Ntt Inc · TSE:9432

Ntt — Investor Presentation (July 2025)

128 slides from Ntt's investor presentation, July 2025

Slide 2: Disclaimer
This document is a translation of the Japanese original. The Japanese original is authoritative. The forward-looking statements and projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, pro
Slide 3: Contents
Contents Overview of FY2024 Consolidated Results R&D FY2024 Consolidated Results Highlights 4 IOWN initiative 69 Contributing Factors by Segment for FY2024 5 IOWN From Vision to Reality - and Beyond 70 FY2025 Results Forecast IOWN2.0 - Optical Based Computing 71 FY2025 Forecast Summary 7 Future path
Slide 5: FY2024 Consolidated Results Highlights
FY2024 Consolidated Results Highlights ◼ Operating Revenues increased, Operating Profit and Profit decreased ◼ Operating Revenues reached new record-high levels Status of Consolidated Results ⚫ Operating Revenues: ¥13,704.7B < +¥330.2B [+2.5%] year-on-year> ⚫ EBITDA(1): ¥3,239.3B < ¥(178.9)B [(5.2)%
Slide 6: Contributing Factors by Segment for FY2024
Contributing Factors by Segment for FY2024 Operating Revenues <Year-on-year:＋330.2> (Billions of yen) Integrated ICT Regional Global Solutions Others Elimination of Business Segment Communications Business Segment (Real Estate, Inter-Segment Business Segment Energy and Others) Transactions 37.0 13,7
Slide 8: FY2025 Forecast Summary
FY2025 Forecast Summary ◼ Operating Revenues, EBITDA, Operating Profit and Profit will all increase year-over-year Consolidated Revenues and Income Plan FY2024 Results FY2025 Forecast Year-on-Year Operating Revenues ¥13,704.7B ¥14,190.0B +¥485.3B EBITDA(1) ¥3,239.3B ¥3,390.0B +¥150.7B Operating Prof
Slide 9: FY2025 Forecast Summary by Segment
FY2025 Forecast Summary by Segment Operating Revenues <Year-on-year: +485.3> (Billions of yen) Integrated ICT Regional Global Solutions Others Elimination of Business Segment Communications Business Segment (Real Estate, Inter-Segment Business Segment Energy and Others) Transactions 14,190.0 291.3 5
Slide 10: Initiatives for Medium-Term Profit Growth
Initiatives for Medium-Term Profit Growth ◼ Since launching the Medium-Term Management Strategy, we have continued to actively invest (capital investment + equity investment) in growth areas to increase future profits. ◼ We aim to achieve our medium-term financial targets by ensuring the realization
Slide 12: FY2024 Results overview
FY2024 Results overview Revenue increased, but profit decreased due to increased cost for customer base and communication quality. FY2023 FY2024 Year-on-year FY2024 IFRS (Billions of yen) full-year Full year Full year Changes % guidance Operating Revenues 6,140.0 6,213.1 +73.1 +1.2% 6,244 Operating
Slide 13: Changes in operating revenues
Changes in operating revenues Sales increased driven by organic growth in Smart Life and Enterprise. (Billions of yen) Growth Area +210.3 Consumer Communications -70.3 FY24 Specific Factors -52.1 Smart Life Enterprise Decline in mobile Enterprise Smart Life communications PSTN Irregular factor servi
Slide 14: Changes in operating profit
Changes in operating profit While profits increased in growth areas, costs were concentrated in priority initiatives. Momentum improved with MNP becoming positive in the second half, ARPU trending upward, and improved communication service quality. (Billions of yen) Growth Area +57.7 Consumer Commun
Slide 15: FY2025 Guidance
FY2025 Guidance Although sales increased due to the acceleration of organic growth, Profit declined due to continuation of upfront investments for future growth and measures to reduce the burden in subsequent years. FY2024 FY2025 Year-on-year IFRS (Billions of yen) Full year Full year Changes % Oper
Slide 16: Operating Revenues Forecast
Operating Revenues Forecast Revenues are expected to increase, driven by growth in finance of Smart Life and Enterprise solutions. (Billions of yen) Growth Areas +208.7 Consumer Communications -51.5 FY25 Specific Factors -34.3 Smart Life Enterprise Decline in mobile Enterprise Organic Organic commun
Slide 17: Operating Profit Forecast
Operating Profit Forecast Offset the decline in Consumer Communications profits by strong growth in Growth Areas. Striving to further improve momentum in FY25. (Billions of yen) Growth Areas +61.6 Consumer Communications -55.1 FY25 Specific Factors -61.0 Smart Life Enterprise Decline in mobile Enter
Slide 18: Toward Medium-Term Growth
Toward Medium-Term Growth FY25 positioned as a year of transformation for future growth, leading to significant profit expansion in FY26 and beyond. Transformation agenda and YOY profit change (conceptual) Operating profit outlook FY25 FY26 FY27 Marketing strategy reform Mobile communications servic
Slide 19: Consumer Business Strategy
Consumer Business Strategy Expand customer base and revenues by creating value that can be chosen by customers. Marketing strategy reform Value possessed by Create new value that can be Value uniquely provided various partners chosen by customers by DOCOMO Appeal value using partner x DOCOMO channel
Slide 20: Aims of DOCOMO MAX
<Consumer> Aims of “DOCOMO MAX” Deliver value in a wide range of genres in addition to sports, e-commerce and video distributions services, thereby expanding the customer base and ARPU. Planned for launch on June 5 Future evolution Expand the support from the broad user base of Expand the scope of v
Slide 21: Customer base and ARPU
<Consumer> Customer base and ARPU Accelerate the MNP plus trend in the 2nd half toward FY25. ARPU bottomed out in FY24 and reversed. YOY changes in individual user handset net adds Mobile communication ARPU MNP positive FY23 full year FY24 full year FY25 full year JPY 3,980 JPY 3,940 JPY 3,970 for 2
