##### Table of Contents



As filed with the Securities and Exchange Commission on June 26, 2008
   SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 20-F
 
 o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR (G) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended March 31, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 o
    
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 Date of event requiring this shell company report
 Commission file number: 1-31221
 
 Kabushiki Kaisha NTT DoCoMo
 (Exact name of registrant as specified in its charter)
 
 NTT DoCoMo, Inc.
 (Translation of registrants name into English)
 
 Sanno Park Tower11-1, Nagata-cho 2-chomeChiyoda-ku, Tokyo 100-6150Japan
    
    Japan(Jurisdiction of incorporation or organization)
    
    (Address of principal executive offices)
 Hiromichi Takahashi or Atsuko Shiono
TEL: +81-3-5156-1338 / FAX: +81-5156-0271
Sanno Park Tower, 2-11-1 Nagata-cho, Chiyoda-ku, Tokyo 100-6150 Japan
(Name, Telephone, E-mail and /or Facsimile number and Address of Company Contact Person)
 Securities registered or to be registered pursuant to Section 12(b) of the Act:
 Title of each class
    
    Name of each exchange on which registeredCommon Stock
    
    New York Stock Exchange
 Securities registered or to be registered pursuant to Section 12(g) of the Act:
 None
 Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
 None
 
 Indicate the number of outstanding shares of each of the issuers classes of capital or common
stock as of the close of the period covered by the annual report.
  þ o
 o þ
 þ o
  þ o o
  þ  o o
  o o
  o þ
 
 *
    
    Not for trading, but only in connection with the listing of the American Depositary Shares.




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##### 



TABLE OF CONTENTS
 PagePART IItem 1. Identity of Directors, Senior Management and Advisors
    
    
    3Item 2. Offer Statistics and Expected Timetable
    
    
    3Item 3. Key Information
    
    
    3Item 4. Information on the Company
    
    
    13Item 4A. Unresolved Staff Comments
    
    
    73Item 5. Operating and Financial Review and Prospects
    
    
    73Item 6. Directors, Senior Management and Employees
    
    
    100Item 7. Major Shareholders and Related Party Transactions
    
    
    107Item 8. Financial Information
    
    
    108Item 9. The Offer and Listing
    
    
    109Item 10. Additional Information
    
    
    111Item 11. Quantitative and Qualitative Disclosures about Market Risk
    
    
    123Item 12. Description of Securities Other Than Equity Securities
    
    
    126PART IIItem 13. Defaults, Dividend Arrearages and Delinquencies
    
    
    127Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
    
    
    127Item 15. Controls and Procedures
    
    
    127Item 16A. Audit Committee Financial Expert
    
    
    127Item 16B. Code of Ethics
    
    
    127Item 16C. Principal Accountant Fees and Services
    
    
    128Item 16D. Exemptions from the Listing Standards for Audit Committees
    
    
    129Item 16E. Purchases of Equity Securities by Issuer and Affiliated Purchasers
    
    
    130Item 17. Financial Statements
    
    
    131Item 18. Financial Statements
    
    
    131Item 19. Exhibits
    
    
    132Exhibit 1.1Exhibit 1.3Exhibit 8.1Exhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2Exhibit 15.1Exhibit 15.2




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##### Table of Contents



Special Note Regarding Forward-looking Statements
  1.
    
    As competition in the market becomes more fierce due to changes in the business environment
caused by Mobile Number Portability (MNP), new market entrants, competition from other
cellular service providers or other technologies, and other factors, could limit our
acquisition of new subscriptions and retention of existing subscriptions, or may lead to
diminishing ARPU or an increase in our costs and expenses.
 2.
    
    Current and new services, usage patterns, and sales schemes introduced by our corporate group
may not develop as planned, which could affect our financial conditions and limit our growth.
 3.
    
    The introduction of or changes in various laws or regulations or the application of such laws
and regulations to our corporate group could restrict our business operations, which may
adversely affect our financial condition and results of operations.
 4.
    
    Limitations in the amount of frequency spectrum or facilities made available to us could
negatively affect our ability to maintain and improve our service quality and level of
customer satisfaction.
 5.
    
    The W-CDMA technology that we use for our 3G system and/or mobile multimedia services may not
be introduced by other overseas operators, which could limit our ability to offer
international services to our subscribers.
 6.
    
    Our domestic and international investments, alliances and collaborations may not produce the
returns or provide the opportunities we expect.
 7.
    
    As electronic payment capability and many other new features are built into our cellular
phones, and services of parties other than those belonging to our corporate group are provided
through our cellular handsets, potential problems resulting from malfunctions, defects or loss
of handsets, or imperfection of services provided by such other parties may arise, which could
have an adverse effect on our financial condition and results of operations.
 8.
    
    Social problems that could be caused by misuse or misunderstanding of our products and
services may adversely affect our credibility or corporate image.
 9.
    
    Inadequate handling of confidential business information including personal information by
our corporate group, contractors and other factors, may adversely affect our credibility or
corporate image.
 10.
    
    Owners of intellectual property rights that are essential for our business execution may not
grant us the right to license or otherwise use such intellectual property rights on acceptable
terms or at all, which may limit our ability to offer certain technologies, products and/or
services, and we may also be held liable for damage compensation if we infringe the
intellectual property rights of others.
  1




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##### Table of Contents



11.
    
    Earthquakes, power shortages, malfunctioning of equipment, software bugs, computer viruses,
cyber attacks, hacking, unauthorized access and other problems could cause systems failures in
the networks required for the provision of service, disrupting our ability to offer services
to our subscribers and may adversely affect our credibility or corporate image.
 12.
    
    Concerns about wireless telecommunications health risks may adversely affect our financial
condition and results of operations.
 13.
    
    Our parent company, Nippon Telegraph and Telephone Corporation (NTT), could exercise
influence that may not be in the interests of our other shareholders.
   2




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##### Table of Contents



PART I
 As used in this annual report, references to DOCOMO, the company, we, our , our
group and us are to NTT DoCoMo, Inc. and its subsidiaries except as the context otherwise
requires.
 The year ended March 31, 2008 refers to our fiscal year ended March 31, 2008, and other
fiscal years are referred to in a corresponding manner.
 
 Item 1. Identity of Directors, Senior Management and Advisors
  
 Item 2. Offer Statistics and Expected Timetable
  
 Item 3. Key Information
 A. Selected Financial Data
   3




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##### Table of Contents



Selected Financial Data
 As of and for the year ended March 31,2004
    
    
    2005
    
    
    2006
    
    
    2007
    
    
    2008
    
    
    2008(in millions, except per share data)Income Statement DataOperating revenues:Wireless services
    
    ¥
    4,487,912
    
    
    ¥
    4,296,537
    
    
    ¥
    4,295,856
    
    
    ¥
    4,314,140
    
    
    ¥
    4,165,234
    
    
    $
    41,715Equipment sales
    
    
    560,153
    
    
    
    548,073
    
    
    
    470,016
    
    
    
    473,953
    
    
    
    546,593
    
    
    
    5,474Total
    
    
    5,048,065
    
    
    
    4,844,610
    
    
    
    4,765,872
    
    
    
    4,788,093
    
    
    
    4,711,827
    
    
    
    47,189Operating expenses
    
    
    3,945,147
    
    
    
    4,060,444
    
    
    
    3,933,233
    
    
    
    4,014,569
    
    
    
    3,903,515
    
    
    
    39,094Operating income
    
    
    1,102,918
    
    
    
    784,166
    
    
    
    832,639
    
    
    
    773,524
    
    
    
    808,312
    
    
    
    8,095Other income (expense) (1)
    
    
    (1,795
    )
    
    
    504,055
    
    
    
    119,664
    
    
    
    (581
    )
    
    
    (7,624
    )
    
    
    (76
    )Income before income taxes,
equity in net income
(losses) of affiliates and
minority interests
    
    
    1,101,123
    
    
    
    1,288,221
    
    
    
    952,303
    
    
    
    772,943
    
    
    
    800,688
    
    
    
    8,019Income taxes
    
    
    429,116
    
    
    
    527,711
    
    
    
    341,382
    
    
    
    313,679
    
    
    
    322,955
    
    
    
    3,234Income before equity in net
income (losses) of
affiliates and minority
interests
    
    
    672,007
    
    
    
    760,510
    
    
    
    610,921
    
    
    
    459,264
    
    
    
    477,733
    
    
    
    4,785Equity in net income
(losses) of affiliates, net of applicable taxes (2)(3)
    
    
    (21,960
    )
    
    
    (12,886
    )
    
    
    (364
    )
    
    
    (1,941
    )
    
    
    13,553
    
    
    
    135Minority interests
    
    
    (40
    )
    
    
    (60
    )
    
    
    (76
    )
    
    
    (45
    )
    
    
    (84
    )
    
    
    (1
    )Net income
    
    ¥
    650,007
    
    
    ¥
    747,564
    
    
    ¥
    610,481
    
    
    ¥
    457,278
    
    
    ¥
    491,202
    
    
    $
    4,919Per Share DataBasic and diluted earnings
per share
    
    ¥
    13,099
    
    
    ¥
    15,771
    
    
    ¥
    13,491
    
    
    ¥
    10,396
    
    
    ¥
    11,391
    
    
    $
    114.08Dividends declared and paid per share
    
    ¥
    1,000
    
    
    ¥
    2,000
    
    
    ¥
    3,000
    
    
    ¥
    4,000
    
    
    ¥
    4,400Dividends declared and paid per share (4)
    
    $
    8.72
    
    
    $
    18.65
    
    
    $
    25.54
    
    
    $
    34.03
    
    
    $
    44.07Balance Sheet DataWorking capital (5)
    
    ¥
    493,679
    
    
    ¥
    1,047,597
    
    
    ¥
    558,459
    
    
    ¥
    568,988
    
    
    ¥
    533,465
    
    
    $
    5,343Total property, plant and
equipment, net
    
    
    2,702,505
    
    
    
    2,682,429
    
    
    
    2,777,454
    
    
    
    2,900,653
    
    
    
    2,834,607
    
    
    
    28,389Total assets
    
    
    6,262,266
    
    
    
    6,136,521
    
    
    
    6,365,257
    
    
    
    6,116,215
    
    
    
    6,210,834
    
    
    
    62,202Total debt (6)
    
    
    1,091,596
    
    
    
    948,523
    
    
    
    792,405
    
    
    
    602,965
    
    
    
    478,464
    
    
    
    4,792Total liabilities
    
    
    2,557,510
    
    
    
    2,228,468
    
    
    
    2,312,120
    
    
    
    1,953,748
    
    
    
    1,933,050
    
    
    
    19,360Total shareholders equity
    
    
    3,704,695
    
    
    
    3,907,932
    
    
    
    4,052,017
    
    
    
    4,161,303
    
    
    
    4,276,496
    
    
    
    42,829
  4




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##### Table of Contents



As of and for the year ended March 31,2004
    
    
    2005
    
    
    2006
    
    
    2007
    
    
    2008
    
    
    2008(in millions, except per share data)Other Financial DataDepreciation and
amortization expenses and
loss on sale or disposal of
property, plant and
equipment
    
    
    756,002
    
    
    
    781,096
    
    
    
    774,137
    
    
    
    801,046
    
    
    
    830,784
    
    
    
    8,320Net cash provided by
operating activities
    
    
    1,710,243
    
    
    
    1,181,585
    
    
    
    1,610,941
    
    
    
    980,598
    
    
    
    1,560,140
    
    
    
    15,625Net cash used in investing
activities
    
    
    (847,309
    )
    
    
    (578,329
    )
    
    
    (951,077
    )
    
    
    (947,651
    )
    
    
    (758,849
    )
    
    
    (7,600
    )Net cash used in financing
activities
    
    
    (705,856
    )
    
    
    (672,039
    )
    
    
    (590,621
    )
    
    
    (531,481
    )
    
    
    (497,475
    )
    
    
    (4,982
    )Margins (percent of
operating revenues):Operating income margin
    
    
    21.8
    %
    
    
    16.2
    %
    
    
    17.5
    %
    
    
    16.2
    %
    
    
    17.2
    %
    
    
    17.2
    %Net income margin
    
    
    12.9
    %
    
    
    15.4
    %
    
    
    12.8
    %
    
    
    9.6
    %
    
    
    10.4
    %
    
    
    10.4
    %
 (1)
    
    Includes a gain on the sale of AT&T Wireless Services, Inc. shares of ¥501,781 million for
the year ended March 31, 2005, and an aggregate gain on the sales of Hutchison 3G UK Holdings
Limited and KPN-Mobile N.V. shares of ¥101,992 million for the year ended March 31, 2006.(2)
    
    Includes impairment of investments in affiliates. See Note 7 of Notes to Consolidated Financial
Statements.(3)
    
    Net of deferred taxes of ¥ (4,527) million, ¥1,492 million, ¥1,653 million, ¥ (850) million
and ¥9,257 million in the years ended March 31, 2004, 2005, 2006, 2007 and 2008, respectively.(4)
    
    The dividends per share were translated into U.S. dollars at the relevant record date.(5)
    
    Working capital was computed by subtracting total current liabilities from total current
assets.(6)
    
    Total debt includes total short-term debt (including commercial paper and current portion of
long-term debt) and long-term debt. Exchange Rate Data
  Fiscal Year ended March 31,
    
    High
    
    
    Low
    
    
    Average (1)
    
    
    Period-end2004
    
    
    120.55
    
    
    
    104.18
    
    
    
    112.94
    
    
    
    104.182005
    
    
    114.30
    
    
    
    102.26
    
    
    
    107.28
    
    
    
    107.222006
    
    
    120.93
    
    
    
    104.41
    
    
    
    113.15
    
    
    
    117.482007
    
    
    121.81
    
    
    
    110.07
    
    
    
    116.92
    
    
    
    117.562008
    
    
    124.09
    
    
    
    96.88
    
    
    
    114.31
    
    
    
    99.85Calendar Year 2007December
    
    
    114.45
    
    
    
    109.68
    
    
    
    112.45
    
    
    
    111.71Calendar Year 2008January
    
    
    109.70
    
    
    
    105.42
    
    
    
    107.82
    
    
    
    106.74February
    
    
    108.15
    
    
    
    104.19
    
    
    
    107.03
    
    
    
    104.19March
    
    
    103.99
    
    
    
    96.88
    
    
    
    100.76
    
    
    
    99.85April
    
    
    104.56
    
    
    
    100.87
    
    
    
    102.68
    
    
    
    104.53May
    
    
    105.52
    
    
    
    103.01
    
    
    
    104.36
    
    
    
    105.46June (through June 13, 2008)
    
    
    107.94
    
    
    
    104.41
    
    
    
    106.19
    
    
    
    107.92
 
 (1)
    
    For fiscal years, calculated from the average of the exchange rates on the last day of each
month during the period. For calendar year months, calculated based on the average of daily closing
exchange rates.  B. Capitalization and Indebtedness
   5




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C. Reasons for the Offer and Use of Proceeds
  D. Risk Factors
 Risks Relating to Our Business and the Japanese Wireless Telecommunications Industry
 As competition in the market becomes more fierce due to changes in the business environment
caused by Mobile Number Portability, new market entrants, competition from other cellular service
providers or other technologies, and other factors, could limit our acquisition of new
subscriptions, and retention of existing subscriptions may lead to diminished ARPU, or may lead to
an increase in our costs and expenses.
     * MVNO:
    
    Mobile Virtual Network Operator, a business that borrows the wireless communication
infrastructure of other companies to provide services.  6




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Current and new services, usage patterns, and sales schemes introduced by our corporate group
may not develop as planned, which could affect our financial condition and limit our growth.
  
    
    We will be able to find the partners and content providers needed to provide the new
services and forms of usage we are introducing and persuade a sufficient number of vendors
and other establishments to install i-mode FeliCa readers;
 
    
    We will be able to provide planned new services and forms of usage as scheduled and
keep costs needed for the deployment and expansion of such services within budget;
 
    
    The services and installment sale and other methods we offer and plan to offer will be
attractive to current and potential subscribers and there will be sufficient demand for
such services;
 
    
    Manufacturers and content providers will create and offer products including handsets
for our 3G system and handsets and programming for our 3G i-mode services at appropriate
prices and on a timely basis;
 
    
    Our current and future data communications services including i-mode and other services
will be attractive to existing and potential subscribers and achieve continued or new
growth;
 
    
    Demand in the market for mobile handset functionality will be as we expect and as a
result our handset procurement costs will be reduced; and
 
    
    We will be able to commence services with improved data communication speeds enabled by
HSDPA (High Speed Downlink Packet Access, a high-speed packet transmission technology
utilizing Wideband Code Division Multiple Access, or W-CDMA) technology planned.
  The introduction or change of various laws or regulations or the application of such laws and
regulations to our corporate group could restrict our business operations, which may adversely
affect our financial condition and results of operations.
  
    
    Revision of the spectrum allocation system such as reallocation of spectrum and
introduction of an auction system;
 
    
    Measures to open up some segments of telecommunication platform functions such as
authentication and payment collection to other operators;
 
    
    Rules that could require us to open our i-mode service to all content providers and
Internet service providers or that could prevent us from setting or collecting i-mode
content fees or putting i-mode service on cellular phone handsets as an initial setting;
 
    
    Regulations to prohibit or restrict certain content or transactions or mobile Internet
services such as i-mode;
 
    
    Measures which would introduce new costs such as the designation of mobile phone
communications as a universal service and other changes to the current universal service
fund system;
 
    
    Regulations to increase handset competition such as SIM*1 unlocking regulations;
 
    
    Fair competition measures to promote new entry by MVNOs
 
    
    Introduction of new measures to promote competition based on a review of the designated
telecommunications facilities system(dominant carrier regulation); and
 
    
    Other measures including competition safeguard measures directed toward us, NTT East
and NTT West to enhance competition that would restrict our business operations in the
telecommunications industry.
  7




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* 1 SIM:
    
    Subscriber Identity Module. An IC card inserted into a handset on which subscriber
information is recorded, used to identify user. 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.
     8




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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 loss of handsets, or
imperfection of services provided by such other parties may arise, which could have an adverse
effect on our financial condition and results of operations.
  
    
    Breakdown, defect and malfunction of our handsets;
 
    
    Loss of information, e-money or points due to a breakdown of handsets or other factors;
 
    
    Illegal use of information, e-money, credit functions and points by third parties due
to a loss or theft of handsets;
 
    
    Illegal access to and use of user records and balances accumulated on handsets by
third-parties; and
 
    
    Inadequate and inappropriate management of e-money, credit functions or points by
companies with which we make alliances or collaborate.
  9




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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 confidential business information including personal information by our
corporate group, contractors and other factors, may adversely affect our credibility or corporate
image.
    10




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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, 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.
   11




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Our parent company, Nippon Telegraph and Telephone Corporation (NTT), could exercise influence that
may not be in the interests of our other shareholders.
  Risks Relating to the Shares and the ADSs
 Future sales of our shares by NTT or by us may adversely affect the trading price of our shares and
ADSs.
  There are restrictions on your ability to withdraw shares from the depositary receipt facility.
  Holders of ADRs have fewer rights than shareholders and have to act through the depositary to
exercise those rights.
   12




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U.S. investors may have difficulty in serving process or enforcing a judgment against us or our
directors, executive officers or corporate auditors.
  Rights of shareholders under Japanese law may be different from rights of shareholders in
jurisdictions within the United States.
 Kaishaho
 
 Item 4. Information on the Company
 A. History and Development of the Company
    13




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##### Table of Contents



(1)
    
    These service subsidiaries provide operational services, such as engineering and support
services, to NTT DOCOMO, INC.(2)
    
    These DOCOMO regional subsidiaries provide wireless telecommunications services in respective
geographical regions in Japan, other than the region in which NTT DOCOMO, INC. itself provides such
services.(3)
    
    These indirect service subsidiaries provide operational services, such as engineering and other
services, to the respective DOCOMO regional subsidiaries which wholly own them.  14




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B. Business Overview
 Overview
    Osaifu-Keitai
  15




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
    
    Increase revenues from international roaming services, license agreements and
consulting services;
 
    
    Earn dividends revenues and capital gains from investments; and
 
    
    Expand our revenue sources into cellular phone-related businesses.
  16




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Corporate Social Responsibilities (CSR)
   17




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##### Table of Contents




    
    For a safer, healthier and more secure society
 
    
    Held approximately 2,400 sessions of DOCOMO Mobile Phone Safety Program seminars
nationwide during the fiscal year ended March 31, 2008, to provide children with tips on
safe and proper phone usage manners, and further promoted and encourage the use of Access
Restriction Service (Filtering Service).
 
    
    Established the DOCOMO Anshin Hotline, a dedicated call center, to provide
consultation for billing plans and various services to help reduce anxiety regarding the
use of cellular phones by children.
 
    
    Universal design products and services
 
    
    To enable the elderly and the disabled to use mobile phones in their daily activities
with greater convenience, provided a touring seminar called Mobile Phone Usage Program
(a total of 41 classes in the Kanto-Koushinetsu area for the fiscal year ended March 31,
2008).
 
    
    The cumulative number of sales of the Raku Raku Phone series, which has been well
received by many customers since its introduction in 1999, exceeded 10 million units
nationwide in April 2007, and had reached 12.89 million units as of the end of March 31,
2008.
 
    
    We were awarded the 1997 Prime Ministers Commendation for Contributors to the
Promotion of Barrier-Free Environments in recognition of our efforts to create a
universal design for our products and services enabling easy use by all.
 
    
    Global environmental conservation initiatives
 
    
    Deployed optical extension stations (hikari haridashi-kyoku) (a base station where the
child device is placed at a location different from the main device (parent station), and
is connected to the parent device by optical cable), and deployed high-efficiency power
supply equipment and high-efficiency air conditioning equipment, as part of our efforts
to facilitate energy savings at our communication facilities.
 
    
    Collected used cellular handsets (approximately 65 million units on a cumulative
basis), and continued our forest improvement initiatives by adding five more locations
to the DOCOMO Woods Campaign (Reforestation Project) (36 locations on a cumulative
basis).
 
    
    Social contribution activities
 
    
    To assist the education of children, constructed a total of 10 schools in Thailand,
and carried out programs aimed at fostering the health and well-being of young talent by
sponsoring various sports clinics.
 
    
    Participated in Product Red (an initiative that creates a flow of donations from
private businesses to a global fund), donating one percent of the monthly billing amount
from our customers who used our FOMA M702 iS (RED) as to fight HIV/AIDS in Africa.
 Actions for Disaster Damage Prevention
   18




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##### Table of Contents



Three principles for disaster damage prevention
 
    
    Enhancement of System ReliabilityTo ensure that our mobile communications systems function properly in the event of a disaster,
we have reinforced our facilities and equipment by applying earthquake resistant reinforcement
to our buildings/antenna towers, anchoring our machines/equipment and strengthening their
earthquake resistance, accommodating cables in shielded tunnels, and laying our communication
cables underground. We have also endeavored to enhance the reliability of our networks by
providing backups to our facilities and circuits through the use of multiple/dual routes or
loop structure in our relay transmission lines (middle-distance transmission lines), using
redundant configurations in our communication facilities or installing them in dispersed
locations, and increasing the use of communications satellites.
    
    Securing important communicationsAs a designated public institution that is required to cooperate with national/local government
institutions in their disaster damage prevention efforts, we have established a priority
telephone system allowing institutions engaged in disaster damage prevention activities to use
our circuits with higher priority in the event of a disaster. We have also strived to ensure
that important communications are protected by ensuring efficient network control and lending
cellular phones and/or other devices to municipal governments and/or other institutions in the
event of a disaster.
    
