Ntt Inc · TSE:9432
Ntt — Investor Presentation (November 2018)
34 slides from Ntt's investor presentation, Nov 6, 2018
Slide 1: “Your Value Partner 2025” NTT Group Medium-Term Management Strategy
“Your Value Partner 2025” NTT Group Medium-Term Management Strategy November 6, 2018
Slide 2: Contents
Contents Vision Pillars of Medium-Term Management Strategy Support our customers’ digital transformations Accelerate our own digital transformation Leverage talent, technologies, and assets Promote ESG management, and enhance the returns of shareholders to improve corporate value Mediu
Slide 3: Future Changes in Society and Economy
Future Changes in Society and Economy ～Outlook for around 2030～ Era in which major transformation required for every society and economy 1. Population/Working-age population 8. Urbanization World population continues to rise Progression of urbanization and Japan’s population gradually declines disti
Slide 4: Social Issues and Directions for Solutions
Social Issues and Directions for Solutions Resolution of social issues through digital transformation Social Issues Society 5.0 Environmental issues, Sustainable society achieving both resource/water shortage due to environment and economy population increase and urbanization Increase in disasters/t
Slide 5: NTT Group’s Business Operation = CSR
NTT Group’s Business Operation = CSR We will always be a group who resolves social issues through business operation Reinforce facilities prepared for disasters Diversity and inclusion Reinforce cyber security Contribute to sports activities (e.g. Olympic and Paralympic Games Tokyo 2020) Ensure Unit
Slide 6: Our Vision: Partners and NTT Group
Our Vision Towards a sustainable society/SDGs To resolve social issues through our business operation, NTT Group works together with our partners, as “Your Value Partner.” Partners Social Issue Resolution through business operation Digital Transformation × CSR NTT Group As a Public Utility and a Pri
Slide 7: Our Capabilities for Resolving Social Issues
Our Capabilities for Resolving Social Issues Innovation ESG Evaluations Global As one of the most innovative companies in IP and patent area, Selected as constituents of global leading ESG indices NTT received the award for 7th consecutive year Ensure and operate reliable ICT infrastructure “World I
Slide 8: Accelerating our self-transformation to become “Your Value Partner”
Accelerating our self-transformation to become ”Your Value Partner” Industry Leading Best in Class Intelligence People Diversity and Global/Local Inclusion Cutting Edge Services Technical Expertise Expertise Shared Values Connect Trust Integrity Copyright 2018 NIPPON TELEGRAPH AND TELEPHONE CORPORAT
Slide 9: Pillars of Medium-Term Management Strategy
Pillars of Medium-Term Management Strategy 1. Promote B2B2X model Support 2. Roll out 5th-Generation Wireless our customers’ System a digitalized society = Smart World digital transformations 3. Provide personal services Contribute to realization of 4. Enhance competitiveness in Accelerate global bu
Slide 10: A Digitalized Society = Smart World
A Digitalized Society ＝ Smart World Smart Mobility Smart Factory Smart Sports Eliminate rush/traffic jams Minimize downtime More excitement Energy saving Increase productivity Create new experiences Smart City Smart Healthcare Smart Agri Safe, comfortable living Maintain/improve health Pass on techn
Slide 11: Support our customers’ digital transformations
Support our customers’ digital transformations
Slide 12: 1. Promote B2B2X Model①
1. Promote B2B2X Model① Evolve into B2B2X model using digital services and data management Examples of value creation through B2B2X model Evolution of value chain of agriculture, forestry and Evolution of customer service in fisheries, manufacturing/construction, retail/services retail/services, fin
Slide 13: 1. Promote B2B2X Model②
1. Promote B2B2X Model② Service upgrade, business creation Evolution of customer service in retail/ through combining mobile data and services, finance, etc. corporate-owned data Digital integration of customer contact FinTech using mobile DMP ※1 points such as physical stores, call Proposals
Slide 14: 2. Roll out 5th-Generation Wireless System
2. Roll out 5th-Generation Wireless System Leveraging the characteristics of 5G, create new value in collaboration with variety of partners Activities with partners 5G Trial Site （from May 2017） “Pre-commercial service” 75 trials from Sep. 2019 DOCOMO 5G Open Partner Program （from Feb. 2018） “Co
Slide 15: 3. Provide Personal Services