Slide 22: Consumer Finance
<Consumer> Finance Grow overall finance revenues, including investment, loan services, etc., by increasing the membership and transaction amount of “dCARD PLATINUM”. Finance revenues Growth of “dCARD PLATINUM” members and transaction amount ■ Average card usage of PLATINUM members*1 (Billions of yen
Slide 23: Consumer Marketing Solutions
<Consumer> Marketing Solutions Drive revenue growth primarily through marketing DX support, providing value to entire value chain through collaboration with INTAGE Inc. Marketing Solution Revenue Expansion of marketing DX support based on purchase data (Billions of yen) Value provided to the entire
Slide 24: Consumer Entertainment
<Consumer> Entertainment Increase docomo fans through IP development such as original content, and increase entertainment revenue by monetizing distribution and box office Entertainment Revenue Initiatives to Expand Earnings IP Development (Casting, IP Development/Nurturing/Producing) (Billions of y
Slide 25: Medium-Term Approach toward Growth of Enterprise Business
<Enterprise> Medium-Term Approach toward Growth of Enterprise Business Accelerate growth of solutions focusing on four areas. FY24 Solutions for large enterprises recorded double-digit growth, successfully capturing DX demand. Enterprise business revenues Mid- and small-sized businesses underperform
Slide 26: Enterprise IoT / Digital BPO
<Enterprise> IoT / Digital BPO Strengthen integrated service offerings in priority areas mainly targeting large companies. IoT Digital BPO Started accepting applications for Started offering digital BPO ® solutions in full scale local 5G service Type D from March 25, 2025. from April 28, 2025. Reali
Slide 27: Enterprise Regional and SME DX
<Enterprise> Regional and SME DX Strengthen regional and SME customer base by deepening mobile x solutions Regional Sector-specific solutions Regional docomo business RINK and SME and SME Hospital DX Planned for launch in September 2025: Security governance function (patent acquired*) Enhance effici
Slide 28: FY24 Actions for Communication Quality Improvement
<Network> FY24 Actions for Communication Quality Improvement Focused on 5G base station rollout mainly in nationwide urban centers and along key railway routes, while implementing countermeasures for events, and steadily improved the quality experienced by customers. Increased 5G base stations acros
Slide 29: FY24 Actions for Communication Quality Improvement
<Network> FY24 Actions for Communication Quality Improvement Accelerate 5G rollout using Sub6 and 4G spectrum. For further improvement of customer experience by the utilization of latest equipment and functions. FY24 FY25 Construct a network that continues to be chosen by customers Deliver comfortab
Slide 30: Improving efficiency through network structural reform
<Network> Improving efficiency through network structural reform Engage in structural reforms to accelerate quality measures and reduce costs Quality Measures Cost Measures Number of base stations built and results Voices of dissatisfaction network-related investment Centered on urban areas 5G Base
Slide 31: Targets for each indicator toward FY2027
Targets for each indicator toward FY2027 FY23 FY24 FY27 Consumer business revenues ¥4,476.1 billion ¥4,489 billion Up ¥350 billion or more Customer base 34.7% 34.7% 35% or higher (Retail user market share*) Retail user mobile ARPU ¥4,090 ¥4,070 ¥4,200 Incl.) Entertainment revenues ¥221.5billion ¥230
Slide 33: Results for the Fiscal Year Ended March 31, 2025
Results for the Fiscal Year Ended March 31, 2025 (Summary of YoY Changes) • Net sales and profits both increased year on year. • Net sales and profit exceeded the forecasts. (Unit: billions of yen) Differences from FYE3/2024 FYE3/2025 YoY YoY FYE3/2025 Forecasts Results Results (Amount) (Rate) Forec
Slide 34: New Orders Received YoY Changes
New Orders Received｜YoY Changes New orders received in the entire Group increased by 170.7 billion yen year on year, driven by growth in both the Japan and Overseas segments. The effects of exchange rates contributed to the increase in the Overseas Segment. +75.2 (Unit: billions of yen) -5.2 +170.7
Slide 35: Net Sales YoY Changes
Net Sales ｜ YoY Changes Net sales in the entire Group increased by 271.3 billion yen year on year, driven by growth in both the Japan and Overseas segments. The effects of exchange rates contributed to the increase in the Overseas Segment. (Unit: billions of yen) +96.3 ▲1.3 +271.3 +143.7 4,638.7 +20
Slide 36: Operating Profit YoY Changes
Operating Profit | YoY Changes Operating profit increased in all the 3 businesses in the Japan Segment, but declined in the Overseas Segment. In the entire Group, operating profit increased by 14.3 billion yen. -15.5 (Unit: billions of yen) -12.1 +34.0 -20.8 +5.2 -4.1 +14.3 323.9 336.0 Public & Soci
Slide 37: Breakdown of Japan Segment Results
Breakdown of Japan Segment Results All of new orders received, net sales, and operating profit increased year on year in the Japan Segment, exceeding the forecasts. • New orders received in the Public & Social Infrastructure business decreased year on year due to a drop in large-scale projects recor
Slide 38: Breakdown of Overseas Segment Results
Breakdown of Overseas Segment Results (North America, EMEAL , APAC) Net sales and profits both decreased in the regional units (North America, EMEAL, APAC) if the effects of exchange rates are excluded. • New orders received increased year on year in North America as large-scale projects were acquir
Slide 39: Breakdown of Overseas Segment Results (GTSS)
