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1、IR PresentationVer.250201February,2025 1Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONThis 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 subsid

2、iaries and affiliates contained or referred to herein are based on a series of assumptions,projections,estimates,judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates,the economy and telecommunications indus

3、try in Japan and overseas,and other factors.These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates,the state of the economy in Japan and abroad,possible fluctuations in the securities markets,the pricing of services,the effects of

4、 competition,the performance of new products,services and new businesses,changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere,other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to he

5、rein,as well as other risks included in NTTs most recent Annual Securities Report and in any other materials publicly disclosed by NTT on its website.*“E”in this material represents that the figure is a plan or projection for operation.*“FY”in this material indicates the fiscal year ending March 31

6、of the succeeding year.2Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONContentsOverview of FY2024.3Q Consolidated ResultsStatus of Consolidated Results for FY2024.3Q4Contributing Factors by Segment for FY2024.3Q5FY2024 Results ForecastFY2024 Forecast Summary7FY2024 Forecast Summary by Segm

7、ent8Current Profit Levels and Initiatives to Reach Medium-Term Targets9Integrated ICT BusinessStatus of Results for FY2024.3Q11-13Smart life14-17Consumer communication18-22Enterprise 23-24Network25Targets for each indicator toward FY202726Global Solutions BusinessStatus of Results for FY2024.3Q28-33

8、Status of investments and orders,etc.in the data center business34Financial performance of the data center business35Data Center Business as a Growth Engine36Expansion and Upgrade of Data Centers37NTTs Position In The Global Market38Regional Communications BusinessInitiatives to Restore Business Res

9、ults 40Direction of Each Business Portfolio41Evolving and Expanding the Enterprise Network Business42Current Targets for Fiber Optical Services and Efforts to Expand Sales43-45Reforming Telecommunications Operations through DX and AI46-47Exit from Unprofitable Services48Migration to Alternative PSTN

10、 Services49Further Expansion of Growth Businesses50Initiatives of a sustainable society,etc.Sustainability Charter52Targets of“NTT Green Innovation toward 2040”53Outlook of NTT Groups Energy Consumption54Towards Achieving Net Zero in 204055Current Status and Future of Renewable Energy Business56New

11、Green Transformation Initiatives(GX)57Reinforcement of Corporate Governance 58R&DIOWN initiative60IOWN From Vision to Reality-and Beyond61IOWN2.0-Optical Based Computing62Future path for IOWN63Achieved the Worlds First International IOWN APN Connection64NTTs LLM tsuzumi 65-66Plan to establish“NTT AI

12、-CIX”to Promote Linked AI67Shareholder ReturnsRecord of Share Buybacks69Changes in Dividend70Number of Shareholders71Financial Data,etc.NTT Group Formation73Trend in Consolidated Financial Results74Changes in Consolidated Operating Revenues75Changes in Consolidated Operating Income76Changes in CAPEX

13、77Changes in asset composition78Changes in Interest-bearing Debt79Changes in Number of Employees80Changes of Outstanding Shares81Age Distribution of Employees at NTT East and NTT West82Fixed Broadband Business FTTH Subscriptions 83Broadband Access Services in Japan84（Attachment）NTT Group New Medium-

14、Term Management Strategy*Released on May 12,2023Fundamental Principles86-88Pillars of Our Initiatives89NTT as a Creator of New Value and Accelerator of a Global Sustainable Society90-97Upgrading the Customer Experience(CX)98-99Improvement of Employee Experience(EX)100-102Medium-Term Financial Target

15、s103Strengthening Our Ability to Generate Cash for Growth104Increase Investments to Achieve Further Growth105Fundamental Policy on Shareholder Returns1063Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONOverview of FY2024.3Q Consolidated Results4Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE

16、CORPORATIONOperating Revenues increased,Operating Profit and Profit decreasedOperating Revenues reached new record-high levelsStatus of Consolidated Results Operating Revenues:10,049.7B Operating Profit:1,399.2B Profit(1):850.7B EBITDA(2):2,552.5B (1)Profit presented above represents the profit attr

17、ibutable to NTT,excluding noncontrolling interests.(2)EBITDA,and the depreciation and amortization included in its calculation,excludes all depreciation and amortization related to right-of-use assets.Status of Consolidated Results for FY2024.3Q5Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORAT

18、IONContributing Factors by Segment for FY2024.3QIntegrated ICTBusiness SegmentGlobal SolutionsBusiness SegmentOthers(Real Estate,Energy and Others)Elimination ofInter-SegmentTransactionsOperating RevenuesOperating Profit(Billions of yen)Integrated ICTBusiness SegmentRegionalCommunicationsBusiness Se

19、gmentGlobal SolutionsBusiness SegmentOthers(Real Estate,Energy and Others)Elimination ofInter-SegmentTransactionsRegionalCommunicationsBusiness Segment48.4231.610,049.72,279.63,407.89,716.94,567.31,201.51,399.238.9295.6236.068.30.7833.954.713.043.9FY2023.3QFY2024.3QFY2023.3QFY2024.3QFY2024.3QFY2024.

20、3Q1,486.226.71.178.46Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONFY2024 Results Forecast7Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONFY2024 Forecast SummaryConsolidated Revenues and Income PlanFY2023 ResultsFY2024 ForecastYear-on-YearOperating Revenues13,374.6B13,460.0B+85.

21、4BOperating Profit1,922.9B1,810.0B(112.9B)Profit(1)1,279.5B1,100.0B(179.5B)EBITDA3,418.1B3,330.0B(88.1B)(1)Profit represents profit attributable to NTT,excluding noncontrolling interests.Operating Revenues will increase year-over-year while Operating Profit and Profit will decrease year-over-year8Co

22、pyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONFY2024 Forecast Summary by SegmentOperating RevenuesOperating Profit(Billions of yen)13,460.062.63,070.04,430.0104.013,374.66,244.01,680.015.11,810.01,922.926.4290.0336.025.636.81,170.023.019.6Integrated ICTBusiness SegmentRegionalCommunications

23、Business SegmentGlobal SolutionsBusiness SegmentOthers(Real Estate,Energy and Others)Elimination ofInter-SegmentTransactionsIntegrated ICTBusiness SegmentGlobal SolutionsBusiness SegmentOthers(Real Estate,Energy and Others)Elimination ofInter-SegmentTransactionsRegionalCommunicationsBusiness Segment

24、FY2023FY2024EFY2023FY2024EFY2024EFY2024E113.2147.747.19Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONCurrent Profit Levels and Initiatives to Reach Medium-Term TargetsWe actively streamlined non-core assets to achieve the previous medium-term targets,for which FY2023 was the final year,an

25、d achieved significant profit increases and reached those targets in FY2023 as a resultAlthough profits are expected to temporarily decline in FY2024,we will actively work on expanding growth areas and implementing cost structure reforms in order to achieve the new medium-term targets in FY2027FY202

26、2FY2023FY2024FY2027Streamlining non-core assets,etc.EBITDA+20 increase(compared to FY2022)Actively investing in growth areas,maximizing returnsStrengthening domestic and international enterprise business by leveraging integrated synergiesDrastic cost structure reforms10Copyright 2025 NIPPON TELEGRAP

27、H AND TELEPHONE CORPORATIONIntegrated ICT Business11Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONRecorded increase in revenues,with growth of Smart life more than offsetting the decrease in mobile communications services revenues and negative impact of PSTN migration,etcKey factors behin

28、d changes in operating revenuesYear-on-year+48.4FY23/3QFY24/3Q4,518.84,567.3Smart life+108.5Consumer communications-44.9(Billions of yen)Growth of finance/payment,etc.Enterprise-9.1Consumer+62.1Increase in equipment salesrevenues(PSTN-25.2)PSTNmigration impact,etc.Organic growthDecrease inmobilecomm

29、unicationsservices revenuesIrregular factor for FY2023*-32.8-53.3+23.7+8.4+129.7-21.2*Impact of reduced“MyNa Point”revenues in FY2023.12Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONRecorded decrease due mainly to the decline in mobile communications services revenues,increase in expenses

30、 for customer base reinforcement and impact of PSTN migration of enterprises,despite the organic growth of Smart life business.Key factors behind changes in operating profitYear-on-year-68.3902.2833.9Smart life+36.0Consumer communications-91.4Enterprise-12.8Consumer-55.5+50.3Sales promotion reinforc

31、ementcosts,etc.+6.3(PSTN-17.0)-53.3-38.1-19.1FY23 3QFY24 3Q-14.3Irregular factorsfor FY23*(Billions of yen)Growth of finance/payment,etc.Decrease inmobilecommunicationsservices revenuesPSTN migration impact,etc.Organic growth*Impact of reversal of credit card allowance in FY2023.13Copyright 2025 NIP

32、PON TELEGRAPH AND TELEPHONE CORPORATIONFocused on priority initiatives for FY2024,i.e.,customer base expansion,communication service quality improvement and ARPU growth.Established the business foundation that will lead to a recovery trend for Consumer business in FY2025 or beyond.Consumer Business:

33、Performance HighlightsFY2024 Priority actionsWhile costs increased due to initiatives for customer base reinforcement and communication service quality improvement,DOCOMO achieved net inflow of individual MNP subscribers in FY24/3Q.The migration rate to“eximo”plan has been maintained above 60%,and t

34、he YOY changes in monthly ARPU continued to moderate over time.Customer base reinforcementCommunication service quality improvementARPU growth by promoting migration to“eximo”Increase mobile communication revenues by improving handset net adds performance and halting the decline of ARPUGrow Smart li

35、fe businessleveraging a solid customer base14Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONRecorded revenue growth in all business domains driven mainly by finance and payment.Operating revenues152.2157.986.9121.4271.0333.4 Factors behind change+）Finance/payment+62.4 billion(Excluding FY2

36、3 irregular factors(-21.2 billion)+83.6 billionAcquisition of card members,increased“d-Barai”usage+）Marketing solution+34.5 billionExpansion of marketing DX revenues+）Entertainment+5.6 billionExpansion of video services(“Lemino”,“d anime store”,etc.)Increase in subsidiary revenuesFY23/1-3Q cumulativ

37、eFY24/1-3Q cumulativeOperating revenuesHighlights+108.5795.9904.4(Billions of yen)Finance/paymentMarketing solutionsEntertainmentOthers*Revenues for each domain represent management accounting data.“Others”include consolidation journal entries and eliminations between segments.15Copyright 2025 NIPPO

38、N TELEGRAPH AND TELEPHONE CORPORATIONFinance/payment transactions grew to 11 trillion.Expanded card variety catered to diverse user needs to achieve further growth.Finance/Payment“d CARD PLATINUM”(Launched November 2024)“d CARD GOLD U”(Planned for launch in FY2024/4Q)Membership topped 347 thousand(A

39、s of Jan.31,2025)*3:Details pertaining to“d CARD GOLD U”will be provided separately on DOCOMO home page.A new GOLD card for young users,which offers compelling benefits and services comparable to GOLD card Greatly contributing to growth of finance/payment transactionsAverage monthly card usage of d

40、CARD PLATINUM members*1*1:Actual usage of“d CARD PLATINUM”members as of Dec.31,2024.Usage data for Dec.2023 represent the actual usage of“d CARD”and“d CARD GOLD”for the same members.Dec.2023Dec.2024+21%Monex,Inc.average monthly investment amount by card type*2d CARD/d CARD GOLD d CARD PLATINUM+32%*2

41、:Usage record of“d ACCOUNT”collaborators as of January 20,20259,75011,090FY23/3QFY24/3Q+14Finance/payment transactions(Billions of yen)16Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONStrengthened data analysis and insight derivation capabilities leveraging the consolidation of INTAGE HOLD

42、INGS Inc.,thereby expanding existing businesses and significantly growing revenues.Marketing SolutionsSegment extraction based on client needsMarketing solutions revenues86.9121.4FY23/3QFY24/3Q+40(Billions of yen)Marketing DX support to partner companiesCase:Consumer goods manufacturer Supported acq

43、uisition of new digital members,who are likely to become royal customers in future.Ad distribution to prospect royal membersCore fansLight fansMember conversion hurdleHighLowBrand relevanceHighLowPotential usersExpandExpandDistribution result analysisBecome memberVisit websiteTry contentRevisitTempo

44、rarydefectionVisualize user behavior,change of attitudeDormantCoreLightVisualize and store member statusbased on accurate dataExpand distribution to similar users in existing based POINT CLUB membership(100 mil)Data analysisInsight derivationAssist and solve marketing challenges of a wide range of p

