Ntt Inc · TSE:9432

Ntt — FY2020 3Q Earnings Presentation

93 slides from Ntt's earnings presentation, Feb 2, 2021

Slide 2: 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
Slide 3: Contents
Contents Overview of Consolidated Results for FY2020.3Q and FY2020 Forecast Other Businesses 2020.3Q Financial Results – Key Points 4-5 Promote B2B2X Model 52 Status of Consolidated Results for FY2020.3Q 6 Business Partnership with Mitsubishi Corporation 53 Contributing Factors by Segment for FY2020
Slide 4: Overview of Consolidated Results for FY2020.3Q and FY2020 Forecast
Overview of Consolidated Results for FY2020.3Q and FY2020 Forecast Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 3
Slide 5: 2020.3Q Financial Results – Key Points (1)
2020.3Q Financial Results – Key Points (1) ・ FY2020 3Q operating revenues decreased, while operating income increased. As a result of the impact of COVID-19 and other factors, operating revenues decreased by 124.7 billion yen (a decrease of 1.4%) year-over-year, but due to an increase in operating i
Slide 6: 2020.3Q Financial Results – Key Points (2)
2020.3Q Financial Results – Key Points (2) Q：Please discuss your considerations with respect to the initiatives to improve NTT DOCOMO’s competitiveness and growth as a result of making it a wholly owned subsidiary. A：As one method of improving NTT DOCOMO’s competitiveness and growth, we are consider
Slide 7: Status of Consolidated Results for FY2020.3Q
Status of Consolidated Results for FY2020.3Q ◼ Operating Revenues decreased, while Operating Income and Profit increased Status of Consolidated Results ⚫ Operating Revenues: ¥8,738.0B <(¥124.7B) [ (1.4%)] year-on-year > ⚫ Operating Income: ¥1,502.3B < +¥51.9B [ +3.6%] year-on-year > ⚫ Profit*: ¥831.
Slide 8: Contributing Factors by Segment for FY2020.3Q
Contributing Factors by Segment for FY2020.3Q (Billions of yen) Operating Revenues <Year-on-year:(124.7)> Mobile Regional Long distance and Data Other elimination of communications communications international communications business inter-segment business business communications business transactio
Slide 9: FY2020 Forecast Summary
FY2020 Forecast Summary ※Announced on August 11,2020 ( EPS revised on November 6 ) 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
Slide 10: FY2020 Financial Forecast Summary (by Company)
FY2020 Financial Forecast Summary (by Company) ※Announced on August 11,2020 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
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
Slide 12: Topics
Topics Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 11
Slide 13: Main Initiatives in Response to COVID-19
Main Initiatives in Response to COVID-19 ◼ Ensure the stable provision of services as a designated public institution • Status of fixed communications service traffic Current State of Emergency Previous State of Emergency (week of January 25, 2021) (week of April 20, 2020) compared to week of Novemb
Slide 14: Initiatives to Create a Remote World (1/2)
Initiatives to Create a Remote World (1/2) ◼ New service brand, “Remote World” Sharing widely its world-view through various promotions, and introducing services worldwide Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 13
Slide 15: Initiatives to Create a Remote World (2/2)
Initiatives to Create a Remote World (2/2) ◼ Launch of new services <Expanding the work that can be done remotely> ① “AI Denwa” DX services for call centers AI Phone Service RPA (NTT DOCOMO; launched December 10, 2020) ✓ Automates call center operator functions through AI and RPA Automated phone Aut
Slide 16: Entry into New Businesses and Business Areas (1/3)
Entry into New Businesses and Business Areas (1/3) ① City planning that maximizes the cutting-edge ICT technology “Urban DTCTM”* (NTT Urban Solutions; announced February 2, 2021) ✓ Launch verification testing of “Urban DTCTM platform,” which links the real and virtual spaces ⁃ Optimized energy contr
Slide 17: Entry into New Businesses and Business Areas (2/3)
