NTT : Annual Securities Report (For the fiscal year ended March 31, 2026)

Published June 16, 2026 at 8:15 a.m. UTC

Source: MarketScreener

Annual Securities Report

(41st Business Term)

From April 1, 2025 to March 31, 2026

NTT, Inc.

This document is an English translation of a report that has been generated/printed with a Table of Contents and page numbers attached to data from the Securities Report filed with the Financial Services Agency using EDINET (Electronic Disclosure for Investors' NETwork).

Included at the end of this report are English translations of the Report of Independent Registered Public Accounting Firm attached to the Securities Report filed in the manner described above and the Report on Internal Control and Confirmation Letter filed in conjunction with the above mentioned Securities Report.

The forward-looking statements and projected figures concerning the future performance of NTT, Inc. (the "Company" or "NTT") and its subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein, as well as other risks included herein and in any other materials publicly disclosed by NTT on its website.

COVER

TABLE OF CONTENTS Page

PART 1 INFORMATION ON THE COMPANY.......................................................................................................................... 1

ITEM 1 OVERVIEW OF THE COMPANY ................................................................................................................................. 1

SELECTED FINANCIAL DATA ........................................................................................................................................... 1
1. SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY......................................... 1
2. SELECTED NON-CONSOLIDATED FINANCIAL AND OTHER DATA OF THE COMPANY............................... 3
HISTORY................................................................................................................................................................................. 5
1. BACKGROUND .............................................................................................................................................................. 5
2. HISTORY.......................................................................................................................................................................... 5
DESCRIPTION OF BUSINESS.............................................................................................................................................. 7
INFORMATION ON SUBSIDIARIES AND AFFILIATES ................................................................................................. 9

ITEM 2 BUSINESS OVERVIEW.................................................................................................................................................. 14

MANAGEMENT POLICY, BUSINESS ENVIRONMENT AND ISSUES TO BE ADDRESSED. 14
SUSTAINABILITY-RELATED PRINCIPLES AND INITIATIVES.................................................................................... 17
RISK FACTORS...................................................................................................................................................................... 28
SUPPLEMENTAL INFORMATION: REGULATIONS APPLICABLE TO NTT'S BUSINESS....................................... 35
MANAGEMENT ANALYSIS OF FINANCIAL CONDITION, OPERATIONAL RESULTS AND CASH FLOWS........ 48
1. OVERVIEW OF MEDIUM - TERM FINANCIAL TARGETS ..................................................................................... 48
2. ANALYSIS OF OPERATING RESULTS (CONSOLIDATED). 48
3. ANALYSIS OF OPERATING RESULTS (SEGMENTS) .............................................................................................. 51
4. ANALYSIS OF CASH FLOWS AND FINANCIAL POSITION. 61
5. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS. 63
SIGNIFICANT CONTRACTS................................................................................................................................................ 64
RESEARCH AND DEVELOPMENT..................................................................................................................................... 64

ITEM 3 PROPERTY, PLANT AND EQUIPMENT ..................................................................................................................... 66

OVERVIEW OF CAPITAL INVESTMENTS........................................................................................................................ 66
MAJOR PROPERTY, PLANT AND EQUIPMENT.............................................................................................................. 67
1. BREAKDOWN BY SEGMENT ..................................................................................................................................... 67
2. OVERVIEW OF THE COMPANY AND MAJOR CONSOLIDATED SUBSIDIARIES............................................. 67
PLANNED CAPITAL INVESTMENTS AND DISPOSALS OF PROPERTY..................................................................... 70

ITEM 4 INFORMATION ON THE COMPANY.......................................................................................................................... 71