45、artners,using DOCOMOs data and INTAGEs purchase behavior analysis capabilities,to further expand business.Distribute ad to drug store usersAppPayment17Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONEntertainment revenues continue to expand driven by steadfast growth of video services.Creat

46、e new engagement with customers centered on entertainment offerings.EntertainmentEntertainment revenues152.2157.9FY23/3QFY24/3Q+4(Billions of yen)Approx.230thousand membersCreating engagement with customers and contributing to increased use of financial servicesAcquire and activate new membersPromot

47、ing usage of financial servicesCareer-free rate:approx.90%Young people rate:approx.70%New“d ACCOUNT”members*1 members who have resumed usage after no usage for 12 months*2New users of financial services members who have resumed usage after no usage for two consecutive months*3*FY24.3Q cumulative res

48、ults*1 Customers who used Lemino as their first service within two days of opening a new“d ACCOUNT”*2 Customers who had not logged in or used their“d ACCOUNT”for 12 months or more resumed using Lemino*3“Lemino”users who used financial services for the first time or had not used financial services fo

49、r two consecutive months resumed using the serviceCreate new customer touchpoints/Expand DOCOMO economic sphere with“Lemino”Approx.90thousand members18Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONEquipment sales revenues recorded YOY increase.Mobile communications services revenues decli

50、ned despite successfully moderating the negative revenue impact from“irumo”by promoting subscriber migration to“eximo”.Operating revenuesOperating revenuesHighlights FY23/1-3Q cumulativeFY24/1-3Q cumulative(Billions of yen)2,558.82,513.9 Factors behind change）Increased equipment sales revenues:+8.4

51、billion）Decrease in mobile communications services revenues:-53.3 billion(Quarterly breakdown 1Q:-15.5 billion,2Q:-19.9 billion,3Q:-17.9 billion)-44.919Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONNet adds improvement accelerated as a result of customer base reinforcement measures.FY24/3

52、Q MNP performance was net positive.Churn rate has been maintained low.Customer base0.64%0.59%0.60%0.70%0.70%0.60%0.63%1Q2Q3Q4Q1Q2Q3QFY23FY24FY231Q2Q3Q4Q1Q2QFY243QYOY changes in individual user handset net addsChurn rateCompany ACompany BDOCOMO*Churn rate data for DOCOMO represents handset churn rate

53、(enterprise accounts included).20Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONPace of YOY ARPU decline moderated.Migration rate to“eximo”plan grew to 61%,and post-migration ARPU(average of all plans)recorded an increase compared to before migration.Mobile Communication ARPU*Enterprise ac

54、counts included.Numbers in parentheses indicate YOY changes.(Yen)3,9103,920FY24/2QFY24/3Q(-90)(-70)Improvement of average revenue*New plans:“eximo”“ahamo”“irumo”Old plans:Other than aboveAverage revenue before and after migration from old to new plan(FY24/3Q)Dec/2023Dec./2024Up approx.30-310 yen YOY

55、Average revenue per user by plan(“irumo”“eximo”)53%60%61%FY24/1QFY24/2QFY24/3QFY24/4Q(E)or higher60%UpIncl.)“Gigalight”Incl.)“Gigaho”Average ofall plansUpUp“eximo”migration rate*Mobile communication ARPU21Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONEnrich the variety of attractive offer

56、ings to segments that are likely to migrate to“eximo”and strengthen our capability to make proposals suitable for different customer attributes across all channels.Actions for ARPU growth%of“BakuageaSelection”applicants upgrading to“eximo”(including“eximo poikatsu”)*:Percentage of those who applied

57、for“Bakuagea Selection”in July-Sept.2024(excluding“eximo”“eximo poikatsu”and“Gigaho”)and agreed to upsell to“eximo”(including“eximo poikatsu”)within 3 months(Individuals,with voice subscription).%of subscribers joining“eximo poikatsu”among“d CARD PLATINUM”applicants*Without“Baku-age”subscriptionWith

58、“Baku-age”subscription4.4-fold60%*No.of users who applied for“d CARD PLATINUM”at docomo ShopsEnrich recommendable offeringsStep up proposal capabilities of each channelMake proposals catered to preferences and needs of customers utilizing all channels Strengthen appeal of“eximo”/proposals catered to

59、 customer attributesWeb,owned mediaContact centersdocomo ShopsAppeal the good value offered by“docomo poikatsu plan”x“docomo Denki”(To restart sales in Tohoku and Tokyo Electric Power areas in 2/28)“eximo poikatsu”family benefitsAppeal the good value offered by“docomo poikatsu plan”x“d CARD PLATINUM

60、”Enrich“Bakuagea Selection”servicesOnly from DOCOMOamong mobile carriers22Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION Utilization of three-tier price planPromote migration to“eximo”by acquiring new customers using“ahamo”and“irumo”and proposing cross-selling of servicesFor customers who

61、 wish to enjoy stress-free unlimited data usage with generous supportFor customers looking for a simple middle-capacity plan who are open to online subscription proceduresFor customers who wish to have access to only the necessary amount of data and support at a reasonable monthly fee.etcServicesUps

62、ellCross sellExisting customers in the old price planNew Customers23Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION Operating revenuesEnterprise revenues recorded YOY decrease due to negative impact of PSTN migration.Organic growth was positive.Factors behind change+)Organic growth:+23.7 b

63、illion-)PSTN migration:-25.2 billion-)One-off factors for FY23/1Q:-7.6 billionOperating revenuesHighlights(Billions of yen)FY23/1-3Q cumulativeFY24/1-3Q cumulative1,348.71,339.6-9.124Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION Solution rolloutDX solutions growing steadily.New rollout o

64、f platform business.Solutions showing favorable performance 20.815.9+3163.747.6Contact center solutions Contact center upgrade projects,e.g.,communication SaaS,etc.,have been expanding.Large-scale digital BPO projects also underway.SASE/managed and security Cloud security,secure web remote access,an

65、d managed Wi-Fi solutions all performing favorably.Multiple numbers of large-scale multi-location network upgrade projects also being proposed.Revenues(Billions of yen)FY23/3QFY24/3QFY23/3QFY24/3Q+34Revenues(Billions of yen)New approach to solving social issuesLand-based aquaculture Advanced filtrat

66、ion techniqueICT platformImprovement of food self-sufficiency rateCreation of regional industries25Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION Initiatives for communication service quality improvementStepped up countermeasures for events,while continuously expanding 5G base station rol

67、lout.Steadily improved quality experienced by customers.Increase of 5G base stationsFurther reinforced measures for key events held during year-end/new year holidays*3FY23FY24PositiveNegativeDissatisfaction;Down 90%Delivered average throughput of 100Mbps+in 75%of major urban centers*1*2(Improvement

68、of 15 points compared to Mar.24)Mar.25Mar.24Dec.24+30%(Compared to Mar.24)+15%(Compared to Jan.24)1.3-fold increase of sub6 BSs(Tokyo and 3 prefectures in Kanto)1.4-fold increase of 5G BSs using 4G spectrum(Tokyo and 3 prefectures in Kanto)Mar.25Mar 24Dec.24+40%(Compared to Mar.24)+15%（(Compared to

69、Jan.24)Case:Measured implemented for Comic Market 105Customer satisfaction*5 concerning network showing signs of improvement after hitting bottom in FY24/2QAverage throughput:Over 100Mbps*2Significantly reduced negative opinions on SNS*4Customer postings on X concerning network quality during event1

70、Q2Q1Q2Q3Q4Q1Q2Q3QFY22FY23FY243Q/4Q26Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONTargets for each indicator toward FY2027*No.of handset subscribers in total population,excluding the impact of 3G service terminationFY23FY24FY27Consumer business revenues4,476.1 billion4,489 billionUp 350 b

71、illion or moreCustomer base(Retail user market share*)34.7%34.7%35%or higherRetail user mobile ARPU4,0904,0704,200Incl.)Entertainment revenues221.5billion230 billion310 billionIncl.)Finance/payment revenues367.5 billion450 billion630 billionIncl.)Marketing solutions revenues134 billion180 billion270

72、 billion27Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONGlobal Solutions Business28Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONBoth net sales and operating profit increased year on year Progress is on track with the full-year forecastQ3 FYE3/2024(Apr-Dec)Q3 FYE3/2025(Apr-Dec)

73、YoY(Amount)YoY(Rate)FYE3/2025ForecastsProgress toward Forecasts(Rate)Net Sales3,176.23,407.8+231.6+7.3%4,430.076.9%Operating Profit(Operating profit margin)197.1(6.2%)236.0(6.9%)+38.9(+0.7P)+19.8%336.0(7.6%)70.2%Profit Attributable to Shareholders of NTT DATA83.796.5+12.7+15.2%137.070.4%New Orders R

74、eceived3,566.83,664.3+97.5+2.7%4,330.0-（Billions of Yen）Excl.DC Business*Figures in represent new orders received excluding data center business(DC business)Results for the Third Quarter of Fiscal Year Ending March 31,2025(Summary of YoY changes)29Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPOR

75、ATION3,566.8Scale expansion in SAP business in GTSSWinning of large-scale project in North America()shows the effect of exchange rate(re-post)+76.2Q3 FYE3/2025 Result(Apr-Dec)Q3 FYE3/2024 Result(Apr-Dec)OthersOverseasJapanImpact of foreign exchange rate(*)This includes new orders received for the DC

76、 Business of JPY 686.3 billion for FYE3/2024(Apr-Dec)and JPY 528.7 billion for FYE3/2025(Apr-Dec)(down JPY 157.7 billion YoY).The forecasted figures for FYE3/2025 exclude the DC Business.3,664.3(+147.8)+22.2（Billions of Yen)+97.5Winning of large-scale projects for major financial institution,financi

77、al Infrastructure/network services,and insurance-0.9New Orders ReceivedQ3 FYE3/2024Q3 FYE3/2025YoY ComparisonFYE3/20252024 Apr-Dec ProgressQ3 FYE3/2024Q3 FYE3/2025YoY ComparisonApr-DecApr-Decin ResultsForecastsToward ForecastsOct-DecOct-Decin ResultsTotal3,566.83,664.3+97.54,330.0-1,400.21,163.9-236

78、.4Japan1,155.81,232.0+76.21,650.074.7%348.1355.8+7.7Re-postPublic&Social Infrastructure476.2481.2+5.0657.073.2%111.591.4-20.0Financial371.4416.6+45.2530.078.6%132.8155.0+22.2Enterprise263.3282.2+18.9405.069.7%90.199.9+9.8Overseas(*)2,400.22,422.4+22.22,670.0-1,047.6804.7-242.8Re-postNorth America540

79、.7608.1+67.3844.072.0%269.9283.8+13.9EMEAL728.1761.4+33.31,124.067.7%278.3282.9+4.6APAC248.1261.3+13.2422.061.9%83.387.4+4.1Global Technology and Solution Services(GTSS)(*)883.3791.6-91.7280.0-416.1150.7-265.4Others10.89.8-0.910.098.5%4.53.3-1.2Excl.DC BusinessExcl.DC BusinessExcl.DC Business(Billio

80、ns of Yen)Each business in Japan performed well.Overseas,new orders received increased in the SAP businesses in GTSS,as well as in North America.North America+67.3(+37.1)EMEAL+33.3(+46.4)APAC+13.2(+15.9)GTSS-91.7(+48.3)Reactionary decrease in DC business in GTSSNew Orders ReceivedYoY Changes(Q3 Resu

81、lts of FYE3/2025)30Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONOthersQ3FYE3/2024 Result(Apr-Dec)Q3 FYE3/2025 Result(Apr-Dec)()shows the effect of exchange rate(re-post)（Billions of Yen)OverseasJapanExpansion in the DC business and SAP businessImpact of foreign exchange ratesEach busines

82、s in Japan performed well.Overseas,while the data center and SAP businesses in GTSS performed well,net sales of each regional unit were on a downward trend.Overall overseas sales increased due to the impact of foreign exchange rates.(+125.3)+95.93,407.83,176.2+231.6+136.1-0.3Net SalesQ3 FYE3/2024Q3