Breakdown of Overseas Segment Results (GTSS) Net sales and profits both increased in the GTSS(Global Technology and Solution Services) unit. • New orders received declined year on year due to a drop in large-scale orders in the Data Center business that were recorded in the previous fiscal year. Yet
Slide 40: Status of the Data Center Business
Status of the Data Center Business ・The investment amounted to $2,706M (¥413.0B), up $6M (¥22.5B) from the previous year. But the investment was lower than the forecast, with some of the spending being deferred. ・Demand remained strong, with order backlog of $14,974M (¥2,239.1B), up $2,721M (¥384.0B
Slide 41: Forecasts for the Fiscal Year Ending March 31, 2026
Forecasts for the Fiscal Year Ending March 31, 2026 Expected to achieve the MMP targets (consolidated net sales of 4.7 trillion yen, consolidated operating profit margin(*1) of 10%, overseas EBITA ratio(*1) of 10%) ➢ Net sales are forecast to rise by over 6% year on year on the back of an expected b
Slide 42: Breakdown of Forecasts FY2026 (Japan)
[Ref.] Breakdown of Forecasts for the Fiscal Year Ending March 31, 2026 (Japan) • New orders received, net sales, and operating profit are expected to rise year on year. • Net sales are expected to grow by 1.3% year on year, but by 4.0% if the effects of the change in accounting treatment(*1) in the
Slide 43: Breakdown of Forecasts FY2026 (Overseas)
[Ref.] Breakdown of Forecasts for the Fiscal Year Ending March 31, 2026 (Overseas) (Unit: billions of yen) • Net sales and profits are expected to rise in all units on the back of an expected expansion of each unit and utilization of REITs in the Data Center business. FYE3/2025 FYE3/2026 YoY YoY Res
Slide 44: Data Center Business as a Growth Engine
Data Center Business as a Growth Engine NTT has committed to invest at least JPY1.5 trillion into data centers until the end of FY2027 as one of the pillars of our new medium-term strategy, aiming to double EBITDA during this period by leveraging our proven operational and technological capabilities
Slide 45: Expansion and Upgrade of Data Centers
（2023年5月公表）新中期経営戦略より Expansion and Upgrade of Data Centers ◼ NTT will further expand the world’s third-largest(1) data center infrastructure, and implement upgrades through the introduction of IOWN technology (will make investments of at least ~¥1.5tn/5 years(2)) ◼ NTT aims to achieve carbon neutr
Slide 46: NTT's Position In The Global Market
NTT’s Position In The Global Market Global Data Center Colocation Revenue Share1 Global IDC MarketScape Vendor Assessment 2 Operators 1 Equinix 2 Digital Realty 12% 3 NTT GDC 4 Digital Bridge 9% 5 CyrusOne Total 6% 6 KDDI $51.8B 3% 7 American Tower 3% 8 Cyxtera 9 Flexential 10 QTS Others NTT GDC is
Slide 48: FY2024 Results and FY2025 Forecast (NTT East)
FY2024 Financial Results and FY2025 Financial Results Forecast (NTT East） (Units: Billions of yen, except Hikari Subscriptions) IFRS FY2023 FY2024 FY2025 (Consolidated) Results Results Year-over-year Forecast Year-over-year 1,710.5 (4.5) Operating Revenues 1,665.4 1,670.0 ＋4.6 〈1,655.9※2〉〈＋9.5〉 298
Slide 49: FY2024 Results and FY2025 Forecast (NTT West)
FY2024 Financial Results and FY2025 Financial Results Forecast (NTT West）（Billions of yen） IFRS FY2023 FY2024 FY2025 Compared to (Consolidated) Results Results Year-over-year Forecast Year-over-year Forecast Operating Revenues 1,497.0 1,468.6 (28.3) +23.6 1,472.0 +3.4 Operating Profit 138.9 81.8 (5
Slide 50: Initiatives to Restore Business Results
Initiatives to Restore Business Results (Billions of yen) 437.7 + Expansion of new businesses, 420.5 α further re-evaluation of fees, etc. Streamlining Shifting to profit Re-evaluation of personnel and Non-Core 3 business portfolio Operating Profit Assets growth with FY2024 as the + FY2027 +¥45.0 bi
Slide 51: Direction of Each Business Portfolio
Direction of Each Business Portfolio Market Growth Investments/capital increases Strengthening in response to market expansion Growth/new business:¥300.0 billion Enterprise Business: ¥750.0 billion New Business (Subsidiary) • Solving local social issues SI,etc. • Developing communication Networks in
Slide 52: Evolving and Expanding the Enterprise Network Business
Evolving and Expanding the Enterprise Network Business Making the most of existing optical networks, we will leverage our strengths in regional connections and engineering to expand our network businesses that support the digitalization of society (targeting a ¥25.0 billion increase in profit throug
Slide 53: Current Status of Fiber Optic Services and Future Targets
Current Status of Fiber Optic Services and Future Targets • By strengthening sales and improving the pricing strategies for FLET’s Hikari Cross and the apartment building market business, we plan to expand our market share and improve our profitability, with a goal of generating profit of ¥40.0 bill
Slide 54: Initiatives to Increase Hikari Cross Sales
Initiatives to Increase Hikari Cross Sales （Responding to Demand for Faster Fiber Optic Speeds） We will expand the Hikari base with improved support for high-speed demand by promoting transitions to Hikari Cross, which is expected to increase ARPU, with free installations and other promotional measu
Slide 55: Initiatives in the Apartment Market
Initiatives in the Apartment Market • We will strengthen collaborations with developers and management companies to launch comprehensive apartment building-wide services that meet market needs and have high operating efficiency • We will shift to a business model in which we can maintain medium- and
Slide 56: Reforming Telecommunications Operations through DX and AI
