Ntt Inc · TSE:9432
Ntt — Investor Presentation (February 2025)
108 slides from Ntt's investor presentation, February 2025
Slide 1: IR Presentation
IR Presentation February,2025 Ver.250201
Slide 2: to herein, as well as other risks included in NTT’s most recent Annual Securities
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 FY2024.3Q Consolidated Results R&D Status of Consolidated Results for FY2024.3Q 4 IOWN initiative 60 Contributing Factors by Segment for FY2024.3Q 5 IOWN From Vision to Reality - and Beyond 61 FY2024 Results Forecast IOWN2.0 - Optical Based Computing 62 FY2024 Forecast Summary 7
Slide 4: Overview of FY2024.3Q Consolidated Results
Overview of FY2024.3Q Consolidated Results Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 3
Slide 5: Status of Consolidated Results for FY2024.3Q
Status of Consolidated Results for FY2024.3Q ◼ Operating Revenues increased, Operating Profit and Profit decreased ◼ Operating Revenues reached new record-high levels Status of Consolidated Results ⚫ Operating Revenues: ¥10,049.7B <+¥332.9B [+3.4%] year-on-year> ⚫ Operating Profit: ¥1,399.2B < (¥87.
Slide 6: Contributing Factors by Segment for FY2024.3Q
Contributing Factors by Segment for FY2024.3Q Operating Revenues <Year-on-year:＋332.9> Others (Billions of yen) Integrated ICT Regional Global Solutions (Real Estate, Elimination of Business Segment Communications Business Segment Energy and Others) Inter-Segment Business Segment Transactions 10,049
Slide 7: FY2024 Results Forecast
FY2024 Results Forecast Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 6
Slide 8: FY2024 Forecast Summary
FY2024 Forecast Summary ◼ Operating Revenues will increase year-over-year while Operating Profit and Profit will decrease year-over-year Consolidated Revenues and Income Plan FY2023 Results FY2024 Forecast Year-on-Year Operating Revenues ¥13,374.6B ¥13,460.0B +¥85.4B Operating Profit ¥1,922.9B ¥1,81
Slide 9: FY2024 Forecast Summary by Segment
FY2024 Forecast Summary by Segment Operating Revenues <Year-on-year: +85.4> (Billions of yen) Integrated ICT Regional Global Solutions Others Elimination of Business Segment Communications Business Segment (Real Estate, Inter-Segment Business Segment Energy and Others) Transactions 13,460.0 47.1 13,
Slide 10: Current Profit Levels and Initiatives to Reach Medium-Term Targets
Current Profit Levels and Initiatives to Reach Medium-Term Targets ◼ We actively streamlined non-core assets to achieve the previous medium-term targets, for which FY2023 was the final year, and achieved significant profit increases and reached those targets in FY2023 as a result ◼ Although profits
Slide 11: Integrated ICT Business
Integrated ICT Business Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 10
Slide 12: Key factors behind changes in operating revenues
Key factors behind changes in operating revenues Recorded increase in revenues, with growth of Smart life more than offsetting the decrease in mobile communications services revenues and negative impact of PSTN migration, etc Consumer +62.1 Enterprise (Billions of yen) Smart life +108.5 Consumer com
Slide 13: Key factors behind changes in operating profit
Key factors behind changes in operating profit Recorded decrease due mainly to the decline in mobile communications services revenues, increase in expenses for customer base reinforcement and impact of PSTN migration of enterprises, despite the organic growth of Smart life business. Consumer -55.5 E
Slide 14: Consumer Business: Performance Highlights
Consumer Business: Performance Highlights Focused on priority initiatives for FY2024, i.e., customer base expansion, communication service quality improvement and ARPU growth. Established the business foundation that will lead to a recovery trend for Consumer business in FY2025 or beyond. FY2024 Pri
Slide 15: Smart life: Operating revenues
<Smart life>Operating revenues Recorded revenue growth in all business domains driven mainly by finance and payment. Operating revenues Highlights (Billions of yen) 904.4 ➢ Factors behind change 795.9 +）Finance/payment +62.4 billion +108.5 333.4 (Excluding FY23 irregular factors (-21.2 billion)) +83
Slide 16: Smart life: Finance/Payment
<Smart life> Finance/Payment Finance/payment transactions grew to ¥11 trillion. Expanded card variety catered to diverse user needs to achieve further growth. Finance/payment transactions “d CARD PLATINUM” (Launched November 2024) (Billions of yen) ✓ Membership topped 347 thousand (As of Jan. 31, 20