83、FYE3/2025YoY ComparisonFYE3/20252024 Apr-Dec ProgressQ3 FYE3/2024Q3 FYE3/2025YoY ComparisonApr-DecApr-Decin ResultsForecastsToward ForecastsOct-DecOct-Decin ResultsTotal3,176.23,407.8+231.64,430.076.9%1,097.61,167.7+70.0Japan1,246.61,382.7+136.11,840.075.1%423.8496.1+72.3Re-postPublic&Social Infrast

84、ructure467.4551.1+83.7758.072.7%162.5203.9+41.4Financial502.2536.1+33.9727.073.7%171.7189.6+18.0Enterprise394.1428.3+34.3578.074.1%130.6149.3+18.7Overseas1,958.22,054.1+95.92,650.077.5%685.3682.8-2.5Re-postNorth America513.9496.1-17.7667.074.4%175.8159.9-15.9EMEAL730.2745.6+15.4998.074.7%256.2251.1-

85、5.1APAC285.4274.1-11.3414.066.2%97.688.6-8.9Global Technology and Solution Services(GTSS)525.8633.4+107.6746.084.9%192.7214.6+21.9Others-28.7-29.0-0.3-60.0-11.4-11.3+0.2(Billions of Yen)-17.7(+30.3)+15.4(+45.5)-11.3(+16.7)+107.6(+38.6)North AmericaEMEALAPACGTSSExpansion in the scale of services for

86、the the central government and ministriesExpansion in the scale of services for financial institutionExpansion in the scale of services for manufacturing and service industriesSales decline in Regional Units excluding impact of foreign exchange rates(North America,EMEAL,APAC）Net Sales YoY Changes(Q3

87、 Results of FYE3/2025)31Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONAbsence of unprofitable costs recorded in the previous fiscal yearProfit increase in GTSS and North AmericaOperating profit increased both in Japan and overseas.The increase in Japan is partly due to the absence of unpr

88、ofitable costs,while the increase overseas is partly due to the absence of structural transformation costs,both recorded in the previous fiscal year.(Billions of Yen)（Billions of Yen)()shows the effect of exchange rate(re-post)OthersOverseasTotal of the three businesses in JapanQ3 FYE3/2025 Results(

89、Apr-Dec)Q3 FYE3/2024 Results(Apr-Dec)Absence of the structural transformation costs(OTC)recorded in the previous fiscal yearImpact of foreign exchange ratesIncrease in overseas business transformation costs(TMO)Sales growth,etc.(*)Sum of the operating profit of the Public&Social Infrastructure,Finan

90、cial,and Enterprise businesses.+9.4(+4.4)+38.9+26.3+3.2197.1236.0Operating Profit(operating profit margin)Q3 FYE3/2024Q3 FYE3/2025YoY ComparisonFYE3/20252024 Apr-Dec ProgressQ3 FYE3/2024Q3 FYE3/2025YoY ComparisonApr-DecApr-Decin ResultsForecastsToward ForecastsOct-DecOct-Decin ResultsTotal197.1236.0

91、+38.9336.070.2%75.287.0+11.8Total of the three businesses in Japan(*)145.0171.3+26.3237.072.3%51.264.0+12.7Re-postPublic&Social Infrastructure50.870.3+19.594.074.8%20.027.4+7.4(10.9)(12.8)(+1.9P)(12.4%)(12.3%)(13.4)(+1.1P)Financial52.353.6+1.381.066.2%17.420.1+2.7(10.4%)(10.0%)(-0.4P)(11.1%)(10.1%)(

92、10.6%)(+0.5P)Enterprise41.847.4+5.562.076.4%13.816.5+2.6(10.6%)(11.1%)(+0.4P)(10.7%)(10.6%)(11.0%)(+0.4P)Overseas62.171.5+9.4129.055.4%27.923.9-3.9(3.2%)(3.5%)(+0.3P)(4.9%)(4.1%)(3.5%)(-0.6P)Others-10.0-6.8+3.2-30.0-3.9-0.9+3.0Profit decline in EMEAL and APAC excluding impact of foreign exchange rat

93、esOperating ProfitYoY Changes(Q3 Results of FYE3/2025)32Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONBreakdown of Overseas SegmentFYE3/2024Apr-DecFYE3/2025Apr-DecYoY(Amount)YoY（Rate）FYE3/2024Apr-MarFYE3/2025ForecastsProgress Toward ForecastFY3/2024Oct-DecFYE3/2025Oct-DecYoY(Amount)Excl.F

94、orex Effects(*4)Forex Effects(*4)Net Sales1,958.22,054.1+95.9-29.4+125.3+4.9%2,654.52,650.077.5%685.3682.8-2.5Re-postNorth America513.9496.1-17.7-48.0+30.3-3.4%688.3667.074.4%175.8159.9-15.9EMEAL730.2745.6+15.4-30.0+45.5+2.1%988.7998.074.7%256.2251.1-5.1APAC285.4274.1-11.3-28.0+16.7-4.0%376.2414.066

95、.2%97.688.6-8.9GTSS525.8633.4+107.6+69.0+38.6+20.5%726.0746.084.9%192.7214.6+21.9EBITA(*1)(*2)（EBITA Margin）98.6110.7+12.2+5.4+6.8+12.4%166.5178.0(6.7%)62.2%40.637.3-3.3(6.3%)(5.0%)(5.4%)(+0.4p)(5.9%)(5.5%)(-0.5p)Re-postNorth America24.2(4.7%)28.5(5.8%)+4.3(+1.0p)+2.6+1.7+17.8%37.1(5.4%)40.0(6.0%)71

96、.4%10.3(5.8%)7.4(4.6%)-2.9(-1.2p)EMEAL29.5(4.0%)28.6(3.8%)-0.8(-0.2p)-2.6+1.7-2.8%41.6(4.2%)71.0(7.1%)40.3%12.7(4.9%)8.5(3.4%)-4.2(-1.6p)APAC27.2(9.5%)20.8(7.6%)-6.4(-2.0p)-7.7+1.3-23.6%35.6(9.5%)40.0(9.7%)52.0%9.3(9.6%)6.0(6.8%)-3.3(-2.8p)GTSS46.8(8.9%)63.5(10.0%)+16.7(+1.1p)+12.9+3.9+35.8%85.5(11.

97、8%)84.0(11.3%)75.6%18.2(9.4%)25.6(11.9%)+7.4(+2.5p)New Orders Received(*3)2,400.22,422.4+22.2-125.6+147.8+0.9%3,124.32,670.0-1,047.6804.7-242.8Re-postNorth America540.7608.1+67.3+30.3+37.1+12.5%710.2844.072.0%269.9283.8+13.9EMEAL728.1761.4+33.3-13.2+46.4+4.6%1,006.31,124.067.7%278.3282.9+4.6APAC248.

98、1261.3+13.2-2.7+15.9+5.3%333.9422.061.9%83.387.4+4.1GTSS（*3）883.3791.6-91.7-139.9+48.3-10.4%1,073.8280.0-416.1150.7-265.4(*1)EBITA operating profit+amortization of intangible assets subject to purchase price allocation(PPA)arising from acquisition and others.(*2)The planned annual business transform

99、ation cost of 30.0 billion is included only in the FYE3/2025 forecast for the entire Overseas Segment,which is 178.0 billion.Actual costs are recorded for each Unit,and the Apr-Dec FYE3/2025 EBITA figures include the following costs:15.2 billion for the entire Overseas Segment,1.0 billion for North

100、America,5.5 billion for EMEAL,0.8 billion for APAC,and 0.6 billion for Global Technology and Solutions Services.(*3)This includes new orders received for the DC Business of JPY 686.3 billion for Apr-Dec FYE3/2024 and JPY 528.7 billion for Apr-Dec FYE3/2025(-JPY157.7 billion YoY).The forecasted figur

101、e for FYE3/2025 excludes the DC Business.(*4)For all Units,forex effects show the impact of the exchange rate differences between the current and previous fiscal years when converting USD-denominated results to JPY.USD exchange rate(average rate):For Apr-Dec FYE3/2024,143.33 yen;for Apr-Dec FYE3/202

102、5,152.64 yen.Excl.DC BusinessExcl.DC Business(Billions of Yen)33Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONOperating Profit YoY Changes(by factor)197.1236.0+19.5-10.9309.6336.0+30.3Absence of the structural transformation costs(OTC)+19.5Increase in Strategic Investments-2.7Increase in

103、overseas business transformation costs(TMO)-8.2+26.4-37.0Full year forecasts(Apr-Mar)Q3 FYE3/2025 cumulative(Apr-Dec)Although a decrease in profit due to transitory factors is expected in Q4,we aim to achieve our full-year operating profit forecast through factors such as increased profit in line wi

104、th increased revenueAbsence of the structural transformation costs(OTC)(Billions of yen)Absence of profit from the sale of a data center,etc.FYE3/2024Increase in profit resulting from sales growth,etc.FYE3/2025()Major transitory factors()Major transitory factorFYE3/2024Increase in profit resulting f

105、rom sales growth,etc.FYE3/2025()Major transitory factors()Major transitory factorIncrease in overseas business transformation costs(TMO)Increase in strategic investments34Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONStatus of Investments and Orders,etc.in the Data Center BusinessChanges

106、in Data Center InvestmentsService StatusInvestment in the Q3 FYE3/2025 was 1,624M$(248 billion yen).Orders received were 3,463M$(528.7 billion yen),down 1,325M$(157.7 billion)YoY.The decrease in orders is due to a reactionary fall in large orders recorded in the previous term,and demand remains stro

107、ng.8 data centers with a total capacity of approximately 380MW are scheduled to be launched during FY2024.By the Q3 FYE3/2025,6 data centers with a total capacity of approximately 300MW were launched.Changes in New Orders Received/Order Backlog約1,120MW約1,530MWNorth AmericaEMEAIndiaAPAC（Unit）MWFY23 3

108、月末（実績）FY24 3月末（見込）FY24 9月末（実績）（24.4月-24.9月）+約180MW（24.4月-25.3月）+約410MWM$(Billions of yen)670640340430430430340290290606060FY24Apr-DecFY23Year-endFY24End of DecFY23Apr-DecEnd of Mar 2024(Result)End of Mar 2025(Projection)End of Dec 2024(Result)Approx.1,120MWApprox.1,420MWApprox.1,500MW(Apr 2024-Dec 2

109、024)+Approx.300MW(Apr 2024-Mar 2025)+Approx.380MW12,253(1,855.1)4,788（686.3）14,467（2,288.2）3,463（528.7）Full-year result5,469（791.0）M$(Billions of yen)Acquired a new data center site in Tochigi Cityhttps:/ available in Japanese)FY22実績FY23実績FY24計畫FY27計畫FY22 ResultFY23 ResultFY24 PlanFY27 Plan2,700（390

110、.5）2,025（274.3）FY23FY271.5 trillion or more2,908（401.0）Full-year result/planApr-Dec resultChanges in Data Center Investments1,156（157.8）1,761（252.3）1,624（248.0）35Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONFinancial performance of the data center businessRevenue in the Q3 FYE3/2025 was

111、1,790M$(up 437M$YoY),and EBITDA was 637M$(up 127M$YoY)Aim to achieve EBITDA of over 1,400M$(over 190 billion)in FY2027 35%39%39%17%19%FY22実績FY23実績FY24計畫FY27計畫FY22 Result*1 These are the figures used in management accounting to calculate the income and expenses of the data center business division of

112、 Global Technology Services Unit.They include intercompany transactions between NTT,the parent company,and our group,and are calculated in a certain way,such as allocation of common expenses with other businesses of Global Technology Services Unit.*2 EBITDA and operating profit exclude depreciation

113、of property,plant and equipment and software,amortization of intangible assets related to acquisitions,and certain common head office costs.*3 The one-time factor(62M$)in FY2022 was the recording of a lump-sum revenue associated with a long-term lease contract for a data center*4 The one-time factor

114、(108M$)in FY2023 was the sale of a data center1,580(214.0)620(84.1)1,869（270.3）2,189（302.1）848（117.0）EBITDA:Over 1,400M(Over 190 billion)326(44.2)470(67.9)RevenueEBITDAOperating Profit MarginOperating ProfitEBITDA Margin840（121.6）108One-time factorRevenueEBITDA Operating Profit FY2024 Apr-Dec1,790M(

115、273.2 billion)637M(97.3 billion)36%302M（46.1billion)17%YoY+437M(+79.3 billion)+127M(+24.2 billion)-2pt+51M(+10.1billion)-2pt62Excl.one-time factor(*3)558Excl.one-time factor(*4)733(Excl.one-time factors)(Excl.one-time factors)M(Billions ofYen)Full-Year Financial Results/Plan(*1)(*2)FY24 PlanFY23 Res

