Foundation of Urban Solutions Business Promotion Company

In April 2019, Nippon Telegraph and Telephone Corporation (Head office: Chiyoda-ku, Tokyo; President & CEO: Jun Sawada) will found a preparation company to promote its new "urban solutions" business leveraging NTT Group's people, technologies and assets, as announced on October 15, 2018.

1.Background of the business

NTT Group's new medium-term management strategy Your Value Partner 2025 features "real estate utilization (promotion of urban solutions business)" as one of its pillars. Toward the end of resolving social issues through the promotion of our urban solutions (urban digitalization) business, we have been strengthening our organizational structure so that the entire group will engage in this business as an urban solutions partner of local communities.

In January 2019, we completed the conversion of NTT Urban Development Corporation, which serves the core real estate development function in the urban solutions business, into a wholly-owned subsidiary through our wholly-owned subsidiary NTT-SH Corporation (NTT-SH). We will also transfer control of NTT FACILITIES, INC, which serves the engineering function, to NTT-SH by the end of fiscal 2018, another step forward in the building of a business base necessary to promote our urban solutions business.

2.Future plans

Foundation of urban solutions business promotion company

To build a solid base for the urban solutions business, NTT-SH will be reorganized into an urban solutions business promotion company with enhanced functions and systems. In April, we will found NTT Urban Solutions as a preparation company to prepare for initiation of the business and work to propose specific solutions for urban issues while taking heed of various needs of local communities. NTT Urban Solutions will start operations as NTT Group's point of contact for its urban solutions business in July.

Under a new structure led by the urban solutions business promotion company, in addition to the two affiliated companies' existing projects, we will take full advantage of our group's immovables, information and communications technologies (ICT), energy, environmental technologies and other assets to establish partnerships with local communities, including municipalities and government agencies, as well as companies with a range of know-hows, and push forward our new urban solutions business in a manner unique to NTT Group.

Overview of the urban solutions business promotion company

(1) Company name	NTT Urban Solutions,Inc.
(2) Location	Chiyoda-ku, Tokyo
(3) Title/name of representative	President Hiroshi Nakagawa (to take the post on April 1) *Hiroshi Nakagawa will concurrently serve as the president of NTT Urban Development Corporation
(4) Business line	Point of contact concerning the urban solutions business, integrated management of urban solutions-related information, and coordination of NTT Group partner companies' products
(5) Capital	108.3 billion yen
(6) Large shareholders and shareholding ratio	Nippon Telegraph and Telephone Corporation 100%
(7) Number of employees	Approximately 250 people
(8) Schedule	A preparation company to be founded in April *It will start operations in July.