Reforming Telecommunications Operations through DX and AI • We will fully leverage DX and AI to redesign personnel-heavy front and back-office support services ⇒ Enhancing efficiency and transitioning to “zero-touch (automated)” • We are aiming to improve profit by ¥18.0 billion through FY2027 by re
Slide 57: Reforming Telecommunications Operations through DX and AI
Reforming Telecommunications Operations through DX and AI • We will upgrade on-site operations and other manual tasks through the use of AI diagnostic imaging and other technologies • We will fully leverage DX and AI to transition routine repetitive tasks in the operation of NW equipment to “zero-to
Slide 58: Exit from Unprofitable Services
Exit from Unprofitable Services We will aim to improve profit by ¥13.5 billion in FY2027 through the termination of consumer line-related businesses and initiatives to promote the rapid shift to digital services Schedule Profit Improvement Effects (Billions of yen) （FY） 2024 2025 2026 2027 +13.5 ▲Ju
Slide 59: Migration to Alternative PSTN Services
Migration to Alternative PSTN Services • The ¥350.0 billion PSTN service revenue base will be maintained to the fullest extent possible by encouraging migration and improving pricing strategies at various contact opportunities with customers • Migration to alternative services (optical and wireless
Slide 60: Further Expansion of Growth Businesses
Further Expansion of Growth Businesses （Solmare Expansion） Solmare Revenue Expansion Comic Production Product Sales Licensing Development Comprehensive Implementation Publications Drama Anime/Movies Merchandise New Initiatives from FY2025 onwards Domestic Business Expansion Global Expansion Revenue
Slide 62: Sustainability Charter
Sustainability Charter • Establishment of Sustainability Charter in November 2021 • Three themes and nine challenges are set. Key indicators (carbon neutrality, percentage of new female managers, employee engagement rate, customer engagement) are reflected in executive compensation. Sustainability C
Slide 63: Targets of NTT Green Innovation toward 2040
Targets of “NTT Green Innovation toward 2040” ⚫ FY2030 Reduction of NTT Group’s greenhouse gas emissions by 80% (compared to FY2013) Carbon neutrality for the mobile (NTT DOCOMO) and data center businesses ⚫ FY2040 Carbon neutrality as NTT Group Energies Source: Created from “NTT Green Innovation to
Slide 64: Outlook of NTT Group's Energy Consumption
Outlook of NTT Group’s Energy Consumption ⚫ BY replacing legacy facilities with IOWN, energy consumption will be reduced by approximately half by FY2040 ⚫ Renewable energy will be adopted for the remaining half to achieve carbon neutrality Outcome Approx. doubled (compared to FY2013) Energy Savings
Slide 65: Towards Achieving Net Zero in 2040
Towards Achieving Net Zero in 2040 ◼ With 2023 preliminary results for scope 1 and 2 emissions being 2.42 million tons, our emissions are reducing faster than planned and we are making steady progress towards carbon neutral in 2040 ◼ By encouraging and supporting suppliers with their emissions reduc
Slide 66: Current Status and Future of Renewable Energy Business
Current Status and Future of Renewable Energy Business ◼ As a result of acquiring Green Power Investment (GPI), a leading domestic renewable energy company, in 2023, NTT added wind power generation to its solar power generation capabilities, and anticipates achieving its renewal energy acquisition f
Slide 67: New Green Transformation Initiatives (GX)
New Green Transformation Initiatives (GX) ◼ Launch the new solutions brand to strengthen initiatives in the GX field Improving power generation businesses through integrated management, analysis and visualization of Specific Initiatives: power generation and financial data Integrated Data Management
Slide 68: Reinforcement of Corporate Governance
Reinforcement of Corporate Governance June 2020 • Introduced an executive officers system* (separation of the functions of managerial decision-making/supervision and business execution) • Increased the ratio of outside directors from 27% to 50% *Introduced an executive officers system into key group
Slide 70: IOWN initiative
IOWN initiative ◼ In order to utilize all types of information beyond the limits of conventional infrastructures, photonics technologies such as photonics-electronics convergence devices will be utilized everywhere from networks to terminals to realize a network and information processing infrastruc
Slide 71: IOWN From Vision to Reality - and Beyond
IOWN From Vision to Reality - and Beyond 2025 2026 2028 2032 IOWN 2.0 IOWN 3.0 IOWN 4.0 Power Power Consumption Consumption 1/8 ※ 1/100 ※ Realization with Photonics- Commercialization of Servers Electronics Convergence Devices Equipped with Photonics- Optical Communication Toward Further Advancement
Slide 72: IOWN2.0 - Optical Based Computing
IOWN2.0 - Optical Based Computing ◼ Developing a high-capacity, low-power consumption compact optical processing engine that will open up new possibilities in the world of computing ◼ Connecting xPU and memory optically instead of electrically to achieve ultra-low-power-computing ◼ In process of con
Slide 73: Future path for IOWN
Future path for IOWN Power efficiency Power efficiency APN 100-times * 100-times * Server 13-times 8-times 1.0-times 1.0-times Up to IOWN IOWN IOWN IOWN Up to IOWN IOWN IOWN 最終 IOWN now 1.0 2.0 3.0 4.0 now 1.0 2.0 3.0 目標 4.0 * Power efficiency for the entire photonics-applied area, including the APN
Slide 74: Achieved the World's First International IOWN APN Connection
