Typography

Japanese telecommunications company NTT DOCOMO announced that, further to its announcement on April 28, 2016 regarding its intention of delisting from the New York Stock Exchange (NYSE), the company notified the NYSE on March 19, 2018 that it will apply for the voluntary delisting of its American Depository Shares (ADSs) from the NYSE.

An American depositary share is a U.S. dollar-denominated equity share of a foreign-based company available for purchase on an American stock exchange. American Depositary Shares are issued by depository banks in the U.S. under agreement with the issuing foreign company.

NTT DOCOMO listed ADSs on the NYSE in March 2002 mainly to boost the liquidity of its shares by giving more opportunities to foreign investors and to expand its avenues for procuring funds.

Since then, the company has made efforts to enhance disclosures for shareholders and investors with the goal of deepening their understanding of the company, in addition to complying with the disclosure requirements of U.S. securities laws and regulations, providing consolidated financial statements in accordance with accounting principles generally accepted in the United States.

Meanwhile, the external environment has significantly changed as indicated by the increases in trading volume of Japanese stocks through stock exchanges in Japan by overseas investors due to the internationalization of the Japanese financial and capital markets, as well as the narrowing of the gap between U.S. and Japanese disclosure standards with respect to financial reporting due to a series of amendments to Japanese laws and regulations and accounting standards.

In this environment, the company believes the significance to continue listing on the NYSE has faded, taking into account the fact that the trading volume of its ADSs on the NYSE accounts for only a small fraction of the total trading volume of the Company's shares. Therefore, the company has decided to apply for voluntary delisting of its ADSs from the NYSE and for termination of registration of its ADSs with the U.S. Securities and Exchange Commission (SEC) under the U.S. Securities Exchange Act of 1934.

Even after delisting its ADSs from the NYSE, the company intends to maintain its American Depositary Receipt program in the United States and anticipates that its ADSs will continue to be traded in the United States on the over-the-counter market.

While the company's reporting obligations under the Exchange Act will be terminated, the company will continue to disclose financial statements and other information, in English, on the company's website to ensure that its overseas shareholders and investors will continue to have appropriate information about the company.

In addition, the company is considering preparing and disclosing its financial statements in accordance with International Financial Reporting Standards (IFRS) beginning with the three months ending June 30, 2018.