Entry into New Businesses and Business Areas (2/3) ③ Established a new company in the culture and arts field, “NTT ArtTechnology” (NTT East; launched operations on December 1, 2020) ✓ Facing regional culture and arts, will promote initiatives to protect and utilize various tangible and intangible cu
Slide 18: Entry into New Businesses and Business Areas (3/3)
Entry into New Businesses and Business Areas (3/3) ⑤ Initiatives for 5G/Beyond 5G ✓ Agreed to collaborate on the “5G Open RAN Ecosystem,” which provides the best Open RAN for overseas telecommunications carriers (NTT DOCOMO; February 3, 2021) ✓ Signed a basic agreement to establish a consortium to p
Slide 19: Transaction to Make NTT DOCOMO a Wholly Owned Subsidiary
Transaction to Make NTT DOCOMO a Wholly Owned Subsidiary Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 18
Slide 20: Background
Background Changes surrounding the telecommunications market Changes in social trends environment Integration of fixed-line and Remote world mobile communications (decentralized society) Multifaceted, multilayered market competition that transcends the New Glocalism level of communications Dynamic c
Slide 21: Toward NTT's Medium-Term Growth and Development (1)
Toward NTT’s Medium-Term Growth and Development (1) ◆ Goals Being Pursued ① Development and offering of new services for a remote world ② Centralization of resources and promotion of DX ③ Promotion of research and development on a global scale ④ Strengthening of new types of businesses, including th
Slide 22: Toward NTT's Medium-Term Growth and Development (2)
Toward NTT’s Medium-Term Growth and Development (2) ◆ Transaction to Make NTT DOCOMO a Wholly Owned Subsidiary Objective ➢ Improved competitiveness of, and growth of, NTT DOCOMO NTT DOCOMO can utilize the capabilities of NTT Communications and NTT Comware and promote new services/solutions and the d
Slide 23: Primary Initiatives
Primary Initiatives ① Strengthening corporate sales capabilities ✓ Creating services that integrate mobile and fixed-line services ✓ Creating integrated solutions through the combination of clouds and data ② Strengthening service creation capabilities ✓ Strengthening the smart life business and crea
Slide 24: Social Contributions through Initiatives
Social Contributions through Initiatives ① Enhancing the international competitiveness of Japanese industry ✓ Development and production of telecommunications equipment, software and services that will be used around the world ✓ Contribution to international standards for telecommunications ② Resolv
Slide 25: Financing and Financial Policy
Financing and Financial Policy ◆ Financing ✓ Funds required to make NTT DOCOMO a wholly owned subsidiary had been financed through a bridge loan ✓ Bridge loan is planned to eventually be taken out with domestic bonds, foreign bonds, bank loans or other forms of financing ( Domestic bonds were issued
Slide 26: NTT Group Medium-Term Management Strategy
NTT Group Medium-Term Management Strategy Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 25
Slide 27: Medium-Term Targets
Medium-Term Targets Financial Targets EPS Growth EPS Growth ＋50％ ※2 Target FY2023 （vs. FY2017）＋50％ Overseas Sales / $25B/ FY2023 Overseas Operating 7％ Income Margin ※3 Approx. ※1 Cost Reductions At least ¥800B FY2023 ※1 320 yen (in fixed-line/mobile access networks) （vs. FY2017） ※2 212 yen ROIC 8％
Slide 28: Transition of Medium-Term Targets
Transition of Medium-Term Targets EPS Growth *1 Cost Reductions （in fixed-line/mobile access networks） Approx. Profit expansion 320yen /share buybacks FY 2017 FY 2018 FY 2019 FY 2023 Target 220yen 231yen ▲220 212yen *2 billion yen ▲500 billion yen FY 2017 FY 2018 FY 2019 FY 2023 Target Esta blish ef
Slide 29: Overview of Medium-Term Management Strategy Initiatives
Overview of Medium-Term Management Strategy Initiatives Progress from November 2020 to January 2021 • In the 5G sub-6 GHz, achieved a maximum download speed of 4.2Gbps, the fastest download Roll Out 5th- speed in Japan, by aggregating multiple bands (NTT DOCOMO; December 7, 2020) Generation Wireless
Slide 30: Global Business
Global Business Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 29
Slide 31: Global Business Overview