Achieved the World’s First International IOWN APN Connection ◼ Adding to existing IOWN APN connections between data centers within Japan and overseas, in August 2024, we achieved the world’s first international IOWN APN connection, connecting Japan and Taiwan across a distance of approximately 3,000
Slide 75: NTT's LLM tsuzumi
NTT’s LLM ◼ Since commercialization in March 2024, customers from a variety of fields have indicated interest, with over 600 proposals for implementation ◼ Going forward, NTT will collaborate with its partners to accelerate the expansion of tsuzumi both domestically and overseas Expanding Further th
Slide 76: High Level of Cost Performance
High Level of Cost Performance Achieves high level of functionality while reducing hardware costs necessary for the implementation 生成AI利用 and operation of generative AI Main Cost Components AI’s Customizability Needed for Generative AI (Knowledge Upgrades, etc.) Use Operation GPU Cost Cost (Operator
Slide 77: Establish NTT AI-CIX to Promote Linked AI
Establish “NTT AI-CIX” to Promote Linked AI ◼ In August 2024, NTT established “NTT AI-CIX* Corporation (NTT AI-CIX)” to promote cross-business/cross- industry-linked AI services * AI-Cross Industry transformation ◼ NTT aims to achieve the optimization of the entire supply chain through the use of cr
Slide 79: Shareholder Returns
Shareholder Returns Dividends ◼ Dividends forecast for FY2025 ・Annual dividends per share are forecasted to be ¥5.3 (an increase of ¥0.1 from FY2024) → Dividends are expected to increase for the 15th consecutive year Share Buybacks ◼ Share Buybacks in order to improve capital efficiency and enhance
Slide 80: Record of Share Buybacks
Record of Share Buybacks Amount of Share Buybacks (Billions of yen) Up to 200.0* * On May 9, 2025, the Board of Directors of NTT resolved to buy back shares in an amount up to ¥200.0 billion. Buyback Period: May 12, 2025 to March 31, 2026. © NTT, Inc. 2025 79
Slide 81: Changes in Dividend
Changes in Dividend （Yen） 5.3 5.0 85% 4.0 Dividend per share 65% Payout Ratio 3.0 45% 2.0 43.5% 42.1% 40.9% 41.1% 42.3% 37.2% 38.0% 33.4% 34.9% 34.5% 33.8% 31.2% 38.2% 31.4% 30.7% 32.9% 32.3% 25% 1.0 27.5% 0.5 17.1% 23.0% 19.5% 12.3% 13.0% 0.0 5% • FY2003-FY2017, financial statements were prepared i
Slide 82: Status of Shareholder Count
Status of Shareholder Count Percentage of Voting Shareholder Count Rights Total Shareholder Count by Age Individual invertors also hold a Approximately 3x after the Diversification of shareholder composition larger share of voting rights.*3 stock split, setting a new has also progressed.*1 record hi
Slide 84: NTT Group Formation
NTT Group Formation Operating revenue：¥6,213.1 billion Integrated ICT Operating income ：¥1,020.5 billion Business No. of employees ： 51,700 No. of subsidiaries： 130 Operating revenue：¥3,112.3 billion Regional Operating income ：¥ 295.5 billion Communications Business No. of employees ： 64,550 NTT, In
Slide 85: Trend in Consolidated Financial Results
Trend in Consolidated Financial Results 14.2 13.4 13.7 13.1 ■ Operating 12.2 11.8 11.9 11.9 11.9 Revenues 11.4 （Trillion yen） 1.9 1.8 1.8 1.8 ■ Operating 1.6 1.7 1.7 1.6 Income 1.5 1.6 /Operating Profit 1.00 1.04 （Trillion yen） 0.91 0.92 1.28 0.85 0.86 1.18 1.21 0.80 ■ Net Income * /Profit 12.0 12.6
Slide 86: Changes in Consolidated Operating Revenues
Changes in Consolidated Operating Revenues （Billion yen） 13,704.7 14,190.0 13,136.2 13,374.6 15,000 11,899.4 11,944.0 11,944.0 12,156.4 11,799.6 11,879.8 11,391.0 6,336.0 6,213.1 6,059.0 6,140.0 4,840.8 4,651.3 4,725.2 4,769.4 5,870.2 4,584.6 5,880.9 10,000 3,120.0 3,112.3 3,079.9 3,207.4 3,177.6 3,
Slide 87: Changes in Consolidated Operating Income
Changes in Consolidated Operating Income （Billion yen） 20,000 1,922.9 1,829.0 1,768.6 1,770.0 1,693.8 1,671.4 1,671.4 1,649.6 1,642.8 1,539.8 1,562.2 15,000 11,444 10,939 9,660 9,132 10,725 10,136 10,205 9,821 8,547 10,600 9,516 10,000 2,970 4,202 4,205 4,377 5,000 3,607 3,883 4,400 2,955 3,543 3,59
Slide 88: Changes in CAPEX
Changes in CAPEX （Billion yen） 2,530.0 2,500 2,063.1 2,087.4 875.0 2,000 1,862.4 1,806.6 1,700.0 1,674.8 1,697.0 1,728.3 1,728.3 1,687.6 705.4 714.3 1,500 572.8 706.3 597.1 593.7 569.1 576.4 734.3 527.0 698.6 481.0 491.4 1,000 522.5 527.4 498.1 583.4 549.6 541.0 527.4 501.1 801.0 279.3 657.4 675.7 5
Slide 89: Details of Consolidated Balance Sheet
Details of Consolidated Balance Sheet (Billions of yen) (1) The scope of aggregation for each of the figures presented for Finance Business is internal management figures of Finance business in Smart Life of NTT DOCOMO Group in Integrated ICT Business Segment. Such figures include that calculated ba
Slide 90: Changes in Interest-bearing Debt
Changes in Interest-bearing Debt （Billion yen） 12,000.0 120.0% Debt/Equity ratio* 100.8% 96.1% 97.4% 97.9% 10,000.0 100.0% 88.9% 8,000.0 80.0% 6,000.0 60.0% 51.9% 45.2% 46.0% 10,400.0 43.9% 9,591.0 10,010.1 40.6% 4,000.0 8,230.5 40.0% 7,624.3 7,364.3 4,699.9 2,000.0 4,088.2 3,971.6 4,262.7 20.0% 3,8
Slide 91: Changes in Number of Employees
Changes in Number of Employees NTT Consolidated Number of 338,650 338,450 341,300 343,650 Employees 324,650 333,850 324,650 （Persons） 319,050 307,900 47,150 51,050 51,700 52,600 27,550 28,100 46,500 300,000 284,550 26,650 45,850 274,850 27,450 26,750 75,400 64,550 62,050 74,750 72,950 70,300 67,200
Slide 92: Changes of Outstanding Shares
Changes of Outstanding Shares (Hundred million shares) 1,400 1,276 Cumulative total of shares decreased by around ▲36% 1,200 (▲2.5% Average Decrease Annually) 1,000 821 800 600 400 200 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025E (Note1)
Slide 93: Age Distribution of Employees at NTT East and NTT West
