2023.2Q Financial Results : Key Points

Although operating profit has, as of the second quarter, decreased by ¥45.6 billion year-over-year, as a result of upfront costs for the optimization of operations such as large-scale system upgrades, and costs for disposal of unnecessary assets, primarily in the Regional Communications Business Segment, our progress is generally proceeding in accordance with our expectations.
For the second half of the fiscal year, we are aiming to achieve the fiscal year plan by steadily implementing cost reduction measures at each group company, focusing on NTT DOCOMO, NTT East and NTT West, while also generating cash by expanding our growth areas (the enterprise and smart life businesses for NTT DOCOMO, and initiatives to capture demand for digitalization for NTT DATA) and streamlining our non-core assets, among other initiatives.

Segment operating profit increased by ¥4.3 billion year-over-year as a result of ongoing growth investments in the enterprise and smart life businesses, as well as improved efficiency in sales measures in the consumer communications business, among other factors. Going forward, we will aim to realize the benefits of our growth investments and work on improving cost efficiencies at each of our businesses in order to achieve the fiscal year plan.

Segment operating revenues increased as a result of increased revenues in Japan, primarily in the public and enterprise fields, as well as the effects of exchange rates overseas. Segment operating profit increased by ¥7.4 billion year-over-year due to increased profits resulting from increased revenues, in addition to the effects of structural reforms. Our progress is generally proceeding in accordance with our expectations, and we continue to aim to achieve our fiscal year plan.