Global Business Overview Overseas Sales/Overseas Operating Income Margin* Revenue $25B 7.0％ Operating profit Margin $19.5B $18.4B $18.9B 2.4％ Operating Profit 3.1％ 3.2％ $1.75B** $0.56B $0.60B $0.46B FY 2017 FY 2018 FY 2019 FY 2023 Target * Including results from the global holding company, its subsi
Slide 32: Enhance Competitiveness in Global Business (1)
Enhance Competitiveness in Global Business (1) ◼ We established a new global holding company under NTT Corporation by the third quarter of the fiscal year ending March 31, 2019. ◼ And NTT Communications, Dimension Data, NTT DATA, NTT Security, and NTTi3 will be transferred to NTT, Inc. and will alig
Slide 33: Enhance Competitiveness in Global Business (2)
Enhance Competitiveness in Global Business (2) ”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 Fi
Slide 34: Structural Reform of NTT Ltd.
Structural Reform of NTT Ltd. ⚫ Promoted integration at NTT Ltd. since its establishment in July 2019 ⚫ Promoting structural reforms to realize business shift to attractive markets centered on managed IT services • Streamlining business operations - Optimization by consolidating operations and overl
Slide 35: NTT Ltd. Road to FY23
NTT Ltd. Road to FY23 7.0%* 1000M USD Execute GTM strategy Transition to high value services High value services 2.6%* Utilize Shared service centers approx. 300M USD 2020年度 Accelerate IT integration Cost reduction FY20 FY23 [* Based on Overseas Operating Income Margin**] **Including results from th
Slide 36: Smart City Project (Las Vegas City)
Smart City Project (Las Vegas City) Pain Point of the City: To reduce “Response Time” Requirements: ① Reactive actions: Notify “What is going on？” ② Proactive actions: Notify “What is going to happen next？” ③ Flexible ICT : Deploy ICT resources ASAP NW bandwidth Actions by Officers City Sensor setti
Slide 37: Mobile Communication Business
Mobile Communication Business Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 36
Slide 38: NTT DOCOMO FY2020 Principal Actions
NTT DOCOMO FY2020 Principal Actions Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 37
Slide 39: New Rate Plans (1)
New Rate Plans (1) Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 38
Slide 40: New Rate Plans (2)
New Rate Plans (2) “5G Gigalight” “Gigalight” ¥3,980 7GB ¥２,980 ¥２,480 5GB ¥1,980 3GB 1GB × 128Kbps Giga Plan upper limit setting option allows you to use comfortably（Available from ※ Applied with Minna DOCOMO Wari (3 or more lines)., March 2021） Docomo Hikari Set Discount, d CARD Payment Discount C
Slide 41: NTT DOCOMO Key Operational Indicators (1)
NTT DOCOMO Key Operational Indicators (1) Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 40
Slide 42: NTT DOCOMO Key Operational Indicators (2)
NTT DOCOMO Key Operational Indicators (2) Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 41
Slide 43: Actions for 5G (1)
Actions for 5G (1) Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 42
Slide 44: Actions for 5G (2)
Actions for 5G (2) Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 43
Slide 45: 5G Services & Solutions
5G Services & Solutions Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 44
Slide 46: Smart Life Business: Principal Services
Smart Life Business: Principal Services Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 45
Slide 47: Finance/Payment
Finance/Payment Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 46
Slide 48: NTT DOCOMO Termination of FOMA (3G) Service
NTT DOCOMO Termination of FOMA (3G) Service Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 47
Slide 49: Fixed-line Communication Business
Fixed-line Communication Business Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 48
Slide 50: Local 5G utilization example
Local 5G utilization example ➢ Realizing the improvement of the manufacturing site by remote monitoring, etc. by utilizing local 5G, eliminates labor shortage and improves productivity .(Collaboration agreement with Yamaguchi Prefecture and joint experimental agreement with Hibiki Seiki Co., Ltd. Ap
Slide 51: Migrate PSTN to IP Networks
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 Jan
Slide 52: Other Businesses
