Summary of Nippon Telegraph and Telephone Corporation (NTTYY) Earnings Conference Call Company Overview - **Company**: Nippon Telegraph and Telephone Corporation (NTTYY) - **Fiscal Year Ended**: March 31, 2024 - **Fiscal Year Forecast**: Ending March 31, 2025 - **Date of Conference Call**: May 10, 2024 Key Financial Results - **Operating Revenue**: Increased to ¥13,374.6 billion, a record high, despite a drop of ¥260 billion in electricity business revenue [6][7] - **Operating Profit**: Increased by ¥93.9 billion to ¥1,922.9 billion, driven by cost reductions and streamlining of non-core assets [7] - **Profit**: Increased by ¥66.4 billion year-on-year to ¥1,279.5 billion [7] - **EBITDA**: Increased by ¥127.9 billion year-on-year to ¥3,418.1 billion [7] - **Earnings Per Share (EPS)**: Achieved ¥14.8, meeting the previous medium-term financial plan target [7] Segment Performance - **Integrated ICT Business**: Revenue and operating profit increased due to growth in Integrated Solutions and Enterprise Business [8] - **Regional Communications Segment**: Experienced negative impacts from disaster recovery costs but achieved revenue and income increases through cost reductions [8][11] - **Global Solutions Business**: Revenue and operating profit increased, driven by public sector and enterprise business growth in Japan [8][12] - **Electricity Business**: Revenue dropped due to increased procurement costs, leading to operating losses compared to the previous year [9] Fiscal Year 2024 Forecast - **Operating Revenue**: Expected to increase year-over-year, aiming for record levels despite a ¥130 billion negative impact from currency [10] - **Operating Profit and EBITDA**: Anticipated to decrease year-over-year, but positive when excluding one-time factors from the previous year [10] - **Growth Strategy**: Focus on evolving measures towards medium-term goals for fiscal 2027, with an aim to expand base profit [10][13] Strategic Initiatives - **Streamlining Non-Core Assets**: Achieved ¥200 billion in asset streamlining, with approximately ¥100 billion in profit from these sales [25][26] - **Cost Structure Reforms**: Plans to implement drastic cost structural reforms to increase EBITDA by 20% by fiscal 2027 compared to fiscal 2022 [13] - **Data Center and Finance Business**: Separate disclosures planned for these growth areas to enhance stakeholder assessment of enterprise value [14][15] Shareholder Returns - **Dividends**: Year-end dividend per share increased to ¥2.6, with annual dividends forecasted at ¥5.2, marking the 14th consecutive year of dividend increases [11] New Initiatives - **NTT DOCOMO GLOBAL**: A new company to manage and promote global business, focusing on application services and Open RAN implementation [16] - **NTT Precision Medicine**: Establishment aimed at integrating healthcare data for personalized medical care [17] - **AI and Customer Experience**: Appointment of Chief Customer Experience Officer and Chief AI Officers to enhance customer engagement and promote AI initiatives [18] Environmental Goals - **Net-Zero Target**: Aiming for net-zero emissions by 2040, with interim targets for 2030 [18] Market Dynamics - **Data Center Business**: Expected to grow at a CAGR exceeding 20%, with plans to establish a strong global presence [35][36] - **Challenges**: High interest rates impacting investment strategies and cost structures [38] Conclusion - NTT is focused on achieving long-term growth through strategic asset management, cost reductions, and expanding its presence in high-demand sectors such as data centers and integrated ICT services. The company remains committed to shareholder returns while navigating market challenges and pursuing innovative initiatives.

Investors interested in Diversified Communication Services stocks are likely familiar with Vivendi SA (VIVHY) and NTT (NTTYY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate ...

Sergio Delle Vedove/iStock Editorial via Getty Images Investors can be forgiven if they hear about Nippon Telegraph And Telephone Corporation (OTCPK:NTTYY) and think it is an obsolete company not worth their time researching. While it's true that it is perhaps time to drop the word "Telegraph" from its name, and perhaps "Telephone" too while they are it, this is a company that is far from obsolete. It owns one of the leading mobile operators in the world, with excellent 5G coverage, and it is one of the mos ...

