Company Presentation for the Fiscal Year Ended March 31, 2024

May 9, 2024 NTT DATA Group Corporation

© 2024 NTT DATA Group Corporation

This English text is a translation of

the Japanese original. The Japanese original is authoritative.

INDEX

  1. Results for the Fiscal Year Ended March 31, 2024
  2. Progress of the Medium-Term Management Plan
  3. Forecasts for Fiscal Year Ending March 31, 2025
  4. Investment and Financial Strategies
  5. Appendices
    1. Explanatory details of financial results and forecasts
    2. Mid- to long-term financial trends

Cautionary Statement Regarding Forward-looking Statements

  • Forecast figures in this document are based on current economic and market conditions. As changes in the global economy and information services market are possible, NTT DATA cannot guarantee their accuracy.
  • Services, products, and other names contained within this handout are trademarks, registered or otherwise, of NTT DATA Group Corporation and its subsidiaries, or other companies.

© 2024 NTT DATA Group Corporation

2

1

Results for the Fiscal Year Ended March 31, 2024

© 2024 NTT DATA Group Corporation

3

Results for the Fiscal Year Ended March 31, 2024

  • Net sales and operating profit increased mainly due to the business growth in Japan and Europe, in addition to the expanded consolidation of NTT Ltd. and impact of foreign exchange rates. On the other hand, profit decreased due to higher tax expenses, as well as increased financial expenses resulting from the increase in interest-bearing debts, etc.
  • The annual dividend is expected to be 23 yen per share, an increase of 1 yen from the previous fiscal year, as forecasted at the beginning of the fiscal year.

（Billions of Yen, %）

FYE3/2023

FYE3/2024

YoY

YoY

FYE3/2024

Differences from

(Apr-Mar)

(Apr-Mar)

(Amount)

(Rate)

Forecasts

Forecasts

(Amount/Rate)

Net Sales

3,490.2

4,367.4

+877.2

+25.1%

4,100.0

+267.4

106.5%

(Operating profit margin)

259.1

309.6

+50.4

+19.5%

Operating Profit

(7.4%)

(7.1%)

(-0.3P)

Profit Attributable to

150.0

133.9

-16.1

-10.7%

Shareholders of NTT DATA

Annual Dividend

22

23

+1

+4.5%

per Share (yen)

New Orders Received

Excl.

2,725.6

4,790.9

+2,065.4

+75.8%

NTT Ltd.

(Reference)

Excl.

NTT Ltd.

292.0 +17.6

(7.1%)106.0%

144.0 -10.1

93.0%

23 -

2,850.0 -

(*) The FYE3/2023 net sales and operating profit include the Oct.-Mar. result of NTT Ltd., which has been consolidated since Q3 FYE3/2023 period. NTT Ltd.'s result for new order received is excluded for FYE3/2023, but included from FYE3/2024 onwards.

© 2024 NTT DATA Group Corporation

4

2,725.6
FYE3/2023 Result
(Apr-Mar)
New Orders Received
Total
Japan

［Ref.］New Orders Received｜YoY Changes (FYE3/2023 and FYE3/2024)

New orders received increased mainly due to winning of large projects in Public & Social Infrastructure and Financial businesses

and North America, as well as the effect of expanded consolidation of NTT Ltd. and impact of foreign exchange rates.

Winning of large-scale projects

+1,862.7

+1.2

+2,065.4

（Billions of Yen)

for the central government

(+124.9)

＋ and ministries

+97.3(+35.7)

( ) shows the effect of

Winning of large-scale projects for the

North America

4,790.9

exchange rate (re-post)

＋ local financial institutions

+102.3(+88.1)

A reactionary decline following the

EMEA・LATAM

winning of a large-scale project for

+1,661.4

ー the retail and consumer goods sector

NTT Ltd.

in the previous fiscal year

+201.5

  • Effect of expanded consolidation of NTT Ltd.
  • Impact of foreign exchange rates
  • WinningAmerica of large-scale projects in North

Re-post

Public & Social

Infrastructure

Financial

Enterprise

Overseas(*)

North America

post-Re EMEA・LATAM

NTT Ltd.

Others

FYE3/2023

Apr-Mar

2,725.6 Excl. 1,445.2

NTT Ltd.

495.7

486.6

404.3

1,267.7

Excl. 468.0

NTT Ltd.

