Slide 1: IR Presentation
IR Presentation Ver.201101
Slide 2: Translation notice and forward-looking statements
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 Consolidated Results for FY2020.2Q and FY2020 Forecast Other Businesses 2020.2Q Financial Results – Key Points 4-5 Promote B2B2X Model 45 Status of Consolidated Results for FY2020.2Q 6 Business Partnership with Mitsubishi Corporation 46 Contributing Factors by Segment for FY2020
Slide 4: Overview of Consolidated Results for FY2020.2Q and FY2020 Forecast
Overview of Consolidated Results for FY2020.2Q and FY2020 Forecast Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 3
Slide 5: 2020.2Q Financial Results – Key Points (1)
2020.2Q Financial Results – Key Points (1) ・ FY2020 2Q operating revenues decreased, while operating income increased. As a result of the impact of COVID-19 and other factors, operating revenues decreased by 178.2 billion yen (a decrease of 3.0%) from the previous year, but due to an increase in ope
Slide 6: 2020.2Q Financial Results – Key Points (2)
2020.2Q Financial Results – Key Points (2) Q︓ As a result of the transaction to make NTT DOCOMO a wholly owned subsidiary, indebtedness will significantly increase. Will you continue dividend increases and share buybacks next year and thereafter? A︓ In order to enhance shareholder returns, our board
Slide 7: Status of Consolidated Results for FY2020.2Q
Status of Consolidated Results for FY2020.2Q Operating Revenues declined, while Operating Income increased Status of Consolidated Results Operating Revenues: ¥5,711.4B <(¥178.2B) [ (3.0%)] year-on-year > Operating Income: ¥1,008.6B < +¥25.8B [ +2.6%] year-on-year > Profit*: ¥541.5B < (¥6.2B)
Slide 8: Contributing Factors by Segment for FY2020.2Q
Contributing Factors by Segment for FY2020.2Q Operating Revenues <Year-on-year:(178.2)> (Billions of yen) Mobile Regional Long distance and Data Other elimination of communications communications international communications business inter-segment business business communications business transactio
Slide 9: Medium-Term Debt Levels
Medium-Term Debt Levels Targeted debt levels are ¥6 trillion; includes the spin-off of the leasing business, securitizations of receivables and debt repayments of ¥0.9 trillion. Debt will be repaid while maintaining the same shareholder returns as before. No goodwill will be generated by the t
Slide 10: Overview of FY2020 Financial Forecasts
Overview of FY2020 Financial Forecasts The impact of COVID-19 is expected to be a decrease in Operating Revenues of approximately ¥350.0 billion and a decrease in Operating Income of approximately ¥70.0 billion, based on the following assumptions: In Japan, without taking into account any re-iss
Slide 11: FY2020 Forecast Summary
FY2020 Forecast Summary Plan for Consolidated Revenues and Income FY2019 FY2020 Year-on- COVID-19 Result Forecast Year Impact Operating (¥350.0B) ¥11,899.4B ¥11,500.0B (¥399.4B) Revenues Domestic: (¥180.0B) Overseas: (¥170.0B) Operating (¥70.0B) ¥1,562.2B ¥1,590.0B ＋¥27.8B Income Domestic: (¥45.0B)
Slide 12: FY2020 Financial Forecast Summary (by Company)
FY2020 Financial Forecast Summary (by Company) Operating Operating Revenues Year-on-Year Income Year-on-Year NTT DOCOMO ¥4,570.0B (¥81.3B) ¥880.0B ＋¥25.4B NTT East ¥1,689.0B ＋¥11.9B ¥260.0B ＋¥4.0B NTT West ¥1,438.0B ＋¥3.7B ¥148.0B ＋¥15.8B Long Distance and International ¥2,114.0B (¥91.8B) ¥124.0B ＋¥
Slide 13: FY2020 Forecast Summary by Segment
FY2020 Forecast Summary by Segment Operating Revenues <Year-on-year:(399.4)> (Billions of yen) Mobile Regional Long distance and Data Other elimination of communications communications international communications business inter-segment business business communications business transactions business
Slide 14: Topics
Topics Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 13
Slide 15: Initiatives to Create a Remote World (1/4)