Slide 17: Smart life: Marketing Solutions
<Smart life> Marketing Solutions Strengthened data analysis and insight derivation capabilities leveraging the consolidation of INTAGE HOLDINGS Inc., thereby expanding existing businesses and significantly growing revenues.. Marketing solutions revenues Marketing DX support to partner companies (Bil
Slide 18: Smart life: Entertainment
<Smart life> Entertainment Entertainment revenues continue to expand driven by steadfast growth of video services. Create new engagement with customers centered on entertainment offerings. Create new customer touchpoints/Expand DOCOMO economic sphere Entertainment revenues with “Lemino” Creating eng
Slide 19: Consumer communication: Operating revenues
<Consumer communication> Operating revenues Equipment sales revenues recorded YOY increase. Mobile communications services revenues declined despite successfully moderating the negative revenue impact from “irumo” by promoting subscriber migration to “eximo”. Operating revenues Highlights (Billions
Slide 20: Consumer communication: Customer base
<Consumer communication> Customer base Net adds improvement accelerated as a result of customer base reinforcement measures. FY24/3Q MNP performance was net positive. Churn rate has been maintained low. YOY changes in individual user handset net adds Churn rate Company A Company B DOCOMO* 0.70% 0.70
Slide 21: Consumer communication: Mobile Communication ARPU
<Consumer communication> Mobile Communication ARPU Pace of YOY ARPU decline moderated. Migration rate to “eximo” plan grew to 61%, and post-migration ARPU (average of all plans) recorded an increase compared to before migration. Mobile communication ARPU “eximo” migration rate* 60% or higher 60% 61%
Slide 22: Consumer communication: Actions for ARPU growth
<Consumer communication> Actions for ARPU growth Enrich the variety of attractive offerings to segments that are likely to migrate to “eximo” and strengthen our capability to make proposals suitable for different customer attributes across all channels. % of subscribers joining “eximo poikatsu” Stre
Slide 23: Consumer communication: Utilization of three-tier price plan
<Consumer communication> Utilization of three-tier price plan Promote migration to “eximo” by acquiring new customers using “ahamo” and “irumo” and proposing cross-selling of services New Customers For customers who wish to Services enjoy stress-free unlimited data usage with generous support Cross
Slide 24: Enterprise: Operating revenues
<Enterprise> Operating revenues Enterprise revenues recorded YOY decrease due to negative impact of PSTN migration. Organic growth was positive. Operating revenues Highlights (Billions of yen) ➢ Factors behind change 1,348.7 1,339.6 +) Organic growth: +23.7 billion -9.1 -) PSTN migration: -25.2 bill
Slide 25: Enterprise: Solution rollout
<Enterprise> Solution rollout DX solutions growing steadily. New rollout of platform business. Solutions showing favorable performance New approach to solving social issues Contact center solutions Revenues (Billions of yen) Improvement of food Creation of ➢ Contact center upgrade projects, self-suf
Slide 26: Network: Initiatives for communication service quality improvement
<Network > Initiatives for communication service quality improvement Stepped up countermeasures for events, while continuously expanding 5G base station rollout. Steadily improved quality experienced by customers. Customer satisfaction*5 concerning network Increase of 5G base stations showing signs
Slide 27: Targets for each indicator toward FY2027
Targets for each indicator toward FY2027 FY23 FY24 FY27 Consumer business revenues ¥4,476.1 billion ¥4,489 billion Up ¥350 billion or more Customer base 34.7% 34.7% 35% or higher (Retail user market share*) Retail user mobile ARPU ¥4,090 ¥4,070 ¥4,200 Incl.) Entertainment revenues ¥221.5billion ¥230
Slide 28: Global Solutions Business
Global Solutions Business Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 27
Slide 29: Results for the Third Quarter of Fiscal Year Ending March 2025
Results for the Third Quarter of Fiscal Year Ending March 31, 2025 (Summary of YoY changes) ・Both net sales and operating profit increased year on year ・Progress is on track with the full-year forecast （Billions of Yen） Progress Q3 FYE3/2024 Q3 FYE3/2025 YoY YoY FYE3/2025 toward (Apr-Dec) (Apr-Dec)
Slide 30: New Orders Received YoY Changes