Other Businesses Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 51
Slide 53: Promote B2B2X Model
Promote B2B2X Model ⚫ Number of B2B2X Projects: 97 (as of the end of December 2020) ⚫ Set B2B2X Sales Target: ¥600.0 billion (for FY2023) Sales / Number of Projects Target ¥ 600.0 billion Create new B2B2X project 440円 ¥ 60 billion FY 2018 FY 2021 FY 2023 target Number of Projects 39 100 Copyright 20
Slide 54: Business Partnership with Mitsubishi Corporation
Business Partnership to Pursue ”Industrial Digital Transformation(DX)”with Mitsubishi Corporation Objectives of business partnership: Pursuing DX through cross-industry collaboration • Collaborate Mitsubishi Corporation’s industry knowledge with technologies of NTT Group • Expand its expertise, deve
Slide 55: Business and Capital Alliance Agreement with Toyota
Business and Capital Alliance Agreement with Toyota Partnership for the realization of a smart city Basic concept of smart city platform • Social infrastructure for urban development, cooperation of urban functions, and sophistication • A platform that continues to evolve • Providing API to service
Slide 56: Create New Lines of Business
Create New Lines of Business Promotion of Smart Energy Business FY2025 (Target) ⚫ Establishment of “NTT Anode Energy” (June 3, 2019) ⚫ Efforts to popularize and expand the use of renewable energy（Capital tie-up with Furusato netsu-den Corporation（September 2020： Geothermal ）,Capital and business all
Slide 58: Worldwide promotion of research and development
Worldwide promotion of research and development Road to (1) Wireless - Expanding wireless coverage IOWN and increasing capacity - 6G strategy Cognitive Foundation (4) Disaggregated Computing / OS (2) All-Photonics Network (APN) (3) Digital Twin - LSI serving as a key Computing (DTC) to the APN - 4D
Slide 59: Open access networks (O-RAN plus vRAN)
Open access networks (O-RAN plus vRAN) Flexible and advanced management Operational vCU vDU operations High availability Scalability RU RU Resilience RU Virtualization management Operational vCU vRAN vDU NEC NTT RU RU - Software technology - Verification for practical RU - Production technology use
Slide 60: Three elements that make up IOWN
Three elements that make up IOWN Cognitive Foundation Digital Twin Computing API Cloud Ctrl Ctrl Edge Multi-orchestrator API Fixed network Mobile network API Ctrl Operator A Operator B Operator C Operator D Ctrl Ctrl Ctrl API API Ctrl All Photonics Network Copyright 2020 NTT CORPORATION 59
Slide 61: Digital Twin Computing
Digital Twin Computing Grand Challenges Exploring Engine for Future Society Design of Mind–to–Mind Communications Inducing Inclusive Equilibrium future cities Solutions for the Earth and its Social Another Me and Economic Systems Transportation environment Urban spaces Medical Digital World Presenta
Slide 62: Shareholder Returns/ ESG
Shareholder Returns/ ESG Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 61
Slide 63: Shareholder Returns (1)
Shareholder Returns (1) ◆Dividend Policy • Basic policy is steady dividend increases ◆Share Buybacks • Carry out buybacks flexibly to improve capital efficiency Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 62
Slide 64: Shareholder Returns (2)
Shareholder Returns (2) Dividends ⚫ FY2020 year-end dividend of ¥55, a ¥5 increase from the dividend forecast at the beginning of the fiscal year ⚫ Annual dividend per share of ¥105 (an increase of ¥10 over FY2019) Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 63
Slide 65: Shareholder Returns (3)
Shareholder Returns (3) Share Buybacks ⚫ Resolved to buy back shares in order to improve capital efficiency and enhance shareholder returns ( November 6, 2020 ) ⚫ Details of Share Buybacks ・Aggregate Amount: Up to ¥250.0 billion ・Aggregate Number of Shares: Up to 120,000,000 shares ・Buyback Period:
Slide 66: Changes in Dividend
Changes in Dividend （Yen） 105 100 95 85% 75 65% Dividend per share Payout Ratio 50 45% 45.2% 40.9% 41.1% 38.2% 37.2% 38.0% 32.3% 31.2% 33.4% 32.9% 25 31.4% 30.7% 12.5 25% 27.5% 23.0% 19.5% 17.1% 12.3% 13.0% 0 5% • Dividend reflects the one hundred-for-one stock split effective on January 4, 2009. •