    Early recovery of communications servicesWith the goal of recovering mobile communications services at the earliest possible time
following a disaster, we have employed various measures, including the preparation of hardware
such as the deployment of mobile base station equipment, and mobile power supply vehicles and
the securing of restoration materials, as well as the creation of operation manuals for
disaster situations, organizing Disaster Management Headquarters and conducting drills for
disaster damage prevention.
 Organizational Structure for Disaster Damage Prevention
    19




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##### Table of Contents



Our Services
 i-mode,
 Cellular Services
   Cellular (mova) Services
  Cellular (FOMA) Services
   20




---



##### Table of Contents



i-mode
  Basics of i-mode Services
     21




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##### Table of Contents



i-mode
 i-mode Services
  
    
    e-mail;
 
    
    games and other entertainment;
 
    
    music distribution/video clips/e-books;
 
    
    social network services
 
    
    online shopping (CDs, books, tickets, others)/auctions;
 
    
    news, weather and sports information;
 
    
    mobile banking;
 
    
    other financial services, such as DCMX, iD and other credit card services and
information and online stock quotes and trading;
 
    
    maps and travel information;
 
    
    community guides, living information, safety and healthcare information; and
 
    
    telephone directories.
     22




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##### Table of Contents



non-i-mode
    user-designated
    23




---



##### Table of Contents



i-mode Services Overseas
  i-mode
  Osaifu-Keitai (i-mode FeliCa) Services
 Osaifu-Keitai Osaifu-Keitai
 Osaifu-Keitai Osaifu-Keitai Osaifu-Keitai.
 Osaifu-Keitai. Osaifu-Keitai
  24




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##### Table of Contents



Cellular Subscribers
    Year ended March 31,2005
    
    
    2006
    
    
    2007
    
    
    2008(in thousands)DOCOMO cellular subscriptions
    
    
    48,825
    
    
    
    51,144
    
    
    
    52,621
    
    
    
    53,388mova subscriptions
    
    
    37,324
    
    
    
    27,680
    
    
    
    17,092
    
    
    
    9,438FOMA subscriptions
    
    
    11,501
    
    
    
    23,463
    
    
    
    35,529
    
    
    
    43,949i-mode subscriptions
    
    
    44,021
    
    
    
    46,360
    
    
    
    47,574
    
    
    
    47,993i-mode subscriptions (FOMA)
    
    
    11,353
    
    
    
    22,914
    
    
    
    34,052
    
    
    
    41,213i-mode subscriptions (mova)
    
    
    32,667
    
    
    
    23,446
    
    
    
    13,522
    
    
    
    6,780DOCOMO estimated market share of total subscriptions
    
    
    56.1%
    
    
    
    55.7%
    
    
    
    54.4%
    
    
    
    52.0%DOCOMO subscription growth rate
    
    
    5.4%
    
    
    
    4.7%
    
    
    
    2.9%
    
    
    
    1.5%DOCOMO average monthly churn rate(1)
    
    
    1.01%
    
    
    
    0.77%
    
    
    
    0.78%
    
    
    
    0.80%
 
 (1)
    
    In general, the term churn rate is defined as the level of customers who disconnect their
service relative to the total subscription base. Our measurement of churn rates includes voluntary
terminations in connection with handset upgrades or changes. The average monthly churn rate for
each fiscal year is calculated by adding the number of cellular subscriber contract terminations in
each month of that fiscal year and dividing that number by sum of the active cellular subscriptions*
from April to March.*
    
    active cellular subscriptions = (No. of subscriptions at the end of previous month + No. of
subscriptions at the end of current month) / 2  Revenues and Tariffs for Cellular Services
   25




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26




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##### Table of Contents



®
 HIGH-SPEED
  27




---



##### Table of Contents



i-mode Revenues and Fees
 i-mode
      28




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##### Table of Contents



Cellular System Usage
    (1)
  Year ended March 31,2006
    
    
    2007
    
    
    2008MOU (FOMA+mova)
    
    
    149
    
    
    
    144
    
    
    
    138Aggregate ARPU (FOMA+mova)
    
    ¥
    6,910
    
    
    ¥
    6,700
    
    
    ¥
    6,360Voice ARPU (FOMA+mova)
    
    
    5,030
    
    
    
    4,690
    
    
    
    4,160Packet ARPU (FOMA+mova)
    
    
    1,880
    
    
    
    2,010
    
    
    
    2,200i-mode ARPU (FOMA+mova)
    
    
    1,870
    
    
    
    1,990
    
    
    
    2,170
 
    (2)
  FY Results : Sum of No. of subscriptions* for each month from April to March*
    
    subscriptions = (No. of subscriptions at the
end of previous month + No. of subscriptions at
the end of current month) / 2
  29




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##### Table of Contents



Year ended March 31,2006
    
    
    2007
    
    
    2008MOU (FOMA)
    
    
    202
    
    
    
    175
    
    
    
    156Aggregate ARPU (FOMA)
    
    ¥
    8,700
    
    
    ¥
    7,860
    
    
    ¥
    6,990Voice ARPU (FOMA)
    
    
    5,680
    
    
    
    5,070
    
    
    
    4,340Packet ARPU (FOMA)
    
    
    3,020
    
    
    
    2,790
    
    
    
    2,650i-mode ARPU (FOMA)
    
    
    2,980
    
    
    
    2,750
    
    
    
    2,610
 
    (2)
  FY Results : Sum of No. of subscriptions* for each month from April to March*
    
    subscriptions = (No. of subscriptions at the end of previous
month + No. of subscriptions
at the end of current month) / 2
  Year ended March 31,2006
    
    
    2007
    
    
    2008MOU (mova)
    
    
    122
    
    
    
    104
    
    
    
    82Aggregate ARPU (mova)
    
    ¥
    5,970
    
    
    ¥
    5,180
    
    
    ¥
    4,340Voice ARPU (mova)
    
    
    4,680
    
    
    
    4,190
    
    
    
    3,590i-mode ARPU (mova)
    
    
    1,290
    
    
    
    990
    
    
    
    750
 
   (2)
  FY Results : Sum of No. of subscriptions* for each month from April to March*
    
    subscriptions = (No. of subscriptions at the end of previous
month + No. of
subscriptions at the end of current month) / 2
 
 (1)
    
    Communications module service subscriptions and the revenues thereof are not included in the ARPU
and MOU calculations.(2)
    
    The denominator used in calculating i-mode ARPU (FOMA+mova, FOMA, mova) is the aggregate number
of cellular subscriptions to each service (FOMA+mova, FOMA, mova, respectively), regardless of
whether i-mode service is activated or not.  30




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##### Table of Contents



PHS Services
  Number of PHS Subscriptions
  Other Mobile Multimedia Services
   i-mode
   31




---



##### Table of Contents



Other Business Activities
 Efforts towards expansion of the credit business
 Osaifu-Keitai
  32




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##### Table of Contents



Osaifu-Keitai
 Osaifu-Keitai
 Osaifu-Keitai
  Osaifu-Keitai
   Investments and Affiliations in Japan
 Tower Records
 Osaifu-Keitai Osaifu-Keitai
  33




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##### Table of Contents



Rakuten Auction
   Fuji Television
  Nippon Television
 tie-up
 Osaifu-Keitai
  Multimedia Broadcasting Planning LLC
   34




---



##### Table of Contents



Sumitomo Mitsui Card
 Osaifu-Keitai
 UC Card
  LAWSON
   FamilyMart
  CA MOBILE
  ACCESS
   35




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##### Table of Contents



Aplix
  FueTrek
  Kadokawa Group Holdings
  McDonalds
 Osaifu-Keitai Osaifu-Keitai.
 ZENRIN DataCom
   36




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##### Table of Contents



CXD NEXT
 Osaifu-Keitai.
 ACCA Wireless
  Google
  ACRODEA
  Quickcast Services (Paging Services)
   37




---



##### Table of Contents



Satellite Telephone Services
   Global Businesses
 International Dialing Services and International Roaming Services
    International Investments and Alliances and Licensing Agreements
   38




---



##### Table of Contents



Far EasTone Telecommunications Co., Ltd.
       39




---



##### Table of Contents



Hutchison Telephone Company Limited/Hutchison 3G HK Holdings Limited
     Telstra Corporation Limited
  StarHub Ltd.
  Hutchison Essar Ltd.
  Mobile Innovation Co., Ltd.
   40




---



##### Table of Contents



DoCoMo interTouch Pte. Ltd.
    ADVANCED MPAY COMPANY LIMITED
    Telargo Inc.
    41




---



##### Table of Contents



KT Freetel Co., Ltd.
    Philippine Long Distance Telephone Company
    Guam Cellular and Paging
   42




---



##### Table of Contents



Fidatone Mobile Technology and Service
  Gobi Fund II
  AT&T Mobility
  U Mobile Sdn. Bhd.
  TM International (Bangladesh) Limited
    43




---



##### Table of Contents



Sales and Marketing
     The New DOCOMO Commitments
 (1)
    
    We will re-build our brand and strengthen our ties with our customers.(2)
    
    We will seek and value the voices of our customers and become a company that exceeds
their expectations.(3)
    
    We will continue to drive innovations, and aspire to become a corporation that is
admired by the world.(4)
    
    We will enrich our organization with diverse and active talents who seek a common
goal and dream.
    44




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##### Table of Contents



Customer Service
       45




---



##### Table of Contents



Handsets
  Cellular (FOMA) Handsets
 Osaifu-Keitai,
   Osaifu-Keitai
      46




---



##### Table of Contents



® ® ® ® ® ® ®
         47




---



##### Table of Contents



® TM
  ®
  ®
 Osaifu-Keitai ®
    ® ®
 *
    
    Windows Mobile is a registered trademark of Microsoft Corporation in the United States and
other countries.  48




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##### Table of Contents



Ò Ô Ò
 *
    
    MOAP is a software platform that was first used on some models in the FOMA 901i
series handsets, and the Linux-version of MOAP was jointly developed with NEC Corporation
and Panasonic Mobile Communications, Co., Ltd.  49




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##### Table of Contents



Cellular (mova) Handsets
   DOCOMO Networks
     50




---



##### Table of Contents



2G Network
   3G Network
    3G Standardization Efforts
   51




---



##### Table of Contents




    
    IMT-MC, known as cdma2000; and
    
    IMT-DS, known as Wideband Code Division Multiple Access, or W-CDMA.
     Research and Development
   
    
    a research laboratory;
    
    four development departments, including core network development, radio access network
development, service & solution development, and communication device development
departments;
    
    an R&D general affairs department; and
    
    an R&D strategy department.
   52




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53




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##### Table of Contents



R&D Center
  Information Technology
      54




---



##### Table of Contents



Billing System
     Enterprise Information System (DREAMS)
  Competition
   55




---



##### Table of Contents



Cellular Competition
      56




---



##### Table of Contents



i-mode Competition
  PHS Competition
  Regulation of the Mobile Telecommunications Industry in Japan
  The Telecommunications Business Law
   Regulation:a.
    
    Business entry
    
    Registration with the Minister of
MIC required for carriers that
install large-size
telecommunications circuit
facilities. Notification to the
Minister of MIC required for
carriers other than the above.b.
    
    Suspension and
Discontinuation of business
    
    Notification to the Minister of
MIC and, in general, announcement
to users are required.c.
    
    Tariff settings, service
offerings, etc.
    
    Unregulated in principle (1)
Accountability to users concerning
outline of terms and conditions of
telecommunications service and
proper and swift processing of
complaints and inquiries from the
users are required.
  57




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##### Table of Contents



Regulation:d.
    
    Business improvement order
    
    The Minister of MIC may order a
telecommunications carrier to
improve business activities to
protect the interests of the
public and users with regard to
the secrecy of communications,
unreasonably discriminatory
treatment, ensuring important
communications, tariff and other
service conditions, sound
development of telecommunications,
national convenience, etc.e.
    
    Interconnection
    
    Obligation for interconnection
with other telecommunications
carriers in principle, which
propose interconnection.
In the event a telecommunications
carrier does not accept entering
into a consultation despite other
carriers proposal to enter into
an agreement to interconnect
telecommunications facilities or
if said consultation fails to come
to an agreement, except for
certain cases, the Minister of MIC
may order such telecommunications
carrier to start or resume
consultation.f.
    
    Privilege of public utilities
    
    Based on a request by a
telecommunications carrier, except
for certain cases, the Minister of
MIC may designate the
telecommunications carrier as an
approved carrier who has the
privilege to act as a public
utility.g.
    
    Ensuring important communications
    
    Telecommunications carriers are
required to prioritize important
communications when natural
disaster, accident or any other
emergency occurs or is on the
verge of occurring.h.
    
    Permission of agreement with
foreign governments, etc.
    
    The Minister of MICs permission
is required for conclusion,
amendment or abolition of
agreements/contracts on important
matters relating to
telecommunications business with
foreign governments, nationals, or
judicial persons/entities.i.
    
    Maintenance and Self-declaration
of conformity
    
    Telecommunications carriers that
install telecommunications circuit
facilities are obligated to
maintain their facilities in
compliance with technical
standards and to confirm
conformity of such facilities to
technical standards by themselves,
and notify the outcome to the
Minister of MIC.
 
 (1)
    
    A telecommunications carrier providing universal telecommunications services shall establish
tariffs concerning such services and shall submit tariffs to the Minister of MIC. A
telecommunications carrier providing certain designated telecommunications services shall establish
tariffs concerning such services and shall submit tariffs to the Minister of MIC.  58




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The asymmetric regulation
    The Radio Law
 Outline
     59




---



##### Table of Contents



Spectrum Allocation
        60




---



##### Table of Contents



Recent Amendments
   Recent Discussions on the Telecommunications Business Law and the Radio Law
  Three-Year Program for Promoting Regulatory Reform
  New IT Revolution Strategy
  
    
    realization of a mobile communications system with data transmission speeds that are
100 times faster than the current level by fiscal year 2010, and
    
    formulation of guidelines for standardization by 2010 of displays and methods of
operations for handsets and equipment that take into consideration user-friendliness for
all people, including seniors and the handicapped, and promotion of product labeling that
facilitates selection by consumers of easy-to-use products.
 Emergency Calling Functions
  
    
    cellular handsets for 3G mobile communication systems introduced by network operators
in April 2007 and after must in principle be equipped with GPS location and notification
functionality.
   61




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NTT Group
  
    
    further opening of the NTT groups local network, and
    
    realization of competition within the NTT group by decreasing NTTs
ownership percentage in our company and NTT Com.
  
    
    maintaining the present group operation under a holding company will be necessary in
order to proceed with the structural reform that would revise NTT East and NTT West cost
structures by reallocating personnel within the NTT group and making use of outsourcing
companies,
    
    from the standpoint of maximizing corporate value (shareholders profits), the NTT
group management apportions each group companys business areas such that (i) in fields
where new markets need to be developed, such as Internet-related business, each company
is free to decide its own business strategy while taking advantage of its own strengths,
even if this involves competition among NTT group companies; and (ii) in the remaining
fields, group operations are carried out on the principle of avoiding duplication of
resources,
    
    the simultaneous holding of executive positions between local companies (NTT East and
NTT West) and NTT Com or our company is not implemented currently and will remain
unimplemented, from the viewpoint of fair competition, and
    
    decisions on NTTs investment ratio of NTT Com and our company and the simultaneous
holding of executive positions will continue to be considered from the standpoint of
maximizing shareholders profits, while fully respecting the autonomy in actual business
operations of each NTT group company and taking into account operational necessities and
stock market trends, as the market and other environmental factors surrounding the NTT
group are rapidly changing.
     62




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##### Table of Contents



Fair Competition
   The Right to Set Charge for Calls
    63




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##### Table of Contents



Radio Spectrum Use
  Evaluation of Competition in the Telecommunications Field
    
    
    in the cellular phone and PHS markets, the migration from 2G to 3G would advance,
and competition would remain brisk;
    
    while the NTT DOCOMO Group had a market share, as of December 31, 2006, of 52.8%
and has been in a position to control the market, due to the regulations on Category
II-designated telecommunication facilities and the intense competition among
carriers for market share, the possibility of its actually exercising market control
in the future is low; and
    
    regarding concerns that multiple carriers could collude to exercise market
control, the entry of new competitors to the market, including Softbank and EMOBILE,
and the introduction of Mobile Number Portability, have resulted in the provision of
a variety of
rate discounts and a diverse range of services. As a result, the competition seems
even greater than ever, and the possibility of the exercise of market control in the
future is low.
  64




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##### Table of Contents



New Competition Promotion Program 2010
   
    
    promotion of facility competition;
    
    review of the designated telecommunications facilities system (dominant regulations);
    
    review of the calculation rules for NTT East and NTT West interconnection charges;
    
    promotion of competition in the mobile telecommunications market;
    
    environmental improvements for realizing communication handsets compatible with IP
technology;
    
    review of rate policy;
    
    review of the Universal Service Fund system;
    
    environmental improvements for ensuring network neutrality;
    
    strengthening of dispute resolution functions;
    
    review of market exit rules; and
    
    enhancement of consumer protection measures.
  Review of the designated telecommunications facilities system (dominant regulations)
    65




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##### Table of Contents



Promotion of competition in the mobile telecommunications market
   
    
    review of marketing models for mobile businesses;
    
    partial introduction of the new sales price plans (plans separating communication
charges and handset fees) for fiscal 2008;
    
    clarification of the accounting arrangements for sales promotion funds;
    
    removal of SIM locks (final conclusion in 2010 regarding mandatory removal of SIM
locks);
    
    promotion of handset platform standardization;
    
    examination of measures for enhancing consumer protection; and
    
    consideration of greater platform collaboration.
  Review of the Universal Service System
    66




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##### Table of Contents



Examination regarding network neutrality
   The Other Recent Discussions
   Information Security Management
   67




---



##### Table of Contents



Law to Prevent Unauthorized Use of Mobile Phones
  Relationship with NTT
      68




---



##### Table of Contents




    
    To the extent possible, we must establish transmission lines for our network
independent of NTT. In the event that we use NTT transmission lines, the terms and
conditions for such use shall be the same as those for our competitors.
    
    NTT must not favor us in any transactions between NTT and us. The terms and conditions
for our use of NTT utility poles, access to NTTs network, access to NTT research and
development and similar matters should be the same as for our competitors.
    
    All former NTT employees transferred to us were required to be permanent employees,
rather than being seconded from NTT.
    
    We were to plan to have our shares listed and NTTs ownership in us reduced
approximately five years after incorporation.
    
    We must not engage in joint procurement with NTT so as not to use NTTs purchasing
power with the objective of obtaining favorable treatment or pricing from its suppliers
and manufacturers.
     69




---



##### Table of Contents



Property
    70




---



##### Table of Contents



Employees
     Legal Proceedings
  C. Organizational Structure
   Country of
    
    
    Voting rights owned by theName
    
    Incorporation
    
    
    Company, directly or indirectlyNTT DoCoMo Hokkaido, Inc.(1)
    
    Japan
    
    
    100.0
    %NTT DoCoMo Tohoku, Inc.(1)
    
    Japan
    
    
    100.0
    %NTT DoCoMo Tokai, Inc.(1)
    
    Japan
    
    
    100.0
    %NTT DoCoMo Hokuriku, Inc.(1)
    
    Japan
    
    
    100.0
    %NTT DoCoMo Kansai, Inc.(1)
    
    Japan
    
    
    100.0
    %NTT DoCoMo Chugoku, Inc.(1)
    
    Japan
    
    
    100.0
    %NTT DoCoMo Shikoku, Inc.(1)
    
    Japan
    
    
    100.0
    %NTT DoCoMo Kyushu, Inc.(1)
    
    Japan
    
    
    100.0
    %DoCoMo Service Inc.
    
    Japan
    
    
    100.0
    %DoCoMo Engineering Inc.
    
    Japan
    
    
    100.0
    %DoCoMo Mobile Inc.
    
    Japan
    
    
    100.0
    %DoCoMo Support Inc.
    
    Japan
    
    
    100.0
    %DoCoMo Systems, Inc.
    
    Japan
    
    
    100.0
    %DoCoMo Sentsu, Inc.
    
    Japan
    
    
    100.0
    %DoCoMo Business Net, inc.
    
    Japan
    
    
    100.0
    %DoCoMo Technology, Inc.
    
    Japan
    
    
    100.0
    %
 
 (1)
    
    One of our eight regional subsidiaries.  71




---



##### Table of Contents



Relationship Between Us and Our Eight Regional Subsidiaries
         72




---



##### Table of Contents



D. Property, Plant and Equipment
  
 Item 4A. Unresolved Staff Comments
  
 Item 5. Operating and Financial Review and Prospects
    
    
    Our Business
    
    Trends in the Mobile Communications Industry in Japan
    
    Operating Strategies
    
    Operating Trends
    
    Operating Results for the years ended March 31, 2008 and 2007
    
    Segment Information
    
    Recent Accounting Pronouncements and Critical Accounting Policies
    
    Liquidity and Capital Resources
    
    Research and Development
    
    Trend Information
    
    Others
 A. Operating Results
 Our Business
 
   73




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##### Table of Contents



Trends in the Mobile Communications Industry in Japan
    
    
    Offering of free voice calls among family members under the same discount account
with the same operators, free voice calls among subscribers under the same corporate
subscription account with the same operators, introduction of new discount programs to
cut basic monthly charges by half upon commitment of long-term subscriptions;
    
    Introduction of new sales methods such as installment sales for handsets;
    
    Launching of new services such as providing mobile credit payment services, music
downloading, video downloading, news casting, web-browsing filtering, location
information services and high-speed data transmission;
    
    Equipping new handsets with various new functions including a TV tuner, radio
tuner, music player, video player, contact-less IC (Integrated Circuit) chip capability,
GPS (Global Positioning System), enlarged memory capability, compatibility with GSM
network or security function; and
    
    Partnering with entities of different industries including retail, manufacturing
and financial institutions.
   74




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##### Table of Contents



Operating Strategies
     75




---



##### Table of Contents



Operating Trends
  Revenues
 Wireless Services
     76




---



##### Table of Contents



Equipment Sales
    77




---



##### Table of Contents



Expansion of Our Business Domain
    Expenses
 Cost of Services
  Cost of Equipment Sold
   78




---



##### Table of Contents



Depreciation and Amortization
  
    
    further enhancement of FOMA network quality;
    
    buildup of FOMA network capacity in response to an increase in data traffic
following the penetration of our packet flat-rate service for unlimited i-mode usage; and
    
    further expansion of HSDPA service coverage.
  Selling, General and Administrative Expenses
    79




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##### Table of Contents



Operating Income
  
    
    cellular services revenues decreased due to a gradual increase in the discount rate
of basic monthly charges according to an increase in the number of years of subscriptions
under long-term subscription discount, penetration of discount programs newly introduced
for subscriber retention purposes and a decrease in MOU in addition to the adverse impact
of changes in estimates during the prior year regarding initially recognizing as revenues
the portion of Nikagetsu Kurikoshi (2 month carry-over) allowances that are estimated
to expire;
 
    
    a decrease in both the number of handsets sold to agent resellers and revenues per
handset was more than offset by a decrease in sales commissions to be deducted from gross
equipment sales. As a result, net equipment sales increased from the prior fiscal year.
However, operating revenues still decreased as the increase in net equipment sales was
not sufficient to cover the decrease in cellular services revenues; and
 
    
    a combination of a decrease in sales commissions subsequent to the introduction of
Value Course and a decrease in cost of equipment sold due to a decline in the purchase
price per handset and in the number of handsets sold contributed to a decrease in
operating expenses, which more than offset the decrease in operating revenues and
resulted in an increase in operating income.
  
    
    we expect cellular services revenues to decrease because a decline in ARPU caused
by penetration of Value Plan, for which the basic monthly charge is discounted,
penetration of discount programs newly introduced for subscriber retention purposes and
negative impact of the provision of free domestic voice calls among subscribers
registered in the same Fami-wari MAX 50 account will more than offset the positive
effect of our acquisition of new subscriptions;
 
    
    we expect that an increase in the number of handsets sold to agent resellers and a
continued decrease in sales commissions subsequent to the introduction of Value Course
will contribute to an increase in equipment sales, which will more than offset the
decrease in cellular services revenues and result in an increase in operating revenues;
and
 
    
    we expect that a continued decrease in sales commissions will be offset by an
increase in expenses related to retention of current subscribers, resulting in a slight
increase in operating expenses. We expect the net of the increases in operating revenues
and operating expenses to be an increase in operating income.
  
    
    promotion of optional flat rate-billing plans or flat-rate value added services
including Pake-hodai, an optional packet flat-rate service for unlimited i-mode usage,
i-channel, a convenient and easy-to-use information push-delivery service and Music &
Video Channel, a music and video downloading service;
  80




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
    
    accelerated development of non-traffic businesses including the acquisition of DCMX
subscriptions and promotion of credit usage; and
 
    
    promotion of usage of international calls and international roaming services, and
growth through investment and partnership in Asia-Pacific regions.
  
    
    reduction of sales commissions through further penetration of Value Course;
 
    
    saving on the development cost of FOMA handsets through provision of packaged
software dedicated to our handsets to handset manufacturers; and
 
    
    administrative optimization and efficient inventory management through the merger
with our regional subsidiaries.
 Other income and expenses
  Operating Results for the year ended March 31, 2008
  Key Performance Indicators
 Years ended March 31Increase2007
    
    
    2008
    
    
    (Decrease)
    
    
    Change (%)CellularSubscriptions (thousands)
    
    
    52,621
    
    
    
    53,388
    
    
    
    767
    
    
    
    1.5
    %FOMA services (thousands)
    
    
    35,529
    
    
    
    43,949
    
    
    
    8,420
    
    
    
    23.7
    %mova services (thousands)
    
    
    17,092
    
    
    
    9,438
    
    
    
    (7,653
    )
    
    
    (44.8
    )%i-mode services (thousands)
    
    
    47,574
    
    
    
    47,993
    
    
    
    419
    
    
    
    0.9
    %Market Share (%) (1)(2)
    
    
    54.4
    
    
    
    52.0
    
    
    
    (2.4
    )
    