New Orders Received｜YoY Changes (Q3 Results of FYE3/2025) Each business in Japan performed well. Overseas, new orders received increased in the SAP businesses in GTSS, as well as in North America. -0.9 +97.5 （Billions of Yen) +22.2 (+147.8) ( ) shows the effect of North America +67.3(+37.1) 3,664.3
Slide 31: Net Sales YoY Changes
Net Sales ｜ YoY Changes (Q3 Results of FYE3/2025) Each business in Japan performed well. Overseas, while the data center and SAP businesses in GTSS performed well, net sales of each regional unit were on a downward trend. Overall overseas sales increased due to the impact of foreign exchange rates.
Slide 32: Operating Profit YoY Changes
Operating Profit｜YoY Changes (Q3 Results of FYE3/2025) Operating profit increased both in Japan and overseas. The increase in Japan is partly due to the absence of unprofitable costs, while the increase overseas is partly due to the absence of structural transformation costs, both recorded in the pr
Slide 33: Breakdown of Overseas Segment
Breakdown of Overseas Segment (Billions of Yen) Progress FYE3/2024 FYE3/2025 YoY Excl. YoY FYE3/2024 FYE3/2025 FY3/2024 FYE3/2025 YoY Forex Forex Toward Apr-Dec Apr-Dec (Amount) Effects(*4) （Rate） Apr-Mar Forecasts Oct-Dec Oct-Dec (Amount) Effects(*4) Forecast Net Sales 1,958.2 2,054.1 +95.9 -29.4 +
Slide 34: Operating Profit YoY Changes (by factor)
Operating Profit ｜ YoY Changes (by factor) Although a decrease in profit due to transitory factors is expected in Q4, we aim to achieve our full-year operating profit forecast through factors such as increased profit in line with increased revenue (Billions of yen) Q3 FYE3/2025 cumulative (Apr-Dec)
Slide 35: Status of Investments and Orders in the Data Center Business
Status of Investments and Orders, etc. in the Data Center Business • Investment in the Q3 FYE3/2025 was 1,624M$ (248 billion yen). Orders received were 3,463M$ (528.7 billion yen), down 1,325M$ (¥157.7 billion) YoY. The decrease in orders is due to a reactionary fall in large orders recorded in the
Slide 36: Financial performance of the data center business
Financial performance of the data center business • Revenue in the Q3 FYE3/2025 was 1,790M$ (up 437M$ YoY), and EBITDA was 637M$ (up 127M$ YoY) • Aim to achieve EBITDA of over 1,400M$ (over ¥190 billion) in FY2027 Revenue EBITDA <EBITDA Margin> Operating Profit <OP Margin> FY2024 Apr-Dec 1,790M＄ (¥2
Slide 37: Data Center Business as a Growth Engine
Data Center Business as a Growth Engine NTT has committed to invest at least JPY1.5 trillion into data centers until the end of FY2027 as one of the pillars of our new medium-term strategy, aiming to double EBITDA during this period by leveraging our proven operational and technological capabilities
Slide 38: Expansion and Upgrade of Data Centers
（2023年5月公表） 新中期経営戦略 より New value creation & Sustainability 2027 Expansion and Upgrade of Data Centers powered by IOWN ◼ NTT will further expand the world’s third-largest(1) data center infrastructure, and implement upgrades through the introduction of IOWN technology (will make investments of at lea
Slide 39: NTT's Position In The Global Market
NTT’s Position In The Global Market Global Data Center Colocation Revenue Share1 Global IDC MarketScape Vendor Assessment 2 Operators 1 Equinix 2 Digital Realty 12% 3 NTT GDC 4 Digital Bridge 9% 5 CyrusOne Total 6% 6 KDDI $51.8B 3% 7 American Tower 3% 8 Cyxtera 9 Flexential 10 QTS Others NTT GDC is
Slide 40: Regional Communications Business
Regional Communications Business Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 39
Slide 41: Initiatives to Restore Business Results
Initiatives to Restore Business Results (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 Operating Profit Assets growth with FY2024 as the + FY2027 +¥45.0 bi
Slide 42: 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 43: 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 44: 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 45: 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 46: 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 47: 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 48: 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 49: 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 50: 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 51: Further Expansion of Growth Businesses
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 52: Initiatives of a sustainable society, etc.
