Realignment to Strengthen The Global Business of NTT Group

NTT Corporation("NTT") announced today that it will realign the NTT group's global business by making NTT, Inc., a global holding company of the NTT group, and NTT Limited ("NTT Ltd."), a wholly owned subsidiary of NTT, Inc. operating the global IT services and communications business, subsidiaries of NTT DATA Corporation ("NTT DATA"), thereby grouping the global businesses operated under NTT, Inc. and NTT Ltd. with the global business operated by NTT DATA group, and has executed with NTT DATA regarding the Realignment.

1. Background

NTT incorporated NTT, Inc. in 2018 as an intermediary holding company that coordinates global businesses. In 2019, the NTT group reorganized its global business by integrating the global businesses operated respectively by NTT Communications group, Dimension Data group (as of 2019) and NTT Security group (as of 2019) as NTT Ltd. group under NTT, Inc. This allowed for the NTT group to accelerate growth of its global businesses operated by both NTT DATA group and NTT Ltd. group as "One NTT". As a result, the NTT group has established presence as a unique global player that is able to deliver a wide range of offerings from applications to IT infrastructure. This has helped to drive growth in sales of the global business to approximately two trillion yen.
　Clients' needs have become increasingly diverse and sophisticated in recent years, driving high demand and growth for digital transformation (DX) and IT modernization services. In addition, the business environment is undergoing significant changes as competitors expand their service lines due to changes in societal demands and technologies.

2. Purpose of Conducting the Realignment

To support the increasing demands in the business environment above the NTT group is moving the global businesses for business users operated by NTT DATA and NTT Ltd. within NTT DATA. This will allow for both companies to operate in a much more coordinated manner. By leveraging the combination of NTT DATA's capabilities such as consulting and application development and NTT Ltd.'s strength in high-value-added services such as data center, global networks, and managed infrastructure services, the NTT group will be able to provide clients with new value as a whole. Also, in the long term, the NTT group will expand its innovative services utilizing NTT's IOWN (Innovative Optical and Wireless Network) technology in global markets.
　In addition, by bringing together the global talent of the NTT group, the NTT group will focus its human resources to realize more optimal and rapid decision making tailored to the needs of its business and clients in each region of the world while enhancing its global governance.

3. Outline of the Realignment

In October, 2022, NTT and NTT DATA will establish an overseas operating company jointly owned [55%] and [45%] by NTT DATA and NTT, respectively. This new venture will accelerate NTT collaboration in both strategic and tactical aspects to drive the growth of the overseas business.

Specifically, under a unified business strategy, the company will provide End-to-End^* services from infrastructure through applications. NTT's research and development will scale business in areas such as Smart World and 5G, and in the medium to long-term, the company will work to develop advanced services that can provide environmental and social value, with the IOWN concept at its core.

<Reference Diagram>

The group structure after the transition

4. Others

NTT also announced that NTT will acquire shares of NTT DATA up to 60 million shares or 100 billion yen through market transactions.

5. Reference

Timely Disclosure Materials
[582KB]

Press Conference Presentation Materials
[424KB]

^*The provision of services required for IT systems, from application development to network and IT infrastructure and system operation.