Slide 67: Record of Share Buybacks
Record of Share Buybacks Approx. 4 Trillion Yen in Buybacks From From From From From From From From From From From Market/ Market/Gov’t From Gov’t Market/ Market/ Market Gov’t Market Gov’t Market Market / Gov’t Market Gov’t Market Gov’t (Billions of yen) 600 539.4 501.1*7 500 406.5*4 400 381.7 374.1
Slide 68: Changes of EPS and Outstanding Shares
Changes of EPS and Outstanding Shares （Yen） (mio shares) 6,000 EPS(right axis) 232 5,500 5,293 EPS Growth 5,000 (Average Annual Growth Rate +9.2%) 200 Cumulative total of shares decrease by 4,500 around ▲30% (▲3.5% Average Decrease Annually) 4,000 3,500 96 3,000 100 2,500 2,000 1,500 1,000 0 2010 20
Slide 69: Promote ESG Management (1)
Promote ESG Management (1) 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 reinfor
Slide 70: Promote ESG Management (2)
Promote ESG Management (2) Environment and Energy Vision: Zero Environmental Impact Contribute to the reduction of the environmental impact of customers, companies and society ◼ Promotion of renewable energy • Aim To increase the proportion of our renewable energy usage to 30% or higher by FY2030 •
Slide 71: Promote ESG Management (3)
Promote ESG Management (3) Strengthening of corporate governance (Adoption an executive officer system , Independent outside director ratio 50%) ⚫ In order to further strengthen our governance, which contributes to increasing corporate value, we have decided to adopt an executive officer system and
Slide 72: Financial Data, etc.
Financial Data, etc. Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 71
Slide 73: NTT Group Formation
NTT Group Formation Voting rights to major subsidiaries (As of December 31, 2020) Operating revenue：¥4,651.3 billion 100% Operating income ：¥ 854.7 billion Mobile communications No. of employees ： 27,550 business No. of subsidiaries： 97 Operating revenue：¥3,079.9 billion 100% Operating income ：¥ 388
Slide 74: Trend in Consolidated Financial Results
Trend in Consolidated Financial Results 11.8 11.9 11.9 ■ Operating 11.8 11.5 11.5 11.4 Revenues 11.1 10.9 （Trillion yen） ■ Operating * 1.64 1.64 1.69 1.56 1.59 1.54 Income 1.21 1.35 /Operating 1.08 Profit （Trillion yen） 0.91 0.90 0.74 0.80 0.86 0.86 0.85 ■ Net Income 0.59 * 0.52 /Profit （Trillion ye
Slide 75: Changes in Consolidated Operating Revenues
Changes in Consolidated Operating Revenues ：Mobile communications business ：Data communications business ：Long distance and international ：Other business communications business ：Regional communications business （Billion yen） 15,000 11,799.6 11,782.1 11,879.8 11,899.4 11,500.0 11,541.0 11,391.0 10,9
Slide 76: Changes in Consolidated Operating Income
Changes in Consolidated Operating Income ：Mobile communications business ：Data communications business ：Long distance and international ：Other business communications business （Billion yen）：Regional communications business 2,000 1,693.8 1,642.8 1,641.1 1,590.0 1,539.8 1,562.2 1,500 1,348.1 1,213.7
Slide 77: Changes in CAPEX
Changes in CAPEX ：Mobile communications business ：Data communications business ：Long distance and international ：Other business communications business （Billion yen）：Regional communications business 1,892.8 2,000 1,817.5 1,687.2 1,806.6 1,700.0 1,674.8 1,697.0 1,730.0 1,697.9 753.7 703.1 572.8 661.
Slide 78: Changes in Interest-bearing Debt
Changes in Interest-bearing Debt （Billion yen） Debt/Equity ratio* 8000.0 60.0% 51.9% 50.8% 49.3% 47.1% 46.0% 45.2% 43.9% 6000.0 40.6% 40.0% 4000.0 7600.0 20.0% 4699.9 4200.0 4406.7 4163.3 4262.7 2000.0 4088.2 3854.8 3971.6 0.0 0.0% FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 FY2019 FY2020E [IFR
Slide 79: 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
Slide 80: Changes in Number of Employees
Changes in Number of Employees ：Mobile communications business ：Data communications business ：Long distance and international ：Other business communications business ：Regional communications business 319,050 320,550 307,900 (296,500) (298,900) (284,550) 284,550 27,550 28,200 300,000 274,850 26,650 (
Slide 81: Age Distribution of Employees at NTT East, NTT West and Outsourcing Companies