Initiatives of a sustainable society, etc. Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 51
Slide 53: Sustainability Charter
Sustainability Charter • Establishment of Sustainability Charter in November 2021 • Three themes and nine challenges are set. Key indicators (carbon neutrality, percentage of new female managers, employee engagement rate, customer engagement) are reflected in executive compensation. Sustainability C
Slide 54: Targets of NTT Green Innovation toward 2040
Targets of “NTT Green Innovation toward 2040” ⚫ FY2030 Reduction of NTT Group’s greenhouse gas emissions by 80% (compared to FY2013) Carbon neutrality for the mobile (NTT DOCOMO) and data center businesses ⚫ FY2040 Carbon neutrality as NTT Group Energies Source: Created from “NTT Green Innovation to
Slide 55: Outlook of NTT Group's Energy Consumption
Outlook of NTT Group’s Energy Consumption ⚫ BY replacing legacy facilities with IOWN, energy consumption will be reduced by approximately half by FY2040 ⚫ Renewable energy will be adopted for the remaining half to achieve carbon neutrality Outcome Approx. doubled (compared to FY2013) Energy Savings
Slide 56: Towards Achieving Net Zero in 2040
Towards Achieving Net Zero in 2040 ◼ With 2023 preliminary results for scope 1 and 2 emissions being 2.42 million tons, our emissions are reducing faster than planned and we are making steady progress towards carbon neutral in 2040 ◼ By encouraging and supporting suppliers with their emissions reduc
Slide 57: Current Status and Future of Renewable Energy Business
Current Status and Future of Renewable Energy Business ◼ As a result of acquiring Green Power Investment (GPI), a leading domestic renewable energy company, in 2023, NTT added wind power generation to its solar power generation capabilities, and anticipates achieving its renewal energy acquisition f
Slide 58: New Green Transformation Initiatives (GX)
New Green Transformation Initiatives (GX) ◼ Launch the new solutions brand to strengthen initiatives in the GX field Improving power generation businesses through integrated management, analysis and visualization of Specific Initiatives: power generation and financial data Integrated Data Management
Slide 59: Reinforcement of Corporate Governance
Reinforcement of Corporate Governance June 2020 • Introduced an executive officers system* (separation of the functions of managerial decision-making/supervision and business execution) • Increased the ratio of outside directors from 27% to 50% *Introduced an executive officers system into key group
Slide 60: R&D
R&D Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 59
Slide 61: IOWN initiative
IOWN initiative ◼ In order to utilize all types of information beyond the limits of conventional infrastructures, photonics technologies such as photonics-electronics convergence devices will be utilized everywhere from networks to terminals to realize a network and information processing infrastruc
Slide 62: IOWN From Vision to Reality - and Beyond
IOWN From Vision to Reality - and Beyond 2025 2026 2028 2032 IOWN 2.0 IOWN 3.0 IOWN 4.0 Power Power Consumption Consumption 1/8 ※ 1/100 ※ Realization with Photonics- Commercialization of Servers Electronics Convergence Devices Equipped with Photonics- Optical Communication Toward Further Advancement
