FY3/2012 First Half Results (4/2011 - 9/2011)

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FY3/2012 First Half Results (4/2011 - 9/2011)

• contents

FY3/2012 1H Results & Financials

• Mobile subscribers reached about 3.6 million as of September 2011

• Improvement in EBITDA margin / Net income doubled YoY

• Net Free Cash Flow increased 3X YoY

• Net debt/EBITDA (leverage ratio) below 3.0X / Total net debt below \200 billion

• Improvement in mobile churn in 2Q

• Blended Mobile ARPU Breakdown

• Mobile ARPU and Retention Strategy

Strategy

• Japan's mobile Broadband Market Overview / Penetration still low, high growth potential

• No.1 in Mobile Broadband sales in 4 consecutive years

• eAccess Mobile Broadband Leadership

• Sales channels expansion

• Competitive smartphone pricing

LTE

• Plan to launch LTE service in March 2012 / Expand LTE coverage to 70% in FY2012

• LTE deployment benefits

• Global deployment of LTE band

900MHz

• Disproportion spectrum allocation

• Merits of 900MHz

• 900MHz Mandatory Requirements

• MIC preliminary guidelines for 900MHz

• Our view on the draft of guidelines for 900MHz spectrum allocation

Appendix

• Financial Results - 1H comparison / Mobile EBITDA increased 24% YoY

• Cash Flows - Quarterly trend / Continue improvement in Free Cash Flow

• Balance Sheets - Quarterly trend / Lowering net debt and leverage

• Pro-forma annual financials trend & forecasts