IR Presentation (pdf: 3.9 MB) 89pages

IR Presentation

Ver.2108

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, 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 in NTT's most recent Annual Securities Report and in any other materials publicly disclosed by NTT on its website.

• "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.
• "1Q" in this material represents the three-month period beginning on April 1 and ending on June 30, "2Q" represents the six-month period beginning on April 1 and ending on September 30, "3Q" represents the nine-month period beginning on April 1 and ending on December 31,
  and "4Q" represents the twelve-month period beginning on April 1 and ending on March 31.

Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION

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Contents

Overview of Consolidated Results for FY2021.1Q and FY2021 Forecast
FY2021.1Q Financial Results - Key Points	4
Status of Consolidated Results for FY2021.1Q	5
Contributing Factors by Segment for FY2021.1Q	6
FY2021 Forecast Summary	7-8
Overview of Medium-Term Financial Targets	9
Topics
Contributions to the Tokyo 2020 Olympic and Paralympic Games	11
Contributions to Sports through R&D	12
Initiatives in Response to COVID-19	13
Strengthening and Globalizing R&D	14
Initiatives to Create a Remote World	15
Transaction to Make NTT DOCOMO a Wholly Owned Subsidiary
Background	17
Toward NTT's Medium-Term Growth and Development	18-19
Primary Initiatives	20
Social Contributions through Initiatives	21
Financing and Financial Policy	22
NTT Group Medium-Term Management Strategy
Medium-Term Targets/ Transition of Medium-Term Targets	24-25
Overview of Medium-Term Management Strategy Initiatives	26
Global Business
Global Business Overview	28
Enhance Competitiveness in Global Business	29-30
Structural Reform of NTT Ltd.	31
NTT Ltd. Road to FY23	32
Smart City Project(Las Vegas City, Chicago City)	33-34
Global Data Centers Service delivery schedule	35
Mobile Communication Business
Recent Major Topics	37
Fast Expansion of 5G Area	38
Expansion of Customer Base	39
Provision of 5G Solutions	40
Smart Life Business: Principal Services	41
Growth and Scope Expansion of Finance/Payment Business	42
Creation of New Lifestyles	43
Digitalization of Sales Channel	44
Termination of FOMA (3G) Service	45

Other Businesses
Promote B2B2X Model	50
Strategic Business Alliance with Fujitsu for the	51
"Realization of a Sustainable Future Digital Society"
Create New Lines of Business	52-53
R&D
Worldwide promotion of research and development	55
Open access networks (O-RAN plus vRAN)	56
Three elements that make up IOWN	57
Shareholder Returns/ ESG
Shareholder Returns	59-60
Changes in Dividend	61
Record of Share Buybacks	62
Changes of EPS and Outstanding Shares	63
Promote ESG Management	64-66
Financial Data, etc.
NTT Group Formation	68
Trend in Consolidated Financial Results	69
Changes in Consolidated Operating Revenues	70
Changes in Consolidated Operating Income	71
Changes in CAPEX	72
Changes in Interest-bearing Debt	73
Medium-Term Debt Levels	74
Changes in Number of Employees	75
Age Distribution of Employees at NTT East, NTT West and	76
"Outsourcing Companies"
77
Changes in Personnel expenses
Broadband Access Services in Japan	78
Fixed Broadband Business FTTH Subscriptions	79
Share Buybacks and Cancellation	80

Attachment

Matters Currently under Consideration to Strengthen Collaboration after Making NTT DOCOMO a Wholly Owned Subsidiary

*The Document submitted for the commission at the Ministry of Internal Affairs and Communications

Fixed-line Communication Business
Local 5G utilization example	47
Migrate PSTN to IP Networks	48

Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION

*Released on December 25, 2020

Objectives and Initiatives Timeline for Implementation

Matters Currently under Consideration

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Overview of Consolidated Results for FY2021.1Q and FY2021 Forecast

Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION

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2021.1Q Financial Results - Key Points

・In FY2021 1Q, revenues and profit both progressed more strongly than expected.

• Operating revenues increased by 126.1 billion yen (an increase of 4.6%) year-over-year due to an increase in sales of devices by NTT DOCOMO and an increase in SI revenues at NTT DATA as a result of capturing increased demand for digitalization, among other factors
• Operating income decreased by 11.3 billion yen (a decrease of 2.3%) year-over-year due to strengthened initiatives to expand the 5G area and to further expand the Smart Life business by NTT DOCOMO, among other factors
• Profit increased by 67.3 billion yen (an increase of 24.7%) year-over-year, reaching a record high, due to the impact of including profit from the transaction to make NTT DOCOMO a wholly owned subsidiary, among other factors

・In order to enhance shareholder returns, we newly resolved to conduct up to 250.0 billion yen of share buybacks.

Ｑ：Given that operating income has decreased year-over-year, will it still be possible to achieve the annual plan?

Ａ：From and after the second quarter, we are anticipating an increase in income from the Smart Life area as well as cost reductions from the promotion of the digitalization of sales channels at NTT DOCOMO, in addition to an increase in revenues and increase in income in our overseas business as a result of the effect of structural reforms, and we believe than the plan can be achieved.

Q：Please discuss the sales status and future outlook following the introduction of new billing plans including NTT DOCOMO's "ahamo."

Ａ：As a result of the introduction of strategic billing plans, including "ahamo" and "Gigaho Premier," both net increases and MNP (mobile number portability) have improved as expected. With respect to "ahamo," acquisition of the younger market in particular has been strong, and the number of contracts has exceeded 1.8 million and is steadily increasing. In the future, we will continue to expand our customer base through optimized billing plans that meet customer needs and will work towards an increasingly positive MNP.

Ｑ：Please discuss the future outlook for overseas business.

Ａ：Although there has been a negative impact on SI revenues as a result of the spread of COVID-19, particularly in Asia, it is progressing well. We expect to see the effects of structural reforms on both NTT Ltd. and NTT DATA going forward, and we will continue to work to increase revenues and profit through the further expansion of high value-added services, such as NTT Ltd.'s data centers and managed services, and through increased sales from strengthening NTT DATA's digital offerings.

Copyright 2021 NIPPON TELEGRAPH AND TELEPHONE CORPORATION

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