INFORMATION ON THE COMPANY'S SHARES............................................................................................................. 71
1. TOTAL NUMBER OF SHARES, ETC. ......................................................................................................................... 71
2. INFORMATION ON SHARE ACQUISITION RIGHTS, ETC. .................................................................................... 71
3. STATUS OF EXERCISE OF BONDS WITH SHARE ACQUISITION RIGHTS CONTAINING EXERCISE PRICE ADJUSTMENT CLAUSES............................................................................................................................................. 71
4. CHANGES IN THE TOTAL NUMBER OF ISSUED SHARES AND CAPITAL, ETC. ............................................. 71
5. SHAREHOLDER COMPOSITION................................................................................................................................. 72
6. MAJOR SHAREHOLDERS............................................................................................................................................. 73
7. INFORMATION ON VOTING RIGHTS........................................................................................................................ 74
8. DETAILS OF THE EXECUTIVE AND EMPLOYEE STOCK OWNERSHIP PLAN ................................................. 75
INFORMATION ON ACQUISITIONS OF TREASURY STOCK ....................................................................................... 76
1. STATUS OF ACQUISITIONS OF TREASURY STOCK PURSUANT TO RESOLUTIONS AT THE GENERAL MEETING OF SHAREHOLDERS ................................................................................................................................. 76
2. STATUS OF ACQUISITIONS OF TREASURY STOCK PURSUANT TO RESOLUTIONS AT MEETINGS OF
  THE BOARD OF DIRECTORS ..................................................................................................................................... 76
3. DESCRIPTION OF ACQUISITIONS OF TREASURY STOCK NOT MADE PURSUANT TO RESOLUTIONS
  AT THE GENERAL MEETING OF SHAREHOLDERS OR MEETINGS OF THE BOARD OF DIRECTORS........ 76
4. DISPOSITIONS AND HOLDINGS STATUS OF ACQUIRED TREASURY STOCK ................................................ 77
DIVIDEND POLICY .............................................................................................................................................................. 77
CORPORATE GOVERNANCE ............................................................................................................................................ 78
1. OVERVIEW OF CORPORATE GOVERNANCE ......................................................................................................... 78
2. MEMBERS OF THE BOARD ......................................................................................................................................... 92
3. AUDITS. 108
4. COMPENSATION FOR MEMBERS OF THE BOARD. 113
5. SHAREHOLDINGS 119
EMPLOYEES. 128