774.6

-

12.6

Japan

Overseas

Others

FYE3/2024 Result

(Apr-Mar)

FYE3/2024

FYE3/2024

FYE3/2023

FYE3/2024

(Billions of Yen)

Differences from

YoY Comparison

YoY Comparison

Apr-Mar

in Results

Forecasts

Forecasts (Amount)

Jan-Mar

Jan-Mar

in Results

4,790.9

+2,065.4

2,850.0

-

855.3

1,224.1

+368.8

1,646.7

+201.5

NTT Ltd.

1,484.0

+162.7

NTT Ltd.

503.4

490.9

-12.5

Excl.

Excl.

675.1

+179.4

520.0

+155.1

167.1

198.9

+31.8

527.7

+41.1

520.0

+7.7

201.6

156.3

-45.3

381.3

-23.0

390.0

-8.7

118.9

118.0

-0.9

3,130.4

+1,862.7

1,341.0

-

348.0

730.1

+382.1

Excl.

565.2

+97.3

547.0

+18.2

Excl.

117.7

142.6

+25.0

NTT Ltd.

NTT Ltd.

876.9

+102.3

761.0

+115.9

223.9

262.0

+38.0

1,661.4

+1,661.4

-

-

-

319.7

+319.7

13.8

+1.2

25.0

-11.2

3.9

3.1

-0.8

(*) New© 2024ordersNTTreceivedDATA GrofupNTTCorporationLtd. is excluded from the figures for FYE3/2023, and is included from FYE3/2024.

5

© 2024 NTT DATA Group Corporation

5

Net Sales ｜ YoY Changes （FYE3/2023 and FYE3/2024)

Net sales increased mainly due to the business growth in Japan and Europe, as well as the effect of expanded consolidation of NTT Ltd. and

impact of foreign exchange rates.

+774.2

+0.5

+877.2

＋ Impact of foreign exchange rates

（Billions of Yen)

(+171.4)

North America -7.6(+37.3)

4,367.4

＋ Business growth in Japan

( ) shows the effect of

EMEA・LATAM +136.0(+83.6)

4,100.0

exchange rate (re-post)

+102.5

NTT Ltd. +658.2(+49.0)

3,490.2

Expansion in the scale of

＋ Effect of expanded consolidation of NTT Ltd.

services for the central

＋ government and ministries

＋ Expansion in the scale of services in

Europe

  • Impact of foreign exchange rates Scrutiny of projects, etc. in North

Americaー

Japan

Overseas

Others

FYE3/2024 Result

FYE3/2024 Forecast

FYE3/2023 Result

(Apr-Mar)

(Apr-Mar)

(Billions of Yen)

Net Sales

Total

Japan

Re-post

Public & Social

Infrastructure

Financial

Enterprise(＊1)

Overseas

North America

post-Re EMEA・LATAM

NTT Ltd. (*2)

Others

FYE3/2023

FYE3/2024

FYE3/2024

YoY Comparison

Differences from

Apr-Mar

Apr-Mar

in Results

Forecasts

Forecasts (Amount)

3,490.2

4,367.4

+877.2

4,100.0

+267.4

1,654.4

1,757.0

+102.5

1,700.0

+57.0

635.9

692.3

+56.3

665.0

+27.3

662.2

696.2

+34.0

692.0

+4.2

505.2

535.2

+30.0

550.0

-14.8

1,880.4

2,654.5

+774.2

2,436.0

+218.5

594.3

586.7

-7.6

577.0

+9.7

692.5

828.5

+136.0

711.0

+117.5

Oct.-Mar.

582.8

1,241.0

+658.2

1,167.0

+74.0

-44.6

-44.1

+0.5

-36.0

-8.1

FYE3/2023

FYE3/2024

YoY Comparison

Jan-Mar

Jan-Mar

in Results

1,084.1

1,191.2

+107.2

483.5

510.3

+26.8

212.5

224.8

+12.3

180.0

194.0

+14.0

137.0

141.2

+4.2

615.1

696.4

+81.3

148.4

146.3

-2.1

184.2

226.8

+42.6

280.4

324.7

+44.3

-14.5

-15.4

-0.9

(*1) Following the reorganization in April 2023, the comparative year, Q3 FYE3/2023, also reflects figures after this reorganization.