Age Distribution of Employees at NTT East, NTT West and “Outsourcing Companies” (As of March 31, 2020） 4,000 Number of Employees 2,000 0 20 30 40 50 60 65 Age * Figures for East Outsourcing Companies include employees from the consolidated regional outsourcing companies (NTT EAST-MINAMIKANTO and oth
Slide 82: Changes in Personnel expenses
Changes in Personnel expenses (NTT East Group, NTT West Group) （Billion yen） 1000 500 938.5 885.7 827.6 785.1 738.1 709.4 683.0 673.0 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020E * The scope of aggregation for each of the figures are not audited and are provided for reference only. (24
Slide 83: Broadband Access Services in Japan
Broadband Access Services in Japan Mobile Fixed Mobile FTTH Approx. Approx. 189.17M subs 34.07M subs 150M SoftBank 30M SoftBank market share Approx. 25％ KDDI 100M 20M KDDI market share Approx. 32％ NTT EAST and NTT WEST Approx. 22.0M subs 50M NTT DOCOMO 10M CATV Approx. Approx. DSL Approx. 6.66M subs
Slide 84: Fixed Broadband Business FTTH Subscriptions
Fixed Broadband Business FTTH Subscriptions FTTH Subscriptions (Sum of NTT East and NTT West） * 22.36 Reference: (millions subs) 21.66 FY2020E Breakdown of FTTH Subscriptions (millions subs) 21.08 20.05 20.53 FY2020E Total FTTH Service: +0.70 Hikari Change from preceding Fiscal Year 8.74 12.69 13.89
Slide 85: Share Buybacks and Cancellation
Share Buybacks and Cancellation ＜＞：share holding ratio Buyback from Buyback from Buyback from Disposal of treasury stock by way of Gov’t and Cancellation Gov’t and Cancellation Gov’t and third-party Market Market Market allotment Excess Holdings 118mil. shares Excess Holdings 98mil. shares Treasury
Slide 86: Your Value Partner
Your Value Partner
Slide 87: Attachment: Matters Under Consideration to Strengthen Collaboration after DOCOMO Wholly Owned Subsidiary
Attachment ※The Document submitted for the commission at the Ministry of Internal Affairs and Communications Matters Currently under Consideration to Strengthen Collaboration after Making NTT DOCOMO a Wholly Owned Subsidiary December 25, 2020
Slide 88: Matters currently under consideration are subject to change
These materials include a discussion of matters which are currently under consideration as of the date hereof and which are all subject to change in the future. Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 87
Slide 89: Objectives and Initiatives
Objectives and Initiatives ◼ NTT DOCOMO will utilize the capabilities of NTT Communications and NTT Comware and promote new services/solutions and the development of 6G-focused communications infrastructure that integrates mobile and fixed-line services, to evolve into a comprehensive ICT company th
Slide 90: Timeline for Implementation
Timeline for Implementation ◼ Transformation into a new DOCOMO Group is planned to be implemented through the following two steps (Proposed for Summer 2021) STEP 1 • Making Communications and Comware into subsidiaries of DOCOMO • Strengthening collaboration in the research and development capabiliti
Slide 91: Matters Currently under Consideration <STEP 1>
Matters Currently under Consideration <STEP 1> ◼ Making Communications and Comware subsidiaries of DOCOMO ◼ Research and development functions will be operated in an integrated manner to strengthen 6G and IOWN development capabilities Holding Company Laboratories Research/Development Integrated Oper
Slide 92: Matters Currently under Consideration <STEP 2> ①
Matters Currently under Consideration <STEP 2> ① ◼ Allocation of Functions between DOCOMO, Communications, Comware and Others ✓ Sales for individual customers will be primarily conducted by DOCOMO. For the MVNO and ISP businesses, VNE business will primarily be the responsibility of Communications,
Slide 93: Matters Currently under Consideration <STEP 2> ②
Matters Currently under Consideration <STEP 2> ② ◼ Allocation of Functions between DOCOMO, Communications, Comware and Others Holding Company Laboratories Research/Development Integrated Operation DOCOMO Individual Smart Life Practical Sales MNO Business Business Development Wholesale Offering Colla

