NTT Data : General Meeting of Shareholders Materials(36th Business Report)

Note: This document is the English translation of "Dai 36kai jigyou houkoku" (36th Business Report) and is provided solely for reference purposes. In the event of any discrepancy between this translated document and the Japanese original, the Japanese original shall prevail.

BUSINESS REPORT

(From April 1, 2023 to March 31, 2024)

1 Matters Concerning the Current Status of the Corporate Group

1. Business Progress and Results

Economies and the management environment of the IT services industry in the current consolidated fiscal year are as follows:

The Japanese and global economies are on a gradual recovery trend overall, despite the effects of global monetary tightening, rising prices, and other factors.

Although the economic outlook is expected to continue to improve, we must pay close attention to risks such as a downturn in overseas economies due to geopolitical issues and other factors, and volatility in financial capital markets.

In the Japanese IT services industry, client companies continue to intensify their efforts in digital transformations (DX). Although a price hike and other factors may discourage them from investing in IT, the demand environment is expected to grow more steadily.

In overseas IT services markets, while there are concerns about a decrease in IT investment due to the impact of global monetary tightening, and weaknesses are observed in some regions, client companies continue to demand acceleration of DX and shifts to digital domains. The demand environment is therefore expected to grow steadily.

Progress on Management Policies

Toward the achievement of the Global 3rd Stage in 2025, the NTT DATA Group aims to realize a sustainable society together with our clients by creating value for the future and connecting various people with technology under the slogan "Realizing a Sustainable Future." To this end, we implemented the five strategies set out in the Medium-Term Management Plan (MMP) and promoted sustainability management. In July 2023, we completed the transition to a holding company structure and our trade name has been changed to NTT DATA Group Corporation ("NTT DATA" or "the Company"; together with its subsidiaries and affiliates, "NTT DATA Group" or "the Group").

[Strategy 1. Capitalize on the Convergence IT & Connectivity]

We provide comprehensive managed services, ranging from edge to cloud, born out of the convergence of IT & connectivity. We are working to realize cross-industry partnerships beyond enterprise and industry boundaries and create new social platforms and innovative services.

In fiscal 2023, we continued to see results of alignment between NTT DATA Group's ability to build systems, our existing strength, and service operations capabilities of NTT Ltd., a new member of the Group from 2022, in Edge to Cloud. In North America, for example, we won a contract from a globally operating manufacturer for building a platform to automatically control forklifts in a warehouse.

As part of our efforts to solve social issues, we have reached an agreement to provide a disaster management information transmission system (DPIS) for Indonesia. This system will enable the Indonesian government to deliver disaster information quickly to protect people's safety and security. In the future, we aim to integrate and standardize information from multiple disaster prevention organizations in Indonesia. Furthermore, we aim to roll out Japan's DX solutions and knowledge about disaster prevention.

[Strategy 2. Strengthen Consulting with Foresight]

We will enhance our industry consulting capabilities based on foresight pertaining to clients and industries as well as our technology consulting capabilities shaped by foresight related to technologies. With these enhanced capabilities, we will seek to support the growth of clients' businesses as a co- creative partner and to promote business transformation.

Taking advantage of our ability to provide value for our clients with foresight, in fiscal 2023, we won the contract that transcended the existing business areas by approaching the management challenges of a client in the transportation industry and completing the project from suggesting transformation to producing results.

[Strategy 3. Evolve to an Asset-Based Business Model] We will maximize the values we provide for our clients by

turning the NTT DATA Group's global technologies, expertise, and experiences into assets to achieve their efficient use.

In fiscal 2023, we applied "PITON,"(Note 1) a framework for operating a core banking system on an open infrastructure, to a shared system for regional banks "MEJAR,"(Note 2) and began operating the banking industry's first multi-banking open core banking system. We will continue to utilize PITON to make financial core banking systems open while working to realize a Cloud dedicated to banking systems in the future.

[Strategy 4. Enhance Advanced & Development Technology]

We are working to enhance both advanced technology utilization capabilities for securing future competitiveness and system development technology capabilities for improving productivity.