Slide 63: IOWN2.0 - Optical Based Computing
IOWN2.0 - Optical Based Computing ◼ Developing a high-capacity, low-power consumption compact optical processing engine that will open up new possibilities in the world of computing ◼ Connecting xPU and memory optically instead of electrically to achieve ultra-low-power-computing ◼ In process of con
Slide 64: Future path for IOWN
Future path for IOWN Power efficiency Power efficiency APN 100-times * 100-times * Server 13-times 8-times 1.0-times 1.0-times Up to IOWN IOWN IOWN IOWN Up to IOWN IOWN IOWN 最終 IOWN now 1.0 2.0 3.0 4.0 now 1.0 2.0 3.0 目標 4.0 * Power efficiency for the entire photonics-applied area, including the APN
Slide 65: Achieved the World's First International IOWN APN Connection
Achieved the World’s First International IOWN APN Connection ◼ Adding to existing IOWN APN connections between data centers within Japan and overseas, in August 2024, we achieved the world’s first international IOWN APN connection, connecting Japan and Taiwan across a distance of approximately 3,000
Slide 66: NTT's LLM tsuzumi
NTT’s LLM ◼ Since commercialization in March 2024, customers from a variety of fields have indicated interest, with over 600 proposals for implementation ◼ Going forward, NTT will collaborate with its partners to accelerate the expansion of tsuzumi both domestically and overseas Expanding Further th
Slide 67: High Level of Cost Performance
High Level of Cost Performance Achieves high level of functionality while reducing hardware costs necessary for the implementation 生成AI利用 and operation of generative AI Main Cost Components AI’s Customizability Needed for Generative AI (Knowledge Upgrades, etc.) Use Operation GPU Cost Cost (Operator
Slide 68: Plan to establish NTT AI-CIX to Promote Linked AI
Plan to establish “NTT AI-CIX” to Promote Linked AI ◼ In August 2024, NTT plan to establish “NTT AI-CIX* Corporation (NTT AI-CIX)” to promote cross- business/cross-industry-linked AI services * AI-Cross Industry transformation ◼ NTT aims to achieve the optimization of the entire supply chain through
Slide 69: Shareholder Returns
Shareholder Returns Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 68
Slide 70: Record of Share Buybacks
Record of Share Buybacks Amount of Share Buybacks (Billions of yen) 539.4 501.1 510.3 406.5 366.5 381.7 374.1 338.1 258.0 250.0 250.0 235.2 200.0 200.0 200.0 * 150.0 120.0 86.2 100.0 94.4 93.6 FY1999 FY2002 FY2003 FY2004 FY2005 FY2007 FY2008 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY
Slide 71: Changes in Dividend
Changes in Dividend （Yen） 5.2 5.0 85% 4.0 Dividend per share 65% Payout Ratio 3.0 45% 2.0 40.9% 41.1% 42.3% 40.0% 37.2% 38.0% 33.4% 34.9% 34.5% 33.8% 31.2% 38.2% 31.4% 32.9% 32.3% 30.7% 25% 0.5 1.0 27.5% 23.0% 19.5% 17.1% 12.3% 13.0% 0.0 5% • FY2003-FY2017, financial statements were prepared in acco
Slide 72: Status of Shareholder Count
Status of Shareholder Count Shareholder Count Age Composition* 1% 3% 6% The number of shareholders has grown by 2.7x compared to prior to the stock split (end of March 2023) to 2.47 million (+1.55 million), setting a new record high 2.47 12% Stock Split million Announcement 55% 23% 1.90 2.7x million
Slide 73: Financial Data, etc.
