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.
Copyright 2022 NIPPON TELEGRAPH AND TELEPHONE CORPORATION | 1 |
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 |
Copyright 2022 NIPPON TELEGRAPH AND TELEPHONE CORPORATION | 2 |
Overview of FY2021 Consolidated Results
Copyright 2022 NIPPON TELEGRAPH AND TELEPHONE CORPORATION | 3 |
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).
- Given that mobile communications revenues are expected to decrease, how will the NTT DOCOMO Group achieve increases in revenues and income in FY2022?
- 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.
- It was announced that NTT DATA and NTT Ltd. are integrating their global businesses. Please discuss the objective of the integration.
- 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.
- Please discuss your future strategies and policies for achieving the FY2023 target of EPS of ¥370.
- 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.
Copyright 2022 NIPPON TELEGRAPH AND TELEPHONE CORPORATION | 4 |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
NTT - Nippon Telegraph & Telephone Corporation published this content on 20 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2022 05:34:08 UTC.