SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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NIPPON TELEGRAPH AND TELEPHONE CORPORATION
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By
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/s/ Takashi Ameshima
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Name:
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Takashi Ameshima
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Title:
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Vice President
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Investor Relations Office
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Date: May 15, 2017
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Financial Results Release
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May 15, 2017
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For the Year Ended March 31, 2017
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[U.S. GAAP
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]
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Name of registrant: Nippon Telegraph and Telephone Corporation (“NTT”) / URL http://www.ntt.co.jp/ir/
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Code No.: 9432
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Stock exchanges on which the Company’s shares are listed: Tokyo
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Representative: Hiroo Unoura, President and Chief Executive Officer
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Contact: Takashi Ameshima, Head of IR, Finance and Accounting / TEL
+81-3-6838-5481
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Scheduled date of the ordinary general meeting of shareholders: June 27, 2017
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Scheduled date of dividend payments: June 28, 2017
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Scheduled filing date of securities report: June 30, 2017
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Supplemental material on financial results: Yes
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Presentation on financial results: Yes (for institutional investors and analysts)
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1.
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Consolidated Financial Results for the Year Ended March 31, 2017 (April 1, 2016 – March 31, 2017)
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Amounts are rounded to nearest million yen.
(1) Consolidated Results of Operations
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(Millions of yen)
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Operating Revenues
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Operating Income
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Income
(Loss)
before Income Taxes
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Net Income
(Loss)
Attributable to NTT
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Year ended March 31, 2017
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11,391,016
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(1.3
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)%
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1,539,789
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14.2
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%
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1,527,769
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14.9
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%
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800,129
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8.5
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%
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Year ended March 31, 2016
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11,540,997
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4.0
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%
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1,348,149
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24.3
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%
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1,329,259
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24.6
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%
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737,738
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42.4
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%
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Note: Percentages above represent changes from the previous year.
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Basic Earnings
(Loss) per Share
Attributable to NTT
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Diluted Earnings
per Share
Attributable to NTT
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ROE
(Ratio of Net Income
Attributable to NTT)
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ROA
(Ratio of Income (Loss)
before Income Taxes
to Total
Assets)
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Operating
Income
Margin
(Ratio of Operating Income
to Operating Revenues)
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Year ended March 31, 2017
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390.94
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(yen)
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—
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(yen)
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8.9
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%
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7.2
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%
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13.5
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%
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Year ended March 31, 2016
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350.34
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(yen)
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—
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(yen)
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8.4
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%
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6.4
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%
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11.7
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%
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Notes:
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1.
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Comprehensive income (loss) attributable to NTT:
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For the year ended March 31, 2017: 860,200 million yen (103.8%)
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For the year ended March 31, 2016: 422,153 million yen ((38.9)%)
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2.
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Equity in earnings (losses) of affiliated companies:
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For the year ended March 31, 2017: (21) million yen
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For the year ended March 31, 2016: 5,772 million yen
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3.
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NTT conducted a
two-for-one
stock split of its common stock, with an effective date of
July 1, 2015. The figures for Basic Earnings (Loss) per Share Attributable to NTT have been adjusted to reflect the impact of the stock split as if the stock split had occurred at the beginning of the prior fiscal year.
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(2) Consolidated Financial Position
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(Millions of yen, except per share amounts)
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Total Assets
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Total Equity
(Net Assets)
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Shareholders’
Equity
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Equity
Ratio
(Ratio of Shareholders’
Equity to Total Assets)
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Shareholders’
Equity per Share
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March 31, 2017
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21,250,325
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11,507,756
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9,052,479
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42.6
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%
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4,491.73
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(yen)
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March 31, 2016
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21,035,931
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11,240,082
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8,833,806
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42.0
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%
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4,214.32
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(yen)
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(3) Consolidated Cash Flows
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(Millions of yen)
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Cash Flows from
Operating Activities
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Cash Flows from
Investing Activities
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Cash Flows from
Financing Activities
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Cash and Cash Equivalents
at End of Year
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Year ended March 31, 2017
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2,917,357
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(2,089,311
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(981,511
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925,213
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Year ended March 31, 2016
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2,711,845
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(1,759,778
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(707,575
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1,088,275
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2. Dividends
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Dividends per Share
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End
of
the
First
Quarter
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End
of
the
Second
Quarter
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End
of
the
Third
Quarter
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Year-end
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Total
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Total Annual
Dividends
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Payout Ratio
(Consolidated)
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Ratio of
Dividends
to
Shareholders’
Equity
(Consolidated)
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Year ended March 31, 2016
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—
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50.00
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(yen)
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—
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60.00
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(yen)
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110.00
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(yen)
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230,677
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(millions of yen)
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31.4
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%
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2.6
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%
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Year ended March 31, 2017
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—
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60.00
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(yen)
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—
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60.00
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(yen)
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120.00
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(yen)
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243,147
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(millions of yen)
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30.7
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%
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2.7
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%
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Year ending March 31, 2018 (Forecasts)
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—
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75.00
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(yen)
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—
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75.00
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(yen)
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150.00
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(yen)
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—
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36.2
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%
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—
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3. Consolidated Financial Results Forecasts for the Year Ending March 31, 2018 (April 1, 2017 – March 31,
2018)
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(Millions of yen)
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Operating Revenues
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Operating Income
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Income before
Income Taxes
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Net Income
Attributable to NTT
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Basic Earnings per Share
Attributable to NTT
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Year ending March 31, 2018
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11,750,000
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3.2
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%
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1,590,000
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3.3
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%
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1,580,000
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3.4
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%
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830,000
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3.7
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%
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414.00
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(yen)
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Note: Percentages above represent changes from the previous year.
