Ntt Inc · TSE:9432

Ntt — Q2 2020 Earnings Presentation

26 slides from Ntt's earnings presentation, Nov 6, 2020

  1. Slide 1: Financial Results for the Six Months Ended September 30, 2020

    Financial Results for the Six Months Ended September 30, 2020 November 6, 2020

  2. Slide 2: Forward-looking statements and translation 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

  3. Slide 3: Table of Contents

    Table of Contents  Overview of Consolidated Results for FY2020.2Q  Status of Consolidated Results for FY2020.2Q  Contributing Factors by Segment for FY2020.2Q  Topics  Appendix Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 2

  4. Slide 4: Overview of Consolidated Results for the Six Months Ended September 30, 2020

    Overview of Consolidated Results for the Six Months Ended September 30, 2020 Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 3

  5. Slide 5: 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)

  6. Slide 6: 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

  7. Slide 7: 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

  8. Slide 8: Shareholder Returns

    Shareholder Returns 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, 2020 to

  9. Slide 9: Topics

    Topics Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 8

  10. Slide 10: 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

  11. Slide 11: 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

  12. Slide 12: 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

  13. Slide 13: 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

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: Appendix

    Appendix Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 15

  17. Slide 17: Broadband Services

    Broadband Services Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 16

  18. Slide 18: Fixed-Line Broadband Services Subscriptions

    Fixed-Line Broadband Services Subscriptions （Thousands） Number of Subscriptions 25,000 21,923 22,144 22,359 21,260 21,416 21,563 21,658 21,078 20,000 15,000 12,690 13,055 13,357 13,633 13,888 14,257 14,601 14,968 10,000 5,000 8,388 8,205 8,058 7,930 7,770 7,666 7,543 7,391 0 2019.3 2019.6 2019.9 201

  19. Slide 19: Mobile Communications Services Subscriptions

    Mobile Communications Services Subscriptions Number of Subscriptions （Thousands） 5G LTE（Xi） FOMA 80,326 80,615 80,987 81,041 78,453 78,896 79,203 79,670 376 80,000 14 149 2,542 60,000 55,872 57,285 58,542 59,897 61,664 62,397 63,476 62,969 40,000 20,000 22,581 21,611 20,661 19,772 18,648 18,069 17,1

  20. Slide 20: Financial Information

    Financial Information Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 19

  21. Slide 21: Details of Consolidated Statement of Income

    Details of Consolidated Statement of Income (Billions of yen) Operating Revenues <Year-on-year:(178.2)> Voice related IP/packet System integration Other services services communications services / Sales of services telecommunications equipment 93.8 44.7 152.0 5,889.6 22.9 Fixed voice: (36.7) System

  22. Slide 22: Details of Consolidated Balance Sheet

    Details of Consolidated Balance Sheet (Billions of yen) 23,014.1 22,856.0(158.1) Liabilities Liabilities 11,551.5 10,623.7 (927.8） Assets Assets 23,014.1 22,856.0 (158.1) Equity Equity 12,232.3 [＋769.7] 11,462.6 Retained earnings Retained earnings 6,867.6 [＋367.7] 6,499.9 Treasury stock Treasury sto

  23. Slide 23: Details of Consolidated Cash Flows

    Details of Consolidated Cash Flows (Billions of yen) Cash Flows Cash Flows Cash Flows from Operating from Investing FCF from Financing Activities Activities Activities 000000000000 (A) (B) (A)+(B) Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 22

  24. Slide 24: Details of Capital Investment

    Details of Capital Investment (Billions of yen) 1,806.6 1,730.0 2019年度4-9 2020年度4-9 FY2019 FY2020E Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 23

  25. Slide 25: Shareholder Returns

    Shareholder Returns (Billions of yen) Share Buybacks 539.4 501.1 381.7 406.5 366.5 374.1 338.1 Up to 258.0 235.2 250.0* 200.0 150.0 120.0 100.0 94.4 93.6 86.2 FY1999 FY2002 FY2003 FY2004 FY2005 FY2007 FY2008 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020E * On November 6, 2020

  26. Slide 26: Your Value Partner

    Your Value Partner

Nippon Telegraph & Telephone (NTT) — Q2 2020 Earnings Presentation on 6ix