Financial Highlights

^1.NTT has adopted International Financial Reporting Standards (IFRS) beginning with FY2018.

^2.FY2017 EPS in IFRS excludes the effects of the arbitration award received from Tata Sons Limited.

^3.Adjusted for a stock split of common stock (2-for-1) with an effective date of January 1, 2020, and the 25-for-1 stock split effective on July 1, 2023.

^4.Overseas Operating Profit excludes temporary expenses, such as M&A-related depreciation costs of intangible asset. Includes results from NTT DATA Group's overseas businesses. Results for FY 2022 include results for the first half of the NTT Ltd. Group.

^5.Cost Reductions show the cumulative reductions from FY2017.

^6.Domestic Network Business in Capex to Sales excludes NTT communications' data centers and certain other assets.

^7.As IFRS 16 (Leases) became effective on April 1, 2019, NTT Group has changed the method of accounting for lease payments under operating leases from expenses to depreciation. In consideration of the comparability of EBITDA with actual results in FY 2018, EBITDA and depreciation of its components in actual results in FY 2019 and the full-year forecast for FY 2019 have not been adjusted to reflect this change.

^8.Beginning on April 1, 2020, NTT Group has excluded all depreciation expenses related to right-of-use assets from EBITDA and depreciation, as a component of EBITDA.As a result of the change described above, EBITDA and depreciation, as a component of EBITDA, for FY 2019 have been retroactively revised to be reduced by 10.9 billion yen.

Index calculation formula

D/E ratio = Interest-bearing debt / Shareholders' equity x 100

Free cash flows = Cash flows from operating activities + Cash flows from investing activities
The effect （the effect of the payment deadline for accounts receivable being postponed from the end of the month to the beginning of the following month） is excluded in the case of the settlement date falls on a non-business day.

EPS = Profit attributable to NTT / weighted average number of shares outstanding

Capex to Sales = Capital investment / Operating revenues x 100

ROE = Profit Attributable to NTT / Shareholders' equity x 100

ROA = Profit before taxes / Total assets x 100

EBITDA = Operating Profit + Depreciation and Amortization + Loss on Sales and Disposal of Property, Plant and Equipment + Impairment Loss