(*2) NTT Ltd. has been consolidated since Q3 FYE3/2023, and the FYE3/2023 figures for NTT Ltd. pertain to the Oct.-Mar. period. © 2024 NTT DATA Group Corporation

© 2024 NTT DATA Group Corporation

66

Operating Profit｜YoY Changes (FYE3/2023 and FYE3/2024)

Operating profit increased mainly due to the effect of expanded consolidation of NTT Ltd. and sales growth, despite increase in overseas

business combination costs and structural transformation costs

+34.2 (+7.6)

-10.0

+50.4

＋ Impact of foreign exchange rates

Increase in profit in Public &

（Billions of Yen)

+26.2

＋ Infrastructure resulting from sales

309.6

growth

( ) shows the effect of

292.0

exchange rate (re-post)

Effect of expanded consolidation of

＋ NTT Ltd.

＋ Sales growth, etc.

259.1

Increase in profit, etc. resulting

ー Increase in business combination cost

＋ from business growth

Increase in structural transformation cost

FYE3/2023 Result

Total of the three

FYE3/2024 Result

FYE3/2024 Forecast

Overseas

Others

(Apr-Mar)

businesses in Japan

(Apr-Mar)

(Billions of Yen)

Operating Profit

FYE3/2023

FYE3/2024

FYE3/2024

FYE3/2023

FYE3/2024

YoY Comparison

Differences from

YoY Comparison

(operating profit margin)

Apr-Mar

Apr-Mar

in Results

Forecasts

Forecasts (Amount)

Jan-Mar

Jan-Mar

in Results

Total

259.1

309.6

+50.4

292.0

+17.6

75.6

112.5

+36.8

Total of the three

188.8

215.1

+26.2

208.0

+7.1

58.7

70.1

+11.4

businesses in Japan(*1)

Public & Social

68.6

89.3

+20.7

80.0

+9.3

30.7

38.5

+7.8

Re-post

Infrastructure

(10.8%)

(12.9%)

(+2.1p)

(12.0%)

(+0.9p)

(14.5%)

(17.1%)

(+2.7p)

Financial

68.8

71.4

+2.6

73.0

-1.6

18.2

19.1

+0.9

(10.4%)

(10.3%)

(-0.1p)

(10.5%)

(-0.3p)

(10.1%)

(9.8%)

(-0.3p)

Enterprise

51.4

54.4

+2.9

55.0

-0.6

9.8

12.5

+2.7

(10.2%)

(10.2%)

(-0.0p)

(10.0%)

(+0.2p)

(7.1%)

(8.9%)

(+1.7p)

Overseas

81.6

115.8

+34.2

99.0

+16.8

29.1

53.7

+24.6

(4.3%)

(4.4%)

(+0.0p)

(4.1%)

(+0.3p)

(4.7%)

(7.7%)

(+3.0p)

Others

-11.3

-21.3

-10.0

-15.0

-6.3

-12.2

-11.3

+0.9

(*1) The total of the Public & Social Infrastructure, Financial, and

Enterprise businesses is shown, as was the case in the fiscal previous year.

(*2) NTT Ltd. has been consolidated since Q3 FYE3/2023; therefore, FYE3/2023 figures include NTT Ltd.'s figures pertaining to Oct.-Mar. period.

7

© 2024 NTT DATA Group Corporation

7

［Ref.］Breakdown of Overseas Business

（Billions of Yen)

FYE3/2023

FYE3/2024

YoY

Forex Effects

YoY

FYE3/2024

Differences

FYE3/2023

FYE3/2024

YoY

Apr-Mar

Apr-Mar

(Amount)

（Rate）

Forecasts

from Forecasts

Jan-Mar

Jan-Mar

(Amount)

(*3)

(Amount)

Net Sales

1,880.4

2,654.5

+774.2

+171.4

+41.2%

2,436.0

+218.5

615.1

696.4

+81.3

Re-pos

North America

594.3

586.7

-7.6

+37.3

-1.3%

577.0

+9.7

148.4

146.3

-2.1

EMEA・LATAM

692.5

828.5

+136.0

+83.6

+19.6%

711.0

+117.5

184.2

226.8

+42.6

NTT Ltd.

582.8

1,241.0

+658.2

+49.0

+113.0％

1167.0

+74.0

280.4

324.7

+44.3

t

Oct.-Mar.