– 1
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*Notes
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(1)
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Change in reporting entities (change in significant consolidated subsidiaries): Yes
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Newly added: One company (NTT DATA Services, L.L.C.)
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(2)
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Change of accounting policy
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i. Change due to revision of accounting standards and other regulations: None
ii. Other change: Yes
(For further details, please see “(7) Change in Significant Matters Serving as a Basis for the Preparation of Consolidated
Financial Statements” on page 21.)
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(3)
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Number of shares outstanding (common stock)
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i. Number of shares outstanding (including treasury stock) at end of
year:
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March 31, 2017: 2,096,394,470 shares
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March 31, 2016: 2,096,394,470 shares
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ii. Number of shares of treasury stock at end of year:
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March 31, 2017: 81,026,959 shares
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March 31, 2016: 255,269 shares
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iii. Weighted average number of shares outstanding:
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For the year ended March 31, 2017: 2,046,678,144 shares
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For the year ended March 31, 2016: 2,105,782,828 shares
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Note:
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NTT conducted a
two-for-one
stock split of its common stock, with an effective date of July 1,
2015. The figures for “Number of shares outstanding (common stock)” have been adjusted to reflect the impact of the stock split as if the stock split had occurred at the beginning of the prior fiscal year.
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(Reference)
Non-Consolidated
Financial Results
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For the Year Ended March 31, 2017
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[Japanese GAAP]
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1.
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Non-consolidated
Financial Results for the Year Ended March 31, 2017 (April 1, 2016 – March 31,
2017)
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Amounts are rounded off per 1 million yen.
(1)
Non-consolidated
Results of Operations
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(Millions of yen, except per share amounts)
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Operating Revenues
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Operating Income
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Recurring Profit
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Net Income
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Year ended March 31, 2017
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474,380
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(9.1
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)%
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339,686
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(11.6
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)%
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334,901
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(12.2
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)%
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288,117
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(56.8
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)%
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Year ended March 31, 2016
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521,742
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26.7
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%
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384,076
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40.2
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%
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381,487
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40.1
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%
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666,679
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19.8
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%
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Note: Percentages above represent changes from the previous year.
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Earnings
per
Share
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Diluted Earnings
per
Share
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Year ended March 31, 2017
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140.77
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(yen)
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—
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(yen)
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Year ended March 31, 2016
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316.59
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(yen)
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—
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(yen)
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Note:
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NTT conducted a
two-for-one
stock split of its common stock, with an effective date of July 1,
2015. The figures for Earnings per Share have been adjusted to reflect the impact of the stock split as if the stock split had occurred at the beginning of the prior fiscal year.
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(2)
Non-consolidated
Financial Position
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(Millions of yen, except per share amounts)
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Total Assets
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Net Assets
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Equity Ratio
(Ratio of Shareholders’
Equity to Total Assets)
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Net Assets per
Share
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March 31, 2017
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6,681,061
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4,383,510
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65.6
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%
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2,175.04
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(yen)
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March 31, 2016
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7,052,062
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4,717,924
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66.9
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%
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2,250.77
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(yen)
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(Reference) Shareholders’ equity:
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For the year ended March 31, 2017: 4,383,510 million yen
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For the year ended March 31, 2016: 4,717,924 million yen
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2.