    
    Aggregate ARPU (FOMA+mova) (yen/month/contract) (3)
    
    
    6,700
    
    
    
    6,360
    
    
    
    (340
    )
    
    
    (5.1
    )%Voice ARPU (yen/month/contract) (4)
    
    
    4,690
    
    
    
    4,160
    
    
    
    (530
    )
    
    
    (11.3
    )%Packet ARPU(yen/month/contract)
    
    
    2,010
    
    
    
    2,200
    
    
    
    190
    
    
    
    9.5
    %MOU (FOMA+mova) (minutes/month/contract) (3)(5)
    
    
    144
    
    
    
    138
    
    
    
    (6
    )
    
    
    (4.2
    )%Churn Rate (%) (2)
    
    
    0.78
    
    
    
    0.80
    
    
    
    0.02
    
    
    
    
 
 (1)
    
    Source for other cellular telecommunications operators: Data announced by Telecommunications
Carriers Association(2)
    
    Data calculated including Communication Module Service subscriptions.(3)
    
    Data calculated excluding Communication Module Services-related revenues and Communication
Module Services subscriptions.(4)
    
    Inclusive of circuit switched data communications.(5)
    
    MOU (Minutes of usage): Average communication time per month per subscription  81




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Breakdown of Financial Information
 Millions of yenYears ended March 31Increase2007
    
    
    2008
    
    
    (Decrease)
    
    
    Change (%)Operating revenues :Wireless services
    
    ¥
    4,314,140
    
    
    ¥
    4,165,234
    
    
    ¥
    (148,906
    )
    
    
    (3.5
    )%Cellular services revenues
    
    
    4,182,609
    
    
    
    4,018,988
    
    
    
    (163,621
    )
    
    
    (3.9
    )%- Voice revenues (6)
    
    
    2,940,364
    
    
    
    2,645,096
    
    
    
    (295,268
    )
    
    
    (10.0
    )%Including: FOMA
services
    
    
    1,793,037
    
    
    
    2,084,263
    
    
    
    291,226
    
    
    
    16.2
    %- Packet communications
revenues
    
    
    1,242,245
    
    
    
    1,373,892
    
    
    
    131,647
    
    
    
    10.6
    %Including: FOMA
services
    
    
    971,946
    
    
    
    1,254,648
    
    
    
    282,702
    
    
    
    29.1
    %PHS services revenues
    
    
    23,002
    
    
    
    9,472
    
    
    
    (13,530
    )
    
    
    (58.8
    )%Other revenues
    
    
    108,529
    
    
    
    136,774
    
    
    
    28,245
    
    
    
    26.0
    %Equipment sales
    
    
    473,953
    
    
    
    546,593
    
    
    
    72,640
    
    
    
    15.3
    %Total operating revenues
    
    
    4,788,093
    
    
    
    4,711,827
    
    
    
    (76,266
    )
    
    
    (1.6
    )%Operating expensesCost of services
    
    
    766,960
    
    
    
    811,133
    
    
    
    44,173
    
    
    
    5.8
    %Cost of equipment sold
    
    
    1,218,694
    
    
    
    1,150,261
    
    
    
    (68,433
    )
    
    
    (5.6
    )%Depreciation and amortization
    
    
    745,338
    
    
    
    776,425
    
    
    
    31,087
    
    
    
    4.2
    %Selling, general and administrative
    
    
    1,283,577
    
    
    
    1,165,696
    
    
    
    (117,881
    )
    
    
    (9.2
    )%Total operating expense
    
    
    4,014,569
    
    
    
    3,903,515
    
    
    
    (111,054
    )
    
    
    (2.8
    )%Operating income
    
    
    773,524
    
    
    
    808,312
    
    
    
    34,788
    
    
    
    4.5
    %Other income (expense)
    
    
    (581
    )
    
    
    (7,624
    )
    
    
    (7,043
    )
    
    
    Income before income taxes, equity in net
income (losses) of affiliates and minority
interests:
    
    
    772,943
    
    
    
    800,688
    
    
    
    27,745
    
    
    
    3.6
    %Income taxes
    
    
    313,679
    
    
    
    322,955
    
    
    
    9,276
    
    
    
    3.0
    %Income before equity in net income
(losses) of affiliates and minority
interests:
    
    
    459,264
    
    
    
    477,733
    
    
    
    18,469
    
    
    
    4.0
    %Equity in net income (losses) of
affiliates (net of applicable taxes)
    
    
    (1,941
    )
    
    
    13,553
    
    
    
    15,494
    
    
    
    Minority interests
    
    
    (45
    )
    
    
    (84
    )
    
    
    (39
    )
    
    
    (86.7
    )%Net income
    
    ¥
    457,278
    
    
    ¥
    491,202
    
    
    ¥
    33,924
    
    
    
    7.4
    %
 (6)
    
    Inclusive of circuit switched data communications.  82




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Analysis of operating results for the year ended March 31, 2008 and comparison with the prior
fiscal year
       83




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84




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Operating Results for the year ended March 31, 2007
  Key Performance Indicators
 Years ended March 31Increase2006
    
    
    2007
    
    
    (Decrease)
    
    
    Change (%)CellularSubscriptions (thousands)
    
    
    51,144
    
    
    
    52,621
    
    
    
    1,477
    
    
    
    2.9
    %FOMA services (thousands)
    
    
    23,463
    
    
    
    35,529
    
    
    
    12,066
    
    
    
    51.4
    %mova services (thousands)
    
    
    27,680
    
    
    
    17,092
    
    
    
    (10,589
    )
    
    
    (38.3
    )%i-mode services (thousands)
    
    
    46,360
    
    
    
    47,574
    
    
    
    1,214
    
    
    
    2.6
    %Market Share (%) (1)(2)
    
    
    55.7
    
    
    
    54.4
    
    
    
    (1.3
    )
    
    
    Aggregate ARPU (FOMA+mova) (yen/month/contract) (3)
    
    
    6,910
    
    
    
    6,700
    
    
    
    (210
    )
    
    
    (3.0
    )%Voice ARPU (yen/month/contract) (4)
    
    
    5,030
    
    
    
    4,690
    
    
    
    (340
    )
    
    
    (6.8
    )%Packet ARPU(yen/month/contract)
    
    
    1,880
    
    
    
    2,010
    
    
    
    130
    
    
    
    6.9
    %MOU (FOMA+mova) (minutes/month/contract) (3)(5)
    
    
    149
    
    
    
    144
    
    
    
    (5
    )
    
    
    (3.4
    )%Churn Rate (%) (2)
    
    
    0.77
    
    
    
    0.78
    
    
    
    0.01
    
    
    
    
 
 (1)
    
    Source for other cellular telecommunications operators: Data announced by Telecommunications
Carriers Association(2)
    
    Data calculated including Communication Module Service subscriptions.(3)
    
    Data calculated excluding Communication Module Services-related revenues and Communication
Module Services subscriptions.(4)
    
    Inclusive of circuit switched data communications.(5)
    
    MOU (Minutes of usage): Average communication time per month per subscription Breakdown of Financial Information
 Millions of yenYears ended March 31Increase2006
    
    
    2007
    
    
    (Decrease)
    
    
    Change (%)Operating revenues :Wireless services
    
    ¥
    4,295,856
    
    
    ¥
    4,314,140
    
    
    ¥
    18,284
    
    
    
    0.4
    %Cellular services revenues
    
    
    4,158,134
    
    
    
    4,182,609
    
    
    
    24,475
    
    
    
    0.6
    %- Voice revenues (6)
    
    
    3,038,654
    
    
    
    2,940,364
    
    
    
    (98,290
    )
    
    
    (3.2
    )%Including: FOMA
services
    
    
    1,169,947
    
    
    
    1,793,037
    
    
    
    623,090
    
    
    
    53.3
    %- Packet communications
revenues
    
    
    1,119,480
    
    
    
    1,242,245
    
    
    
    122,765
    
    
    
    11.0
    %Including: FOMA
services
    
    
    613,310
    
    
    
    971,946
    
    
    
    358,636
    
    
    
    58.5
    %PHS services revenues
    
    
    40,943
    
    
    
    23,002
    
    
    
    (17,941
    )
    
    
    (43.8
    )%Other revenues
    
    
    96,779
    
    
    
    108,529
    
    
    
    11,750
    
    
    
    12.1
    %Equipment sales
    
    
    470,016
    
    
    
    473,953
    
    
    
    3,937
    
    
    
    0.8
    %Total operating revenues
    
    
    4,765,872
    
    
    
    4,788,093
    
    
    
    22,221
    
    
    
    0.5
    %Operating expensesCost of services
    
    
    746,099
    
    
    
    766,960
    
    
    
    20,861
    
    
    
    2.8
    %Cost of equipment sold
    
    
    1,113,464
    
    
    
    1,218,694
    
    
    
    105,230
    
    
    
    9.5
    %Depreciation and amortization
    
    
    738,137
    
    
    
    745,338
    
    
    
    7,201
    
    
    
    1.0
    %Selling, general and administrative
    
    
    1,335,533
    
    
    
    1,283,577
    
    
    
    (51,956
    )
    
    
    (3.9
    )%Total operating expense
    
    
    3,933,233
    
    
    
    4,014,569
    
    
    
    81,336
    
    
    
    2.1
    %Operating income
    
    
    832,639
    
    
    
    773,524
    
    
    
    (59,115
    )
    
    
    (7.1
    )%Other income (expense) (7)
    
    
    119,664
    
    
    
    (581
    )
    
    
    (120,245
    )
    
    
    Income before income taxes, equity in net
losses of affiliates and minority
interests:
    
    
    952,303
    
    
    
    772,943
    
    
    
    (179,360
    )
    
    
    (18.8
    )%Income taxes
    
    
    341,382
    
    
    
    313,679
    
    
    
    (27,703
    )
    
    
    (8.1
    )%Income before equity in net losses of
affiliates and minority interests:
    
    
    610,921
    
    
    
    459,264
    
    
    
    (151,657
    )
    
    
    (24.8
    )%Equity in net losses of affiliates (net of
applicable taxes)
    
    
    (364
    )
    
    
    (1,941
    )
    
    
    (1,577
    )
    
    
    (433.2
    )%Minority interests
    
    
    (76
    )
    
    
    (45
    )
    
    
    31
    
    
    
    40.8
    %Net income
    
    ¥
    610,481
    
    
    ¥
    457,278
    
    
    ¥
    (153,203
    )
    
    
    (25.1
    )%
 (6)
    
    Inclusive of circuit switched data communications.(7)
    
    Inclusive of an aggregate gain on sales of Hutchison 3G UK Holdings Limited (H3G UK) and
KPN Mobile N.V. (KPN Mobile) shares of ¥101,992 million for the year ended March 31, 2006.  85




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Analysis of operating results for the year ended March 31, 2007 and comparison with the prior
fiscal year
      86




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##### Table of Contents



87




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##### Table of Contents



Segment Information
 General
   
    
    FOMA services;
 
    
    mova services;
 
    
    packet communications services;
 
    
    international services ;
 
    
    satellite mobile communications services; and
 
    
    equipment sales related to these services.
  Mobile phone business segment
   88




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##### Table of Contents



PHS business segment
  Miscellaneous businesses segment
  Recent Accounting Pronouncements
     89




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##### Table of Contents



Critical Accounting Policies
  Useful lives of property, plant and equipment, internal use software and other intangible
assets
  Impairment of long-lived assets
  
    
    significant decline in the market value of an asset;
 
    
    loss of operating cash flow in current period;
 
    
    introduction of competitive technologies and services;
 
    
    significant underperformance of expected or historical cash flows;
 
    
    significant or continuing decline in subscriptions;
 
    
    changes in the manner of usage of an asset; and
 
    
    other negative industry or economic trends.
  90




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##### Table of Contents



Impairment of investments
  
    
    significant or continued declines in the market values of the investee;
 
    
    loss of operating cash flow in current period;
 
    
    significant underperformance of historical cash flows of the investee;
 
    
    significant impairment losses or write-downs recorded by the investee;
 
    
    significant changes in the quoted market price of public investee affiliates;
 
    
    negative results of competitors of investee affiliates; and
 
    
    other negative industry or economic trends.
    91




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Deferred tax assets
  Pension liabilities
    Years ended March 312007
    
    2008Non-contributory defined benefit pension planDiscount rate
    
    2.2%
    
    2.3%Expected long-term rate of return on
plan assets
    
    2.5%
    
    2.5%Actual return on plan assets
    
    Approximately 3%
    
    Approximately (9)%NTT CDBPDiscount rate
    
    2.2%
    
    2.3%Expected long-term rate of return on
plan assets
    
    2.5%
    
    2.5%Actual return on plan assets
    
    Approximately 3%
    
    Approximately (5)%
  92




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Billions of yenAccumulated otherChange in pension
    
    
    comprehensiveChange in projected
    
    
    cost, before
    
    
    income, net ofChange in Assumptions
    
    benefit obligation
    
    
    applicable taxes
    
    
    applicable taxesNon-contributory defined benefit pension plan0.5% increase/decrease in discount rate
    
    
    (11.6) / 12.5
    
    
    
    0.3 / (0.2)
    
    
    
    7.0 / (7.5)0.5% increase/decrease in expected
long-term rate of return on plan assets
    
    
    
    
    
    
    (0.4) / 0.4
    
    
    
    NTT CDBP0.5% increase/decrease in discount rate
    
    
    (8.6) / 9.7
    
    
    
    0.3 / (0.3)
    
    
    
    5.3 / (5.9)0.5% increase/decrease in expected
long-term rate of return on plan assets
    
    
    
    
    
    
    (0.4) / 0.5
    
    
    
    
  Revenue recognition
  B. Liquidity and Capital Resources.
Cash Requirements
   93




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##### Table of Contents



Capital Expenditures
        94




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##### Table of Contents



Long-term Debt and other Contractual Obligations
     Rating agencies
    
    Type of rating
    
    rating
    
    OutlookMoodys
    
    Long Term Obligation Rating
    
    Aa1
    
    StableStandard & Poors
    
    Long-Term Issuer Credit Rating
    
    AA
    
    StableStandard & Poors
    
    Long-Term Issue Credit Rating
    
    AA
    
    Japan Credit Rating Agency, Ltd.
    
    Long-Term Senior Debt Rating
    
    AAA
    
    StableRating and Investment
Information, Inc.
    
    Issuer Rating
    
    AA+
    
    Stable
   Long Term Debt, Lease Obligations and other Contractual Obligations
 Payments Due by Period1 year
    
    
    
    
    
    
    
    
    
    
    AfterCategory of Obligations
    
    Total
    
    
    or less
    
    
    1-3 years
    
    
    4-5 years
    
    
    5 years(millions of yen)Long-Term DebtBonds
    
    ¥
    381,511
    
    
    ¥
    49,200
    
    
    ¥
    163,845
    
    
    ¥
    168,466
    
    
    ¥
    Loans
    
    
    95,241
    
    
    
    26,462
    
    
    
    46,037
    
    
    
    22,742
    
    
    
    Capital Leases
    
    
    8,284
    
    
    
    3,036
    
    
    
    3,923
    
    
    
    1,264
    
    
    
    61Operating Leases
    
    
    22,629
    
    
    
    2,152
    
    
    
    3,391
    
    
    
    2,848
    
    
    
    14,238Other Contractual Obligations
    
    
    118,695
    
    
    
    118,695
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    ¥
    626,360
    
    
    ¥
    199,545
    
    
    ¥
    217,196
    
    
    ¥
    195,320
    
    
    ¥
    14,299
 
 *
    
    The amount of contractual obligations which is immaterial in amount or of which the timing of
payments are uncertain is not included in Other Contractual Obligations in the above table.  95




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Sources of Cash
  Years ended March 312006
    
    
    2007
    
    
    2008(millions of yen)Net cash provided by operating activities
    
    ¥
    1,610,941
    
    
    ¥
    980,598
    
    
    ¥
    1,560,140Net cash used in investing activities
    
    
    (951,077
    )
    
    
    (947,651
    )
    
    
    (758,849
    )Net cash used in financing activities
    
    
    (590,621
    )
    
    
    (531,481
    )
    
    
    (497,475
    )Net increase (decrease) in cash and cash
equivalents
    
    
    70,772
    
    
    
    (497,662
    )
    
    
    303,843Cash and cash equivalents at beginning
of year
    
    
    769,952
    
    
    
    840,724
    
    
    
    343,062Cash and cash equivalents at end of year
    
    ¥
    840,724
    
    
    ¥
    343,062
    
    
    ¥
    646,905
 Analysis of cash flows for the year ended March 31, 2008 and comparison with the prior fiscal
year
  
    
    a decrease in the net payment of income taxes by ¥179.2 billion, where the payment
of income taxes decreased to ¥ 200.1 billion from ¥359.9 billion in the prior fiscal year
and the collection of income taxes receivable increased to ¥20.3 billion from ¥0.9
billion in the prior fiscal year, after deferred tax asset from the impairment of our
investment in H3G UK was realized; and
 
    
    as banks were closed on the last day of March 2007, cash in the amount of ¥210.0
billion including cellular revenues, which would have been received by March 31, 2007,
was actually received in April 2007.
  
    
    expenditures for purchases of tangible and intangible assets decreased to ¥765.3
billion from ¥948.7 billion in the prior fiscal year;
  96




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
    
    net proceeds from redemption of long-term investments and changes in investments
with original maturities of more than three months for cash management purposes increased
to ¥148.9 billion from ¥50.7 billion in the prior fiscal year, and
 
    
    purchases of non-current investments increased to ¥124.3 billion from ¥41.9 billion
in the prior fiscal year.
   
    
    a decrease in the repayment of long-term debt to ¥131.0 billion from ¥193.7 billion
in the prior fiscal year;
 
    
    an increase in dividend payments to ¥190.5 billion from ¥176.9 billion in the prior
fiscal year; and
 
    
    an increase in payments to acquire treasury stock to ¥173.0 billion from ¥157.2
billion in the prior fiscal year.
  Analysis of cash flows for the year ended March 31, 2007 and comparison with the prior fiscal
year
  
    
    an increase in the payment of income taxes to ¥359.9 billion from ¥182.9 billion
and a decrease in the collection of income taxes receivable to ¥0.9 billion from ¥93.1
billion in the prior fiscal year, when deferred tax asset from the impairment of our
investment in AT&T Wireless Services, Inc. was realized; and
 
    
    because the bank was closed on the last day of March 2007, which fell on a weekend,
our cash reception of ¥210.0 billion including cellular revenues was deferred to the
following month.
  
    
    expenditures for purchases of tangible and intangible assets increased to ¥948.7
billion from ¥833.9 billion in the prior fiscal year;
  97




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
    
    proceeds from redemption of long-term investments and changes in investments with
original maturities of more than three months for cash management purposes decreased to
¥50.7 billion from ¥149.0 billion in the prior fiscal year, and
 
    
    purchases of non-current investments decreased to ¥41.9 billion from ¥292.6 billion
in the prior fiscal year.
   
    
    an increase in the repayment for long-term debt to ¥193.7 billion from ¥150.3
billion in the prior fiscal year;
 
    
    an increase in dividend payments to ¥176.9 billion from ¥135.5 billion in the prior
fiscal year; and
 
    
    a decrease in payments to acquire treasury stock to ¥157.2 billion from ¥300.1
billion in the prior fiscal year.
  Prospect of cash flows for the year ending March 31, 2009
   C. Research and Development
  D. Trend Information
   98




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
    
    While we anticipate that an increase in new subscriptions will be limited due to
the high cellular phone penetration rate, we expect to acquire a higher net increase in
the number of subscriptions in the year ending March 31, 2009 compared to that in the
year ended March 31, 2008, by taking measures such as lowering the churn rate through our
marketing aimed at upgrading brand loyalty and improving the satisfaction of current subscribers.
Furthermore, we expect the proportion of FOMA subscriptions to increase to approximately
90% of our total cellular subscriptions due to ongoing migration of our mova subscribers
to FOMA services;
 
    
    Aggregate ARPU (FOMA+mova) and voice ARPU (FOMA+mova) each decreased while packet
ARPU (FOMA+mova) increased in the year ended March 31, 2008, as compared to the prior
fiscal year. We expect these trends to continue in the year ending March 31, 2009,
primarily as a result of the penetration of the discount programs implemented in prior
years to strengthen our competitiveness and the effects of a decrease in revenue in
conjunction with the introduction of the Value Plan. The Value Plan provides
discounted basic monthly charges in exchange for the subscribers payment for the
handset price not discounted by handset sales incentives. With regards to the packet
ARPU, the increase is due primarily to the uptrend in billed amounts in conjunction with
the migration from mova to FOMA and the increase in subscriptions to our optional packet
flat-rate service for unlimited i-mode usage;
 
    
    With regard to equipment sales, in the fiscal year ended March 31, 2008, the
number of handsets sold to sales agents and handset costs declined compared to the
previous fiscal year, but with the introduction of the Value Course in November 2007,
handset sales incentives which are deducted from equipment sales were reduced, and after
deduction of sales commission to agent resellers, equipment sales increased over the
previous fiscal year. In the fiscal year ending March 31, 2009, we expect an increase in
the number of handsets sold wholesale to agent resellers is expected, and combined with
further market penetration by the Value Course, we expect this increase to lead to a
decline of handset sales incentives which are deducted from equipment sales, and we
expect equipment sales after deduction of sales commission to agent resellers to
increase significantly over the previous fiscal year.
 
    
    Due to the above, we expect operating income for the fiscal year ending March 31,
2009 to increase over the previous fiscal year. Despite a decrease in cellular services
revenues resulting from the decrease in aggregate ARPU exceeding the effects of
increased revenue in conjunction with subscriber growth, we expect that this decrease
will be more than offset by the increase in equipment sales.
 
