IR Presentation (pdf: 5.1 MB) 80pages

IR Presentation

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.

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Contents

Overview of FY2021 Consolidated Results
Financial Results: Key Points	4
FY2021 Consolidated Results Highlights	5
Segments Revision	6
Contributing Factors by Segment for FY2021	7
FY2022 Results Forecast
FY2022 Forecast Summary	9
FY2022 Forecast Summary by Segment	10
FY2022 Forecast Summary (by Company)	11
Operating Revenue and Operating Income Trends	12
NTT Group Medium-Term Management Strategy
Directionality of Refinement of the Medium-Term Management Strategy	14
Directionality of NTT Group's Transformation	15
New Strategic Framework	16
Growth and Strengthening of the Newly Formed DOCOMO Group	17
Overview of Medium-Term Financial Targets	18
Changes in Medium-Term Targets	19
New DOCOMO Group Medium-Term Strategy
New DOCOMO Group Medium-Term Strategy	21-24
Transformation to a New Management Style
Transformation to a New Management Style	26-29
Integrated ICT Business
Growth and Business Portfolio Transformation	31
Growth of Enterprise Business	32
Convergence of Mobile/Fixed/Cloud Services	33
Value Proposition to Large Corporations	34
Value Proposition to SME Customers	35
Further Expansion of Smart Life Business	36
Actions for Business Expansion	37
Strengthen New Business Domains	38
Global Business
InitiativesforFurtherBusinessExpansion	40
Global Strategy	41
Value of combining NTT DATA and NTT Ltd. business	42
High-Level Timeline	43
Global Data Centers Service delivery schedule	44

Fixed-line Communication Business

Fixed Broadband Business FTTH Subscriptions	46
Migrate PSTN to IP Networks	47
Initiatives of a sustainable society, etc.
Sustainability Charter	49
Promotion of Sustainability	50
NTT Green Innovation toward 2040	51
Towards the Achievement of Carbon Neutrality	52
Initiatives in the Energy Business	53
Consolidation of Energy-Related Operations to	54
Accelerate the Expansion of the Smart Energy Business
Reinforcement of Corporate Governance	55
Real Estate Business	56
R&D
IOWN initiative	58
What's IOWN?	59
IOWN Rollout Plan	60
Shareholder Returns
Shareholder Returns	62
Changes in Dividend	63
Record of Share Buybacks	64
Financial Data, etc.
NTT Group Formation	66
Trend in Consolidated Financial Results	67
Changes in Consolidated Operating Revenues	68
Changes in Consolidated Operating Income	69
Changes in CAPEX	70
Changes in Interest-bearing Debt	71
Medium-Term Debt Levels	72
Changes in Number of Employees	73
Age Distribution of Employees at NTT East, NTT West	74
and "Outsourcing Companies"
Changes in Personnel expenses	75
Broadband Access Services in Japan	76
Trends in share buyback and cancellation	77
Changes of EPS and Outstanding Shares	78

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Overview of FY2021 Consolidated Results

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Financial Results: Key Points

• In FY2021, revenues and income both increased. Operating revenues, operating income and profit each reached new record-high levels, due in part to increased SI revenues both domestically and abroad at NTT DATA, which has captured increased demand for digitalization. Profit exceeded ¥1.0 trillion for the first time and EPS was ¥329, achieving the initial target of ¥320 two years ahead of schedule.
• For the FY2022 forecast, revenues and income are both expected to increase year-over-year, with operating revenues, operating income and profit each expected to set new record highs, and EPS is expected to be ¥340. In order to achieve the FY2023 medium-term financial target of EPS of ¥370, we will continue to work to increase synergies in the New DOCOMO Group, grow our overseas businesses and further promote DX, among other initiatives.
• With the goal of enhancing shareholder returns, the dividend forecast for FY2022 is ¥120 per share (an increase of ¥5 year-over-year), which would be the 12th consecutive year of dividend increases since FY2011, and we have also resolved to conduct share repurchases in an aggregate amount of up to ¥400.0 billion.
• With the launch of the New DOCOMO Group, beginning with the results for the end of FY2021, NTT Group's segments have been reorganized into a four-segment structure consisting of: Integrated ICT Business, Regional Communications Business, Global Solutions Business and Others (Real Estate, Energy and Others).

1. Given that mobile communications revenues are expected to decrease, how will the NTT DOCOMO Group achieve increases in revenues and income in FY2022?

1. We intend to increase revenues and income as follows: in the consumer communications business, we plan to expand our customer base and reorganize channels in order to minimize losses as much as possible; in the enterprise business, we will increase revenues by integrating the business structures of NTT DOCOMO and NTT Communications and strengthening our mobile/cloud/solutions, among other things; and in the Smart Life business, we will leverage our user base to grow our marketing solutions and finance/settlement business.

1. It was announced that NTT DATA and NTT Ltd. are integrating their global businesses. Please discuss the objective of the integration.

1. In order to further expand our business, we will strengthen our global governance by consolidating our global human resources, and will strengthen our global business capabilities for business users. By combining the "power to create" of NTT DATA with the "power to connect" of NTT Ltd., we will be able to obtain new competitive advantages and provide new value to our customers and to society.

1. Please discuss your future strategies and policies for achieving the FY2023 target of EPS of ¥370.

1. We are working to produce synergies of ¥100.0 billion in FY2023 through NTT DOCOMO's integration with NTT Communications and NTT Comware. In FY2022, we anticipate approximately ¥30.0 billion of synergies from the integration and strengthening of our business functions in our enterprise business, and the strengthening of our video services from the integration of NTT Plala, among other things. At NTT East and NTT West, we are working to increase revenues by increasing the net number of Hikari subscriptions and promoting regional revitalization, and through cost reductions such as the advancement of DX and other measures. In addition, at NTT DATA, we will use the global business integration as an opportunity to further expand our overseas business and increase income.

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