Age Distribution of Employees at NTT East and NTT West (As of March 31, 2025） 4,000 Number of Employees 2,000 0 20 30 40 50 60 65 * Figures for NTT East include employees from the consolidated regional outsourcing companies (NTT EAST-MINAMIKANTO and others), NTT-ME and NTT EAST SERVICE, while figure
Slide 94: Fixed Broadband Business FTTH Subscriptions
Fixed Broadband Business FTTH Subscriptions * FTTH Subscriptions (Sum of NTT East and NTT West） 23.65 23.79 23.95 Reference: (millions subs) 23.27 23.58 FY2025E Breakdown of FTTH Subscriptions (millions subs) 22.56 FY2025E Total FTTH Service: +0.16 Change from preceding Fiscal Year Hikari (1) Number
Slide 95: Broadband Access Services in Japan
Broadband Access Services in Japan Mobile Fixed Rakuten mobile market share Approx. 4％ Approx. Mobile Approx. FTTH 223.79M subs 40.99M subs 40M 200M SoftBank SoftBank market share Approx. 25％ 30M 150M KDDI KDDI market share Approx. 31％ 100M 20M NTT East and NTT DOCOMO NTT West Approx. Approx. 91.41M
Slide 96: New Medium-Term Management Strategy
Attachment 1 New Medium-Term Management Strategy New Value Creation & Sustainability 2027 Powered by IOWN © NTT, Inc. 2025 95
Slide 97: Fundamental Principles of New Value Creation & Sustainability 2027
Fundamental Principles of New Value Creation & Sustainability 2027 Powered by IOWN Innovating a Sustainable Future for People and Planet © NTT, Inc. 2025 96
Slide 98: Increase Our Investments in Growth Areas
For that Purpose, We Will Increase Our Investments in Growth Areas Will invest ~¥8.0 trillion in growth areas over the next 5 years 50％UP ¥0.6tn/year ~¥8.0 trillion ¥1.0tn/year over the next 5 years ¥1.5tn/year ~¥12.0 trillion ¥1.0tn/year in total 2015 FY FY 2022 FY2027 © NTT, Inc. 2025 97
Slide 99: Further Increase Our Cash-Generation Ability
We Will Also Further Increase Our Cash-Generation Ability for the Future Looking ahead to FY2027, aiming to increase our cash-generation ability for growth and reach EBITDA of ~¥4.0 trillion 4.0 ¥ tn +20％ increase ¥3.3tn FY 2022 2027 FY © NTT, Inc. 2025 98
Slide 100: Pillars of Our Initiatives
Pillars of Our Initiatives 1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ① IOWN-Driven Creation of New Value ③ Achievement of a Circular Economy Society (from concept to commercialization) i. Establishment of manufacturing company for photonic- i. Develop sustainab
Slide 101: IOWN-Driven Creation of New Value
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ① IOWN-Driven Creation of New Value (from Concept to Commercialization) ⅰ. Establishment of manufacturing company for photonic-electronic convergence devices ◼ Will establish “NTT Innovative Devices Corporation” in June
Slide 102: Data-Driven Creation of New Value (Smart World)
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ②Data-Driven Creation of New Value (Smart World) ⅰ. Strengthening personal business (strengthening DOCOMO’s Smart Life businesses) ◼ Will actively invest in personal business and other growth areas (at least ~¥1.0tn/5 y
Slide 103: Data-Driven Creation of New Value (Smart World)
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ②Data-Driven Creation of New Value (Smart World) ⅱ. Strengthening the Use of DX/Data in Society and Industry (use of AI/Robots) ◼ Will jointly develop technology and solutions globally, transforming industries that supp
Slide 104: Expansion and Upgrade of Data Centers
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ②Data-Driven Creation of New Value (Smart World) ⅲ. Expansion and Upgrade of Data Centers ◼ Will further expand the world’s third-largest(1) data center infrastructure, and implement upgrades through the introduction of
Slide 105: Achievement of a Circular Economy Society
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ③Achievement of a Circular Economy Society i. Develop sustainability solutions for customers ◼ Will promote green solutions that can be achieved by “Green Energy x ICT” (will make investments of ~¥1.0tn/5 years) ◼ Will
Slide 106: Achievement of a Circular Economy Society
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ③Achievement of a Circular Economy Society ⅱ. Creating Circular Economy-Oriented Businesses ◼ Will achieve a sustainable society by recycling resources across various industries and further accelerating regional revital
Slide 107: Progression towards Net-Zero
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ③Achievement of a Circular Economy Society ⅲ. Progression towards Net-Zero ◼ Looking ahead to FY2040, aiming to expand “NTT Green Innovation toward 2040” to Scope 3 NTT Green Innovation toward 2040(1) Expansion to Scope
Slide 108: Further Strengthening of Business Foundations
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ④Further Strengthening of Business Foundations ◼ We will make our networks/systems more resilient to withstand large-scale failures, cyberattacks or other occurrences in order to strengthen social infrastructure and enh
Slide 109: Fusion of R&D with a Market-Focused Strategy
2. Upgrading the Customer Experience (CX) ⑤ Fusion of Research and Development with a Market-Focused Strategy ◼ Will combine and strengthen our R&D capabilities with our market analysis and alliance capabilities at the holding company level ◼ Will enable us to strengthen our product-oriented R&D to
Slide 110: Strengthening of Services that Emphasize CX
2. Upgrading the Customer Experience (CX) ⑥Strengthening of Services that Emphasize CX Customers (Individuals, businesses, local governments, government organizations, etc.) Customer Experience Offer New Experiences and Set/Implement KPIs that Track the Customer Journey First Impressions that Exceed
Slide 111: Open and Innovative Corporate Culture