We now like to go on to the Q&A session. [Operator Instructions] From Nomura Securities, Masuno san, the floor is yours. Mr. Masuno, please from Nomura Securities. Thank you. Can you hear my voice? Daisaku Masuno Takashi Hiroi hopefully we'll be able to drive and offset any decrease to other segments. So we want to ensure that we achieve the target on a consolidated basis at the end of the full year. Thank you. Good, thank you. What about this sale proceeds -- processes of real estate? How much amount are y ...

Investors looking for stocks in the Diversified Communication Services sector might want to consider either Telefonica Brasil (VIV) or NTT (NTTYY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and ...

Investors looking for stocks in the Diversified Communication Services sector might want to consider either Telefonica Brasil (VIV) or NTT (NTTYY) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companie ...

Financial Data and Key Metrics Changes - Operating revenues increased by JPY 42.2 billion year-on-year, reaching JPY 111.1 billion, attributed to growth in the integrated ICT business and Gold Mobile Business Solution segments [6][8] - Operating profit decreased by JPY 28.7 billion year-on-year to JPY 474.7 billion due to increased upfront costs and rising electricity costs [7][8] - Profit increased by JPY 7.2 billion year-on-year to JPY 175.8 billion, supported by proceeds from sales of shares [8] - EBITDA decreased by JPY 18.9 billion year-on-year to JPY 838.5 billion due to the decline in operating profit [8] Business Segment Data and Key Metrics Changes - Integrated ICT business segment saw revenue growth due to increases in Enterprise and Smart Life businesses, although operating profit declined due to growth investments in Smart Life [9] - Regional communication business segment experienced declines in both operating revenue and profit due to reduced demand for fixed line voice services and increased operational costs [10] - Global Solutions business segment's revenue grew from domestic business growth, but operating profit declined due to integration-related costs and increased growth investments [11][12] - Other segment's operating revenue and profit declined due to reduced revenue from the electricity business [12] Market Data and Key Metrics Changes - The company reported a significant increase in the number of shareholders, with an 18% rise following the announcement of a stock split [17] - The impact of currency fluctuations contributed positively to revenue growth, particularly in the Global Solutions segment [11] Company Strategy and Development Direction - The company established three new entities aimed at creating new value, including NTT Innovative Devices Corporation and NTT Green and Food, Inc. [13] - A share buyback program of up to JPY 200 billion was announced to enhance shareholder returns and improve capital efficiency [14][15] - The company aims for carbon neutrality by 2040, with investments in renewable energy as a key strategy [24][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in operating profit but emphasized that performance is in line with full-year expectations, with plans for cost reductions in the second half of the fiscal year [20][21] - The company is prepared for a potential decline in electricity business revenue and is focusing on cost control to secure operating profit [22] - Management expressed confidence in achieving annual plans despite current challenges, with expectations for improved performance in the second half [39] Other Important Information - The company is addressing the impact of rising electricity costs, which increased by approximately 10% year-on-year [54] - The transfer of data center responsibilities to NTT Communications impacted revenue growth, but overall performance remained in line with expectations [59][70] Q&A Session Summary Question: Concerns about low operating profit and its alignment with expectations - Management confirmed that the decline in operating profit is due to anticipatory investments and cost control measures are being implemented to secure future profits [20][21] Question: Inquiry about Green Power and IIJ investments - Management highlighted the importance of investments in Green Power for achieving carbon neutrality and discussed the strategic rationale behind the investment in IIJ [24][27] Question: Impact of government share sales on buyback plans - Management indicated that they have the cash flow capacity to absorb government share sales and will consider various strategies for share buybacks [35][36] Question: Clarification on profit decline in NTT East and West - Management acknowledged that the profit decline is due to increased costs and assured that cost restructuring efforts are underway for the second half [38][39] Question: Details on electricity cost increases - Management reported a JPY 1.4 billion increase in electricity costs for NTT East and West, along with additional costs from system updates [73] Question: Performance of NTT Limited and data center operations - Management stated that NTT Limited's performance was in line with expectations, despite challenges related to semiconductor shortages affecting equipment sales [70]

May 12, 2023 Financial Results for the Fiscal Year Ended March 31, 2023 and Financial Forecasts for the Fiscal Year Ending March 31, 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 af ...