Financial Data, etc. Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 72
Slide 74: NTT Group Formation
NTT Group Formation Operating revenue：¥6,140.0 billion Integrated ICT Operating income ：¥1,144.4 billion Business No. of employees ： 51,050 No. of subsidiaries： 127 Operating revenue：¥3,183.2 billion Regional Operating income ：¥ 437.7 billion Communications Business No. of employees ： 67,200 Nippon
Slide 75: Trend in Consolidated Financial Results
Trend in Consolidated Financial Results 13.4 13.5 13.1 ■ Operating 12.2 11.8 11.9 11.9 11.9 Revenues 11.5 11.4 （Trillion yen） 1.9 1.8 1.8 1.8 1.6 1.7 1.7 ■ Operating 1.5 1.6 Income 1.4 /Operating 1.28 Profit 1.18 1.21 1.10 （Trillion yen） 0.91 0.86 0.92 0.80 0.85 ■ Net Income 0.74 * /Profit 13.9 15.1
Slide 76: Changes in Consolidated Operating Revenues
Changes in Consolidated Operating Revenues （Billion yen） 13,136.2 13,374.6 13,460.0 15,000 11,879.8 11,899.4 11,944.0 11,944.0 12,156.4 11,541.0 11,391.0 11,799.6 6,059.0 6,140.0 6,244.0 4,840.8 4,651.3 4,725.2 4,769.4 5,870.2 4,527.1 4,584.6 5,880.9 10,000 3,079.9 3,207.4 3,177.6 3,183.2 3,070.0 3,
Slide 77: Changes in Consolidated Operating Income
Changes in Consolidated Operating Income （Billion yen） 2,000 1,922.9 1,671.4 1,829.0 1,810.0 1,768.6 1,642.8 1,693.8 1,671.4 1,539.8 1,562.2 1,500 1,348.1 1,144.4 1,060.0 1,093.9 1,072.5 1,170.0 1,013.6 913.2 982.1 854.7 951.6 1,000 788.4 420.2 420.2 437.7 388.3 420.5 500 354.3 360.7 440.0 290.0 265
Slide 78: Changes in CAPEX
Changes in CAPEX （Billion yen） 2,063.1 2,150.0 2,000 1,862.4 1,806.6 1,687.2 1,700.0 1,674.8 1,697.0 1,728.3 1,728.3 1,687.6 749.0 705.4 1,500 572.8 706.3 569.1 595.3 597.1 576.4 593.7 734.3 698.6 482.0 481.0 1,000 522.5 527.4 498.1 583.4 549.6 541.0 622.1 527.4 501.1 279.3 662.0 657.4 500 259.0 232
Slide 79: Changes in asset composition
Changes in asset composition (Billions of yen) (1) The scope of aggregation for each of the figures presented for Finance Business is internal management figures of Finance business in Smart Life of NTT DOCOMO Group in Integrated ICT Business Segment. Such figures include that calculated based on ce
Slide 80: Changes in Interest-bearing Debt
Changes in Interest-bearing Debt （Billion yen） 12,000.0 120.0% Debt/Equity ratio* 100.8% 96.1% 97.4% 10,000.0 100.0% 88.9% 8,000.0 80.0% 6,000.0 60.0% 51.9% 47.1% 45.2% 46.0% 43.9% 9,591.0 9,600.0 40.6% 4,000.0 8,230.5 40.0% 7,624.3 7,364.3 4,699.9 2,000.0 4,163.3 4,088.2 3,971.6 4,262.7 20.0% 3,854
Slide 81: Changes in Number of Employees
Changes in Number of Employees 333,850 338,650 338,450 345,700 319,050 324,650 324,650 (325,050) (329,850) (331,100) (338,550) 307,900 (296,500) (298,900) (298,900) (284,550) 51,400 284,550 27,550 28,100 45,850 46,500 47,150 51,050 300,000 274,850 (275,650) 26,650 (27,500) (28,050) (45,750) (46,450)
Slide 82: Changes of Outstanding Shares
Changes of Outstanding Shares (Hundred million shares) 1,400 1,276 Cumulative total of shares decreased by around ▲34% 1,200 (▲2.6% Average Decrease Annually) 1,000 837 800 600 400 200 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024E (Note1) Outsta
Slide 83: Age Distribution of Employees at NTT East and NTT West
Age Distribution of Employees at NTT East and NTT West (As of March 31, 2024） Number of Employees 4,000 2,000 0 20 30 40 50 60 65 Age * Figures for NTT East include employees from the consolidated regional outsourcing companies (NTT EAST-MINAMIKANTO and others), NTT-ME and NTT EAST SERVICE, while fi
Slide 84: Fixed Broadband Business FTTH Subscriptions
Fixed Broadband Business FTTH Subscriptions * FTTH Subscriptions (Sum of NTT East and NTT West） 23.65 23.75 Reference: (millions subs) 23.27 23.58 FY2024E Breakdown of FTTH Subscriptions (millions subs) 22.56 FY2024E 21.66 Total FTTH Service: +0.1 Change from preceding Fiscal Year Hikari (1) Number
Slide 85: Broadband Access Services in Japan