3. Improvement of Employee Experience (EX) ⑦Open and Innovative Corporate Culture ◼ Foster a culture of openness, collaboration and trial and error for a better customer experience ◼ Continue to strengthen diversity and inclusion Openness • Open discussions • Transparency • Healthy debate • Psycholo
Slide 112: Support Career Growth
3. Improvement of Employee Experience (EX) ⑧ Support Career Growth ◼ Support employee career growth and increase investment in human capital to drive business growth Supporting Growth Improve Expertise by Repeating the Cycle Career Work Training/ Review/ New EX Joining the Onboarding Design Experien
Slide 113: Global Benefits for Employees and their Families
3. Improvement of Employee Experience (EX) ⑨Global Benefits for Employees and their Families ◼ Expand the benefits that support a portion of educational expenses for children of deceased employees until they reach age 22 Current Future Scheme Scholarship fund Expand the current scheme Japan-based El
Slide 114: Medium-Term Financial Targets
Medium-Term Financial Targets Targets Indicators Target Levels (FY2027) Company-Wide Targets EBITDA ＋20％ increase (compared to FY2022) Growth EBITDA ＋40％ increase (compared to FY2022) Areas(1) Overseas Operating Income Margin(2) 10％（FY2025） Existing EBITDA ＋10％ increase (compared to FY2022) Areas(3)
Slide 115: Strengthening Our Ability to Generate Cash for Growth
Strengthening Our Ability to Generate Cash for Growth (with EBITDA as a Key Indicator) ◼ We will strengthen initiatives focused on our cash generation abilities to achieve further sustainable growth and have set EBITDA as a key indicator, aiming for an increase of 20% to reach ¥4.0 trillion by FY202
Slide 116: Increase Investments to Achieve Further Growth
Increase Investments to Achieve Further Growth ◼ We will make investments/contributions to our growth areas(1) amounting to ~¥8.0 trillion in the next five years(2) (an increase of 50% over current levels), and plan for a total of ~¥12.0 trillion ◼ Maintain/reduce our debt-to-EBITDA ratio to ~2x Gro
Slide 117: Fundamental Policy on Shareholder Returns
Fundamental Policy on Shareholder Returns Dividend Policy Our basic policy is to implement steady increases in dividends Share Buybacks We will flexibly conduct share buybacks to improve capital efficiency © NTT, Inc. 2025 116
Slide 118: Transaction to Make NTT DATA Group a Wholly Owned Subsidiary
Attachment 2 Transaction to Make NTT DATA Group a Wholly Owned Subsidiary May 8, 2025 © NTT, Inc. 2025 117
Slide 119: Strategic Direction of NTT Group
Strategic Direction of NTT Group ◆ NTT Group Medium-Term Management Strategy (announced May 2023) Fundamental Principles Pillars of Our Initiatives 1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society - Strengthening the use of DX/data in society and industry Innovating a
Slide 120: Objectives of Transaction
Objectives of Transaction to Make NTT DATA Group a Wholly Owned Subsidiary ◆ Challenges arising from the current capital relationship between NTT and NTT DATA Group (1) Conflicts of interest associated with the dual listing (2) Complex decision-making processes (3) Accountability to shareholders of
Slide 121: Objectives of Transaction
Objectives of Transaction to Make NTT DATA Group a Wholly Owned Subsidiary ◆ Objectives of Transaction to Make NTT DATA Group a Wholly Owned Subsidiary ✓ By unifying decision-making processes, a structure will be established where NTT DATA Group plays a central role in NTT Group’s global solutions b
Slide 122: Key Initiatives 1/3
Key Initiatives 1/3 (1) Enhancement of the global solutions business portfolio ✓ Enhance growth investments by leveraging NTT Group’s cash flow and financing capabilities • Strengthen presence in markets like North American, which has the highest demand worldwide and continues to produce the cutting
Slide 123: Key Initiatives 2/3
Key Initiatives 2/3 (2) Enhancement of coordination of resources/capabilities of both groups ✓ Corporate Sales: Strengthen cooperation between NTT DATA Group and NTT Group companies • Strengthen and expand sales of integrated solutions for large corporations by combining customer bases and offerings
Slide 124: Key Initiatives 3/3
Key Initiatives 3/3 (3) Facilitation of rapid decision-making and improving cost-competitiveness and customer/employee experience ✓ Facilitate rapid decision-making and optimize resources and assets by simplifying governance and consolidating overlapping functions ✓ Promote cross-group DX of shared
Slide 125: Overview of Transaction
Overview of Transaction to Make NTT DATA Group a Wholly Owned Subsidiary ➢ Implement the Tender Offer for Shares of NTT DATA Group Tender Offer Period May 9 (Friday) – June 19 (Thursday) Tender Offer Price JPY 4,000 per share Shares to be 592,810,968 shares Purchased ➢ If NTT is not able to acquire
Slide 126: Financing and Financial Policy
Financing and Financial Policy ◆ Financing ✓ The Tender Offer will be financed through bridge loans from five Japanese financial institutions ✓ The bridge loans are planned to eventually be replaced with long-term financing ◆ Financial Policy ✓ Continue to make growth investments and return profits
Slide 127: Initiatives for Synergy Creation
Initiatives for Synergy Creation ➢ NTT DATA Group and NTT Group companies will engage in discussions to strengthen collaboration and optimize overlapping functions ◆ Topics and Relevant Group Companies (Examples) ✓ Corporate Sales - Optimization of sales to large corporations: NTT Communications - A
Slide 128: Innovating a Sustainable Future for People and Planet
©NTT Innovating a Sustainable Future for People and Planet

