologies as well as companies engaged in mobile communications-related peripheral businesses, while taking into consideration the overall synergies projected from such alliances.

(3) Efforts toward cost reduction

We will work to improve the efficiency of our operations by further cutting handset procurement and network costs, and making a more efficient allocation of sales commissions.

To keep abreast with and react dynamically to the intensified competition and changes in the market, we plan to advance our cellular services placing customers in the center of our strategies to provide innovative solutions that can contribute to our users’ safety and security, as part of our continual efforts to transform cellular phones into convenient tools for everyday life and business.

3.	Basic Policies for Profit Distribution

Believing that providing adequate returns to shareholders is one of the most important issues in corporate management, the Company plans to pay dividends by taking into account its consolidated results and operating environment based on the principle of stable dividend payments, while at the same time striving to strengthen its financial position and secure internal reserves. The Company will also continue to take a flexible approach regarding share repurchases in order to plow back profits to shareholders. The Company intends to keep the repurchased shares as treasury shares and in principle to limit the amount of such treasury shares to approximately 5% of its total issued shares, and will consider retiring any treasury shares held in excess of this limit around the end of the fiscal year or at other appropriate times. During the fiscal year ended March 31, 2006, based on an authorization by a resolution adopted at the Ordinary General Meetings of Shareholders, the Company repurchased 1,797,977 shares of its own common stock at an aggregate price of ¥300.1 billion, and cancelled 1,890,000 shares (or approximately 3.9% of total issued shares prior to cancellation) on March 31, 2006.

In addition, the Company will allocate internal reserves to active research and development efforts, capital expenditures and other investments in response to the rapidly changing market environment. The Company will endeavor to boost its corporate value by introducing new technologies, offering new services and expanding its global businesses through alliances with new partners.

No changes are planned for our dividend payment methods even after the enforcement of the new corporation law in Japan in May 2006: we plan to pay dividends twice a year, as interim and year-end dividends.

4.	Target Management Indicators

Now that the Japanese mobile telecommunications market has entered a period of stable growth, DoCoMo regards EBITDA margin* as an important management indicator, from the aspect of profitability, to further enhance its management effectiveness. DoCoMo also considers ROCE* an important management indicator in terms of efficiency in its invested capital (shareholders’ equity + interest bearing liabilities). DoCoMo will make its utmost efforts to achieve an EBITDA margin* of at least 35% and an ROCE* of at least 20% as its medium-term targets and attempt to maximize its corporate value.

Notes:

•

EBITDA margin* = EBITDA* / Operating revenues

•

EBITDA* = Operating income + Depreciation and amortization + Losses on sale or disposal of property, plant and equipment + Impairment loss

•

ROCE* = Operating income / (Shareholders’ equity + Interest bearing liabilities)

Shareholders’ equity and interest bearing liabilities are the average of the amounts as of March 31, 2005 and March 31, 2006

5.	Relationship with the Parent Company

(1)

Trade Name of the Parent Company, etc.

(As of March 31, 2006)



Parent company	Parent company’s ownership of voting rights		Securities exchanges where shares issued by the parent company are listed

Nippon Telegraph and Telephone Corporation	62.2	%	Tokyo Stock Exchange, Inc. (First Section) Osaka Stock Exchange, Co. Ltd. (First Section) Nagoya Stock Exchange, Inc. (First Section) Fukuoka Stock Exchange Sapporo Stock Exchange New York Stock Exchange London Stock Exchange

(2)

Positions of Listed Companies in the Corporate Group Led by the Parent Company

The corporate group led by our parent company, NTT, operates a wide array of telecommunications services, including local, long-distance, international, and mobile and data telecommunications services.

The Company operates independently within the NTT group, mainly in the field of mobile telecommunications. NTT, which currently owns 62.2% of the voting rights of the Company, can influence the managerial decisions of the Company by exercising its directorship rights as majority shareholder, although we conduct our day-to-day operations independently of NTT, based on our own decisions with our own managerial responsibility.

The Company and NTT concluded a contract for basic research and development conducted by NTT. Under the agreement, NTT offers services and benefits to the Company concerning basic research and development, and the Company pays compensation to NTT for such services and benefits. The Company and NTT also entered into a contract regarding group management and operations run by NTT. Under the agreement, NTT provides services and benefits regarding group management and operations to DoCoMo group, and the Company pays compensation to NTT for such services and benefits.

(3)

See page 24 for the Company’s transactions with NTT group companies

6.	Corporate Social Responsibility (CSR)

Due to the wide adoption and advancement of mobile communications services, cellular phones have become indispensable tools for people’s daily activities. The rapid growth in its uptake, on the other hand, has also caused some negative social problems, such as unwanted bulk emails and crimes involving the use of cellular handsets. Meanwhile, people’s concerns against earthquakes and other natural disasters as well as global environment have heightened in the recent years.

To address these issues, we have worked to improve the reliability of our communications facilities and network and reinforced countermeasures against disasters, strongly aware of our mission to fulfill our corporate social responsibility (CSR). As a part of our measures to tackle social problems resulting from the use of cellular phones, we have continuously worked to prevent unsolicited bulk emails, and responded to the issues addressed in the surveys and research programs conducted by the Mobile Society Research Institute. In addition, we have actively promoted various environmental conservation and social contribution activities on a continual basis, including the collection and recycling of used mobile phone handsets and accessories, saving on paper resources by offering an “e-billing service” which provides customers’ bills through our website or by e-mail message, the “DoCoMo Woods” forestation campaign, and encouraging our employees to take part in various community works as volunteers.

At DoCoMo group, we believe that it is our social mission to help shape a safer and more peaceful world. To realize this goal, we set forth “DoCoMo Anshin Mission” during the fiscal year ended March 31, 2006, under which the whole corporate group implemented various measures and promoted technical innovations in a comprehensive and unified approach.

The concrete actions undertaken under “DoCoMo Anshin Mission” include the following:

•

Introduced a mechanism to prevent mail-based spoofing, and reinforced measures against unwanted bulk emails by allowing the combined use of i-mode’s selective mail reception and selective mail rejection functions.

•

Held approximately 600 sessions of “DoCoMo Keitai Safety School” seminars in elementary, junior and senior high schools and local communities nationwide to provide children with tips on safe and proper phone usage manners.

•

Released FOMA SA800i “Kids’ PHONE” equipped with various safety functions so that parents can allow children to carry mobile phones with less concerns. At the same time, launched “imadoco search” locating service and “Kids’ i-menu” featuring content designed specifically for children.

•

To assist handicapped users to more actively participate in social activities, eliminated the handling charges previously required for “Hearty Discount” service subscribers when changing handset models or service contracts.

•

Released environment-friendly handset made of bio-plastic, FOMA N701iECO, as a part of our environment conservation initiatives.

•

To improve the convenience of “i-mode Disaster Message Board Service”, enabled users to register and confirm messages without the need to pay for packet communication charges. Also, added “registered mail transmission function”, which sends the message posted on the Message Board to pre-designated mail addresses, and enabled users to access and confirm the registered messages from abroad via i-mode.

<< Consolidated Financial Statements >>

1.	Consolidated Balance Sheets


	Millions of yen
	(UNAUDITED) March 31, 2006					March 31, 2005					Increase (Decrease)
ASSETS
Current assets:
Cash and cash equivalents	¥	840,724				¥	769,952				¥	70,772
Short-term investments		51,237					250,017					(198,780	)
Accounts receivable, net		595,097					612,397					(17,300	)
Inventories		229,523					156,426					73,097
Deferred tax assets		111,795					145,395					(33,600	)
Tax refunds receivable		—					92,869					(92,869	)
Prepaid expenses and other current assets		98,382					114,638					(16,256	)

Total current assets		1,926,758		30.3	%		2,141,694		34.9	%		(214,936	)

Property, plant and equipment:
Wireless telecommunications equipment		4,743,136					4,392,477					350,659
Buildings and structures		736,660					696,002					40,658
Tools, furniture and fixtures		610,759					589,302					21,457
Land		197,896					196,062					1,834
Construction in progress		134,240					103,648					30,592
Accumulated depreciation		(3,645,237	)				(3,295,062	)				(350,175	)

Total property, plant and equipment, net		2,777,454		43.6	%		2,682,429		43.7	%		95,025

Non-current investments and other assets:
Investments in affiliates		174,121					48,040					126,081
Marketable securities and other investments		357,824					243,062					114,762
Intangible assets, net		546,304					535,795					10,509
Goodwill		141,094					140,097					997
Other assets		264,982					164,323					100,659
Deferred tax assets		176,720					181,081					(4,361	)

Total non-current investments and other assets		1,661,045		26.1	%		1,312,398		21.4	%		348,647

Total assets	¥	6,365,257		100.0	%	¥	6,136,521		100.0	%	¥	228,736

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	¥	193,723				¥	150,304				¥	43,419
Short-term borrowings		152					—					152
Accounts payable, trade		808,136					706,088					102,048
Accrued payroll		41,799					41,851					(52	)
Accrued interest		1,264					1,510					(246	)
Accrued taxes on income		168,587					57,443					111,144
Other current liabilities		154,638					136,901					17,737

Total current liabilities		1,368,299		21.5	%		1,094,097		17.8	%		274,202

Long-term liabilities:
Long-term debt		598,530					798,219					(199,689	)
Employee benefits		135,511					138,674					(3,163	)
Other long-term liabilities		209,780					197,478					12,302

Total long-term liabilities		943,821		14.8	%		1,134,371		18.5	%		(190,550	)

Total liabilities		2,312,120		36.3	%		2,228,468		36.3	%		83,652

Minority interests in consolidated subsidiaries		1,120		0.0	%		121		0.0	%		999

Shareholders’ equity:
Common stock		949,680					949,680					—
Additional paid-in capital		1,311,013					1,311,013					—
Retained earnings		2,212,739					2,100,407					112,332
Accumulated other comprehensive income		26,781					57,609					(30,828	)
Treasury stock, at cost		(448,196	)				(510,777	)				62,581

Total shareholders’ equity		4,052,017		63.7	%		3,907,932		63.7	%		144,085

Total liabilities and shareholders’ equity	¥	6,365,257		100.0	%	¥	6,136,521		100.0	%	¥	228,736

2.	Consolidated Statements of Income and Comprehensive Income


	Millions of yen
	(UNAUDITED) Year ended March 31, 2006					Year ended March 31, 2005					Increase (Decrease)
Operating revenues:
Wireless services	¥	4,295,856				¥	4,296,537				¥	(681	)
Equipment sales		470,016					548,073					(78,057	)
Total operating revenues		4,765,872		100.0	%		4,844,610		100.0	%		(78,738	)

Operating expenses:
Cost of services (exclusive of items shown separately below)		746,099					740,423					5,676
Cost of equipment sold (exclusive of items shown separately below)		1,113,464					1,122,443					(8,979	)
Depreciation and amortization		737,066					735,423					1,643
Impairment loss		1,071					60,399					(59,328	)
Selling, general and administrative		1,335,533					1,401,756					(66,223	)
Total operating expenses		3,933,233		82.5	%		4,060,444		83.8	%		(127,211	)

Operating income		832,639		17.5	%		784,166		16.2	%		48,473

Other income (expense):
Interest expense		(8,420	)				(9,858	)				1,438
Interest income		4,659					1,957					2,702
Gain on sale of affiliate shares		61,962					501,781					(439,819	)
Gain on sale of other investments		40,088					—					40,088
Other, net		21,375					10,175					11,200
Total other income (expense)		119,664		2.5	%		504,055		10.4	%		(384,391	)

Income before income taxes		952,303		20.0	%		1,288,221		26.6	%		(335,918	)

Income taxes:
Current		293,707					192,124					101,583
Deferred		47,675					335,587					(287,912	)
Total income taxes		341,382		7.2	%		527,711		10.9	%		(186,329	)
Equity in net losses of affiliates		(364	)	(0.0	%)		(12,886	)	(0.3	%)		12,522
Minority interests in earnings of consolidated subsidiaries		(76	)	(0.0	%)		(60	)	(0.0	%)		(16	)

Net Income	¥	610,481		12.8	%	¥	747,564		15.4	%	¥	(137,083	)

Other comprehensive income (loss):
Unrealized holding gains on available-for-sale securities		7,662					9,220					(1,558	)
Net revaluation of financial instruments		121					(367	)				488
Foreign currency translation adjustment		(42,597	)				(32,670	)				(9,927	)
Minimum pension liability adjustment		3,986					71					3,915

Comprehensive income:	¥	579,653		12.2	%	¥	723,818		14.9	%	¥	(144,165	)

PER SHARE DATA
Weighted average common shares outstanding – basic and diluted (shares)		45,250,031					47,401,154					(2,151,123	)

Basic and diluted earnings per share (yen)	¥	13,491.28				¥	15,771.01				¥	(2,279.73	)

3.	Consolidated Statements of Shareholders’ Equity


	Millions of yen
	(UNAUDITED) Year ended March 31, 2006			Year ended March 31, 2005			Increase (Decrease)
Common stock:
At beginning of year	¥	949,680		¥	949,680		¥	—

At end of year		949,680			949,680			—

Additional paid-in capital:
At beginning of year		1,311,013			1,311,013			—

At end of year		1,311,013			1,311,013			—

Retained earnings:
At beginning of year		2,100,407			1,759,548			340,859
Cash dividends		(135,490	)		(95,334	)		(40,156	)
Retirement of treasury stock		(362,659	)		(311,371	)		(51,288	)
Net income		610,481			747,564			(137,083	)

At end of year		2,212,739			2,100,407			112,332

Accumulated other comprehensive income:
At beginning of year		57,609			81,355			(23,746	)
Unrealized holding gains on available-for-sale securities		7,662			9,220			(1,558	)
Net revaluation of financial instruments		121			(367	)		488
Foreign currency translation adjustment		(42,597	)		(32,670	)		(9,927	)
Minimum pension liability adjustment		3,986			71			3,915

At end of year		26,781			57,609			(30,828	)

Treasury stock, at cost:
At beginning of year		(510,777	)		(396,901	)		(113,876	)
Purchase of treasury stock		(300,078	)		(425,247	)		125,169
Retirement of treasury stock		362,659			311,371			51,288

At end of year		(448,196	)		(510,777	)		62,581

Total shareholders’ equity	¥	4,052,017		¥	3,907,932		¥	144,085

4.	Consolidated Statements of Cash Flows


	Millions of yen
	(UNAUDITED) Year ended March 31, 2006			Year ended March 31, 2005
I Cash flows from operating activities:
1. Net income	¥	610,481		¥	747,564
2. Adjustments to reconcile net income to net cash provided by operating activities—
(1) Depreciation and amortization		737,066			735,423
(2) Impairment loss		1,071			60,399
(3) Deferred taxes		49,101			334,095
(4) Loss on sale or disposal of property, plant and equipment		36,000			45,673
(5) Gain on sale of affiliate shares		(61,962	)		(501,781	)
(6) Gain on sale of other investments		(40,088	)		—
(7) Expense associated with sale of other investments		14,062			—
(8) Equity in net (gains) losses of affiliates		(1,289	)		14,378
(9) Minority interests in earnings of consolidated subsidiaries		76			60
(10) Changes in current assets and liabilities:
Decrease in accounts receivable, trade, net		17,722			4,090
Increase in inventories		(73,094	)		(29,157	)
Decrease (increase) in tax refunds receivable		92,869			(92,869	)
Increase in accounts payable, trade		45,108			89,464
Increase (decrease) in accrued taxes on income		111,141			(260,585	)
Increase in other current liabilities		17,641			12,531
(Decrease) increase in liability for employee benefits		(3,378	)		4,720
Increase in other long-term liabilities		24,725			1,295
Other, net		33,689			16,285

