We would like to offer our heartfelt sympathies and condolences to the victims of the Great East Japan Earthquake and express our sincere hope that the affected areas will recover as early as possible.

While the telecommunications networks, including mobile phones, have been widespread among the public as an important lifeline, securing the communication means becomes the issue of overriding importance for both companies and individuals at the initial stage of a disaster. The Great East Japan Earthquake has offered a precious opportunity for us to newly realize our great responsibilities that we provide users services related to the communications infrastructure indispensable for society.

In the telecommunications industry, the total number of mobile phone and PHS (personal handy-phone system) subscriptions has reached approximately 120 million. On the other hand, with smartphones and tablet devices rapidly gaining momentum, new market needs have emerged, where we also have many business opportunities. In the midst of such diversification of mobile terminals and in the backdrop where they assume characteristic of explanatory products more than ever, we strive to realize further improved CS (customer satisfaction) by upgrading the skills of our sales staff through implementation of educational and training programs in a continuous and thorough manner. We believe that our strengths lie not only in the mobile telecommunication business, but also in the capability to provide comprehensive solution services, including fixed-line telecommunications services. In light of such a business environment, we have developed medium- to long-term management strategies as follows:

• Renovation: Establishing new business models
• Deepening : Increasing the depth of existing business models
• Evolution : Further progress in the management base

In an effort to realize continuous growth and build a new revenue base through the creation of new and overseas businesses while consolidating the existing businesses, we proactively promote the aforementioned a three-directional effort, named “SHINKA” aiming at medium- to long-term growth.

Since we are determined to continue our ongoing efforts to enhance our corporate value by ensuring and consolidating our compliance system and corporate governance furthermore with various stakeholders in view, we would like to ask for your continued support and warm guidance.

Masaaki Kimura
President & Chief Executive Officer