Ntt Inc · TSE:9432
Ntt — Q3 2021 Earnings Presentation
31 slides from Ntt's earnings presentation, Feb 7, 2022
Slide 1: Financial Results for the Nine Months Ended December 31, 2021
Financial Results for the Nine Months Ended December 31, 2021 February 7, 2022
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
Slide 3: Table of Contents
Table of Contents Overview of Consolidated Results for FY2021.3Q Status of Consolidated Results for FY2021.3Q Contributing Factors by Segment for FY2021.3Q Financial Results Forecast Topics Appendix Copyright 2022 NTT CORPORATION 2
Slide 4: Overview of Consolidated Results for the Nine Months Ended December 31, 2021
Overview of Consolidated Results for the Nine Months Ended December 31, 2021 Copyright 2022 NTT CORPORATION 3
Slide 5: Status of Consolidated Results for FY2021.3Q
Status of Consolidated Results for FY2021.3Q Year-on-year, both operating revenues and operating income increased Operating revenues, operating income and profit all reached record- high levels Status of Consolidated Results Operating Revenues: ¥8,923.2B <+¥185.2B [+2.1%] year-on-year> Opera
Slide 6: Contributing Factors by Segment for FY2021.3Q
Contributing Factors by Segment for FY2021.3Q Operating Revenues <Year-on-year:＋185.2> (Billions of yen) Long Distance and Mobile Regional Data Other Elimination of International Communications Communications Communications Business Inter-Segment Communications Business Business Business Transaction
Slide 7: FY2021.Q3 Details for NTT DOCOMO
FY2021.Q3 Details for NTT DOCOMO Despite a decrease in profits compared to the prior year, the Smart Life area continues to steadily grow Operating Mobile (Billions of yen) Communications Income Service Impact of 7,696 821.8 Revenues Revision of Point Accounting Smart Life System in the Area Earni
Slide 8: FY2021 NTT DOCOMO Quarterly Income Trends
FY2021 NTT DOCOMO Quarterly Income Trends Income has been steadily improving each quarter, shifting to profitability for Q3 on a standalone basis, and with further increases expected in Q4 Operating Income (Year-on-Year Increase/Decrease) (Billions of yen) FY2021.Q1 FY2021.Q2 FY2021.Q3 FY2021.Q4 (
Slide 9: Financial Results Forecast
Financial Results Forecast Copyright 2022 NTT CORPORATION 8
Slide 10: FY2021 Financial Results Forecast
FY2021 Financial Results Forecast Operating revenues, operating income, profit, EPS and overseas operating income margin forecasts have all been revised upwards, reflecting strong business results Consolidated Revenues and Income Plan Initial Forecast Financial Results Forecast Change from (Announ
Slide 11: Revision of NTT Ltd. Financial Results Forecast
Revision of NTT Ltd. Financial Results Forecast (Billions of yen) Operating Income (Compared to Initial Forecast: (19.0)) [Based on a rate of 104 yen per dollar from the time of the Initial Forecast] Impact of COVID-19, semiconductor shortages, etc. Acceleration 22.0 7.0 of structural reforms Effect
Slide 12: FY2021 Financial Results Forecast (by Company)
FY2021 Financial Results Forecast (by Company) Operating Operating Change from Change from Revenues Initial Forecast Income Initial Forecast NTT DOCOMO ¥4,790.0B - ¥920.0B - NTT East ¥1,730.0B - ¥273.0B - NTT West ¥1,470.0B - ¥156.0B - NTT Communications ¥1,075.0B - ¥138.0B - NTT Ltd. ¥1,080.0B - ¥3
Slide 13: Operating Revenue and Operating Income Trends
Operating Revenue and Operating Income Trends In FY2018, there continued to be increases in both revenues and income, while FY2019 saw a shift to a downward trend in income as a result of the effect of the introduction of new billing plans by NTT DOCOMO, among other factors In FY2020, while cont
Slide 14: Shareholder Returns
Shareholder Returns Dividends Increase in the year-end dividend of ¥5 over the forecast at the beginning of FY2021 to ¥60 Annual dividend per share forecast of ¥115 (an increase of ¥10 over the prior fiscal year) ■Completion of Share Buybacks Completed share buybacks of ¥250.0 billion (79,358,
Slide 15: Topics
Topics Copyright 2022 NTT CORPORATION 14
Slide 16: Cyber Security Business