Net cash provided by operating activities		1,610,941			1,181,585

II Cash flows from investing activities:
1. Purchases of property, plant and equipment		(638,590	)		(668,413	)
2. Purchases of intangible and other assets		(195,277	)		(242,668	)
3. Purchases of non-current investments		(292,556	)		(176,017	)
4. Proceeds from sale of non-current investments		25,142			725,905
5. Purchase of short-term investments		(252,474	)		(361,297	)
6. Redemption of short-term investments		501,433			111,521
7. Collection of loan advances		229			40,015
8. Long-term bailment for consumption to a related party		(100,000	)		—
9. Other, net		1,016			(7,375	)

Net cash used in investing activities		(951,077	)		(578,329	)

III Cash flows from financing activities:
1. Repayment of long-term debt		(150,304	)		(146,709	)
2. Proceeds from short-term borrowings		27,002			87,500
3. Repayment of short-term borrowings		(27,010	)		(87,500	)
4. Principal payments under capital lease obligations		(4,740	)		(4,748	)
5. Payments to acquire treasury stock		(300,078	)		(425,247	)
6. Dividends paid		(135,490	)		(95,334	)
7. Other, net		(1	)		(1	)

Net cash used in financing activities		(590,621	)		(672,039	)

IV Effect of exchange rate changes on cash and cash equivalents		1,529			705

V Net increase (decrease) in cash and cash equivalents		70,772			(68,078	)
VI Cash and cash equivalents at beginning of year		769,952			838,030

VII Cash and cash equivalents at end of year	¥	840,724		¥	769,952

Supplemental disclosures of cash flow information:
Cash received during the year for:
Tax refunds	¥	93,103		¥	7
Cash paid during the year for:
Interest		8,666			10,323
Income taxes		182,914			541,684
Non-cash investing and financing activities:
Acquisition of shares from sale of an investment		—			16,711
Assets acquired through capital lease obligations		5,038			4,411
Retirement of treasury stock		362,659			311,371

Notes to Unaudited Consolidated Financial Statements

The accompanying unaudited consolidated financial information of NTT DoCoMo, Inc. and its subsidiaries (collectively “DoCoMo”) has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

1.	Summary of significant accounting and reporting policies:

(1)

Significant accounting policies

Use of estimates —

The preparation of DoCoMo’s consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities, as well as the reported amounts of revenues and expenses. Actual results could differ from those estimates.

Inventories —

Inventories are stated at the lower of cost or market. The cost of equipment sold is determined by the first-in, first-out method.

Property, plant and equipment —

Property, plant and equipment is stated at cost and includes capitalized interest expense incurred during construction periods. It is depreciated over the estimated useful lives of respective assets using the declining-balance method with the exception of buildings that are depreciated using the straight-line method.

Investments in affiliates —

The equity method of accounting is applied for investments in affiliates where DoCoMo owns an aggregate interest of 20% to 50% and/or is able to exercise significant influence over the affiliate.

DoCoMo evaluates the recoverability of the carrying value of its investments in affiliates, which includes investor level goodwill, when there are indicators that a decline in value below its carrying amount may be other than temporary. In the event of a determination that a decline in value is other than temporary, the amount of the loss is recognized in earnings, and a new cost basis in the investment is established.

Marketable securities —

DoCoMo accounts for its marketable securities in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 115, “Accounting for Certain Investments in Debt and Equity Securities.”

Goodwill and other intangible assets —

DoCoMo accounts for goodwill and other intangible assets in accordance with SFAS No. 142, “Goodwill and Other Intangible Assets,” SFAS No. 86, “Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed,” and American Institute of Certificated Public Accountants (AICPA) Statement of Position 98-1, “Accounting for the Costs of Computer Software Developed or Obtained for Internal Use.”

Impairment of long-lived assets —

In accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” DoCoMo’s long-lived assets other than goodwill, including property, plant and equipment, software and other intangibles, are reviewed for impairment, and if the asset is determined to be impaired, the amount of the loss is recognized.

Hedging activities —

DoCoMo accounts for derivative instruments in accordance with SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended by SFAS No. 138 and No. 149.

Employee benefit plans —

Pension benefits earned during the fiscal year, as well as interest on projected benefit obligations, are accrued currently. Prior service costs and credits resulting from changes in plan benefits are amortized over the average remaining service period of the employees expected to receive the benefits.

Revenue recognition —

Base monthly charges and airtime charges are recognized as revenues as service is provided to the subscribers. DoCoMo’s monthly rate plans for cellular (FOMA and mova) services generally include a certain amount of allowances (free minutes and/or packets), and the used amount of the allowances is subtracted from total usage in calculating the airtime revenue from a subscriber for the month. Prior to November 2003, the total amount of the base monthly charges was recognized as revenues in the month they were charged as the subscribers could not carry over the unused allowances to the following months. In November 2003, DoCoMo introduced a billing arrangement, called “Nikagetsu Kurikoshi” (two-month carry over), in which the unused allowances are automatically carried over up to the following two months. DoCoMo also introduced a new arrangement which enables the unused allowances offered in and after December 2004 that have been carried over for two months to be automatically used to cover the airtime and/or packet fees exceeding the allowances of the other lines in the “Family Discount” group, a discounted billing arrangement for families with two to ten DoCoMo subscriptions. With the introduction of these new billing arrangements, DoCoMo has deferred revenues based on the portion of unused allowances that are estimated to be utilized prior to expiration. As DoCoMo does not have sufficient empirical evidence to reasonably estimate such amounts, DoCoMo currently defers all revenues corresponding to unused allowances. The deferred revenues are recognized as revenues as the subscribers make calls or data communications, similar to the way airtime revenues are recognized.

Certain commissions paid to purchasers (primarily agent resellers) are recognized as a reduction of revenue upon delivery of the equipment to the purchasers (primarily agent resellers) in accordance with Emerging Issues Task Force No. 01-09 (“EITF 01-09”), “Accounting for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendor’s Products).”

Upfront activation fees are deferred and recognized as revenues over the estimated average period of the customer relationship for each service. The related direct costs are also deferred to the extent of the related upfront fee amount and are amortized over the same periods.

Income taxes —

Income taxes are accounted for under the asset and liability method.

(2)

Reclassifications

Certain reclassifications have been made to the prior periods’ consolidated financial statements to conform to the presentation used for the year ended March 31, 2006.

2.	Business segments:

Segment information for the years ended March 31, 2006 and 2005 are as follows:


	Millions of yen
Year ended March 31, 2006	Mobile phone business		PHS business			Miscellaneous businesses			Corporate		Consolidated
Operating revenues	¥	4,683,002	¥	41,741		¥	41,129		¥	—	¥	4,765,872
Operating expenses		3,838,567		51,210			43,456			—		3,933,233

Operating income (loss)	¥	844,435	¥	(9,469	)	¥	(2,327	)	¥	—	¥	832,639

Assets	¥	4,782,740	¥	34,414		¥	23,241		¥	1,524,862	¥	6,365,257

Depreciation and amortization	¥	729,349	¥	3,983		¥	3,734		¥	—	¥	737,066

Capital expenditures	¥	749,456	¥	1,071		¥	—		¥	136,586	¥	887,113


	Millions of yen
Year ended March 31, 2005	Mobile phone business		PHS business			Miscellaneous businesses			Corporate		Consolidated
Operating revenues	¥	4,755,815	¥	63,095		¥	25,700		¥	—	¥	4,844,610
Operating expenses		3,880,433		148,976			31,035			—		4,060,444

Operating income (loss)	¥	875,382	¥	(85,881	)	¥	(5,335	)	¥	—	¥	784,166

Assets	¥	4,755,598	¥	50,907		¥	17,728		¥	1,312,288	¥	6,136,521

Depreciation and amortization	¥	705,806	¥	22,996		¥	6,621		¥	—	¥	735,423

Capital expenditures	¥	696,638	¥	4,840		¥	—		¥	160,039	¥	861,517

The “Corporate” column in the tables is not an operating segment but is included to reflect the recorded amounts of common assets which cannot be allocated to any business segment. Capital expenditures in the “Corporate” column include expenditures in “miscellaneous businesses” and certain expenditures related to the buildings for telecommunications purposes and common facilities, which are not allocated to each segment.

Effective from the year ended March 31, 2006, DoCoMo partly changed its segment configuration as described as follows: “Quickcast business,” which was presented separately in the past, is reclassified to “Miscellaneous businesses,” and international dialing and roaming services, which were previously classified as “Miscellaneous businesses,” are reclassified to “Mobile phone business.” As a result of these reclassifications, the segment results for the year ended March 31, 2005 are restated to conform to the presentation for the year ended March 31, 2006.

DoCoMo does not disclose geographical segments, since operating revenues generated outside Japan are immaterial.

DoCoMo evaluates the recoverability of long-lived assets in accordance with SFAS No. 144. Because DoCoMo estimated that future net cash flows from PHS business would be negative, DoCoMo wrote-down the entire carrying value of long-lived assets related to the PHS business during the year ended March 31, 2005. As a result, DoCoMo recognized a non-cash impairment loss of long-lived assets of ¥60,399 million, which was recorded in operating expenses of PHS business segment, for the year ended March 31, 2005. DoCoMo also wrote-down the entire carrying value of long-lived assets related to the PHS business which DoCoMo acquired during the year ended March 31, 2006. Therefore, DoCoMo recognized an impairment loss of long-lived assets of ¥1,071 million, which was recorded in the operating expenses of the PHS business segment for the year ended March 31, 2006.

3.	Related party transactions:

DoCoMo is majority-owned by NTT, which is a holding company for more than 400 companies comprising the NTT group. During the years ended March 31, 2006 and 2005, DoCoMo purchased capital equipment from NTT group companies in the amount of ¥71,897 million and ¥71,896 million, respectively.

During the year ended March 31, 2006, DoCoMo entered into contracts of bailment of cash for consumption with NTT Leasing Co., Ltd. (“NTT Leasing”), and deposited ¥120,000 million for cash management purposes. Under the contracts, funds are bailed to the bailee which can consume the funds at its discretion and the bailor can withdraw the funds upon its demand. As of March 31, 2006, the assets related to the contracts of bailment of cash for consumption were recorded as “cash and cash equivalents” of ¥20,000 million and “other assets” of ¥100,000 million on the consolidated balance sheets. NTT and its subsidiaries owned all voting interests in NTT Leasing and DoCoMo owned 4.2% voting interests in it as of March 31, 2006, and accordingly, NTT Leasing is a related party of DoCoMo. The recorded amount of interest income derived from the contracts is ¥95 million for the year ended March 31, 2006.

On March 14, 2006, DoCoMo acquired 12,633,486 shares of Philippine Long Distance Telephone Company (“PLDT”), a telecommunication carrier in Philippine, which represented approximately 7% of PLDT’s issued shares, for ¥52,103 million from NTT Communications Corporation, a subsidiary of NTT.

DoCoMo entered into cost-sharing and construction and maintenance contracts with Japan Mobile Communications Infrastructure Association, chairman of which was one of DoCoMo’s directors through June 21, 2005. The contracts were entered into on terms similar to those made with third parties. Income from such contracts was ¥217 million and ¥14,797 million for the years ended March 31, 2006 (from April 1 to June 21, 2005) and 2005, respectively.

4.	Deferred tax:

Deferred income taxes result from temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Significant components of deferred tax assets and liabilities at March 31, 2006 and 2005 are as follows:


	Millions of yen
	Year ended March 31, 2006		Year ended March 31, 2005
Deferred tax assets:
Investments in affiliates	¥	64,809	¥	91,750
Liability for employee benefits		54,497		53,641
Property, plant and equipment and intangible assets principally due to differences in depreciation		46,752		50,343
Reserve for point loyalty programs		45,824		39,015
Deferred revenues regarding “Nikagetsu Kurikoshi”		34,639		24,849
Accrued commissions to agent resellers		23,439		26,436
Accrued enterprise tax		18,058		2,571
Inventories		9,562		2,520
Compensated absences		7,980		7,845
Accrued bonus		6,497		6,370
Loss carryforwards		—		74,643
Tax credit carryforwards		—		23,526
Other		17,266		12,403

Subtotal gross deferred tax assets	¥	329,323	¥	415,912
Less valuation allowance		—		(23,436	)

Total gross deferred tax assets	¥	329,323	¥	392,476

Deferred tax liabilities:
Unrealized holding gains on available-for-sale securities		20,485		15,176
Intangible assets (principally customer related assets)		8,972		12,445
Property, plant and equipment due to differences in capitalized interest		2,223		2,944
Foreign currency translation adjustment		52		16,064
Enterprise tax refunds receivable		—		8,627
Other		12,163		10,744

Total gross deferred tax liabilities	¥	43,895	¥	66,000

Net deferred tax assets	¥	285,428	¥	326,476

Substantially all income or loss before income taxes, and income tax expenses or benefit are domestic. DoCoMo is subject to a number of different taxes, based on income, with an aggregate statutory income tax rate of approximately 40.9% and 40.9% for the years ended March 31, 2006 and 2005, respectively. The effective income tax rate for the years ended March 31, 2006 and 2005 was approximately 35.9%, and 41.0% respectively. The difference between the effective income tax rate and the statutory income tax rate for the year ended March 31, 2006 is principally related to a decrease in valuation allowance, which lowered the effective tax rate by 2.5 points.

5.	Marketable securities and other investments:

Marketable securities and other investments as of March 31, 2006 and 2005 comprised the following:


	Millions of yen
	March 31, 2006		March 31, 2005
Marketable securities:
Available-for-sale	¥	249,943	¥	223,107
Held-to-maturity		—		7
Other investments		157,866		19,955

Total	¥	407,809	¥	243,069

Debt securities, which were classified as current assets because the maturities at the end of fiscal years were one year or less, were included in the above table in addition to marketable securities recorded as a non-current item, “Marketable securities and other investments,” on the consolidated balance sheets.

DoCoMo had no debt securities classified as held to maturities at March 31, 2006.

Maturities of debt securities classified as available for sale at March 31, 2006 are as follows:


	Millions of yen
	March 31, 2006
	Carrying amounts		Fair value
Due within 1 year	¥	49,985	¥	49,985
Due after 1 year through 5 years		99,800		99,800
Due after 5 years through 10 years		—		—
Due after 10 years		—		—

Total	¥	149,785	¥	149,785

Actual maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations.