1

In fiscal 2023, we established the Global Generative AI Office to focus on transforming clients' value chains through global generative AI roll-out strategies and promote internal major transformations, including generative-AI- enabled radical improvement of business efficiency, promotion of innovations, and development of corporate culture. Leveraging on our more than 10 generative-AI- related assets, we are rolling out more than 200 co-creative projects with clients globally, and we internally promote the use of generative AI to enhance productivity in software development.

These efforts have been evaluated to be selected as one of the Horizon 3 Market Leaders, which is the highest rating in the HFS Horizons: Generative Enterprise Services, 2023 report published by HFS Research Ltd.

[Strategy 5. Be the Best Place to Work]

With "Best Place to Work" as the keyword, we aim to transform ourselves into an attractive company where diverse human resources can grow and play an active role. We are working to implement training programs to learn advanced technologies, support autonomous career development, introduce systems that enable diverse human resources to play an active role, and organize advanced workplace environments.

We promote diversity, equity, and inclusion(Note 3) through the Digital Boot Camp, a 2-month intensive program enabling learners to acquire digital skills; the Digital Acceleration Program, to acquire business experiences in advanced areas; development of digital human resources through the alliance with our partner companies, including AWS, Microsoft, and Google Cloud; the creation of workplaces where woman employees, young and management alike can play an active role; projects on LGBTQ and other sexual minorities; and promotional measures to hire the challenged.

As a result of these efforts, we have been recognized by the Top Employers Institute as Top Employer in 29 countries and four regions worldwide and become one of the 17 companies certified as Global Top Employer 2024.

In May 2023, we acquired the Global Equality Standard accreditation, which comprehensively rates companies in the areas of diversity, equity, and inclusion.

[Sustainability Management]

Toward the realization of a sustainable society and under the slogan of "Realizing a Sustainable Future," we will grow with our clients by solving social issues and contributing to global environments through business and corporate activities. In July 2022, we set up a total of nine material issues to work on to promote sustainability management, in addition to "Clients' Growth," "Regenerating Ecosystems," and "Inclusive Society" as three focuses.

As part of "Regenerating Ecosystems: Contributing to global environments" in fiscal 2023, in accord with the globally accelerating request for net-zero action, we revised 2021 version of our vision in response to climate change and newly established the NTT DATA NET-ZERO Vision 2040 in which we aim at virtually eliminating GHG emissions (Scopes 1 to 3) in both our company and our supply chain by 2040, instead of 2050.

According to this plan, we will adopt renewable energy and promote lower PUE at data centers, aiming at virtually eliminating both direct and indirect GHG emissions at the data centers we operate (Scopes 1 and 2) by 2030 and targeting virtually zero emission from the entire company, including its offices and others in Scopes 1 and 2 by 2035. We have received the net-zero target certification from the Science Based Targets initiative.

We also promote the creation of sustainability offerings that contribute to our clients' sustainability management, including C-Turtle, which has been successfully implemented in a cumulative total of 1,000 companies.

These efforts of ours have been evaluated, and we were selected as the Supplier Engagement Leader, the highest in CDP(Note 4)'s supplier engagement ratings, for two consecutive years. We were also among the top 1% in the Information Technology and Internet Software Services in The S&P Sustainability Yearbook 2024 published by S&P Global in the United States.

In addition, in April 2024, we established the Sustainability Management Innovation Committee as the governance system for promoting domestic and global sustainability management with Senior Executive Vice President and Director Responsible for Corporate Management as the chair.

[The Transition to a Holding Company Structure with New Overseas Businesses Management Structure]

Our Japanese businesses have continuously been expanding, and our overseas businesses have been also rapidly expanding thanks to the business combination with NTT Ltd. implemented in October 2022.

In light of these situations, the NTT DATA Group will shift to a global management structure toward the further expansion of its businesses. Under strategies that assume globalization, we will build mechanisms for innovations, marketing, governance, and delivery based on both domestic and global needs, commercial practices, and laws and regulations to respond to changing business environments rapidly. To achieve these objectives, we completed the transition to a holding company structure in July 2023.

Under this structure in which the Company commands and manages the Group's management while NTT DATA Japan Corporation, the operating company in Japan, and NTT DATA, Inc., the operating company overseas, autonomously manage their respective businesses, we will promote agile business management and appropriate governance.