    
    We expect SG&A expenses, network cost (telecommunication facility use charges,
depreciation and amortization cost, loss on sale or disposal of fixed assets) and other
operating expenses for the fiscal year ending March 31, 2009, to remain at the same
level as the previous fiscal year. While we expect measures implemented to improve the
satisfaction of current subscribers (including CI changes through revamping of the
corporate brand and the merger with the regional DOCOMO companies) to lead to an
increase in general expenses, this increase will be offset by a decrease in sales
commissions through market penetration of the Value Course and greater efficiency and
lower costs in capital investment.
    99




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E. Off-Balance Sheet Arrangements
  F. Tabular Disclosure of Contractual Obligations
  
 Item 6. Directors, Senior Management and Employees
 A. Directors and Senior Management
 Directors, Corporate Officers and Corporate Auditors
  kaishaho"
  100




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101




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##### Table of Contents



Current
    
    
    
    
    
    InitialResponsibility
    
    Date of
    
    Term
    
    Shares
    
    AppointmentName
    
    Position
    

As
of June 26, 2008
    
    From July 1, 2008
    
    Birth
    
    Expires
    
    Owned(1)
    
    DateDirectors:Ryuji Yamada(2)
    
    President and Chief Executive Officer
    
    
    
    
    
    May 5, 1948
    
    June 2010
    
    
    143
    
    
    June 2007Kiyoyuki Tsujimura(2)
    
    Senior Executive Vice President
    
    Managing Director of Products & Services Division
    
    Responsible for: Multimedia Services, Technology
    
    Jan. 11, 1950
    
    June 2010
    
    
    146
    
    
    June 2001Information Systems DepartmentIntellectual Property DepartmentProcurement and Supply DepartmentMasatoshi Suzuki(2)
    
    Senior Executive Vice President
    
    Managing Director of Global Business Division
    
    Responsible for: Global Business, Corporate
    
    Oct. 30, 1951
    
    June 2010
    
    
    61
    
    
    June 2007Public Relations DepartmentLegal DepartmentGeneral Affairs DepartmentHuman Resources Management DepartmentInternal Audit DepartmentInvestor Relations DepartmentHiroshi Matsui(2)
    
    Senior Executive Vice President
    
    Information Security Department
    
    Responsible for: CSR, Branches in Kanto and Koshinetsu areas
    
    Aug. 6, 1946
    
    June 2010
    
    
    16
    
    
    June 2008Corporate Citizenship DepartmentResponsible for BranchesHarunari Futatsugi*
    
    Executive Vice President
    
    Managing Director of Network Division
    
    Responsible for: Network
    
    Nov. 23, 1951
    
    June 2010
    
    
    67
    
    
    June 2003Bunya Kumagai*
    
    Executive Vice President
    
    Managing Director of Marketing Division
    
    Responsible for: Consumer Sales
    
    Oct. 13, 1952
    
    June 2010
    
    
    70
    
    
    June 2006Kazuto Tsubouchi*
    
    Executive Vice President and Chief Financial Officer
    
    Managing Director of Accounts and Finance Department
    
    Managing Director of Accounts and Finance Department
    
    May 2, 1952
    
    June 2010
    
    
    42
    
    
    June 2006Affiliated Companies Department
    
    Responsible for: Business AllianceKaoru Kato*
    
    Executive Vice President
    
    Managing Director of Corporate Strategy & Planning Department
    
    Managing Director of Corporate Strategy & Planning Department
    
    May 20, 1951
    
    June 2010
    
    
    28
    
    
    June 2008Mitsunobu Komori*
    
    Executive Vice President
    
    Managing Director of Research and Development Division
    
    Managing Director of R&D Center
    
    Sep. 18, 1952
    
    June 2010
    
    
    45
    
    
    June 2008Takashi Tanaka*
    
    Senior Vice President
    
    Managing Director of Human Resources Management Department
    
    Managing Director of Human Resources Management Department
    
    June 2, 1955
    
    June 2010
    
    
    38
    
    
    June 2007
  102




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Current
    
    
    
    
    
    InitialResponsibility
    
    Date of
    
    Term
    
    Shares
    
    AppointmentName
    
    Position
    

As
of June 26, 2008
    
    From July 1, 2008
    
    Birth
    
    Expires
    
    Owned(1)
    
    DateKatsuhiro Nakamura*
    
    Senior Vice President
    
    Managing Director of General Affairs Department
    
    Managing Director of General Affairs Department
Managing Director of Corporate Citizenship Department
    
    Mar. 2, 1953
    
    June 2010
    
    
    31
    
    
    June 2008Masao Nakamura
    
    Member of the Board
    
    Corporate Advisor
    
    Corporate Advisor
    
    Nov. 11, 1944
    
    June 2010
    
    
    200
    
    
    June 1998Hiroshi Tsujigami
    
    Member of the Board
    
    
    
    
    
    Sep. 8, 1958
    
    June 2010
    
    
    10
    
    
    June 2008Haruo Imai (3)
    
    Corporate Auditor
    
    
    
    
    
    Feb. 5, 1945
    
    June 2011
    
    
    36
    
    
    June 2007Kenichi Aoki(3)
    
    Corporate Auditor
    
    
    
    
    
    Oct. 9, 1946
    
    June 2011
    
    
    32
    
    
    June 2008Shunichi Tamari (3)
    
    Corporate Auditor
    
    
    
    
    
    Jan. 10, 1949
    
    June 2012
    
    
    48
    
    
    June 2008Kyouichi Yoshizawa(3)
    
    Corporate Auditor
    
    
    
    
    
    Apr. 12, 1950
    
    June 2011
    
    
    30
    
    
    June 2007Takaaki Wakasugi
    
    Corporate Auditor
    
    
    
    
    
    Mar. 11, 1943
    
    June 2011
    
    
    33
    
    
    June 2007
 
 (1)
    
    DOCOMO shares owned as of May 31, 2008(2)
    
    Representative Director(3)
    
    Full-time Corporate Auditor*
    
    Concurrently serves as a Corporate Officer Ryuji Yamada
 Kiyoyuki Tsujimura
 Masatoshi Suzuki
 Hiroshi Matsui
 Harunari Futatsugi
 Bunya Kumagai
 Kazuto Tsubouchi
  103




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Kaoru Kato
 Mitsunobu Komori
 Takashi Tanaka
 Katsuhiro Nakamura
 Masao Nakamura
 Hiroshi Tsujigami
 Haruo Imai
 Kenichi Aoki
 Shunichi Tamari
 Kyoichi Yoshizawa
 Takaaki Wakasugi
  104




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ResponsibilityName
    
    Position
    
    As of June 26, 2008
    
    From July 1, 2008Corporate Officers:Akio Oshima
    
    Executive Vice President
    
    Managing Director of Corporate Marketing Division
    
    Managing Director of Corporate Marketing DivisionHaruhide Nakayama
    
    Executive Vice President
    
    Deputy Managing Director of Corporate Marketing Division
    
    Deputy Managing Director of Corporate Marketing DivisionShozo Nishimura
    
    Executive Vice President
    
    
    
    Managing Director of Kansai regional officeToru Kobayashi
    
    Executive Vice President
    
    
    
    Managing Director of Tokai Regional OfficeHiroaki Nishioka**
    
    Senior Vice President
    
    Managing Director of DCMX Business Department
    
    Managing Director of Credit Card Business DivisionMasaki Yoshikawa***
    
    Senior Vice President
    
    Responsible for U.S. operations, Global Business Division
    
    Responsible for:
U.S. operations, Global Business DivisionTatsuji Habuka
    
    Senior Vice President
    
    Managing Director of Service & Solution Development Department
    
    Managing Director of Services & Solution Development DepartmentAkiko Ide
    
    Senior Vice President
    
    Managing Director of Corporate Citizenship Department
    
    Managing Director of Chugoku Regional OfficeYuji Araki
    
    Senior Vice President
    
    Managing Director of Public Relations Department
Managing Director of Advertisement Department
    
    Managing Director of Advertising & Promotion DepartmentKiyoshi Tokuhiro
    
    Senior Vice President
    
    Managing Director of Network Planning Department
    
    Managing Director of Network DepartmentSeiji Nishikawa
    
    Senior Vice President
    
    Managing Director of Information Systems Department
    
    Managing Director of Information Systems DepartmentToshinari Kunieda
    
    Senior Vice President
    
    Managing Director of Global Business Department
    
    Managing Director of Global Business DivisionTsutomu Shindou
    
    Senior Vice President
    
    Managing Director of Corporate Marketing Department I
    
    Managing Director of Corporate Marketing Department IKazuhiro Yoshizawa
    
    Senior Vice President
    
    Managing Director of Corporate Marketing Department II
    
    Managing Director of Corporate Marketing Department IIKiyohito Nagata
    
    Senior Vice President
    
    Managing Director of Product Department
    
    Managing Director of Product DepartmentTooru Azumi
    
    Senior Vice President
    
    Managing Director of DIG Promotion Office
    
    Managing Director of Business Process Improvement OfficeMasaaki Sado
    
    Senior Vice President
    
    Deputy Managing Director of Corporate Branding Division
    
    Managing Director of Strategic Marketing DepartmentYasuhiro Taguchi
    
    Senior Vice President
    
    General Manager of Kanagawa Branch
    
    General Manager of Kanagawa Branch
  105




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##### Table of Contents



ResponsibilityName
    
    Position
    
    As of June 26, 2008
    
    From July 1, 2008Shoji Suto
    
    Senior Vice President
    
    Managing Director of Sales Promotion Department
    
    Managing Director of Sales Promotion DepartmentSeizo Onoe
    
    Senior Vice President
    
    Managing Director of R&D Strategy Department
Managing Director of Radio Access Network Development Department
    
    Managing Director of R&D Strategy DepartmentTadashi Kitamura
    
    Senior Vice President
    
    
    
    Managing Director of Hokuriku Regional OfficeFumio Iwasaki
    
    Senior Vice President
    
    
    
    Managing Director of Kyushu Regional OfficeYoshiharu Yamazaki
    
    Senior Vice President
    
    
    
    Managing Director of Shikoku Regional OfficeTetsuya Suzuki
    
    Senior Vice President
    
    
    
    Managing Director of Tohoku Regional Office
 *
    
    Appointment takes effect as of July 1, 2008.**
    
    Hiroaki Nishioka is scheduled to be appointed as the Managing Director of Hokkaido Regional
Office effective on July 14, 2008.***
    
    Masaki Yoshikawa is scheduled to be appointed as the Managing Director of Credit Card Business
Division effective on July 14, 2008.  B. Compensation
  Position
    
    Number of Persons
    
    
    Total CompensationDirector
    
    
    11
    
    
    ¥
    430 millionCorporate Auditor
    
    
    5
    
    
    
    112 millionTotal
    
    
    16
    
    
    
    542 million
  1.
    
    Upper limits on compensation to directors and corporate auditors were set at ¥600 million
annually for Directors and ¥150 million annually for Corporate Auditors at the 15th ordinary
general meeting of shareholders held on June 20, 2006.2.
    
    Compensation to Directors includes bonuses in the amount of ¥105 million relating to the year
ended March 31, 2008, which were paid after the date.3.
    
    The amount presented above includes the compensation to Directors and Corporate Auditors who
held an office after the 16th ordinary general meeting of shareholders held on June 19, 2007 .
Total amount of compensation paid to Directors and Corporate Auditors who retired on or before
June 19, 2007 (the date of the 16th ordinary general meeting of shareholders) was ¥36 million.
 C. Board Practices
    106




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D. Employees
  E. Share Ownership
    
 Item 7. Major Shareholders and Related Party Transactions
 A. Major Shareholders
    107




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Number of
    
    
    Number of
    
    
    Outstanding VotingCategory
    
    Shareholders
    
    
    Shares Held
    
    
    SharesJapanese financial institutions
    
    
    288
    
    
    
    5,004,181
    
    
    
    11.15Japanese securities companies
    
    
    81
    
    
    
    297,812
    
    
    
    0.67Other Japanese corporations
    
    
    2,476
    
    
    
    28,169,882
    
    
    
    62.78Foreign corporations and individuals
    
    
    973
    
    
    
    6,244,872
    
    
    
    13.92Japanese individuals, treasury shares and others
    
    
    336,699
    
    
    
    5,153,253
    
    
    
    11.48Total
    
    
    340,517
    
    
    
    44,870,000
    
    
    
    100.00
 
    B. Related Party Transactions
   C. Interests of Experts and Counsel
  
 Item 8. Financial Information
 A. Consolidated Statements and Other Financial Information
 Financial Statements
  Legal or Arbitration Proceedings
  Dividend Policy
   108




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B. Significant Changes
  
 Item 9. The Offer and Listing
 A. Offer and Listing Details
 Price Ranges of Shares
  AveragedailyTokyo Stock Exchange
    
    
    trading
    
    
    
    
    
    
    
    
    
    
    Closing Nikkei StockPrice per share (1)
    
    
    volume of
    
    
    Closing TOPIX
    
    
    AverageHigh
    
    
    Low
    
    
    shares
    
    
    High
    
    
    Low
    
    
    High
    
    
    LowFiscal Period2003:First Quarter
    
    
    276,000
    
    
    
    225,000
    
    
    
    64,097
    
    
    
    865.43
    
    
    
    770.62
    
    
    
    9,137.14
    
    
    
    7,607.88Second Quarter
    
    
    315,000
    
    
    
    260,000
    
    
    
    84,490
    
    
    
    904.32
    
    
    
    773.10
    
    
    
    11,033.32
    
    
    
    9,265.56Third Quarter
    
    
    291,000
    
    
    
    216,000
    
    
    
    99,485
    
    
    
    1,075.73
    
    
    
    915.91
    
    
    
    11,161.71
    
    
    
    9,614.60Fourth Quarter
    
    
    249,000
    
    
    
    213,000
    
    
    
    109,584
    
    
    
    1,105.59
    
    
    
    953.19
    
    
    
    11,770.65
    
    
    
    10,365.402004:First Quarter
    
    
    241,000
    
    
    
    187,000
    
    
    
    96,995
    
    
    
    1,217.87
    
    
    
    1,053.77
    
    
    
    12,163.89
    
    
    
    10,505.05Second Quarter
    
    
    211,000
    
    
    
    173,000
    
    
    
    91,867
    
    
    
    1,188.42
    
    
    
    1,084.64
    
    
    
    11,896.01
    
    
    
    10,687.81Third Quarter
    
    
    199,000
    
    
    
    174,000
    
    
    
    78,790
    
    
    
    1,149.63
    
    
    
    1,073.20
    
    
    
    11,488.76
    
    
    
    10,659.15Fourth Quarter
    
    
    189,000
    
    
    
    174,000
    
    
    
    89,373
    
    
    
    1,203.26
    
    
    
    1,132.18
    
    
    
    11,966.69
    
    
    
    11,238.372005:First Quarter
    
    
    183,000
    
    
    
    160,000
    
    
    
    88,149
    
    
    
    1,201.30
    
    
    
    1,109.19
    
    
    
    11,874.75
    
    
    
    10,825.39Second Quarter
    
    
    207,000
    
    
    
    162,000
    
    
    
    126,789
    
    
    
    1,428.13
    
    
    
    1,177.61
    
    
    
    13,617.24
    
    
    
    11,565.99Third Quarter
    
    
    213,000
    
    
    
    178,000
    
    
    
    149,309
    
    
    
    1,663.75
    
    
    
    1,371.37
    
    
    
    16,344.20
    
    
    
    13,106.18Fourth Quarter
    
    
    199,000
    
    
    
    167,000
    
    
    
    163,559
    
    
    
    1,728.16
    
    
    
    1,572.11
    
    
    
    17,059.66
    
    
    
    15,341.182006:First Quarter
    
    
    185,000
    
    
    
    162,000
    
    
    
    160,541
    
    
    
    1,783.72
    
    
    
    1,458.30
    
    
    
    17,563.37
    
    
    
    14,218.60Second Quarter
    
    
    183,000
    
    
    
    162,000
    
    
    
    96,509
    
    
    
    1,651.35
    
    
    
    1,475.28
    
    
    
    16,385.96
    
    
    
    14,437.24Third Quarter
    
    
    193,000
    
    
    
    176,000
    
    
    
    106,150
    
    
    
    1,681.07
    
    
    
    1,532.95
    
    
    
    17,225.83
    
    
    
    15,725.94Fourth Quarter
    
    
    227,000
    
    
    
    184,000
    
    
    
    180,800
    
    
    
    1,816.97
    
    
    
    1,656.72
    
    
    
    18,215.35
    
    
    
    16,642.252007:First Quarter
    
    
    222,000
    
    
    
    192,000
    
    
    
    110,361
    
    
    
    1,789.38
    
    
    
    1,682.49
    
    
    
    18,240.30
    
    
    
    17,028.41Second Quarter
    
    
    196,000
    
    
    
    160,000
    
    
    
    134,071
    
    
    
    1,792.23
    
    
    
    1,480.39
    
    
    
    18,261.98
    
    
    
    15,273.68Third Quarter
    
    
    190,000
    
    
    
    150,000
    
    
    
    149,269
    
    
    
    1,677.52
    
    
    
    1,437.38
    
    
    
    17,458.98
    
    
    
    14,837.66Fourth Quarter
    
    
    188,000
    
    
    
    149,000
    
    
    
    150,366
    
    
    
    1,424.29
    
    
    
    1,149.65
    
    
    
    14,691.41
    
    
    
    11,787.51
  109




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AveragedailyTokyo Stock Exchange
    
    
    trading
    
    
    
    
    
    
    
    
    
    
    Closing Nikkei StockPrice per share (1)
    
    
    volume of
    
    
    Closing TOPIX
    
    
    AverageHigh
    
    
    Low
    
    
    shares
    
    
    High
    
    
    Low
    
    
    High
    
    
    LowCalendar Period2007:December
    
    
    190,000
    
    
    
    176,000
    
    
    
    133,273
    
    
    
    1,567.02
    
    
    
    1,456.79
    
    
    
    16,044.72
    
    
    
    15,030.512008:January
    
    
    188,000
    
    
    
    151,000
    
    
    
    174,541
    
    
    
    1,424.29
    
    
    
    1,219.95
    
    
    
    14,691.41
    
    
    
    12,573.05February
    
    
    173,000
    
    
    
    151,000
    
    
    
    156,711
    
    
    
    1,364.72
    
    
    
    1,285.35
    
    
    
    14,031.30
    
    
    
    13,017.24March
    
    
    160,000
    
    
    
    149,000
    
    
    
    121,054
    
    
    
    1,287.55
    
    
    
    1,149.65
    
    
    
    13,215.42
    
    
    
    11,787.51April
    
    
    161,000
    
    
    
    151,000
    
    
    
    88,892
    
    
    
    1,361.75
    
    
    
    1,230.49
    
    
    
    13,894.37
    
    
    
    12,656.42May
    
    
    168,000
    
    
    
    152,000
    
    
    
    105,355
    
    
    
    1,408.14
    
    
    
    1,341.76
    
    
    
    14,338.54
    
    
    
    13,655.34June (through June 13, 2008)
    
    
    163,000
    
    
    
    154,000
    
    
    
    79,860
    
    
    
    1,430.47
    
    
    
    1,363.14
    
    
    
    14,489.44
    
    
    
    13,888.60
 (1)
    
    On January 25, 2002, our Board of Directors declared a five-for-one common stock split. The record date for the split was March
31, 2002, and the new shares were distributed on May 15, 2002. Due to this stock split, there are 40,144,000 additional shares issued
and 50,180,000 total shares in issue.   AverageNew York Stock Exchange
    
    
    daily tradingPrice per share
    
    
    volume ofClosing High
    
    
    Closing Low
    
    
    sharesFiscal Period:2007:First Quarter
    
    
    18.72
    
    
    
    15.56
    
    
    
    242,196Second Quarter
    
    
    16.04
    
    
    
    13.81
    
    
    
    276,194Third Quarter
    
    
    16.71
    
    
    
    13.16
    
    
    
    285,618Fourth Quarter
    
    
    17.17
    
    
    
    14.25
    
    
    
    277,316Calendar Period:2007:December
    
    
    16.71
    
    
    
    15.44
    
    
    
    229,4982008:January
    
    
    17.17
    
    
    
    14.80
    
    
    
    295,598February
    
    
    16.09
    
    
    
    14.25
    
    
    
    252,453March
    
    
    15.65
    
    
    
    14.78
    
    
    
    282,985April
    
    
    15.64
    
    
    
    14.43
    
    
    
    228,179May
    
    
    15.97
    
    
    
    14.85
    
    
    
    179,005June (through June 13, 2007)
    
    
    15.60
    
    
    
    14.36
    
    
    
    221,307
  B. Plan of Distribution
  C. Markets
   110




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D. Selling Shareholders
  E. Dilution
  F. Expenses of the Issue
  
 Item 10. Additional Information
 A. Share Capital
  B. Memorandum and Articles of Association
 Objects and Purposes in Our Articles of Incorporation
  Provisions Regarding Our Directors
 kaishaho"
     Holding of Our Shares by Foreign Investors
   111




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Rights of Our Shareholders
  General
      112




---



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Dividends
              113




---



##### Table of Contents



114




---



##### Table of Contents



Capital and Reserves
   Stock Splits
  Consolidation of Shares
  Fractional Shares
   115




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##### Table of Contents



General Meeting of Shareholders
   Voting Rights
   
    
    any amendment of our articles of incorporation (except for amendments that may be
authorized solely by the board of directors under the Corporation Law);
    
    a reduction of stated capital, except for a reduction of stated capital for the purpose
of replenishing capital deficiencies at the day of the ordinary general meeting ;
    
    a distribution by us of surplus in-kind, if we do not grant shareholders the right to
require us to effect the distribution in cash, instead of in-kind;
    
    a dissolution, a merger, subject to a certain exception under which a shareholders
resolution is not required;
    
    the transfer of the whole or an important part of the business, except for the transfer
of an important part of the business in which the book value of transferred assets does
not exceed 20% of that of the companys total assets;
    
    the taking over of the whole of the business of any other corporation;
    
    a share exchange or share transfer for the purpose of establishing a 100%
parent-subsidiary relationship, subject to a certain exception under which a shareholders
resolution is not required;
  116




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##### Table of Contents




    
    a company split, subject to a certain exception under which a shareholders resolution
is not required;
    
    the offering of shares at a specially favorable price and any offering of stock
acquisition rights or bonds with stock acquisition rights at a specially favorable price
or in a specially favorable condition to any persons other than shareholders; and
    
    any purchase of the companys own shares from a certain person.
  Liquidation Rights
  Issue of Additional Shares and Pre-emptive Rights
   Dilution
  Report to Shareholders
   117




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##### Table of Contents



Record Date
  Repurchase by Us of Shares and Treasury Shares
  (i)
    
    a resolution at a general meeting of shareholders,(ii)
    
    a resolution of the Board of Directors if the acquisition is in accordance
with our Articles of Incorporation; or(iii)
    
    a resolution of the Board of Directors if the acquisition is to purchase our
 shares from a subsidiary.
   
    
    in the case of (i) and (ii) above:
 
    
    through the stock exchanges on which the shares are listed or the
over-the-counter markets on which the shares are traded; or
    
    by way of tender offer;
 
    
    in the case of (i) above, from a specific person, but only if our shareholders
approve this acquisition by special resolution; and
    
    in the case of (iii) above, from the subsidiary.
   Shareholders of Unknown Location
    118




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##### Table of Contents



The Japan Securities Depositary Center, Inc.
  American Depositary Receipts
   Reporting of Substantial Shareholders
  Daily Price Fluctuation Limits under Japanese Financial Exchange Rules
   Selected Daily Price Limits
 Maximum DailyPrevious Days Closing Price or Special Quote
    
    
    Price MovementOver
    
    ¥
    100,000
    
    
    Less than
    
    ¥
    150,000
    
    
    ¥
    20,000Over
    
    
    150,000
    
    
    Less than
    
    
    200,000
    
    
    
    30,000Over
    
    
    200,000
    
    
    Less than
    
    
    300,000
    
    
    
    40,000
   119




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##### Table of Contents



C. Material Contracts
  D. Exchange Controls
  E. Taxation
 United States Federal Income Taxation
  
    
    a dealer in securities;
    
    a trader in securities that elects to use a mark-to-market method of accounting for
securities holdings;
    
    a tax-exempt organization;
    
    a life insurance company;
    
    a person liable for alternative minimum tax;
    
    a person that actually or constructively owns 10% or more of our voting stock;
    
    a person that holds shares or ADSs as part of a straddle or a hedging or conversion
transaction; or
    
    a person whose functional currency is not the U.S. dollar.
    
    
    a citizen or resident of the United States;
    
    a domestic corporation;
  120




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##### Table of Contents




    
    an estate whose income is subject to United States federal income tax regardless of
its source; or
    
    a trust if a United States court can exercise primary supervision over the trusts
administration and one or more United States persons are authorized to control all
substantial decisions of the trust.
 You should consult your own tax advisor regarding the United
States federal, state and local and the Japanese and other tax
consequences of owning and disposing of shares and ADSs in your
particular circumstances.
 Taxation of Dividends
   pro rata
  121




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##### Table of Contents



Taxation of Capital Gains
  Passive Foreign Investment Company Rules
   Japanese Taxation
  
    
    the overall tax consequences of the acquisition, ownership and disposition of shares
or ADSs, including specifically the tax consequences under Japanese law;
    
    the laws of the jurisdiction of which they are resident; and
    
    any tax treaty between Japan and their country of residence.
   122




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F. Dividends and Paying Agents
  G. Statement by Experts
  H. Documents on Display
  1-800-SEC-0330.
  I. Subsidiary Information
  
 Item 11. Quantitative and Qualitative Disclosures about Market Risk
    123




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Interest rate risk
   124




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##### Table of Contents



WeightedAverageInterestRate
    
    
    Expected Maturity
    
    
    Fair(per
    
    
    (Year Ended March 31)
    
    
    valueannum)
    
    
    2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    Thereafter
    
    
    Total
    
    
    3/31/08(Millions of yen)DEBTCorporate bondsJapanese Yen Bonds
    
    
    1.4
    %
    
    
    49,200
    
    
    
    
    
    
    
    163,845
    
    
    
    168,466
    
    
    
    
    
    
    
    
    
    
    
    381,511
    
    
    
    385,430Borrowings from banks
and othersJapanese Yen Loans
    
    
    1.2
    %
    
    
    26,018
    
    
    
    29,018
    
    
    
    17,019
    
    
    
    6,000
    
    
    
    15,000
    
    
    
    
    
    
    
    93,055
    
    
    
    94,200U.S. Dollar Loans
    
    
    6.4
    %
    
    
    285
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,427
    
    
    
    
    
    
    
    1,712
    
    
    
    1,729Singapore Dollar
Loans
    
    
    4.7
    %
    
    
    159
    
    
    
    
    
    
    
    
    
    
    
    315
    
    
    
    
    
    
    
    
    
    
    
    474
    
    
    
    473Long term debt, including current
portion Total
    
    
    
    
    
    
    75,662
    
    
    
    29,018
    
    
    
    180,864
    
    
    
    174,781
    
    
    
    16,427
    
    
    
    
    
    
    
    476,752
    
    
    
    481,832
 Expected Maturity and Weighted Average Interest Rate (per annum)
    
    
    Fair(Year Ended March 31)
    
    
    value2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    Thereafter
    
    
    Total
    
    
    3/31/08(Millions of yen)INTEREST RATE SWAP AGREEMENTSFixed to Floating
(Japanese Yen)Notional Amount
    
    
    
    
    
    
    
    
    
    
    70,000
    
    
    
    165,800
    
    
    
    
    
    
    
    
    
    
    
    235,800
    
    
    
    3,511Fixed receive rate
    
    
    
    
    
    
    
    
    
    
    1.4
    %
    
    
    1.6
    %
    
    
    
    
    
    
    
    
    
    
    1.5
    %Floating pay rate
    
    
    
    
    
    
    
    
    
    
    1.1
    %
    
    
    1.2
    %
    
    
    
    
    
    
    
    
    
    
    1.2
    %
 Foreign exchange risk
    125




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Investment price risk
  March 31, 2008
    
    
    March 31, 2008Carrying
    
    
    Fair
    
    
    CarryingAmount
    
    
    Value
    
    
    Amount
    
    
    Fair Value(Millions of yen)
    
    
    (Thousands of U.S. dollars)Equity securities available-for-sale
    
    
    158,103
    
    
    
    158,103
    
    
    
    1,583,405
    
    
    
    1,583,405Debt securities available-for-sale:Due within 1 year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Due after 1 year through 5 years
    
    
    5
    
    
    
    5
    
    
    
    50
    
    
    
    50Due after 5 years through 10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Due after 10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    158,108
    
    
    
    158,108
    
    
    
    1,583,455
    
    
    
    1,583,455
 Concentrations of credit risk
  
 Item 12. Description of Securities Other Than Equity Securities
   126




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PART II
 
 Item 13. Defaults, Dividend Arrearages and Delinquencies
  
 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds
  
 Item 15. Controls and Procedures
 Disclosure Controls and Procedures
  Internal Control over Financial Reporting
   
 Item 16A. Audit Committee Financial Expert
  
 Item 16B. Code of Ethics
   127




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##### Table of Contents



Item 16C. Principal Accountant Fees and Services
 Fees Paid to the Independent Auditor
   Year ended March 31,2007
    
    
    2008(in millions)Audit fees(1)
    
    ¥
    831
    
    
    ¥
    838Tax fees(2)
    
    
    52
    
    
    
    48All other fees(3)
    
    
    0
    
    
    
    0Total
    
    ¥
    883
    
    
    ¥
    886
 
 (1)
    
    These are fees for professional services performed by KPMG AZSA & Co. and its affiliates for
the audit of the Company and its subsidiaries annual financial statements and services that
are normally provided in connection with statutory and regulatory filings.(2)
    
    These are fees for professional services performed by KPMG AZSA & Co. and its affiliates tax
division except those related to the audit and includes tax returns and tax consultations.(3)
    
    These are fees for all other services received from KPMG AZSA & Co. and its affiliates
including consultations relating to company secretarial services to our foreign subsidiaries. Pre-Approval of Services Provided by KPMG AZSA & Co. and its affiliates
    128




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##### Table of Contents



Item 16D. Exemptions from the Listing Standards for Audit Committees
  
    
    The board of corporate auditors must be established, and its members must be
selected, pursuant to Japanese law expressly requiring such a board for Japanese
companies that elect to have a corporate governance system with corporate auditors.
    