116、ultFY27 Plan36Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONNTTNTT（第三者JV含）2023年9月時點情報上記情報今後変更。Data Center Business as a Growth Engine NTT has committed to invest at least JPY1.5 trillion into data centers until the end of FY2027 as one of the pillars of our new medium-term strategy,aiming

117、 to double EBITDA during this period by leveraging our proven operational and technological capabilities37Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION(1)Recalculated from Structure Research 2022 Report,excluding Chinese operators.(2)Does not include capital investments made using third-

118、party capital.(3)The targets for reduction are Scope 1(NTTs own direct greenhouse gas emissions)and Scope 2(indirect emissions associated with the purchase of electricity,heat and steam that are provided by other companies)under the GHG protocol for data centers.(4)IT power capacity of purpose-built

119、 datacenters owned by NTT Communications Group and NTT Ltd.Group(including JVs with third parties).AmericasEMEAAPACIndiaJapan,Indonesia,Malaysia,Singapore,etc.Germany,England,the Netherlands,Switzerland,etc.Expansion and Upgrade of Data Centers NTT will further expand the worlds third-largest(1)data

120、 center infrastructure,and implement upgrades through the introduction of IOWN technology(will make investments of at least 1.5tn/5 years(2)NTT aims to achieve carbon neutrality by FY2030(3)Provided as of March 2024Medium-Term Management Strategy Announcement（as of March 2023)300MW344MW981MWProvided

121、PlannedConstruction400MW430MW650MW150MW292MW502MW250MW281MW366MWExpanded capacity from 1,100MW as of March 2023 to 1,347MW as of March 2024Further expansion is planned for capacity to exceed 2,400MW in the futureNew value creation&Sustainability 2027powered by IOWN（2023年5月公表）新中期経営戦略38Copyright 2025

122、NIPPON TELEGRAPH AND TELEPHONE CORPORATIONNTTs Position In The Global MarketGlobal Data Center Colocation Revenue Share1NTT GDC is widely recognized as the third largest data center operator with a global footprint1 Not including Chinese business operators.Prepared by NTT based on Structure Research

123、 May 2023 ReportOperators1Equinix2Digital Realty3NTT GDC4Digital Bridge5CyrusOne6KDDI7American Tower8Cyxtera9Flexential10QTSOthers12%9%6%3%3%TotalTotal$51.8BGlobal IDC MarketScape Vendor Assessment 2 NTT is named as a“Leader”due to it broad service offering and global reach2.IDC MarketScape:Worldwid

124、e Datacenter Colocation and Interconnection Services 2021 Vendor Assessment 39Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONRegional Communications Business40Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONInitiatives to Restore Business Results437.7420.5(Billions of yen)Operatin

125、g Profit290.0StreamliningNon-CoreAssetsShifting to profit growth withFY2024 as the bottom31202220232024202520262027Continuation of management improvement initiatives,including reductions in equipment costs and personnel expenses 31Initiatives to expand the Enterprise Business and other businessesFY2

126、027+25.0 billionInitiatives to restore FTTHFY2027+40.0 billionRe-evaluation of personnel and business portfolioFY2027+45.0 billion+Expansion of new businesses,further re-evaluation of fees,etc.+41Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONDirection of Each Business PortfolioNote:Circle

127、 sizes represent FY2023 operating revenues.Profit RateMarket GrowthTransferNetworksForConsumerNew Business(Subsidiary)PSTNserviceUnprofitable service Solving local social issues Developing communication infrastructure Digital comicsGrowth/new business:300.0 billionEnterprise Business:750.0 billionFi

128、xed-line telephoneISDN,etc.ExitSI,etc.ForEnterpriseInvestments/capital increasesStrengthening in response to market expansionConsumer Business(Fixed-Line Communications):490.0 billionExtensive improvements in efficiencyIncreasing market share,improving operational efficiencyFiber Optic Services(FTTH

129、,Hikari Denwa,etc.)1,400.0 billion Telephone directories Directory assistance,etc.42Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONEvolving and Expanding the Enterprise Network BusinessMaking the most of existing optical networks,we will leverage our strengths in regional connections and e

130、ngineering to expand our network businesses that support the digitalization of society (targeting a 25.0 billion increase in profit through FY2027)Increasing Profits from the Network Integration BusinessSupporting the Future ofDigital Social InfrastructureLocalGovernmentsGovernmentsEducationPublic D

131、emandMedicalCloud IntegrationPlatform5Th LGWANGovernmentSolutionServicesNext-Generation GIGASchool EducationInformation NetworkNationwideMedical InformationPlatformIncreased Demandfor Networks betweenIndustry Cloud Data CentersNetworksOperation,MaintenanceLocation-basedVendorCollaborationMulti-site

132、Support(Billions of yen)(Planned)Profit+25.055.030.020232024202743Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONCurrent Status of Fiber Optic Services and Future Targets By strengthening sales and improving the pricing strategies for FLETs Hikari Cross and the apartment building market bu

133、siness,we plan to expand our market share and improve our profitability,with a goal of generating profit of 40.0 billion in FY2027 Our net increase in users in FY2024 as of the end of August was 117%year-over-year,showing a shift towards improvement,and that initiatives are beginning to succeedPerio

134、d-EndContractsFY 2023FY 2024FY 2027FY 2022NewContracts23.58Cancellations2.360.260.162.240.042.27Hikari CrossHikari Next1.96FLETs Hikari CrossArea Expansion2.26Increase inApartments withHikari Installed23.6523.7524.00Net increase as of August 31:57,000(117%year-over-year)2.16(million)Improving compre

135、hensive bundled services in collaboration with developers and management companiesFurther expansion of the FLETs Hikari Cross service area,and improvements in sales and migrations(million)(million)44Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONInitiatives to Increase Hikari Cross SalesWe

136、 will expand the Hikari base with improved support for high-speed demand by promoting transitions to Hikari Cross,which is expected to increase ARPU,with free installations and other promotional measures,investments in other promotions based on the market environment,and service area expansion initi

137、ativesSchedule for Hikari Cross Service Area ExpansionStrengthened Support for High-Speed Demand/Sales Promotion MeasuresSupport for High-Speed DemandHikari Cross support for apartment buildings(from 2022)Hikari Denwa support(from 2023)Launch of comprehensive Hikari Cross support across entire house

138、holdsService Area ExpansionExpansion of Hikari Cross service areaStrengthening the apartment building market by collaborating with real estate industry businessesSales Promotional MeasuresDiscount campaigns with collaboration companies(such as one-coin CPs,etc.)No transfer fees for transfers from se

139、rvices 1 Giga servicesPrioritizing allocations of sales promotion costs to competitive areas202520272023202120Over605Gradual expansion to north Kanto;Nagano;Tohoku;Yamanashi;Hiroshima;Fukuoka;Ehime;Okayama;Kumamoto;etc.Hokkaido;Miyagi;Niigata;Mie;parts of Nara;etc.Four prefectures of the Metro area;

140、Kyoto;parts of Shizuoka;etc.Tokyos 23 wards;Osaka;parts of NagoyaGradual expansion based on demand Gradual expansion based on demand Household Coverage Rate（Responding to Demand for Faster Fiber Optic Speeds）45Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONInitiatives in the Apartment Mark

141、et We will strengthen collaborations with developers and management companies to launch comprehensive apartment building-wide services that meet market needs and have high operating efficiency We will shift to a business model in which we can maintain medium-and long-term revenues by expanding compr

142、ehensive apartment servicesSignificance of Providing Apartment Building-Wide ServicesAdoption Rate ofApartment Building-Wide ServicesStrengthening Apartment Building-Wide Sales through Comprehensive Collaborations with Real Estate Companies and OthersApartmentBuilding-WideContractsUnit-by-UnitContra

143、ctsCustomerNeeds*Most new property owners prefer apartment building-wide contractsApartmentBuilding-WideContractsUnit-by-UnitContractsOperatingEfficiencyApartmentBuilding-WideContractsUnit-by-UnitContractsRetention RateTenantsOwners,etc.Real Estate Companies,etc.NTT East,WestApartmentBuilding-Wide H

144、ikari ProposalsCollaborations for comprehensive adoption(Accepting applications)2022202320242027Expanding sales into the hotel industry and retirement homes,among others1.3times1.7times46Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONBegin ConstructionSalesReforming Telecommunications Oper

145、ations through DX and AI We will fully leverage DX and AI to redesign personnel-heavy front and back-office support services Enhancing efficiency and transitioning to“zero-touch(automated)”We are aiming to improve profit by 18.0 billion through FY2027 by reducing headcount by about halfPresentFrom a

146、nd After FY2027Result7,800 people1,700 peopleProfit:2.0 billionSO(Application Processing)1,850 peopleProcessOrganizationAddress RegistrationEquipment Design800 people0 peopleReception4,000 people2,700 people3,600 peopleProfit:16.0 billion If automated OpS request not possible dedicated system is dep

147、loyedOpSFront-OfficeBack-OfficeManual organization of construction processes and equipment designs Manually requested goodsOrder calls（20%）Inquiries and calls,excluding orders（80%）Partially optimized system/Manual application processingAutomated construction preparation via DX automationAutomated We

148、b/AI responsesStrengthened internal sales resourcesAutomated Flow(Flow-through)Application IFBasic OpSInformation Flow PF(iPaaSBPMS)Rapid and flexible development and automated SO distribution through DX automationProcess OrganizationAddressregistrationEquipmentdesign47Copyright 2025 NIPPON TELEGRAP

149、H AND TELEPHONE CORPORATIONReforming Telecommunications Operations through DX and AI We will upgrade on-site operations and other manual tasks through the use of AI diagnostic imaging and other technologies We will fully leverage DX and AI to transition routine repetitive tasks in the operation of N

150、W equipment to“zero-touch(automated),”with the aim of improving profit by 11.0 billion through FY20271,700 people7,600 people10,400 peopleFacilities-Related OperationsMaintenance and Fault RepairsInfrastructure Development and Equipment MaintenanceProfit:11.0 Billion 1,150 people7,600 peopleManual f

151、ault diagnosis and isolation,etc.Manual on-site maintenance and inspectionManual confirmation and response to NW equipment alarmDecentralized operations centers for each areaTransition to automated basic fault diagnosis and isolation using Web and AISmart inspections using AI diagnostic imaging Zero

152、-touch-operation via transition to DX automationArea-free by DX and unified businessAI-IVR support utilizing generative AIWeb processingManual responseNW Equipment AlarmNW AlarmImpact AssessmentRecovery scenarios relayed automaticallyArea free workCenters in each area6,500 peoplePresentFrom and Afte

153、r FY2027ResultImage collection via MMSAI remotely performs image diagnostics48Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONExit from Unprofitable ServicesWe will aim to improve profit by 13.5 billion in FY2027 through the termination of consumer line-related businesses and initiatives to

154、 promote the rapid shift to digital services202420252026+13.5+1.0Telephone DirectoryDirectory AssistanceElectronic Invoicing(Billions of yen)+8.0+2.02027Profit Improvement EffectsSchedule2024202520262027Telephone DirectoryDirectory AssistanceElectronic InvoicingOthersJuly 19:Press releases(terminati

155、on of publication)July 19:Press releases（will no longer be provided）March:Final publication of TownPage3/31:Cease offeringFull-scale roll-out of electronic invoicingOn-demand delivery onlyCenter Closing(East Japan:two Centers)(West Japan:four Centers)7/29:Public AnnouncementReview of conditions for

156、issuing a combined invoice for the following monthWill re-examine telegrams and other legacy offerings in light of social trends and the business environment+0.1+1.0+1.5+0.5+0.1+3.0+5.0+6.5+1.0+6.0（FY）49Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONMigration to Alternative PSTN Services T

157、he 350.0 billion PSTN service revenue base will be maintained to the fullest extent possible by encouraging migration and improving pricing strategies at various contact opportunities with customers Migration to alternative services(optical and wireless fixed-line telephones)by around 2035,when the

158、metal facilities reach their limitsMigration recommendations triggered by relocations,fault repairs,etc.20232027PSTN ServicesPSTN Services350.0 billion250.0 billion+Fiber Optic Services,etc.Service Fee Review(8)%natural annual decrease trend50Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION

