Earnings release for the FY2003 ended March 31, 2004 - 4

Fiscal 2004 financial forecasts

For fiscal 2004, consolidated operating revenue is expected to reach 1,531 billion yen, and ordinary income and net income are foreseen to amount to 127 billion yen and 110 billion yen, respectively. As fiscal 2003 contained half a year of Japan Telecom's results, consolidated operating revenue and ordinary income for fiscal 2004 is expected to mark a significant decline versus the prior year. If compared on a proforma*basis, however, this forecast is based on an assumption of slight revenue growth in the mobile business, and on incremental costs associated with increased migration to 3G and the costs of maintaining two networks. As a result of the above, margins are not expected to recover immediately from the levels seen in the second half of fiscal 2003.

Vodafone K.K. is in the midst of a transition phase to 3G technology. The competitive landscape is intensifying as the market shifts to a 3G focus and prepares for mobile number portability, which is expected in 2006. A range of initiatives has been put in place to transform Vodafone K.K.'s performance. Vodafone K.K. will further improve its 3G offering as it actively expands indoor and underground coverage and rolls out a wider range of appealing handsets before the end of 2004. Further efforts to expand product offerings, to improve distribution for better customer service, to grow share in the corporate/business market, and to enhance cost competitiveness by leveraging the scale and scope of Vodafone's global footprint and reviewing operational processes are key areas of focus to improve Vodafone K.K.'s competitive position for fiscal 2004 and beyond.

[Notes]
  • Excludes Japan Telecom results.

Consolidated forecasts for fiscal 2004

(billion yen)
  FY04 Forecast
Operating revenue 1,531
Ordinary income 127
Net income (loss) 110
[Notes]
  • Financial summary attached