Ntt Inc · TSE:9432
Ntt — Nippon Telegraph and Telephone — FY2006 Earnings Presentation
54 slides from Ntt's earnings presentation, May 12, 2006
Slide 1: Business Operation Policy
-6- 2. BUSINESS OPERATION POLICY (1) Basic Business Operation Policy The accelerated growth of the information and communications market has spurred a greater diversity and complexity in customer demands. In order to meet such customer needs, NTT will undertake to achieve the following three managem
Slide 2: Financial Results for the Year Ended March 31, 2006
Financial Results for the Year Ended March 31, 2006 May 12, 2006 Copyright(c) 2006 Nippon Telegraph and Telephone Corporation
Slide 3: Disclaimer Information
The forward-looking statements and projected figures on the future performance of NTT contained herein or referred to in this presentation are based on the judgments, evaluations, recognition of facts, and formulation of plans by the current management of NTT based on the information at its disposal
Slide 4: Point of Consolidated Financial Results
[Revenues and expenses] The amount of decline in revenues was reduced. FY2004: ¥11,095.5 billion FY2005: ¥10,805.9 billion FY2006: ¥10,741.1 billion ¥ (289.7) billion ¥ (64.7) billion The amount of decline in operating income was also reduced. FY2004: ¥ 1,560.3 billion FY2005: ¥ 1,211.2 billion FY20
Slide 5: Point of Consolidated Financial Results Forecasts
- 3 - Point of Consolidated Financial Results Forecasts [Revenues and expenses] Increase in both revenues and operating income is expected. -Pursue efforts to restore total revenue growth, covering the decline in voice related service revenues by increasing IP related revenue, systems integration re
Slide 6: Shareholder Returns in FY2007
Shareholder Returns in FY2007 - - Dividends - the principal vehicle for shareholder returns now that share “overhang” is resolved [FY2006] [FY2007 (Expected)] Annual Dividend ¥6,000 ¥8,000 *1 Pressure on supply resulting from Government ownership of shares (Expected to be implemented beginning with
Slide 7: Details of Consolidated Financial Results
Operating Revenues Operating Expenses Operating Income - 5 - 10,805.9 10 , 741.1 180.5 285.7 9 , 594.7 9 , 550.4 123.7 30.8 47.7 1,211.2 1,190.7 40.5 89.5 Details of Consolidated Financial Results Copyright(c) 2006 Nippon Telegraph and Telephone Corporation IP/packet communications services revenues
Slide 8: Consolidated and Main Subsidiaries' Financial Results
NTT East (JPN-GAAP) NTT West (JPN-GAAP) NTT Com (JPN-GAAP) NTT Consolidated (US-GAAP) Net Income Income before Income Taxes Operating Revenues Operating Income NTT DATA (JPN-GAAP) NTT DoCoMo (US-GAAP) NTT (Holdings) (JPN-GAAP) Operating Expenses *1 Change year-on-year (% change) Change year-on-year
Slide 9: Contributing Factors in Consolidated Operating Income by Segment
0.0 - 7 - Contributing Factors in Consolidated Operating Income by segment 1,211.2 1,190.7 FY2005 Long distance and international communications business Regional communications business Other business Elimination of intersegment 48.5 32.3 3.6 33.6 FY2006 73.9 1,100.0 1,000.0 1,200.0 1,300.0 (Billio
Slide 10: Details of Consolidated Financial Results Forecasts
Operating Revenues Operating Expenses Operating Income Details of Consolidated Financial Results Forecasts - 8 - (Billions of yen) 10,741.1 10,800.0 250.7 System integration revenues, sales of telecommunications equipment and other revenues 388.5 IP/packet communications services revenues FY2006 FY2
Slide 11: Consolidated and Main Subsidiaries' Financial Results Forecasts
Net Income Income before Income Taxes Operating Revenues Operating Income Operating Expenses Change year-on-year (% change) Change year-on-year (% change) Change year-on-year (% change) Change year-on-year (% change) Change year-on-year (% change) NTT East (JPN-GAAP) NTT West (JPN-GAAP) NTT Com (JPN
Slide 12: Number of Subscribers for FLET'S Services and Telephone Subscriber Lines
B FLET’S FLET’S ADSL Optical IP Telephone FLET’S services *1 *2 Telephone Subscriber Line INS-NET Total *3 *4 Telephone Subscriber Lines & INS-NET 1,665 3,419 6,119 2,558 5,208 5,682 5,582 4,089 2,000 4,000 6,000 8,000 10,000 12,000 2003/3 2004/3 2005/3 2006/3 2007/3E Number of Subscribers for FLET’
Slide 13: ARPU of Telephone and INS-NET Subscriber Line
INS-NET East West Telephone Subscriber Line East West FY2006 4Q * FY2006 1Q * FY2006 2Q * FY2006 3Q * ARPU of Telephone and INS-NET Subscriber Line - 11 - 6,000 5,600 5,400 FY2005 1Q FY2005 2Q FY2005 3Q FY2005 4Q (Note) Please see page “R11” regarding the calculation of ARPU. * From the three months
Slide 14: Employee, Interest-bearing Debt and Capital Investment
Employees Interest-bearing Debt Capital Investment 1,000 1,500 2,000 Employee, Interest-bearing Debt and Capital Investment - 12 - (Persons) (Billions of yen) (Note) The numbers of employees at March 31, 2005, 2006 and 2007E do not include the number of employees who retired / are retiring at that d