In addition, in April 2024 NTT DATA, Inc. shifted to a new global business management structure. NTT DATA, Inc. is composed of regional units that provide one-stop offerings in each region, global units that provide globally common services, and global headquarters that assume corporate functions. It strengthens its engagement with clients as well as enhances its capabilities to provide global services by leveraging economies of scale.

2

Progress on Business Activities

To respond to the global acceleration of DX and diversified/sophisticated needs, we have expanded our offerings and cross- selling, taking advantage of our "Ability to Create" and "Ability to Connect."

In July 2023, we completed the transition to a holding company structure to enhance our agility and worked to provide diverse IT services, ranging from consulting through application development to infrastructure services.

[Summary of financial results for the 36th fiscal year]

Net sales and operating profit increased mainly due to the business growth in Japan and Europe, in addition to the expanded consolidation of NTT Ltd. and impact of foreign exchange rates. On the other hand, profit decreased due to higher tax expenses, as well as increased financial expenses resulting from the increase in interest-bearing debts, etc.

The annual dividend is expected to be 23 yen per share, an increase of 1 yen from FY2022.

(¥ Billion, except for net dividend per share [yen])

Year	35th Fiscal
Items	Year	36th Fiscal Year (FY2023)
(FY2022)
Net sales	3,490.2	4,367.4	+25.1%
+877.2
Operating profit	259.1	309.6	+19.5 %
+50.4
Profit attributable to shareholders of NTT DATA	150.0	133.9	-10.7 %
-16.1
Annual dividend per share	22	23	+4.5 %
+1

3

Japan

Mainly engaged in the business of providing high-value-added IT services that take into account market characteristics in Japan.

			1,757.0	Billion Yen				We utilized the world's cutting-edge best practices and
	Net Sales					technologies, focusing on five strategies established under
			(YOY +6.2%)				the MMP, to provide services that contribute to
						strengthening Japan's competitiveness, especially within
			186.7					Japan. While elevating the value of our services, we made
	Operating		Billion Yen				efforts to adjust transaction prices appropriately with
					regard to service fees, considering the current rise in
	Profit
		(YoY +9.9%)
					expenses such as labor, material, and energy costs.

The activities of each business in the Japan Segment are as follows.

● Public & Social Infrastructure

We operate a business that provides high-value added IT services that play important roles in social infrastructure, such as government, medical, communication, and utility systems as well as in regional development.

Efforts are increasingly underway toward a digital society, such as the expansion of digital services in government and quasi-public sectors (healthcare, education, disaster prevention, mobility, etc.) proposed in the "Priority Policy Program for Realizing Digital Society." To realize them, NTT DATA Group envisioned the future of a society with foresight-oriented approaches and aimed to expand our businesses by deepening client-focused business through application of advanced technology and value-added proposals, and developing social systems from a user's perspective.

・Commencement of providing D-Resilio Collaboration Platform

We began providing the D-Resilio Collaboration Platform, which supports the collection and linkage of disaster management information held by governments and companies. This platform focuses on aggregating and linking disaster management information, enabling proactive responses to disasters by assisting governments and companies in collecting precise information immediately when a disaster occurs.

4

・Commencement of developing the Disaster Management Information Transmission System (DPIS) in Indonesia In Indonesia, we launched a project aimed at developing the Disaster Management Information Transmission System (DPIS), a system that will enable the government to disseminate disaster information promptly to protect the safety and security of its people. Through this project, the country will be the first nation in which the L- Alert, a Japanese disaster information sharing system, will be implemented by the NTT DATA Group. Based on the L-Alert architecture, we will utilize our information distribution know-how cultivated through the D- Resilio Collaboration Platform to quickly disseminate information about tsunamis and earthquakes and urge people to evacuate, thereby contributing to Indonesian disaster preparedness measures. Furthermore, we plan to expand the scope to include information about other disasters, such as volcanic eruptions and floods.

The NTT DATA Group will accumulate know-how in disaster management DX solutions and know-hows both domestically and internationally and contribute to creating a highly resilient society.

● Financial

We operate a business that provides high-value added IT services that help financial institutions to improve their services and business efficiency.