    Japanese law must and does require the board of corporate auditors to be separate
from the board of directors.
    
    None of the members of the board of corporate auditors may be elected by
management, and none of the listed companys executive officers may be a member of the
board of corporate auditors.
    
    Japanese law must and does set forth standards for the independence of the members
of the board of corporate auditors from the listed company or its management.
    
    The board of corporate auditors, in accordance with Japanese law or the listed
companys governing documents, must be responsible, to the extent permitted by
Japanese law, for the appointment, retention and oversight of the work of any
registered public accounting firm engaged (including, to the extent permitted by
Japanese law, the resolution of disagreements between management and the auditor
regarding financial reporting) for the purpose of preparing or issuing an audit report
or performing other audit, review or attest services for the listed company, including
its principal accountant which audits its consolidated financial statements included
in its annual reports on Form 20-F.
    
    To the extent permitted by Japanese law:
 
    
    the board of corporate auditors must establish procedures for (i) the receipt,
retention and treatment of complaints received by the listed company regarding
accounting, internal accounting controls, or auditing matters, and (ii) the
confidential, anonymous submission by the listed companys employees of concerns
regarding questionable accounting or auditing matters;
    
    the board of corporate auditors must have the authority to engage independent
counsel and other advisers, as it determines necessary to carry out its duties;
and
    
    the listed company must provide for appropriate funding, as determined by its
board of corporate auditors, for payment of (i) compensation to any registered
public accounting firm engaged for the purpose of preparing or issuing an audit
report or performing other audit, review or attest services for the listed
company, (ii) compensation to any advisers employed by the board of corporate
auditors, and (iii) ordinary administrative expenses of the board of corporate
auditors that are necessary or appropriate in carrying out its duties.
   129




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Item 16E. Purchases of Equity Securities by Issuer and Affiliated Purchasers
 ISSUER PURCHASES OF EQUITY SECURITIES
 (c) Total Number ofShares Purchased as
    
    
    (d) Maximum Number(a)Total Number
    
    
    (b) Average
    
    
    Part of Publicly
    
    
    of Shares that May Yet Beof Shares
    
    
    Price Paid per
    
    
    Announced Plans or
    
    
    Purchased Under the PlansPeriod
    
    Purchased(*)
    
    
    Share
    
    
    Programs
    
    
    or Programs(**)April, 2007
    
    
    0
    
    
    
    
    
    
    
    0
    
    
    
    802,734(from April 1 to
April 30)May, 2007
    
    
    265,843.40
    
    
    
    210,106.3
    
    
    
    265,843
    
    
    
    536,891(from May 1 to
May 31)June, 2007
    
    
    84,536
    
    
    
    202,779.1
    
    
    
    84,536
    
    
    
    1,000,000(from June 1 to
June 30)July, 2007
    
    
    0
    
    
    
    
    
    
    
    0
    
    
    
    1,000,000(from July 1 to
July 31)August, 2007
    
    
    178,608.96
    
    
    
    167,959.5
    
    
    
    178,608
    
    
    
    821,392(from August 1 to
August 31)September, 2007
    
    
    0.50
    
    
    
    
    
    
    
    0
    
    
    
    821,392(from September 1 to
September 30)October, 2007
    
    
    30,505.92
    
    
    
    163,550.4
    
    
    
    30,505
    
    
    
    790,887(from October 1 to
October 31)November, 2007
    
    
    87,166.49
    
    
    
    172,237.6
    
    
    
    87,148
    
    
    
    703,739(from November 1 to
November 30)December, 2007
    
    
    17.02
    
    
    
    
    
    
    
    0
    
    
    
    703,739(from December 1 to
December 31)January, 2008
    
    
    2.81
    
    
    
    
    
    
    
    0
    
    
    
    703,739(from January 1 to
January 31)February, 2008
    
    
    8.40
    
    
    
    
    
    
    
    0
    
    
    
    703,739(from February 1 to
February 29)March, 2008
    
    
    319,027.55
    
    
    
    156,720.5
    
    
    
    319,026
    
    
    
    384,713(from March 1 to
March 31)Total
    
    
    965,717.05
    
    
    
    179,144.3
    
    
    
    965,666
    
    
    
    384,713
 (*)
    
    Shares purchased include fractional shares purchased from time to time.(**)
    
    The numbers as of April and May, 2007, described in column (d) are based on the aggregate
number of 1,400,000 shares authorized at the general shareholders meeting held on June 20, 2006.
Likewise, the numbers for June 2007 or later in column (d) are based on the aggregate number of
1,000,000 shares authorized at the general shareholders meeting held on June 19, 2007.  130




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Item 17. Financial Statements
  
 Item 18. Financial Statements
   131




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##### Table of Contents



Item 19. Exhibits
 ExhibitNumber
    
    Description1.1
    
    
    
    
    Articles of Incorporation of the registrant (English translation)1.2
    
    
    
    
    Share Handling Regulations of the registrant (English translation)*1.3
    
    
    
    
    Regulations of the Board of Directors of the registrant (English
translation)1.4
    
    
    
    
    Regulations of the Board of Corporate Auditors of the registrant (English
translation)**2.1
    
    
    
    
    Specimen common stock certificates of the registrant***2.2
    
    
    
    
    Form of Deposit Agreement among the registrant, The Bank of New York as
Depositary and all owners and holders from time to time of American
Depositary Receipts, including the form of American Depositary Receipt
(incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form F-6 (File No. 333-9694) filed on May 15, 2002)8.1
    
    
    
    
    List of Subsidiaries11.1
    
    
    
    
    Code of Ethics*12.1
    
    
    
    
    Certification of Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 200212.2
    
    
    
    
    Certification of Chief Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 200213.1
    
    
    
    
    Certification of Chief Executive Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 135013.2
    
    
    
    
    Certification of Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 135015.1
    
    
    
    
    Managements Report on Internal Control Over Financial Reporting15.2
    
    
    
    
    Report of Independent Registered Public Accounting Firm
 
 *
    
    Previously filed with the Securities and Exchange Commission on June 27, 2006 and herein
incorporated by reference.**
    
    Previously filed with the Securities and Exchange Commission on June 25, 2007 and herein
incorporated by reference.***
    
    Previously filed with the Securities and Exchange Commission on January 25, 2002 and herein
incorporated by reference.   132




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE
 PageReport of independent registered public accounting firm
    
    
    F-2Consolidated balance sheets at March 31, 2007 and 2008
    
    
    F-3Consolidated statements of income and comprehensive income for the years ended
March 31, 2006, 2007 and 2008
    
    
    F-5Consolidated statements of shareholders equity for the years ended March 31, 2006, 2007 and 2008
    
    
    F-6Consolidated statements of cash flows for the years ended March 31, 2006, 2007 and 2008
    
    
    F-8Notes to consolidated financial statements
    
    
    F-9Financial statement schedule for the years ended March 31, 2006, 2007 and 2008:Schedule IIValuation and qualifying accounts
    
    
    F-52
  F-1




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Report of Independent Registered Public Accounting Firm
 
  
 
 
 
  
  F-2




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS
 MARCH 31, 2007 and 2008
 Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008ASSETSCurrent assets:Cash and cash equivalents
    
    ¥
    343,062
    
    
    ¥
    646,905
    
    
    $
    6,478,768Short-term investmentsThird parties
    
    
    100,543
    
    
    
    2,208
    
    
    
    22,113Related parties
    
    
    50,000
    
    
    
    50,000
    
    
    
    500,751Accounts receivableThird parties
    
    
    844,305
    
    
    
    671,417
    
    
    
    6,724,257Related parties
    
    
    28,018
    
    
    
    15,256
    
    
    
    152,789Sub-total
    
    
    872,323
    
    
    
    686,673
    
    
    
    6,877,046Less: Allowance for doubtful accounts
    
    
    (13,178
    )
    
    
    (15,037
    )
    
    
    (150,596
    )Total accounts receivable, net
    
    
    859,145
    
    
    
    671,636
    
    
    
    6,726,450Inventories
    
    
    145,892
    
    
    
    146,584
    
    
    
    1,468,042Deferred tax assets
    
    
    94,868
    
    
    
    108,037
    
    
    
    1,081,993Prepaid expenses and other current assetsThird parties
    
    
    132,959
    
    
    
    136,395
    
    
    
    1,365,999Related parties
    
    
    5,444
    
    
    
    6,015
    
    
    
    60,240Total current assets
    
    
    1,731,913
    
    
    
    1,767,780
    
    
    
    17,704,356Property, plant and equipment:Wireless telecommunications equipment
    
    
    5,149,132
    
    
    
    5,346,486
    
    
    
    53,545,178Buildings and structures
    
    
    778,638
    
    
    
    797,904
    
    
    
    7,991,027Tools, furniture and fixtures
    
    
    613,945
    
    
    
    536,718
    
    
    
    5,375,243Land
    
    
    199,007
    
    
    
    198,958
    
    
    
    1,992,569Construction in progress
    
    
    114,292
    
    
    
    128,042
    
    
    
    1,282,343Sub-total
    
    
    6,855,014
    
    
    
    7,008,108
    
    
    
    70,186,360Accumulated depreciation and amortization
    
    
    (3,954,361
    )
    
    
    (4,173,501
    )
    
    
    (41,797,707
    )Total property, plant and equipment, net
    
    
    2,900,653
    
    
    
    2,834,607
    
    
    
    28,388,653Non-current investments and other assets:Investments in affiliates
    
    
    176,376
    
    
    
    349,488
    
    
    
    3,500,130Marketable securities and other investments
    
    
    261,456
    
    
    
    187,361
    
    
    
    1,876,425Intangible assets, net
    
    
    551,029
    
    
    
    555,259
    
    
    
    5,560,931Goodwill
    
    
    147,821
    
    
    
    158,889
    
    
    
    1,591,277Other assetsThird parties
    
    
    157,656
    
    
    
    222,225
    
    
    
    2,225,588Related parties
    
    
    61,615
    
    
    
    11,822
    
    
    
    118,398Deferred tax assets
    
    
    127,696
    
    
    
    123,403
    
    
    
    1,235,884Total non-current investments and other assets
    
    
    1,483,649
    
    
    
    1,608,447
    
    
    
    16,108,633Total assets
    
    ¥
    6,116,215
    
    
    ¥
    6,210,834
    
    
    $
    62,201,642
   F-3




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS  (Continued)
MARCH 31, 2007 and 2008
 Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008LIABILITIES, MINORITY INTERESTS AND
SHAREHOLDERS EQUITYCurrent liabilities:Current portion of long-term debt
    
    ¥
    131,005
    
    
    ¥
    75,662
    
    
    $
    757,757Short-term borrowings
    
    
    102
    
    
    
    1,712
    
    
    
    17,146Accounts payable, tradeThird parties
    
    
    666,829
    
    
    
    626,992
    
    
    
    6,279,339Related parties
    
    
    94,279
    
    
    
    90,461
    
    
    
    905,969Accrued payroll
    
    
    46,584
    
    
    
    53,538
    
    
    
    536,184Accrued interest
    
    
    809
    
    
    
    710
    
    
    
    7,111Accrued income taxes
    
    
    68,408
    
    
    
    203,645
    
    
    
    2,039,509Other current liabilitiesThird parties
    
    
    152,843
    
    
    
    179,513
    
    
    
    1,797,827Related parties
    
    
    2,066
    
    
    
    2,082
    
    
    
    20,851Total current liabilities
    
    
    1,162,925
    
    
    
    1,234,315
    
    
    
    12,361,693Long-term liabilities:Long-term debt (exclusive of current portion)
    
    
    471,858
    
    
    
    401,090
    
    
    
    4,016,925Liability for employees retirement benefits
    
    
    135,890
    
    
    
    116,888
    
    
    
    1,170,636Other long-term liabilitiesThird parties
    
    
    179,699
    
    
    
    177,002
    
    
    
    1,772,679Related parties
    
    
    3,376
    
    
    
    3,755
    
    
    
    37,606Total long-term liabilities
    
    
    790,823
    
    
    
    698,735
    
    
    
    6,997,846Total liabilities
    
    
    1,953,748
    
    
    
    1,933,050
    
    
    
    19,359,539Minority interests
    
    
    1,164
    
    
    
    1,288
    
    
    
    12,899Shareholders equity:Common stock, without a stated value -Authorized -188,130,000 shares and
188,130,000 shares at March 31, 2007 and
2008, respectivelyIssued - 45,880,000 and 44,870,000
shares at March 31, 2007 and 2008,
respectivelyOutstanding - 43,593,644 and 42,627,927
shares at March 31, 2007 and 2008,
respectively
    
    
    949,680
    
    
    
    949,680
    
    
    
    9,511,067Additional paid-in capital
    
    
    1,135,958
    
    
    
    948,571
    
    
    
    9,499,960Retained earnings
    
    
    2,493,155
    
    
    
    2,793,814
    
    
    
    27,980,110Accumulated other comprehensive income
    
    
    12,874
    
    
    
    410
    
    
    
    4,106Treasury stock, 2,286,356 and 2,242,073
shares at March 31, 2007 and 2008, at cost,
respectively
    
    
    (430,364
    )
    
    
    (415,979
    )
    
    
    (4,166,039
    )Total shareholders equity
    
    
    4,161,303
    
    
    
    4,276,496
    
    
    
    42,829,204Commitments and contingenciesTotal liabilities, minority interests and
shareholders equity
    
    ¥
    6,116,215
    
    
    ¥
    6,210,834
    
    
    $
    62,201,642
   F-4




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 YEARS ENDED MARCH 31, 2006, 2007 and 2008
 Thousands ofMillions of yen
    
    
    U.S. dollars2006
    
    
    2007
    
    
    2008
    
    
    2008Operating revenues:Wireless servicesThird parties
    
    ¥
    4,242,230
    
    
    ¥
    4,259,951
    
    
    ¥
    4,107,844
    
    
    $
    41,140,151Related parties
    
    
    53,626
    
    
    
    54,189
    
    
    
    57,390
    
    
    
    574,762Equipment salesThird parties
    
    
    462,490
    
    
    
    465,924
    
    
    
    538,195
    
    
    
    5,390,035Related parties
    
    
    7,526
    
    
    
    8,029
    
    
    
    8,398
    
    
    
    84,1064,765,872
    
    
    
    4,788,093
    
    
    
    4,711,827
    
    
    
    47,189,054Operating expenses:Cost of services (exclusive of items shown separately below)Third parties
    
    
    462,852
    
    
    
    498,852
    
    
    
    561,763
    
    
    
    5,626,069Related parties
    
    
    283,247
    
    
    
    268,108
    
    
    
    249,370
    
    
    
    2,497,446Cost of equipment sold (exclusive of items shown separately below)
    
    
    1,113,464
    
    
    
    1,218,694
    
    
    
    1,150,261
    
    
    
    11,519,890Depreciation and amortization
    
    
    738,137
    
    
    
    745,338
    
    
    
    776,425
    
    
    
    7,775,914Selling, general and administrativeThird parties
    
    
    1,179,252
    
    
    
    1,121,374
    
    
    
    1,025,812
    
    
    
    10,273,530Related parties
    
    
    156,281
    
    
    
    162,203
    
    
    
    139,884
    
    
    
    1,400,9423,933,233
    
    
    
    4,014,569
    
    
    
    3,903,515
    
    
    
    39,093,791Operating income
    
    
    832,639
    
    
    
    773,524
    
    
    
    808,312
    
    
    
    8,095,263Other income (expense):Interest expense
    
    
    (8,420
    )
    
    
    (5,749
    )
    
    
    (4,556
    )
    
    
    (45,629
    )Interest income
    
    
    4,659
    
    
    
    1,459
    
    
    
    2,487
    
    
    
    24,907Gain on sale of affiliate shares
    
    
    61,962
    
    
    
    
    
    
    
    333
    
    
    
    3,335Gain (loss) on sale of other investments
    
    
    40,088
    
    
    
    (113
    )
    
    
    (2
    )
    
    
    (20
    )Other, net
    
    
    21,375
    
    
    
    3,822
    
    
    
    (5,886
    )
    
    
    (58,948
    )119,664
    
    
    
    (581
    )
    
    
    (7,624
    )
    
    
    (76,355
    )Income before income taxes, equity in net income (losses)
of affiliates and minority interests
    
    
    952,303
    
    
    
    772,943
    
    
    
    800,688
    
    
    
    8,018,908Income taxes:Current
    
    
    293,707
    
    
    
    237,734
    
    
    
    334,462
    
    
    
    3,349,644Deferred
    
    
    47,675
    
    
    
    75,945
    
    
    
    (11,507
    )
    
    
    (115,243
    )341,382
    
    
    
    313,679
    
    
    
    322,955
    
    
    
    3,234,401Income before equity in net income (losses) of affiliates and minority interests
    
    
    610,921
    
    
    
    459,264
    
    
    
    477,733
    
    
    
    4,784,507Equity in net income (losses) of affiliates, net of applicable taxes
    
    
    (364
    )
    
    
    (1,941
    )
    
    
    13,553
    
    
    
    135,733Minority interests
    
    
    (76
    )
    
    
    (45
    )
    
    
    (84
    )
    
    
    (841
    )Net income
    
    ¥
    610,481
    
    
    ¥
    457,278
    
    
    ¥
    491,202
    
    
    $
    4,919,399Other comprehensive income (loss):Unrealized holding gains (losses) on available-for-sale securities, net of
applicable taxes
    
    
    10,000
    
    
    
    (15,364
    )
    
    
    (16,762
    )
    
    
    (167,872
    )Less: Reclassification of realized gains and losses, net of applicable
taxes included in net income
    
    
    (2,338
    )
    
    
    (399
    )
    
    
    431
    
    
    
    4,317Net revaluation of financial instruments, net of applicable taxes
    
    
    369
    
    
    
    832
    
    
    
    (525
    )
    
    
    (5,258
    )Less: Reclassification of realized gains and losses, net of applicable
taxes included in net income
    
    
    (248
    )
    
    
    (798
    )
    
    
    658
    
    
    
    6,590Foreign currency translation adjustment, net of applicable taxes
    
    
    5,433
    
    
    
    1,103
    
    
    
    7,299
    
    
    
    73,100Less: Reclassification of realized gains and losses, net of applicable
taxes included in net income
    
    
    (48,030
    )
    
    
    
    
    
    
    (127
    )
    
    
    (1,272
    )Pension liability adjustment, net of applicable taxes:Actuarial gains (losses) arising during period, net
    
    
    
    
    
    
    
    
    
    
    (4,909
    )
    
    
    (49,164
    )Less: Amortization of prior service cost
    
    
    
    
    
    
    
    
    
    
    (1,338
    )
    
    
    (13,400
    )Less: Amortization of actuarial gains and losses
    
    
    
    
    
    
    
    
    
    
    502
    
    
    
    5,027Less: Amortization of transition obligation
    
    
    
    
    
    
    
    
    
    
    75
    
    
    
    751Less: Reclassification of actuarial gains and losses due to transfer of
the substitutional portion to the government
    
    
    
    
    
    
    
    
    
    
    2,232
    
    
    
    22,354Minimum pension liability adjustment, net of applicable taxes
    
    
    3,986
    
    
    
    5,562
    
    
    
    
    
    
    
    Comprehensive income
    
    ¥
    579,653
    
    
    ¥
    448,214
    
    
    ¥
    478,738
    
    
    $
    4,794,572Per share data:Weighted average common shares outstanding  Basic and
Diluted (shares)
    
    
    45,250,031
    
    
    
    43,985,082
    
    
    
    43,120,586
    
    
    
    43,120,586Basic and diluted earnings per share (Yen and U.S. dollars)
    
    ¥
    13,491.28
    
    
    ¥
    10,396.21
    
    
    ¥
    11,391.36
    
    
    $
    114.08
   F-5




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
 YEARS ENDED MARCH 31, 2006, 2007 and 2008
 Number of Shares
    
    Millions of yenAccumulatedIssued
    
    
    
    
    
    
    
    
    
    
    Additional
    
    
    
    
    
    
    other
    
    
    Treasury
    
    
    TotalCommon
    
    
    Treasury
    
    
    Common
    
    
    paid-in
    
    
    Retained
    
    
    comprehensive
    
    
    stock,
    
    
    ShareholdersStock
    
    
    Stock
    
    
    stock
    
    
    capital
    
    
    earnings
    
    
    income
    
    
    at cost
    
    
    EquityBalance at March 31, 2005
    
    
    48,700,000
    
    
    
    2,427,792
    
    
    ¥
    949,680
    
    
    ¥
    1,311,013
    
    
    ¥
    2,100,407
    
    
    ¥
    57,609
    
    
    ¥
    (510,777
    )
    
    ¥
    3,907,932Purchase of treasury stock
    
    
    
    
    
    
    1,797,981
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (300,078
    )
    
    
    (300,078
    )Retirement of treasury stock
    
    
    (1,890,000
    )
    
    
    (1,890,000
    )
    
    
    
    
    
    
    
    
    
    
    (362,659
    )
    
    
    
    
    
    
    362,659
    
    
    
    Cash dividends declared and paid
(¥3,000 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (135,490
    )
    
    
    
    
    
    
    
    
    
    
    (135,490
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    610,481
    
    
    
    
    
    
    
    
    
    
    
    610,481Unrealized holding gains on
available-for-sale securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,662
    
    
    
    
    
    
    
    7,662Net revaluation of financial instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    121
    
    
    
    
    
    
    
    121Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (42,597
    )
    
    
    
    
    
    
    (42,597
    )Minimum pension liability adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,986
    
    
    
    
    
    
    
    3,986Balance at March 31, 2006
    
    
    46,810,000
    
    
    
    2,335,773
    
    
    ¥
    949,680
    
    
    ¥
    1,311,013
    
    
    ¥
    2,212,739
    
    
    ¥
    26,781
    
    
    ¥
    (448,196
    )
    
    ¥
    4,052,017Purchase of treasury stock
    
    
    
    
    
    
    880,583
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (157,223
    )
    
    
    (157,223
    )Retirement of treasury stock
    
    
    (930,000
    )
    
    
    (930,000
    )
    
    
    
    
    
    
    (175,055
    )
    
    
    
    
    
    
    
    
    
    
    175,055
    
    
    
    Cash dividends declared and paid
(¥4,000 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (176,862
    )
    
    
    
    
    
    
    
    
    
    
    (176,862
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    457,278
    
    
    
    
    
    
    
