Nippon Telegraph and Telephone : Financial Results for the Three Months Ended June 30, 2022

Financial Results Release	August 8, 2022
For the Three Months Ended June 30, 2022	[IFRS]
Name of registrant	: Nippon Telegraph and Telephone Corporation ("NTT") / URL https://group.ntt/en/ir/
Code No.	: 9432
Stock exchanges on which the Company's shares are listed	: Tokyo
Representative	: Akira Shimada, President and Chief Executive Officer
Contact	: Takuro Hanaki, Head of IR, Finance and Accounting Department
	URL https://group.ntt/en/ir/contact/
Scheduled filing date of quarterly securities report	: August 9, 2022
Scheduled date of dividend payments	: -
Supplemental material on quarterly results	: Yes
Presentation on quarterly results	: Yes (for institutional investors and analysts)

1. Consolidated Financial Results for the Three Months Ended June 30, 2022 (April 1, 2022 - June 30, 2022)

Amounts are rounded to the nearest million yen.

(1) Consolidated Results of Operations							(Millions of yen)
	Operating Revenues	Operating Profit	Profit before Taxes	Profit Attributable to NTT
Three months ended June 30, 2022	3,068,871	6.1%	503,352	3.5%	525,537	5.9%	368,570	8.4%
Three months ended June 30, 2021	2,892,570	4.6%	486,274	(2.3)%	496,282	(0.1)%	339,987	24.7%

Notes: 1. Comprehensive income (loss) attributable to NTT: For the three months ended June 30, 2022: 452,072 million yen 19.3% For the three months ended June 30, 2021: 379,089 million yen 14.0%

2. Percentages above represent changes from the corresponding period of previous fiscal year.

Basic Earnings per

Diluted Earnings

Share Attributable

per Share

to NTT

Attributable to NTT

Three months ended June 30, 2022

104.07

(yen)

－ (yen)

Three months ended June 30, 2021

93.87

(yen)

－ (yen)

(2) Consolidated Financial Position

(Millions of yen, except equity ratio and per share amounts)

Total Assets

Total Equity

Shareholders'

Equity Ratio

Shareholders'

(Net Assets)

Equity

(Ratio of Shareholders'

Equity per Share

Equity to Total Assets)

June 30, 2022

24,403,316

9,294,449

8,514,340

34.9%

2,404.21

(yen)

March 31, 2022

23,862,241

9,018,132

8,282,456

34.7%

2,338.73

(yen)

2. Dividends

Annual Dividends

End of the first quarter

End of the second quarter

End of the third quarter

Year-end

Total

Year Ended March 31, 2022

－

55.00

(yen)

－

60.00

(yen)

115.00

(yen)

Year Ending March 31, 2023

－

Year Ending March 31, 2023

60.00

(yen)

－

60.00

(yen)

120.00

(yen)

(Forecasts)

Notes: 1. Revision to the dividend forecasts from the latest announcement: None

3. Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(Millions of yen, except per share amount)

		Operating Revenues	Operating Profit		Profit before Taxes	Profit Attributable to NTT	Basic Earnings per Share
											Attributable to NTT
Year Ending	12,600,000	3.6%	1,820,000	2.9%		1,822,000	1.5%	1,190,000	0.8%	340.00	(yen)
March 31, 2023
Notes: 1.	Percentages above represent changes from the previous fiscal year.
2.	Revision to the consolidated financial results forecasts from the latest announcement: None

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*Notes:

1. Change in significant subsidiaries during the three months ended June 30, 2022 (change in specific subsidiaries involving changes in the scope of consolidation): None
2. Change of accounting policy and accounting estimates
3. 1. Changes in accounting policy required by IFRS: None
   2. Changes other than (i): None
   3. Changes in accounting estimates: None
4. Number of shares outstanding (common stock)
5. 1. Number of shares outstanding (including treasury stock):

June 30, 2022	: 3,622,012,656 shares
March 31, 2022	: 3,622,012,656 shares
ii. Number of shares of treasury stock:
June 30, 2022	: 80,582,089 shares
March 31, 2022	: 80,580,190 shares

iii. Weighted average number of shares outstanding:

For the three months ended June 30, 2022	: 3,541,424,710 shares
For the three months ended June 30, 2021	: 3,622,007,051 shares

Note: The number of shares of treasury stock includes the Company's shares held by BIP(Board Incentive Plan) Trust (As of June 30, 2022: 1,073,566 shares, As of March 31, 2022: 1,089,760 shares). In addition, these Company's shares are included in the treasury stock which is deducted from the number of shares outstanding when calculating the weighted average number of shares outstanding during the period.