Financial Results for the Nine Months Ended December 31, 2022 February 9, 2023 | --- | --- | |-------|-------------------------------------------------------------------------------------------------------------| | | | | | 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 ...

Financial Data and Key Metrics Changes - Operating revenue increased by ¥176.3 billion year-on-year, reaching record high levels for the first quarter, driven primarily by NTT Data and NTT Limited [6][5] - Operating income rose by ¥17.1 billion year-on-year, attributed to increased revenue from NTT Data and NTT Limited [6] - Profit increased by ¥28.6 billion year-on-year, supported by tax deferred assets [7] - Overseas operating income margin improved by 2.1 percentage points to 6.1% due to increased operating income at NTT Data and cost reductions at NTT Limited [7] Business Segment Data and Key Metrics Changes - Integrated ICT business segment saw revenue increases in enterprise and Smart Life businesses, but overall revenue declined due to price reductions in the consumer business, offset by cost reductions [8] - Regional Communication Business segment experienced a decline in fixed line voice revenue, with expectations for revenue and operating income growth from system integration and cost reductions in the full year [9] - Global Solutions Business segment reported increased revenue from robust digitalization demand at NTT Data and value-added services at NTT Limited, along with cost reductions from structural transformations [10] Market Data and Key Metrics Changes - The company is experiencing strong demand for digital transformation (DX) both domestically and internationally, reinforcing its portfolio to accommodate this demand [11] - The company has entered a capital and business partnership with Genesis Healthcare Company to enhance its medical and healthcare business, acquiring a 19.3% stake [12] Company Strategy and Development Direction - The company is focusing on decentralizing its organization to enhance resilience, with plans to establish decentralized offices in Takasaki City and Kyoto [13] - The company is conducting field testing for hydrogen transportation, aiming to participate in hydrogen power generation systems [14] - New solutions are being developed in collaboration with SAP to improve logistics and insurance processes through IoT technology [15] - The medium-term management strategy initiatives are being emphasized, although detailed explanations were not provided [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing structural transformation and its positive impact on profitability, with expectations for continued revenue growth in the second half of the fiscal year [25][28] - The company is monitoring the semiconductor shortage closely, which has impacted equipment sales, but remains hopeful for improvements in the supply chain [22][61] - Management acknowledged the challenges posed by rising electricity prices but indicated that hedging strategies are in place to mitigate risks [50][52] Other Important Information - The company anticipates a full-year cost reduction target of ¥930 billion, with significant progress already made in the first quarter [68] - Free cash flow remains stable compared to the previous fiscal year, with no specific problems identified in operating activities [71] Q&A Session Summary Question: Inquiry about NTT Limited's top line and profit - Management confirmed that the data center business drove revenue growth, while equipment sales were impacted by semiconductor shortages [21][22] Question: Clarification on operating income and net profit - Management explained that net profit was influenced by tax deferred assets and gains from subsidiary sales, with structural transformation expected to positively impact profitability [24][25] Question: Demand outlook for data centers - Management indicated strong ongoing demand for data centers, although macroeconomic changes could impact customer investments [31] Question: Cost reduction progress and synergies from integration - Management reported ahead of plan cost reductions and emphasized the importance of integrating operations for further efficiencies [68][69] Question: Free cash flow situation - Management stated that free cash flow is stable, with specific variances attributed to DOCOMO's performance and investment activities [71]