Slide 1: IR Presentation
IR Presentation Ver.240502
Slide 2: Forward-looking statements notice
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 FY2023 Consolidated Results and FY2024 Results Forecast Initiatives of a sustainable society, etc. FY2023 Consolidated Results Highlights 4 Sustainability Charter 60 Contributing Factors by Segment for FY2023 5 Targets of “NTT Green Innovation toward 2040” 61 FY2024 Forecast Sum
Slide 4: Overview of FY2023 Consolidated Results and FY2024 Results Forecast
Overview of FY2023 Consolidated Results and FY2024 Results Forecast Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 3
Slide 5: FY2023 Consolidated Results Highlights
FY2023 Consolidated Results Highlights ◼ Operating Revenues, Operating Profit and Profit all increased year-over-year ◼ Operating Revenues, Operating Profit and Profit all reached record-high levels ◼ Achieved EPS under the previous medium-term financial targets, for which FY2023 was the final year
Slide 6: Contributing Factors by Segment for FY2023
Contributing Factors by Segment for FY2023 Operating Revenues <Year-on-year:＋238.4> (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 174.1 50.
Slide 7: FY2024 Forecast Summary
FY2024 Forecast Summary ◼ Operating Revenues will increase year-over-year while Operating Profit and Profit will decrease year-over-year Consolidated Revenues and Income Plan FY2023 Results FY2024 Forecast Year-on-Year Operating Revenues ¥13,374.6B ¥13,460.0B +¥85.4B Operating Profit ¥1,922.9B ¥1,81
Slide 8: FY2024 Forecast Summary by Segment
FY2024 Forecast Summary by Segment Operating Revenues <Year-on-year: +85.4> (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 13,460.0 47.1 13,
Slide 9: Current Profit Levels and Initiatives to Reach Medium-Term Targets
Current Profit Levels and Initiatives to Reach Medium-Term Targets ◼ We actively streamlined non-core assets to achieve the previous medium-term targets, for which FY2023 was the final year, and achieved significant profit increases and reached those targets in FY2023 as a result ◼ Although profits
Slide 10: New Medium-Term Management Strategy
New Medium-Term Management Strategy New Value Creation & Sustainability 2027 Powered by IOWN Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 9
Slide 11: Fundamental Principles: Innovating a Sustainable Future for People and Planet
Fundamental Principles of New Value Creation & Sustainability 2027 Powered by IOWN Innovating a Sustainable Future for People and Planet Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 10
Slide 12: Increasing 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 FY2015 FY 2022 FY2027 Copyright 2024 NIPPON TELEGRAP
Slide 13: Increasing Cash-Generation Ability to ~¥4.0 Trillion EBITDA
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 Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 12
Slide 14: 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 15: 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 16: Data-Driven Creation of New Value: Personal Business
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 17: Data-Driven Creation of New Value: DX/Data in Society and Industry
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 18: 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 19: Circular Economy: Sustainability Solutions for Customers
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 20: Creating Circular Economy-Oriented Businesses
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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 30
Slide 32: Integrated ICT Business
Integrated ICT Business Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 31
Slide 33: NTT DOCOMO Growth and Business Portfolio Transformation
NTT DOCOMO Growth and Business Portfolio Transformation ✓ Transform business portfolio to become an integrated ICT company and achieve sustainable growth 【Operating revenues】 Enterprise business • Expand growth domains, e.g., mobile, cloud, solutions, etc. Over Generate • Offer value to customers—fr
Slide 34: Consumer: Enhanced Customer Experience Value
<Consumer> Enhanced customer experience value ✓ Aim to enhance customer experience by offering great value and convenience through “dPOINT” life, further improving its ease of use Kid’s Keitai Child- raising Investment, support / loan, Child ・ insurance オリックス・クレジット monitoring Peace -of- mind Shoppin
Slide 35: Consumer: FY2024 Actions
