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WEST Financial Results for the Fiscal Year Ended March 31, 2026 (NTT WEST Website)

May 8, 2026 at 9:29 AM UTC · Issued by Ntt Inc

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‌Financial Results for the Fiscal Year Ended March 31, 2026 (27th Term)

May 8, 2026

‌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 WEST 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 WEST in light of information currently available to it regarding NTT WEST 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 WEST 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, and other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein.

* “E” in this material represents that the figure is a plan or projection for operation.

** “FY” in this material indicates the fiscal year ending March 31 of the succeeding year.

‌FY2025 Financial Results and FY2026 Financial Results Forecast

In FY2025, NTT WEST’s operating revenues increased for the firs t time in four quarters, and operating profit rose for the firs t time in two quarters.

In FY2026, NTT WEST aims to continue increasing operating revenues and operating profit

（Billions of yen）

IFRS

(Consolidated)

FY2025

FY2024

Results

Year-over-year

FY2026

Compared to Forecast

Forecast

Year-over-year

Operating Revenues 1,468.6

1,504.2

+35.5

+32.2

1505.0

+0.8

Operating Profit

81.8

83.5

+1.6

+6.5

90.0

+6.5

Profit*

60.8

53.2

(7.6)

+3.2

54.0

+0.8

EBITDA

291.8

289.9

(1.9)

+2.9

295.0

+5.1

Capital Investment

239.8

251.2

+11.4

+1.2

245.0

(6.2)

Net Increase (Decrease) in Hikari Subscriptions (Number of Subscriptions)

+59,000

(10.34 million)

+95,000

(10.44 million)

+37,000

+35,000

+100,000

(10.54 Million)

+5,000

* Represents profit attributable to NTT WEST, excluding noncontrolling interests.

‌Status and Forecast of Operating Profit

Although there has been a decline in fixed voice-related revenue, operating profits increased in FY2025 due to the expansion of fiber-optic services and growth businesses, as well as ongoing cost

improvements

NTT WEST aims to increase operating profits in FY2026 by continuing various initiatives, and we will further accelerate these efforts to ensure sustainable growth in FY2027 and beyond

(Billions of yen)

81.8

90.0

Fixed voice- Expansion of

related revenue fiber-optic decline services

(21.0) +12.0

Expansion of

growth

segments, cost improvements, etc.

+11.0

Including the impact of inflation, etc.

related revenue

decline

(18.0)

Fixed voice-

※

Expansion

of fiber-optic services

+10.0

Expansion of

growth

segments, cost improvements, etc.

＋14.0

Including the impact of inflation, etc.

Achieve

sustainable growth

83.5

FY2024

※Excluding the impact of the rate revisions

FY2025

FY2026 (E)

‌Specific Initiatives for FY2026

Maintain and Expand the Communications Business

Expand the Enterprise Business
Expand New Services and Businesses
CX/EX Improvement / AI Implementation

‌1-1. Maintain and Expand the Communications Business ~Hikari Services~

We aim to expand sales of Hikari cross and all-unit subscriptions, and improve CX to increase net subscriber numbers and ARPU (basic fees)

Hikari Cross All-unit Subscription CX Improvements

Cross 1st proposal

Expand all-unit subscription plans for new buildings

Continuous improvements to increase customer loyalty

1.3x

1.6x

FY24 FY25 FY27

Double

¥3,170 ¥3,180

¥3,260

95,000

¥3,310

100,000

Increase ARPU (basic fees)

37,000

59,000

Increase numbers of net additions

2023 2024 2025 2026

‌1-2. Maintain and Expand the Communications Business ~Service Trans fers~

We are implementing network optimization proposals for half of the services scheduled to be discontinued in FY2026

We are implementing a preemptive transition of fixed-line telephone services (Phase 2 scheduled to be announced in Q1 2026)

Proposing Network Optimization for Approximately Half of the Services Scheduled to be Discontinued (approximately 500,000 business lines)

Implementing an Early Migration of Fixed-Line Telephone Services

Delivery/Support

Cloud

Security

BPO

Managed Services

FY2026

Around FY2028~

FY2035

Phase 1

(Announced in February 2026,

services to be discontinued in March 2027)

Areas requiring maintenance due to aging equipment
Areas where the transition is being carried out in

collaboration with local governments and other entities

Phase 2 (Scheduled Announcement Q1 2026)

