IR Presentation  December, 2010
The forward-looking statements and projected figures concerning the future performance of NTT and itssubsidiaries and affi...
Agenda         ①Fixed Line Business         ②Global Business         ③CAPEX         ④Shareholder Returns         ⑤Others (...
①-1 Fixed Line Business  Downward trend in the fixed line business revenues is slowing down  IP-related revenues increas...
①-2 Fixed Line Business Plan to achieve profitability from FTTH services (FLET’S Hikari + Hikari Denwa) on a single-year ...
②-1 Global Business While seeking business synergies through the acquisition of Dimension Data and Keane, NTT  Group will...
②-2 Global Business By taking the globalization of users and increased growth momentum in emerging countries as an opport...
③ CAPEX CAPEX levels peaked in the year ended March 31, 2009 and now show a decreasing trend    - Fixed: Provision of NGN...
④ Shareholder Returns Enhancing shareholder returns in the medium-term. Annual dividends have increased for 4 consecutiv...
⑤-1 Others(Regulatory Issues)   NTT’s Advocate    Broadband environment in Japan is at world-leading     levels    Promo...
⑤-2 Others(Regulatory Issues)   【 Reference 】 The “Hikari-no-Michi” Vision   ● With an increase in ICT related investments...
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1012e_1

  1. 1. IR Presentation December, 2010
  2. 2. The forward-looking statements and projected figures concerning the future performance of NTT and itssubsidiaries 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 currentlyavailable to it regarding NTT and its subsidiaries and affiliates, the economy and telecommunicationsindustry in Japan and overseas, and other factors. These projections and estimates may be affected bythe future business operations of NTT and its subsidiaries and affiliates, the state of the economy inJapan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects ofcompetition, the performance of new products, services and new businesses, changes to laws andregulations affecting the telecommunications industry in Japan and elsewhere, other changes incircumstances that could cause actual results to differ materially from the forecasts contained or referredto herein, as well as other risks included in NTT’s most recent Annual Report on Form 20-F and otherfilings and submissions with the United States Securities and Exchange Commission.* “E” in this material represents that the figure is a plan or projection for operation. ‐1‐ Copyright(c) 2010 Nippon Telegraph and Telephone Corporation
  3. 3. Agenda ①Fixed Line Business ②Global Business ③CAPEX ④Shareholder Returns ⑤Others (Regulatory Issues) ‐2‐ Copyright(c) 2010 Nippon Telegraph and Telephone Corporation
  4. 4. ①-1 Fixed Line Business  Downward trend in the fixed line business revenues is slowing down  IP-related revenues increased to levels close to voice revenues due to the increase in FTTH subscriptions NTT EAST NTT WEST (Billions of yen) (Billions of yen)Revenues 2,061.3 2,002.7 1,952.9 1,928.6 1,945.0 Revenues 1,951.5 1,901.2 1,824.3 1,780.8 1,753.0(Change (Changeyear-on-year) (-58.6) (-49.7) (-24.3) (16.3) year-on-year) (-50.2) (-76.9) (-43.4) (-27.8) 1,159.0 1,140.0 Voice Revenues 1,031.9 Voice Revenues 1,016.6 911.2 896.4 816.1 798.1 739.0 730.0 IP-related Revenues 645.5 724.0 563.9 581.0 IP-related Revenues 525.5 462.6 8,783 460.4 7,533 385.8 359.4 6,568 6,291 304.9 5,718 4,963 4,843 3,815 FTTH 3,399Subscriptions FTTH 2,677 Subscriptions (thousands) (thousands) 2007/3 2008/3 2009/3 2010/3 2011/3E 2007/3 2008/3 2009/3 2010/3 2011/3E(Year ended/ing March 31) (Year ended/ing March 31) ‐3‐ Copyright(c) 2010 Nippon Telegraph and Telephone Corporation
  5. 5. ①-2 Fixed Line Business Plan to achieve profitability from FTTH services (FLET’S Hikari + Hikari Denwa) on a single-year basis in the year ending March 31, 2012. Efforts in order to achieve profitability Increase cost-efficiency Increase ARPU and Increase cost-efficiency in sales-related expenditures prevent subscription cancellations in facility construction expenditures (control sales promotion costs, etc.) Year ended/ing 2008/3 2009/3 2010/3 2012/3 March 31 Achieve (82.9) profitability FLET’S Hikari (126.4) 100.0 billion yen (192.4) (6.0) (88.9) Hikari (27.8) Denwa Improved by (154.2) 65.3 billion yen 200.0 billion yen (Note) FLET’S Hikari: 2008/3, 2009/3: figures of designated telecommunications services (excluding voice transmission services) except specified telecommunications services 2010/3: figures of designated telecommunications services (FTTH access services) except specified telecommunications services Hikari Denwa: 2009/3: figures of designated telecommunications services (voice transmission services) except specified telecommunications services 2010/3: figures of designated telecommunications services (other services) except specified telecommunications services (In 2008/3, FTTH balances were not calculated, since Hikari Denwa was not part of designated telecommunications services.) ‐4‐ Copyright(c) 2010 Nippon Telegraph and Telephone Corporation