    
    
    
    
    457,278Unrealized holding losses on
available-for-sale securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,763
    )
    
    
    
    
    
    
    (15,763
    )Net revaluation of financial instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34
    
    
    
    
    
    
    
    34Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,103
    
    
    
    
    
    
    
    1,103Minimum pension liability adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,562
    
    
    
    
    
    
    
    5,562Adjustment to initially apply SFAS
No. 158
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,843
    )
    
    
    
    
    
    
    (4,843
    )Balance at March 31, 2007
    
    
    45,880,000
    
    
    
    2,286,356
    
    
    ¥
    949,680
    
    
    ¥
    1,135,958
    
    
    ¥
    2,493,155
    
    
    ¥
    12,874
    
    
    ¥
    (430,364
    )
    
    ¥
    4,161,303Purchase of treasury stock
    
    
    
    
    
    
    965,717
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (173,002
    )
    
    
    (173,002
    )Retirement of treasury stock
    
    
    (1,010,000
    )
    
    
    (1,010,000
    )
    
    
    
    
    
    
    (187,387
    )
    
    
    
    
    
    
    
    
    
    
    187,387
    
    
    
    Cash dividends declared and paid
(¥4,400 per share)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (190,543
    )
    
    
    
    
    
    
    
    
    
    
    (190,543
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    491,202
    
    
    
    
    
    
    
    
    
    
    
    491,202Unrealized holding losses on
available-for-sale securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (16,331
    )
    
    
    
    
    
    
    (16,331
    )Net revaluation of financial instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    133
    
    
    
    
    
    
    
    133Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,172
    
    
    
    
    
    
    
    7,172Pension liability adjustment:Actuarial gains (losses) arising
during period, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,909
    )
    
    
    
    
    
    
    (4,909
    )Less: Amortization of prior service
cost
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,338
    )
    
    
    
    
    
    
    (1,338
    )Less: Amortization of actuarial gains
and losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    502
    
    
    
    
    
    
    
    502Less: Amortization of transition
obligation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    75
    
    
    
    
    
    
    
    75Less: Reclassification of actuarial
gains and losses due to transfer of
the substitutional portion to the
government
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,232
    
    
    
    
    
    
    
    2,232Balance at March 31, 2008
    
    
    44,870,000
    
    
    
    2,242,073
    
    
    ¥
    949,680
    
    
    ¥
    948,571
    
    
    ¥
    2,793,814
    
    
    ¥
    410
    
    
    ¥
    (415,979
    )
    
    ¥
    4,276,496
   F-6




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##### Table of Contents



NTT
DOCOMO, INC. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY  (Continued)
YEARS ENDED MARCH 31, 2006, 2007 and 2008
 Thousands of U.S. dollarsAccumulatedAdditional
    
    
    
    
    
    
    other
    
    
    Treasury
    
    
    TotalCommon
    
    
    paid-in
    
    
    Retained
    
    
    comprehensive
    
    
    stock,
    
    
    Shareholdersstock
    
    
    capital
    
    
    earnings
    
    
    income
    
    
    at cost
    
    
    EquityBalance at March 31, 2007
    
    $
    9,511,067
    
    
    $
    11,376,645
    
    
    $
    24,969,003
    
    
    $
    128,933
    
    
    $
    (4,310,105
    )
    
    $
    41,675,543Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,732,619
    )
    
    
    (1,732,619
    )Retirement of treasury stock
    
    
    
    
    
    
    (1,876,685
    )
    
    
    
    
    
    
    
    
    
    
    1,876,685
    
    
    
    Cash dividends declared and paid (¥4,400 per share)
    
    
    
    
    
    
    
    
    
    
    (1,908,292
    )
    
    
    
    
    
    
    
    
    
    
    (1,908,292
    )Net income
    
    
    
    
    
    
    
    
    
    
    4,919,399
    
    
    
    
    
    
    
    
    
    
    
    4,919,399Unrealized holding losses on available-for-sale securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (163,555
    )
    
    
    
    
    
    
    (163,555
    )Net revaluation of financial instruments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,332
    
    
    
    
    
    
    
    1,332Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    71,828
    
    
    
    
    
    
    
    71,828Pension liability adjustment:Actuarial gains (losses) arising during period, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (49,164
    )
    
    
    
    
    
    
    (49,164
    )Less: Amortization of prior service cost
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13,400
    )
    
    
    
    
    
    
    (13,400
    )Less: Amortization of actuarial gains and losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,027
    
    
    
    
    
    
    
    5,027Less: Amortization of transition obligation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    751
    
    
    
    
    
    
    
    751Less: Reclassification of actuarial gains and losses
due to transfer of the substitutional portion to the
government
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,354
    
    
    
    
    
    
    
    22,354Balance at March 31, 2008
    
    $
    9,511,067
    
    
    $
    9,499,960
    
    
    $
    27,980,110
    
    
    $
    4,106
    
    
    $
    (4,166,039
    )
    
    $
    42,829,204
   F-7




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 YEARS ENDED MARCH 31, 2006, 2007 and 2008
 Thousands ofMillions of yen
    
    
    U.S. dollars2006
    
    
    2007
    
    
    2008
    
    
    2008Cash flows from operating activities:Net income
    
    ¥
    610,481
    
    
    ¥
    457,278
    
    
    ¥
    491,202
    
    
    $
    4,919,399Adjustments to reconcile net income to net cash provided by operating
activities -Depreciation and amortization
    
    
    738,137
    
    
    
    745,338
    
    
    
    776,425
    
    
    
    7,775,914Deferred taxes
    
    
    49,101
    
    
    
    74,987
    
    
    
    (2,471
    )
    
    
    (24,747
    )Loss on sale or disposal of property, plant and equipment
    
    
    36,000
    
    
    
    55,708
    
    
    
    54,359
    
    
    
    544,406Gain on sale of affiliate shares
    
    
    (61,962
    )
    
    
    
    
    
    
    (333
    )
    
    
    (3,335
    )(Gain) loss on sale of other investments
    
    
    (40,088
    )
    
    
    113
    
    
    
    2
    
    
    
    20Expense associated with sale of other investments
    
    
    14,062
    
    
    
    
    
    
    
    
    
    
    
    Equity in net (income) losses of affiliates
    
    
    (1,289
    )
    
    
    2,791
    
    
    
    (22,810
    )
    
    
    (228,443
    )Dividends from affiliates
    
    
    1,034
    
    
    
    1,258
    
    
    
    15,349
    
    
    
    153,721Minority interests
    
    
    76
    
    
    
    45
    
    
    
    84
    
    
    
    841Changes in assets and liabilities:Decrease (increase) in accounts receivable
    
    
    21,345
    
    
    
    (262,032
    )
    
    
    187,434
    
    
    
    1,877,156(Decrease) increase in allowance for doubtful accounts
    
    
    (3,623
    )
    
    
    (1,600
    )
    
    
    1,803
    
    
    
    18,057(Increase) decrease in inventories
    
    
    (73,094
    )
    
    
    83,716
    
    
    
    (10
    )
    
    
    (100
    )Decrease (increase) in income taxes receivable
    
    
    92,869
    
    
    
    (20,261
    )
    
    
    20,261
    
    
    
    202,914Decrease (increase) in prepaid expenses and other current assets
    
    
    16,323
    
    
    
    (18,993
    )
    
    
    (16,085
    )
    
    
    (161,091
    )Increase (decrease) in accounts payable, trade
    
    
    45,108
    
    
    
    (42,013
    )
    
    
    (50,477
    )
    
    
    (505,528
    )Increase (decrease) in accrued income taxes
    
    
    111,141
    
    
    
    (100,197
    )
    
    
    134,912
    
    
    
    1,351,147Increase in other current liabilities
    
    
    17,641
    
    
    
    534
    
    
    
    6,206
    
    
    
    62,153(Decrease) increase in liability for employees retirement benefits
    
    
    (3,378
    )
    
    
    379
    
    
    
    (19,002
    )
    
    
    (190,306
    )Increase (decrease) in other long-term liabilities
    
    
    24,725
    
    
    
    (26,241
    )
    
    
    8,780
    
    
    
    87,932Other, net
    
    
    16,332
    
    
    
    29,788
    
    
    
    (25,489
    )
    
    
    (255,273
    )Net cash provided by operating activities
    
    
    1,610,941
    
    
    
    980,598
    
    
    
    1,560,140
    
    
    
    15,624,837Cash flows from investing activities:Purchases of property, plant and equipment
    
    
    (638,590
    )
    
    
    (735,650
    )
    
    
    (548,517
    )
    
    
    (5,493,410
    )Purchases of intangible and other assets
    
    
    (195,277
    )
    
    
    (213,075
    )
    
    
    (216,816
    )
    
    
    (2,171,417
    )Purchases of non-current investments
    
    
    (292,556
    )
    
    
    (41,876
    )
    
    
    (124,312
    )
    
    
    (1,244,987
    )Proceeds from sale and redemption of non-current investments
    
    
    25,142
    
    
    
    50,594
    
    
    
    101,341
    
    
    
    1,014,932Acquisitions of subsidiaries, net of cash acquired
    
    
    
    
    
    
    (8,392
    )
    
    
    (14,797
    )
    
    
    (148,192
    )Purchases of short-term investments
    
    
    (252,474
    )
    
    
    (3,557
    )
    
    
    (6,562
    )
    
    
    (65,719
    )Redemption of short-term investments
    
    
    501,433
    
    
    
    4,267
    
    
    
    5,443
    
    
    
    54,512Long-term bailment for consumption to a related party
    
    
    (100,000
    )
    
    
    
    
    
    
    
    
    
    
    Proceeds from redemption of long-term bailment for consumption to a
related party
    
    
    
    
    
    
    
    
    
    
    50,000
    
    
    
    500,751Other, net
    
    
    1,245
    
    
    
    38
    
    
    
    (4,629
    )
    
    
    (46,360
    )Net cash used in investing activities
    
    
    (951,077
    )
    
    
    (947,651
    )
    
    
    (758,849
    )
    
    
    (7,599,890
    )Cash flows from financing activities:Repayment of long-term debt
    
    
    (150,304
    )
    
    
    (193,723
    )
    
    
    (131,005
    )
    
    
    (1,312,018
    )Proceeds from short-term borrowings
    
    
    27,002
    
    
    
    18,400
    
    
    
    15,249
    
    
    
    152,719Repayment of short-term borrowings
    
    
    (27,010
    )
    
    
    (18,450
    )
    
    
    (15,351
    )
    
    
    (153,741
    )Principal payments under capital lease obligations
    
    
    (4,740
    )
    
    
    (3,621
    )
    
    
    (2,821
    )
    
    
    (28,252
    )Payments to acquire treasury stock
    
    
    (300,078
    )
    
    
    (157,223
    )
    
    
    (173,002
    )
    
    
    (1,732,619
    )Dividends paid
    
    
    (135,490
    )
    
    
    (176,862
    )
    
    
    (190,543
    )
    
    
    (1,908,292
    )Other, net
    
    
    (1
    )
    
    
    (2
    )
    
    
    (2
    )
    
    
    (20
    )Net cash used in financing activities
    
    
    (590,621
    )
    
    
    (531,481
    )
    
    
    (497,475
    )
    
    
    (4,982,223
    )Effect of exchange rate changes on cash and cash equivalents
    
    
    1,529
    
    
    
    872
    
    
    
    27
    
    
    
    270Net increase (decrease) in cash and cash equivalents
    
    
    70,772
    
    
    
    (497,662
    )
    
    
    303,843
    
    
    
    3,042,994Cash and cash equivalents at beginning of year
    
    
    769,952
    
    
    
    840,724
    
    
    
    343,062
    
    
    
    3,435,774Cash and cash equivalents at end of year
    
    ¥
    840,724
    
    
    ¥
    343,062
    
    
    ¥
    646,905
    
    
    $
    6,478,768Supplemental disclosures of cash flow information:Cash received during the year for:Income taxes
    
    ¥
    93,103
    
    
    ¥
    925
    
    
    ¥
    20,346
    
    
    $
    203,766Cash paid during the year for:Interest, net of amount capitalized
    
    
    8,666
    
    
    
    6,203
    
    
    
    4,656
    
    
    
    46,630Income taxes
    
    
    182,914
    
    
    
    359,861
    
    
    
    200,079
    
    
    
    2,003,796Non-cash investing and financing activities:Assets acquired through capital lease obligations
    
    
    5,038
    
    
    
    3,530
    
    
    
    2,579
    
    
    
    25,829Retirement of treasury stock
    
    
    362,659
    
    
    
    175,055
    
    
    
    187,387
    
    
    
    1,876,685
   F-8




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1. Nature of operations:
    2. Summary of significant accounting and reporting policies:
   (1) Adoption of a new accounting standard   Accounting for Uncertainty in Income Taxes
  (2) Significant accounting policies   Principles of consolidation
    F-9




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 Use of estimates
  Cash and cash equivalents
  Short-term investments
  Allowance for doubtful accounts
  Inventories
  Property, plant and equipment
   Major wireless telecommunications equipment
    
    
    8 to 16 yearsSteel towers and poles for antenna equipment
    
    
    30 to 40 yearsReinforced concrete buildings
    
    
    38 to 50 yearsTools, furniture and fixtures
    
    
    4 to 15 years
  F-10




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
    Capitalized interest
  Investments in affiliates
  Marketable securities and other investments
   F-11




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
     Goodwill and other intangible assets
      F-12




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS   (Continued)
   Impairment of long-lived assets
 Hedging activities
          F-13




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 Employees retirement benefit plans
   Revenue recognition
       F-14




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
   Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Current deferred revenue
    
    ¥
    105,506
    
    
    ¥
    106,348
    
    
    $
    1,065,078Long-term deferred revenue
    
    
    76,499
    
    
    
    76,654
    
    
    
    767,692Current deferred charges
    
    
    35,142
    
    
    
    27,031
    
    
    
    270,716Long-term deferred charges
    
    
    76,499
    
    
    
    76,654
    
    
    
    767,692
  Selling, general and administrative expenses
  Income taxes
  Earnings per share
  Foreign currency translation
     F-15




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 (3) Recent accounting pronouncements
      (4) Reclassifications
   F-16




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 3. Convenient translations:
  4. Cash and cash equivalents:
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Cash
    
    ¥
    173,067
    
    
    ¥
    306,905
    
    
    $
    3,073,661Certificates of deposit
    
    
    150,000
    
    
    
    280,000
    
    
    
    2,804,206Bailment for consumption
    
    
    
    
    
    
    50,000
    
    
    
    500,751Other
    
    
    19,995
    
    
    
    10,000
    
    
    
    100,150Total
    
    ¥
    343,062
    
    
    ¥
    646,905
    
    
    $
    6,478,768
  5. Inventories:
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Telecommunications equipment to be sold
    
    ¥
    144,292
    
    
    ¥
    145,086
    
    
    $
    1,453,039Materials and supplies
    
    
    306
    
    
    
    306
    
    
    
    3,065Other
    
    
    1,294
    
    
    
    1,192
    
    
    
    11,938Total
    
    ¥
    145,892
    
    
    ¥
    146,584
    
    
    $
    1,468,042
  F-17




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 6. Investments in affiliates:
 Hutchison 3G UK Holdings Limited
   Sumitomo Mitsui Card Co., Ltd.
  Philippine Long Distance Telephone Company
    F-18




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 Impairment
      F-19




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 7. Marketable securities and other investments:
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Marketable securities:Available-for-sale
    
    ¥
    268,528
    
    
    ¥
    158,108
    
    
    $
    1,583,455Other investments
    
    
    92,853
    
    
    
    29,253
    
    
    
    292,970Sub-total
    
    ¥
    361,381
    
    
    ¥
    187,361
    
    
    $
    1,876,425Less: Available-for-sale securities classified as
Short-term investments
    
    ¥
    (99,925
    )
    
    
    
    
    
    
    Marketable securities and other investments (Non-current)
    
    ¥
    261,456
    
    
    ¥
    187,361
    
    
    $
    1,876,425
  Millions of yen
    
    
    Millions of yen
    
    
    Thousands of U.S. dollars2007
    
    
    2008
    
    
    2008Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fairamount
    
    
    value
    
    
    amount
    
    
    value
    
    
    amount
    
    
    valueDue within 1 year
    
    ¥
    99,925
    
    
    ¥
    99,925
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Due after 1 year through 5 years
    
    
    5
    
    
    
    5
    
    
    ¥
    5
    
    
    ¥
    5
    
    
    $
    50
    
    
    $
    50Due after 5 years through 10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Due after 10 years
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    ¥
    99,930
    
    
    ¥
    99,930
    
    
    ¥
    5
    
    
    ¥
    5
    
    
    $
    50
    
    
    $
    50
  Millions of yen2007Cost / Amortized
    
    
    Gross unrealized
    
    
    Gross unrealizedcost
    
    
    holding gains
    
    
    holding losses
    
    
    Fair valueAvailable-for-sale:Equity securities
    
    ¥
    147,998
    
    
    ¥
    21,585
    
    
    ¥
    985
    
    
    ¥
    168,598Debt securities
    
    
    100,076
    
    
    
    0
    
    
    
    146
    
    
    
    99,930
 Millions of yen2008Cost / Amortized
    
    
    Gross unrealized
    
    
    Gross unrealizedcost
    
    
    holding gains
    
    
    holding losses
    
    
    Fair valueAvailable-for-sale:Equity securities
    
    ¥
    162,504
    
    
    ¥
    17,403
    
    
    ¥
    21,804
    
    
    ¥
    158,103Debt securities
    
    
    5
    
    
    
    0
    
    
    
    
    
    
    
    5
  F-20




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 Thousands of U.S. dollars2008Cost / Amortized
    
    
    Gross unrealized
    
    
    Gross unrealizedcost
    
    
    holding gains
    
    
    holding losses
    
    
    Fair valueAvailable-for-sale:Equity securities
    
    $
    1,627,481
    
    
    $
    174,292
    
    
    $
    218,368
    
    
    $
    1,583,405Debt securities
    
    
    50
    
    
    
    0
    
    
    
    
    
    
    
    50
  Thousands ofMillions of yen
    
    
    U.S. dollars2006
    
    
    2007
    
    
    2008
    
    
    2008Proceeds
    
    ¥
    14,902
    
    
    ¥
    448
    
    
    ¥
    896
    
    
    $
    8,973Gross realized gains
    
    
    40,454
    
    
    
    314
    
    
    
    748
    
    
    
    7,491Gross realized losses
    
    
    
    
    
    
    (118
    )
    
    
    (2
    )
    
    
    (20
    )
    Millions of yen2007Less than
    
    
    12 months12 months
    
    
    or longer
    
    
    TotalGross unrealized
    
    
    
    
    
    
    Gross unrealized
    
    
    
    
    
    
    Gross unrealizedFair value
    
    
    holding losses
    
    
    Fair value
    
    
    holding losses
    
    
    Fair value
    
    
    holding lossesAvailable-for-sale:Equity securities
    
    ¥
    4,503
    
    
    ¥
    481
    
    
    ¥
    1,543
    
    
    ¥
    504
    
    
    ¥
    6,046
    
    
    ¥
    985Debt securities
    
    
    
    
    
    
    
    
    
    
    99,925
    
    
    
    146
    
    
    
    99,925
    
    
    
    146Cost method investments
    
    
    345
    
    
    
    261
    
    
    
    32
    
    
    
    105
    
    
    
    377
    
    
    
    366
  F-21




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 Millions of yen2008Less than
    
    
    12 months12 months
    
    
    or longer
    
    
    TotalGross unrealized
    
    
    
    
    
    
    Gross unrealized
    
    
    
    
    
    
    Gross unrealizedFair value
    
    
    holding losses
    
    
    Fair value
    
    
    holding losses
    
    
    Fair value
    
    
    holding lossesAvailable-for-sale:Equity securities
    
    ¥
    97,739
    
    
    ¥
    20,122
    
    
    ¥
    2,783
    
    
    ¥
    1,682
    
    
    ¥
    100,522
    
    
    ¥
    21,804Debt securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cost method investments
    
    
    7
    
    
    
    20
    
    
    
    184
    
    
    
    162
    
    
    
    191
    
    
    
    182
 Thousands of U.S. dollars2008Less than
    
    
    12 months12 months
    
    
    or longer
    
    
    TotalGross unrealized
    
    
    
    
    
    
    Gross unrealized
    
    
    
    
    
    
    Gross unrealizedFair value
    
    
    holding losses
    
    
    Fair value
    
    
    holding losses
    
    
    Fair value
    
    
    holding lossesAvailable-for-sale:Equity securities
    
    $
    978,858
    
    
    $
    201,523
    
    
    $
    27,872
    
    
    $
    16,845
    
    
    $
    1,006,730
    
    
    $
    218,368Debt securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cost method investments
    
    
    70
    
    
    
    201
    
    
    
    1,843
    
    
    
    1,622
    
    
    
    1,913
    
    
    
    1,823
      Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Restricted stock
    
    ¥
    68,658
    
    
    
    
    
    
    
    
   F-22




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Aggregate market
price of the
equivalent amount
of unrestricted
stock
    
    ¥
    96,680
    
    
    
    
    
    
    
    
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Cost method investments included in other investments
    
    ¥
    92,818
    
    
    ¥
    29,209
    
    
    $
    292,529Including: Investments whose fair values were
not evaluated for impairment
    
    
    86,119
    
    
    
    26,383
    
    
    
    264,226
   8. Goodwill and other intangible assets:
 Goodwill
   Millions of yen2007Mobile phone
    
    
    Miscellaneousbusiness
    
    
    businesses
    
    
    ConsolidatedBalance at beginning of year
    
    ¥
    133,505
    
    
    ¥
    7,589
    
    
    ¥
    141,094Goodwill acquired during the year
    
    
    6,660
    
    
    
    
    
    
    
    6,660Foreign currency translation
adjustment
    
    
    
    
    
    
    67
    
    
    
    67Balance at end of year
    
    ¥
    140,165
    
    
    ¥
    7,656
    
    
    ¥
    147,821
 Millions of yen2008Mobile phone
    
    
    Miscellaneousbusiness
    
    
    businesses
    
    
    ConsolidatedBalance at beginning of year
    
    ¥
    140,165
    
    
    ¥
    7,656
    
    
    ¥
    147,821Goodwill acquired during the year
    
    
    
    
    
    
    11,662
    
    
    
    11,662Foreign currency translation
adjustment
    
    
    (275
    )
    
    
    (319
    )
    
    
    (594
    )Balance at end of year
    
    ¥
    139,890
    
    
    ¥
    18,999
    
    
    ¥
    158,889
  F-23




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 Thousands of U.S. dollars2008Mobile phone
    
    
    Miscellaneousbusiness
    
    
    businesses
    
    
    ConsolidatedBalance at beginning of year
    
    $
    1,403,756
    
    
    $
    76,675
    
    
    $
    1,480,431Goodwill acquired during the year
    
    
    
    
    
    
    116,795
    
    
    
    116,795Foreign currency translation
adjustment
    
    
    (2,754
    )
    
    
    (3,195
    )
    
    
    (5,949
    )Balance at end of year
    
    $
    1,401,002
    
    
    $
    190,275
    
    
    $
    1,591,277
  Other intangible assets
  Millions of yen2007Gross carrying
    
    
    Accumulated
    
    
    Net carryingamount
    
    
    amortization
    
    
    amountSoftware for telecommunications network
    
    ¥
    562,107
    
    
    ¥
    346,472
    
    
    ¥
    215,635Internal-use software
    
    
    835,410
    
    
    
    581,356
    
    
    
    254,054Software acquired to be used in the
manufacture of handsets
    
    
    76,304
    
    
    
    24,241
    
    
    
    52,063Customer related assets
    
    
    50,949
    
    
    
    37,504
    
    
    
    13,445Rights to use telecommunications
facilities of wireline operators
    
    
    17,380
    
    
    
    8,828
    
    
    
    8,552Other
    
    
    9,727
    
    
    
    2,447
    
    
    
    7,280Total
    
    ¥
    1,551,877
    
    
    ¥
    1,000,848
    
    
    ¥
    551,029
 Millions of yen2008Gross carrying
    
    
    Accumulated
    
    
    Net carryingamount
    
    
    amortization
    
    
    amountSoftware for telecommunications network
    
    ¥
    623,107
    
    
    ¥
    400,032
    
    
    ¥
    223,075Internal-use software
    
    
    876,792
    
    
    
    617,071
    
    
    
    259,721Software acquired to be used in the
manufacture of handsets
    
    
    89,560
    
    
    
    40,480
    
    
    
    49,080Customer related assets
    
    
    50,949
    
    
    
    45,996
    
    
    
    4,953Rights to use telecommunications
facilities of wireline operators
    
    
    19,151
    
    
    
    9,145
    
    
    
    10,006Other
    
    
    11,300
    
    
    
    2,876
    
    
    
