Message from the CEO

I would like to express our heartfelt thoughts and prayers to everyone who has fallen victim to COVID-19 or who has been otherwise impacted by the pandemic.

Results for the first half of FY2020 and forecasts for the full year

During the six months ended September 30, 2020, operating revenues decreased, while operating income increased compared to the same period of the previous year. Specifically, operating revenues decreased by ¥178.2 billion (a decrease of 3.0% over the same period of the previous fiscal year) from the previous year to ¥5,711.4 billion. On the other hand, operating income increased by ¥25.8 billion (an increase of 2.6% over the same period of the previous fiscal year) from the previous year to ¥1,008.6 billion. For the fiscal year ending March 31, 2021, we are projecting a decrease in sales of telecommunications equipment from NTT DOCOMO in Japan and system integration services revenues, primarily from overseas, resulting from the impact of COVID-19. We will aim to increase operating income to ¥1,590 billion, which is an increase compared to the previous year, by compensating for the revenue decline through downsizing of costs via means such as curtailing investments and increasing operational efficiency via digital transformation.

NTT Group's Mission in the With/After COVID-19

We project that there will be two major changes to our society and lives. The first will be the entrenchment of remote interactions for the purpose of social distancing. The second will be the transformation in the essence of globalism as maintaining social distancing limits the movement of people, commodities, and money. These changes will drive a trend toward transitioning from supply chains developed on a regional basis across the globe to more locally installed supply chains, giving rise to a new approach toward "glocalization." As "Your Value Partner," NTT Group will continue to transform itself in response to the social and economic changes in its quest to resolve social issues through its business operations.

Transaction to Make NTT DOCOMO a Wholly-Owned Subsidiary

In order for NTT Group to grow and develop in a business environment that is dynamically changing at the global level, it is essential that we make even more strategic use of resources and assets and expedite the decision-making process regarding Group-wide initiatives. It is against this backdrop that in September 2020, we announced the transaction to make NTT DOCOMO a wholly-owned subsidiary through a tender offer (TOB). With NTT DOCOMO at the core, NTT Group will contribute to the digitization and establishment of smart technology systems for Japanese society and industrial infrastructures and aim to resolve social issues. We also intend to strengthen international competiveness, provide a more reliable and secure communication infrastructure, and improve customer satisfaction as well.

We hope to receive your continued understanding and support.

2020 December

President and Chief Executive Officer,
Representative Member of the Board
Jun Sawada