Initiatives to Create a Remote World (1/4) Created the new service brand, “Remote World” In order to provide customers with appropriate services both during and after COVID-19, we have created a lineup of services under a new service brand Achieving a new space beyond face-to-face - A world where
Slide 16: Initiatives to Create a Remote World (2/4)
Initiatives to Create a Remote World (2/4) Launch of new services <Expanding the work that can be done remotely> ① “OriHime” remote-controlled avatar robot (Entered into a capital alliance with Ory Laboratories on October 15, 2020) Four people who have physical disabilities or who have difficult
Slide 17: Initiatives to Create a Remote World (3/4)
Initiatives to Create a Remote World (3/4) <Evolution of communication> ③ “elgana” business chat (NTT Neomeit; new plan added in October 2020) Launched a free plan that allows chat talk for an unlimited number of IDs, and without ads displayed ④ “SwipeVideo” free-viewpoint video solution (NTT DOCO
Slide 18: Initiatives to Create a Remote World (4/4)
Initiatives to Create a Remote World (4/4) <Improved productivity through the shift to online> ⑤ “Smart Me™” digital employee ID (NTT Com; launched in September 2020) Employees can enter and exit rooms just by waving their hands with their smartphones kept in their pockets Physical cards will be
Slide 19: Launched “DOOR” 3D Owned Media
Launched “DOOR” 3D Owned Media For the worldview and contributions to social issues that NTT strives for, DOOR will disseminate information in a way unique to 3D spaces that will inspire people to feel wonder and excitement together Exemplifies a worldview of the Remote World that balances both
Slide 20: NTT Group Medium-Term Management Strategy
NTT Group Medium-Term Management Strategy Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 19
Slide 21: Medium-Term Targets
Medium-Term Targets Financial Targets EPS Growth EPS Growth ＋50％ ※2 Target FY2023 （vs. FY2017） ＋50％ Overseas Sales / $25B/ FY2023 Overseas Operating 7％ Income Margin ※3 Approx. ※1 Cost Reductions At least ¥800B FY2023 ※1 320 yen (in fixed-line/mobile access networks) （vs. FY2017） ※2 212 yen ROIC 8％
Slide 22: Transition of Medium-Term Targets
Transition of Medium-Term Targets EPS Growth Cost Reductions *1 （in fixed-line/mobile access networks） Approx. Profit expansion 320yen /share buybacks FY 2017 FY 2018 FY 2019 FY 2023 Target 220yen 231yen ▲220 212yen *2 billion yen ▲500 billion yen FY 2017 FY 2018 FY 2019 FY 2023 Target Establish eff
Slide 23: Overview of Medium-Term Management Strategy Initiatives
Overview of Medium-Term Management Strategy Initiatives Progress of the medium-term management strategy accelerated by the transaction to make NTT DOCOMO a wholly owned subsidiary Promote B2B2X Model • Number of B2B2X Projects: 88 (+75)* Roll Out 5th-Generation • Launched 5G services using millimete
Slide 24: Global Business
Global Business Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 23
Slide 25: Global Business Overview
Global Business Overview Overseas Sales/Overseas Operating Income Margin* Revenue $25B 7.0％ Operating profit Margin $19.5B $18.4B $18.9B 2.4％ Operating Profit 3.1％ 3.2％ $1.75B** $0.56B $0.60B $0.46B FY 2017 FY 2018 FY 2019 FY 2023 Target * Including results from the global holding company, its subsi
Slide 26: Enhance Competitiveness in Global Business (1)
Enhance Competitiveness in Global Business (1) We established a new global holding company under NTT Corporation by the third quarter of the fiscal year ending March 31, 2019. And NTT Communications, Dimension Data, NTT DATA, NTT Security, and NTTi3 will be transferred to NTT, Inc. and will alig
Slide 27: Enhance Competitiveness in Global Business (2)
Enhance Competitiveness in Global Business (2) ”One NTT” Global Growth Strategy Deliver High Value Solutions Create New Innovative Solutions Business Modernization Disruptive Innovation Industry Advisory Expertise Drives Global Innovation Fund Outcome-Based Solutions ︵ Invest in the Next Innovative
Slide 28: Structural Reform of NTT Ltd.