    8,424Total
    
    ¥
    1,670,859
    
    
    ¥
    1,115,600
    
    
    ¥
    555,259
  F-24




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 Thousands of U.S. dollars2008Gross carrying
    
    
    Accumulated
    
    
    Net carryingamount
    
    
    amortization
    
    
    amountSoftware for telecommunications network
    
    $
    6,240,431
    
    
    $
    4,006,330
    
    
    $
    2,234,101Internal-use software
    
    
    8,781,092
    
    
    
    6,179,980
    
    
    
    2,601,112Software acquired to be used in the
manufacture of handsets
    
    
    896,945
    
    
    
    405,408
    
    
    
    491,537Customer related assets
    
    
    510,255
    
    
    
    460,651
    
    
    
    49,604Rights to use telecommunications
facilities of wireline operators
    
    
    191,798
    
    
    
    91,588
    
    
    
    100,210Other
    
    
    113,170
    
    
    
    28,803
    
    
    
    84,367Total
    
    $
    16,733,691
    
    
    $
    11,172,760
    
    
    $
    5,560,931
  9. Other assets:
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Deposits
    
    ¥
    73,504
    
    
    ¥
    74,672
    
    
    $
    747,841Deferred customer activation costs
    
    
    76,499
    
    
    
    76,654
    
    
    
    767,692Long-term bailment for consumption to a related party
    
    
    50,000
    
    
    
    
    
    
    
    Installment receivables for handsets (non-current),
net of allowance for doubtful accounts of ¥1,464
($14,662 thousand) in 2008
    
    
    
    
    
    
    57,572
    
    
    
    576,585Other
    
    
    19,268
    
    
    
    25,149
    
    
    
    251,868Total
    
    ¥
    219,271
    
    
    ¥
    234,047
    
    
    $
    2,343,986
    F-25




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 10. Short-term borrowings and long-term debt:
   Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Short-term borrowings denominated in Japanese Yen:Unsecured short-term loans from financial
institutions
    
    ¥
    102
    
    
    
    
    
    
    
    (Year ended March 31, 2007 -
weighted-average interest of 1.3%
per annum)Short-term borrowings denominated in U.S. dollars:Unsecured short-term loans from financial
institutions
    
    
    
    
    
    ¥
    1,712
    
    
    $
    17,146(Year ended March 31, 2008 -
weighted-average interest of 6.3%
per annum)Total short-term borrowings
    
    ¥
    102
    
    
    ¥
    1,712
    
    
    $
    17,146
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Debt denominated in Japanese Yen:Unsecured corporate bonds
    
    ¥
    477,058
    
    
    ¥
    381,511
    
    
    $
    3,820,841(Year ended March 31, 2007 - interest
rates per annum : 0.7%-1.6%, due : 2008-2012)(Year ended March 31, 2008 - interest
rates per annum : 1.0%-1.6%, due : 2009-2012)Unsecured indebtedness to financial institutions
    
    
    114,000
    
    
    
    93,055
    
    
    
    931,948(Year ended March 31, 2007 - interest
rates per annum : 0.8%-1.5%, due : 2008-2013)(Year ended March 31, 2008 - interest
rates per annum : 0.8%-2.5%, due : 2009-2013)Debt denominated in U.S. dollars:Unsecured corporate bonds
    
    
    11,805
    
    
    
    
    
    
    
    (Year ended March 31, 2007 - interest rate
per annum : 3.5%, due : 2008)Unsecured indebtedness to financial institutions
    
    
    
    
    
    
    1,712
    
    
    
    17,146(Year ended March 31, 2008 - interest rate
per annum : 6.4%, due : 2013)Debt denominated in Singapore dollars:Unsecured indebtedness to financial institutions
    
    
    
    
    
    
    474
    
    
    
    4,747(Year ended March 31, 2008 - interest rate
per annum : 4.7%, due : 2012)Sub-total
    
    ¥
    602,863
    
    
    ¥
    476,752
    
    
    $
    4,774,682Less: Current portion
    
    
    (131,005
    )
    
    
    (75,662
    )
    
    
    (757,757
    )Total long-term debt
    
    ¥
    471,858
    
    
    ¥
    401,090
    
    
    $
    4,016,925
  F-26




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
     Series 15 NTT DOCOMO Unsecured Straight BondsDate of payment
    
    June 11, 2008Issue amount
    
    ¥80,000 million ($801,202 thousand)Issue price
    
    ¥99.93 per ¥100Interest rate
    
    1.96% per annumDate of maturity
    
    June 20, 2018Use of proceeds
    
    Repayment of outstanding debt, Redemption of
outstanding corporate bonds, Capital expenditures,
Investments, Loans, and Working capital
   Millions of
    
    
    Thousands ofYear ending March 31,
    
    yen
    
    
    U.S. dollars2009
    
    ¥
    75,662
    
    
    $
    757,7562010
    
    
    29,018
    
    
    
    290,6162011
    
    
    180,864
    
    
    
    1,811,3572012
    
    
    174,781
    
    
    
    1,750,4362013
    
    
    16,427
    
    
    
    164,517Thereafter
    
    
    
    
    
    
    ¥
    476,752
    
    
    $
    4,774,682
  F-27




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 11. Shareholders equity:
    Issued shares and treasury stock
  Number of
    
    
    Number ofissued shares
    
    
    treasury stockAs of March 31, 2005
    
    
    48,700,000
    
    
    
    2,427,792Acquisition of treasury stock
based on the resolution by the
general meeting of shareholders
    
    
    
    
    
    
    1,797,977Acquisition of fractional shares
    
    
    
    
    
    
    4Retirement of treasury stock
    
    
    (1,890,000
    )
    
    
    (1,890,000
    )As of March 31, 2006
    
    
    46,810,000
    
    
    
    2,335,773Acquisition of treasury stock
based on the resolution by the
general meeting of shareholders
    
    
    
    
    
    
    880,578Acquisition of fractional shares
    
    
    
    
    
    
    5Retirement of treasury stock
    
    
    (930,000
    )
    
    
    (930,000
    )As of March 31, 2007
    
    
    45,880,000
    
    
    
    2,286,356Acquisition of treasury stock
based on the resolution by the
general meeting of shareholders
    
    
    
    
    
    
    965,666Acquisition of fractional shares
    
    
    
    
    
    
    51Retirement of treasury stock
    
    
    (1,010,000
    )
    
    
    (1,010,000
    )As of March 31, 2008
    
    
    44,870,000
    
    
    
    2,242,073
   F-28




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  Approved maximum numberof treasury stock to be
    
    
    Approved maximum budgetDate of the general meeting
    
    Term of
    
    
    repurchased
    
    
    for share repurchaseof shareholders
    
    repurchase
    
    
    (Shares)
    
    
    (Millions of yen)June 18, 2004
    
    June 18, 2004 - June 21, 2005
    
    
    2,500,000
    
    
    ¥
    600,000June 21, 2005
    
    June 21, 2005 - June 20, 2006
    
    
    2,200,000
    
    
    
    400,000June 20, 2006
    
    June 20, 2006 - June 19, 2007
    
    
    1,400,000
    
    
    
    250,000June 19, 2007
    
    June 20, 2007 - June 19, 2008
    
    
    1,000,000
    
    
    
    200,000June 20, 2008
    
    June 21, 2008 - June 20, 2009
    
    
    900,000
    
    
    
    150,000
  Millions ofYear ended March 31,
    
    Shares
    
    
    yen2006
    
    
    1,797,981
    
    
    ¥
    300,0782007
    
    
    880,583
    
    
    
    157,2232008
    
    
    965,717
    
    
    
    173,002
 Thousands ofYear ended March 31,
    
    Shares
    
    
    U.S. dollars2008
    
    
    965,717
    
    
    $
    1,732,619
   Millions ofDate of the board of directors
    
    Shares
    
    
    yenMarch 28, 2006
    
    
    1,890,000
    
    
    ¥
    362,659March 28, 2007
    
    
    930,000
    
    
    
    175,055March 28, 2008
    
    
    1,010,000
    
    
    
    187,387
 Thousands ofDate of the board of directors
    
    Shares
    
    
    U.S. dollarsMarch 28, 2008
    
    
    1,010,000
    
    
    $
    1,876,685
     F-29




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 Accumulated other comprehensive income:
  Millions of yenUnrealized holdinggains (losses) on
    
    
    Net revaluation of
    
    
    Foreign currency
    
    
    
    
    
    
    Minimum pension
    
    
    Accumulated otheravailable-for-sale
    
    
    financial
    
    
    translation
    
    
    Pension liability
    
    
    liability
    
    
    comprehensivesecurities
    
    
    instruments
    
    
    adjustment
    
    
    adjustment
    
    
    adjustment
    
    
    incomeAs of March 31,
2005
    
    ¥
    21,930
    
    
    ¥
    (213
    )
    
    ¥
    48,921
    
    
    
    
    
    
    ¥
    (13,029
    )
    
    ¥
    57,6092006 change
    
    
    7,662
    
    
    
    121
    
    
    
    (42,597
    )
    
    
    
    
    
    
    3,986
    
    
    
    (30,828
    )As of March 31,
2006
    
    ¥
    29,592
    
    
    ¥
    (92
    )
    
    ¥
    6,324
    
    
    
    
    
    
    ¥
    (9,043
    )
    
    ¥
    26,7812007 change
    
    
    (15,763
    )
    
    
    34
    
    
    
    1,103
    
    
    
    
    
    
    
    5,562
    
    
    
    (9,064
    )Adjustment to
initially apply  
SFAS No. 158
    
    
    
    
    
    
    
    
    
    
    
    
    
    ¥
    (8,324
    )
    
    
    3,481
    
    
    
    (4,843
    )As of March 31,
2007
    
    ¥
    13,829
    
    
    ¥
    (58
    )
    
    ¥
    7,427
    
    
    ¥
    (8,324
    )
    
    
    
    
    
    ¥
    12,8742008 change
    
    
    (16,331
    )
    
    
    133
    
    
    
    7,172
    
    
    
    (3,438
    )
    
    
    
    
    
    
    (12,464
    )As of March 31,
2008
    
    ¥
    (2,502
    )
    
    ¥
    75
    
    
    ¥
    14,599
    
    
    ¥
    (11,762
    )
    
    
    
    
    
    ¥
    410
 Thousands of U.S. dollarsUnrealized holdinggains (losses) on
    
    
    Net revaluation of
    
    
    Foreign currency
    
    
    
    
    
    
    Minimum pension
    
    
    Accumulated otheravailable-for-sale
    
    
    financial
    
    
    translation
    
    
    Pension liability
    
    
    liability
    
    
    comprehensivesecurities
    
    
    instruments
    
    
    adjustment
    
    
    adjustment
    
    
    adjustment
    
    
    incomeAs of March 31,
2007
    
    $
    138,498
    
    
    $
    (581
    )
    
    $
    74,381
    
    
    $
    (83,365
    )
    
    
    
    
    
    $
    128,9332008 change
    
    
    (163,555
    )
    
    
    1,332
    
    
    
    71,828
    
    
    
    (34,432
    )
    
    
    
    
    
    
    (124,827
    )As of March 31,
2008
    
    $
    (25,057
    )
    
    $
    751
    
    
    $
    146,209
    
    
    $
    (117,797
    )
    
    
    
    
    
    $
    4,106
   F-30




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 12. Research and development expenses and advertising expenses:
 Research and development expenses
   Advertising expenses
  13. Other income (expense):
  Thousands ofMillions of yen
    
    
    U.S. dollars2006
    
    
    2007
    
    
    2008
    
    
    2008Net realized gains on marketable securities
    
    ¥
    366
    
    
    ¥
    309
    
    
    ¥
    748
    
    
    $
    7,491Other than temporary impairment of
marketable securities and other
investments
    
    
    (251
    )
    
    
    (8,086
    )
    
    
    (11,418
    )
    
    
    (114,352
    )Foreign exchange gains (losses), net
    
    
    8,072
    
    
    
    281
    
    
    
    (1,609
    )
    
    
    (16,114
    )Rental revenue received
    
    
    2,525
    
    
    
    2,407
    
    
    
    2,256
    
    
    
    22,594Dividends income
    
    
    4,446
    
    
    
    7,203
    
    
    
    3,310
    
    
    
    33,150Penalties and compensation for damages
    
    
    3,279
    
    
    
    2,000
    
    
    
    2,193
    
    
    
    21,963Other, net
    
    
    2,938
    
    
    
    (292
    )
    
    
    (1,366
    )
    
    
    (13,680
    )Total
    
    ¥
    21,375
    
    
    ¥
    3,822
    
    
    ¥
    (5,886
    )
    
    $
    (58,948
    )
  F-31




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 14. Related party transactions:
   .
     F-32




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 15. Segment reporting:
    Millions of yenMobile phone
    
    
    PHS
    
    
    MiscellaneousYear ended March 31, 2006
    
    business
    
    
    business
    
    
    businesses
    
    
    Corporate
    
    
    ConsolidatedOperating revenues
    
    ¥
    4,683,002
    
    
    ¥
    41,741
    
    
    ¥
    41,129
    
    
    
    
    
    
    ¥
    4,765,872Operating expenses
    
    
    3,838,567
    
    
    
    51,210
    
    
    
    43,456
    
    
    
    
    
    
    
    3,933,233Operating income (loss)
    
    ¥
    844,435
    
    
    ¥
    (9,469
    )
    
    ¥
    (2,327
    )
    
    
    
    
    
    ¥
    832,639Total assets
    
    ¥
    4,782,740
    
    
    ¥
    34,414
    
    
    ¥
    23,241
    
    
    ¥
    1,524,862
    
    
    ¥
    6,365,257Depreciation and amortization
    
    ¥
    729,349
    
    
    ¥
    5,054
    
    
    ¥
    3,734
    
    
    
    
    
    
    ¥
    738,137Capital expenditures
    
    ¥
    749,456
    
    
    ¥
    1,071
    
    
    
    
    
    
    ¥
    136,586
    
    
    ¥
    887,113
 Millions of yenMobile phone
    
    
    PHS
    
    
    MiscellaneousYear ended March 31, 2007
    
    business
    
    
    business
    
    
    businesses
    
    
    Corporate
    
    
    ConsolidatedOperating revenues
    
    ¥
    4,718,875
    
    
    ¥
    23,429
    
    
    ¥
    45,789
    
    
    
    
    
    
    ¥
    4,788,093Operating expenses
    
    
    3,915,204
    
    
    
    38,812
    
    
    
    60,553
    
    
    
    
    
    
    
    4,014,569Operating income (loss)
    
    ¥
    803,671
    
    
    ¥
    (15,383
    )
    
    ¥
    (14,764
    )
    
    
    
    
    
    ¥
    773,524Total assets
    
    ¥
    5,067,348
    
    
    ¥
    25,212
    
    
    ¥
    40,213
    
    
    ¥
    983,442
    
    
    ¥
    6,116,215Depreciation and amortization
    
    ¥
    735,270
    
    
    ¥
    3,230
    
    
    ¥
    6,838
    
    
    
    
    
    
    ¥
    745,338Capital expenditures
    
    ¥
    781,548
    
    
    ¥
    1,195
    
    
    
    
    
    
    ¥
    151,680
    
    
    ¥
    934,423
  F-33




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 Millions of yenMobile phone
    
    
    PHS
    
    
    MiscellaneousYear ended March 31, 2008
    
    business
    
    
    business
    
    
    businesses
    
    
    Corporate
    
    
    ConsolidatedOperating revenues
    
    ¥
    4,647,132
    
    
    ¥
    9,953
    
    
    ¥
    54,742
    
    
    
    
    
    
    ¥
    4,711,827Operating expenses
    
    
    3,788,943
    
    
    
    39,912
    
    
    
    74,660
    
    
    
    
    
    
    
    3,903,515Operating income (loss)
    
    ¥
    858,189
    
    
    ¥
    (29,959
    )
    
    ¥
    (19,918
    )
    
    
    
    
    
    ¥
    808,312Total assets
    
    ¥
    4,838,663
    
    
    ¥
    19,664
    
    
    ¥
    80,668
    
    
    ¥
    1,271,839
    
    
    ¥
    6,210,834Depreciation and amortization
    
    ¥
    767,481
    
    
    ¥
    1,601
    
    
    ¥
    7,343
    
    
    
    
    
    
    ¥
    776,425Capital expenditures
    
    ¥
    623,975
    
    
    ¥
    244
    
    
    
    
    
    
    ¥
    134,524
    
    
    ¥
    758,743
 Thousands of U.S. dollarsMobile phone
    
    
    PHS
    
    
    MiscellaneousYear ended March 31, 2008
    
    business
    
    
    business
    
    
    businesses
    
    
    Corporate
    
    
    ConsolidatedOperating revenues
    
    $
    46,541,132
    
    
    $
    99,680
    
    
    $
    548,242
    
    
    
    
    
    
    $
    47,189,054Operating expenses
    
    
    37,946,350
    
    
    
    399,720
    
    
    
    747,721
    
    
    
    
    
    
    
    39,093,791Operating income (loss)
    
    $
    8,594,782
    
    
    $
    (300,040
    )
    
    $
    (199,479
    )
    
    
    
    
    
    $
    8,095,263Total assets
    
    $
    48,459,319
    
    
    $
    196,935
    
    
    $
    807,892
    
    
    $
    12,737,496
    
    
    $
    62,201,642Depreciation and amortization
    
    $
    7,686,340
    
    
    $
    16,034
    
    
    $
    73,540
    
    
    
    
    
    
    $
    7,775,914Capital expenditures
    
    $
    6,249,124
    
    
    $
    2,443
    
    
    
    
    
    
    $
    1,347,261
    
    
    $
    7,598,828
    Thousands ofMillions of yen
    
    
    U.S. dollarsYear ended March 31
    
    2006
    
    
    2007
    
    
    2008
    
    
    2008Operating Revenues :Wireless services
    
    ¥
    4,295,856
    
    
    ¥
    4,314,140
    
    
    ¥
    4,165,234
    
    
    $
    41,714,913Cellular services revenues
    
    
    4,158,134
    
    
    
    4,182,609
    
    
    
    4,018,988
    
    
    
    40,250,255- Voice revenues
    
    
    3,038,654
    
    
    
    2,940,364
    
    
    
    2,645,096
    
    
    
    26,490,696Including: FOMA services
    
    
    1,169,947
    
    
    
    1,793,037
    
    
    
    2,084,263
    
    
    
    20,873,941- Packet communications revenues
    
    
    1,119,480
    
    
    
    1,242,245
    
    
    
    1,373,892
    
    
    
    13,759,559Including: FOMA services
    
    
    613,310
    
    
    
    971,946
    
    
    
    1,254,648
    
    
    
    12,565,328PHS services revenues
    
    
    40,943
    
    
    
    23,002
    
    
    
    9,472
    
    
    
    94,863Other revenues
    
    
    96,779
    
    
    
    108,529
    
    
    
    136,774
    
    
    
    1,369,795Equipment sales
    
    
    470,016
    
    
    
    473,953
    
    
    
    546,593
    
    
    
    5,474,141Total operating revenues
    
    ¥
    4,765,872
    
    
    ¥
    4,788,093
    
    
    ¥
    4,711,827
    
    
    $
    47,189,054
  F-34




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 16. Employees retirement benefits:
 Severance payments and contract-type corporate pension plan
   Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Change in benefit obligations:Projected benefit obligation, beginning of year
    
    ¥
    188,856
    
    
    ¥
    183,004
    
    
    $
    1,832,789Service cost
    
    
    10,219
    
    
    
    9,521
    
    
    
    95,353Interest cost
    
    
    3,654
    
    
    
    3,889
    
    
    
    38,948Benefit payments
    
    
    (9,737
    )
    
    
    (10,471
    )
    
    
    (104,867
    )Plan amendment
    
    
    (465
    )
    
    
    
    
    
    
    Transfer of liability from defined benefit
pension plans of the NTT group
    
    
    160
    
    
    
    281
    
    
    
    2,815Actuarial gain
    
    
    (9,683
    )
    
    
    (3,996
    )
    
    
    (40,020
    )Projected benefit obligation, end of year
    
    ¥
    183,004
    
    
    ¥
    182,228
    
    
    $
    1,825,018Change in fair value of plan assets:Fair value of plan assets, beginning of year
    
    ¥
    79,266
    
    
    ¥
    85,207
    
    
    $
    853,350Actual return on plan assets
    
    
    3,096
    
    
    
    (7,870
    )
    
    
    (78,818
    )Employer contributions
    
    
    4,470
    
    
    
    3,980
    
    
    
    39,860Benefit payments
    
    
    (1,661
    )
    
    
    (1,838
    )
    
    
    (18,408
    )Transfer of plan assets from defined benefit
pension plans of the NTT group
    
    
    36
    
    
    
    65
    
    
    
    651Fair value of plan assets, end of year
    
    ¥
    85,207
    
    
    ¥
    79,544
    
    
    $
    796,635At March 31:Funded status
    
    ¥
    (97,797
    )
    
    ¥
    (102,684
    )
    
    $
    (1,028,383
    )
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Liability for employees retirement benefits
    
    ¥
    (98,621
    )
    
    ¥
    (102,912
    )
    
    $
    (1,030,666
    )Prepaid pension cost
    
    
    824
    
    
    
    228
    
    
    
    2,283Net amount recognized
    
    ¥
    (97,797
    )
    
    ¥
    (102,684
    )
    
    $
    (1,028,383
    )
   F-35




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Actuarial gains (losses), net
    
    ¥
    (28,737
    )
    
    ¥
    (33,921
    )
    
    $
    (339,720
    )Prior service cost
    
    
    20,239
    
    
    
    18,332
    
    
    
    183,595Transition obligation
    
    
    (1,439
    )
    
    
    (1,312
    )
    
    
    (13,140
    )Total
    
    ¥
    (9,937
    )
    
    ¥
    (16,901
    )
    
    $
    (169,265
    )
   Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Plans with projected benefit obligation
in excess of plan assetsProjected benefit obligation
    
    ¥
    178,323
    
    
    ¥
    177,963
    
    
    $
    1,782,303Fair value of plan assets
    
    
    79,702
    
    
    
    75,051
    
    
    
    751,637Plans with accumulated benefit
obligation in excess of plan assetsAccumulated benefit obligation
    
    ¥
    171,549
    
    
    ¥
    172,239
    
    
    $
    1,724,977Fair value of plan assets
    
    
    79,313
    
    
    
    75,051
    
    
    
    751,637
  Thousands ofMillions of yen
    
    
    U.S. dollars2006
    
    
    2007
    
    
    2008
    
    
    2008Service cost
    
    ¥
    9,879
    
    
    ¥
    10,219
    
    
    ¥
    9,521
    
    
    $
    95,353Interest cost on projected benefit
obligation
    
    
    3,493
    
    
    
    3,654
    
    
    
    3,889
    
    
    
    38,948Expected return on plan assets
    
    
    (1,640
    )
    
    
    (2,028
    )
    
    
    (2,144
    )
    
    
    (21,472
    )Amortization of prior service cost
    
    
    (1,861
    )
    
    
    (1,907
    )
    
    
    (1,907
    )
    
    
    (19,099
    )Amortization of actuarial gains and losses
    
    
    2,018
    
    
    
    1,600
    
    
    
    834
    
    
    
    8,353Amortization of transition obligation
    
    
    132
    
    
    
    127
    
    
    
    127
    
    
    
    1,272Net periodic pension cost
    
    ¥
    12,021
    
    
    ¥
    11,665
    
    
    ¥
    10,320
    
    
    $
    103,355
  F-36




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  Thousands ofMillions of yen
    
    
    U.S. dollars2006
    
    
    2007
    
    
    2008
    
    
    2008Other changes in plan assets and benefit
obligations recognized in Accumulated other
comprehensive income:Adjustment to minimum pension liability
    
    ¥
    (4,564
    )
    
    ¥
    (8,778
    )
    
    
    
    
    
    
    Actuarial (gains) losses arising during
period, net
    
    
    
    
    
    
    28,737
    
    
    ¥
    6,018
    
    
    $
    60,270Prior service cost arising during period
    
    
    
    
    
    
    (20,239
    )
    
    
    
    
    
    
    Transition obligation arising during
period
    
    
    
    
    
    
    1,439
    
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    
    
    
    
    
    
    
    
    1,907
    
    
    
    19,099Amortization of actuarial gains and losses
    
    
    
    
    
    
    
    
    
    
    (834
    )
    
    
    (8,353
    )Amortization of transition obligation
    
    
    
    
    
    
    
    
    
    
    (127
    )
    
    
    (1,272
    )Elimination of minimum pension liability
    
    
    
    
    
    
    (5,206
    )
    
    
    
    
    
    
    Total recognized in Accumulated other
comprehensive income
    
    ¥
    (4,564
    )
    
    ¥
    (4,047
    )
    
    ¥
    6,964
    
    
    $
    69,744Total recognized in net periodic pension
cost and Accumulated other comprehensive
income
    
