Ntt Inc · TSE:9432
Ntt — Investor Day (2024)
28 slides from Ntt's investor day presentation, 2024
Slide 1: Regional communications growth strategy
Regional communications growth strategy IR DAY 2024 Copyright 2022 NTT CORPORATION
Slide 2: Current Issues; Market Changes and Future Business Strategy; Targeted Direction
１．Current Issues ２．Market Changes and Future Business Strategy ３．Targeted Direction for the Regional Telecommunications Business/NTT East and NTT West Copyright 2022 NTT CORPORATION
Slide 3: Current Issues
１．Current Issues ２．Market Changes and Future Business Strategy ３．Targeted Direction for the Regional Telecommunications Business/NTT East and NTT West Copyright 2022 NTT CORPORATION
Slide 4: Current Issues: Reductions in Net Fiber Optic Growth
Current Issues: Reductions in Net Fiber Optic Growth Responses to the need to transition to faster fiber optic connections, and initiatives for the apartment buildings market, have been insufficient (1.3%) (3.8%) NTT’s Share Numbers in square brackets indicate the share of Company X, which provides
Slide 5: Current Issues: Cost Reduction Trends
Current Issues: Cost Reduction Trends As a result of inflation-related effects (including electricity costs and personnel expenses) and other special factors, cost reduction effects have been reduced Operating Profit (Billions of yen) 420.2 440.0 420.5 437.7 388.3 360.7 290.0 approx.400.0 approx. 36
Slide 6: Market Changes and Future Business Strategy
１．Current Issues ２．Market Changes and Future Business Strategy ３．Targeted Direction for the Regional Telecommunications Business/NTT East and NTT West Copyright 2022 NTT CORPORATION
Slide 7: Explosive Demand for Digitalization and Networks
Explosive Demand for Digitalization and Networks • The digitalization of government agencies and others has accelerated the transition to the cloud, leading to increased demand for WANs • Traffic has concentrated on cloud operators, and demand for networks between data centers has increased • Indivi
Slide 8: Changes in Earnings Structure
Changes in Earnings Structure • The proportion of revenues from services for businesses has increased due to DX, cloud services and other factors • In the future, we anticipate that the proportion of revenues from services for businesses will further increase due to the spread of AI 24.0% 24.1% 22.7
Slide 9: Future Business Strategy
Future Business Strategy 1. Growth Strategy for the Enterprise Network Business 2. Recapturing Market Share in the Fiber Optic Business 3. Reforming the Cost Structure of Existing Business • Reform of Telecommunications Operations 4. Changes in Business Portfolio 5. Further Expanding Growth Business
Slide 10: Direction of Each Business Portfolio
Direction of Each Business Portfolio Market Growth Investments/capital increases Strengthening in response to market expansion Growth/new business:¥300.0 billion Enterprise Business: ¥750.0 billion New Business (Subsidiary) • Solving local social issues SI,etc. • Developing communication Networks in
Slide 11: Evolving and Expanding the Enterprise Network Business
Evolving and Expanding the Enterprise Network Business Making the most of existing optical networks, we will leverage our strengths in regional connections and engineering to expand our network businesses that support the digitalization of society (targeting a ¥25.0 billion increase in profit throug
Slide 12: Supporting Future Network Demand
Supporting Future Network Demand • In response to the further-accelerating increase in telecommunications traffic, we will simultaneously upgrade telecommunications networks and ensure their efficient operation, in order to continue to maintain Japan’s information and telecommunications infrastructu
Slide 13: Current Status of Fiber Optic Services and Future Targets
Current Status of Fiber Optic Services and Future Targets • By strengthening sales and improving the pricing strategies for FLET’s Hikari Cross and the apartment building market business, we plan to expand our market share and improve our profitability, with a goal of generating profit of ¥40.0 bill
Slide 14: Initiatives to Increase Hikari Cross Sales
