Message from the CEO

In addition to our results for the fiscal year ended March 31, 2023 and our results forecast for the fiscal year ending March 31, 2024, I would also like to discuss our new medium-term management strategy that was announced in May 2023.

FY2022 Results and Forecast for FY2023 Results and Dividends

In the fiscal year ended March 31, 2023, we achieved record-high operating revenues, operating profit and profit. As a result of factors like the increase in SI revenues from capturing strong global demand for digitalization, operating revenues increased to ¥13,136.2 billion (an increase of ¥979.7 billion (+8.1%) year-over-year), operating profit increased to ¥1,829.0 billion (an increase of ¥60.4 billion (+3.4%) year-over-year) and profit increased to ¥1,213.1 billion (an increase of ¥32.0 billion (+2.7%) year-over-year).

With respect to our results forecast for the fiscal year ending March 31, 2024, although we anticipate operating revenues of ¥13,060.0 billion (a decrease of ¥76.2 billion (-0.6%) year-over-year), we also anticipate a record-high operating profit of ¥1,950.0 billion (an increase of ¥121.0 billion (+6.6%) year-over-over) and a record-high profit of ¥1,255.0 billion (an increase of ¥41.9 billion (+3.5%) year-over-year). Based on our results forecast, we also plan to increase our dividends, which would be our 13th consecutive year of dividend increases.

New Medium-Term Management Strategy

This May, we announced our new medium-term management strategy, “New Value Creation & Sustainability 2027 Powered by IOWN.” We believe that we can support global sustainability by offering new value for customers and society and shifting our business towards achieving a sustainable society. For that reason, we are investing approximately ¥8.0 trillion into growth areas over the next five years. We will also increase our cash-generation ability for the future, and are aiming to increase our FY2022 EBITDA by 20% to ¥4.0 trillion in FY2027. We believe that EBITDA is the most appropriate measure for monitoring this initiative, and so we have set EBITDA as the principal indicator in our new medium-term management strategy.

New Medium-Term Management Strategy Initiative Pillars

With respect to shareholder returns, we will continue to pursue ongoing increases in dividend payments and conduct flexible share buybacks to improve capital efficiency.

Also, in order to create a better investment environment for shareholders and investors and to expand NTT Group's investor base across a wide range of generations who wish to support the sustainable growth of NTT Group, we will be implementing a stock split (1 share → 25 shares).

I would like to conclude this message by thanking all of our shareholders in advance for their continued understanding and support.

2023 June

President and Chief Executive Officer,
Representative Member of the Board
Akira Shimada