3. Provide Personal Services Realize “Personal Solutions” led by docomo Support individuals’ lifestyle changes Further expansion of customer base Approx. Personal Solutions 20-40% Revenue opportunity creation Rate Great value and simple rate plans rate reduction ※1 （FY2019/1Q） Expand collaborati
Slide 16: Accelerate our own digital transformation
Accelerate our own digital transformation
Slide 17: 4. Enhance Competitiveness in Global Business①
4. Enhance Competitiveness in Global Business① ”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 18: 4. Enhance Competitiveness in Global Business②
4. Enhance Competitiveness in Global Business② Aug. 2018 Nov. 2018 July. 2019（Plan） NTT NTT NTT Global Holding Company （New） Global Holding Company (Company name：NTT, Inc.) (Company name：NTT, Inc.) NTT Communications NTT Communications Global OpCo （New） Dimension Data Dimension Data ※1 Japan OpCo （N
Slide 19: 5. Drive Self-Digital Transformation in Domestic Business
5. Drive Self-Digital Transformation in Domestic Business Appointed CDO , and promote digitalization measures ※1 Digitalize own operating processes (Realize Connected Value Chain by leveraging AI) Achieve efficiency through smart operations 12 thousand robots not requiring labor ※2 500 operating p
Slide 20: 6. Migrate PSTN to IP Networks
6. 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
Slide 21: Leverage talent, technologies, and assets
Leverage talent, technologies, and assets
Slide 22: 7. Enhance and Globalize R&D①
7. Enhance and Globalize R&D① Promote disruptive R&D to transform the world Reinforce basic research at overseas bases Further transmission/development abroad 1. Global development of achievements − Strengthen delivery and localization structure Create the best/first 2. Globalization of resear
Slide 23: 7. Enhance and Globalize R&D②
7. Enhance and Globalize R&D② Strengthen joint R&D, proactive use of external technologies Expand R&D investment into new growth areas Existing business areas New growth areas Partners Strengthen joint R&D ・ Proactively use external technologies In-house R&D investment into R&D new growth areas
Slide 24: 7. Enhance and Globalize R&D③
7. Enhance and Globalize R&D③ Activate investment in high-growth areas R&D in new areas ¥2 trillion over the next 5 years +10％ （Excludes investment for 5G infrastructure build-out, etc., data centers, and real Estate） Cumulative investment for 5G infrastructure build-out, etc. ¥1 trillion over t
Slide 25: 8. Utilization of Real Estate (Promote Urban Solutions)
8. Utilization of Real Estate (Promote Urban Solutions) Maximize utilization of Group real estate, ICT/energy/environmental technologies, etc., and promote new style of urban solutions beyond conventional real estate development Design/construction Real Estate /maintenance using ICT (AI, robots, IoT
Slide 26: 9. Contribute to Revitalization of Regional Societies/Economies
9. Contribute to Revitalization of Regional Societies/Economies Leverage technologies/assets (equipment), upgrade government/life services, support revitalization of local industry Universities Local Local Local banks governments companies Collaboration with local governments, various partners Commu
Slide 27: 10. Disaster Countermeasures
10. Disaster Countermeasures Past initiatives Further efforts 1. 2. Further reinforce communications infrastructure Improve Secure Critical Consolidate and reinforce Communications Communications telecommunications facilities, etc. Network Reliability • Secure 100,119 and ・Blackout countermeasures
Slide 28: Promote ESG management, and enhance the returns of shareholders
Promote ESG management, and enhance the returns of shareholders to improve corporate value
Slide 29: Promote ESG Management
Promote ESG Management 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 reinforcing
Slide 30: Shareholders Returns: Dividend Policy and Share Buybacks
Shareholders Returns Dividend Policy • Basic policy is steady dividend increases Share Buybacks • Carry out buybacks flexibly to improve capital efficiency Copyright 2018 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 29
Slide 31: Medium-Term Targets
Medium-Term Targets
Slide 32: Medium-Term Targets: Financial Targets
Medium-Term Targets Financial Targets EPS Growth EPS Growth ＋50％ Target FY2023 ※1 （vs. FY2017） ＋50％ Overseas Sales / $25B/ FY2023 Overseas Operating 7％ Income Margin ※2 Approx. Cost Reductions At least ¥800B FY2023 640 yen (in fixed-line/mobile access networks) （vs. FY2017） 425 ※1 yen ROIC 8％ FY2023
Slide 33: Your Value Partner
Your Value Partner
Slide 34: 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