NTT — FY2020 3Q Earnings Presentation on 6ix

Ntt — FY2020 3Q Earnings Presentation

Slide 1: IR Presentation

Slide 2: Translation notice and forward-looking statements

Slide 3: Contents

Slide 4: Overview of Consolidated Results for FY2020.3Q and FY2020 Forecast

Slide 5: 2020.3Q Financial Results – Key Points (1)

Slide 6: 2020.3Q Financial Results – Key Points (2)

Slide 7: Status of Consolidated Results for FY2020.3Q

Slide 8: Contributing Factors by Segment for FY2020.3Q

Slide 9: FY2020 Forecast Summary

Slide 10: FY2020 Financial Forecast Summary (by Company)

Slide 11: FY2020 Forecast Summary by Segment

Slide 12: Topics

Slide 13: Main Initiatives in Response to COVID-19

Slide 14: Initiatives to Create a Remote World (1/2)

Slide 15: Initiatives to Create a Remote World (2/2)

Slide 16: Entry into New Businesses and Business Areas (1/3)

Slide 17: Entry into New Businesses and Business Areas (2/3)

Slide 18: Entry into New Businesses and Business Areas (3/3)

Slide 19: Transaction to Make NTT DOCOMO a Wholly Owned Subsidiary

Slide 20: Background

Slide 21: Toward NTT's Medium-Term Growth and Development (1)

Slide 22: Toward NTT's Medium-Term Growth and Development (2)

Slide 23: Primary Initiatives

Slide 24: Social Contributions through Initiatives

Slide 25: Financing and Financial Policy

Slide 26: NTT Group Medium-Term Management Strategy

Slide 27: Medium-Term Targets

Slide 28: Transition of Medium-Term Targets

Slide 29: Overview of Medium-Term Management Strategy Initiatives

Slide 30: Global Business

Slide 31: Global Business Overview

Slide 32: Enhance Competitiveness in Global Business (1)

Slide 33: Enhance Competitiveness in Global Business (2)

Slide 34: Structural Reform of NTT Ltd.

Slide 35: NTT Ltd. Road to FY23

Slide 36: Smart City Project (Las Vegas City)

Slide 37: Mobile Communication Business

Slide 38: NTT DOCOMO FY2020 Principal Actions

Slide 39: New Rate Plans (1)

Slide 40: New Rate Plans (2)

Slide 41: NTT DOCOMO Key Operational Indicators (1)

Slide 42: NTT DOCOMO Key Operational Indicators (2)

Slide 43: Actions for 5G (1)

Slide 44: Actions for 5G (2)

Slide 45: 5G Services & Solutions

Slide 46: Smart Life Business: Principal Services

Slide 47: Finance/Payment

Slide 48: NTT DOCOMO Termination of FOMA (3G) Service

Slide 49: Fixed-line Communication Business

Slide 50: Local 5G utilization example

Slide 51: Migrate PSTN to IP Networks

Slide 52: Other Businesses

Slide 53: Promote B2B2X Model

Slide 54: Business Partnership with Mitsubishi Corporation

Slide 55: Business and Capital Alliance Agreement with Toyota

Slide 56: Create New Lines of Business

Slide 57: R&D

Slide 58: Worldwide promotion of research and development

Slide 59: Open access networks (O-RAN plus vRAN)

Slide 60: Three elements that make up IOWN

Slide 61: Digital Twin Computing

Slide 62: Shareholder Returns/ ESG

Slide 63: Shareholder Returns (1)

Slide 64: Shareholder Returns (2)

Slide 65: Shareholder Returns (3)

Slide 66: Changes in Dividend

Slide 67: Record of Share Buybacks

Slide 68: Changes of EPS and Outstanding Shares

Slide 69: Promote ESG Management (1)

Slide 70: Promote ESG Management (2)

Slide 71: Promote ESG Management (3)

Slide 72: Financial Data, etc.

Slide 73: NTT Group Formation

Slide 74: Trend in Consolidated Financial Results

Slide 75: Changes in Consolidated Operating Revenues

Slide 76: Changes in Consolidated Operating Income

Slide 77: Changes in CAPEX

Slide 78: Changes in Interest-bearing Debt

Slide 79: Medium-Term Debt Levels