In addition to the requirements for phase 1

Areas where it is difficult to maintain off-s ite containment systems
Phased transition in urban areas

Fixed-line telephone services

INS Net

Business ether wide

STM ※

Phased Announcements and Transition

Services

Scheduled to be Discontinued

Future Fixed-Line Telephone Services: Service Migration from Copper Lines to Fiber-Optic or Mobile Lines https://www.ntt-west.co.jp/denwa/2035denwa/

‌ Demand for use cases is materializing, such as Expo 2025 and rugby broadcasts

We aim to increase the number of projects by firs t expanding the coverage area in major cities

As data centers are concentrated in urban areas where land and power are in short supply, we are connecting data centers via IOWN to transition to a decentralized regional model

Expansion of Coverage Areas and Projects

FY2026 Expansion to major cities FY2027 Nationwide Expansion

From an Urban Model to a Decentralized Regional Model

Conventional Urban Model Data Centers

To ensure quality, distances of 10~30km between

data centers is the norm

FY2025

Kansai and Tokai regions

FY2026

Major Cities

Fukuoka, Hiroshima and others

FY2027

Nationwide

Growing demand for data centers is leading to a shortage of electricity and land

By connecting data centers via IOWN,

The project is currently expanding by about tenfold

都市部

IOWN

地域地域

大容量低遅延低消費

電力

Remote Productions Critical Lines

challenges related to land, power, costs and quality can be addressed through regional

Expo Sites

Hanazono Rugby Stadium

Local

Government Networks

University Network

decentralization

Professional Baseball

(Information Highways, etc.)

・・・

1-3. Maintain and Expand the Communications Business ~IOWN (All-Photonics Connect)~

‌2. Expand the Enterprise Business ~Zero Trus t Managed Service (Tentative Name)~

We plan to launch a managed service offering a Zero Trust environment tailored to the scale and

industry of our enterprise customers in October 2026 (with options for a public SASE model or a private SASE model)

Mid-sized

companies and SMEs

Remote

Environment

Local

Governments

Closed Network (NaaS)

Public SASE

Internet

Security for AI

Low latency, high bandwidth

SLA

High maintainability

NTT Data Center

Private SASE

Data

Internet

Data Centers

Cloud

Customers are able to choose between a

public SASE model and a private SASE model

Local Governments

Features Offered

A sovereign environment will be achieved by handling

security measures and storing logs within NTT’s domestic data centers*

A robust Zero Trust environment with closed networks and

private SASE**

Comprehensive managed services covering everything from

customer devices to various Zero Trust features

Security features tailored to mid-sized and small businesses

at a low cost to enable a Zero Trust environment

Mid-sized companies and SMEs

*Some functions will be processed outside of Japan.

**Secure Access Service Edge: A new network security concept that integrates network and security functions and delivers them through a unified platform.

‌3-1. Expand New Services and Businesses ~Solmare~

Expand of Comic C’moA, one of Japan’s largest e-bookstores

Strengthen comprehensive initiatives ranging from the production of original comics to licensing for anime and film adaptations

FY2026

Aim to grow revenue to over ¥100 billion by acquiring capabilities in areas such as print publishing and animation in the global market

FY2025

Global Expansion

Inhouse Original Works

FY2027~

Aim to grow revenue to more than

¥100 billion

Screened:

October - December 2025

Screening: April 2026~

Revenue of approx. ¥87.0 billion

‌3-2. Expand New Services and Businesses ~VOICENCE~

We launched of "VOICENCE," a voice AI business dedicated to protecting “the right to one’s voice” and enhancing “the value of one’s voice” (October 2025)

We are continuing to expand our network of partners and corporate clients, and our Trust technology was awarded firs t place in the "GENIAC-PRIZE".

Expanding the Corporate Use of VOICENCE Partners

In-house Developed Trust technology was Recognized and Awarded First Place in NEDO’s

“GENIAC-PRIZE*”

(Titles omitted)

4 People as of October 2025 9 people and 1 company as of March 2026

Challenges Posed by the Evolution of Generative AI

Tampering

Trust Technology: Building Trust

Authenticates Generative

Actor

Tetsuya Bessho

Voice Actress

Nozomi Kasuga

Voice Actor

Voice Actress

Voice Actor

Freelance Announcer

Natsuki Hanae

Tomoko Kaneda Shugo Nakamura

Sakiko Nojima

Impersonation

Unauthorized Generation

AI Content

Traceability

Vtuber KizunaAI

Voice Actress Omi Minami

Voice Actress Aya Uchida

amuleto

Tabio Corporation Mizkan Holdings Co., Ltd.