NTT — Investor Presentation (July 2025) on 6ix

Ntt — Investor Presentation (July 2025)

Slide 1: IR Presentation

Slide 2: Disclaimer

Slide 3: Contents

Slide 4: Overview of FY2024 Consolidated Results

Slide 5: FY2024 Consolidated Results Highlights

Slide 6: Contributing Factors by Segment for FY2024

Slide 7: FY2025 Results Forecast

Slide 8: FY2025 Forecast Summary

Slide 9: FY2025 Forecast Summary by Segment

Slide 10: Initiatives for Medium-Term Profit Growth

Slide 11: Integrated ICT Business

Slide 12: FY2024 Results overview

Slide 13: Changes in operating revenues

Slide 14: Changes in operating profit

Slide 15: FY2025 Guidance

Slide 16: Operating Revenues Forecast

Slide 17: Operating Profit Forecast

Slide 18: Toward Medium-Term Growth

Slide 19: Consumer Business Strategy

Slide 20: Aims of DOCOMO MAX

Slide 21: Customer base and ARPU

Slide 22: Consumer Finance

Slide 23: Consumer Marketing Solutions

Slide 24: Consumer Entertainment

Slide 25: Medium-Term Approach toward Growth of Enterprise Business

Slide 26: Enterprise IoT / Digital BPO

Slide 27: Enterprise Regional and SME DX

Slide 28: FY24 Actions for Communication Quality Improvement

Slide 29: FY24 Actions for Communication Quality Improvement

Slide 30: Improving efficiency through network structural reform

Slide 31: Targets for each indicator toward FY2027

Slide 32: Global Solutions Business

Slide 33: Results for the Fiscal Year Ended March 31, 2025

Slide 34: New Orders Received YoY Changes

Slide 35: Net Sales YoY Changes

Slide 36: Operating Profit YoY Changes

Slide 37: Breakdown of Japan Segment Results

Slide 38: Breakdown of Overseas Segment Results

Slide 39: Breakdown of Overseas Segment Results (GTSS)

Slide 40: Status of the Data Center Business

Slide 41: Forecasts for the Fiscal Year Ending March 31, 2026

Slide 42: Breakdown of Forecasts FY2026 (Japan)

Slide 43: Breakdown of Forecasts FY2026 (Overseas)

Slide 44: Data Center Business as a Growth Engine

Slide 45: Expansion and Upgrade of Data Centers

Slide 46: NTT's Position In The Global Market

Slide 47: Regional Communications Business

Slide 48: FY2024 Results and FY2025 Forecast (NTT East)

Slide 49: FY2024 Results and FY2025 Forecast (NTT West)

Slide 50: Initiatives to Restore Business Results

Slide 51: Direction of Each Business Portfolio

Slide 52: Evolving and Expanding the Enterprise Network Business

Slide 53: Current Status of Fiber Optic Services and Future Targets

Slide 54: Initiatives to Increase Hikari Cross Sales

Slide 55: Initiatives in the Apartment Market

Slide 56: Reforming Telecommunications Operations through DX and AI

Slide 57: Reforming Telecommunications Operations through DX and AI

Slide 58: Exit from Unprofitable Services

Slide 59: Migration to Alternative PSTN Services

Slide 60: Further Expansion of Growth Businesses

Slide 61: Initiatives of a sustainable society, etc.

Slide 62: Sustainability Charter

Slide 63: Targets of NTT Green Innovation toward 2040

Slide 64: Outlook of NTT Group's Energy Consumption

Slide 65: Towards Achieving Net Zero in 2040

Slide 66: Current Status and Future of Renewable Energy Business

Slide 67: New Green Transformation Initiatives (GX)

Slide 68: Reinforcement of Corporate Governance

Slide 69: R&D

Slide 70: IOWN initiative

Slide 71: IOWN From Vision to Reality - and Beyond

Slide 72: IOWN2.0 - Optical Based Computing

Slide 73: Future path for IOWN

Slide 74: Achieved the World's First International IOWN APN Connection

Slide 75: NTT's LLM tsuzumi

Slide 76: High Level of Cost Performance

Slide 77: Establish NTT AI-CIX to Promote Linked AI

Slide 78: Shareholder Returns

Slide 79: Shareholder Returns