The aggregate fair value, gross unrealized holding gains and losses and cost by type of marketable security at March 31, 2006 and 2005 are as follows:


	Millions of yen
	March 31, 2006
	Cost / Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses		Fair value
Available-for-sale:
Equity securities	¥	52,784	¥	47,685	¥	311	¥	100,158
Debt securities		150,290		—		505		149,785
Held-to-maturity:
Debt securities		—		—		—		—

	Millions of yen
	March 31, 2005
	Cost / Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses		Fair value
Available-for-sale:
Equity securities	¥	37,782	¥	35,087	¥	327	¥	72,542
Debt securities		150,509		56		—		150,565
Held-to-maturity:
Debt securities		7		0		—		7

The proceeds and gross realized gains and losses from the sale of available-for-sale securities and other investments are as follows:


	Millions of yen
	Year ended March 31, 2006		Year ended March 31, 2005
Proceeds	¥	14,902	¥	27,046
Gross realized gains		40,454		17
Gross realized losses		—		(1,118	)

Other investments include long-term investments in various privately held companies and restricted stocks. The aggregate carrying amounts of DoCoMo’s cost method investments included in other investments totaled ¥157,843 million and ¥15,954 million at March 31, 2006 and 2005, respectively.

6.	Employee benefits:

DoCoMo participates in a contributory defined benefit welfare pension plan sponsored by the NTT group. The number of DoCoMo’s employees covered by the contributory plan represented approximately 10.4% and 10.2% of the total members covered by such plan as of March 31, 2006 and 2005, respectively. The amount of expense allocated in DoCoMo’s consolidated statements of income and comprehensive income related to the contributory plan for the years ended March 31, 2006 and 2005 was ¥5,303 million and ¥5,719 million, respectively. The liability for employees’ benefits covered by such contributory plan was ¥32,674 million and ¥31,026 million as of March 31, 2006 and 2005, respectively. Such amounts were allocated by NTT and are based on actuarial calculations related to the covered employees of DoCoMo.

DoCoMo also sponsors non-contributory defined benefit pension plans covering substantially all employees. Based on the plans, employees whose services with DoCoMo are terminated are normally entitled to lump-sum severance payments and pension payments. The following tables present the non-contributory pension plans’ projected benefit obligations and fair value of plan assets at March 31, 2006 and 2005:


	Millions of yen
	March 31, 2006			March 31, 2005
Projected benefit obligation, end of year	¥	188,856		¥	179,392
Fair value of plan assets, end of year		79,266			64,770

Funded status	¥	(109,590	)	¥	(114,622	)

Unrecognized net losses		41,089			48,149
Unrecognized transition obligation		1,565			1,697
Unrecognized prior service cost		(21,682	)		(23,597	)

Net amount recognized	¥	(88,618	)	¥	(88,373	)

The following table provides the amounts recognized in DoCoMo’s consolidated balance sheets:


	Millions of yen
	March 31, 2006			March 31, 2005
Liability for employees’ retirement benefits	¥	(102,837	)	¥	(107,648	)
Prepaid pension cost		113			58
Intangible assets		122			669
Accumulated other comprehensive income		13,984			18,548

Net amount recognized	¥	(88,618	)	¥	(88,373	)

Liability for employees’ retirement benefits covered by the NTT group contributory defined benefit welfare pension plan	¥	(32,674	)	¥	(31,026	)

Total liability for employees’ retirement benefits	¥	(135,511	)	¥	(138,674	)

The charges to income for the non-contributory pension plans for the years ended March 31, 2006 and 2005 included the following components:


	Millions of yen
	Year ended March 31, 2006			Year ended March 31, 2005
Service cost	¥	9,879		¥	9,683
Interest cost on projected benefit obligation		3,493			3,358
Expected return on plan assets		(1,640	)		(1,497	)
Amortization of prior service cost		(1,861	)		(1,815	)
Amortization of actuarial loss		2,018			2,187
Amortization of transition obligation		132			89

Net pension cost	¥	12,021		¥	12,005


The assumptions used in determination of the non-contributory pension plans’ projected benefit obligations at March 31, 2006 and 2005 are as follows:

	March 31, 2006			March 31, 2005
Discount rate		2.0	%		2.0	%
Long-term rate of salary increases		2.1	%		2.1	%

The assumptions used in determination of the net pension costs for the years ended March 31, 2006 and 2005 are as follows:

	Year ended March 31, 2006			Year ended March 31, 2005
Discount rate		2.0	%		2.0	%
Long-term rate of salary increases		2.1	%		2.1	%
Long-term rate of return on funded assets		2.5	%		2.5	%

7.	Other footnotes to unaudited financial statements:

Share repurchase and retirement

On June 18, 2004, the shareholders’ meeting approved a stock repurchase plan under which DoCoMo could repurchase up to 2,500,000 shares at an aggregate amount not to exceed ¥600,000 million in order to improve capital efficiency and to implement flexible capital policies in accordance with the business environment. On June 21, 2005, the shareholders’ meeting also approved a stock repurchase plan under which DoCoMo may repurchase up to 2,200,000 shares at an aggregate amount not to exceed ¥400,000 million.

Also, DoCoMo repurchased its fractional shares.

Class, aggregate number and price of shares repurchased for the year ended March 31, 2006, were as follows:


Class of shares repurchased:		Shares of common stock of the Company

Aggregate number of shares repurchased:		1,797,981 shares (3.69% of the outstanding shares at the date of the general shareholders’ meeting held in 2005)

Aggregate price of shares repurchased:		¥300,078 million

Based on the resolution of the board of directors on March 28, 2006, DoCoMo retired 1,890,000 of its own shares (purchase price: ¥362,659 million).


Non-consolidated Financial Statements		April 28, 2006
For the Fiscal Year Ended March 31, 2006		[Japanese GAAP]


Name of registrant:		NTT DoCoMo, Inc.
Code No.:		9437
Stock exchange on which the Company’s shares are listed:		Tokyo Stock Exchange-First Section
Address of principal executive office:		Tokyo, Japan
(URL http://www.nttdocomo.co.jp/ )
Representative:		Masao Nakamura, Representative Director, President and Chief Executive Officer
Contact:		Masahiko Yamada, Senior Manager, General Affairs Department / TEL +81-3-5156-1111
Date of the meeting of the Board of Directors for approval of the non-consolidated financial statements:		April 28, 2006
Date of scheduled payment of dividends:		June 21, 2006
Adoption of the Unit Share System:		No
Interim dividends plan:		Yes
Date of the general meeting of shareholders for approval of the non-consolidated financial statements:		June 20, 2006

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2006 (April 1, 2005 - March 31, 2006)

(1) Non-consolidated Results of Operations

Amounts are truncated to nearest 1 million yen.


	(Millions of yen, except per share amounts)
	Operating Revenues			Operating Income			Recurring Profit
Year ended March 31, 2006	2,554,026	(0.7	%)	379,017	(7.2	%)	525,742	17.9	%
Year ended March 31, 2005	2,571,211	(2.4	%)	408,252	(22.6	%)	445,952	(16.4	%)


	Net Income			Earnings per Share	Diluted Earnings per Share	ROE (Ratio of Net Income to Shareholders’ Equity)		ROA (Ratio of Recurring Profit to Total Assets)		Recurring Profit Margin (Ratio of Recurring Profit to Operating Revenues)
Year ended March 31, 2006	412,566	(18.0	%)	9,115.17(yen)	—	17.7	%	11.8	%	20.6	%
Year ended March 31, 2005	503,218	50.7	%	10,613.51(yen)	—	21.5	%	10.0	%	17.3	%


Notes:	1.	Weighted average number of shares outstanding:	For the year ended March 31, 2006:	45,250,031 shares
			For the year ended March 31, 2005:	47,401,154 shares

	2.	Change in accounting policy:	No

	3.	Percentages for operating revenues, operating income, recurring profit and net income in the above table represent year-on-year changes.


(2) Dividends	(Yen, except Total Dividends for the Year)
	Total Dividends per Share			Total Dividends for the Year	Payout Ratio		Ratio of Dividends to Shareholders’ Equity
		Interim Dividends per Share	Year-End Dividends per Share	Total Dividends for the Year	Payout Ratio		Ratio of Dividends to Shareholders’ Equity
Year ended March 31, 2006	4,000.00	2,000.00	2,000.00	178,165(million yen)	43.9	%	7.7	%
Year ended March 31, 2005	2,000.00	1,000.00	1,000.00	93,010(million yen)	18.8	%	4.0	%


(3) Non-consolidated Financial Position	(Millions of yen, except per share amounts)
	Total Assets	Shareholders’ Equity	Equity Ratio (Ratio of Shareholders’ Equity to Total Assets)		Shareholders’ Equity per Share
March 31, 2006	4,515,663	2,323,036	51.4	%	52,230.97(yen)
March 31, 2005	4,419,525	2,336,614	52.9	%	50,494.41(yen)


Notes:	Number of shares outstanding at end of year:	March 31, 2006:	44,474,227 shares	March 31, 2005:	46,272,208 shares
	Number of treasury shares:	March 31, 2006:	2,335,772 shares	March 31, 2005:	2,427,792 shares

2. Non-consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2007 (April 1, 2006 - March 31, 2007)

(Millions of yen, except per share amounts)

Operating

Revenues

Recurring
Profit

Net Income

Total Dividends per Share

Interim
Dividends
per Share

Year-End

Dividends
per Share

Year ending March 31, 2007

2,608,000

688,000

545,000

2,000(yen)

4,000(yen)

(Reference) Expected Earnings per Share: 12,254.29 yen

Note:

With regard to the assumptions and other related matters concerning the above estimated results, please refer to page 10.

<< Non-consolidated Financial Statements >>

1.	Non-consolidated Balance Sheets


	Millions of yen
	(UNAUDITED) March 31, 2006					March 31, 2005					Increase (Decrease)
ASSETS
Non-current assets:
Non-current assets for telecommunication businesses
Property, plant and equipment	¥	1,108,407				¥	1,128,130				¥	(19,723	)
Machinery and equipment		440,939					463,752					(22,812	)
Antenna facilities		139,329					135,135					4,193
Satellite mobile communications facilities		5,945					7,681					(1,736	)
Telecommunications line facilities		1,572					1,089					483
Pipe and hand holes		1,636					1,238					397
Buildings		226,617					237,006					(10,388	)
Structures		20,338					19,790					548
Other machinery and equipment		8,564					11,277					(2,712	)
Vehicles		201					288					(86	)
Tools, furniture and fixtures		112,299					124,000					(11,701	)
Land		101,030					101,152					(122	)
Construction in progress		49,931					25,717					24,213
Intangible assets		495,466					478,658					16,807
Rights to use utility facilities		1,713					1,311					401
Computer software		426,910					420,374					6,535
Patents		25					150					(125	)
Leasehold rights		4,276					3,607					669
Other intangible assets		62,540					53,214					9,326
Total non-current assets for telecommunication businesses		1,603,873					1,606,788					(2,915	)
Investment and other assets
Investment securities		360,242					222,576					137,666
Investment in affiliated companies		660,310					591,070					69,240
Long-term prepaid expenses		3,695					2,510					1,184
Deferred tax assets		113,460					114,899					(1,439	)
Long-term bailment		100,000					—					100,000
Other investments and other assets		38,951					37,750					1,201
Allowance for doubtful accounts		(237	)				(189	)				(47	)
Total investment and other assets		1,276,423					968,617					307,805

Total non-current assets		2,880,296		63.8	%		2,575,406		58.3	%		304,890

Current assets:
Cash and bank deposits		780,558					981,159					(200,600	)
Notes receivable		25					6					18
Accounts receivable, trade		331,924					347,877					(15,953	)
Accounts receivable, other		267,443					323,287					(55,843	)
Securities		49,985					—					49,985
Inventories and supplies		135,309					84,065					51,243
Advances		1,774					3,722					(1,947	)
Prepaid expenses		7,088					5,440					1,647
Deferred tax assets		41,356					82,628					(41,272	)
Short-term loans		—					20,750					(20,750	)
Other current assets		25,578					2,405					23,172
Allowance for doubtful accounts		(5,678	)				(7,226	)				1,548

Total current assets		1,635,366		36.2	%		1,844,118		41.7	%		(208,751	)

Total assets	¥	4,515,663		100.0	%	¥	4,419,525		100.0	%	¥	96,138


	Millions of yen
	(UNAUDITED) March 31, 2006					March 31, 2005					Increase (Decrease)
LIABILITIES
Long-term liabilities:
Bonds	¥	486,685				¥	615,885				¥	(129,200	)
Long-term borrowings		114,000					175,000					(61,000	)
Liability for employees’ retirement benefits		56,975					60,889					(3,914	)
Reserve for directors’ and corporate auditors’ retirement benefits		373					495					(122	)
Reserve for point loyalty programs		44,406					36,024					8,381
Provision for loss on PHS business		2,435					20,355					(17,920	)
Other long-term liabilities		3,558					19,197					(15,639	)

Total long-term liabilities		708,433		15.7	%		927,848		21.0	%		(219,415	)

Current liabilities:
Current portion of long-term borrowings		190,200					136,000					54,200
Accounts payable, trade		356,051					272,813					83,237
Accounts payable, other		246,962					223,324					23,637
Accrued expenses		6,384					6,074					309
Accrued taxes on income		47,932					920					47,011
Advances received		13,714					10,298					3,415
Deposits received		581,828					458,935					122,893
Other current liabilities		41,119					46,694					(5,574	)

Total current liabilities		1,484,193		32.9	%		1,155,061		26.1	%		329,131

Total liabilities	¥	2,192,627		48.6	%	¥	2,082,910		47.1	%	¥	109,716

SHAREHOLDERS’ EQUITY
Common stock	¥	949,679		21.0	%	¥	949,679		21.5	%	¥	—
Capital surplus
Additional paid-in capital		292,385					292,385					—
Other paid-in capital		971,190					971,190					—
Total capital surplus		1,263,575		28.0	%		1,263,575		28.6	%		—
Earned surplus
Legal reserve		4,099					4,099					—
Voluntary reserve		372,862					367,925					4,937
Unappropriated retained earnings		155,060					245,706					(90,645	)
Total earned surplus		532,023		11.8	%		617,732		14.0	%		(85,708	)
Net unrealized holding gains on securities		25,952		0.5	%		16,403		0.4	%		9,549
Treasury stock		(448,195	)	(9.9	%)		(510,776	)	(11.6	%)		62,580

Total shareholders’ equity	¥	2,323,036		51.4	%	¥	2,336,614		52.9	%	¥	(13,577	)

Total liabilities and shareholders’ equity	¥	4,515,663		100.0	%	¥	4,419,525		100.0	%	¥	96,138

2.	Non-consolidated Statements of Income


	Millions of yen
	(UNAUDITED) Year ended March 31, 2006				Year ended March 31, 2005				Increase (Decrease)
Recurring profits and losses:
Operating revenues and expenses
Telecommunication businesses
Operating revenues	¥	2,020,226	79.1	%	¥	2,034,124	79.1	%	¥	(13,898	)
Voice transmission services		1,290,626				1,329,689				(39,062	)
Data transmission services		480,951				454,773				26,177
Other		248,648				249,661				(1,013	)
Operating expenses		1,651,354	64.7	%		1,634,338	63.6	%		17,016
Business expenses		995,808				982,284				13,524
Administrative expenses		50,947				55,790				(4,842	)
Depreciation		398,569				376,939				21,629
Loss on disposal of property, plant and equipment and intangible assets		22,086				28,162				(6,075	)
Communication network charges		166,434				175,909				(9,474	)
Taxes and public dues		17,507				15,252				2,254
Operating income from telecommunication businesses		368,871	14.4	%		399,786	15.5	%		(30,914	)
Supplementary businesses
Operating revenues		533,800	20.9	%		537,086	20.9	%		(3,286	)
Operating expenses		523,654	20.5	%		528,620	20.5	%		(4,965	)
Operating income from supplementary businesses		10,145	0.4	%		8,466	0.4	%		1,679

Total operating income	¥	379,017	14.8	%	¥	408,252	15.9	%	¥	(29,235	)

Non-Operating revenues and expenses
Non-operating revenues		178,926	7.0	%		55,798	2.1	%		123,127
Interest income and discounts		4,265				1,822				2,442
Interest income-securities		230				42				188
Dividend income		156,431				43,605				112,825
Foreign exchange gains		—				3,888				(3,888	)
Lease and rental income		—				1,719				(1,719	)
Miscellaneous income		17,999				4,720				13,278
Non-operating expenses		32,201	1.2	%		18,099	0.7	%		14,102
Interest expense and discounts		1,914				2,154				(239	)
Interest expense-bonds		5,877				6,624				(746	)
Loss on write-off of inventories		22,418				6,117				16,301
Impairment of investment securities		—				694				(694	)
Miscellaneous expenses		1,990				2,509				(518	)

Recurring profit	¥	525,742	20.6	%	¥	445,952	17.3	%	¥	79,790

Special profits and losses:
Special profits		—	—			431,700	16.8	%		(431,700	)
Gain on liquidation of a subsidiary		—				431,700				(431,700	)
Special losses		—	—			36,323	1.4	%		(36,323	)
Provision for loss on PHS business		—				20,355				(20,355	)
Write-downs of investments in affiliated companies		—				15,967				(15,967	)
Income before income taxes		525,742	20.6	%		841,329	32.7	%		(315,586	)
Income taxes-current		77,000	3.0	%		61	0.0	%		76,938
Income taxes-deferred		36,176	1.4	%		338,049	13.1	%		(301,872	)

Net income	¥	412,566	16.2	%	¥	503,218	19.6	%	¥	(90,652	)

Retained earnings brought forward		194,371				100,596				93,774
Retirement of treasury stock		362,658				311,371				51,287
Interim dividends		89,217				46,737				42,479
Unappropriated retained earnings	¥	155,060			¥	245,706			¥	(90,645	)

Note:

The denominator used to calculate the percentage figures is the aggregate amount of operating revenues from telecommunication businesses and supplementary businesses.

