Nippon Telegraph and Telephone : REFINEMENT OF THE NTT GROUP MEDIUM-TERM MANAGEMENT STRATEGY

October 25, 2021

Company Name: Nippon Telegraph and Telephone Corporation Representative: Jun Sawada, President and Chief Executive Officer (Code No.: 9432, First section of Tokyo Stock Exchange)

REFINEMENT OF THE NTT GROUP MEDIUM-TERM MANAGEMENT STRATEGY

Nippon Telegraph and Telephone Corporation ("NTT") hereby announces to refine NTT Group medium-term management strategy which was announced on November 6th, 2018. Under refined management strategy, NTT will contribute to achievement of sustainable society through "Enhance Domestic and Global Business" as well as "New Management Style Suitable for a Decentralized Network Society" and "Enhancement of Corporate Value thorough ESG Initiatives" which was publicized on Sep 28th, 2021*1*2.

1. Background

The decoupling of the world is accelerating due to COVID-19 pandemic and a remote/decentralized society is

advanced. These situations make progress in digitalization and Digital Transformation (DX), on the other hand, negative aspect of digitalization such as surveillance society has appeared. In addition, our environment is dramatically changing with increasing the importance of economic security and scale of natural disasters worldwide. To respond these environmental changes, NTT refined the NTT Group medium-term management strategy to accelerate the transformation into an open global innovative new NTT with its vision "As Your Value Partner, NTT Group will aim to resolve social issues through its business activities with partners".

2. Details of Refinement of NTT Group Medium-Term Management Strategy

NTT Group will deploy its business with following transformation while responding future social economic directionality.

(1) Enhance of Domestic and Global Business

NTT Group will enhance its domestic and global business to respond advancement of digitalization/DX. NTT Group will accelerate following activities.

1. Growth and strengthening of the newly formed DOCOMO Group

1. Promotion of the IOWN development/rollout plan

1. Enhance competitiveness of global business IV. Promote of the B2B2X model

1. Strengthening of new business

1. Transformation to a New Management Style

Looking ahead to post Covid-19 era, the NTT Group aims to transform a new management style*1 premised on remote work by revision of rules and improvement of IT environments as well as reforming various operations.

(3) Enhancement of Corporate Value

NTT Group aims to enhance its corporate value through following activities for ESG (Environment, Society and Governance) toward achievement of Well-being society.

1. New environment and energy vision*2 II. Disaster countermeasure initiatives

1. Enhancement of shareholders' return

3. Refinement of Medium-Term Financial Targets

Medium-Term Financial Targets are refined based on refinement of NTT group medium-term management strategy as follows. (Highlighted by blue)

	Target			Current Target		New Target		(Reference)
					FY2021 Plan
	EPS		Approx. ¥320		¥370		¥302
		(FY2023)		(FY2023)
	Overseas Sales (1)(2)		$25B		―		＄19B
		(FY2023)		(FY2023)
	Overseas Operating Income	7%		7%		6%
	Margin (1)		(FY2023)		(FY2023)
	Cost Reductions (3)		At least		At least
	(In Fixed-Line/Mobile Access		¥(800.0) billion		¥(1,000.0) billion		¥(840.0) billion
	Networks)		(FY2023)		(FY2023)
	ROIC	8%		8%		7.4%
		(FY2023)		(FY2023)
	Capex to Sales (4)		13.5% or less		13.5% or less		13.5%
	(Domestic Network Business)		(FY2021)		(FY2021)

1. Includes results from the global holding company, its subsidiaries and its affiliates. Overseas Operating Income excludes temporary expenses, such as M&A-related depreciation costs of intangible fixed assets.
2. In addition to the change in accounting for some of the income, the impact of COVID-19 is also significant, so no target is set.
3. Figures above show cumulative reductions since FY2017.
4. Excludes NTT Communications' data centers and certain other items.

4. Reference Material

・Presentation Slides

・Attachment document

1. NTT transforms to a New Management Style, Sep 28, 2021https://group.ntt/en/newsrelease/2021/09/28/210928b.html
2. NTT Group's New Environment and Energy Vision "NTT Green Innovation toward 2040", Sep 28, 2021https://group.ntt/en/newsrelease/2021/09/28/210928a.html

For further inquiries, please contact:

INOUE or MIZUTA Investor Relations Office Finance and Accounting Department

Nippon Telegraph and Telephone Corporation Contact us by email: https://group.ntt/en/ir/contact/

Refinement of the NTT

Group Medium-Term

Management Strategy

October 25, 2021

Directionality of Refinement of the Medium-Term Management Strategy

Effect of Synergies in

the Newly Formed

DOCOMO Group

Transformation to a New Management Style (Further Promotion of DX)

New Environment and Energy Vision

FY2023

Profit Increase

of

¥100.0 billion

FY2023

Cost Reductions

over ¥200.0

billion

FY2023

Minimal Impact

on Costs

Achieving

EPS of ¥370 in FY2023

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