<Consumer> FY2024 actions ✓ Propose optimal service mix catered to the individual needs of each customer with seamless communication Newly launch/further refine service offerings Expand merchants Communication Smart life Non-DOCOMO services services Non-DOCOMO mobile user mobile user Set up proposal
Slide 36: Consumer: Evolution of Entertainment/Finance Services
<Consumer> Evolution of entertainment/finance services ✓ Continue implementing measures aimed at improving the attractiveness of each service Video services Investment ✓ Periodic investment service via dCARD 2024 summer (planned) ✓ Purchase of investment trust using dPOINT 2024 autumn (planned) ✓ Gr
Slide 37: Consumer: Expansion of Merchant Network
<Consumer> Expansion of merchant network ✓ Continue to expand merchant network, aiming to build an attractive economic sphere ✓ Provide marketing solutions to partners for their growth Expansion of merchant network Connecting partners and customers through marketing DX Merchants For distributors/ret
Slide 38: Consumer: Service Mix Proposals
<Consumer> Service mix proposals ✓ Strengthen proposals through service mixes, with the aim of expanding both revenues and customer base Communication & Video Communication & Payment Use of multiple services Planned for launch summer/fall 2024 @ 2024 Disney & Upsell communications Upsell communicati
Slide 39: Consumer: For Further Growth
<Consumer> For further growth ✓ Consolidate consumer-related organizations to drive enhancement of customer experience July 2022 July 2024 New DOCOMO Group Operate consumer-related organizations in integrated way established Newly create Consumer Service Company Smart Life Business Company Effects o
Slide 40: Enterprise: Initiatives for Large Enterprises
<Enterprise> Initiatives for large enterprises ✓ Roll-out of solutions/services leveraging advanced technologies New solutions that leverage “tsuzumi” Enhance value of IoT solutions through 5G consulting More than 200 cases of introduction consultations. Started offering communication environment co
Slide 41: Enterprise: Initiatives for Small and Medium-Sized Companies
<Enterprise> Initiatives for small and medium-sized companies ✓ Assist regional communities and companies solve issues with mobile + solutions Regional co-creation solutions “DOCOMO Business Package” Solution of regional issues through the use of LGPF* Strengthen problem-solving assistance capabilit
Slide 42: Network Reinforcement
Network reinforcement ✓ Accelerate implementation of initiatives to construct a network that resilient to environmental changes and disaster Improve network quality perceived by customers Strengthen network resilience Early detection of Build network resilient against experienced quality environment
Slide 43: Initiatives for Revenue Generation Using Network Assets
Initiatives for revenue generation using network assets ✓ Accelerate overseas rollout of OREX using OREX SAI as a hub ✓ Push forward field trials with overseas operators for early commercial launch Commercial launch Customer (Overseas telcos) FY23-24 Procure Sell, build, operate 販売・構築・運用 Verificatio
Slide 44: Reinforcement of Global Business
Reinforcement of global business ✓ Global operating holding company, “NTT DOCOMO Global, Inc.” to be established in July 2024 ✓ Accelerate overseas business deployment putting NTT Digital and OREX SAI* under its control ◼ Plan to establish “NTT DOCOMO Global, Inc.” in July 2024 to expand DOCOMO grou
Slide 45: Global Solutions Business
Global Solutions Business Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 44
Slide 46: Creation of Projects Utilizing Ability to Create and Ability to Connect
Creation of projects utilizing “Ability to Create" and “Ability to Connect“ Creating new services through cross-industry innovation in Japan and collaboration between each region overseas Achieved orders in excess of 130 billion yen through collaboration between each region’s “Ability to Create" and
Slide 47: Status of Data Center Business
Status of Data Center Business • As the data center business is expected to grow on the back of strong demand, we will continue the aggressive investment in FY2024 as well. • Revenue, EBITDA, and EBITDA margin increased from the full-year plan. Status of data center service delivery Data Center Busi
Slide 48: 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 49: Expansion Strategy