3.	Proposal for Appropriation of Retained Earnings


	Millions of yen
	Year ended March 31, 2006			Year ended March 31, 2005
Unappropriated retained earnings	¥	155,060		¥	245,706

Reversal of appropriation for accelerated depreciation on tax		4,876			2,981
Sub-total		159,937			248,688

The above shall be appropriated as follows:
Cash dividends		88,948			46,272
		[¥2,000 per share	]		[¥1,000 per share	]
Bonuses to directors and corporate auditors		104			126

[(including) Bonuses to corporate auditors]		[19	]		[23	]

Appropriation for accelerated depreciation on tax		6,502			7,918

Retained earnings carried forward	¥	64,382		¥	194,371

Notes:

•

On November 22, 2005, DoCoMo paid ¥89,217 million (¥2,000 per share) as an interim dividend.

•

Appropriation for accelerated depreciation on tax is based on the Special Taxation Measures Law of Japan.

Accounting Basis for the Non-Consolidated Financial Statements

Basis of Presentation:

The accompanying unaudited non-consolidated financial statements of NTT DoCoMo, Inc. (“the Company”) have been prepared in accordance with accounting principles generally accepted in Japan.

1.	Depreciation and amortization of non-current assets

(1)

Property, plant and equipment

Depreciation of property, plant and equipment is computed by the declining balance method with the exception of buildings, which are depreciated on a straight-line basis.

(2)

Intangible assets

Intangible assets are amortized on a straight-line basis.

Internal use software is amortized over the estimated useful lives (5 years or less) on a straight-line basis.

2.	Valuation of securities

(1)

Investments in subsidiaries and affiliates are stated at cost, which is determined by the moving average method.

(2)

Available-for-sale securities whose fair value is readily determinable are stated at fair value as of the end of the fiscal year with unrealized holding gains and losses, net of applicable deferred tax assets/liabilities. The unrealized gains and losses are not reflected in earnings, but directly reported as a separate component of shareholders’ equity. The cost of securities sold is determined by the moving-average method with the exception of the cost of debt securities sold, which are determined by the first-in, first-out method.

(3)

Available-for-sale securities whose fair value is not readily determinable are stated at moving-average cost.

3.	Derivative instruments

Derivative instruments are stated at fair value as of the end of the fiscal year.

4.	Inventories

Inventories are stated at cost. The cost of terminal equipment to be sold is determined by the first-in, first-out method. The cost of other inventories is determined by the specific identification method.

5.	Foreign currency translation

Foreign currency monetary assets and liabilities are translated into Japanese yen at the current spot rate at the end of the fiscal year and the resulting translation gains or losses are included in net income.

6.	Allowance for doubtful accounts, liability for employees’ retirement benefits, reserve for directors’ and corporate auditors’ retirement benefits, reserve for point loyalty programs and provision for loss on PHS business

(1)

Allowance for doubtful accounts

The Company provides for doubtful accounts principally in an amount computed based on the historical bad debt ratio during a certain reference period plus the estimated uncollectable amount based on the analysis of certain individual accounts, including claims in bankruptcy.

(2)

Liability for employees’ retirement benefits

In order to provide for employees’ retirement benefits, the Company accrues the liability as of the end of the fiscal year in an amount calculated based on the estimated projected benefit obligation and plan assets at the end of the fiscal year.

Actuarial losses (gains) are recognized as incurred at the end of the fiscal year.

Prior service cost is amortized on a straight-line basis over the average remaining service periods of employees at the time of recognition.

(Change in Accounting Policy)

Effective from the year ended March 31, 2006, the Company adopted “Amendment of Accounting Standards for Retirement Benefits” (Accounting Standard No. 3, which was issued on March 16, 2005) and “Application Guidance on Amendment of Accounting Standards for Retirement Benefits” (Accounting Standard Application Guidance No. 7, which was issued on March 16, 2005). As a result of the adoption, operating income, recurring profit and income before income taxes increased by ¥3,653 million compared with those accounted for under the previous method for the year ended March 31, 2006.

(3)

Reserve for directors’ and corporate auditors’ retirement benefits

The Company allocates the amount necessary for payment as of the end of the fiscal year based on our internal regulations, so as to prepare for the payment of retirement benefits to directors and corporate auditors.

(4)

Reserve for point loyalty programs

The costs of awards under the point loyalty programs called “DoCoMo Point Service” and “DoCoMo Premium Club” that are reasonably estimated to be redeemed by the customers in the future based on historical data are accounted for as reserve for point loyalty programs.

(5)

Provision for loss on PHS business

In order to provide for the loss resulting from PHS business, the Company makes necessary provision for the estimated future loss.

Leases

Finance leases other than those deemed to transfer ownership of properties to lessees are not capitalized and are accounted for in a similar manner as operating leases.

8.	Hedge accounting

(1)

Hedge accounting

Japanese GAAP provides for two general accounting methods for hedging financial instruments. One method is to recognize the changes in fair value of a hedging instrument in net income in the period of the change as gain or loss together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The other method is to defer the gain or loss over the period of the hedging contract together with offsetting loss or gain deferral of the hedged items. The Company has adopted the latter accounting method.

However, when an interest rate swap contract meets certain conditions, the net amount to be paid or received under the contract is added to or deducted from the interest on the hedged items.

In addition, when a foreign currency swap contract meets certain conditions, it is accounted for in the following manner:

(i)

The difference between the Japanese yen nominal amounts of the foreign currency swap contract translated using the spot rate at the transaction date of the hedged item and the spot rate at the date of inception of the contract, if any, is recognized in the non-consolidated statement of income in the period which includes the inception date of the contract; and

(ii)

The discount or premium on the contract (for instance, the difference between the Japanese yen amounts of the contract translated using the contracted forward rate and the spot rate at the date of inception of the contract) is recognized over the term of the contract.

(2)

Hedging instruments and hedged items


Hedging instruments:		Hedged items:
Interest rate swap contracts		Corporate bonds
Foreign currency swap contracts		Bonds in foreign currency

(3)

Hedging policy

The Company uses financial instruments to hedge risks such as market fluctuation risks in accordance with its internal policies and procedures.

(4)

Assessment method of hedge effectiveness

The Company periodically evaluates hedge effectiveness by comparing cumulative changes in cash flows from hedged items or changes in fair value of hedged items, and the corresponding changes in the hedging instruments. However, the Company automatically assumes that the hedge will be highly effective at achieving offsetting changes in cash flows or in fair value for any transaction where important terms and conditions are identical between hedging instruments and hedged items.

9.	Consumption tax

Consumption tax is separately accounted for by excluding it from each transaction amount.

Change in Accounting Policy

Accounting standards for impairment of long-lived assets

Effective from the year ended March 31, 2006, the Company adopted the accounting standards for impairment of long-lived assets, “Statement of Opinion on Establishment of Accounting Standards for Impairment of Long-lived Assets” (issued by Business Accounting Council on August 9, 2002) and “Application Guidance on Accounting Standards for Impairment of Long-lived Assets” (Accounting Standard Application Guidance No. 6, which was issued on October 31, 2003). The adoption of these standards had no impact on income before income taxes for the year ended March 31, 2006.

The accumulated impairment losses were directly deducted from the amounts of related assets.

Changes in Presentation

(Non-consolidated Balance Sheets)

“Short-term loans,” which was individually stated in the non-consolidated balance sheets as of March 31, 2005, was immaterial in the amount and included in “Other current assets” as of March 31, 2006.

The amount of short-term loans, which was included in “Other current assets,” was ¥4,000 million as of March 31, 2006.

(Non-consolidated Statements of Income)

“Foreign exchange gains” and “Lease and rental income,” which were individually stated in the non-consolidated statements of income for the year ended March 31, 2005, were immaterial in the amounts and included in “Miscellaneous income” for the year ended March 31, 2006.

The amount of foreign exchange gains and lease and rental income, which was included in “Miscellaneous income,” was ¥5,914 million and ¥1,834 million for the year ended March 31, 2006, respectively.

“Impairment of investment securities,” which was individually stated in the non-consolidated statements of income for the year ended March 31, 2005, was immaterial in the amount and included in “Miscellaneous expenses” for the year ended March 31, 2006.

The amount of impairment of investment securities, which was included in “Miscellaneous expenses,” was ¥246 million for the year ended March 31, 2006.

Notes to Non-consolidated Balance Sheets:

1.	Non-current assets for telecommunication businesses include those used in supplementary businesses, because these amounts are not significant.

2.	Accumulated depreciation of property, plant and equipment

3.	Assets or liabilities due from or to subsidiaries and affiliates, the amounts of which exceed one percent of total assets or total liabilities and shareholders’ equity of the Company, are as follows:


	Millions of yen
	March 31, 2006		March 31, 2005
Accounts receivable, trade	¥	82,978	¥	81,509
Accounts receivable, other		241,594		198,426
Accounts payable, other		66,123		53,423
Deposits receive		581,182		456,562

4.	Common stock


	Shares
	March 31, 2006	March 31, 2005
Authorized	188,130,000	190,020,000
Issued	46,810,000	48,700,000

As a result of the retirement of treasury stock, authorized common stock and issued common stock both decreased by 1,890,000 from March 31, 2005 to March 31, 2006.

5.	Share repurchase

The treasury stock the Company had at March 31, 2006 and 2005 amounted to 2,335,772.84 shares and 2,427,792.17 shares, respectively.

6.	Net unrealized holding gains on marketable securities as of March 31, 2006 and 2005 as stipulated in Paragraph 3 of Article 124 of the Enforce Regulations of the Commercial Code of Japan was ¥25,952 million and ¥16,403 million, respectively.

Guarantee

The Company provides a counter indemnity of a performance guarantee up to HK$24,099 thousand (¥364 million) guaranteeing performance by Hutchison Telephone Company Limited, an affiliate of the Company, with respect to certain contracts or obligations owed to its governmental authorities in relation to its business. The Company had HK$488 thousand (¥7 million) and HK$919 thousand indemnity outstanding as of March 31, 2006 and 2005, respectively.

Notes to Non-consolidated Statements of Income:

1.	The total amounts of research and development expenses included in operating expenses of telecommunication businesses and supplementary businesses are as follows:


Year ended March 31, 2006		¥ 109,270 million		Year ended March 31, 2005		¥ 101,560 million

2.	Non-operating revenues from affiliated companies, the amounts of which exceed ten percent of total non-operating revenues of the Company, are as follows:

3.	Impairment loss

The Company recorded an impairment loss on the following asset group for the year ended March 31, 2006.


(1) Place:		Operating area of the Company (Kanto Koshinetsu region*)
(2) Purpose of use:		PHS related assets
(3) Types of assets:		Machinery and equipment, antenna facilities and intangible assets such as telecommunication software

The Company groups Mobile phone business and PHS business as major minimal units which are individual sources of cash flows.

As the Company determined to terminate PHS services during the three months ending December 31, 2007 and estimated that future cash flows from the PHS business would be negative, the Company wrote-down the entire carrying value of its long-lived assets related to the PHS business, resulting in an impairment loss of ¥19,749 million for the year ended March 31, 2006.

The impairment loss consists of machinery and equipment of ¥12,647 million, antenna facilities of ¥2,320 million, intangible assets such as telecommunication software of ¥3,601 million and other assets of ¥1,180 million.

Because the amount of the impairment loss equaled to the amount of income from the reversal of “Provision for loss on PHS business” on long-lived assets, the amounts were netted and the Company did not present an impairment loss on the non-consolidated statements of income for the year ended March 31, 2006.

As a result, the impairment had no impact on income before income taxes for the year ended March 31, 2006 on the non-consolidated statements of income.

Kanto Koshinetsu region consists of Tokyo, Kanagawa, Chiba, Saitama, Ibaraki, Tochigi, Gunma, Yamanashi, Nagano and Niigata.

Marketable Securities:

For the years ended March 31, 2006 and 2005, there were no subsidiaries’ and affiliates’ shares directly owned by the Company that had readily determinable market value.

