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FY2019.2Q Financial Results-Key Points

Last updated : November 8, 2019

  • FY2019 2Q Resulted operating revenue increase and operating income decrease.
  • FY2019 full-year forecast is to maintain operating income and revise revenue upward, in efforts to outperform the one-year plan.
  • Why the operating income decreased while the operating revenue increased compared to the last year results.

    Making ENNET into consolidated subsidiary for accelerating "Smart Energy Business" contributed greatly for operating revenue.

    Operating income decreased due to customer returns by NTT DOCOMO. In addition to that, the temporary cost increase from point costs to promote "d payment" by NTT DOCOMO and integration costs related to global re-organization.

  • What is the reason why the global business decreased profit margin from last year.

    In addition to the growth investment to enhance Digital Offerings, profits decreased due to delays of the shift to high-value-added / high profitable services (Managed Services, Data Centers, and others) and promotion costs to maximizing brand strength. Transformation would be accelerated to shift to the high-value-added / high profitable services toward the second half of FY2019.

  • Tell us about detailed strategies to achieve the Mid-term financial targets- $25B of overseas sales in FY2023 and 7% of operating profit margin.

    Taking high-value-added / high profit margin Services and Operational consolidation / Digitalization as two main pillars to obtain profits required to reach 7% of operating profit margin.

    NTT Ltd. accelerates the shift to high-value-added / high profitable services and complete integration by FY 2021, thoroughly pursue cost reduction at the same time. NTT Data strengthen the industry capability by creating the global offerings.

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