  6. 6. ②-1 Global Business While seeking business synergies through the acquisition of Dimension Data and Keane, NTT Group will integrate the strengths of its group companies and provide comprehensive ICT services. Respond to the needs for high-quality, comprehensive ICT services from corporate customers in Japan and abroad with global, end-to-end, one-stop services. North Asia Europe America Australia, South America, Africa, etc.アプリケーションApplications Keane Local subsidiaries  Application development, Customized operation, and infrastructure Packaged management for large corporations and public (SAP, etc.) institutions  Locations in 11 countries Platforms Data Centers NTT Worldwide Telecommunication Dimension Data  Deployment and Networks Local subsidiaries maintenance of IT system infrastructure, etc.  24-hour support at 7 global service centers worldwide Office ICT Locations in 49 countries ディメンジョン・データ社 (including Africa and the Middle East) (On Premises) ‐5‐ Copyright(c) 2010 Nippon Telegraph and Telephone Corporation
  7. 7. ②-2 Global Business By taking the globalization of users and increased growth momentum in emerging countries as an opportunity, NTT Group will actively expand global businesses, and target global business revenues of 100 billion dollars (US) by the year ending March 31, 2013. SI/NI business for corporate users and mobile business for consumers will be developed as the two key pillars. 2013/3E Revenues* 2011/3E 2008/3 US$2 billion US$4 billion US$10 billion Global ICT solutions for business users in Japan and overseas - New business developments, as well as cloud services contributing to cost SI/NI business Expansion Policy reduction and increased productivity. - High quality total ICT solutions providing end-to-end, global one-stop services for corporate users Global development of network services - Data communications services, such as IP-VPN - Tier 1 ISP, submarine cable - Mobile international roaming services, mobile services in other countries Global development of application services Mobile business content distribution, etc. for consumers - Distribution of comics to mobile phones - Content distribution in Europe - Multi-device video distribution*Simple aggregate of global business revenues for NTT Group companies (internally governed figures). ‐6‐ Copyright(c) 2010 Nippon Telegraph and Telephone Corporation
  8. 8. ③ CAPEX CAPEX levels peaked in the year ended March 31, 2009 and now show a decreasing trend - Fixed: Provision of NGN to entire FTTH service area by the year ending Mar. 31, 2011; to be reduced thereafter - Mobile: CAPEX, including LTE investments, are not expected to surpass current levels (Billions of yen) CAPEX/Sales ratio 2,500 21% 21% CAPEX/Sales ratio 20% 20% 20% 2,236.9 20% 2,191.9 19% 156.1 2,128.9 2,145.1 136.2 211.2 222.1 1,987.1 2,000 1,960.0 143.6 170.0 ▲15% 15% 15% 887.1 934.4 758.7 737.6 Target 1,500 686.5 675.0 Other NTT DOCOMO (Consolidated) 112.1 10% 139.5 176.8 180.0 162.5 NTT DATA (Consolidated) 25.5 150.0 1,000 57.7 45.0 40.6 NTT (Holding Company) 145.6 50.3 37.0 100.5 108.1 112.8 107.6 NTTCommunications 118.0 NTT West 462.9 378.2 NTT East 412.4 374.4 391.1 380.0 5% 500 Optical Optical Optical Optical Optical 430.0 Optical 422.2 investment 435.9 investment 449.1 469.0 454.8 investment investment investment investment 349.0 356.0 328.0 316.0 322.0 310.0 0 0% (Year ended/ing 2006/3 2007/3 2008/3 2009/3 2010/3 2011/3E 2012/3E 2013/3E March 31) Copyright(c) 2010 Nippon Telegraph and Telephone Corporation ‐7‐
  9. 9. ④ Shareholder Returns Enhancing shareholder returns in the medium-term. Annual dividends have increased for 4 consecutive years to double the original amount. (Yen) 150 50% Dividends per share Dividends per share 120 120 110 40% Pay-out ratio 100 90 30% Pay-out ratio 80 32.3% 31.8% 60 Approx 27.5% 20% 50 23.0% 17.1% 23% * 10% 0 0% 2006/3 2007/3 2008/3 2009/3 2010/3 2011/3E Year ended/ing March 31 (Billions of yen) Adopted policy for cancellation of all treasury Share buybacks 600 539.4 stocks (approximately 0.25 billion shares as of March 31, 2010). 400 ・Cancellation over two years (half each year) Buy back of shares held by the ・The first cancellation completed in Nov. 2010 200.0 200 Government 94.4 0 Year ended/ing March 31 2006/3 2007/3 2008/3 2009/3 2010/3 2011/3E *Excludes special factors such as the gain on the transfer of substitutional portion of the employee pension fund ‐8‐ Copyright(c) 2010 Nippon Telegraph and Telephone Corporation
  10. 10. ⑤-1 Others(Regulatory Issues) NTT’s Advocate  Broadband environment in Japan is at world-leading levels  Promotion of ICT use is essential for the expansion of broadband  Separation of the access line network will impair management efficiency and shareholders’ value ‐9‐ Copyright(c) 2010 Nippon Telegraph and Telephone Corporation
  11. 11. ⑤-2 Others(Regulatory Issues) 【 Reference 】 The “Hikari-no-Michi” Vision ● With an increase in ICT related investments, realize approx. 3% sustainable economic growth after 2020, and significantly contribute to the reduction of CO2 emission. ● By thorough use of ICT, realize broadband service usage in all households (49 million households) by around 2015. ◎ In order to realize the thorough use of ICT, ・ consider submitting legislations to promote e-government and collective use of ICT to the next ordinary session of the Diet ◎ In order to realize the use of broadband services in all households, ・ improve the infrastructure deployment rate from 90% to 100%, and the service subscription rate from 30% to 100%, with broadband speed exceeding 100Mbps ・ as a means to realize these ideals, review/implement necessary measures, including the structural/functional separation of NTT East and NTT West’s access line network by the end of this year, in view of submission to the next ordinary session of diet. ‐10‐ Copyright(c) 2010 Nippon Telegraph and Telephone Corporation
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