Slide 15: Managerial Indices
EBITDA Margin Operating Free Cash Flow ROCE FY2005 FY2006 FY2007 E 32.8% 32.1% ¥1,482.2 billion ¥1,250.7 billion 5.8% 5.8% Notes: Details 1. EBITDA Margin = (Operating Income + Depreciation and amortization expenses and loss on disposal)/Operating Revenues 3. ROCE = Operating Income × (1 - Statutory
Slide 16: References
References 1. Consolidated Financial Summary (U.S. GAAP) 2. Details of Consolidated Operating Revenues 3. Details of Consolidated Operating Expenses 4. Details of Business Segments 5. Summary of Consolidated Financial Results Forecasts 6. Number of Subscribers for Cellular and i-mode Services 7. ARP
Slide 17: Consolidated Financial Summary (U.S. GAAP)
FY2006 Increase (Decrease) FY2005 Consolidated Financial Summary (U.S. GAAP) - R1 - 10,805.9 (64.7) 10,741.1 9,594.7 (44.2) 9,550.4 1,211.2 (20.5) 1,190.7 512.1 115.2 (396.9) 1,723.3 1,305.9 (417.4) 710.2 498.7 (211.5) 713.9 542.2 (171.7) 290.2 246.4 (43.8) (9.0) (18.6) (9.6) Operating Revenues Oper
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Slide 30: Details of Consolidated Operating Revenues
Details of Consolidated Operating Revenues - R2 - Fixed voice related services 3,578.1 3,382.7 1,000 2,000 3,000 4,000 5,000 FY2005 FY2006 Mobile voice related services 3,216.1 3,125.8 1,000 2,000 3,000 4,000 5,000 FY2005 FY2006 IP / packet communications services 1,772.7 1,953.3 1,000 2,000 3,000 4
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Slide 43: Details of Consolidated Operating Expenses
Details of Consolidated Operating Expenses - R3 - Personnel expenses 1,977.9 2,025.6 1,000 2,000 3,000 4,000 5,000 6,000 FY2005 FY2006 Expenses for purchase of goods and services 4,926.7 5,050.5 1,000 2,000 3,000 4,000 5,000 6,000 FY2005 FY2006 Depreciation and amortization expenses 2,141.7 2,110.9
Slide 44: Details of Business Segments
Other Business Data communications business Elimination of intersegment Consolidated Total Mobile communications business Long distance and international communications business Regional communications business - In the regional communications business segment, operating revenues declined ¥122.3 bil
Slide 45: Summary of Consolidated Financial Results Forecasts
FY2007 E Increase (Decrease) FY2006 - R5 - Summary of Consolidated Financial Results Forecasts (Billions of yen) 0.3% (10.0%) 0.8% 0.5% 0.5% (130.9) 1,305.9 1,175.0 Income before Income Taxes 1.3 498.7 500.0 Net Income 9.3 1,190.7 1,200.0 Operating Income 49.6 9,550.4 9,600.0 Operating Expenses 58.9
Slide 46: Number of Subscribers for Cellular and i-mode Services
FOMA Cellular total * i – mode total FOMA Cellular i-mode services Number of Subscribers for Cellular and i-mode services - R6 - 8,456 2,497 11,963 2,319 11,537 2,715 1,756 2,180 3,137 11,561 2,339 - 8,356 2,694 - 1,540 2,944 3,319 5,602 (Thousands) (Thousands) [Change from the previous year] [Chang
Slide 47: ARPU of Cellular (FOMA + mova)
FOMA+mova FOMA mova 5,000 6,000 7,000 8,000 9,000 10,000 11,000 FOMA+mova FOMA mova ARPU of Cellular (FOMA + mova) - R7 - (Note2) Please see page “R11” regarding the calculation of ARPU. (Yen) 6,920 6,720 7,050 6,940 6,920 7,170 7,340 7,400 8,650 8,260 9,050 9,090 9,280 9,650 9,890 10,240 5,910 5,54
Slide 48: Details of Consolidated Balance Sheet
Details of Consolidated Balance Sheet - R8 - Assets ¥ 18,886.2 billion Assets ¥19,098.6 billion Liabilities ¥ 10,600.7 billion Assets ¥(212.4) billion Tangible fixed assets …¥10,480.6 billion Liabilities ¥10,253.5 billion Interest-bearing debt …¥5,296.2 billion Interest-bearing debt …¥5,525.8 billio
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Slide 52: Details of Consolidated Cash Flows
Details of Consolidated Cash Flows - R9 - (1,112.0) 1,382.0 2,829.8 (1,768.4) 1,431.4 1,410.8 (1,139.9) 3,242.9 (2,077.3) 1,382.0 (3,000) (2,000) (1,000) 1,000 2,000 3,000 4,000 Cash and cash equivalents at beginning of the year CFs from operating activities CFs from investing activities CFs from fi
Slide 53: Reconciliation of Managerial Indices
EBITDA Margin FY2005 FY2006 FY2005 Operating Free Cash Flow ROCE FY2007 E FY2006 Reconciliation of Managerial Indices Indices Items (Billions of yen) * “Capital investment” is the accrual-based amount required for acquisition of property, plant and equipment, and intangibles. The differences from th
Slide 54: Calculation of ARPU
Calculation of ARPU - R11 - Average monthly revenue per unit, or ARPU, is used to measure average monthly operating revenues attributable to designated services on a per user basis. In the case of our fixed line business, ARPU is calculated by dividing revenue items in the operating revenues of our
Nippon Telegraph and Telephone — FY2006 Earnings Presentation on 6ix