Ntt Inc · TSE:9432

Ntt — Q1 2020 Earnings Presentation

27 slides from Ntt's earnings presentation, Aug 11, 2020

  1. Slide 1: Financial Results for the Three Months Ended June 30, 2020 and Forecasts

    Financial Results for the Three Months Ended June 30, 2020 and Financial Forecasts for the Fiscal Year Ending March 31, 2021 August 11, 2020

  2. 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

  3. Slide 3: Table of Contents

    Table of Contents  Overview of Consolidated Results for FY2020.1Q  Status of Consolidated Results for FY2020.1Q  Contributing Factors by Segment for FY2020.1Q  FY2020 Results Forecast  Overview of FY2020 Financial Forecasts  FY2020 Forecast Summary  FY2020 Forecast Summary by Segment  Topics

  4. Slide 4: Overview of Consolidated Results for the Three Months Ended June 30, 2020

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

  5. Slide 5: Status of Consolidated Results for FY2020.1Q

    Status of Consolidated Results for FY2020.1Q  Operating Revenues and Operating Income decreased as a result of the impact of COVID-19, among other factors Status of Consolidated Results  Operating Revenues: ¥2,766.5B <(¥149.0B) [ (5.1%)] year-on-year >  Operating Income: ¥497.6B < (¥7.6B) [ (1.5%

  6. Slide 6: Contributing Factors by Segment for FY2020.1Q

    Contributing Factors by Segment for FY2020.1Q (Billions of yen) Operating Revenues <Year-on-year:(149.0)> Mobile Regional Long distance and Data Other elimination of communications communications international communications business inter-segment business business communications business transactio

  7. Slide 7: FY2020 Results Forecast

    FY2020 Results Forecast Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 6

  8. Slide 8: 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

  9. Slide 9: 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)

  10. Slide 10: 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 ＋¥

  11. Slide 11: FY2020 Forecast Summary by Segment

    FY2020 Forecast Summary by Segment (Billions of yen) Operating Revenues <Year-on-year:(399.4)> Mobile Regional Long distance and Data Other elimination of communications communications international communications business inter-segment business business communications business transactions business

  12. Slide 12: Topics

    Topics Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 11

  13. Slide 13: Main Initiatives in Response to COVID-19 (1/3)

    Main Initiatives in Response to COVID-19 (1/3)  Improved treatment and environments to support telework-centered work styles • Rate of working from home* is 55％ (as of July 31, 2020) • Introduction of “Remote Work Allowance,” “Commuting Cost Reimbursements (Abolition of Commuter Pass),” and “Super

  14. Slide 14: Main Initiatives in Response to COVID-19 (2/3)

    Main Initiatives in Response to COVID-19 (2/3)  Launch of new services for a remote world ～First wave of new service strategy (further enhancing the service lineup in the future)～ ① “NeWork” online workspace (NTT Com, launching for free* beginning at the end of August 2020)  Provides safe and secu

  15. Slide 15: Main Initiatives in Response to COVID-19 (3/3)

    Main Initiatives in Response to COVID-19 (3/3) ④ “Smart Government Platform NaNaTsu” (NTT Data, launching free trials beginning in August 2020, with planned commercial launch beginning in October 2020)  Automation of over 100 government work processes within the fiscal year through shared RPA/AI-OC

  16. Slide 16: Overview of Medium-Term Management Strategy Initiatives

    Overview of Medium-Term Management Strategy Initiatives Roll Out 5th- • Completed buildout of stations to all prefectures and Generation administrative divisions in Japan (as of June 30, 2020) Wireless System • In collaboration with NEC, will achieve a “new made-in- Enhance and Japan” by driving ope

  17. Slide 17: Appendix

    Appendix Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 16

  18. Slide 18: Broadband Services

    Broadband Services Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 17

  19. Slide 19: Fixed-Line Broadband Services Subscriptions

    Fixed-Line Broadband Services Subscriptions （Thousands） Number of Subscriptions 25,000 21,923 22,308 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 14,888 10,000 5,000 8,388 8,205 8,058 7,930 7,770 7,666 7,420 0 2019.3 2019.6 2019.9 2019.12 2020.3 2020.6 2

  20. Slide 20: Mobile Communications Services Subscriptions

    Mobile Communications Services Subscriptions （Thousands） Number of Subscriptions 5G LTE（Xi） FOMA 80,326 80,615 81,041 78,453 78,896 79,203 79,670 80,000 14 149 2,542 60,000 55,872 57,285 58,542 59,897 61,664 62,397 62,969 40,000 20,000 22,581 21,611 20,661 19,772 18,648 18,069 15,530 0 2019.3 2019.6

  21. Slide 21: Financial Information

    Financial Information Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 20

  22. Slide 22: Details of Consolidated Statement of Income

    Details of Consolidated Statement of Income (Billions of yen) Operating Revenues <Year-on-year: (149.0)> Voice related IP/packet System integration Other services services communications services / Sales of services telecommunications equipment 50.3 17.9 117.4 2,915.4 0.8 Fixed voice: (21.4) System

  23. Slide 23: Details of Consolidated Balance Sheet

    Details of Consolidated Balance Sheet (Billions of yen) 23,420.2[+406.1] 23,014.1 Liabilities Liabilities 11,584.1 11,551.5 [+32.6] Assets Assets 23,014.1 23,420.2 Equity [+406.1] Equity 11,462.6 11,836.2 [＋373.5] Retained earnings Retained earnings 6,598.3 [＋98.3] 6,499.9 Treasury stock Treasury st

  24. Slide 24: 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) 1,000 FY2019.1Q FY2020.1Q Increase/decrease from the same period of the previous fiscal year 485.9 (424

  25. Slide 25: Details of Capital Investment

    Details of Capital Investment (Billions of yen) 1,806.6 1,730.0 FY2019.1Q FY2020.1Q FY2019 FY2020E Copyright 2020 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 24

  26. Slide 26: Shareholder Returns

    Shareholder Returns (Billions of yen) Share Buybacks 539.4 501.1 381.7 406.5 366.5 374.1 338.1 258.0 235.2 200.0 150.0 120.0 100.0 94.4 93.6 86.2 To be determined FY1999 FY2002 FY2003 FY2004 FY2005 FY2007 FY2008 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020E （Yen） Dividends p

  27. Slide 27: Your Value Partner

    Your Value Partner

Nippon Telegraph & Telephone (NTT) — Q1 2020 Earnings Presentation on 6ix