Expansion Strategy Remain top global data center operator, to provide exceptional value to our customers, drive technology initiatives and maintain leadership with the most influential companies in the world Growth Strategy: organic expansion, land acquisition, and explore M&A to drive GDC platform
Slide 50: Data Center GTM - Demand
Data Center GTM - Demand Data Center market is expected to grow from $50.8bn to $136.8bn in 2028 Global DC Colocation Market Size ($B) $160.0 Total $136.8B Global data center demand is growing $140.0 $6.1 significantly (13.5% through 2028) $120.0 $4.8 $3.8 $51.8 $100.0 $3.0 $46.3 This growth is seen
Slide 51: Data Center Demand: Generative AI Impact
Data Center Demand: Generative AI Impact Demand from Generative AI is expected to increase current projections by over 20% Global Generative AI Growth CAGR growth for Generative AI data center demand expected from 17% – 44%. (NTT Consensus 20%) 20% Ave Data center market size with AI expected to be
Slide 52: ROIC and Value Creation
ROIC and Value Creation • The ROIC of each data center will steadily improve in the long term • EV/EBITDA multiple for public data center peer group is currently around 20x ROIC*1 Forecast of Sample DCs Historical Multiple (EV/EBITDA) Ratio of accumulated depreciation to costs in PPE*2 Accumulated D
Slide 53: Regional Communications Business
Regional Communications Business Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 52
Slide 54: Initiatives for Sustainable Business Growth
Initiatives for Sustainable Business Growth Operating Profit Forecast Specific Initiatives １ Growing and expanding Hikari services Shifting towards increasing profitability, with FY2024 as a Steadily migrating from legacy and other NTT EAST：298.6 baseline ２ NTT WEST：138.9 (Billions of yen) services
Slide 55: Growing and Expanding Hikari Services (NTT East)
Growing and Expanding Hikari Services（NTT East） FY2022 FY2023 FY2024 FY2025 (Year-Over-Year) Hikari Lines Opened approx. 4x Net Change Supporting high-speed needs in Expanding the Hikari Cross (10Gbps) in Optic Lines 170k 10 (Compared to Time of coverage area to cover all of eastern Japan collaborat
Slide 56: Growing and Expanding Hikari Services (NTT West)
Growing and Expanding Hikari Services（NTT West） ➢ Maintaining net increases in Hikari services by expanding the Hikari service area, among other measures ➢ For the Hikari Cross area, increasing market share and improving ARPU by thoroughly promoting a “Cross-first” approach FY2022 FY2023 FY2024 FY20
Slide 57: Turning Regional Customers into Loyal Customers (NTT East)
Turning Regional Customers into Loyal Customers（NTT East） Supporting the Digitalization of Local Governments and Public Institutions Operating Revenues from Hikari- Related Businesses Loyal Customer • One-stop provider of regional problem-solving and Creation value creation, AI and digitalization ne
Slide 58: Expanding Social Infrastructure Businesses in the Public Sector (NTT West)
Expanding Social Infrastructure Businesses in the Public Sector and Elsewhere（NTT West） ➢ Taking advantage of opportunities such as the lift of core local government processes to the government cloud, and investing resources and products into the social infrastructure business field System Integrati
Slide 59: Further Expanding Growth Businesses (NTT West)
Further Expanding Growth Businesses（NTT West） ➢ One of the largest e-book stores in Japan (with more than 35 million monthly users and over 1.34 million books) ➢ Strengthening comprehensive efforts, from original comic production to licensing development, and expanding business into global markets G
Slide 60: Initiatives of a sustainable society, etc.
Initiatives of a sustainable society, etc. Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 59
Slide 61: 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 62: 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 63: 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 64: 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 65: Acquisitions of Renewable Energy Sources
Acquisitions of Renewable Energy Sources ⚫ 2.69 billion kWh renewable energy in June 2023 with under development projects ⚫ As a result of the acquisition of GPI in August 2023, the 2030 target is now within reach 64 * Company estimate based on the Ministry of the Environment’s “CO2 Emission Fact-Fi
Slide 66: 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 67: 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 68: R&D
R&D Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 67
Slide 69: What's IOWN?