Broadband Access Services in Japan Mobile Fixed Rakuten mobile market share Approx. 4％ Approx. Mobile Approx. FTTH 217.98M subs 40.72M subs 40M 200M SoftBank SoftBank market share Approx. 24％ 30M 150M KDDI KDDI market share Approx. 32％ 100M 20M NTT East and NTT DOCOMO NTT West Approx. 90.19M subs 23
Slide 86: New Medium-Term Management Strategy
Attachment New Medium-Term Management Strategy New Value Creation & Sustainability 2027 Powered by IOWN Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 85
Slide 87: Fundamental Principles of New Value Creation & Sustainability 2027
Fundamental Principles of New Value Creation & Sustainability 2027 Powered by IOWN Innovating a Sustainable Future for People and Planet Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 86
Slide 88: Increase Our Investments in Growth Areas
For that Purpose, We Will Increase Our Investments in Growth Areas Will invest ~¥8.0 trillion in growth areas over the next 5 years 50％UP ¥0.6tn/year ~¥8.0 trillion ¥1.0tn/year over the next 5 years ¥1.5tn/year ~¥12.0 trillion ¥1.0tn/year in total FY2015 FY 2022 FY2027 Copyright 2025 NIPPON TELEGRAP
Slide 89: Further Increase Our Cash-Generation Ability
We Will Also Further Increase Our Cash-Generation Ability for the Future Looking ahead to FY2027, aiming to increase our cash-generation ability for growth and reach EBITDA of ~¥4.0 trillion 4.0 ¥ tn +20％ increase 3.3tn ¥ FY 2022 2027 FY Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 88
Slide 90: Pillars of Our Initiatives
Pillars of Our Initiatives 1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ① IOWN-Driven Creation of New Value ③ Achievement of a Circular Economy Society (from concept to commercialization) i. Establishment of manufacturing company for photonic- i. Develop sustainab
Slide 91: IOWN-Driven Creation of New Value
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ① IOWN-Driven Creation of New Value (from Concept to Commercialization) ⅰ. Establishment of manufacturing company for photonic-electronic convergence devices ◼ Will establish “NTT Innovative Devices Corporation” in June
Slide 92: Data-Driven Creation of New Value (Smart World)
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ②Data-Driven Creation of New Value (Smart World) ⅰ. Strengthening personal business (strengthening DOCOMO’s Smart Life businesses) ◼ Will actively invest in personal business and other growth areas (at least ~¥1.0tn/5 y
Slide 93: Data-Driven Creation of New Value (Smart World)
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ②Data-Driven Creation of New Value (Smart World) ⅱ. Strengthening the Use of DX/Data in Society and Industry (use of AI/Robots) ◼ Will jointly develop technology and solutions globally, transforming industries that supp
Slide 94: Data-Driven Creation of New Value (Smart World)
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ②Data-Driven Creation of New Value (Smart World) ⅲ. Expansion and Upgrade of Data Centers ◼ Will further expand the world’s third-largest(1) data center infrastructure, and implement upgrades through the introduction of
Slide 95: Achievement of a Circular Economy Society
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ③Achievement of a Circular Economy Society i. Develop sustainability solutions for customers ◼ Will promote green solutions that can be achieved by “Green Energy x ICT” (will make investments of ~¥1.0tn/5 years) ◼ Will
Slide 96: Achievement of a Circular Economy Society
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ③Achievement of a Circular Economy Society ⅱ. Creating Circular Economy-Oriented Businesses ◼ Will achieve a sustainable society by recycling resources across various industries and further accelerating regional revital
Slide 97: Achievement of a Circular Economy Society
