Group 1 - The event is named NTT PR/IR Day, focusing on the theme "Toward the Future with IOWN" [1][2] - Presentations will cover topics of high interest to investors, followed by a Q&A session [2] - The event is scheduled to conclude around 5:45 p.m. and will be available on demand later [2] Group 2 - Mr. Riaki Hoshino, Senior Executive Vice President and CTO of NTT Inc, will present on "Low-Power Optical Computing for the AI Era" [3]

Core Insights - NTT and Mitsubishi Heavy Industries Group have successfully demonstrated the world's most efficient optical wireless power transmission technology, capable of functioning effectively under atmospheric interference [1] Company Summary - NTT and Mitsubishi Heavy Industries Group are at the forefront of innovation in optical wireless power transmission, showcasing their technological advancements in a competitive industry [1]

Group 1 - NTT has announced a significant acquisition of NTT Data Group Corp. for 2.37 trillion yen (approximately 16.3 billion USD), aimed at enhancing its artificial intelligence strategy and simplifying its corporate structure [1] - The acquisition settlement is set to begin on June 26, with NTT currently holding about 58% of NTT Data's shares and offering 4,000 yen per share for the remaining shares to take the company private [1] - As one of the largest data center operators globally, the acquisition will position artificial intelligence as a core business for NTT Group, facilitating expansion in global markets [1] Group 2 - The Japanese government holds about one-third of NTT's shares and is promoting the development of domestic AI platforms to compete with international players like OpenAI and China's DeepSeek, with NTT competing alongside KDDI and SoftBank in the growing AI sector [1] - This acquisition reflects the regulatory pressure faced by Japanese corporate groups, as regulators urge companies to streamline their structures, particularly in light of warnings from the Tokyo Stock Exchange regarding listed parent-subsidiary structures [1] - Following NTT's move, NEC Group has completed the acquisition of its subsidiary NEC Networks and System Integration, and Toyota's chairman has also planned to acquire Toyota Industries, suggesting a trend of consolidation among Japanese companies [2]

Group 1 - NTT is making a move to acquire its subsidiary NTT DATA through a tender offer, aiming to make it a wholly-owned subsidiary [1] - This acquisition reflects NTT's strategy to consolidate its telecommunications operations and enhance its market position [1] - The decision indicates a trend in the telecommunications industry towards vertical integration and strengthening of core business units [1]

Group 1 - The core point of the article is that NTT is making a move to acquire its subsidiary NTT DATA, turning it into a wholly-owned subsidiary through a tender offer [1] Group 2 - The acquisition reflects NTT's strategy to consolidate its telecommunications operations and enhance its market position in Japan [1] - This move may lead to increased operational efficiencies and a stronger competitive edge for NTT in the telecommunications sector [1]

Financial Data and Key Metrics Changes - Operating revenue increased by JPY 332.9 billion, reaching JPY 10,049.7 billion, marking a record high for the third quarter, driven by growth in domestic and global revenue, particularly from the Smart Life Business at Docomo [10][129] - Operating profit decreased by JPY 87 billion to JPY 1,399.2 billion, attributed to declines in communication service revenues in mobile and fixed line segments, and increased marketing expenses [11][130] - Net profit was JPY 850.7 billion, down JPY 160.4 billion year-on-year due to declining operating profit and a rebound from gains on stock sales from the previous year [13][132] - EBITDA was JPY 2,552.5 billion, down JPY 19.2 billion year-on-year due to the decline in operating profit [12][131] Business Segment Data and Key Metrics Changes - Integrated ICT business segment showed year-on-year growth despite a decline in mobile communication service revenue, mainly due to growth in finance and payment in the Smart Life business [14][133] - Regional Communication Business segment experienced decreases in both revenue and profit due to reduced network revenue and the impact of slowing down non-core assets [15][134] - Global Solution business segment saw increased sales in public, financial, and corporate sectors in Japan, with operating profit rising year-on-year due to higher operating income in the data center business overseas [17][136] - The Others segment reported increased sales and profit year-on-year due to the expansion of data center engineering and NTT Urban solutions [18][137] Market Data and Key Metrics Changes - The net increase in optical fiber services showed year-on-year growth due to enhanced marketing efforts, with strong results in mobile network portability [12][131] - The company is actively reviewing its cost structure to achieve medium-term growth, particularly in the context of regional revitalization and urban development initiatives [16][135] Company Strategy and Development Direction - The company is focusing on strengthening its customer base and enhancing marketing efforts, despite the short-term impact on profits [32][36] - Plans to open hotels, parks, and cultural facilities in the Osaka area in connection with Expo 2025, indicating a commitment to regional development [20][139] - The company aims to expand its data center business in India, which holds the number one market share, and is planning to exhibit its business strategy at the Mobile World Congress [21][142] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in achieving annual profit targets but emphasized efforts to recover through cost reduction and improved sales quality [12][131] - The competitive landscape is expected to remain intense, particularly in the mobile communication sector, impacting profitability [82] - Management is optimistic about the growth potential in the AI market and plans to reinforce capacities in this area [45] Other Important Information - The company is exploring various initiatives for cost reduction and efficiency improvements across its operating companies [53][56] - There are ongoing discussions regarding shareholder returns, with a commitment to maintain dividend payments in line with conventional policies [60][61] Q&A Session Summary Question: Concerns about Integrated ICT business and ARPU - The management acknowledged the challenges in the Integrated ICT business, particularly regarding ARPU and service revenue, and indicated that marketing expenses are increasing to secure market share [26][30] Question: Profitability in the enterprise section - Management confirmed that the enterprise section is facing difficulties, particularly in the SME market, and emphasized the need to fortify the network business and offer tailored solutions [38][42] Question: Cost reduction initiatives - Management stated that fundamental cost reforms are planned, and various initiatives are being implemented to improve efficiency, although significant effects may not be seen immediately [52][54] Question: Impact of inflation on pricing - Management acknowledged the impact of inflation on pricing strategies and indicated that they are considering how to reflect these increases while remaining competitive [104][105] Question: AI initiatives and revenue generation - Management highlighted ongoing AI initiatives aimed at increasing revenue and improving operational efficiency, although specific financial impacts are not yet available [110][112]