Income tax accounting:

Significant components of deferred tax assets and liabilities at March 31, 2006 and 2005 are as follows:


	Millions of yen
	March 31, 2006
Deferred tax assets:
Write-down of investments in affiliated companies	¥	78,076
Liability for employees’ retirement benefits		22,366
Depreciation and amortization		22,207
Reserve for point loyalty programs		18,042
“Nikagetsu Kurikoshi” service		14,887
Write-off of inventories		9,498
Accrued enterprise tax		9,060
Other		15,657

Subtotal gross deferred tax assets	¥	189,795
Less valuation allowance		(5,934	)

Total gross deferred tax assets	¥	183,861

Deferred tax liabilities:
Other securities due to differences in revaluation	¥	(17,760	)
Appropriation for accelerated depreciation on tax		(11,283	)

Total gross deferred tax liabilities	¥	(29,044	)

Net deferred tax assets	¥	154,816


	Millions of yen
	March 31, 2005
Deferred tax assets:
Write-down of investments in affiliated companies	¥	78,629
Loss carryforwards		73,867
Liability for employees’ retirement benefits		23,766
Tax credit carryforwards		23,526
Depreciation and amortization		21,581
Reserve for point loyalty programs		14,636
“Nikagetsu Kurikoshi” service		10,402
Provision for loss on PHS business		8,270
Write-off of inventories		2,467
Other		5,449

Subtotal gross deferred tax assets	¥	262,598
Less valuation allowance		(35,116	)

Total gross deferred tax assets	¥	227,481

Deferred tax liabilities:
Other securities due to differences in revaluation	¥	(11,225	)
Appropriation for accelerated depreciation on tax		(10,171	)
Enterprise tax refunds receivable		(8,556	)

Total gross deferred tax liabilities	¥	(29,953	)

Net deferred tax assets	¥	197,528

2. Significant components of the difference between the statutory income tax rate and the effective income tax rate for the year ended March 31, 2006 were as follows:


	March 31, 2006
Statutory income tax rate	40.6	%
Adjustment:
Income not taxable, such as dividends received	(11.8	%)
Decrease in valuation allowance	(5.6	%)
Tax credits concerning research and development	(1.0	%)
Tax credits concerning IT investment promotion tax system	(0.8	%)
Other	0.1	%

Effective income tax rate	21.5	%

The Company omitted to state the components of the difference between the statutory income tax rate and the effective income tax rate for the year ended March 31, 2005, because the difference was less than 5% of the statutory income tax rate and was immaterial.

<< Change of Board of Directors>>

The change of the board of directors, if any, will be decided at the board meeting to be held in May 2006, which is planned to be made public thereafter.

(APPENDIX 1)

Operation Data for FY2005


		[Ref.] Fiscal 2004 (Ended Mar. 31, 2005) Full-year result	Fiscal 2005 (Ended Mar. 31, 2006) Full-year result	[Ref.] First Quarter (Apr.-Jun. 2005) Results	[Ref.] Second Quarter (Jul.-Sep. 2005) Results	[Ref.] Third Quarter (Oct.-Dec. 2005) Results	Fourth Quarter (Jan.-Mar. 2006) Results	[Ref.] Fiscal 2006 (Ending Mar. 31, 2007) Full-year forecast
*Cellular*
Subscribers	thousands	48,825	51,144	49,430	49,904	50,366	51,144	52,900
FOMA	thousands	11,501	23,463	13,710	16,770	20,129	23,463	35,000
mova	thousands	37,324	27,680	35,719	33,134	30,237	27,680	17,900
Market share ^(1) (2)	%	56.1	55.7	56.1	56.0	55.9	55.7	—
Net increase from previous period⁽²⁾	thousands	2,497	2,319	605	475	462	778	1,756
FOMA⁽²⁾	thousands	8,456	11,963	2,210	3,060	3,359	3,335	11,537
mova⁽²⁾	thousands	-5,959	-9,644	-1,605	-2,585	-2,897	-2,557	-9,780
Aggregate ARPU (FOMA+mova) ⁽³⁾	yen/month/contract	7,200	6,910	6,940	7,050	6,920	6,720	6,690
Voice ARPU⁽⁴⁾	yen/month/contract	5,330	5,030	5,120	5,170	5,040	4,780	4,760
Packet ARPU	yen/month/contract	1,870	1,880	1,820	1,880	1,880	1,940	1,930
i-mode ARPU	yen/month/contract	1,870	1,870	1,810	1,870	1,860	1,920	1,910
ARPU generated purely from i-mode (FOMA+mova)⁽³⁾	yen/month/contract	2,060	2,040	1,990	2,050	2,030	2,090	2,070
Aggregate ARPU (FOMA)⁽³⁾	yen/month/contract	9,650	8,700	9,090	9,050	8,650	8,260	7,790
Voice ARPU⁽⁴⁾	yen/month/contract	6,380	5,680	5,990	5,970	5,660	5,330	5,090
Packet ARPU	yen/month/contract	3,270	3,020	3,100	3,080	2,990	2,930	2,700
i-mode ARPU	yen/month/contract	3,220	2,980	3,070	3,050	2,960	2,910	2,660
ARPU generated purely from i-mode (FOMA) ⁽³⁾	yen/month/contract	3,260	3,040	3,110	3,100	3,020	2,970	2,740
Aggregate ARPU (mova) ⁽³⁾	yen/month/contract	6,800	5,970	6,190	6,140	5,910	5,540	5,240
Voice ARPU ⁽⁴⁾	yen/month/contract	5,160	4,680	4,820	4,810	4,680	4,370	4,320
i-mode ARPU	yen/month/contract	1,640	1,290	1,370	1,330	1,230	1,170	920
ARPU generated purely from i-mode (mova) ⁽³⁾	yen/month/contract	1,850	1,460	1,550	1,510	1,400	1,340	1,080
MOU (FOMA+mova) ^(3) (5)	minute/month/contract	151	149	149	152	151	146	—
MOU (FOMA) ^(3) (5)	minute/month/contract	229	202	214	211	201	188	—
MOU (mova)^(3) (5)	minute/month/contract	138	122	126	125	122	113	—
Churn Rate ⁽²⁾	%	1.01	0.77	0.80	0.81	0.72	0.75	—
*i-mode*
Subscribers	thousands	44,021	46,360	44,659	45,139	45,616	46,360	47,900
FOMA	thousands	11,353	22,914	13,514	16,464	19,715	22,914	—
i-appli^TM compatible ⁽⁶⁾	thousands	29,989	36,058	31,330	32,799	34,346	36,058	—
i-mode Subscription Rate ⁽²⁾	%	90.2	90.6	90.3	90.5	90.6	90.6	90.5
Net increase from previous period	thousands	2,944	2,339	638	481	477	744	1,540
i-Menu Sites (FOMA)⁽⁷⁾	sites	4,830	6,028	5,082	5,316	5,844	6,028	—
i-Menu Sites (mova)⁽⁷⁾	sites	4,594	5,043	4,681	4,799	4,995	5,043	—
Access Percentage by Content Category
Ringing tone/Screen	%	30	21	24	23	20	18	—
Game/Horoscope	%	22	24	22	21	25	26	—
Entertainment Information	%	24	27	27	27	27	28	—
Information	%	12	12	12	14	12	9	—
Database	%	4	5	5	5	5	6	—
Transaction	%	8	11	10	10	11	13	—
Independent Sites ⁽⁸⁾	sites	85,013	93,507	87,372	89,367	91,137	93,507	—
Percentage of Packets Transmitted
Web	%	94	96	96	96	97	97	—
Mail	%	6	4	4	4	3	3	—
*PHS*
Subscribers	thousands	1,314	771	1,150	987	882	771	320
Market Share ⁽¹⁾	%	29.4	16.4	25.7	22.0	19.3	16.4	—
Net increase from previous period	thousands	-278	-543	-164	-163	-105	-111	-451
ARPU ⁽⁴⁾	yen/month/contract	3,360	3,280	3,320	3,290	3,270	3,230	—
MOU ^(5) (9)	minute/month/contract	82	72	74	71	70	68	—
Data transmission rate (time) ^(9)(10)	%	74.7	76.2	75.8	75.9	76.5	77.2	—
Churn Rate	%	3.23	4.64	4.83	5.20	3.82	4.54	—
*Others*
Prepaid Subscribers ⁽¹¹⁾	thousands	76	53	68	61	57	53	—
Communication Module Services Subscribers ⁽¹¹⁾	thousands	544	665	582	609	634	665	990
FOMA Ubiquitous plan ⁽¹²⁾	thousands	—	1	—	—	—	1	—
DoPa Single Service⁽¹³⁾	thousands	544	665	582	609	634	665	—

*	International service-related revenues, which had not been included in previous reports, have been included in the ARPU data calculation from the fiscal year ended Mar. 31, 2006, due to its growing contribution to total revenues.

[Notes associated with the above-mentioned change]

International service-related ARPU included in the ARPU results for FY2005 and forecasts for FY2006, are as below:

FY2005

(Ended Mar. 31, 2006)
Full-year results

First Quarter
(Apr.-Jun. 2005)
Results

Second Quarter
(Jul.-Sep. 2005)
Results

Third Quarter
(Oct.-Dec. 2005)
Results

Fourth Quarter
(Jan.-Mar. 2006)
Results

FY2006
(Ending Mar. 31, 2007)
Full-year forecasts

Aggregate ARPU
(FOMA+mova)

40 yen

30 yen

40 yen

60 yen

Aggregate ARPU
(FOMA)

70 yen

60 yen

70 yen

80 yen

Aggregate ARPU
(mova)

30 yen

20 yen

30 yen

20 yen

40 yen

•

ARPU data in our reports prior to fiscal year 2005 do not include International service-related revenues. ARPU generated from International services, derived from the revenues thereof, for the relevant periods are as below:

FY2004

(Ended Mar. 31, 2005)
Full-year result

Aggregate ARPU (FOMA+mova)

20 yen

*	Please refer to the attached sheet (P.43) for an explanation of the methods used to calculate ARPU, and the number of active subscribers used in calculating ARPU, MOU and Churn Rate.

(1)	Source for other cellular telecommunications operators: Data announced by Telecommunications Carriers Association.

(2)	Data are calculated including Communication Module Service subscribers.

(3)	Data are calculated excluding Communication Module Services-related revenues and Communication Module Services subscribers.

(4)	Inclusive of circuit-switched data communications.

(5)	MOU (Minutes of Usage): Average communication time per one month per one user

(6)	Sum of FOMA handsets and mova handsets.

(7)	The number of i-menu Sites charged per view are added to the existing number of i-menu Sites charged with fixed monthly fee.

(8)	Data on independent sites are from OH!NEW? by Digital Street Inc.

(9)	Not inclusive of data communication time via @FreeD service.

(10)	Percentage of data traffic to total outbound call time

(11)	Included in total cellular subscribers.

(12)	Included in FOMA subscribers.

(13)	Included in mova subscribers.

(APPENDIX 2)

ARPU Calculation Methods

1. ARPU (Average monthly revenue per unit)^*1

ARPU (FOMA + mova)

Aggregate ARPU (FOMA+mova)=Voice ARPU (FOMA+mova) + Packet ARPU (FOMA+mova)

Voice ARPU (FOMA+mova) : Voice ARPU (FOMA+mova) Related Revenues (monthly charges, voice transmission charges) / No. of active cellular phone subscribers (FOMA+mova)

Packet ARPU (FOMA+mova) : {Packet ARPU (FOMA) Related Revenues (monthly charges, packet transmission charges)+ i-mode ARPU (mova) Related Revenues (monthly charges, packet transmission charges)}/ No. of active cellular phone subscribers (FOMA+mova)

i-mode ARPU (FOMA+mova)^*2 : i-mode ARPU (FOMA+mova) Related Revenues (monthly charges, packet transmission charges) / No. of active cellular phone subscribers (FOMA+mova)

ARPU generated purely from i-mode (FOMA+mova)^*3 : i-mode ARPU (FOMA+mova) Related Revenues (monthly charges, packet transmission charges) / No. of active i-mode subscribers (FOMA+mova)

ii)

ARPU (FOMA)

Aggregate ARPU (FOMA)=Voice ARPU (FOMA) + Packet ARPU (FOMA)

Voice ARPU (FOMA) : Voice ARPU (FOMA) Related Revenues (monthly charges, voice transmission charges) / No. of active cellular phone subscribers (FOMA)

Packet ARPU (FOMA) : Packet ARPU (FOMA) Related Revenues (monthly charges, packet transmission charges) / No. of active cellular phone subscribers (FOMA)

i-mode ARPU^*2 (FOMA) : i-mode ARPU (FOMA) Related Revenues (monthly charges, packet transmission charges) / No. of active cellular phone subscribers (FOMA)

ARPU generated purely from i-mode (FOMA)^*3 : i-mode ARPU (FOMA) Related Revenues (monthly charges, packet transmission charges) / No. of active i-mode subscribers (FOMA)

iii)

ARPU (mova)

Aggregate ARPU (mova)=Voice ARPU (mova) + i-mode ARPU (mova)

Voice ARPU (mova) : Voice ARPU (mova) Related Revenues (monthly charges, voice transmission charges) / No. of active cellular phone subscribers (mova)

i-mode ARPU (mova)^*2 : i-mode ARPU (mova) Related Revenues (monthly charges, packet transmission charges) / No. of active cellular phone subscribers (mova)

ARPU generated purely from i-mode (mova)^*3 : i-mode ARPU (mova) Related Revenues (monthly charges, packet transmission charges) / No. of active i-mode subscribers (mova)

iv)

ARPU (PHS)

ARPU (PHS) : ARPU (PHS) Related Revenues (monthly charges, voice transmission charges) / No. of active PHS subscribers

2. Active Subscribers Calculation Methods

No. of active subscribers used in ARPU/MOU/Churn Rate calculations are sum of No. of active subscribers^*4 for each month.

Communication Module service subscribers and the revenues thereof are not included in the ARPU and MOU calculations.

The denominator used in calculating i-mode ARPU (FOMA+mova, FOMA, mova) is the aggregate number of cellular subscribers to each service (FOMA+mova, FOMA, mova, respectively), regardless of whether i-mode service is activated or not.

ARPU generated purely from i-mode (FOMA+mova, FOMA, mova) is calculated using only the number of active i-mode subscribers as a denominator.

active subscribers = (No. of subscribers at the end of previous month + No. of subscribers at the end of current month) / 2

(APPENDIX 3)

Reconciliations of the Disclosed Non-GAAP Financial Measures to

the Most Directly Comparable GAAP Financial Measures

The reconciliations for the year ending March 31, 2007 (forecasts) are provided to the extent available without unreasonable efforts.

1. EBITDA and EBITDA margin


	Billions of yen
	Year ending March 31, 2007 (Forecasts)			Year ended March 31, 2006			Year ended March 31, 2005
a. EBITDA	¥	1,601.0		¥	1,606.8		¥	1,625.7

Depreciation and amortization		(753.0	)		(737.1	)		(735.4	)
Losses on sale or disposal of property, plant and equipment		(38.0	)		(36.0	)		(45.7	)
Impairment loss		—			(1.1	)		(60.4	)

Operating income		810.0			832.6			784.2

Other income (expense)		5.0			119.7			504.1
Income taxes		(327.0	)		(341.4	)		(527.7	)
Equity in net losses of affiliates		—			(0.4	)		(12.9	)
Minority interests in earnings of consolidated subsidiaries		—			(0.1	)		(0.1	)

b. Net income		488.0			610.5			747.6

c. Total operating revenues		4,838.0			4,765.9			4,844.6

EBITDA margin (=a/c)		33.1	%		33.7	%		33.6	%
Net income margin (=b/c)		10.1	%		12.8	%		15.4	%

Note:

EBITDA and EBITDA margin, as we use them, are different from EBITDA as defined in Item 10(e) of regulation S-K and may not be comparable to similarly titled measures used by other companies.

