Slide 1: IR Presentation
©) NTT IR Presentation Ver.240802
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 FY2024.1Q Consolidated Results Initiatives of a sustainable society, etc. Status of Consolidated Results for FY2024.1Q 4 Sustainability Charter 62 Contributing Factors by Segment for FY2024.1Q 5 Targets of “NTT Green Innovation toward 2040” 63 FY2024 Results Forecast Outlook of
Slide 4: Overview of FY2024.1Q Consolidated Results
Overview of FY2024.1Q Consolidated Results Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 3
Slide 5: Status of Consolidated Results for FY2024.1Q
Status of Consolidated Results for FY2024.1Q ◼ Operating Revenues increased, Operating Profit decreased and Profit decreased ◼ Operating Revenues reached new record-high levels Status of Consolidated Results ⚫ Operating Revenues: ¥3,240.0B <+¥129.0B [+4.1%] year-on-year> ⚫ Operating Profit: ¥435.8B
Slide 6: Contributing Factors by Segment for FY2024.1Q
Contributing Factors by Segment for FY2024.1Q Operating Revenues <Year-on-year:＋129.0> Others (Billions of yen) Integrated ICT Regional Global Solutions (Real Estate, Elimination of Business Segment Communications Business Segment Energy and Others) Inter-Segment Business Segment Transactions 3,240.
Slide 7: FY2024 Results Forecast
FY2024 Results Forecast Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 6
Slide 8: 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 9: 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 10: 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 11: 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 10
Slide 12: 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 11
Slide 13: 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 14: Further Increase 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 Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 13
Slide 15: 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 16: 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 17: 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 18: Data-Driven Creation of New Value: DX/Data
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 19: 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 20: Achievement of a Circular Economy Society: Green Solutions
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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 31
Slide 33: Integrated ICT Business
Integrated ICT Business Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 32
Slide 34: Growth and Business Portfolio Transformation
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—from large co
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: 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 37: 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 ✓ Purchase of investment trust using dPOINT 2024 autumn (planned) ✓ Grant investment trust o
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 @ 2024 Disney & Upsell communications Upsell communications and grow Reduce churns and expan
Slide 39: Consumer: Service mix progress
Progress of FY2024.1Q <Consumer> Service mix ✓ Finance/payment transactions grew by 14% year-on-year ✓ Aim to expand customer base and revenues leveraging the launch of “eximo poikatsu” program Finance/payment transactions Service mix proposals (Billions of yen) Launched Aug. 1, 2024 Data allowance
Slide 40: Consumer: Marketing solutions
Progress of FY2024.1Q <Consumer> Marketing solutions ✓ Marketing solutions revenues increased as a result of capital alliance with Intage ✓ Enhanced value offered to partner companies through advancement of marketing solutions Marketing solutions revenues Advancement of marketing solutions (Billions
Slide 41: 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 42: 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 43: Enterprise progress
Progress of FY2024.1Q <Enterprise> ✓ Integrated solutions revenues grew strongly ✓ Rolling out solutions aimed at solving social/industrial issues Integrated solutions revenues Further expansion of integrated solutions (Billions of yen) Favorable pace of deployment of solutions targeting large enter
Slide 44: 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 45: Global Solutions Business
Global Solutions Business Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 44
Slide 46: Efforts at Regional Units
Progress of FY2024.1Q Efforts at Regional Units • Won digitization projects leveraging implementation capabilities such as cloud buiding expertise • Won global projects by utilizing our assets Projects for digitization of Business development in EMEAL utilizing assets large-scale systems in the cent
Slide 47: Progress of Data Center Business
Progress of FY2024.1Q Progress of Data Center Business • Revenue and EBITDA increased steadily in Q1. Aim for 1.7 times EBITDA*1 in FY2027 (compared to FY2023) • Plan investment of 1.5 trillion yen or more between FY2023 and FY2027 Revenue EBITDA CAPEX FY24.Q1 $0.59 Billion $0.19 Billion $0.41 Billi
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: Expansion and Upgrade of Data Centers
（2023年5月公表） 新中期経営戦略 より New value creation & Sustainability 2027 powered by IOWN 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 lea
Slide 51: 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 52: 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 53: 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 54: 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 55: Regional Communications Business
Regional Communications Business Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 54
Slide 56: 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 57: 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 58: 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 59: 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 60: Expanding Social Infrastructure Businesses (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 61: 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 62: Initiatives of a sustainable society, etc.