    ¥
    7,457
    
    
    ¥
    7,618
    
    
    ¥
    17,284
    
    
    $
    173,099
   2007
    
    
    2008Discount rate
    
    
    2.2
    %
    
    
    2.3
    %Long-term rate of salary increases
    
    
    2.1
    
    
    
    2.2
  2006
    
    
    2007
    
    
    2008Discount rate
    
    
    2.0
    %
    
    
    2.0
    %
    
    
    2.2
    %Long-term rate of salary increases
    
    
    2.1
    
    
    
    2.1
    
    
    
    2.1Expected long-term rate of return on plan assets
    
    
    2.5
    
    
    
    2.5
    
    
    
    2.5
   F-37




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  2007
    
    
    2008Domestic bonds
    
    
    32.8
    %
    
    
    42.6
    %Domestic stock
    
    
    23.8
    
    
    
    23.0Foreign stock
    
    
    14.8
    
    
    
    13.8Foreign bonds
    
    
    18.3
    
    
    
    10.7Other
    
    
    10.3
    
    
    
    9.9Total
    
    
    100.0
    %
    
    
    100.0
    %
      Thousands ofYear ending March 31,
    
    Millions of yen
    
    
    U.S. dollars2009
    
    ¥
    13,365
    
    
    $
    133,8512010
    
    
    12,164
    
    
    
    121,8232011
    
    
    11,701
    
    
    
    117,1862012
    
    
    11,435
    
    
    
    114,5222013
    
    
    11,176
    
    
    
    111,9282014-2018
    
    
    65,981
    
    
    
    660,801
  F-38




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 Social welfare pension scheme and NTT Kigyou-Nenkin-Kikin (NTT Corporate Defined Benefit Pension
Plan) 
      F-39




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Change in benefit obligations:Projected benefit obligation, beginning of year
    
    ¥
    132,031
    
    
    ¥
    131,405
    
    
    $
    1,316,024Service cost
    
    
    3,440
    
    
    
    3,244
    
    
    
    32,489Interest cost
    
    
    2,619
    
    
    
    2,872
    
    
    
    28,763Benefit payments
    
    
    (1,272
    )
    
    
    (1,123
    )
    
    
    (11,247
    )Internal adjustment due to transfer of employees within
the NTT group
    
    
    (438
    )
    
    
    (413
    )
    
    
    (4,136
    )Actuarial gain
    
    
    (4,975
    )
    
    
    (2,412
    )
    
    
    (24,156
    )Transfer of the substitutional portion to the government
    
    
    
    
    
    
    (55,288
    )
    
    
    (553,711
    )Projected benefit obligation, end of year
    
    ¥
    131,405
    
    
    ¥
    78,285
    
    
    $
    784,026Change in fair value of plan assets:Fair value of plan assets, beginning of year
    
    ¥
    90,262
    
    
    ¥
    94,136
    
    
    $
    942,774Actual return on plan assets
    
    
    3,697
    
    
    
    (3,122
    )
    
    
    (31,267
    )Employer contributions
    
    
    1,240
    
    
    
    954
    
    
    
    9,554Employee contributions
    
    
    522
    
    
    
    452
    
    
    
    4,527Benefit payments
    
    
    (1,272
    )
    
    
    (1,123
    )
    
    
    (11,247
    )Internal adjustment due to transfer of employees within
the NTT group
    
    
    (313
    )
    
    
    (294
    )
    
    
    (2,944
    )Transfer of the substitutional portion to the government
    
    
    
    
    
    
    (26,694
    )
    
    
    (267,341
    )Fair value of plan assets, end of year
    
    ¥
    94,136
    
    
    ¥
    64,309
    
    
    $
    644,056At March 31:Funded status
    
    ¥
    (37,269
    )
    
    ¥
    (13,976
    )
    
    $
    (139,970
    )
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Actuarial gains (losses), net
    
    ¥
    (6,080
    )
    
    ¥
    (5,221
    )
    
    $
    (52,288
    )Prior service cost
    
    
    2,497
    
    
    
    2,140
    
    
    
    21,432Total
    
    ¥
    (3,583
    )
    
    ¥
    (3,081
    )
    
    $
    (30,856
    )
  F-40




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
   Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Plans with projected benefit obligation
in excess of plan assetsProjected benefit obligation
    
    ¥
    131,405
    
    
    ¥
    78,285
    
    
    $
    784,026Fair value of plan assets
    
    
    94,136
    
    
    
    64,309
    
    
    
    644,056Plans with accumulated benefit
obligation in excess of plan assetsAccumulated benefit obligation
    
    ¥
    109,680
    
    
    ¥
    19,518
    
    
    $
    195,473Fair value of plan assets
    
    
    94,136
    
    
    
    16,803
    
    
    
    168,282
  Thousands ofMillions of yen
    
    
    U.S. dollars2006
    
    
    2007
    
    
    2008
    
    
    2008Service cost
    
    ¥
    3,626
    
    
    ¥
    3,440
    
    
    ¥
    3,244
    
    
    $
    32,489Interest cost on projected benefit obligation
    
    
    2,580
    
    
    
    2,619
    
    
    
    2,872
    
    
    
    28,763Expected return on plan assets
    
    
    (1,970
    )
    
    
    (2,254
    )
    
    
    (2,339
    )
    
    
    (23,425
    )Amortization of prior service cost
    
    
    (357
    )
    
    
    (357
    )
    
    
    (357
    )
    
    
    (3,575
    )Amortization of actuarial gains and losses
    
    
    1,956
    
    
    
    362
    
    
    
    16
    
    
    
    160Contribution from employees
    
    
    (532
    )
    
    
    (522
    )
    
    
    (452
    )
    
    
    (4,527
    )Net periodic pension cost
    
    ¥
    5,303
    
    
    ¥
    3,288
    
    
    ¥
    2,984
    
    
    $
    29,885Gain on transfer of substitutional portion
of pension liabilities
    
    
    
    
    
    
    
    
    
    
    (24,702
    )
    
    
    (247,391
    )Total
    
    ¥
    5,303
    
    
    ¥
    3,288
    
    
    ¥
    (21,718
    )
    
    $
    (217,506
    )
  F-41




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  Thousands ofMillions of yen
    
    
    U.S. dollars2006
    
    
    2007
    
    
    2008
    
    
    2008Other changes in plan assets and benefit
obligations recognized in Accumulated other
comprehensive income:Adjustment to minimum pension liability
    
    ¥
    (2,132
    )
    
    ¥
    (600
    )
    
    
    
    
    
    
    Actuarial (gains) losses arising during
period, net
    
    
    
    
    
    
    6,080
    
    
    ¥
    3,049
    
    
    $
    30,536Prior service cost arising during period
    
    
    
    
    
    
    (2,497
    )
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    
    
    
    
    
    
    
    
    357
    
    
    
    3,575Amortization of actuarial gains and losses
    
    
    
    
    
    
    
    
    
    
    (16
    )
    
    
    (160
    )Reclassification of actuarial gains and
losses due to transfer of the
substitutional portion to the government
    
    
    
    
    
    
    
    
    
    
    (3,892
    )
    
    
    (38,978
    )Elimination of minimum pension liability
    
    
    
    
    
    
    (311
    )
    
    
    
    
    
    
    Total recognized in Accumulated other
comprehensive income
    
    ¥
    (2,132
    )
    
    ¥
    2,672
    
    
    ¥
    (502
    )
    
    $
    (5,027
    )Total recognized in net periodic pension
cost, gain on transfer of substitutional
portion of pension liabilities and
Accumulated other comprehensive income
    
    ¥
    3,171
    
    
    ¥
    5,960
    
    
    ¥
    (22,220
    )
    
    $
    (222,533
    )
   2007
    
    
    2008Discount rate
    
    
    2.2
    %
    
    
    2.3
    %Long-term rate of salary increases
    
    
    2.6
    
    
    
    2.6
  2006
    
    
    2007
    
    
    2008Discount rate
    
    
    2.0
    %
    
    
    2.0
    %
    
    
    2.2
    %Long-term rate of salary increases
    
    
    2.6
    
    
    
    2.6
    
    
    
    2.6Expected long-term rate of return on plan assets
    
    
    2.5
    
    
    
    2.5
    
    
    
    2.5
  F-42




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
   2007
    
    
    2008Domestic bonds
    
    
    49.6
    %
    
    
    58.2
    %Domestic stock
    
    
    17.9
    
    
    
    17.4Foreign stock
    
    
    11.4
    
    
    
    10.4Foreign bonds
    
    
    14.2
    
    
    
    8.1Other
    
    
    6.9
    
    
    
    5.9Total
    
    
    100.0
    %
    
    
    100.0
    %
    Thousands ofYear ending March 31,
    
    Millions of yen
    
    
    U.S. dollars2009
    
    ¥
    981
    
    
    $
    9,8252010
    
    
    1,323
    
    
    
    13,2502011
    
    
    1,497
    
    
    
    14,9922012
    
    
    1,672
    
    
    
    16,7452013
    
    
    1,852
    
    
    
    18,5482014-2018
    
    
    11,729
    
    
    
    117,466
  F-43




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 17. Income taxes:
  Thousands ofMillions of yen
    
    
    U.S. dollars2006
    
    
    2007
    
    
    2008
    
    
    2008Income from continuing operations before equity in
net income (losses) of affiliates and minority
interest
    
    ¥
    341,382
    
    
    ¥
    313,679
    
    
    ¥
    322,955
    
    
    $
    3,234,401Equity in net income (losses) of affiliates
    
    
    1,653
    
    
    
    (850
    )
    
    
    9,257
    
    
    
    92,709Other comprehensive income (loss):Unrealized holding gains (losses) on
available-for-sale securities
    
    
    6,927
    
    
    
    (10,586
    )
    
    
    (11,668
    )
    
    
    (116,855
    )Less: Reclassification of realized
gains and losses included in net income
    
    
    (1,618
    )
    
    
    (276
    )
    
    
    299
    
    
    
    2,994Net revaluation of financial instruments
    
    
    256
    
    
    
    576
    
    
    
    (363
    )
    
    
    (3,635
    )Less: Reclassification of realized
gains and losses included in net income
    
    
    (172
    )
    
    
    (552
    )
    
    
    455
    
    
    
    4,557Foreign currency translation adjustment
    
    
    (234
    )
    
    
    76
    
    
    
    6,634
    
    
    
    66,440Less: Reclassification of realized
gains and losses included in net income
    
    
    (15,779
    )
    
    
    
    
    
    
    (88
    )
    
    
    (881
    )Adjustment to initially apply SFAS No. 158
    
    
    
    
    
    
    (3,395
    )
    
    
    
    
    
    
    Pension liability adjustment:Actuarial gains (losses) arising during
period, net
    
    
    
    
    
    
    
    
    
    
    (3,513
    )
    
    
    (35,183
    )Less: Amortization of prior service cost
    
    
    
    
    
    
    
    
    
    
    (926
    )
    
    
    (9,274
    )Less: Amortization of actuarial gains
and losses
    
    
    
    
    
    
    
    
    
    
    348
    
    
    
    3,486Less: Amortization of transition
obligation
    
    
    
    
    
    
    
    
    
    
    52
    
    
    
    521Less: Reclassification of actuarial
gains and losses due to transfer of the
substitutional portion to the
government
    
    
    
    
    
    
    
    
    
    
    1,660
    
    
    
    16,624Minimum pension liability adjustment
    
    
    2,758
    
    
    
    3,849
    
    
    
    
    
    
    
    Total income taxes
    
    ¥
    335,173
    
    
    ¥
    302,521
    
    
    ¥
    325,102
    
    
    $
    3,255,904
     F-44




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  2006
    
    
    2007
    
    
    2008Statutory income tax rate
    
    
    40.9
    %
    
    
    40.9
    %
    
    
    40.9
    %Expenses not deductible for tax purposes
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.3Tax credit for special tax treatment
such as R&D investment tax incentive,
IT investment promotion tax incentive
and IT infrastructure tax incentive
    
    
    (2.6
    )
    
    
    (0.9
    )
    
    
    (0.8
    )Changes in valuation allowance
    
    
    (0.9
    )
    
    
    
    
    
    
    Other
    
    
    (1.7
    )
    
    
    0.4
    
    
    
    (0.1
    )Effective income tax rate
    
    
    35.9
    %
    
    
    40.6
    %
    
    
    40.3
    %
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Deferred tax assets:Property, plant and equipment and intangible assets
principally due to differences in depreciation and
amortization
    
    ¥
    45,139
    
    
    ¥
    48,618
    
    
    $
    486,911Liability for employees retirement benefits
    
    
    54,329
    
    
    
    46,965
    
    
    
    470,356Reserve for point loyalty programs
    
    
    42,397
    
    
    
    46,004
    
    
    
    460,731Deferred
revenues regarding Nikagetsu Kurikoshi (2
month carry-over)
    
    
    28,779
    
    
    
    32,441
    
    
    
    324,897Accrued enterprise tax
    
    
    6,244
    
    
    
    16,594
    
    
    
    166,189Compensated absences
    
    
    9,276
    
    
    
    12,455
    
    
    
    124,737Accrued commissions to agent resellers
    
    
    23,293
    
    
    
    9,343
    
    
    
    93,570Marketable securities and other investments
    
    
    3,604
    
    
    
    7,873
    
    
    
    78,848Accrued bonus
    
    
    7,006
    
    
    
    6,897
    
    
    
    69,074Inventories
    
    
    14,861
    
    
    
    5,428
    
    
    
    54,362Unrealized holding losses on available-for-sale securities
    
    
    
    
    
    
    1,746
    
    
    
    17,486Other
    
    
    10,571
    
    
    
    12,435
    
    
    
    124,537Total deferred tax assets
    
    ¥
    245,499
    
    
    ¥
    246,799
    
    
    $
    2,471,698Deferred tax liabilities:Foreign currency translation adjustment
    
    
    128
    
    
    
    6,674
    
    
    
    66,840Property, plant and equipment due to differences in
capitalized interest
    
    
    1,738
    
    
    
    2,343
    
    
    
    23,465Investment in affiliates
    
    
    438
    
    
    
    2,292
    
    
    
    22,955Intangible assets (principally customer related assets)
    
    
    5,499
    
    
    
    2,026
    
    
    
    20,291Unrealized holding gains on available-for-sale securities
    
    
    9,623
    
    
    
    
    
    
    
    Other
    
    
    7,436
    
    
    
    3,551
    
    
    
    35,563Total deferred tax liabilities
    
    ¥
    24,862
    
    
    ¥
    16,886
    
    
    $
    169,114Net deferred tax assets
    
    ¥
    220,637
    
    
    ¥
    229,913
    
    
    $
    2,302,584
  F-45




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  Thousands ofMillions of yen
    
    
    U.S. dollars2007
    
    
    2008
    
    
    2008Deferred tax assets (current assets)
    
    ¥
    94,868
    
    
    ¥
    108,037
    
    
    $
    1,081,993Deferred tax assets (non-current investments and other assets)
    
    
    127,696
    
    
    
    123,403
    
    
    
    1,235,884Other current liabilities
    
    
    (7
    )
    
    
    
    
    
    
    Other long-term liabilities
    
    
    (1,920
    )
    
    
    (1,527
    )
    
    
    (15,293
    )Total
    
    ¥
    220,637
    
    
    ¥
    229,913
    
    
    $
    2,302,584
    Other taxes
   F-46




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 18. Commitments and contingencies:
Leases
   Thousands ofMillions of yen
    
    
    U.S. dollarsClass of property
    
    2007
    
    
    2008
    
    
    2008Tools, furniture and fixtures
    
    ¥
    12,016
    
    
    ¥
    11,699
    
    
    $
    117,166Software
    
    
    875
    
    
    
    409
    
    
    
    4,096Sub-total
    
    
    12,891
    
    
    
    12,108
    
    
    
    121,262Less: Accumulated depreciation and amortization
    
    
    (7,143
    )
    
    
    (7,833
    )
    
    
    (78,448
    )Total
    
    ¥
    5,748
    
    
    ¥
    4,275
    
    
    $
    42,814
   Millions of
    
    
    Thousands ofYear ending March 31,
    
    yen
    
    
    U.S. dollars2009
    
    ¥
    3,036
    
    
    $
    30,4052010
    
    
    2,332
    
    
    
    23,3552011
    
    
    1,591
    
    
    
    15,9342012
    
    
    882
    
    
    
    8,8332013
    
    
    382
    
    
    
    3,826Thereafter
    
    
    61
    
    
    
    611Total minimum lease payments
    
    
    8,284
    
    
    
    82,964LessAmount representing interest
    
    
    (506
    )
    
    
    (5,067
    )Present value of net minimum lease payments
    
    
    7,778
    
    
    
    77,897LessAmounts representing estimated executory costs
    
    
    (1,031
    )
    
    
    (10,326
    )Net minimum lease payments
    
    
    6,747
    
    
    
    67,571LessCurrent obligation
    
    
    (2,422
    )
    
    
    (24,256
    )Long-term capital lease obligations
    
    ¥
    4,325
    
    
    $
    43,315
   F-47




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  Millions of
    
    
    Thousands ofYear ending March 31,
    
    yen
    
    
    U.S. dollars2009
    
    ¥
    2,152
    
    
    $
    21,5532010
    
    
    1,870
    
    
    
    18,7282011
    
    
    1,521
    
    
    
    15,2332012
    
    
    1,424
    
    
    
    14,2612013
    
    
    1,424
    
    
    
    14,261Thereafter
    
    
    14,238
    
    
    
    142,594Total minimum future rentals
    
    ¥
    22,629
    
    
    $
    226,630
  Thousands ofMillions of yen
    
    
    U.S. dollars2006
    
    
    2007
    
    
    2008
    
    
    2008Minimum rentals
    
    ¥
    64,323
    
    
    ¥
    67,897
    
    
    ¥
    70,673
    
    
    $
    707,792
 Litigation
  Purchase commitments
  Guarantees
    F-48




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 19. Financial instruments:
 (1) Risk management
  (2) Fair value of financial instruments
 Short-term financial instruments
  Long-term debt including current portion
   Millions of yen
    
    
    Thousands of U.S. dollars2007
    
    
    2008
    
    
    2008Carrying
    
    
    
    
    
    
    
    
    Carrying
    
    
    
    
    
    
    Carryingamount
    
    
    
    
    Fair value
    
    
    amount
    
    
    Fair value
    
    
    amount
    
    
    Fair value¥
    602,863
    
    
    
    
    ¥
    606,910
    
    
    ¥
    476,752
    
    
    ¥
    481,832
    
    
    $
    4,774,682
    
    
    $
    4,825,558
 Interest rate swap agreements
   F-49




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  Contract Term
    
    
    
    
    
    
    
    
    
    Millions of yen(in the year

    
    Weighted average rate per annum
    
    
    2007ended/ending
    
    Receive
    
    
    Pay
    
    
    Contract
    
    
    FairMarch 31,)
    
    fixed
    
    
    floating
    
    
    Amount
    
    
    value2004-2012
    
    
    1.5
    %
    
    
    0.9
    %
    
    ¥
    235,800
    
    
    ¥
    858
 Thousands ofContract Term
    
    
    
    
    
    
    
    
    
    Millions of yen
    
    
    U.S. dollars(in the year
    
    Weighted average rate per annum
    
    
    2008
    
    
    2008ended/ending

    
    Receive
    
    
    Pay
    
    
    Contract
    
    
    Fair
    
    
    Contract
    
    
    FairMarch 31,)

    
    fixed
    
    
    floating
    
    
    Amount
    
    
    value
    
    
    Amount
    
    
    Value2004-2012
    
    
    1.5
    %
    
    
    1.2
    %
    
    ¥
    235,800
    
    
    ¥
    3,511
    
    
    $
    2,361,542
    
    
    $
    35,163
   Foreign currency swap agreement
      F-50




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
  Millions of yen
    
    
    Thousands of U.S. dollars2007
    
    
    2008
    
    
    2008Contract
    
    
    
    
    
    
    
    
    Contract
    
    
    
    
    
    
    Contractamount
    
    
    
    
    Fair value
    
    
    amount
    
    
    Fair value
    
    
    Amount
    
    
    Fair value¥
    10,485
    
    
    
    
    ¥
    1,251
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 Foreign exchange forward contracts
   Millions of yen
    
    
    Thousands of U.S. dollars2007
    
    
    2008
    
    
    2008Contract
    
    
    
    
    
    
    
    
    Contract
    
    
    
    
    
    
    Contractamount
    
    
    
    
    Fair value
    
    
    amount
    
    
    Fair value
    
    
    Amount
    
    
    Fair value¥
    938
    
    
    
    
    ¥
    4
    
    
    ¥
    4,731
    
    
    ¥
    (16
    )
    
    $
    47,381
    
    
    $
    (160
    )
  Other
  (3) Concentrations of risk
  20. Subsequent event:
   F-51




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##### Table of Contents



NTT DOCOMO, INC. AND SUBSIDIARIES
 
 FINANCIAL STATEMENT SCHEDULE
 YEARS ENDED MARCH 31, 2006, 2007 and 2008
 
 SCHEDULE IIVALUATION AND QUALIFYING ACCOUNTS
 Millions of yenBalance atBeginning of
    
    
    
    
    
    
    
    
    
    
    Balance at EndYear
    
    
    Additions
    
    
    Deductions (*1)
    
    
    of Year2006Allowance for doubtful accounts
    
    ¥
    18,359
    
    
    ¥
    9,919
    
    
    ¥
    (13,538
    )
    
    ¥
    14,7402007Allowance for doubtful accounts
    
    ¥
    14,740
    
    
    ¥
    8,654
    
    
    ¥
    (10,216
    )
    
    ¥
    13,1782008Allowance for doubtful accounts
    
    ¥
    13,178
    
    
    ¥
    12,107
    
    
    ¥
    (8,784
    )
    
    ¥
    16,501
 Thousands of U.S. dollarsBalance atBeginning of
    
    
    
    
    
    
    
    
    
    
    Balance at EndYear
    
    
    Additions
    
    
    Deductions (*1)
    
    
    of Year2008Allowance for doubtful accounts
    
    $
    131,978
    
    
    $
    121,252
    
    
    $
    (87,972
    )
    
    $
    165,258
 
 *
    
    1: Amounts written off. Millions of yenBalance atBeginning of
    
    
    
    
    
    
    
    
    
    
    Balance at EndYear
    
    
    Additions
    
    
    Deductions
    
    
    of Year2006Valuation allowancesDeferred tax assets
    
    ¥
    23,436
    
    
    
    
    
    
    ¥
    (23,436
    )
    
    
    2007Valuation allowancesDeferred tax assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2008Valuation allowancesDeferred tax assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 Thousands of U.S. dollarsBalance atBeginning of
    
    
    
    
    
    
    
    
    
    
    Balance at EndYear
    
    
    Additions
    
    
    Deductions
    
    
    of Year2008Valuation allowancesDeferred tax assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
  F-52




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##### Table of Contents



SIGNATURES
  NTT DoCoMo, Inc.By
    /s/ Ryuji YamadaName:  Ryuji YamadaTitle:    President and Chief Executive Officer




---



##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    
    
    Description1.1
    
    
    
    
    Articles of Incorporation of the registrant (English translation)1.2
    
    
    
    
    Share Handling Regulations of the registrant (English
translation)*1.3
    
    
    
    
    Regulations of the Board of Directors of the registrant (English
translation)1.4
    
    
    
    
    Regulations of the Board of Corporate Auditors of the registrant
(English translation)**2.1
    
    
    
    
    Specimen common stock certificates of the registrant***2.2
    
    
    
    
    Form of Deposit Agreement among the registrant, The Bank of New
York as Depositary and all owners and holders from time to time of
American Depositary Receipts, including the form of American
Depositary Receipt (incorporated by reference to Post-Effective
Amendment No. 3 to Registration Statement on Form F-6 (File
No. 333-9694) filed on May 15, 2002)8.1
    
    
    
    
    List of Subsidiaries11.1
    
    
    
    
    Code of Ethics*12.1
    
    
    
    
    Certification of Chief Executive Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 200212.2
    
    
    
    
    Certification of Chief Financial Officer pursuant to Section 302
of the Sarbanes-Oxley Act of 200213.1
    
    
    
    
    Certification of Chief Executive Officer pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 135013.2
    
    
    
    
    Certification of Chief Financial Officer pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 135015.1
    
    
    
    
    Managements Report on Internal Control Over Financial Reporting15.2
    
    
    
    
    Report of Independent Registered Public Accounting Firm
 
 *
    
    Previously filed with the Securities and Exchange Commission on June 27, 2006 and herein
incorporated by reference.**
    
    Previously filed with the Securities and Exchange Commission on June 25, 2007 and herein
incorporated by reference.***
    
    Previously filed with the Securities and Exchange Commission on January 25, 2002 and herein
incorporated by reference.