2. ROCE after tax effect


	Billions of yen
	Year ending March 31, 2007 (Forecasts)			Year ended March 31, 2006			Year ended March 31, 2005
a. Operating income	¥	810.0		¥	832.6		¥	784.2
b. Operating income after tax effect {=a*(1-effective tax rate)} (effective tax rate:40.9%)		478.7			492.1			463.4
c. Capital employed		4,902.7			4,850.4			4,826.4

ROCE before tax effect (=a/c)		16.5	%		17.2	%		16.2	%
ROCE after tax effect (=b/c)		9.8	%		10.1	%		9.6	%


Notes:		Capital employed =		Two period ends average of (Shareholders’ equity + Interest bearing liabilities) Interest bearing liabilities = Current portion of long-term debt + Short-term borrowings + Long-term debt

3. Adjusted free cash flows


	Billions of yen
	Year ending March 31, 2007 (Forecasts)			Year ended March 31, 2006			Year ended March 31, 2005
Adjusted free cash flows	¥	280.0		¥	510.9		¥	1,003.6

Irregular factors (1)		(220.0	)		—			—
Changes of investments for cash management purposes (2)		—			149.0			(400.3	)

Free cash flows		60.0			659.9			603.3

Net cash used in investing activities		(928.0	)		(951.1	)		(578.3	)
Net cash provided by operating activities		988.0			1,610.9			1,181.6


Note:	(1)	Irregular factors represent the effects of uncollected revenues due to a bank holiday at the end of the fiscal year.
	(2)	Changes in investments for cash management purposes were derived from purchases, redemption at maturity and disposals of financial instruments held for cash management purposes with original maturities of longer than three months. Changes in investments for cash management purposes for the year ending March 31, 2007 is not forecasted due to difficulties in forecasting the effect.

4. Market equity ratio


	Billions of yen
	Year ending March 31, 2007 (Forecasts)	Year ended March 31, 2006			Year ended March 31, 2005
a. Shareholders’ equity	—	¥	4,052.0		¥	3,907.9
b. Market value of total share capital	—		8,144.9			8,766.0
c. Total assets	—		6,365.3			6,136.5

Equity ratio (=a/c)	—		63.7	%		63.7	%
Market equity ratio (=b/c)	—		128.0	%		142.8	%

Note:

Market equity ratio for the year ending March 31, 2007 is not forecasted because it is difficult to estimate the market value of total share capital in the future.

(APPENDIX 4)

Summary of the Company and Regional Subsidiaries (Japanese GAAP)


	Billions of yen
	Operating revenues		Operating income		Recurring profit		Net income
NTT DoCoMo Hokkaido, Inc.	¥	219.9	¥	27.9	¥	28.1	¥	16.7
NTT DoCoMo Tohoku, Inc.		353.0		54.8		55.0		32.8
NTT DoCoMo, Inc.		2,554.0		379.0		525.7		412.5
NTT DoCoMo Tokai, Inc.		592.3		88.7		89.0		53.2
NTT DoCoMo Hokuriku, Inc.		118.0		14.6		14.7		8.7
NTT DoCoMo Kansai, Inc.		867.6		128.8		127.9		75.8
NTT DoCoMo Chugoku, Inc.		303.3		48.8		49.2		29.3
NTT DoCoMo Shikoku, Inc.		173.5		23.0		22.9		13.6
NTT DoCoMo Kyushu, Inc.		609.5		84.6		85.1		50.6

NTT DoCoMo, Inc.

Results for the Fiscal Year

Ended March 31, 2006

April 28, 2006

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

The forecasts presented herein are forward-looking statements within the meaning of Section 27A of the U.S.

Securities Act of 1933 and Section 21E of the

U.S. Securities Act of 1934. Statements made in this presentation with respect to DoCoMo’s

plans, objectives, projected financials, operational figures,

beliefs and other statements that are not historical facts are forward-looking statements about the future performance of DoCoMo

which are based on

management’s expectations, assumptions, estimates, projections and beliefs in light of information currently available to it. These forward-looking

statements, such as statements regarding the introduction of new

products and services or termination or suspension of existing services, financial and

operational forecasts, dividend payments, the growth of the Japanese cellular market and the ubiquitous services market, the growth of data usage, the

growth of DoCoMo’s

cellular phone business, the migration of users to DoCoMo’s

3G services and associated improvements in 3G services, improvements

in 3G and 2G coverage area, the potential for growth in the Japanese credit card business and DoCoMo’s

credit business, and management goals are

subject to various risks and uncertainties that could cause actual results to be materially different from and worse than as described in the forward-looking

statements. Potential risks and uncertainties include, without limitation, as competition in the market is expected to become more fierce due to changes in

the business environment caused by the introduction of mobile number portability and new market entrants, competition from other

cellular service

providers or other technologies could limit our acquisition of new subscribers, retention of existing subscribers and average revenue per unit (ARPU), or

may lead to an increase in our costs and expenses; the new services and usage patterns introduced by our corporate group may not

develop as planned,

which could limit our growth; the introduction or change of various laws or regulations or the application of such laws and regulations to our corporate

group may adversely affect our financial condition and results of operations;

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; 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; our domestic and international investments, alliances and collaborations may not produce the returns or provide

the opportunities we expect; 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

missing 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; social problems that could be caused by misuse or misunderstanding of our products and services may adversely affect our

credibility or corporate image; inadequate handling of subscriber information by our corporate group or contractors may adversely affect our credibility

or corporate image; 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

may

also

held

liable

for

damage

compensation

infringe

the

intellectual

property

rights

others;

earthquakes,

power

shortages,

malfunctioning

equipment,

and

software

bugs,

computer

viruses,

cyber

attacks,

hacking,

unauthorized

access

and

other

problems

could

cause

systems

failures

the

networks

required

for

the

provision

service,

disrupting

our

ability

offer

services

our

subscribers

and

may

adversely

affect

our

credibility

corporate

image;

concerns

about

wireless

telecommunications

health

risks

may

adversely

affect

our

financial

condition

and

results

operations;

our

parent,

NTT,

could

exercise

influence

that

may

not

the

interests

our

other

shareholders.

Further

information

about

the

factors

that

could

affect

the

company’s

results

included

“Item

3.D:

Risk

Factors”

its

annual

report

Form

20-F

filed

with

the

U.S.

Securities

and

Exchange

Commission

June

27,

2005,

which

available

the

investor

relations

section

the

company’s

web

page

www.nttdocomo.com

and

also

the

SEC’s

web

site

www.sec.gov.

Forward-Looking Statements

FY2005 Results Highlights and

Prospects for FY2006

************************************************

****

******************************************************

***

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

FY2005 Results Highlights and FY2006 Results Forecasts

US GAAP

Consolidated financial statements in this document are unaudited.

Adjusted Free Cash Flows exclude the effects of irregular factors and changes in investments for cash management purposes.

Irregular

Factors

represent

the

effects

uncollected

revenues

due

bank

holidays

the

end

the

fiscal

year

ended

March

31,

2006

and

2005.

Changes

investments

for

cash

management

purposes

were

derived

from

purchases,

redemption

maturity

and

disposals

financial

instruments

held

for

cash

management

purposes

with

original

maturities

longer

than

three

months

For

explanation

these

numbers,

see

the

reconciliations

the

most

directly

comparable

financial

measures

calculated

and

presented

accordance

with

GAAP

Slide

and the IR page of our web site, www.nttdocomo.co.jp.

-49.1

+0.1

points

-1.2 %

-18.3 %

-26.1 %

+6.2 %

+0.3 %

-1.6 %

Changes

(1)

(2)

-0.6 points

33.1

33.7

33.6

EBITDA

Margin

(%)

-45.2 %

280.0

510.9

1,003.6

Adjusted Free Cash Flows

(Billions of yen)

+0.4 %

4,176.0

4,158.1

4,147.0

Cellular Services Revenues

(Billions of yen)

Changes

(2)

(3)

2007/3 E

(Full Year)

(3)

2006/3

(Full Year) (2)

2005/3

(Full Year)

(1)

1,601.0

488.0

815.0

810.0

4,838.0

-14.4 %

952.3

1,288.2

Income before income taxes

(Billions of yen)

-2.7 %

832.6

784.2

Operating Income

(Billions of yen)

+1.5 %

4,765.9

4,844.6

Operating Revenues

(Billions of yen)

-0.4 %

1,606.8

1,625.7

EBITDA

(Billions of yen)

-20.1 %

610.5

747.6

Net Income

(Billions of yen)

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

FY2005 Financial Results Highlights

Operating Income:

Grew to 832.6

billion yen, up 48.5 billion yen year-on-year

(Forecast: 830 billion yen)

Operating Revenues:

Decreased 78.7 billion yen year-on-year

Cellular services revenues increased 11.2 billion yen

Equipment sales revenues decreased 78.1 billion yen,

due mainly to a reduction in no. of handsets sold

Operating Expenses:

Down 127.2 billion yen year-on-year

Equipment sales-related expenses*

decreased 68 billion

yen, due mainly to a reduction in no. of handsets sold

Negative impact of 60.4

billion yen from write-off of

PHS assets incurred in FY2004

* Equipment sales-related expenses = Cost of equipment + Distributor commissions

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

FY2006 Results Forecast Highlights

Operating Income:

810 billion yen (down 23 billion YOY)

Operating Revenues:

4,838 billion yen (up 72 billion YOY)

Cellular services revenues expected to increase by approx. 18 billion yen,

due mainly to subscriber growth offsetting decline in ARPU resulting

from rate reductions.

Equipment sales revenues projected to increase by approx. 57 billion yen,

due to growth in total no. of handsets sold, and increase in FOMA’s

percentage to total handset sales.

Operating Expenses:

4,028 billion yen (up 95 billion YOY)

Equipment sales-related expenses projected to increase by approx.

58 billion yen, due to growth in no. of handsets sold, and increase in

FOMA’s

percentage to total handset sales.

Depreciation & amortization expected to increase by approx. 16 billion

yen, due to FOMA coverage expansion, etc.

(Billions of yen)

4,765.9

4,838.0

3,933.2

4,028.0

832.6

810.0

1,000

2,000

3,000

4,000

5,000

06/3

(Full year)

07/3(

Full year E)

06/3

(Full year)

07/3(Full year E)

06/3

(Full year)

07/3

(Full year E)

Operating Revenues

Operating Expenses

Operating Income

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

0.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

1.40

03/4-6(1Q)

7-9(2Q)

10-12(3Q)

04/1-3(4Q)

04/4-6(1Q)

7-9(2Q)

10-12(3Q)

05/1-3(4Q)

05/4-6(1Q)

7-9(2Q)

10-12(3Q)

06/1-3(4Q)

Lower Churn Rate

Down

0.21

points

Successfully

maintained

churn

rate

low,

0.75%

FY2005/4Q

Inclusive of Communication Module Service subscribers

(%)

FY2003

FY2004

FY2005

Full-year churn rate: 1.21%

Full-year churn rate: 1.01%

Full-year churn rate: 0.77%

0.75

0.96

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Monthly Market Share of Net Additions

-40.0

-20.0

0.0

20.0

40.0

60.0

80.0

03/4

1204/1

1205/1

(%)

KDDI(au+TU-KA)

Vodafone

Source of data used in calculation : Telecommunications Carriers Association (TCA)

FY2003

FY2004

FY2005

DoCoMo

acquired No.1

market share of net additions in

FY2005 at 48.4%

Market share of

net adds in FY2005: 48.4%

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Subscriber Migration from mova

to FOMA

03/3

03/6

03/9

03/12

04/3

04/6

04/9

04/12

05/3

05/6

05/9

05/12

06/3

07/3

(

)

(million subscribers)

mova

51.14

No. of FOMA subs: 23.46 million (45.9% of total cellular subs) as of 06/3/31

projected 35 million (66.2% of total cellular subs) as of 07/3/31

52.9

Inclusive of Communication Module Service subscribers

Numbers in parentheses indicate percentage of FOMA subscribers to total cellular subscribers

Migration to

FOMA is

expected to peak

FY2005:

+11.96 million

FY2006(E):

+11.54 million

FY2006

(E)

FY2005

FOMA

2/3

of total

35.0

(66.2%)

23.46

(45.9%)

3.05

(6.6%)

0.33

(0.7%)

11.50

(23.6%)

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

100

120

140

160

-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

MOU

(

Left axis

)

152

155

153

145

149

152

151

146

Year-on-year decline in MOU (%) (right axis)

-6.2

-3.7

-4.4

-5.8

-2.0

-1.9

-1.3

0.7

04/4-6(1Q)

04/7-9(2Q)

04/10-12(3Q)

05/1-3(4Q)

05/4-6(1Q)

05/7-9(2Q)

05/10-12(3Q)

06/1-3(4Q)

(%)

(Minutes)

Cellular (FOMA+mova) MOU

For an explanation of MOU, see Slide 36 of this document, “Definition and Calculation Methods of MOU and ARPU”.

Year-on-year decline in MOU has shown a constant slowdown in FY2005

MOU for FY2005/4Q recovered to a level comparable to FY2004/4Q

Full-year MOU: 151 min

(Down 5.0% YOY)

Full-year MOU: 149 min

(Down 1.3% YOY)

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

(%)

(Yen)

7,400

7,340

7,170

6,920

6,940

6,910

Cellular (FOMA+mova) ARPU

International service-related revenues,

which

had

not

been

included

reports,

have

been

included

the

ARPU

data

calculations

from

the

fiscal

year

ended

Mar.

31,

2006,

view

their

growing

contributions to total revenues.

For an explanation of ARPU, see Slide 36 of this document, “Definition and Calculation Methods of MOU and ARPU”.

7,050

6,920

6,690

Year-on-year decline in aggregate ARPU has slowed constantly in FY2005

Aggregate ARPU for FY2006 is estimated at 6,690 yen (down 3.2% year-on-year)

factoring in the impact from lifting “pake-houdai”

subscription restrictions

Full-year aggregate ARPU: 7,200 yen

(Down 8.7% YOY)

Full-year aggregate ARPU : 6,910 yen

(Down 4.0% YOY)

6,720

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

-10.0

-9.0

-8.0

-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

Packet ARPU (left axis)

1,950

1,900

1,820

1,830

1,820

1,880

1,940

1,880

1,930

(Incl.) i-mode ARPU

1,940

1,890

1,810

1,820

1,810

1,870

1,860

1,920

1,870

1,910

Voice ARPU (left axis)

5,450

5,440

5,350

5,090

5,120

5,170

5,040

4,780

5,030

4,760

International service ARPU

20 (excl.)

20(excl.)

30(excl.)

30(incl.)

40(incl.)

60(incl.)