EBITA（*1）(*2)

111.6

166.5

+54.9

+9.3

+49.2%

145.0

+21.5

39.3

67.9

+28.6

(EBITA Margin)

(5.9%)

(6.3%)

(+0.3P)

(6.0%)

(+0.3P)

(6.4%)

(9.7%)

(+3.4P)

North America

41.9

42.3

+0.4

+2.7

+1.0%

44.0

-1.7

9.9

11.3

+1.4

(7.1%)

(7.2%)

(+0.2P)

(7.6%)

(-0.4P)

(6.7%)

(7.7%)

(+1.1P)

Re-post

EMEA・LATAM

29.9

37.6

+7.7

+3.8

+25.8%

40.0

-2.4

6.3

11.1

+4.8

(4.3%)

(4.5%)

(+0.2P)

(5.6%)

(-1.1P)

(3.4%)

(4.9%)

(+1.5P)

39.8

88.1

+48.3

79.0

+9.1

23.6

46.3

+22.6

NTT Ltd.

Oct.-Mar.

+4.3

+121.6％

(6.8%)

(7.1%)

(+0.3P)

(6.8%)

(+0.3P)

(8.4%)

(14.2%)

(+5.8P)

(Ref.) New Orders

1,267.7

3,130.4

+1,862.7

+124.9

+146.9%

1,341.0

-

348.0

730.1

+382.1

Excl.

Excl.

Received

NTT Ltd.

NTT Ltd.

Re-post

North America

468.0

565.2

+97.3

+35.7

+20.8%

547.0

+18.2

117.7

142.6

+25.0

EMEA・LATAM

774.6

876.9

+102.3

+88.1

+13.2%

761.0

+115.9

223.9

262.0

+38.0

NTT Ltd.

-

1,661.4

+1,661.4

-

-

-

-

-

319.7

+319.7

(*1) EBITA ＝ operating profit + amortization of intangible assets subject to purchase price allocation (PPA) arising from acquisition and others.

(*2) The planned annual business combination cost of ¥19.0 billion is included only in the FYE3/2024 forecast for the entire Overseas Segment, which is ¥145.0 billion. However, actual costs are recorded for each region, and the FYE3/2024 EBITA figures include the following costs: ¥19.9 billion for the entire Overseas Segment, ¥4.0 billion for North America, ¥7.6 billion for EMEA/LATAM, and ¥6.2 billion for NTT Ltd.

(*3) For NTT Ltd., the Forex Effects are calculated by comparing the respective average rates for Apr.-Mar. and Apr.-Sep. of the current fiscal year against those of the previous fiscal year, applying the difference to the cumulative results of the respective periods, and comparing the resulting amount.

(*4) NTT Ltd. has been consolidated since Q3 FYE3/2023, and the FYE3/2023 Net Sales and EBITA figures for NTT Ltd. pertain to the Oct.-Mar. period. New Orders Received of NTT Ltd. is excluded from the figures for FYE3/2023 and is included from FYE3/2024.

(*5) Foreign exchange rate (average rate): For FYE3/2024, USD 144.65 yen and EUR 156.82 yen; for FYE3/2023, USD

135.45 yen and EUR 140.99 yen. (For NTT Ltd., the average rate for Oct. 2022 - Mar. 2023 of USD 136.90 yen is used.)

8

2

Progress of the Medium-Term

Management Plan

(FY22-FY25)

© 2024 NTT DATA Group Corporation

9

Achieving the MMP goals through 5 strategies

To achieve MMP goals, maximize the value to our clients by implementing 5 strategies.

Strategy1｜Capitalize on the convergence

IT & Connectivity

Strategy 2｜

Strategy 3｜

Strategy 4｜

Strengthen

Evolve to

Enhance advanced

consulting

an asset-based

& development

with foresight

business model

Technology

Strategy5｜ Be the best place to work

Optimize strategic investments for business growth

© 2024 NTT DATA Group Corporation

What to be realized

Solve social issues through collaboration across industries and improve value provided through the utilization of Connectivity

Pillars of strategy

Enhance competitiveness and shift business portfolio by strengthening consulting and technological capabilities, which are thoroughly used as assets.

Base of strategy

Recruit and develop talents to maintain mid- to long-term competitiveness and create proactive workplaces.

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

NTT DATA Corporation published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 06:08:08 UTC.