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NTT DoCoMo, Inc. (DCM)
F4Q 2011 Earnings Call
April 28, 2011 4:00 AM ET
Osamu Hirokado – IR
Ryuji Yamada – President and CEO
Daisaku Masuno – Nomura Securities
Tetsuro Tsusaka – Barclays Capital
Kei Takahashi – Merrill Lynch Japan Securities
Atsuo Takahashi – Mizuho Securities
Shinji Moriyuki – SMBC Nikko Securities
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Please be advised that this meeting is broadcast live on FOMA and also on the Internet. Also the recorded video will be provided on DOCOMO’s IR site for on-demand distribution. Now we would like to present the participants from NTT DOCOMO. First we have Mr. Ryuji Yamada, President and CEO; next Kiyoyuki Tsujimura, Senior Executive Vice President; we also have Mr. Masatoshi Suzuki, Senior Executive Vice President; next is Executive Vice President for Consumer Marketing, Mr. Bunya Kumagai; we also have the Executive Vice President for Accounts and Finance Department and CFO Mr. Kazuto Tsubouchi; and we also have Executive Vice President and Managing Director of Corporate Strategy & Planning Department, Mr. Kaoru Kato; and finally, we also have the Executive Vice President and Managing Director of Network, Mr. Fumio Iwasaki.
For today’s meeting we will like to use four sets of documents, the earnings release and three sets of presentations, one entitled Great Eastern Japan Earthquake: Damage and Restoration Status, New Disaster Preparedness Measures and the results for the fiscal year ended March 2011 and a principal action plan for the fiscal year ending March 2012.
First we will have a presentation from Mr. Yamada, President and CEO followed by a Q&A session. We would like to finish this meeting at 6:00, but because we are going to have three presentations for this meeting, so we may have to anticipate some extension. Please bear with us till the end. Now there are forward-looking statements included in the presentation as well as a Q&A session. For those potential risks please see the presentation and Form 20F filed with the SEC.
Now without further ado, I would like to call Mr. Yamada.
I am Yamada, thank you very much for taking your busy schedule to attend this meeting. I would like to also take this opportunity to express my gratitude for your continued support to the company. On March 11, there was the occurrence of a great East Japan Earthquake, an ever since we have inconvenienced our customers, we are very sorry for that.
We would like to restore our facilities at the earliest possible timing, and as of today we have nearly completed all of our service areas restorations. So I would like to explain the details regarding the recovery status as well as the damages incurred by the earthquake, also the new measures, new preparedness measures will also be introduced. Because we have so many documents to cover I will try to speak as quickly as possible.
Now without further ado, I would like to start with the damage and restoration status presentation. Page 3. This is the restoration status of the service areas. As of March 12, we 4,900 base stations were damaged or disrupted but as of 26 of April, as you can see on the right hand side of the page, most of them have been recovered. Page 4. Well many of our base stations were recovered after the power supply came back, but not all of them were done because of submerged base stations and disruption with transmission line. As of March 28, 307 base stations were disrupted and we had a plan to complete those restorations by the end of April. And most of them are on scheduled towards that goal.
Some of them are still remains to be restored because of being in mountainous areas or disruptions of roads making it difficult to access in the first place or inside tunnels. For the network restoration we used optical fiber or replaced the optical fiber and used stopgap optical fiber. We also transmitted signals from large zones using a large zones scheme from mountain top areas, and also we used micro tunnel wave transmission and satellites in some cases.
Page 5, we have some more details. This is how we repaired our transmission lines using optical fiber. Page 6 is about the restoration using large zone scheme. And page 7 is the restoration using microwave transmission. Page 9 is the restoration using satellites. With all these measures, we have nearly completed the restoration of the service areas. The other factor that we had experienced was the restoration effort for the areas close to the Fukushima Daiichi Nuclear power plant. 68 stations within the 38 kilometer radius were disrupted. Out of those 68, we’ve already restored 51 base stations. And the efforts that had been employed for the restoration are explained on page 10.
We were only able to access those base station for inspection on the 31st of March and on April 1st. We’ve been to J-Village which base camp for the task force of the people working on the nuclear power plant accident. We restored that area on April 1st and on the 13th of April we deployed the high-performance antenna to transmit signals towards the direction of the power plant from a spot, 25 kilometers away. Actually on that occasion, there was an aftershock, but amidst that disturbance we still were able to install this high-performance antenna and those on the 13th of April we placed the transmission lines for the areas there.
On page 11, as you see the areas had been restored in the areas close to the nuclear power plant, before and after you’ll see the difference of restoration in the service areas. From the left hand side to the right side. From Onahama to J-Village, most of the people accessed the Daiichi power plant from that route. So restoring coverage in that area was very much appreciated by those task force.
Page 12 shows the restoration of areas, as you see on the left we deployed a satellite base station for J-Village coverage restoration. As you see on the upper right, this is the restoration by the replacement of a transmission line that we did for the exchange office in Tomioka which is about only 10 kilometers away from the plant. Below, at the bottom is the high-performance antenna used for restoration. Just as we were working on the installation of this high-performance antenna, there was level 5 aftershock.