Initiatives of a sustainable society, etc. Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 61
Slide 63: 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 64: 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 65: 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 66: 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 67: 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 68: 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 69: 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: R&D
R&D Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 69
Slide 71: 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 72: Advantages of IOWN
Advantages of IOWN Low Power Large Capacity, Low Consumption High Quality Latency 100 times greater 125 times greater 1/200th of the power efficiency(1) transmission capacity(2) end-to-end latency(3) Transmission Medium Wavelength (Optical Signal) ・Transmission in units of wavelengths Optical Fiber
Slide 73: Photonics-Electronics Device Roadmap
Photonics-Electronics Device Roadmap From FY2022 From FY2025 From FY2028 From FY2032 Optical engine Connections Board Connections Integrated between Connections between Photonics Datacenters Chips Chips PEC-1 PEC-2 PEC-3 PEC-4 Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 72
Slide 74: 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 75: 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 76: 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 77: 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 78: tsuzumi's 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 79: 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 80: 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 81: Strategy for tsuzumi
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 80
Slide 82: Promoting the Further Development of tsuzumi
Promoting the Further Development of tsuzumi ◼ Since commercialization in March 2024, customers from a variety of fields have indicated interest, with over 400 proposals for implementation ◼ Going forward, NTT will collaborate with its partners to accelerate the expansion of tsuzumi both domesticall
Slide 83: Shareholder Returns
Shareholder Returns Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 82
Slide 84: Shareholder Returns
Shareholder Returns Share Buybacks * ◼ Share Buybacks in order to improve capital efficiency and enhance shareholder returns ◼ Details of Share Buybacks ・Aggregate Amount: Up to ¥200.0 billion ・Aggregate Number of Shares: Up to 1,400,000,000 shares ・Buyback Period: From August 8, 2024 to March 31, 2
Slide 85: Record of Share Buybacks
Record of Share Buybacks Amount of Share Buybacks (Billions of yen) Up to 200.0* * On August 7, 2024, the Board of Directors of NTT resolved to buy back shares in an amount up to ¥200.0 billion. Buyback Period: August 8, 2024 to March 31, 2025. Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATI
Slide 86: Changes in Dividend
Changes in Dividend （Yen） 5.2 5.0 85% 4.0 Dividend per share 65% Payout Ratio 3.0 45% 2.0 40.9% 41.1% 42.3% 40.0% 37.2% 38.0% 33.4% 34.9% 34.5% 33.8% 31.2% 38.2% 31.4% 32.9% 32.3% 30.7% 25% 0.5 1.0 27.5% 23.0% 19.5% 17.1% 12.3% 13.0% 0.0 5% • FY2003-FY2017, financial statements were prepared in acco
Slide 87: Number of Shareholders
Number of Shareholders Number of Shareholders / Age Composition Number of Age Announcement Shareholders Composition*1% 3% 6% of Stock Split Compared to before the stock split (March 2023), the number of shareholders has increased by 2.5x 2.26 to 2.26 million (+1.34 million), setting a new record hig
Slide 88: Financial Data, etc.
Financial Data, etc. Copyright 2024 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 87
Slide 89: 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 90: 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） 1.8 1.9 1.8 1.7 1.8 1.6 1.7 ■ Operating 1.5 1.6 Income 1.4 /Operating 1.28 1.18 1.21 Profit 1.10 （Trillion yen） 0.91 0.86 0.92 0.80 0.85 ■ Net Income 0.74 * /Profit 13.9 15.1
Slide 91: 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 92: 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 93: 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 94: Changes in asset composition
Changes in asset composition (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 based on ce
Slide 95: 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 96: 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 97: Changes of Outstanding Shares
Changes of Outstanding Shares (Hundred million shares) 1,400 1,276 Cumulative total of shares decreased by around ▲34% 1,200 (▲2.6% Average Decrease Annually) 1,000 837 800 600 400 200 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024E (Note1) Outsta
Slide 98: Age Distribution of Employees at NTT East and NTT West
Age Distribution of Employees at NTT East and NTT West (As of March 31, 2024） Number of Employees 4,000 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 99: 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 100: Broadband Access Services in Japan
Broadband Access Services in Japan Mobile Fixed Rakuten mobile market share Mobile Approx. 3％ Approx. Approx. FTTH 222.00M subs 200M 40M 40.35M 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 89.94M sub
Slide 101: 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 102: Innovating a Sustainable Future for People and Planet
Innovating a Sustainable Future for People and Planet