What’s IOWN? Innovative Optical and Wireless Network (IOWN) Initiative Three main technology components of IOWN ✓ All-photonics network, which incorporates photonics-based technology at every level from networks to terminals ✓ Cognitive Foundation, which connects and controls everything ✓ Digital tw
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: 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 72: 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 73: Creating Distributed Data Centers through IOWN APN
Creating Distributed Data Centers through IOWN APN • By the end of FY2023, NTT Group’s major data centers will be connected via IOWN APN, and starting in FY2024, connections will be further extended to regional data centers, thereby building distributed data centers • By leveraging the characteristi
Slide 74: Initiatives to Expand Overseas Business for IOWN
Initiatives to Expand Overseas Business for IOWN ◼ Hosted the “Upgrade 2024” conference in San Francisco (April 10-11, with approximately 700 attendees) ◼ Proposed R&D results and product developments, including APN (distributed DC) and tsuzumi, to implement the IOWN and other technologies globaly ◼
Slide 75: NTT's LLM tsuzumi: Key Features
NTT’s LLM ’s Key Features Result of over 40 years of accumulated research on natural language processing 1 Japanese/English Compatible with World-Class Japanese Ultra-lightweight and high-performance 2 High Level of Cost Performance Flexible and low-cost tuning; capable of learning from closed datas
Slide 76: World-Class Japanese Language Capabilities
World-Class Japanese Language Capabilities World-class capabilities that surpass other large-scale models and significantly surpass other domestic Japanese LLMs in the same class Win Draw Lose Compared to Domestic Top-Class LLM A 86.3% 11.3% Compared to Domestic Top-Class LLM B 71.3% 8.8% 20.0% Comp
Slide 77: 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 78: Strategy for Desired Direction
Strategy for A small LLM Desired A giant LLM with specialized Direction that knows everything knowledge Improving the Increasing Approach quality and volume of parameter size language learning data Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 77
Slide 79: NTT's LLM Timeline
1980 Began research on natural language processing 2020 Released the LLM, “NTT’s BERT” October 2023 NTT’s LLM Japanese/English capability with text and graphical reading abilities Launch of internal and external trials March 2024 NTT’s LLM Launch of commercial sales April 2024 Commercial releases of
Slide 80: Establishment of NTT Precision Medicine
Establishment of NTT Precision Medicine • We will support the research and development of next-generation disease prevention and treatment methods by generating and collecting medical and healthcare data in collaboration with medical institutions, and by accelerating data distribution to pharmaceuti
Slide 81: Shareholder Returns
Shareholder Returns Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 80
Slide 82: Shareholder Returns
Shareholder Returns Shareholder Returns ◼ Dividends for FY2023 ・ Increased in the year-end dividend per share to ¥2.6 (an increase of ¥0.1 over the forecast at the beginning of FY2023) ・Annual dividends per share totaled ¥5.1 (an increase of ¥0.3 from FY2022)* ◼ Dividends forecast for FY2024 ・Annual
Slide 83: Record of Share Buybacks
Record of Share Buybacks 15.1 Amount of Share Buybacks (Billions of yen) 13.9 EPS (Digits reflect past stock split) (Yen) 13.2 9.9 9.1 9.2 8.8 7.8 7.0 5.1 4.6 4.6 4.7 4.1 4.0 4.3 3.5 3.7 1.9 1.5 Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 82
Slide 84: Changes in Dividend
Changes in Dividend 5.1 （Yen） 5.0 85% 4.0 Dividend per share Payout Ratio 65% 3.0 45% 2.0 40.9% 41.1% 42.3% 37.2% 38.0% 33.4% 34.9% 34.5% 33.8% 32.9% 0.5 32.3% 31.2% 38.2% 31.4% 30.7% 25% 1.0 27.5% 23.0% 19.5% 17.1% 12.3% 13.0% 0.0 5% • FY2003-FY2017, financial statements were prepared in accordance
Slide 85: Number of Shareholders
Number of Shareholders Stock Split as an Opportunity to Increase the Number of Shareholders July 2023 1.86 Stock Split million ◆ The number of shareholders has Number of holders increased 1.86 million (+ 0.94 Shareholders million), doubled from prior to the 0.92 +103% Retail Shareholders stock split
Slide 86: Financial Data, etc.