159、Further Expansion of Growth Businesses In addition to expanding Comic CMoA,which is one of the largest domestic e-book stores in Japan(with more than 40 million monthly users and over 1.40 million books),we are strengthening comprehensive initiatives from original comic production to licensing devel

160、opment,and also expanding the business into global markets We are targeting an increase in company sales from approximately 80.0 billion(FY2023)to 100.0 billion(FY2027)Comic Productionapprox.95.0billionapprox.5.0 billionFY2027Domestic Business ExpansionGlobal ExpansionProduct SalesLicensing Developm

161、entComprehensive ImplementationExpanding Original Worksapprox.3,000worksDramaAnime/MoviesMerchandisePublishing（Solmare Expansion）(1.5 times compared to FY2023)51Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONInitiatives of a sustainable society,etc.52Copyright 2025 NIPPON TELEGRAPH AND TEL

162、EPHONE CORPORATIONSustainability CharterEstablishment of Sustainability Charter in November 2021Three themes and nine challenges are set.Key indicators(carbon neutrality,percentage of new female managers,employee engagement rate,customer engagement)are reflected in executive compensation.Ensuring th

163、e positive coexistence of nature and humanityImproving prosperity for all people and culturesMaximizing wellbeing for allResponding to environmental and energy challengesAddressing social issuesAddressing human rights,and diversity and inclusionNTTs vision of sustainable societySustainability Charte

164、rMoving towards a decarbonized societyA commitment to a resource-recycling futureA future where people and nature are in harmonyPrepare for a new future with the power of digital technologyEstablish shared ethical standardsMoving towards a safe,secure,and resilient societyDiversity InclusionRespect

165、for human rightsCreating new work style models53Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONTargets of“NTT Green Innovation toward 2040”Source:Created from“NTT Green Innovation toward 2040”Presentation(September 28,2021).FY2030Reduction of NTT Groups greenhouse gas emissions by 80%(comp

166、ared to FY2013)Carbon neutrality for the mobile(NTT DOCOMO)and data center businessesFY2040Carbon neutrality as NTT GroupEnergies54Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION(FY)2013202020302040OutcomeRenewableEnergiesIOWNElectricityDerived fromFossil Fuels8.3 billionkWhRenewable Energ

167、yImplementation Target*Approx.8.0 billion kWhEnergyConsumptionBY replacing legacy facilities with IOWN,energy consumption will be reduced by approximately half by FY2040Renewable energy will be adopted for the remaining half to achieve carbon neutralityMobile and Data CenterBusinesses to be Carbon N

168、eutralNTT Group to beCarbon NeutralOutlook of NTT Groups Energy Consumption2022Introduction ofInternal Carbon PricingSystemEnergySavingsApprox.doubled(compared to FY2013)(Reduction inEnergyConsumption)Source:Created from NTT IR DAY 2021 Presentation.*Includes certified renewable energy equivalents d

169、erived from non-fossil fuels55Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONTowards Achieving Net Zero in 20402018202320302040Results:2.32 million tons0.95 million tonsResults:21.31 million tons（Preliminary Figures）Planned:2.47 million tonsCarbon Neutral2040NTT Green Innovation toward 204

170、0Key initiatives in Scope 3 Emission ReductionFurther Strengthening of Collaboration with SuppliersIllustration of NTT Group Greenhouse Gas Emission Reductions(Domestic and Overseas)2040Net ZeroIntermediate target40reduction Encouraging and supporting emissions data visualization and target settingR

171、enewable energy onboarding support for data center customers and other customersProviding cloud services and promoting energy savings in productsWith 2023 preliminary results for scope 1 and 2 emissions being 2.42 million tons,our emissions are reducing faster than planned and we are making steady p

172、rogress towards carbon neutral in 2040By encouraging and supporting suppliers with their emissions reduction efforts and emissions data visualization,and by providing renewable energy onboarding support for customers,among other initiatives,we are aiming for 17 million tons of Scope 1,2 and 3 emissi

173、ons by 203017 million tonsScope 1,2 and 3:28.35 million tonsScope 1 and 2Customers Contributions to Decarbonization*Scope 1:Direct greenhouse gas emissions.Scope 2:indirect emissions associated with the purchase of electricity,heat and steam that are provided by other companies.Scope 3:Emissions in

174、the supply chain relating to business activities.56Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONTsugaru Wind Farm(Tsugaru,Aomori Prefecture)350m kWh/year8.0billion kWh/year2.3billion kWh/yearSolar Power,etc.Wind power(GPI)1.0 billion5.0billion1.3 billion3.0billionFY2024FY2030Renewable En

175、ergy Acquisition Forecast(1)Green Power Fukaura Wind Farm（Fukaura,Aomori Prefecture)210m kWh/yearAmong the Largest Wind Farms in Japan(122MW)Began Operation in February 2024(1)Expectations at the end of each fiscal year (2)Internal calculations based on the FY2022 statistical survey of CO2 emissions

176、 from the household sector(confirmed figures).More than the annual electricity consumption of all households in Yokohama（approx.1.8m households)(2)3x increase5x increase2x increaseMiyazaki Kamenoko Solar Power Plant(Higashimorokata District,Miyazaki Prefecture)40m kWh/yearGreen Power Futtsu Solar Po

177、wer Plant(Futtsu,Chiba Prefecture)50m kWh/yearAs a result of acquiring Green Power Investment(GPI),a leading domestic renewable energy company,in 2023,NTT added wind power generation to its solar power generation capabilities,and anticipates achieving its renewal energy acquisition forecast of 8 bil

178、lion kWh per year in FY2030NTT will strengthen its support for customers Green Transformation(GX)by leveraging the Groups renewable energy-related assets,technologies and solutionsCurrent Status and Future of Renewable Energy BusinessEquivalent to the annual electricity consumption of approx.90,000

179、households(2)57Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION Launch the new solutions brand to strengthen initiatives in the GX fieldNew Green Transformation Initiatives(GX)Specific Initiatives:NTT Comware launched the“Smart Data Fusion”green energy business integration platform to help

180、renewable energy producers with their GXNTT Anode Energy will develop an energy distribution platform to support the supply of renewable energy and provide optimal operation and control solutions that balance the supply and demand for renewable energy producers,electricity retailers and othersAiming

181、 to achieve up to Scope 3 carbon neutrality by adopting NTT DATAs“C-Turtle”greenhouse gas emissions visualization platform across all NTT Group companies,and increasing the number of suppliers working together to reduce carbon emissions to around 1,000 companies by FY2027 NTT Group CompaniesSupplier

182、 CompaniesCarbon neutrality throughout society as a wholeEstimated Scope 3 emissions incorporating emission reduction efforts by suppliersIntegrated Data ManagementFinancial DataPower Generation DataRenewable energy producersGreen Energy Business Integration PlatformAnalysisVisualizationImproving po

183、wer generation businesses through integrated management,analysis and visualization of power generation and financial dataElectricity MarketElectricity retailersRenewable EnergyIntegratedOperationEVs,etc.Energy Distribution PlatformOptimizing electric power supply and demand by aggregating distribute

184、d energy resourcesEnergyStorage58Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONJune 2020Introduced an executive officers system*(separation of the functions of managerial decision-making/supervision and business execution)Increased the ratio of outside directors from 27%to 50%August 2021I

185、ncreased the percentage of officers performance-linked compensation from approx.30%to 50%.(Introduction of a performance-linked stock compensation system)Increased the number of outside independent Members of the Board in the Appointment and Compensation Committee from two to three,causing the outsi

186、de independent Members of the Board to become the majority.November 2021The Appointment and Compensation Committee was divided into the Nomination Committee and the Compensation Committee,with their respective functions transferred accordingly.The Sustainability Committee was moved from the Executiv

187、e Officers Meeting to directly under the Board of DirectorsJune 2022Number of Members of the Board will be increased from the current 8 members to 10 members(with 5 outside members of the board)One full-time outside corporate auditor will be added,increasing the total number of Audit&Supervisory Boa

188、rd Members from the current 5 to 6Ratio of female Members of the Board,Audit&Supervisory Board Members and Senior Vice Presidents to be increased to over 30%Internal Control Office will be reorganized into an Internal Audit Department under the direct control of the presidentJune 2023Due to the reti

189、rement of the outside corporate auditor,the number of auditors is reduced from the current 6 to 5.Corporate governance systemClassificationPerformance indicatorWeightEvaluation methodFinancial indicatorEBITDA25%YoY improvementEPS10%EBITDA25%Achievementlevel of planOperating profit10%Overseas operati

190、ng income margin10%ROIC in existing areas5%Sustainability indicatorGreenhouse gas emissions5%New female manager promotion rate2.5%Employee engagement rate2.5%Customer engagementNPI2.5%NPS2.5%*Introduced an executive officers system into key group companies in June 2021Reinforcement of Corporate Gove

191、rnance Performance Indicators for Bonuses FY202459Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONR&D60Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONPhotonics-electronics convergence devices In order to utilize all types of information beyond the limits of conventional infrastruc

192、tures,photonics technologies such as photonics-electronics convergencedevices will be utilized everywhere from networks to terminals to realize a network and information processing infrastructure characterized by low power consumption,large capacity,high quality,and low latency(transition from elect

193、ronics to photonics).The world realized by IOWN1.Total optimization of city and mobility 2.Creation of co-creative space that transcends all constraints 3.Fulfillment of body and soul by integration from the past to the future 4.Regeneration of the global environment and achievement of a sustainable

194、 society 5.Safe and secure communicationLimitations of transmission and processing capacityIncreasing energy consumptionTargetPerform-anceLarge capacity,high qualityLow latencyLow power consumption*1 Target power efficiency for portion where photonics technology is applied*2 Target communication cap

195、acity per optical fiber cable*3 Target latency in video traffic not requiring compression within the same prefecture125 times greater transmission capacity*2End-to-end latency reduced by a factor of 200*3100 times greater power efficiency*1Provides various information and communication services at p

196、ower consumption reduced by a factor of 100.Capable of downloading 10,000 two-hour movies instantaneously(in 0.3 sec).(Compared with one movie in 3 sec with 5G technology)Transmits real-time video without the latency experienced with digital TV or satellite broadcasting.IOWN initiativeCOSAOptical tr

197、ansmission:400 GbpsChip-to-chip optical transmissionConnections arounda chipTight coupling of opticaland electronic circuitsPhotonics-electronics convergence processingCore-to-core optical transmission in a chipOptical signal processing in a chipTransmission by optical technologyElectrical layerOpti

198、cal layer61Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONIOWN From Vision to Reality-and Beyond2025Power Consumption1/8PowerConsumption1/1002026Commercialization of Servers Equipped with Photonics-Electronics Convergence Devices Target Value for Power Efficiency in Photonics Technology Ap

199、plicationRealization with Photonics-Electronics Convergence DevicesToward Further Advancements in Power Efficiency2032IOWN 2.0IOWN 4.02028IOWN 3.0Optical Communication Between Chips62Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONEnergyEfficiencyCurrent8xIOWN2.0100 x*IOWN4.0Illustration of

200、 Optical Engine/Switchboard Under DevelopmentDeveloping a high-capacity,low-power consumption compact optical processing engine that will open up new possibilities in the world of computingConnecting xPU and memory optically instead of electrically to achieve ultra-low-power-computingIn process of c

201、onducting tests for commercial implementation with the launch of a switching device equipped with optical engines scheduled for FY2025*Energy efficiency rate across the entire photonics application area,including APN and serversIOWN2.0-Optical Based Computing63Copyright 2025 NIPPON TELEGRAPH AND TEL

202、EPHONE CORPORATIONPower efficiencyUp to nowIOWN1.0100-times*IOWN2.013-times1.0-timesAPNIOWN3.0IOWN4.0Future path for IOWNHigh capacityUp to nowIOWN1.0125-timesIOWN2.0More than 6-times1.2-times125-timesIOWN3.0IOWN4.0従來最終目標Power efficiencyUp to nowIOWN1.0100-times*IOWN2.08-times1.0-timesServerIOWN3.0I

203、OWN4.0*Power efficiency for the entire photonics-applied area,including the APN,servers,etcLow latencyIOWN1.01/200IOWN2.01/200IOWN3.0IOWN4.064Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONAchieved the Worlds First International IOWN APN ConnectionTaiwan(Taoyuan)OverseasDomesticInternation