Financial Performance - Operating Revenues reached a new record high of ¥10,049.7 billion, an increase of ¥332.9 billion or 3.4% year-on-year[8] - Operating Profit decreased by ¥87.0 billion or 5.9% year-on-year, reaching ¥1,399.2 billion[8] - Profit attributable to NTT decreased by ¥160.4 billion or 15.9% year-on-year, amounting to ¥850.7 billion[8] - EBITDA decreased by ¥19.2 billion or 0.7% year-on-year, totaling ¥2,552.5 billion[8] Segment Contributions - Integrated ICT Business Segment contributed ¥48.4 billion to the increase in Operating Revenues[11] - Regional Communications Business Segment contributed ¥231.6 billion to the increase in Operating Revenues[11] - Global Solutions Business Segment contributed ¥38.9 billion to the decrease in Operating Profit[11] Strategic Initiatives - NTT Group is scheduled to open hotels, parks, and cultural facilities in the Kansai area in connection with Expo 2025[17] - NTT DATA Leadership Event will launch the IOWN APN connection between data centers in Mumbai and the connection to MIST, the submarine cable connecting India, Singapore and Malaysia[24] - NTT Group plans to showcase its space business strategy and network operation solutions using generative AI at the Mobile World Congress (MWC) in Barcelona in March 2025[28] Shareholder Returns - The number of shareholders has grown by 2.7x compared to prior to the stock split (end of March 2023) to 2.47 million[52] - As of the end of January 2025, ¥161.7 billion of share buybacks have been executed out of the ¥200.0 billion buyback program[59, 60]

Financial Data and Key Metrics Changes - Operating revenue increased, reaching a new record high level year-on-year [4] - Operating profit decreased, and overall profit also decreased, while EBITDA increased year-on-year [4] Business Line Data and Key Metrics Changes - Specific details on individual business lines were not provided in the available content Market Data and Key Metrics Changes - Specific market data and key metrics were not provided in the available content Company Strategy and Development Direction and Industry Competition - Company strategy and future direction were not explicitly detailed in the available content Management's Comments on Operating Environment and Future Outlook - Management's comments regarding the operating environment and future outlook were not explicitly detailed in the available content Other Important Information - The briefing session was streamed live and will be available on the company's IR website later [3] Q&A Session Summary - No specific questions and answers from the Q&A session were provided in the available content

Financial Results for the Six Months Ended September 30, 2024 November 7, 2024 | --- | --- | |-------|-------------------------------------------------------------------------------------------------------------| | | | | | 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 ser ...

Group 1 - The core investment thesis for Nippon Telegraph and Telephone Corporation (NTT Corporation) is a Buy rating, driven by improvements in shareholder capital return and the potential listing of a data center REIT [1] - The investment focus is on identifying Asia-listed stocks that exhibit a significant gap between price and intrinsic value, particularly in the Hong Kong market [1] - The research service emphasizes deep value balance sheet bargains and wide moat stocks, targeting investments in high-quality businesses and hidden champions [1] Group 2 - The author of the investment analysis is affiliated with the Asia Value & Moat Stocks group, which provides monthly updates and watch lists for value investors [1]