Structural Reform of NTT Ltd. Promoted integration at NTT Ltd. since its establishment in July 2019 Promoting structural reforms to realize business shift to attractive markets centered on managed IT services • Streamlining business operations - Optimization by consolidating operations and overl
Slide 29: NTT Ltd. Road to FY23
NTT Ltd. Road to FY23 7.0%* 1000M USD Execute GTM strategy Transition to high value services High value services 2.6%* Utilize Shared service centers approx. 300M USD 2020年度 Accelerate IT integration Cost reduction FY20 FY23 [* Based on Overseas Operating Income Margin**] **Including results from th
Slide 30: Smart City Project (Las Vegas City)
Smart City Project (Las Vegas City) Pain Point of the City: To reduce “Response Time” Requirements: ① Reactive actions: Notify “What is going on︖” ② Proactive actions: Notify “What is going to happen next︖” ③ Flexible ICT : Deploy ICT resources ASAP NW bandwidth Actions by Officers City Sensor setti
Slide 31: Mobile Communication Business
Mobile Communication Business Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 30
Slide 32: NTT DOCOMO FY2020 Principal Actions
NTT DOCOMO FY2020 Principal Actions Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 31
Slide 33: NTT DOCOMO New Rate Plans
NTT DOCOMO New Rate Plans Simple rate structure providing choice from only two plans To start from Jun. 1, 2019 “Gigaho” Up to 60GB*2 “Always” available after exceeding 60GB*2 By applying 適⽤で最⼤6か⽉間 “Gigaho Wari”,*1 Ultra‐high High‐speed access of up to speed access 1Mbps ¥4,980 for up to 6 months Ma
Slide 34: NTT DOCOMO Finance/Payment Services
NTT DOCOMO Finance/Payment Services Finance/Payment “d CARD” members Transactions handled (Billions of yen) (Million members) 3,180.0 13.55 Up 33％ 12.02 2,390.0 Up 13％ Up 27％ d CARD transactions 1,890.0 Up 23％ d CARD GOLD 2,410.0 5.98 7.34 FY19/1H FY20/1H FY19/1H FY20/1H ◆ The amount of transactions
Slide 35: NTT DOCOMO Actions for 5G
NTT DOCOMO Actions for 5G Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 34
Slide 36: NTT DOCOMO 5G Subscriptions/Coverage
NTT DOCOMO 5G Subscriptions/Coverage Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 35
Slide 37: NTT DOCOMO 5G Services
NTT DOCOMO 5G Services Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 36
Slide 38: NTT DOCOMO 5G Solutions
NTT DOCOMO 5G Solutions Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 37
Slide 39: NTT DOCOMO Initiatives toward a Remote-Style Society
NTT DOCOMO Initiatives toward a Remote-Style Society Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 38
Slide 40: NTT DOCOMO Termination of FOMA (3G) Service
NTT DOCOMO Termination of FOMA (3G) Service Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 39
Slide 41: NTT DOCOMO Cost Efficiency Improvement
NTT DOCOMO Cost Efficiency Improvement Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 40
Slide 42: Fixed-line Communication Business
Fixed-line Communication Business Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 41
Slide 43: Local 5G utilization example
Local 5G utilization example Realizing the improvement of the manufacturing site by remote monitoring, etc. by utilizing local 5G, eliminates labor shortage and improves productivity .(Collaboration agreement with Yamaguchi Prefecture and joint experimental agreement with Hibiki Seiki Co., Ltd. Ap
Slide 44: 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 45: Other Businesses
Other Businesses Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 44
Slide 46: Promote B2B2X Model
Promote B2B2X Model Number of B2B2X Projects: 88 (as of the end of September 2020) Set B2B2X Sales Target: ¥600.0 billion (for FY2023) Sales / Number of Projects Target ¥ 600.0 billion Create new B2B2X project 440円 ¥ 60 billion FY 2018 FY 2021 FY 2023 target Number of Projects 39 100 Copyright 2
Slide 47: Business Partnership with Mitsubishi Corporation
Business Partnership to Pursue ”Industrial Digital Transformation(DX)”with Mitsubishi Corporation Objectives of business partnership: Pursuing DX through cross-industry collaboration • Collaborate Mitsubishi Corporation’s industry knowledge with technologies of NTT Group • Expand its expertise, deve