204、alHemel Hempstead/Dagenham(U.K.)Ashburn(U.S.)Ashburn DC（VA3）Ashburn DC（VA1）10kmIOWN APNIOWN APNDistance:approx.3,000kmBandwidth:100GbpsLatency:17msecHemel Hempstead DCDagenham DC100kmIOWN APNConnections between local DCs to be built out in stagesLocal DCOsakaDojima DCTokyoOtemachi DCLocal DCIOWN APN

205、Tokyo(Musashino)Adding to existing IOWN APN connections between data centers within Japan and overseas,in August 2024,we achieved the worlds first international IOWN APN connection,connecting Japan and Taiwan across a distance of approximately 3,000kmThe connection achieves low-latency,no-jitter and

206、 stable communication with approximately 17 msec on a one-way network,and will enable us to provide international data backup and replication services in the futureConnected65Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION Will make customization and application development possible throug

207、h Azure AI StudioCustomers*Applications open in SeptemberInquiries/Adoption Consultation1,100600tsuzumi Partner ProgramLaunching via Microsoft Azure(Available November 2024)Status of tsuzumi ProposalsExpanding Further through Strengthened PartnershipsAs of July 2024Specialized tsuzumi customization

208、for particular industries/businesses Support for the development of services and solutions that leverage tsuzumiSolutions PartnersDevelopment and offering of tsuzumi-enabled productsIntegration PartnersSolutions proposals using tsuzumiModel PartnersProvides tsuzumiProvides dataProvides tsuzumiImplem

209、entation ProposalsSince commercialization in March 2024,customers from a variety of fields have indicated interest,with over 600 proposals for implementationGoing forward,NTT will collaborate with its partners to accelerate the expansion of tsuzumi both domestically and overseasNTTs LLM 66Copyright

210、2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONHigh Level of Cost PerformanceHardware/DCElectrical PowerSoftware(LLM,etc.)Operation Cost(Operators,etc.)Main Cost ComponentsNeeded for Generative AIGPU CostCompared to GPT-3 Scale LLMApproximately 1/25(Based on NTT estimates(1)GPU CostUse(1)Calculated

211、from the parameter ratio from the same training dataset.(2)Calculated from expected costs of utilized GPU models.生成AI利用Compared to GPT-3 Scale LLMApproximately1/20(Based on NTT estimates(2)AIs Customizability(Knowledge Upgrades,etc.)Achieves high level of functionality while reducing hardware costs

212、necessary for the implementation and operation of generative AI67Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONIn August 2024,NTT plan to establish“NTT AI-CIX*Corporation(NTT AI-CIX)”to promote cross-business/cross-industry-linked AI servicesNTT aims to achieve the optimization of the ent

213、ire supply chain through the use of cross-business/cross-industry-linked data,and to resolve labor shortages and other social issues*AI-Cross Industry transformationPlan to establish“NTT AI-CIX”to Promote Linked AIRetail x Manufacturing x LogisticsOptimizing product ordering with AI demand forecasti

214、ngAgriculture x LogisticsOptimizing wholesale demand and supplymatchingNTT AI-CIX plan to establish August 2024Cross-Business/Cross-Industry-Linked AI ServicesBusiness-Linked AIIndustry-Linked AIConsultingAI Model DevelopmentAI Platform ServicesOffers comprehensive services,from consulting to AI mod

215、el development and platform servicesResolving Social Issues with Linked AI Services68Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONShareholder ReturnsCopyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION69Record of Share BuybacksAmount of Share Buybacks(Billions of yen)120.0 86.2 100.

216、0 366.5 539.4 94.4 200.0 381.7 150.0 406.5 338.1 93.6 374.1 235.2 258.0 501.1 250.0 250.0 510.3 200.0 200.0 FY1999FY2002FY2003FY2004FY2005FY2007FY2008FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024*Completed share buybacks of 200.0 billion as authorized at the me

217、eting of the board of directors held on August 7,2024(February 25,2025)*70Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION12.3%13.0%17.1%23.0%19.5%27.5%32.3%31.2%38.2%37.2%33.4%38.0%31.4%30.7%32.9%40.9%41.1%42.3%34.9%34.5%33.8%40.0%5%25%45%65%85%0.01.02.03.04.05.0（Yen）FY2003-FY2017,financia

218、l statements were prepared in accordance with U.S.GAAP.This chart reflects the following stock splits:Stock split on January 4,2009(1 share split into 100 shares),Stock split on July 1,2015(1 share split into 2 shares),Stock split on January 1,2020(1 share split into 2 shares)and Stock split on July

219、 1,2023(1 share split into 25 shares)Changes in Dividend0.5Payout RatioDividend per share5.2Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION711.90millionShareholders of Less than One Investment UnitShareholders of Investment UnitsStock SplitAnnouncement2.47million2.7x0.92million*Comparison

220、of December 2020 to December 2024,based on interviews with securities firms.Age Composition*1%3%6%12%23%55%December 2020December 2024March2023March2002:20s or younger:30s:40s:50s:60s:70s or olderJune2023Sept.2023Dec.2023March2024June2024March1987The number of shareholders has grown by 2.7x compared

221、to prior to the stock split(end of March 2023)to 2.47 million(+1.55 million),setting a new record highSept.2024Shareholder CountStatus of Shareholder CountDec.202410%16%19%19%16%21%72Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONFinancial Data,etc.73Copyright 2025 NIPPON TELEGRAPH AND TEL

222、EPHONE CORPORATIONOperating revenue and operating income for each segment are FY2023 figures including inter-segment transactions.No.of employees and subsidiaries are as of the end of March 2024.Operating revenue：(Consolidated)13,374.6billionOperating income：(Consolidated)1,922.9billionNo.of employe

223、es：338,450No.of subsidiaries：967NTT Group FormationNippon Telegraph and telephone Corporation（Holding Company）RegionalCommunications BusinessGlobal SolutionsBusinessIntegrated ICTBusinessOthers(Real Estate,Energy and Others)Other group companies*57.7%stake in NTT DATA(as of March 31,2024)Operating r

224、evenue：6,140.0 billionOperating income：1,144.4 billionNo.of employees：51,050No.of subsidiaries：127Operating revenue：4,367.4 billionOperating income：309.6 billionNo.of employees：193,500No.of subsidiaries：598Operating revenue：1,632.9 billionOperating income：59.8 billionNo.of employees：26,700No.of subs

225、idiaries：184Operating revenue：3,183.2 billionOperating income：437.7 billionNo.of employees：67,200No.of subsidiaries：5874Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION3.28 3.18 3.22 3.24 2.97 3.11 3.25 3.29 3.42 3.33 Operating Income /Operating Profit（Trillion yen）*U.S.GAAP term/IFRS term.

226、*Excluding the effects of the arbitration award received from Tata Sons Limited,profit was expected to be 848 billion yen.*This chart reflects the following stock splits:Stock split on July 1,2015(1 share split into 2 shares),Stock split on January 1,2020(1 share split into 2 shares)and Stock split

227、on July 1,2023(1 share split into 25 shares)Assumes that the Company will repurchase 1.4 billion shares(maximum)from the market in fiscal 2024(repurchase period based on the resolution:August 8,2024 to March 31,2025)Trend in Consolidated Financial Results*Operating Revenues（Trillion yen）Net Income /

228、Profit（Trillion yen）EPS（yen）*IFRSIFRSIFRSIFRSIFRSIFRSFY2015 FY2016FY2017*FY2018 FY 2019FY 2020FY2021FY2022 FY2023 FY2024EEBITDA（Trillion yen）11.511.411.811.911.911.912.213.113.413.51.4 1.5 1.6 1.7 1.6 1.7 1.8 1.8 1.9 1.8 0.740.800.910.850.860.921.181.211.281.107.07.89.18.89.29.913.213.915.113.075Cop

229、yright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION（Billion yen）Business segment operating revenues include inter-segment transactionsEffective from the fourth quarter of FY2021,the Group has transitioned to a four-segment structure consisting of the Integrated ICT Business,Regional Communication

230、s Business,Global Solutions Business,and Others(Real Estate,Energy and Others),from its previous five-segment structure consisting of the Mobile Communications Business,Regional Communications Business,Long Distance and International Communications Business,Data Communications Business,and Other Bus

231、iness.In connection with this revision,results from the third quarter of FY2021 and earlier and results from FY2020 have been restated and are presented on the basis of the new segments.11,541.011,391.011,799.611,879.811,899.411,944.012,156.4Changes in Consolidated Operating Revenues13,136.213,374.6

232、11,944.013,460.01,294.5 1,282.3 1,236.6 1,240.3 1,601.7 1,467.1 1,335.4 1,396.0 1,807.0 1,632.9 1,680.0 1,616.8 1,718.7 2,043.1 2,163.6 2,266.8 2,318.7 2,250.9 2,129.3 2,218.9 2,278.7 2,205.8 2,065.6 3,367.1 3,615.2 4,091.7 4,367.4 4,430.0 3,407.9 3,308.2 3,232.9 3,152.3 3,079.9 3,207.4 3,207.4 3,20

233、7.6 3,177.6 3,183.2 3,070.0 4,527.1 4,584.6 4,769.4 4,840.8 4,651.3 4,725.2 5,880.9 5,870.2 6,059.0 6,140.0 6,244.0 05,00010,00015,000FY2015FY2016FY2017FY2018IFRSFY2019IFRSFY2020IFRSFY2020IFRSFY2021IFRSFY2022IFRSFY2023IFRSFY2024EIFRS：Others(Real Estate,Energy and Others)：Global Solutions Business：Re

234、gional CommunicationsBusiness：Integrated ICT Business 2020-：Data Communications Business：Long Distance andInternational Communications Business：Other Business：RegionalCommunications Business：MobileCommunications Business-202076Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION74.0 77.3 78.6 8

235、5.6 90.9 64.8 56.4 72.5 67.2 59.8 23.0 86.4 112.7 107.9 127.8 147.7 130.9 139.2 96.7 40.8 93.6 100.1 103.6 146.2 147.3 210.5 265.6 309.6 336.0 265.0 359.5 354.3 360.7 388.3 420.2 420.2 440.0 420.5 437.7 290.0 788.4 951.6 982.1 1,013.6 854.7 913.2 1,060.0 1,072.5 1,093.9 1,144.4 1,170.0 05001,0001,50

236、02,000FY2015FY2016FY2017FY2018IFRSFY2019IFRSFY2020IFRSFY2020IFRSFY2021IFRSFY2022IFRSFY2023IFRSFY2024EIFRS（Billion yen）1,671.41,539.81,348.11,642.81,693.81,562.21,768.6Changes in Consolidated Operating Income1,829.01,671.4Business segment operating income include inter-segment transactionsEffective f

237、rom the fourth quarter of FY2021,the Group has transitioned to a four-segment structure consisting of the Integrated ICT Business,Regional Communications Business,Global Solutions Business,and Others(Real Estate,Energy and Others),from its previous five-segment structure consisting of the Mobile Com

238、munications Business,Regional Communications Business,Long Distance and International Communications Business,Data Communications Business,and Other Business.In connection with this revision,results from the third quarter of FY2021 and earlier and results from FY2020 have been restated and are prese

239、nted on the basis of the new segments.：Others(Real Estate,Energy and Others)：Global Solutions Business：Regional CommunicationsBusiness：Integrated ICT Business 2020-：Data Communications Business：Long Distance andInternational Communications Business：Other Business：RegionalCommunications Business：Mobi

240、leCommunications Business-20201,922.91,810.077Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION108.2 116.6 122.1 138.7 238.2 203.3 138.7 140.7 157.7 219.3 257.0 134.0 158.1 194.1 179.2 193.8 169.5 227.6 244.9 232.5 244.3 279.3 259.0 327.9 347.2 500.4 657.4 662.0 622.1 583.4 549.6 541.0 522.5

241、 527.4 527.4 501.1 498.1 481.0 482.0 595.3 597.1 576.4 593.7 572.8 569.1 734.3 698.6 706.3 705.4 749.0 05001,0001,5002,000FY2015FY2016FY2017FY2018IFRSFY2019IFRSFY2020IFRSFY2020IFRSFY2021IFRSFY2022IFRSFY2023IFRSFY2024EIFRS1,728.31,700.01,687.21,674.81,697.01,806.6（Billion yen）1,687.6Changes in CAPEX1

242、,728.31,862.4Effective from the fourth quarter of FY2021,the Group has transitioned to a four-segment structure consisting of the Integrated ICT Business,Regional Communications Business,Global Solutions Business,and Others(Real Estate,Energy and Others),from its previous five-segment structure cons

243、isting of the Mobile Communications Business,Regional Communications Business,Long Distance and International Communications Business,Data Communications Business,and Other Business.In connection with this revision,results from the third quarter of FY2021 and earlier and results from FY2020 have bee

244、n restated and are presented on the basis of the new segments.2,063.12,150.0：Others(Real Estate,Energy and Others)：Global Solutions Business：Regional CommunicationsBusiness：Integrated ICT Business 2020-：Data Communications Business：Long Distance andInternational Communications Business：Other Busines

245、s：RegionalCommunications Business：MobileCommunications Business-202078Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION(Billions of yen)(1)The scope of aggregation for each of the figures presented for Finance Business is internal management figures of Finance business in Smart Life of NTT D

246、OCOMO Group in Integrated ICT Business Segment.Such figures include that calculated based on certain assumptions,are not audited and are provided for reference only.Figures for each company are summed up before the elimination of internal transactions.Financial Position as of March 31,2024 of Docomo

247、 Monex Holdings,Inc.and ORIX Credit Corporation is included.(2)The scope of aggregation for each of the figures presented for Data Center Business is internal management figures of the data center business division of NTT Ltd.Group in Global Solutions Business Segment,NTT Communications Group in Int

248、egrated ICT Business Segment,NTT East and NTT West in Regional Communications Business Segment.Such figures include that calculated based on certain assumptions,are not audited and are provided for reference only.Figures for each company are summed up before the elimination of internal transactions.

