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October 25, 2021

Refinement of the NTT Group Medium-Term Management Strategy

Tokyo, Japan - October 25th, 2021 -NTT Corporation (NTT) officially announced to refine NTT Group medium-term management strategy which was announced on November 6th, 2018. Under refined management strategy, NTT will contribute to achievement of sustainable society through "Enhance Domestic and Global Business" as well as "New Management Style Suitable for a Decentralized Network Society" and "Enhancement of Corporate Value thorough ESG Initiatives" which was publicized on Sep 28th, 2021*1*2.

1. Background

The decoupling of the world is accelerating due to COVID-19 pandemic and a remote/decentralized society is advanced. These situations make progress in digitalization and Digital Transformation (DX), on the other hand, negative aspect of digitalization such as surveillance society has appeared. In addition, our environment is dramatically changing with increasing the importance of economic security and scale of natural disasters worldwide. To respond these environmental changes, NTT refined the NTT Group medium-term management strategy to accelerate the transformation into an open global innovative new NTT with its vision "As Your Value Partner, NTT Group will aim to resolve social issues through its business activities with partners".

2. Details of Refinement of NTT Group Medium-Term Management Strategy

NTT Group will deploy its business with following transformation while responding future social economic directionality.

(1) Enhance of Domestic and Global Business

NTT Group will enhance its domestic and global business to respond advancement of digitalization/DX. NTT Group will accelerate following activities.

I.Growth and strengthening of the newly formed DOCOMO Group

II.Promotion of the IOWN development/rollout plan

III.Enhance competitiveness of global business

IV.Promote of the B2B2X model

V.Strengthening of new business

(2) Transformation to a New Management Style

Looking ahead to post Covid-19 era, the NTT Group aims to transform a new management style*1 premised on remote work by revision of rules and improvement of IT environments as well as reforming various operations.

(3) Enhancement of Corporate Value

NTT Group aims to enhance its corporate value through following activities for ESG (Environment, Society and Governance) toward achievement of Well-being society.

I.New environment and energy vision*2

II.Disaster countermeasure initiatives

III.Enhancement of shareholders' return

3. Refinement of Medium-Term Financial Targets

Medium-Term Financial Targets are refined based on refinement of NTT group medium-term management strategy as follows. (Highlighted by orange)

Target Current Target New Target (Reference)
FY2021 Plan
EPS Approx. ¥320
(FY2023)
¥370
(FY2023)
¥302
Overseas Sales (1)(2) $25B
(FY2023)

(FY2023)
$19B
Overseas Operating
Income Margin
 (1)
7%
(FY2023)
7%
(FY2023)
6%
Cost Reductions (3)
(In Fixed-Line/Mobile Access Networks)
At least
¥(800.0) billion

(FY2023)
At least
¥(1,000.0) billion

(FY2023)
¥(840.0) billion
ROIC 8%
(FY2023)
8%
(FY2023)
7.4%
Capex to Sales (4)
(Domestic Network Business)
13.5% or less
(FY2021)
13.5% or less
(FY2021)
13.5%
  1. Includes results from the global holding company, its subsidiaries and its affiliates. Overseas Operating Income excludes temporary expenses, such as M&A-related depreciation costs of intangible fixed assets.
  2. In addition to the change in accounting for some of the income, the impact of COVID-19 is also significant, so no target is set.
  3. Figures above show cumulative reductions since FY2017.
  4. Excludes NTT Communications' data centers and certain other items.

4. Reference Material

1NTT transforms to a New Management Style, Sep 28, 2021
https://group.ntt/en/newsrelease/2021/09/28/210928b.html

2NTT Group's New Environment and Energy Vision "NTT Green Innovation toward 2040", Sep 28, 2021
https://group.ntt/en/newsrelease/2021/09/28/210928a.html

About NTT

NTT believes in resolving social issues through our business operations by applying technology for good. We help clients accelerate growth and innovate for current and new business models. Our services include digital business consulting, technology and managed services for cybersecurity, applications, workplace, cloud, data center and networks, all supported by our deep industry expertise and innovation. As a top 5 global technology and business solutions provider, our diverse teams operate in 80+ countries and regions and deliver services to over 190 of them. We serve over 80% of Fortune Global 100 companies and thousands of other clients and communities around the world. For more information on NTT, visit www.global.nttOpen other window.

Media Contact

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ntt-pr@ntt.com

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