Slide 48: Business and Capital Alliance Agreement with Toyota
Business and Capital Alliance Agreement with Toyota Partnership for the realization of a smart city Basic concept of smart city platform • Social infrastructure for urban development, cooperation of urban functions, and sophistication • A platform that continues to evolve • Providing API to service
Slide 49: Create New Lines of Business
Create New Lines of Business Promotion of Smart Energy Business FY2025 (Target) Establishment of “NTT Anode Energy” (June 3, 2019) Efforts to popularize and expand the use of renewable energy（Capital tie-up with Furusato netsu-den Corporation（September 2020︓ Geothermal ）,Capital and business all
Slide 50: R&D
R&D Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 49
Slide 51: Worldwide promotion of research and development
Worldwide promotion of research and development Road to (1) Wireless - Expanding wireless coverage IOWN and increasing capacity - 6G strategy Cognitive Foundation (4) Disaggregated Computing / OS (2) All-Photonics Network (APN) (3) Digital Twin - LSI serving as a key Computing (DTC) to the APN - 4D
Slide 52: Open access networks (O-RAN plus vRAN)
Open access networks (O-RAN plus vRAN) Flexible and advanced vCU management Operational vDU operations High availability Scalability RU RU Resilience RU Virtualization vCU management Operational vRAN vDU NEC NTT RU RU - Software technology - Verification for practical RU - Production technology use
Slide 53: Shareholder Returns/ ESG
Shareholder Returns/ ESG Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 52
Slide 54: Shareholder Returns (1)
Shareholder Returns (1) Dividend Policy • Basic policy is steady dividend increases Share Buybacks • Carry out buybacks flexibly to improve capital efficiency Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 53
Slide 55: Shareholder Returns (2)
Shareholder Returns (2) Share Buybacks Resolved to buy back shares in order to improve capital efficiency and enhance shareholder returns Details of Share Buybacks ・Aggregate Amount: Up to ¥250.0 billion ・Aggregate Number of Shares: Up to 120,000,000 shares ・Buyback Period: From November 11, 202
Slide 56: Changes in Dividend
Changes in Dividend （Yen） 100 100 95 85% 75 Payout Ratio 65% 50 45% 43.0% 40.9% 41.1% 38.2% 37.2% 38.0% 12.5 25 32.3% 31.2% 33.4% 32.9% 31.4% 30.7% 25% 27.5% 23.0% 19.5% 17.1% 12.3% 13.0% 0 5% • Dividend reflects the two-for-one stock split effective on July 1, 2015 , and January 1, 2020. • FY2003-F
Slide 57: Record of Share Buybacks
Record of Share Buybacks Approx. 4 Trillion Yen in Buybacks From From From From From From From From From From From Market/ From Gov’t Market/ Market/ Market Market/Gov’t Market Gov’t Market Market / Gov’t Market Gov’t Market Gov’t Gov’t (Billions of yen) 600 539.4 501.1*7 500 406.5*4 400 381.7 374.1
Slide 58: Changes of EPS and Outstanding Shares
Changes of EPS and Outstanding Shares （Yen） (mio shares) 6,000 EPS(right axis) 232 5,500 5,293 EPS Growth 5,000 (Average Annual Growth Rate +9.2%) 200 Cumulative total of shares decrease by 4,500 around ▲30% (▲3.5% Average Decrease Annually) 4,000 3,500 96 3,000 100 2,500 2,000 1,500 1,000 0 2010 20
Slide 59: Promote ESG Management (1)
Promote ESG Management (1) Environment Social Governance Reduce environmental Promote diversity Enhance structure on impact Protect personal the basis of the intent Leverage ICT to information of Japan’s Corporate contribute to the Support customers in Governance Code environment reinfor
Slide 60: Promote ESG Management (2)
Promote ESG Management (2) Environment and Energy Vision: Zero Environmental Impact Contribute to the reduction of the environmental impact of customers, companies and society Promotion of renewable energy • Aim To increase the proportion of our renewable energy usage to 30% or higher by FY2030 •
Slide 61: Promote ESG Management (3)
Promote ESG Management (3) Strengthening of corporate governance (Adoption an executive officer system , Independent outside director ratio 50%) In order to further strengthen our governance, which contributes to increasing corporate value, we have decided to adopt an executive officer system and
Slide 62: Financial Data, etc.