As society has become more digitalized, financial services that cater to daily needs have appeared one after another. Amid such a situation, financial systems are increasingly required to balance reliability and progressiveness. NTT DATA continued to support safe and secure financial infrastructure permanently to achieve a sustainable society while aiming to develop and expand new financial services that connect industries.

joint-use core banking system>

The NTT DATA Group applied PITON, a framework the Group offers, to MEJAR, a system that is jointly used by five regional financial institutions, completed the transition to an open system, and launched the first multi-bank open core banking system in the Japanese banking industry.

Through this accomplishment, the NTT DATA Group confirmed the strong possibility of cloud migration of a joint-use core banking scheme. It took a step forward, and decided to apply the Integrated Banking Cloud, which is designed to provide a safe, secure, and continuous banking service at affordable costs, to the Regional Bank Integrated Services Center(Note 5) around January 2028, and started the development. The Integrated Banking Cloud is a domestically made cloud computing system designed specifically for banking systems that has the utmost reliability required for financial institutions. It will consolidate data centers, hardware, middleware, etc., and by providing a one-stop service, it will not only contribute to effective operation and reduction of financial institutions' administrative burden but also offer sustainable services.

The NTT DATA Group will continue to utilize cutting-edge digital technologies, proceed with the cloud migration of banking systems, and contribute to accelerating DX for enhancing customer experience value as a business partner of financial institutions based on the Open Service Architecture (OSA)(Note 6) concept.

● Enterprise

We operate a business that provides high-value added IT services that support manufacturers, distributors, and service providers, as well as payment services, provided in collaboration with other IT services.

In April 2023, NTT DATA reorganized its Enterprise business. It will promote a matrix management that consists of organizations taking advantage of their expertise in consultation, payment, and technology and industry organizations that manage them by industry to offer value to clients in a foresight-oriented,end-to-end manner. As a partner to help clients in various industries accelerate their business transformation, we, along with our clients, envisioned a desired state of business for particular industries and clients and consistently offered high value to realize it ranging from planning to business transformation by utilizing its advanced and development technologies.

5

<> participation in a DX project of JR Central>

The NTT DATA Group participated in the DX project of Central Japan Railway Company (JR Central) and successfully enhanced the client's membership base by connecting the digital marketing platform and the common station building operation system.

The railway sector has had to quicken new efforts to adjust to changes in the business environment since the COVID-19 crisis. JR Central had an idea of establishing a group's common point program(Note 7) with a vision that aims to enhance the value of cities along their railway lines and of traveling, in order to accelerate revenue growth for its entire business, including businesses of their group companies outside of the railway business.

In light of this challenge, the NTT DATA Group is working together with JR Central throughout the project to realize the vision, offering end-to-end assistance from consulting on specific point program designs and business process planning to proposing system implementation methods, developing systems, establishing concrete plans to expand services in the future, verifying effects, etc.

By connecting the digital marketing platform and the common station building operation system, this initiative allows the JR Central group to collectively manage customer information and point balances across the group businesses. In addition, by linking the program with the EX Service(Note 8), it contributes to the value enhancement of both businesses.

In our role of a business partner of our clients, the NTT DATA Group will continue to not only work in improving the current services but also suggest ways for the growth of clients' membership base and contribute to their business expansion.

6

Overseas

Mainly engaged in the business of providing high value-added IT services that take into account market characteristics in global businesses.

			2,654.5	Billion Yen				A	iming to transform our business structure to create
	Net Sales						synergies globally, we expanded offerings mainly in
			(YoY +41.2%)				consultation and digital businesses and increased the
						profitability in existing business fields by means such as
			166.5
			Billion Yen				promoting automation, and developing and enhancing
	EBITA
					digital talent as global basis. Furthermore, we have added
			(YoY +49.2%)				NTT Ltd.' strengths in infrastructure and connectivity, such
								as data center and network services, to our services, which
			115.8					are demanded in accelerating DX environment, to offer
	Operating		Billion Yen
					comprehensive services on a global scale and have
	Profit
		(YoY +41.9%)				responded to more complex and diverse digital needs of
								clients.

< Developing Robotic Lift Truck Technology with Hyster-Yale Group >

NTT DATA Services, in collaboration with NTT Ltd., was selected by Hyster-Yale Group, a leading global lift truck manufacturer, to create a traffic management platform (TMP) to support the movement of autonomous lift trucks. Launch by NTT DATA*X, who supports clients' digital experience, leads the development of a TMP.