YOY decline in aggregate ARPU (%) (right axis)

-8.2

-9.3

-8.3

-9.1

-6.2

-4.0

-3.5

-2.9

-4.0

-3.2

04/4-6(1Q)

04/7-9(2Q)

04/10-12(3Q)

05/1-3(4Q)

05/4-6(1Q)

05/7-9(2Q)

05/10-12(3Q)

06/1-3(4Q)

06/3(Full year)07/3(Full year E)

Business Strategies for FY2006

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Three Main Pillars of Business Operation in FY2006

Strengthen

Core Business

Even Further

Create

New Revenue

Sources

Facilitate

Cost

Reduction

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Strengthen Core Business Even Further (1)

Pricing

Measures

Reinforce DoCoMo’s

competitiveness through “customer-oriented”

billing plans

2005/12

2006/3

20%

25%

30%

35%

40%

“New Billing Plan”

subscribers

“New Billing Plan”

subscription rate:

No. of “New Billing Plan”

subs/DoCoMo’s

total cellular subs (excl. Communication Module Service subs)

11.28

18.86

As of Mar. 31, 2006

18.86

mil subs

(“New Billing Plan”subscription rate: 37%)

“New Billing Plan”

subscription rate *(right axis)

“pake-houdai”

subscription rate: No. of “pake-houdai”

subs/Total no. of FOMA subs

2005/3

2005/6

2005/9

2005/12

2006/3

0%

5%

10%

15%

20%

25%

30%

“pake-houdai”

subscribers

(million subs)

“pake-houdai”

subscription rate*

(right axis)

5.59

As of Mar. 31, 2006

5.59 mil subs

(“pake-houdai”

subscription rate: 24%)

Lifted “pake-houdai”

subscription

restrictions from

March 2006

Packet Flat-Rate

Service

pake-houdai

Subscriber

(left axis)

Subscriber

(left axis)

(Subscription rate: %)

Excl)

Approx. 0.4 mil

applications

(million subs)

(Subscription rate: %)

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

% of new subscribers

to total no. of

“Kids' PHONE”

sold:

90%

(As of March 2006)

Strengthen Core Business Even Further (2) Products/After-Sales Services

Enrich FOMA’s

handset lineup/service portfolio tailored to user needs

Reinforce after-sales support to achieve better customer satisfaction

Enrich handset lineup

Reinforce after-sales support

High-end models

FOMA “902i”

series

Standard models

FOMA “702i”

series

Simple functionality model

SIMPURE

series

Respond to users’

diversified needs

Contribute to lower procurement

costs by optimizing product mix

Concept models

One-segment broadcast-enabled

phone: P901iTV

Environment-friendly phone:

N701iECO

Handsets

designed for child’s use

and safety protection:

“Kids' PHONE”

SA800i

Cumulative no. of free-of-charge

battery packs provided: Approx. 1.4 million

(Feb. 22, 2005 ~ Mar. 31, 2006)

Extended free warranty period of handset, etc.

Membership of

DoCoMo

Premier Club

38.4million

(As of Mar. 31, 2006)

DoCoMo

Premier Club Programs

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

10,000

20,000

30,000

40,000

05/3

05/6

05/9

05/12

06/3

06/9(E)

07/3(E)

5,000

10,000

15,000

20,000

24,000

3,800

6,400

16,200

34,800

9,400

Strengthen Core Business Even Further (3) Network

Plan to spend 905 billion yen in CAPEX in FY2006 in a continuous

effort to expand/improve FOMA’s

coverage and quality

+2.0 %

905.0

+3.0 %

887.1

861.5

Capital expenditures

(Billions of yen)

Changes

(2)

(3)

2007/3

(Full year

forecast)

(3)

Changes

(1)

(2)

2006/3

(full year) (2)

2005/3

(full year) (1)

(No. of outdoor base stations)

FOMA outdoor base stations/indoor systems

(No. of indoor systems)

No. of outdoor

base stations

(left axis)

No. of indoor systems

(right axis)

Construct sufficiently

competitive network

in view of scheduled

introduction of mobile

number portability

(build coverage

superior to mova’s)

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Start service in Metropolitan Tokyo

(23 wards), and gradually

expand coverage thereafter

Projected nationwide POP

coverage as of Mar. 31, 2007:

Approx. 70%

Service area

Strengthen Core Business Even Further (4) HSDPA

Service details described above are plans as of today

Upgrade 3G network to improve FOMA’s

attractiveness

Planned service launch

Summer 2006

3.6Mbps

(downlink)

384kbps

(uplink)

Max. transmission speed

(at service launch)

Allow all FOMA users

to use service

(HSDPA-compatible handset required)

Billing plan:

common with FOMA

Contract structure

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Create New Revenue Sources (1) Mid-Term Business Directions

* non-invested alliance

Accelerate cellular service’s transformation into a “lifestyle infrastructure”

leveraging the synergies of core and new businesses

Achieve “third growth”

after first and second phases of growth led by

telecommunications/IT infrastructure businesses

Current

Core Business

Rakuten

Auction

Mobile

ACCESS

Aplix

(4)

Global business

(3)

Content/

Internet business

(5)

Mobile-related peripheral business

KT Freetel

Guam Cellular

Guam Wireless

PLDT

Asia Pacific Mobile Alliance

(tentative name)

(1) Payment/commerce

Sumitomo Mitsui Card

UC Card

(2) Broadcast

Fuji Television

Nippon Television

(LLP)

AEON*

FamilyMart*

East Japan Railway

(LLP)

Renesas

Technology*

TI*

am/pm

Lawson

Tower Records

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

04/9

04/12

05/3

05/6

05/9

05/12

06/3

06/6

06/9

06/12

07/3

Purchases paid by credit cards have

grown steadily over last several years

1997

1999

2001

2003

2005

trillion yen

Growth potential is even higher, when

compared by the % of credit card payments to

total consumer spending

trillion yen

If credit card usage rises to the US level of 24% of total

consumer spending, the credit card market expands by

+45

trillion

yen

24%

Japan’s credit card market offers

great potential for expansion

(million subscribers)

Projected user count

as of Mar. 31, 2007

18 million

Rapid growth of

i-mode FeliCa

uptake

Create New Revenue Sources (2) Credit Card Business -1

Cumulative credit lines awarded

(for Shopping)

(Reference) Size of small payment market in Japan

Approx. 57 trillion yen

(Market size of small amount payments of 3,000 yen or less)

No. of i-mode FeliCa

enabled handset users

(as of Mar. 31, 2006) :

11.8

million

Mobile “Edy”

service

launched Jul. 10, 2004

Mobile “Suica”

service

launched Jan. 28, 2006

No. of installed

reader/writer machines

(As of Mar. 31, 2007, forecast)

150,000

Source:

DoCoMo’s

IR presentation material published April 4, 2006, entitled “DoCoMo

launched mobile credit service”

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Create New Revenue Sources (2) Credit Card Business -2

Increase uptake of i-mode

FeliCa-enabled phones

Increase

reader/writer

installations

Reinforce

competitiveness

(customer retention, etc.)

Prolong handset

replacement cycle

FeliCa

Networks

Sumitomo

Mitsui

Card

UC Card

Investee’s

business

New service deployment

(Promotion, advertisement, etc)

DCMX

Immediate aim:

acquirement of

10 million users

Credit Card Business

No. of installed

reader/writer

machines

as of Mar. 31, 2007:

150,000 (forecast)

In addition to expanding the size of credit payment business, we aim to maximize

the enterprise value of investees, and develop new services leveraging the

increased uptake of FeliCa-enabled handsets and reader/writer machines

Strengthen our competitiveness in our core business, and prolong handset

replacement cycle

Synergy Effect to

Core Business

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Create New Revenue Sources (3) Enrich International Services

04/3(Full year)

05/3(Full year)

06/3(Full year)

07/3(Full year E)

120

160

200

Full year

forecast

DoCoMo’s

roaming coverage:

Percentage of Japanese travelers

traveling to countries/regions where

DoCoMo’s

voice roaming service is

provided to total Japanese travelers

(Calculated based on JNTO data)

Added variety of GSM/FOMA dual-mode handsets

N900iG, M1000, NM850iG, SIMPURE

series

Expanded roaming destinations

(As of Mar. 31, 2006)

Voice roaming: 132 countries/regions

i-mode roaming: 69 countries/regions

Increased handset rental counters

DoCoMo

Shops (nationwide), DoCoMo

World Counter Hawaii

Affordable pricing structure

Reduced “WORLD CALL”

international dialing charges, etc.

Establishment of “Asia Pacific Mobile Alliance”

(tentative name)

Aimed at strengthening for global roaming and corporate service

International

service revenues

(right axis)

International service revenues have grown steadily in line with the increase

of roaming destinations/roaming-enabled handset models

Countries/regions where

international roaming (voice)

is provided (left axis)

(Countries/regions)

International service revenues:

Int’l dialing + Int’l roaming service revenues

DoCoMo’s

roaming

coverage*

99.9%

(As of Mar. 31, 2006)

(Billions of yen)

3G roaming coverage

44.0%

55.4%

(Mar. 31, 06)

(Mar. 31, 07 E)

India

Singapore

Indonesia

Guam

(Guam

Wireless)

Hong

Kong

Korea

Japan

Taiwan

The Philippines

“Asia Pacific Mobile Alliance”

operator

DoCoMo’s

investee

& “Asia Pacific Mobile Alliance”

operator

DoCoMo’s

investee

Improved roaming

service has

resulted in a sharp

growth in international

service revenues

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Create New Revenue Sources (4) Boost Usage

User base of push information delivery service (“i-channel”+“Tokudane

News-bin”) is rapidly expanding and expected to top 5 million

by Mar. 31, 2007

05/9

05/10

05/11

05/12

06/1

06/2

06/3

07/3(E)

“Tokudane”

News-bin

User base of push info.

delivery service grew 3-fold

Further expand

user base

Increase variety of

compatible handsets

Currently marketed

compatible handsets:

701, 702,

902

series, etc.

(Total 18 models)

FY2006(Planned):

Add more compatible models

primarily in the 90X & 70X

series

Enrich content

Different content offering by

DoCoMo

regional subsidiaries

Content display tailored to

middle-aged & elder users

Add variety to

“My Favorite Channel”

content

Topped 2 million in

7 months

after launch of

“i-channel”

(Subscription rate*: 43.5%)

Growth of push information

delivery service subscribers

(million subscribers)

Subscription rate: No. of

“i-channel”

subscribers/Total users of compatible handsets

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

2005/3

(

Full year

)

2006/3

(

Full year

)

2007/3

(

Full year E

)

82%

88%

94%

100%

106%

112%

Facilitate

Cost Reduction

(1) Distributor Commissions

Lower FOMA handset costs

Single-chip CPUs, common

platform, etc.

Introduce foreign vendors’

handsets

Utilize committed purchase volume

Optimize product mix

Offer handset models tailored to different

user segments

High-end

90X

series

Standard

70X

series

Simple

“SIMPURE”

series

Prolong replacement cycle

Improve after-sales service to DoCoMo

Premier Club members, e.g.,

free-of-charge battery packs, etc.

Promote use of i-mode FeliCa

Streamline distribution channel

Improve efficiency of logistics,

review shop distribution, etc.

(million subscribers)

Changes in FOMA

handset

procurement cost

per unit

(right axis)

100%

94%

(Changes)

FOMA

handset procurement

cost per unit for 2005/3

100%

Steadfast progress in

subscriber migration

to FOMA

Increase in FOMA

handsets sales

No. of mova

subscriber (left axis)

No. of FOMA subscriber (left axis)

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Facilitate

Cost Reduction

(2) Network

Improve efficiency of access

network

Reduce equipment costs

Use more economical

equipment

(Diversify lineup of base station

equipment)

Reduce engineering

entrustment costs

Improve efficiency of core

network

Convert network into IP-based

Integrate network equipment

Expand capacity of network

equipment

FOMA quality

enhancement

Increase FOMA

base stations

100%

(No. of outdoor base stations)

¦n
No. of FOMA outdoor 

base stations (left axis)

FOMA outdoor base station cost per unit:

Total FOMA outdoor base station investment in applicable year (new contraction)/

Total no. of FOMA outdoor base stations installed in applicable year

93%

10,000

20,000

30,000

40,000

2005/3

(Full year)

2006/3

(Full year)

2007/3

(Full year E)

60%

80%

100%

120%

Changes in FOMA

outdoor base

station cost per

unit *

(right axis)

(Changes)

FOMA

outdoor base station

cost per unit for 2005/3

100%

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Planned Network Evolution

Downlink transmission speeds

(bps)

Evolve mobile phone service by upgrading network capabilities

Boost competitiveness by further enriching service portfolio, and offering richer

content and more attractive handsets

Cost reduction and more efficient use of radio resources by improving the efficiency

of radio network

2000

2005

2010

WCDMA

HSDPA

HSUPA

S3G

Wideband Code Division Multiple Access

High Speed Downlink Packet Access

High Speed Uplink Packet Access

Super 3G

100M

10M

100k

WCDMA

S3G

HSDPA

New radio

system

HSUPA

3G & Enhanced 3G

Applied for WiMAX

outdoor trial license

Plan to carry out verification trials in view of

diversification of wireless broadband data

communication services in the future

Extension of

cellular

technology

(Assumed data rates: Up to several tens of Mbps)

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Dividend per share: 4,000

yen

(Maintain a level comparable to the dividend for FY ended Mar. 31, 2006, when it was doubled from the

previous fiscal year)

Repurchase of own shares: Plan to seek authorization to repurchase up to 1.4 million

shares for up to 250 billion yen at 15th ordinary meeting of shareholders in Jun. 2006.

Return to Shareholders

Returning profits to shareholders is considered one of the most

important issues in our corporate agenda

FY ending Mar. 31, 2007 (planned)

300.1

425.2

394.9

Repurchase of own shares

(Billions of yen)

(2)

178.2*

93.0

73.3

Total dividend (Billions of yen)

(1)

(4,000 yen)*

(2,000 yen)

(1,500 yen)

Incl. ¥500 commemorative dividend

(dividend per share)

(1.8mil shares)

(2.32 mil shares)

(1.58 mil shares)

(No. of shares repurchased)

478.2*

518.3

468.2

Total (Billions of yen)

(1)+(2)

Planned

1.89 mil shares

1.48 mil shares

No. of canceled treasury shares

FY ended

Mar. 31, 2006

FY ended

Mar. 31, 2005

FY ended

Mar. 31, 2004

Track record

Appendices

******************************************************

* * *

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Operating Revenues

US GAAP

1,000

2,000

3,000

4,000

5,000

6,000

Equipment sales

548.1

470.0

527.0

Other revenues

89.3

96.8

114.0

PHS services revenues

60.3

40.9

21.0

Cellular services revenues (voice, packet)

4,147.0

4,158.1

4,176.0

2005/3 (Full-year)

2006/3 (Full-year)

2007/3E (Full-year)

4,844.6

FY2005 Operating

Revenues

Compared to FY2004

-1.6%

(Wireless Services Revenues)

Compared to FY2004

+0.3%

(Equipment Sales Revenues)

Compared to FY2004

-14.2%

14.2%

.2%

(billions of yen)

“Quick

services

revenues”

are

included

“Other

revenues”

and

international

services

revenues

are

included

“Cellular

services

revenues”.

4,765.9

4,838.0

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

1,000

2,000

3,000

4,000

5,000

Personnel expenses

251.4

250.3

252.0

Taxes and public dues

36.1

36.7

37.0

Depreciation and amortization

735.4

737.1

753.0

Impairmanent

loss

60.4

1.1

Loss on disposal of property, plant and equipment and

intangible assets

65.5

54.7

52.0

Communication network charges

372.4

368.5

370.0

Non-personnel expenses

2,539.2

2,484.8

2,564.0

(

incl.

)

Revenue-linked expenses*

1,817.9

1,758.5

1,826.0

(

incl.

)

Other non-personnel expenses

721.3

726.4

738.0

2005/3 (Full-year)

2006/3 (Full-year)

2007/3E (Full-year)

Operating Expenses

US GAAP

(billions of yen)

“Revenue-linked

expenses”

cost

equipment

sold

distributor

commissions

cost

DoCoMo

Point

Service

4,060.4

3,933.2

4,028.0

FY2005 Operating

Expenses

Compared to FY2004

-3.1%

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

100

200

300

400

500

600

700

800

900

1,000

Other (information systems, etc.)

