Financial Data and Key Metrics Changes - Operating revenue for the nine months ended December 31, 2019, was JPY 8.862 trillion, an increase of JPY 67.5 billion year-on-year, marking record third-quarter levels for three consecutive years [4] - Operating income declined to JPY 1.450 trillion, representing a year-on-year decrease of JPY 76.7 billion [4] - Net profit increased to JPY 796.9 billion, reflecting a year-on-year increase of JPY 4.8 billion [5] - Overseas sales reached $14.7 billion, an increase of $0.7 billion year-on-year, with an overseas operating income margin of 2.5%, down 0.6 points year-on-year [6] Business Line Data and Key Metrics Changes - Mobile communications segment saw a decline in operating income due to restructuring and cost reduction efforts [9] - Regional communication business achieved an increase in operating income year-on-year, aligning with initial targets [10] - Long-distance and international communication business experienced a drop in operating income due to reorganization costs [11] - Telecommunication business saw robust growth in size, but operating income remained flat due to increased investment and restructuring expenses [12] Market Data and Key Metrics Changes - The company reported a positive trend in the regional communication business, particularly for NTT East and West, with expectations for continued growth [42][45] - The global business, particularly NTT Ltd., is undergoing rationalization, with a focus on improving profitability and efficiency [39][40] Company Strategy and Development Direction - The company is focusing on transitioning to high-profit, higher-margin businesses, including enhancing its data center operations and SD-WAN services [22][26] - A joint venture with Tokyo Century Corporation was announced, involving JPY 1.2 trillion in assets, which will help reduce liabilities on the balance sheet [13] - The company aims to streamline operations and reduce overhead costs as part of its integration strategy [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving the annual targets despite challenges, with a focus on improving integration and rationalization efforts [18][40] - The company anticipates a reduction in burdens for the next fiscal year as it accelerates rationalization efforts [40] - Management acknowledged the need for talent acquisition to support growth in managed services and data centers [48][50] Other Important Information - The company incurred JPY 11 billion in reorganization costs up to the third quarter, with similar costs expected in the fourth quarter [24][32] - The company is exploring options to securitize assets, including data centers and real estate, to improve capital efficiency [66][70] Q&A Session Summary Question: Status of NTT Ltd. and outlook for achieving full-year targets - Management indicated that NTT Ltd. is showing improvement, with a cumulative deficit of JPY 1.3 billion but positive trends in the third quarter [18] Question: Progress against internal plans and overall company performance - Management confirmed satisfactory progress across divisions, with DOCOMO's new rate shift contributing positively [36] Question: Future growth drivers for NTT East and West - Management expects continued cost reduction and efficiency improvements, despite a decline in fixed-line communications [58] Question: Competitiveness in managed services and data centers - Management believes the company is competitive in network-related services and is focusing on talent acquisition for growth [48][50] Question: Impact of equal work, equal pay on costs - Management has been proactive in addressing potential cost increases and aims to absorb any relevant costs through personnel reductions [82]

Financial Results for the Nine Months Ended December 31, 2019 February 6, 2020 | --- | --- | |-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Nippon Telegraph and Telephone Corporation (OTCPK:NTTYY) Q2 2020 Results Earnings Conference Call November 5, 2019 4:00 AM ET Company Participants Natsuko Fujiki - Head, Investor Relations Jun Sawada - President and CEO Akira Shimada - Senior Executive Vice President Takashi Hiroi - Senior Vice President, Head, Finance and Accounting Department Ryota Kitamura - Senior Vice President and Head, Corporate Strategy Planning Conference Call Participants Daisaku Masuno - Nomura Securities Satoru Kikuchi - SMBC Ni ...

Financial Results for the Six Months Ended September 30, 2019 November 5, 2019 | --- | --- | |-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - Operating revenue reached a record first quarter level of ¥2.9 trillion, an increase of ¥62.7 billion year-on-year [6] - Operating income declined by ¥32.0 billion year-on-year, totaling ¥505.2 billion, primarily due to a decrease in operating income margin from customer returns at DOCOMO [6] - Profit was ¥280.5 billion, a decline of ¥9.2 billion year-on-year [7] - Overseas sales increased by ¥0.1 billion, reaching $4.8 billion, while the overseas operating income margin decreased by 1.0 point to 1.6% [7][8] Business Line Data and Key Metrics Changes - Long distance and international communication business saw an increase in revenue, while the mobile communication segment experienced a decline in operating revenue [8] - The data communication segment and other segments increased due to the integration of NTT's consolidated subsidiary and expansion of Urban Sales [8] - The Regional Communication segment also saw a decline [8] Market Data and Key Metrics Changes - The share buyback program was announced with a maximum amount of ¥300 billion and a maximum of 53 million shares to be bought back [8] - The EPS target was revised upward from ¥456 to ¥462 due to the share buyback [8] Company Strategy and Development Direction - The company is focusing on integrating its global operations over the next two years, with anticipatory investments expected to increase [11][12] - Digital transformation initiatives are being promoted to reduce costs over time, although immediate cost reductions are not anticipated [20][22] - The company aims to expand its urban solutions business, targeting ¥600 billion in annual sales by 2025 through various redevelopment projects [44][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the performance of NTT DOCOMO, despite potential challenges from new rate plans affecting customer migration [17][18] - The integration expenses are expected to continue impacting operating income in the short term, but management anticipates a recovery in profitability starting from the third quarter [49] - The company is considering partnerships for large-scale investments to mitigate financial burdens [67][69] Other Important Information - The integration of ENNET as a consolidated subsidiary contributed ¥61.5 billion to revenue, with a slight positive impact on operating income [50] - The company is planning to centralize management of civil engineering-related facilities to enhance operational efficiency [25] Q&A Session Summary Question: Integration expenses in the long-distance international communication segment - Management confirmed that integration expenses for this fiscal year are expected to be above ¥10 billion, primarily impacting Dimension Data's operating income [12][15] Question: Drivers of performance exceeding internal plans - The operating income at NTT East and West exceeded expectations, but potential expenses in the second half of the year were noted [17] Question: Digital transformation impact on cost reduction - Management indicated that while immediate cost reductions are not expected, gradual reductions in personnel expenses are anticipated as digital systems are implemented [20][22] Question: Revenue growth in applications and content - The growth in applications and content was attributed to the integration of Plala with DOCOMO, although a decline is expected in the second quarter [34] Question: Future business strategies post-NTT Limited establishment - The company plans to integrate cost-related matters and enhance engagement with customers to improve profitability [55] Question: Medium-term investment areas - Key areas for potential investment expansion include data centers and urban solutions, with a focus on partnerships to manage financial risks [67][69]

Financial Results for the Three Months Ended June 30, 2019 August 6, 2019 | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...