Pre-event social media

* A prize-based program (contest) organized by the Ministry of Economy, Trade and Industry and NEDO aimed at the societal implementation of generative AI

announcements and in-store radio

broadcasts for the birthday celebration campaign

Audio for business presentations

Audio for in-store promotions

*NEDO: National Research and Development Agency New Energy and Industrial Technology Development Organization

‌4-1. CX/EX Improvement ~Telecommunications Operations Reform~

By the Q4 FY2026, we will implement a s implified application process, flexible modification support, and progress visualization

Enhancing CX by making the standard a “web experience that is actually easier”

- In STEP 1 (Q4 2026), we will implement “customer self-service/automated order fulfillment” for key products, primarily FLET’S Hikari

- In STEP 2 (Q4 2027), we will streamline the service ordering process for our partner companies

Pre-Order

Application, Changes, and Other Procedures

Application ~ Coordination ~ Installation

Increase the automatic

processing rate for service orders

Visualization of

order progress

60％*

2％ *Automated processing rate, including up to Step 2

~ Installation ~ During Service Use

Application support

via AI Chat

Streamlined applications Can check the progress

through s implified address of your application after registration submission

Simplified identity

verification

Self-service procedures for

scheduling and rescheduling installation dates

Informational push notifications

(e.g., Retrieval of installation dates, etc.)

Can view your contract details

and submit additional applications on My Page

Mobile Support

Can be completed in 10 minutes or less

Order Installation

Placement Scheduling

Eliminating multi-step

communication through system integration

Automatic dispatching

and assignment of service orders

Automatic

assignment

Reception Distribution System System

Customers

Facilities Distribution

System System

Automatic Request

‌4-2. AI Implementation

Including the effects of initiatives to reform telecommunications operations, we aim to achieve cost savings of ¥14 billion by FY2030

The AI business is expected to generate projects worth ¥50 billion by FY2030

Expansion of the AI Business

Delivering new value to our customers through the advancement of AI-driven services

AI for Internal Company Use AI for Customers AI Based Business Trans formation

Improved customer experience and fundamental streamlining of business processes through the

Operational

Transformation

Streamlined creation of proposal materials and

business meetings minutes

・・・

Data-driven, push-based problem-solving proposals

utilization of AI

and Training

Employee development tailored to individual skills and experience

Visualization and utilization of employee skills

Efficient coordination and management in the event of a malfunction

Accident prevention through the detection of unsafe actions

AI Managed

・・・

Facilities Human Resources

✓

Real-time support

Enhanced support

Autonomous Driving

Early detection of obstacles, hazardous

behavior

Attack learning, early threat detection
Enhanced security measures

Security

・・・

AI AI AI

Aggregated Data

(Customer interactions, services usage, etc.)

Human Resources Information

Route control and optimization

・・・

‌ Measures to combat internal misconduct are scheduled to be completed by the end of FY2026 as planned

On-site inspections and risk mitigation measures for systems containing critical information
Identifying and managing risks using the “IT Asset Risk Management Database”

Specific Measures

Policy of phasing out external storage devices such as USB drives
Expansion of Zero Trust and layered defense to group companies, and strengthening of account management

As a security-first company, we will continue to strengthen our information security measures without letting past incidents or the countermeasures taken fade from memory

Measures to Combat Internal Misconduct
	Visualization of Risk

	Minimization of Risk Points

	Sophistication of Monitoring and Thorough Inspections
Strengthening of Information Security Promotion Systems

Preventing regulations and manuals from becoming mere formalities through s implification
Embedding awareness through layered training and workplace discussions

Operating a system that uses AI and correlation analysis to detect unauthorized operations, suspicious access, and other such activities
Operating a system for centralized monitoring and response to logs and detected data

Reference (For further information on the progress of NTT WEST Group's efforts to strengthen information security in light of the illegal access of customer information)*

https://www.ntt-west.co.jp/corporate/security/

Status of the Progress Towards Strengthening Information Security (Announced on March 31, 2026)