Financial Data, etc. Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 85
Slide 87: NTT Group Formation
NTT Group Formation Operating revenue：¥6,140.0 billion Integrated ICT Operating income ：¥1,144.4 billion Business No. of employees ： 51,050 No. of subsidiaries： 127 Operating revenue：¥3,183.2 billion Regional Operating income ：¥ 437.7 billion Communications Business No. of employees ： 67,200 Nippon
Slide 88: Trend in Consolidated Financial Results
Trend in Consolidated Financial Results 13.4 13.5 13.1 ■ Operating 12.2 11.8 11.9 11.9 11.9 Revenues 11.5 11.4 （Trillion yen） 1.9 1.8 1.8 1.8 1.6 1.7 1.7 ■ Operating 1.5 1.6 Income 1.4 /Operating 1.28 Profit 1.18 1.21 1.10 （Trillion yen） 0.91 0.86 0.92 ■ Net Income * 0.80 0.85 0.74 /Profit （Trillion
Slide 89: Changes in Consolidated Operating Revenues
Changes in Consolidated Operating Revenues （Billion yen） 13,136.2 13,374.6 13,460.0 15,000 11,879.8 11,899.4 11,944.0 11,944.0 12,156.4 11,541.0 11,391.0 11,799.6 6,059.0 6,140.0 6,244.0 4,840.8 4,651.3 4,725.2 4,769.4 5,870.2 4,527.1 4,584.6 5,880.9 10,000 3,079.9 3,207.4 3,177.6 3,183.2 3,070.0 3,
Slide 90: Changes in Consolidated Operating Income
Changes in Consolidated Operating Income （Billion yen） 2,000 1,922.9 1,671.4 1,829.0 1,810.0 1,768.6 1,642.8 1,693.8 1,671.4 1,539.8 1,562.2 1,500 1,348.1 1,144.4 1,060.0 1,093.9 1,072.5 1,170.0 1,013.6 913.2 982.1 854.7 951.6 1,000 788.4 420.2 420.2 437.7 388.3 420.5 500 360.7 440.0 290.0 354.3 265
Slide 91: Changes in CAPEX
Changes in CAPEX （Billion yen） 2,063.1 2,050.0 2,000 1,806.6 1,862.4 1,687.2 1,700.0 1,674.8 1,697.0 1,728.3 1,728.3 1,687.6 705.4 749.0 1,500 572.8 706.3 569.1 595.3 597.1 576.4 593.7 734.3 698.6 481.0 482.0 1,000 522.5 527.4 498.1 583.4 549.6 541.0 622.1 527.4 501.1 279.3 657.4 565.0 500 259.0 232
Slide 92: 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 93: 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% 10,000.0 100.0% 88.9% 8,000.0 80.0% 6,000.0 60.0% 51.9% 47.1% 45.2% 46.0% 43.9% 9,591.0 9,600.0 40.6% 4,000.0 8,230.5 40.0% 7,624.3 7,364.3 4,699.9 2,000.0 4,163.3 4,088.2 3,971.6 4,262.7 20.0% 3,854
Slide 94: Changes in Number of Employees
Changes in Number of Employees 333,850 338,650 338,450 345,700 319,050 324,650 324,650 (325,050) (329,850) (331,100) (338,550) 307,900 (296,500) (298,900) (298,900) (284,550) 51,400 284,550 27,550 28,100 45,850 46,500 47,150 51,050 300,000 274,850 (275,650) 26,650 (27,500) (28,050) (45,750) (46,450)
Slide 95: Changes of EPS and Outstanding Shares
Changes of EPS and Outstanding Shares (Hundred million shares) EPS(right axis) （Yen） 1,400 17.5 1,276 Cumulative total of shares decreased by around ▲34% 1,200 (▲2.6% Average Decrease Annually) 15.0 13.0 1,000 12.5 841 800 10.0 600 7.5 400 3.7 5.0 200 2.5 0 0.0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2
Slide 96: Age Distribution of Employees at NTT East and NTT West
Age Distribution of Employees at NTT East and NTT West (As of March 31, 2023） 4,000 Number of Employees 2,000 0 20 30 40 50 60 65 Age * Figures for NTT East include employees from the consolidated regional outsourcing companies (NTT EAST-MINAMIKANTO and others), NTT-ME and NTT EAST SERVICE, while fi
Slide 97: Fixed Broadband Business FTTH Subscriptions
Fixed Broadband Business FTTH Subscriptions * FTTH Subscriptions (Sum of NTT East and NTT West） 23.65 23.75 Reference: (millions subs) 23.27 23.58 FY2024E Breakdown of FTTH Subscriptions (millions subs) 22.56 FY2024E 21.66 Total FTTH Service: +0.1 Change from preceding Fiscal Year Hikari (1) Number
Slide 98: Broadband Access Services in Japan
Broadband Access Services in Japan Mobile Fixed Rakuten mobile market share Mobile Approx. 3％ Approx. Approx. FTTH 218.88M subs 200M 40M 40.17M subs SoftBank SoftBank market share Approx. 26％ 150M 30M KDDI KDDI market share Approx. 30％ 100M 20M NTT East and NTT DOCOMO NTT West Approx. 50M 89.18M sub
Slide 99: Migrate PSTN to IP Networks
Migrate PSTN to IP Networks Simplify services and networks with IP networks ⚫ Nation-wide call rates to fixed-line telephones will be 8.5 yen per every 3 minutes (from January 2024) ⚫ Migrate tandem/signal transfer switches to IP, and connect to other carriers through IP (scheduled completion by Jan
Slide 100: Innovating a Sustainable Future for People and Planet
Innovating a Sustainable Future for People and Planet