Financial Data, etc. Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 61
Slide 63: NTT Group Formation
NTT Group Formation Voting rights to major subsidiaries (As of March 31, 2020) Operating revenue︓¥4,651.3 billion 66.2% Operating income ︓¥ 854.7 billion Mobile communications No. of employees ︓ 27,550 business No. of subsidiaries︓ 97 Operating revenue︓¥3,079.9 billion 100% Operating income ︓¥ 388.3
Slide 64: Trend in Consolidated Financial Results
Trend in Consolidated Financial Results 11.8 11.9 11.9 ■ Operating 11.8 11.5 11.5 11.4 Revenues 11.1 10.9 （Trillion yen） ■ Operating * 1.64 1.64 1.69 1.56 1.59 1.54 Income 1.21 1.35 /Operating 1.08 Profit （Trillion yen） 0.91 0.80 0.90 0.74 0.85 0.86 0.86 ■ Net Income 0.59 * 0.52 /Profit （Trillion ye
Slide 65: Changes in Consolidated Operating Revenues
Changes in Consolidated Operating Revenues ︓Mobile communications business ︓Data communications business ︓Long distance and international ︓Other business communications business ︓Regional communications business （Billion yen） 15,000 11,799.6 11,782.1 11,879.8 11,899.4 11,500.0 11,541.0 11,391.0 10,9
Slide 66: Changes in Consolidated Operating Income
Changes in Consolidated Operating Income ︓Mobile communications business ︓Data communications business ︓Long distance and international ︓Other business communications business （Billion yen） ︓Regional communications business 2,000 1,693.8 1,642.8 1,641.1 1,590.0 1,539.8 1,562.2 1,500 1,348.1 1,213.7
Slide 67: Changes in CAPEX
Changes in CAPEX ︓Mobile communications business ︓Data communications business ︓Long distance and international ︓Other business communications business （Billion yen） ︓Regional communications business 1,892.8 2,000 1,817.5 1,687.2 1,806.6 1,700.0 1,674.8 1,697.0 1,730.0 1,697.9 753.7 703.1 572.8 661.
Slide 68: Changes in Interest-bearing Debt
Changes in Interest-bearing Debt （Billion yen） Debt/Equity ratio* 8000.0 60.0% 51.9% 50.8% 49.3% 47.1% 46.0% 45.2% 43.9% 6000.0 40.6% 40.0% 4000.0 7600.0 20.0% 4699.9 4200.0 4406.7 4163.3 4262.7 2000.0 4088.2 3854.8 3971.6 0.0 0.0% FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 FY2019 FY2020E [IFR
Slide 69: Changes in Number of Employees
Changes in Number of Employees ︓Mobile communications business ︓Data communications business ︓Long distance and international ︓Other business communications business ︓Regional communications business 327,900 319,050 (305,550) 307,900 (296,500) (284,550) 28,250 284,550 27,550 (28,200) 300,000 274,850
Slide 70: Age Distribution of Employees at NTT East, NTT West and Outsourcing Companies
Age Distribution of Employees at NTT East, NTT West and “Outsourcing Companies” (As of March 31, 2020） 4,000 Number of Employees 2,000 0 20 30 40 50 60 65 Age * Figures for East Outsourcing Companies include employees from the consolidated regional outsourcing companies (NTT EAST-MINAMIKANTO and oth
Slide 71: Changes in Personnel expenses
Changes in Personnel expenses (NTT East Group, NTT West Group) （Billion yen） 1000 500 938.5 885.7 827.6 785.1 738.1 709.4 683.0 673.0 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020E * The scope of aggregation for each of the figures are not audited and are provided for reference only. (24
Slide 72: Broadband Access Services in Japan
Broadband Access Services in Japan Mobile Fixed Mobile FTTH Approx. Approx. 188.46 33.58M subs 150M M subs 30M SoftBank SoftBank market share Approx. 25％ 100M KDDI 20M NTT EAST and KDDI market share Approx. 31％ NTT WEST Approx. 22.0M subs 50M NTT DOCOMO 10M CATV Approx. Approx. DSL Approx. 6.68M sub
Slide 73: Fixed Broadband Business FTTH Subscriptions
Fixed Broadband Business FTTH Subscriptions FTTH Subscriptions (Sum of NTT East and NTT West） * 22.36 Reference: (millions subs) 21.66 FY2019 Breakdown of FTTH Subscriptions (millions subs) 21.08 20.05 20.53 FY2020 Total FTTH Service: +0.70 Hikari Change from preceding Fiscal Year 13.89 Collaboratio
Slide 74: Share Buybacks and Cancellation
Share Buybacks and Cancellation ＜＞︓share holding ratio Buyback from Buyback from Buyback from Disposal of treasury Gov’t and Cancellation Gov’t and Cancellation stock by way of Gov’t and third-party Market Market Market allotment Excess Holdings 118mil. shares Excess Holdings 98mil. shares Treasury
Slide 75: Your Value Partner
Your Value Partner
Slide 76: Transaction to Make NTT DOCOMO a Wholly Owned Subsidiary
Attachment Transaction to Make NTT DOCOMO a Wholly Owned Subsidiary September 29, 2020 1
Slide 77: Background
Background Changes surrounding the telecommunications market Changes in social trends environment Integration of fixed-line and Remote world mobile communications (decentralized society) Multifaceted, multilayered market competition that transcends the New Glocalism level of communications Dynamic c