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ③Achievement of a Circular Economy Society ⅲ. Progression towards Net-Zero ◼ Looking ahead to FY2040, aiming to expand “NTT Green Innovation toward 2040” to Scope 3 NTT Green Innovation toward 2040(1) Expansion to Scope
Slide 98: Further Strengthening of Business Foundations
1. NTT as a Creator of New Value and Accelerator of a Global Sustainable Society ④Further Strengthening of Business Foundations ◼ We will make our networks/systems more resilient to withstand large-scale failures, cyberattacks or other occurrences in order to strengthen social infrastructure and enh
Slide 99: Fusion of Research and Development with a Market-Focused Strategy
2. Upgrading the Customer Experience (CX) ⑤ Fusion of Research and Development with a Market-Focused Strategy ◼ Will combine and strengthen our R&D capabilities with our market analysis and alliance capabilities at the holding company level ◼ Will enable us to strengthen our product-oriented R&D to
Slide 100: Strengthening of Services that Emphasize CX
2. Upgrading the Customer Experience (CX) ⑥Strengthening of Services that Emphasize CX Customers (Individuals, businesses, local governments, government organizations, etc.) Customer Experience Offer New Experiences and Set/Implement KPIs that Track the Customer Journey First Impressions that Exceed
Slide 101: Open and Innovative Corporate Culture
3. Improvement of Employee Experience (EX) ⑦Open and Innovative Corporate Culture ◼ Foster a culture of openness, collaboration and trial and error for a better customer experience ◼ Continue to strengthen diversity and inclusion Openness • Open discussions • Transparency • Healthy debate • Psycholo
Slide 102: Support Career Growth
3. Improvement of Employee Experience (EX) ⑧ Support Career Growth ◼ Support employee career growth and increase investment in human capital to drive business growth Supporting Growth Improve Expertise by Repeating the Cycle Career Work Training/ Review/ New EX Joining the Onboarding Design Experien
Slide 103: Global Benefits for Employees and their Families
3. Improvement of Employee Experience (EX) ⑨Global Benefits for Employees and their Families ◼ Expand the benefits that support a portion of educational expenses for children of deceased employees until they reach age 22 Current Future Scheme Scholarship fund Expand the current scheme Japan-based El
Slide 104: Medium-Term Financial Targets
Medium-Term Financial Targets Targets Indicators Target Levels (FY2027) Company-Wide Targets EBITDA ＋20％ increase (compared to FY2022) Growth EBITDA ＋40％ increase (compared to FY2022) Areas(1) Overseas Operating Income Margin(2) 10％（FY2025） Existing EBITDA ＋10％ increase (compared to FY2022) Areas(3)
Slide 105: Strengthening Our Ability to Generate Cash for Growth
Strengthening Our Ability to Generate Cash for Growth (with EBITDA as a Key Indicator) ◼ We will strengthen initiatives focused on our cash generation abilities to achieve further sustainable growth and have set EBITDA as a key indicator, aiming for an increase of 20% to reach ¥4.0 trillion by FY202
Slide 106: Increase Investments to Achieve Further Growth
Increase Investments to Achieve Further Growth ◼ We will make investments/contributions to our growth areas(1) amounting to ~¥8.0 trillion in the next five years(2) (an increase of 50% over current levels), and plan for a total of ~¥12.0 trillion ◼ Maintain/reduce our debt-to-EBITDA ratio to ~2x Gro
Slide 107: Fundamental Policy on Shareholder Returns
Fundamental Policy on Shareholder Returns Dividend Policy Our basic policy is to implement steady increases in dividends Share Buybacks We will flexibly conduct share buybacks to improve capital efficiency Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION 106
Slide 108: Innovating a Sustainable Future for People and Planet
Innovating a Sustainable Future for People and Planet
Nippon Telegraph and Telephone Corporation (NTT) — Investor Presentation (February 2025) on 6ix