Message from the CEO

We first wish to express our deepest sympathies to all those affected by the Noto Peninsula Earthquake that occurred this January.

At the recent Ordinary General Meeting of Shareholders, I was re-elected by shareholders and will continue to serve as President and CEO. I will continue to do my utmost to improve NTT Group's corporate value and will strive for its further development based on the medium-term management strategy, “New Value Creation & Sustainability 2027 Powered by IOWN.”

FY2023 Financial Results and FY2024 Financial Forecast

Regarding our financial results for the fiscal year ended March 31, 2024, both revenues and profit increased year-over-year, and operating revenues, operating profit and profit each reached new record-high levels. EPS (earnings per share), which was the main financial target under our previous medium-term management strategy (for which FY2023 was the final year), was ¥15.1, which exceeded our target of ¥14.8.

With respect to our forecast for the fiscal year ending March 31, 2025, we are aiming to achieve record-high operating revenues of ¥13,460.0 billion (an increase of ¥85.4 billion year-over-year), based on expected increases in revenues in the Integrated ICT Business and Global Solutions Business segments, among other factors. We anticipate that operating profit, profit and EBITDA will each decrease year-over-year, with operating profit of ¥1,810.0 billion (a decrease of ¥112.9 billion year-over-year), profit of ¥1,100.0 billion (a decrease of ¥179.5 billion year-over-year) and EBITDA of ¥3,330.0 billion (a decrease of ¥88.1 billion year-over-year).

This is due to the absence of the effect of temporary factors, such as the sales of non-core assets that had been conducted through the end of the previous fiscal year. We are aiming to achieve an increase in profit on an adjusted basis excluding such temporary factors, and are actively implementing measures to achieve the FY2027 targets in our medium-term management strategy. Specifically, we are working on maximizing returns from active investments in growth areas, strengthening our domestic and international enterprise businesses by leveraging the synergies from the integration of the NTT DOCOMO and NTT DATA groups, and implementing fundamental cost structure reforms, and are working to increase EBITDA, our key financial target, to ¥4,000.0 billion by FY2027, which represents a +20% increase compared to FY2022.

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

2024 June