• This Financial Results Release is not subject to the quarterly review by a certified public accountant or audit firm.
• Explanation for the appropriate use of earnings forecasts and other notes:

This document is a translation of the authoritative Japanese original. The forward-looking statements and projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained or referred to herein and in other materials being released on TDnet concurrently with these documents, 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 and in such other materials.

On Monday, August 8, 2022, NTT will hold a presentation on its financial results for institutional investors and analysts. Shortly thereafter, NTT plans to post on its website explanatory details, along with the materials used at the presentation.

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1. Summary Information (notes)

1. Change in significant consolidated subsidiaries during the three months ended June 30, 2022, that resulted in changes in the scope of consolidation: None
2. Changes in Accounting Methods and Estimates: None

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2. Condensed Consolidated Financial Statements

1. Condensed Consolidated Balance Sheets

		Millions of yen
	March 31,	June 30,	Increase
	2022	2022	(Decrease)
ASSETS
Current assets
Cash and cash equivalents	834,564	924,727	90,163
Trade and other receivables	3,604,959	3,331,126	(273,833)
Other financial assets	88,441	112,207	23,766
Inventories	408,362	420,668	12,306
Other current assets	574,922	958,954	384,032
Sub Total	5,511,248	5,747,682	236,434
Assets held for sale	205,344	190,949	(14,395)
Total current assets	5,716,592	5,938,631	222,039
Non-current assets
Property, plant and equipment	9,326,888	9,395,204	68,316
Right-of-use asset	694,612	692,492	(2,120)
Goodwill	1,213,009	1,282,281	69,272
Intangible assets	1,951,824	1,990,937	39,113
Investment property	1,236,490	1,241,827	5,337
Investments accounted for using equity method	429,806	444,276	14,470
Other financial assets	1,426,157	1,505,528	79,371
Deferred tax assets	970,432	997,618	27,186
Other non-current assets	896,431	914,522	18,091
Total non-current assets	18,145,649	18,464,685	319,036
Total assets	23,862,241	24,403,316	541,075

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		Millions of yen
	March 31,	June 30,	Increase
	2022	2022	(Decrease)
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings	1,646,806	2,053,953	407,147
Trade and other payables	2,500,341	2,389,637	(110,704)
Lease liabilities	189,495	187,838	(1,657)
Other financial liabilities	29,566	24,477	(5,089)
Accrued payroll	544,455	458,579	(85,876)
Accrued taxes on income	210,964	127,617	(83,347)
Other current liabilities	1,129,851	1,050,280	(79,571)
Sub Total	6,251,478	6,292,381	40,903
Liabilities directly associated with assets held for sale	7,161	11,783	4,622
Total current liabilities	6,258,639	6,304,164	45,525
Non-current liabilities
Long-term borrowings	5,717,465	5,935,581	218,116
Lease liabilities	655,729	651,056	(4,673)
Other financial liabilities	135,686	138,700	3,014
Defined benefit liabilities	1,561,049	1,564,484	3,435
Deferred tax liabilities	137,474	148,679	11,205
Other non-current liabilities	378,067	366,203	(11,864)
Total non-current liabilities	8,585,470	8,804,703	219,233
Total liabilities	14,844,109	15,108,867	264,758
Equity
Nippon Telegraph and Telephone Corporation ("NTT")
shareholders' equity
Common stock	937,950	937,950	－
Retained earnings	7,293,915	7,442,780	148,865
Treasury stock	(226,459)	(226,482)	(23)
Other components of equity	277,050	360,092	83,042
Total NTT shareholders' equity	8,282,456	8,514,340	231,884
Non-controlling interests	735,676	780,109	44,433
Total equity	9,018,132	9,294,449	276,317
Total liabilities and equity	23,862,241	24,403,316	541,075

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