Initiatives to Increase Hikari Cross Sales （Responding to Demand for Faster Fiber Optic Speeds） We will expand the Hikari base with improved support for high-speed demand by promoting transitions to Hikari Cross, which is expected to increase ARPU, with free installations and other promotional measu
Slide 15: Initiatives in the Apartment Market
Initiatives in the Apartment Market • We will strengthen collaborations with developers and management companies to launch comprehensive apartment building-wide services that meet market needs and have high operating efficiency • We will shift to a business model in which we can maintain medium- and
Slide 16: Reforming Telecommunications Operations through DX and AI
Reforming Telecommunications Operations through DX and AI • We will fully leverage DX and AI to redesign personnel-heavy front and back-office support services ⇒ Enhancing efficiency and transitioning to “zero-touch (automated)” • We are aiming to improve profit by ¥18.0 billion through FY2027 by re
Slide 17: Reforming Telecommunications Operations through DX and AI
Reforming Telecommunications Operations through DX and AI • We will upgrade on-site operations and other manual tasks through the use of AI diagnostic imaging and other technologies • We will fully leverage DX and AI to transition routine repetitive tasks in the operation of NW equipment to “zero-to
Slide 18: Exit from Unprofitable Services
Exit from Unprofitable Services We will aim to improve profit by ¥13.5 billion in FY2027 through the termination of consumer line-related businesses and initiatives to promote the rapid shift to digital services Schedule Profit Improvement Effects (Billions of yen) （FY） 2024 2025 2026 2027 +13.5 ▲Ju
Slide 19: Migration to Alternative PSTN Services
Migration to Alternative PSTN Services • The ¥350.0 billion PSTN service revenue base will be maintained to the fullest extent possible by encouraging migration and improving pricing strategies at various contact opportunities with customers • Migration to alternative services (optical and wireless
Slide 20: Further Expansion of Growth Businesses (Solmare Expansion)
Further Expansion of Growth Businesses （Solmare Expansion） • In addition to expanding Comic C’MoA, which is one of the largest domestic e-book stores in Japan (with more than 40 million monthly users and over 1.40 million books), we are strengthening comprehensive initiatives from original comic pro
Slide 21: Further Expansion of Growth Businesses (NTT e-Asia Initiatives)
Further Expansion of Growth Businesses (NTT e-Asia Initiatives) • We are currently developing an FTTH maintenance business in Bình Dương Province, Vietnam, leveraging our know-how for high-quality telecommunications infrastructure development • We are expanding our “social infrastructure business” t
Slide 22: Initiatives to Restore Business Results (Summary)
Initiatives to Restore Business Results (Summary) (Billions of yen) 437.7 + Expansion of new businesses, 420.5 α further re-evaluation of fees, etc. Streamlining Shifting to profit Re-evaluation of personnel and Non-Core 3 business portfolio growth with Operating Profit Assets FY2024 as the + FY2027
Slide 23: Targeted Direction for the Regional Telecommunications Business
１．Current Issues ２．Market Changes and Future Business Strategy ３．Targeted Direction for the Regional Telecommunications Business/NTT East and NTT West Copyright 2022 NTT CORPORATION
Slide 24: Targeted Direction for the Regional Telecommunications Business/NTT East and NTT West
Targeted Direction for the Regional Telecommunications Business/NTT East and NTT West • Being telephone line infrastructure providers + network integrators that support the specific and growing demands of society • Being platformers for Public Entities (Social Infrastructure Business) • Being compan
Slide 25: Achievement of a Circular local Economy Society
Achievement of a Circular local Economy Society Next-Generation Digitalization of Biogas Power Smart Stores Greenhouse Horticulture Culture and Art Generation Introduced in city halls and roadside stations Solving Failure-proof agriculture through IoT/AI, etc. An exhibition held to digitalize Methan
Slide 26: Innovating a Sustainable Future for People and Planet
Innovating a Sustainable Future for People and Planet
Slide 27: Slide 27
Slide 28: 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