ITEM 5 FINANCIAL INFORMATION 132

CONSOLIDATED FINANCIAL STATEMENTS 133
1. CONSOLIDATED FINANCIAL STATEMENTS 133
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 143
  1. BASIS OF PREPARATION 143
    1. REPORTING ENTITY 143
    2. BASIS OF ACCOUNTING 144
      1. MATTERS REGARDING COMPLIANCE WITH IFRS. 144
      2. BASIS FOR MEASUREMENT 144
      3. FUNCTIONAL CURRENCY AND PRESENTATION CURRENCY. 144
      4. CHANGES IN ACCOUNTING POLICIES 144
    3. MATERIAL ACCOUNTING POLICIES. 145
      1. BASIS FOR CONSOLIDATION 145
      2. FOREIGN CURRENCY TRANSLATION 147
      3. FAIR VALUE 148
      4. OTHER ACCOUNTING POLICIES 148
    4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS INVOLVING ESTIMATES. 149
    5. NEW STANDARDS NOT YET APPLIED 151
  2. RESULTS FOR THE YEAR 152
    1. SEGMENT INFORMATION 152
    2. OPERATING REVENUES 158
      1. DISAGGREGATION OF REVENUES 160
      2. CONTRACT BALANCES 162
      3. TRANSACTION PRICE ALLOCATED TO THE REMAINING PERFORMANCE OBLIGATIONS. 162
      4. ASSETS RECOGNIZED FROM THE COSTS TO OBTAIN OR FULFILL A CONTRACT WITH A
        CUSTOMER 163
    3. OPERATING EXPENSES 164
      1. EXPENSES FOR PURCHASE OF GOODS AND SERVICES AND OTHER EXPENSES 164
      2. RESEARCH AND DEVELOPMENT EXPENSES 164
    4. INCOME TAXES 165
      1. DEFERRED TAX ASSETS AND DEFERRED TAX LIABILITIES. 166
      2. DETAILS OF INCOME TAXES. 169
      3. INCOME TAXES RECEIVABLE INCLUDED IN OTHER CURRENT ASSETS. 170
      4. GLOBAL MINIMUM TAX REGIME. 170
    5. EARNINGS PER SHARE 171
  3. ASSETS AND LIABILITIES (EXCLUDING FINANCIAL INSTRUMENTS) 172
    1. BUSINESS COMBINATIONS AND ACQUISITIONS OF NON-CONTROLLING INTERESTS. 172
    2. TRADE AND OTHER RECEIVABLES 175
    3. INVENTORIES 176
    4. ASSETS HELD FOR SALE. 177
    5. PROPERTY, PLANT AND EQUIPMENT 180
      1. CHANGES. 181
      2. IMPAIRMENT LOSSES. 183
      3. ASSETS PLEDGED AS COLLATERAL. 183
      4. ASSETS WITH RESTRICTED OWNERSHIP. 183
      5. BORROWING COSTS. 183
    6. LEASES. 184
      1. LESSEE. 185
      2. LESSOR. 187
    7. GOODWILL AND INTANGIBLE ASSETS. 191
      1. CHANGES. 192
      2. ASSETS PLEDGED AS COLLATERAL. 193
      3. IMPAIRMENT TESTS FOR GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES. 194
    8. INVESTMENT PROPERTY. 197
      1. CHANGES. 197
      2. IMPAIRMENT LOSSES. 198
      3. FAIR VALUE. 198
      4. REVENUES AND EXPENSES FROM INVESTMENT PROPERTY. 198
    9. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD. 199
      1. DETAILS OF CARRYING AMOUNTS OF INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD. 199
      2. NTT GROUP'S SHARE OF COMPREHENSIVE INCOME OF ASSOCIATES AND JOINT VENTURES ACCOUNTED FOR USING THE EQUITY METHOD (NET OF TAXES). 199
    10. TRADE AND OTHER PAYABLES 200
    11. EMPLOYEE BENEFITS. 201
      1. DEFINED CONTRIBUTION PENSION PLANS. 201
      2. DEFINED BENEFIT PLANS. 201
    12. PROVISIONS 208
    13. OTHER LIABILITIES. 210
  4. EQUITY AND FINANCING 211
    1. EQUITY. 216
      1. TOTAL NUMBER OF AUTHORIZED SHARES, ISSUED SHARES AND TREASURY STOCK. 216
      2. DISTRIBUTION OF RETAINED EARNINGS. 217
      3. CAPITAL MANAGEMENT. 218
      4. PUT OPTIONS GRANTED TO NON-CONTROLLING INTERESTS. 218
      5. OTHER COMPONENTS OF EQUITY. 219
      6. OTHER COMPREHENSIVE INCOME. 220
      7. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS. 222
      8. OTHER. 222
    2. CASH AND CASH EQUIVALENTS 223
    3. IMPACT ON THE CONSOLIDATED FINANCIAL STATEMENTS DUE TO THE LAST DAY OF
      FISCAL YEAR FALLEN ON A NON-BUSINESS DAY. 223
    4. OTHER FINANCIAL ASSETS. 224
    5. SHORT-TERM BORROWINGS AND LONG-TERM BORROWINGS 226
      1. DETAILS OF SHORT-TERM BORROWINGS AND LONG-TERM BORROWINGS. 226
      2. PLEDGED ASSETS AND SECURED DEBTS. 228
      3. RECONCILIATION OF CHANGES IN LIABILITIES RELATING TO CASH FLOWS FROM
        FINANCING ACTIVITIES. 229
    6. OTHER FINANCIAL LIABILITIES 230
    7. FINANCE INCOME AND FINANCE COSTS. 231
    8. FINANCIAL INSTRUMENTS. 233
      1. FINANCIAL RISK MANAGEMENT. 233
      2. TRANSFERS OF FINANCIAL ASSETS 246
      3. FAIR VALUE OF FINANCIAL INSTRUMENTS. 248
      4. NETTING FINANCIAL ASSETS AND LIABILITIES. 252
  5. OTHER NOTES. 256
    1. MAJOR SUBSIDIARIES. 256
      1. SUBSIDIARIES. 256
      2. STRUCTURED ENTITIES. 256
      3. CONDENSED CONSOLIDATED FINANCIAL INFORMATION OF SUBSIDIARIES IN WHICH NTT

GROUP HAS SIGNIFICANT NON-CONTROLLING INTERESTS. 257