①Cyber Security Business Reorganizing NTT Security (from April 1st, 2022) Strengthen Cybersecurity NTT Security Holdings (newly established) Capability NTT Enhancement of Practical R&D Security Service Creation Capabilities NTT Enhancement of Security SEs Communications Client Supports Support to
Slide 17: Consolidation of Energy-Related Operations to Accelerate Smart Energy Business
②Consolidation of Energy-Related Operations to Accelerate the Expansion of the Smart Energy Business NTT Group’s functions related to energy will be consolidated under “NTT Anode Energy” to achieve “NTT and Society’s carbon neutrality,” “local energy generation for local consumption” and “strength
Slide 18: Transformation to a New Business Style Premised on Remote Work
③Transformation to a New Business Style Premised on Remote Work • Development of an IT Environment that Enables Employees to Work From Anywhere Introduction of (Staff/Sales): Scheduled to complete introduction in FY2022 Zero-Trust Systems (NTT Communications, NTT DATA, NTT: complete; NTT East/West,
Slide 19: Launch of "home Denwa" Fixed-Line Telephone Service
④Launch of “home Denwa” Fixed-Line Telephone Service NTT DOCOMO will offer a 0AB-J fixed-line telephone service using the mobile network (scheduled to begin in March 2022) • Able to use the service just by connecting an in-use phone to a service device (no installation required) • Two plans will b
Slide 20: Overview of Medium-Term Management Strategy Initiatives
⑤Overview of Medium-Term Management Strategy Initiatives Overview since November 2021 • NTT Communications and NTT COMWARE became subsidiaries as part of the new DOCOMO Group (NTT DOCOMO, NTT Communications, NTT COMWARE; January) Growth and Strengthening • Launched SA (Standalone) 5G services for bu
Slide 21: Appendix
Appendix Copyright 2022 NTT CORPORATION 20
Slide 22: Broadband Services
Broadband Services Copyright 2022 NTT CORPORATION 21
Slide 23: Fixed-Line Broadband Services Subscriptions
Fixed-Line Broadband Services Subscriptions （Thousands） Number of Subscriptions Net Increase Copyright 2022 NTT CORPORATION 22
Slide 24: Mobile Communications Services Subscriptions
Mobile Communications Services Subscriptions （Thousands） Number of Subscriptions 5G LTE（Xi） FOMA 82,916 83,454 83,846 84,212 80,987 81,751 82,632 80,326 80,615 80,000 149 376 1,413 3,091 5,351 6,942 8,952 10,370 14 60,000 61,664 62,397 63,476 64,012 64,210 63,172 63,001 62,242 62,392 40,000 20,000 1
Slide 25: Financial Information
Financial Information Copyright 2022 NTT CORPORATION 24
Slide 26: Details of Consolidated Statement of Income
Details of Consolidated Statement of Income (Billions of yen) Operating Revenues <Year-on-year: ＋185.2> System integration IP/packet services / Sales of Voice related Other services communications telecommunications services services equipment 37.5 8,923.2 182.6 8,738.0 15.7 19.2 Fixed voice: (9.9)
Slide 27: Details of Consolidated Balance Sheet
Details of Consolidated Balance Sheet 23,544.4[+578.9] (Billions of yen) 22,965.5 Liabilities Liabilities 14,843.4 [+80.9] 14,762.4 Assets Assets 22,965.5 23,544.4 [+578.9] Equity Equity 8,701.0 8,203.0 [+497.9] Retained earnings Retained earnings 6,973.9 7,068.0 [(94.1)] Treasury stock Treasury sto
Slide 28: Details of Consolidated Cash Flows
Details of Consolidated Cash Flows Cash Flows Cash Flows Cash Flows (Billions of yen) from Operating from Investing FCF from Financing Activities（4） Activities Activities (A) (B) (A)+(B) Copyright 2022 NTT CORPORATION 27
Slide 29: Details of Capital Investment
Details of Capital Investment 1,728.3 1,750.0 (Billions of yen) FY2020.3Q FY2021.3Q Copyright 2022 NTT CORPORATION FY2020 FY2021E 28
Slide 30: Shareholder Returns
Shareholder Returns Dividends per Share ● Pay-out Ratio （Yen） 115 105 90 95 75 55 60 35 40 42.5 45 30 30 12.5 15 15 20 22.5 27.5 38.2% 37.2% 38.0% 40.9% 41.1% 42.3% 37.6% 32.3% 31.2% 33.4% 31.4% 30.7% 32.9% 12.3% 13.0% 27.5% 23.0% 19.5% 17.1% FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 F
Slide 31: Your Value Partner
Your Value Partner
Nippon Telegraph & Telephone (NTT) — Q3 2021 Earnings Presentation on 6ix