249、Changes in asset composition79Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION4,163.34,088.23,854.83,971.64,262.74,699.97,624.37,364.38,230.59,591.09,600.047.1%45.2%40.6%43.9%46.0%51.9%100.8%88.9%96.1%97.4%0.0%20.0%40.0%60.0%80.0%100.0%120.0%0.02,000.04,000.06,000.08,000.010,000.012,000.0FY

250、2015FY2016FY2017FY2017IFRSFY2018IFRSFY2019IFRSFY2020IFRSFY2021IFRSFY2022IFRSFY2023IFRSFY2024EIFRS（Billion yen）*Debt Equity ratio=Interest-bearing debt/Shareholders equity Changes in Interest-bearing DebtDebt/Equity ratio*80Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONChanges in Number of

251、 EmployeesStarting from FY2016,the figures in parentheses are the number of employees that does not including employees whose contracts were changed from fixed-term contracts to open-ended contracts.Past figures have been retroactively revised as a result of expanding the scope of the personnel coun

252、ted at certain overseas subsidiaries in Long distance and international communications business segment.(FY2017:+2,000 persons,FY2018:+4,550 persons)Effective from the fourth quarter of FY2021,the Group has transitioned to a four-segment structure consisting of the Integrated ICT Business,Regional C

253、ommunications Business,Global Solutions Business,and Others(Real Estate,Energy and Others),from its previous five-segment structure consisting of the Mobile Communications Business,Regional Communications Business,Long Distance and International Communications Business,Data Communications Business,a

254、nd Other Business.In connection with this revision,results from the third quarter of FY2021 and earlier and results from FY2020 have been restated and are presented on the basis of the new segments.24,800 24,350 24,150 25,250 31,950 31,500 25,450 26,100 26,100 26,700 27,250 80,550 111,650 118,000 12

255、3,900 133,200 139,700 43,750 43,850 47,350 52,550 51,600 49,950 177,950 188,300 195,100 193,500 201,800 66,200 68,250 67,600 79,550 74,750 75,400 75,400 72,950 70,300 67,200 65,250 26,150 26,750 27,450 26,650 27,550 28,100 45,850 46,500 47,150 51,050 51,400 0100,000200,000300,000FY 2015FY 2016FY 201

256、7FY 2018FY 2019FY 2020FY 2020FY 2021FY 2022FY 2023FY 2024 E241,450274,850(268,450)284,550(275,650)307,900(284,550)319,050(296,500)324,650(298,900)(62,250)(43,850)(26,750)(111,300)(59,800)(58,350)(47,350)(52,450)(27,450)(26,600)(117,100)(123,000)(24,300)(23,950)(24,150)(56,650)(51,500)(27,500)(132,25

257、0)(28,600)(28,050)(59,300)(49,900)(138,500)(28,350)324,650(298,900)(45,750)(59,300)(176,750)(22,300)333,850(325,050)(46,450)(65,400)(187,850)(25,350)338,650(329,850)(47,100)(62,700)(194,650)(25,350)(193,100)(26,300)(25,950)(61,000)(59,400)(201,450)(51,050)(51,400)338,450(331,100)345,700(338,550)：Oth

258、ers(Real Estate,Energy and Others)：Global Solutions Business：Regional CommunicationsBusiness：Integrated ICT Business 2020-：Data Communications Business：Long Distance andInternational Communications Business：Other Business：RegionalCommunications Business：MobileCommunications Business-202081Copyright

259、2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION02004006008001,0001,2001,400FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024E(Hundred million shares)(Note1)Outstanding Shares:Average number of shares outstanding,excluding own shares(Note2)This chart reflects the fo

260、llowing stock splits:Stock split on July 1,2015(1 share split into 2 shares),Stock split on January 1,2020(1 share split into 2 shares)and Stock split on July 1,2023(1 share split into 25 shares)(Note3)The number of outstanding shares in fiscal 2024 is based on the assumption that the Company will a

261、cquire up to 1.4 billion shares of treasury stock from the market.(Period of repurchase based on the resolution:August 8,2024-March 31,2025)Changes of Outstanding Shares1,276837Cumulative total of shares decreased by around 34%(2.6%Average Decrease Annually)82Copyright 2025 NIPPON TELEGRAPH AND TELE

262、PHONE CORPORATIONNumber of Employees*Figures for NTT East include employees from the consolidated regional outsourcing companies(NTT EAST-MINAMIKANTO and others),NTT-ME and NTT EAST SERVICE,while figures for NTT West include NTT BUSINESS SOLUTIONS,NTT MARKETING ACT ProCX,NTT FIELDTECHNO and NTT BUSI

263、NESS ASSOCIE WEST.Figures for those companies include the number of more than 60-year-old contracted employees.Age203040506065Age Distribution of Employees at NTT East and NTT West(As of March 31,2024）02,0004,00083Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONFTTH Churn Rate*(Sum of NTT E

264、AST and NTT WEST）FTTH Subscriptions(Sum of NTT East and NTT West）FY2024ETotal FTTH Service:Change from preceding Fiscal Year+0.1HikariCollabo-rationModel(1)Number of opened connections+2.11Number of switchover lines+0.30(2)Number of cancellations(1.77)Net Increase (1)+(2)+0.33FLETS Hikari(1)Number o

265、f opened connections+0.57(2)Number of cancellations(0.80)Number of switchover lines(0.30)Net Increase (1)+(2)(0.23)Reference:FY2024E Breakdown of FTTH Subscriptions*(millions subs)(millions subs)*“Sum of number of churn for each month of each quarter”/“Sum of number of active subscribers*for each mo

266、nth of each quarter”*Active subscribers=(number of subscribers at end of previous month+number of subscribers at the end of the current month)/2Fixed Broadband Business FTTH Subscriptions FY 2020FY 2021FY 2019FY 2023FY 2022FY 2024EFLETSHikari 6.31HikariCollaborationModel17.451.00%0.82%0.82%1.02%0.95

267、%0.75%0.70%0.84%0.71%0.64%0.66%0.78%0.71%0.62%0.64%0.76%0.74%0.64%0.64%0.77%0.80%0.70%0.69%0.85%FY20181Q2Q3Q4QFY20191Q2Q3Q4QFY20201Q2Q3Q4QFY20211Q2Q3Q4QFY20221Q2Q3Q4QFY20231Q2Q3Q4Q7.3215.257.7713.896.7716.816.9716.296.5417.1222.5621.6623.5823.2723.6523.7584Copyright 2025 NIPPON TELEGRAPH AND TELEPHO

268、NE CORPORATION30M20M10M40M4.9Gbps320Mbps10Gbps50MbpsAccess Speed*1Access Speed*1FixedNTT EAST and NTT WEST*2Approx.0.04M subsMobileRakuten mobilemarket shareApprox.4Broadband Access Services in JapanMobile217.98M subsApprox.150M100M50M200MKDDISoftBankSoftBank market shareApprox.24KDDI market shareAp

269、prox.32NTT DOCOMO90.19M subsApprox.NTT market shareApprox.41*1 Figures for access speed are the speeds of typical commercial services and the maximum values of the best-effort traffic.*2 Stopped accepting applications from June 30,2016.Sauce:Figures as of September 30,2024,published by the Ministry

270、of Internal Affairs and CommunicationsFTTH40.72M subsApprox.NTT East and NTT West23.72 subsNTT market shareApprox.58DSL0.05M subsApprox.CATV6.08M subsApprox.85Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONNew Medium-Term Management StrategyNew Value Creation&Sustainability 2027Powered by

271、IOWNAttachment86Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONFundamental Principles ofNew Value Creation&Sustainability 2027 Powered by IOWNInnovating a Sustainable Future for People and Planet87Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONFor that Purpose,We Will Increase Ou

272、r Investments in Growth AreasWill invest 8.0 trillion in growth areas over the next 5 yearsFY2015FY2022FY202750UP1.0tn/year0.6tn/year1.5tn/year1.0tn/year8.0 trillion over the next 5 years12.0 trillion in total88Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONWe Will Also Further Increase Ou

273、r Cash-Generation Ability for the FutureLooking ahead to FY2027,aiming to increase our cash-generation abilityfor growth and reach EBITDA of 4.0 trillion+20increase4.0tn3.3tnFY2022FY202789Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONPillars of Our Initiatives1.NTT as a Creator of New Val

274、ue and Accelerator of a Global Sustainable Society3.Improving the Employee Experience(EX)i.Establishment of manufacturing company for photonic-electronic convergence devicesii.Acceleration of IOWN research and development/commercialization2.Upgrading the Customer Experience(CX)IOWN-Driven Creation o

275、f New Value (from concept to commercialization)i.Strengthening the personal businessii.Strengthening the use of DX/data in society and industryiii.Expansion and upgrade of data center infrastructureData-Driven Creation of New Valuei.Develop sustainability solutions for customersii.Creating Circular

276、Economy businessesiii.Progression towards Net-Zero Achievement of a Circular Economy SocietyFurther Strengthening of Business Foundations Fusion of Research and Development with a Market-Focused Strategy Strengthening of Services that Emphasize Customer Experience(CX)Open and Innovative Corporate Cu

277、lture Support Career Growth Global Benefits for Employees and their Families90Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION Will establish“NTT Innovative Devices Corporation”in June 2023 to rapidly commercialize photonic-electronic convergence devices that achieve low power consumption,a

278、s a solution to the growing power consumption caused by the increased use of AI(starting with an initial investment of 30.0 billion,with subsequent increases to be considered）.Establishment of manufacturing company for photonic-electronic convergence devices Total research and development for IOWN(i

279、ncluding 6G)will be 100.0 billion for FY2023 with continued investments thereafter,and accelerated commercialization of servers(SWB(1)and DTC(2).Acceleration of IOWN(including 6G)research and development/commercializationPhotonic-Electronic Convergence DevicesIOWN1.0IOWN2.0IOWN3.0IOWN4.0Optical Intr

280、a-Chip ConnectionsInter-Board Connection DevicesCompact/Low-Power-Consumption Devices for NetworksInter-Chip Connection DevicesFY2022from FY2023from FY2029from FY2025FY2030 and after IOWN-Driven Creation of New Value (from Concept to Commercialization)(1)Super White Box(2)Digital Twin Computing1.NTT

281、 as a Creator of New Value and Accelerator of a Global Sustainable SocietyTo 100 xPowerEfficiency91Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONData-Driven Creation of New Value(Smart World)Will actively invest in personal business and other growth areas(at least 1.0tn/5 years).Strengthe

282、ning personal business(strengthening DOCOMOs Smart Life businesses)CustomersFeedbackApproachProposal and offering of optimal personalized servicesData PlatformAI-Driven AnalysisVarious Service OfferingsAccumulating Customer Information of Company/PartnersHealthcare/Medical ServicesReceiving advanced

283、 medical services that leverage dataVariety of services offered througha shared one-stop appFinancial ServicesPartners Customer BasesDOCOMO Customer BaseAccountSettlementInvestmentInsuranceLendingGathering/Analysis/Application of DataBio-Digital Twin1.NTT as a Creator of New Value and Accelerator of