Launch by NTT DATA(Note 9)'s expertise in developing a Minimum Viable Product (MVP(Note 10)) for the client to prove out the TMP concept and NTT Ltd.'s infrastructure capabilities were highly evaluated, leading to an order for this platform construction project. NTT DATA Services provides the platform to the client and their customers as a SaaS product license, and NTT Ltd. provides managed services for the network related to the platform, thereby enabling End to End delivery as One NTT DATA.

NTT DATA Services helps the client promote DX related to IT outsourcing by moving to the Azure cloud, introducing AI into service desk operations, and introducing support for device renewal. NTT Ltd. supports infrastructure modernization by improving and renewing networks.

Overview of a collaboration deal for Hyster-Yale Group

7

< Enabling Full-Stack Solution Offering to Major Multinational Corporation >

NTT DATA Services and NTT Ltd. have been awarded a contract to provide an IT environment for a global operating company following its divestiture from the parent company. NTT Ltd. carefully conducted requirements hearings, and by adding the capabilities of the application area of NTT DATA Services, we were able to meet the client's requirements not only in the infrastructure area but also in the application area, which led to winning the order for this project.

The company needed to separate the application and infrastructure from its parent company, following its divestiture from the parent company, and to run it as a stand-alone operation.

NTT DATA Services is in charge of the application area and NTT Ltd. is in charge of the infrastructure area. As One NTT DATA, NTT DATA Services and NTT Ltd. supported the company and completed the entire planned migration of its IT environment by March 2024.

NTT DATA Group is actively investing in the data center business, which is expected to grow on the back of strong demand. In fiscal year 2023, we launched 13 data centers in India, Germany, the United States, and Malaysia (226 MW in power capacity). We provide our data center services in approximately 30 cities worldwide, with approximately 120 centers and a size of approximately 1,120 MW.

We are also developing a partnership with other companies. In fiscal year 2023, we signed an agreement with the TEPCO Power Grid, Inc. to establish a new company to jointly develop and operate data centers in the Inzai- Shiroi area, Chiba Prefecture. We also decided on the joint operation of the data center business in Chicago, USA, with the Tokyo Century Corporation's group company.

8

●For reference: Breakdown of results by Segment

Japan Segment				(Billions of Yen, %)
				FYE3/2023 Results	FYE3/2024 Results	YoY (Rate)
Net Sales		1,654.4	1,757.0	+6.2%
			Public & Social Infrastructure	635.9	692.3	+8.9%
	Re-
	Financial	662.2	696.2	+5.1%
	post
			Enterprise	505.2	535.2	+5.9%
Operating Profit		169.9	186.7	+9.9%
			Public & Social Infrastructure	68.6	89.3	+30.1%
	Re-
		Financial	68.8	71.4	+3.8%
	post
			Enterprise	51.4	54.4	+5.7%
Overseas Segment				(Billions of Yen, %)
				FYE3/2023 Results	FYE3/2024 Results	YoY (Rate)
Net Sales		1,880.4	2,654.5	+41.2%
			North Americas	594.3	586.7	-1.3%
	Re-
		EMEA&LATAM	692.5	828.5	+19.6%
	post
			NTT Ltd.	582.8	1,241.0	+113.0%
EBITA		111.6	166.5	+49.2%
			North Americas	41.9	42.3	+1.0%
	Re-
		EMEA&LATAM	29.9	37.6	+25.8%
	post
			NTT Ltd.	39.8	88.1	+121.6%

9

Others

In October 2023, the Zengin Data Telecommunications System, operated by the Japanese Banks' Payment Clearing Network (hereafter, the "Zengin System"), experienced a glitch. We sincerely apologize to the member financial institutions and their customers, as well as our shareholders, for any inconvenience and concern it may have caused.

The NTT DATA Group has completed the full-scale corrective actions to integrate the fixed program. We have taken this failure so seriously and established the Comprehensive System Inspection Task Force, which is led by the President and comprised of experts from various divisions including quality assurance and technical divisions. The Task Force conducted thorough inspections of the Zengin System and other important systems under the supervision of the responsible officer in each field.

The stable operation of systems is the NTT DATA Group's mission. The entire group is committed to developing and operating more reliable systems to further contribute to our clients and society.

10