Slide 78: Toward NTT’s Medium-Term Growth and Development ①
Toward NTT’s Medium-Term Growth and Development ① ◆ Goals Being Pursued ① Development and offering of new services for a remote world ② Centralization of resources and promotion of DX ③ Promotion of research and development on a global scale ④ Strengthening of new types of businesses, including the
Slide 79: Toward NTT’s Medium-Term Growth and Development ②
Toward NTT’s Medium-Term Growth and Development ② In order to pursue our goals, It is essential to strategically leverage resources and assets across the group and accelerate decision-making Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 4
Slide 80: Toward NTT’s Medium-Term Growth and Development ③
Toward NTT’s Medium-Term Growth and Development ➂ ◆ Transaction to Make NTT DOCOMO a Wholly Owned Subsidiary Objective Improved competitiveness of, and growth of, NTT DOCOMO NTT DOCOMO can utilize the capabilities of NTT Communications and NTT Comware and promote new services/solutions and the dev
Slide 81: Primary Initiatives
Primary Initiatives ① Strengthening corporate sales capabilities Creating services that integrate mobile and fixed-line services Creating integrated solutions through the combination of clouds and data ② Strengthening service creation capabilities Strengthening the smart life business and crea
Slide 82: Social Contributions through Initiatives
Social Contributions through Initiatives ① Enhancing the international competitiveness of Japanese industry Development and production of telecommunications equipment, software and services that will be used around the world Contribution to international standards for telecommunications ② Resolv
Slide 83: Overview of Transaction to Make NTT DOCOMO a Wholly Owned Subsidiary
Overview of Transaction to Make NTT DOCOMO a Wholly Owned Subsidiary Implement a Tender Offer for NTT DOCOMO Shares ＜Overview of the Tender Offer＞ September 30 (Wednesday) to Tender Offer Period November 16 (Monday) Tender Offer Price ¥3,900 per share Shares to be 1,090,896,056 shares Purchased
Slide 84: Financing and Financial Policy
Financing and Financial Policy ◆ Financing Tender Offer will be financed through a bridge loan Bridge loan is planned to eventually be taken out with domestic bonds, foreign bonds, bank loans or other forms of financing No stock issuances will be conducted Securitization of receivables and a
Slide 85: Management System after the Transaction
Management System after the Transaction While not yet determined at this point in time, after making NTT DOCOMO a wholly owned subsidiary, NTT intends to consider strengthening coordination throughout the group through measures such as transferring NTT Communications and NTT Comware to NTT DOCOMO
Slide 86: Your Value Partner
Your Value Partner Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 11
Slide 87: Tender offer notice
The tender offer for which this Statement is being submitted (the “Tender Offer”) will be conducted in compliance with the procedures and information disclosure standards set out in the Act, but those procedures and standards are not necessarily the same as the procedures and information disclosure
Slide 88: Frequently Asked Questions
Frequently Asked Questions Q1: Please discuss the purpose and anticipated effects of the transaction to make NTT DOCOMO a wholly owned subsidiary. A: The purpose is to enhance and improve the competitiveness of NTT DOCOMO and the growth of the group as a whole. By utilizing the capabilities of NTT C
Slide 89: Medium-Term Debt Levels
Q5: In order to finance the implementation of the tender offer, the company’s level of indebtedness will increase. What are the company’s plans for this going forward? (updated November 24) A: Although our level of indebtedness will temporarily increase as a result of the tender offer, based on the
Slide 90: Q6: Please discuss your views with respect to rating levels
Q6: Please discuss your views with respect to rating levels. (updated November 24) A: With respect to ratings, given the stable profitability and cash flow generation ability of the group as a whole, we plan to maintain our financial stability by reducing our financial leverage, and stably maintain
Slide 91: Q9: Effect of the transaction on each financial target
Q9: Please discuss the effect of the transaction to make NTT DOCOMO a wholly owned subsidiary on each financial target. Will there be a revision of the financial targets in the Medium-Term Management Strategy? (updated November 24) A: Taking into consideration only the effect of an increase in profi