284、 a Global Sustainable Society92Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONData-Driven Creation of New Value(Smart World).Strengthening the Use of DX/Data in Society and Industry(use of AI/Robots)Will jointly develop technology and solutions globally,transforming industries that support

285、 day-to-day life and society(will make investments of at least 3.0tn/5 years in digital business)Finance/InsuranceMedical/HealthcareGovernmentServicesManufacturingIndustryStreaming/MediaUrbanDevelopment(Smart Cities)Enhancement of AI/RobotsIOWN Digital TwinJoint DevelopmentFinance/InsuranceMedical/H

286、ealthcareGovernmentServicesManufacturingIndustryCulture/EducationUrbanDevelopment(Smart Cities)Enhancement of AI/RobotsGlobal Digital Business InnovationAdvancement of DX and Data Utilizationin Domestic Industries1.NTT as a Creator of New Value and Accelerator of a Global Sustainable Society93Copyri

287、ght 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION(1)Recalculated from Structure Research 2022 Report,excluding Chinese operators.(2)Does not include capital investments made using third-party capital.(3)The targets for reduction are Scope 1(our own direct greenhouse gas emissions)and Scope 2(indir

288、ect emissions associated with the purchase of electricity,heat and steam that are provided by other companies)under the GHG protocol for data centers.(4)IT power capacity of purpose-built datacenters owned by NTT Communications Group and NTT Ltd.Group(including JVs with third parties)as of March 202

289、3.AmericasEMEAAPACIndiaJapan,Indonesia,Malaysia,Singapore,etc.Germany,England,the Netherlands,Switzerland,etc.Expansion and Upgrade of Data Centers300MW(4)400MW(4)150MW(4)250MW(4)Will further expand the worlds third-largest(1)data center infrastructure,and implement upgrades through the introduction

290、 of IOWN technology(will make investments of at least 1.5tn/5 years(2)Achievement of carbon neutrality by FY2030(3)Nearly Doubling the Current Total of 1,100MWData-Driven Creation of New Value(Smart World)1.NTT as a Creator of New Value and Accelerator of a Global Sustainable Society94Copyright 2025

291、 NIPPON TELEGRAPH AND TELEPHONE CORPORATION Will promote green solutions that can be achieved by“Green Energy x ICT”(will make investments of 1.0tn/5 years)Will expand our renewable energy generation business and achieve a stable supply of optimized and efficient energy directed towards local produc

292、tion for local consumptionGreen EnergyICTData gathering andAI-based analysis/predictionsEMS1Decentralized Data CentersFactoriesBiomassPowerHydroelectricPowerSolarPowerWindPowerEVsAchievement of a Circular Economy Societyi.Develop sustainability solutions for customersStorageBatteriesEnergy StorageIO

293、WNLocal Grid NetworksRenewable Energy GenerationStable Supply of Energy Directed towards Local Production for Local Consumption(1)Energy Management System1.NTT as a Creator of New Value and Accelerator of a Global Sustainable Society95Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONImproved

294、 efficiency,value-addition and industrial development in primary industriesIOWN,5G/IoT,AI/RobotsAchievement of a circular economy society across various industries,with energy as the starting pointCO2Smart Forestry IoT and digitalization of forestry,etc.Achievement of a Circular Economy Society.Crea

295、ting Circular Economy-Oriented BusinessesSmart Livestock Farming Operation that combines the livestock farming industry and ICT,etc.Smart Aquaculture Aquaculture utilizing ICT Utilization of genome-editing technologies,etc.Will achieve a sustainable society by recycling resources across various indu

296、stries and further accelerating regional revitalizationLeftover Food(Food Loss)Garbage Recycling/Biomass PlantsRenewable Energy Water/wind/solar power,etc.1.NTT as a Creator of New Value and Accelerator of a Global Sustainable Society96Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONAchieve

297、ment of a Circular Economy Society.Progression towards Net-Zero Looking ahead to FY2040,aiming to expand“NTT Green Innovation toward 2040”to Scope 32040Carbon-NeutralExpansion to Scope 3Further Strengthening of Collaborations with SuppliersCustomers Contributions to DecarbonizationDuring product man

298、ufacturing,etc.During Customer usage,etc.NTT Green Innovation toward 2040(1)Illustration of NTT Group Greenhouse Gas Emission Reductions(Domestic+Overseas)FY2022 Results:2.53million tons4.00million tons0.95million tonsScope322.23 million tonsFY2022 Results:19.49millon tonsPlan:3.075million tonsFY202

299、0FY2030FY2040FY2022(1)GHG Protocol:Scope 1(our own direct greenhouse gas emissions)and Scope 2(indirect emissions associated with the purchase of electricity,heat and steam that are provided by other companies)1.NTT as a Creator of New Value and Accelerator of a Global Sustainable Society203080%Redu

300、ction in Greenhouse Gas Emissions(compared to FY2013)Mobile(NTT DOCOMO)Data CentersCarbon-NeutralScope1、24.65million tons97Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONSystem RedundancyArea SeparationsService SeparationC-AreaEquipmentB-AreaEquipmentA-AreaEquipmentResourceExpansionIoTGene

301、ralVoiceMitigation of FailuresPrevention of FailuresPrevention of Human Error/Operational SupportRegulate the inflow of irregular trafficDevelopment of Resilient NW/SystemsWorld-class Cybersecurity practicesData LakeIOWNTechnologyNetworkAIVisualization of NW StatusSimulationFailure Prediction/Switch

302、ingFurther Strengthening of Business Foundations We will make our networks/systems more resilient to withstand large-scale failures,cyberattacks or other occurrences in order to strengthen social infrastructure and enhance our countermeasures against increasingly severe natural disasters(will make i

303、nvestments of 160.0 billion(1)by FY2025)Distribution of supply chain risk,regional distribution of offices,etc.Proactive response and supportleveraging AI and data,etc.Strengthening of disaster-specific risk scenariosPower supply from EVs and on-site PPAsSenderNTT EquipmentABDetect and Cancel High-V

304、olume CallsHigh-VolumeTransmissionSeparated System InstallationsDTC(2)CF(3)Exten-sionEquip-mentEquip-mentExpansionFurther Strengthening of Disaster Countermeasures(1)Includes other reliability improvement measures.(2)Digital Twin Computing(3)Cognitive Foundation1.NTT as a Creator of New Value and Ac

305、celerator of a Global Sustainable Society98Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION Fusion of Research and Development with a Market-Focused Strategy2.Upgrading the Customer Experience(CX)Will combine and strengthen our R&D capabilities with our market analysis and alliance capabili

306、ties at the holding company levelWill enable us to strengthen our product-oriented R&D to develop products through co-creations on a global scale and promote strategic alliances with a variety of partnersAlliances with PartnersUnderstanding Customer NeedsGlobal Customers(Including Japan)Product Offe

307、rings(Based on Market Needs)Each Group Company/PartnersProduct Offerings(Technology-Oriented)Establishing a New R&D Organization with Market Analysis,Alliances and Planning CapabilitiesMarket PlanningAnalysis Department(New)(Market Research Capabilities)NTT LaboratoriesAlliances Department(New)(Alli

308、ance Capabilities)FeedbackResearch and Development Planning Department(Research and Development Capabilities)Each Group CompanyGlobal Customers(Including Japan)Research and Development Market Strategy Division(New)99Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONNTT Holdco Market PlanningA

309、nalysis Department Research and Planning Division/InstituteEach NTT Group Company/PartnersFurther Improve and Update Services by Being AgileStrengthening of Services that Emphasize CXWith a Market-in Approach,Achieve Both Customer Satisfaction and Business Growth at the Same TimeCustomer Experience

310、FirstEach NTT Group Company/PartnersSet/Implement KPIs that Track the Customer JourneyEach NTT Group Company/PartnersOffer New Experiences and Impressions that Exceed Customer ExpectationsCustomers(Individuals,businesses,local governments,government organizations,etc.)2.Upgrading the Customer Experi

311、ence(CX)100Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONOpen and Innovative Corporate CultureFoster a culture of openness,collaboration and trial and error for a better customer experience Continue to strengthen diversity and inclusionCustomerFirstCollaboration Collaborate globally Value

312、 differencesOpenness Open discussions Transparency Healthy debate Psychological safetyTrial&Error Overcome fear of failure and move forward Learn from failures byfailing small and fast diversity and inclusion Shared ValuesConnectTrustIntegrity3.Improvement of Employee Experience(EX)101Copyright 2025

313、 NIPPON TELEGRAPH AND TELEPHONE CORPORATION Support Career GrowthSupport employee career growth and increase investment in human capital to drive business growthEX ImprovementSupporting GrowthDeveloping Diverse Work Styles and Work EnvironmentsOnboardingCareer DesignWorkExperienceTraining/SkillImpro

314、vementsReview/Stock-TakingNewChallenges/TransfersJoining the Company Growth opportunity Work satisfaction ExcitementImprove Expertise by Repeating the Cycle3.Improvement of Employee Experience(EX)102Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONCurrentFutureSchemeEligibilityBenefitsSchola

315、rship fundJapan-basedemployeesSupport a portion of educational expenses until reaching age 22 For children of deceased employees In place since 1988Expand the current schemeEmployeesConsistent with the current benefitsDetails to be considered based on local laws and trendsGlobal Benefits for Employe

316、es and their FamiliesExpand the benefits that support a portion of educational expenses for children of deceased employees until they reach age 223.Improvement of Employee Experience(EX)103Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATION20 increase(compared to FY2022)EBITDACompany-WideTarge

317、tsGrowthAreas(1)ExistingAreas(3)EBITDAOverseas Operating Income Margin(2)EBITDAROIC40 increase(compared to FY2022)10（FY2025）10 increase(compared to FY2022)9(FY2022 Results:8.2%)Targets IndicatorsTarget Levels(FY2027)In addition to the above,we are setting sustainability-related targets:New Female Ma

318、nager Promotion Rate:at least 30%each year Greenhouse Gas Emissions:targeting carbon neutrality in 2040,as well as Net-Zero Engagement Rate:To be improvedMedium-Term Financial Targets(1)IOWN,digital/data centers,power/energy,Smart Life,real estate,AI/robots,etc.(2)NTT DATA consolidated.Excludes temp

319、orary expenses,such as M&A-related depreciation costs of intangible fixed assets.(3)NTT DOCOMOs consumer telecommunications businesses,NTT East and NTT West104Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONEBITDA ProgressStrengthening Our Ability to Generate Cash for Growth(with EBITDA as

320、a Key Indicator)We will strengthen initiatives focused on our cash generation abilities to achieve further sustainable growth and have set EBITDA as a key indicator,aiming for an increase of 20%to reach 4.0 trillion by FY2027(We will continue to balance sustainable growth and shareholder returns,and

321、 are aiming for EPS to grow consistently with previous levels)In the growth areas(1)that will be drivers of that growth,we are aiming for an EBITDA increase of 40%4.0tn3.3tnFY2022FY20271.3tn1.9tnFY2022FY2027 IOWN Digital/Data Centers(primarily globally)Power/Energy Smart Life Real Estate AI/Robotset

322、c.NTT Consolidated Targets20IncreaseGrowth Areas40Increase(1)IOWN,digital/data centers,power/energy,Smart Life,real estate,AI/robots,etc.105Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONIncrease Investments to Achieve Further GrowthWe will make investments/contributions to our growth area

323、s(1)amounting to 8.0 trillion in the next five years(2)(an increase of 50%over current levels),and plan for a total of 12.0 trillion Maintain/reduce our debt-to-EBITDA ratio to 2xFY2022FY20272.5x2xFY201550UP0.6tn/year1.0tn/year1.5tn/year12.0tnTotal8.0 trillion in five yearsGrowth Investments(Capital

324、 Expenditures+Investments)Debt-to-EBITDA Ratio1.0tn/yearFY2022FY2027(1)IOWN,digital/data centers,power/energy,Smart Life,real estate,AI/robots,etc.(2)From FY2023 FY2027.106Copyright 2025 NIPPON TELEGRAPH AND TELEPHONE CORPORATIONFundamental Policy on Shareholder ReturnsOur basic policy is to implement steady increases in dividendsDividend PolicyShare BuybacksWe will flexibly conduct share buybacks to improve capital efficiencyInnovating a Sustainable Futurefor People and Planet