160.0

136.6

150.0

PHS business

4.8

1.1

1.0

Mobile phone business (FOMA)

529.3

602.4

639.0

Mobile phone business (i-mode, etc.)

34.6

29.0

32.0

Mobile phone business (mova)

57.7

36.8

17.0

Mobile phone business (transmission line)

75.1

81.2

66.0

2005/3 (Full-year)

2006/3 (Full-year)

2007/3E (Full-year)

(billions of yen)

“Quickcast

business”

is included in “Other (information systems, etc.)”.

Capital Expenditures

861.5

887.1

905.0

FY2005 CAPEX

Compared to FY2004

+3.0%

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

International service-related revenues, which had not been included in previous reports, have been included in the ARPU data calculations from this

fiscal year ending Mar. 31, 2006, in view of their growing contribution to total revenues.

For an explanation of MOU and ARPU, see Page 36 in this document, “Definition and Calculation Methods of MOU and ARPU”.

2,000

4,000

6,000

8,000

10,000

12,000

180

190

200

210

220

230

240

Packet ARPU (left axis)

3,660

3,280

3,190

3,170

3,100

3,080

2,990

2,930

3,020

2,700

(incl.) i-mode ARPU

3,590

3,230

3,150

3,130

3,070

3,050

2,960

2,910

2,980

2,660

Voice ARPU (left axis)

6,580

6,610

6,460

6,110

5,990

5,970

5,660

5,330

5,680

5,090

International service-related ARPU

60(incl.)

70(incl.)

80(incl.)

MOU (right axis)

230

239

234

219

214

211

201

188

202

04/4-6(1Q)

04/7-9(2Q)

04/10-

12(3Q)

05/1-3(4Q)

05/4-6(1Q)

05/7-9(2Q)

05/10-

12(3Q)

06/1-3(4Q)

06/3

(Full-year)

07/3E

(Full-year)

10,240

9,890

9,650

9,280

9,090

8,700

(Minutes)

(Yen)

FOMA

ARPU

and MOU Trends

9,050

8,650

7,790

8,260

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

International service-related revenues, which had not been included in previous reports, have been included in the ARPU data calculations from this

fiscal year ending Mar. 31, 2006, in view of their growing contribution to total revenues.

For an explanation of MOU and ARPU, see Page 36 in this document, “Definition and Calculation Methods of MOU and ARPU”.

2,000

4,000

6,000

8,000

110

120

130

140

150

i-mode ARPU (left axis)

1,800

1,710

1,560

1,470

1,370

1,330

1,230

1,170

1,290

920

Voice ARPU (left axis)

5,350

5,280

5,150

4,830

4,820

4,810

4,680

4,370

4,680

4,320

International service-related ARPU

20(incl.)

30(incl.)

20(incl.)

30(incl.)

40(incl.)

MOU (right axis)

145

143

138

126

125

122

113

122

04/4-6(1Q)

04/7-9(2Q)

04/10-

12(3Q)

05/1-3(4Q)

05/4-6(1Q)

05/7-9(2Q)

05/10-

12(3Q)

06/1-3(4Q)

06/3

(Full-year)

07/3E

(Full-year)

7,150

6,990

6,710

6,300

6,190

5,970

mova

ARPU

and MOU Trends

6,140

5,910

5,240

5,540

(Minutes)

(Yen)

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Operational Results and Forecasts

47,900

5.3

46,360

44,021

i-mode

Other*

Migration

from mova

New

Replace

New

PHS

FOMA

mova

Communication Module Service

FOMA

mova

MOU

(minutes)

ARPU

(yen)

No. of subscribers (1,000)

Churn rate

Handsets sold

(1,000)

(Including handsets

activated without

involving sales by

DoCoMo)

Market share (%)

No. of subscribers (1,000)

-57.7

4,517

10,687

-53.2

2,557

5,458

-0.4

points

55.7

56.1

990

22.3

665

544

35,000

104.0

23,463

11,501

17,900

-25.8

27,680

37,324

52,900

4.7

51,144

48,825

-2.4

3,280

3,360

2007/3E

(Full-year)

Changes

(1)

(2)

2006/3

(Full-year)

(2)

2005/3

(Full-year) (1)

320

331.6

4,019

931

45.2

9,376

6,458

50.5 %

4,561

3,030

-12.2

-41.3

771

1,314

-0.24

points

0.77

1.01

*Other

includes

purchase

additional

handsets

existing

FOMA

subscribers.

Communication

Module

Service

subscribers

are

included

the

no.

cellular

subscribers

align

the

calculation

method

subscribers

with

other

cellular

phone

carriers.

(Market

share,

the

no.

handsets

sold

and

churn

rate

are

calculated

inclusive

Communication

Module

Service

subscribers.)

For

explanation

MOU

and

ARPU,

please

see

page

this

document,

“Definition

and

Calculation

Methods

MOU

and

ARPU”.

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Enriched FOMA Handset Lineup

Expand FOMA’s

uptake by adding handset models tailored to

diversified user needs

Music handset compatible with “MobaHO!”:

MUSIC PORTER X

Foreign vendors handsets for lower handset

procurement costs: “SIMPURE”

series

(e.g., LG Electronics, Korea)

HSDPA

available handset

Windows Mobile OS phone (HTC, Taiwan)

Enrichment of 70X

and 90X

series

Compatible with “MobaHo!”

service

Built-in 1GB

memory

Music-oriented phones

FY2005 Fourth

Quarter

FY2006

and Beyond

State-of-the-art

models for

high-end users

Niche models to

cater to

diversified needs

Design-oriented

FOMA standard

models

702i

P901iTV

Kids'

PHONE

SA800i

MUSIC

PORTER

Windows

MobileOS

Phone

NM850iG

SO902i

3/21

3/3

2/24~

3/4

3/17

4/8

90X

series

N701i

ECO

3/10

Simple functionality phone

Global roaming-enabled

Niche

models

SIMPURE

4/14~

Brush up 702i series

70X

series

Brush up 902i series

90X

series

High-speed data access

Compatible with new

services

HSDPA

Depends

handset

70X

series

Designer collaboration: 702i

series

One-segment broadcast-enabled handset:

P901iTV

“Kids' PHONE”

child-friendly phone: SA800i

GSM dual-mode handset: NM850iG

Environment-conscious material handset:

N701iECO

Depends

handset

Depends

handset

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

DCMX Credit Service

Simple sign up procedures via i-mode

(3 steps)

Provides credit line for shopping up to

10,000

yen per month

Billed together with monthly phone bills

Usage log can be confirmed via i-mode

DCMX

mini

Service provided only on

mobile phones (iD)

For higher credit lines (200,000 yen+)

Plan to add cashing function, too

Plastic cards of international brands

(VISA/MASTER(planned))will also be issued

Linked with “DoCoMo

Point”

service

Applicants need to fill in required items

via i-mode or PC sites, and credit card

will be sent after screening process

DCMX

Service on mobile phones (iD)

International brand (VISA/MASTER(planned))

plastic card

Expanding uptake of mobile credit service “iD”

No of iD

R/W decided for

installation

(As of Apr. 3, 2006)

320,000 units

No. of iD

R/W planed

for installation

(within CY2006)

100,000

(within FY2006)

150,000

Service overview

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Released “Kids' PHONE”

(FOMA SA800i) equipped with alarm, GPS

positioning and many other safety features (Mar. 2006)

“DoCoMo

“Keitai

Safety School”

for safe phone usage

(600 events at elementary/junior/senior high schools and local

communities nationwide)

Measures against cellular phone viruses, development of security

technologies

Stepped up measures to eliminate unwanted bulk emails

Actions for

cellular-related

social issues

Corporate Social Responsibility (CSR)

Established “NTT DoCoMo

Group Code of Ethics”, the fundamental ethical standard to be

shared and observed by all employees to ensure lawful business operations (Apr. 2005)

Launched “Anshin”

mission, a campaign aimed at realizing a safe and secure

society (Jun. 2005~)

Published “CSR Report”

for disclosure of CSR activities (Aug. 2005)

Won “excellent company”

award of the “15th

Grand Prize for the Global

Environment Award”

(Feb. 2006)

Operated

“i-mode

Disaster

Message

Board”

service

(2005 Miyagi off-shore earthquake, Typhoon No. 14, etc.)

Provided donations to disaster-stricken areas following Hurricane

Katrina (Sept. 2005), Pakistan earthquake (Oct. 2005) and Leyte

mudslide, the Philippines (Mar. 2006)

Disaster

rehabilitation

support

Released

world’s

first

bio-plastic

handset

reinforced

with

kenaf

fiber,

FOMA “N701iECO”

(Mar. 2006)

Promoted collection/recycling of used phones & accessories

“DoCoMo

Woods”

forestation campaign in 28 locations in Japan and

overseas (Aomori Pref. (Oct. 2005), Aichi & Fukuoka Pref. (Nov. 2005))

Environment

conservation

activities

DoCoMo

Keitai

Safety

School

FOMA “N701iECO”

i-mode Disaster

Message Board Service

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Definition and Calculation Methods of MOU and ARPU

MOU

(Minutes

usage):

Average

communication

time

per

one

month

per

one

user.

ARPU

(Average

monthly

Revenue

Per

Unit):

ARPU

used

measure

average

monthly

revenues

attributable

designated

services

per

user

basis.

ARPU

calculated

dividing

various

revenue

items

included

operating

revenues,

such

monthly

charges,

voice

transmission

charges,

and

packet

transmission

charges

from

designated

services,

the

number

active

subscribers

the

relevant

services.

Accordingly,

the

calculation

ARPU

excludes

revenues

that

are

not

representative

monthly

average

usage

such

activation

fees.

believe

that

our

ARPU

figures

calculated

the

above

way

provide

useful

information

regarding

the

monthly

usage

our

subscribers.

The

revenue

items

included

the

numerators

our

ARPU

figures

are

based

our

GAAP

results

operations.

Aggregate

ARPU

(FOMA+mova):

Voice

ARPU

(FOMA+mova)

Packet

ARPU

(FOMA+mova)

Voice

ARPU

(FOMA+mova)

Voice

ARPU

(FOMA+mova)

Revenues

(monthly

charges,

voice

transmission

charges)

No.

active

cellular

phone

subscribers

(FOMA+mova)

Packet

ARPU

(FOMA+mova):

{Packet

ARPU

(FOMA)

Revenues

(monthly

charges,

packet

transmission

charges)

i-mode

ARPU

(mova)

Revenues

(monthly

charges,

packet

transmission

charges)}

No.

active

cellular

phone

subscribers

(FOMA+mova)

i-mode

ARPU

(FOMA+mova)

i-mode

ARPU

(FOMA+mova)

Revenues

(monthly

charges,

packet

transmission

charges)

No.

active

cellular

phone

subscribers

(FOMA+mova)

Aggregate

ARPU

(FOMA):

Voice

ARPU

(FOMA)

Packet

ARPU

(FOMA)

Voice

ARPU

(FOMA):

Voice

ARPU

(FOMA)

Revenues

(monthly

charges,

voice

transmission

charges)

No.

active

cellular

phone

subscribers

(FOMA)

Packet

ARPU

(FOMA):

Packet

ARPU

(FOMA)

Revenues

(monthly

charges,

packet

transmission

charges)

No.

active

cellular

phone

subscribers

(FOMA)

i-mode

ARPU

(FOMA)

i-mode

ARPU

(FOMA)

Revenues

(monthly

charges,

packet

transmission

charges)

No.

active

cellular

phone

subscribers

(FOMA)

Aggregate

ARPU

(mova)

Voice

ARPU

(mova)

i-mode

ARPU

(mova)

Voice

ARPU

(mova):

Voice

ARPU

(mova)

Revenues

(monthly

charges,

voice

transmission

charges)

No.

active

cellular

phone

subscribers

(mova)

i-mode

ARPU

(mova)

i-mode

ARPU

(mova)

Revenues

(monthly

charges,

packet

transmission

charges)

No.

active

cellular

phone

subscribers

(mova)

Number

active

subscribers

used

ARPU

and

MOU

calculations

are

follows:

Quarterly

data:

sum

“No.

active

subscribers

each

month”

the

current

quarter

Half-year

data:

sum

“No.

active

subscribers

each

month”

the

current

half

Full-year

data:

sum

“No.

active

subscribers

each

month”

the

current

fiscal

year

“No.

active

subs.

each

month”:

(No.

subs

end

month

+No.

subs

end

current

month)/2

Communication

Module

Service

subscribers

are

not

included

the

above

calculation

ARPU,

MOU,

revenues

and

no.

subscribers.

/37

Results for FY2005

2005|APRIL

to 2006|MARCH

SLIDE No.

Reconciliations of the Disclosed Non-GAAP Financial Measures to

the Most Directly Comparable GAAP Financial Measures

EBITDA and EBITDA margin

Billions of yen

Year ending

March 31, 2007

(Forecasts)

Year ended

March 31, 2006

Year ended

March 31, 2005

a. EBITDA

¥ 1,601.0

¥ 1,606.8

¥ 1,625.7

(753.0)

(737.1)

(735.4)

(38.0)

(36.0)

(45.7)

(1.1)

(60.4)

810.0

832.6

784.2

5.0

119.7

504.1

(327.0)

(341.4)

(527.7)

(0.4)

(12.9)

(0.1)

488.0

610.5

747.6

4,838.0

4,765.9

4,844.6

33.1%

33.7%

33.6%

10.1%

12.8%

15.4%

Note:

Adjusted free cash flows

Billions of yen

Year ending

March 31, 2007

(Forecasts)

Year ended

March 31, 2006

Year ended

March 31, 2005

¥ 280.0

¥ 510.9

¥ 1,003.6

(220.0)

149.0

(400.3)

60.0

659.9

603.3

(928.0)

(951.1)

(578.3)

988.0

1,610.9

1,181.6

Note:

Minority interests in earnings of consolidated subsidiaries

c. Total operating revenues

EBITDA margin (=a/c)

Equity in net losses of affiliates

b. Net income

Net income margin (=b/c)

EBITDA and EBITDA margin, as we use them, are different from EBITDA as defined in Item 10(e) of regulation S-K and may not be comparable to similarly

titled measures used by other companies.

Depreciation and amortization

Operating income

Other income (expense)

Income taxes

Losses on sale or disposal of property, plant and equipment

Impairment loss

Adjusted free cash flows

(2) Changes in investments for cash management purposes were derived from purchases, redemption at maturity and disposals of financial instruments

held for cash management purposes with original maturities of longer than three months. Changes in investments for cash management purposes for

the year ending March 31, 2007 is not forecasted due to difficulties in forecasting the effect.

Irregular factors (1)

Changes of investments for cash management purposes (2)

Free cash flows

Net cash used in investing activities

Net cash provided by operating activities

(1) Irregular factors represent the effects of uncollected revenues due to a bank holiday at the end of the fiscal year.

“FOMA”

, “mova”, “Quickcast”, “i-mode”, “pake-houdai”

, “iD”, “DCMX”, “ToruCa”, “i-channel”, “PushTalk”, “WORLD CALL”, “DoCoMo

Premier Club”, “Fami-wari

Wide”, “Kids' keitai”, “SIMPURE”, and

“MUSIC PORTER X”

are trademarks or registered trademarks of NTT DoCoMo, Inc.

Other names of companies or products presented in this material are trademarks or registered trademarks of their respective organizations.