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Non-consolidated
Financial Results Forecasts for the Year Ending March 31, 2018 (April 1, 2017
– March 31, 2018)
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(Millions of yen, except per share amounts)
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Operating Revenues
|
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Operating Income
|
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Recurring Profit
|
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Net Income
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Earnings per Share
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Year ending March 31, 2018
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662,000
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39.6
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%
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532,000
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56.6
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%
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529,000
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58.0
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%
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530,000
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84.0
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%
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264.00
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(yen)
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Note: Percentages above represent changes from the previous year.
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*
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This financial results release is not subject to the audit process.
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*
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Explanation for financial results forecasts and other notes:
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With regard to the assumptions and other related matters concerning the above estimated results, please refer to page 26.
As NTT evaluates its business performance on an annual basis, prospects on a semi-annual basis are not provided.
On Monday, May 15, 2017, NTT will hold a presentation on its financial results for institutional investors and analysts. Shortly thereafter, NTT plans to post on its website explanatory details,
along with the materials used at the presentation.
– 2
–
1. BUSINESS RESULTS
(1) Summary of Business Results
Overview of Consolidated Business Results (April 1, 2016 – March 31, 2017)
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(Billions of yen)
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|
|
|
Fiscal Year Ended
March 31, 2016
(April 1, 2015 –
March 31,
2016)
|
|
|
Fiscal Year Ended
March 31, 2017
(April 1, 2016 –
March 31,
2017)
|
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Change
|
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Percent Change
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Operating revenues
|
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11,541.0
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11,391.0
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(150.0
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)
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(1.3
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)%
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Operating expenses
|
|
|
10,192.8
|
|
|
|
9,851.2
|
|
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(341.6
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)
|
|
|
(3.4
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)%
|
|
Operating income
|
|
|
1,348.1
|
|
|
|
1,539.8
|
|
|
|
191.6
|
|
|
|
14.2
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%
|
|
Income before income taxes
|
|
|
1,329.3
|
|
|
|
1,527.8
|
|
|
|
198.5
|
|
|
|
14.9
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%
|
|
Net income attributable to NTT
|
|
|
737.7
|
|
|
|
800.1
|
|
|
|
62.4
|
|
|
|
8.5
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%
|
|
(Note):
|
The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States.
|
In the fiscal year ended March 31, 2017, a wide range of changes took place in the information and telecommunications market with
the increased spread and market penetration of devices that utilize fixed-line and mobile broadband, and improved convenience in people’s everyday lives and productivity in various industries through the emergence of new services made possible
by the evolution of technologies such as cloud services, AI, Big Data, and IoT. In addition, the role of information and telecommunications is becoming increasingly important, including strengthening security measures against increasingly
sophisticated and complex cyberattacks, strengthening natural disaster countermeasures and managing safe and secure social systems. This change can be seen on a global scale.
In light of these circumstances, NTT Group accelerated its self-transformation as a “Value Partner” and worked to place the entire NTT Group towards a profit growth track based on the
medium-term management strategy “Towards the Next Stage 2.0” formulated and announced in May 2015.
• Status of Initiatives to
Expand Global Business and Increase Overseas Profit Generation
NTT Group seeks to establish and expand its global cloud
service as a cornerstone of its business operations, and strengthened its efforts to accelerate overseas profit generation through the following initiatives.
|
|
•
|
|
In order to enhance NTT Group’s global provision of security services, NTT Group established NTT Security Corporation for the integration of NTT
Group’s specialized security technologies and service platforms.
|
|
|
•
|
|
NTT Group promoted cross-selling through collaboration among group companies through its global network, cloud migration, and IT outsourcing projects
and received orders from customers in a range of industries from various global regions, including Public Transport Victoria in Australia, as well as the finance, manufacturing, and shipping industries.
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|
•
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|
While streamlining and optimizing its services and operations in NTT Group’s global cloud business, in procurement, NTT Group has promoted the
unified specifications of procured goods and narrowing down of models to cut procurement costs, working to reform its business structure to strengthen the competitiveness of the entire NTT Group.
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• Status of Initiatives to Improve Efficiency and Enhance Profitability of Domestic Network Businesses
NTT Group worked to enhance profitability by creating high value-added services as well as optimizing capital investments and reducing
costs for its domestic network businesses.
|
|
•
|
|
Through its efforts with the “Hikari Collaboration Model” and “+d” to promote collaboration among various businesses, NTT
Group worked to create high value-added services.
|
|
|
•
|
|
In addition to simplifying and streamlining networks, NTT Group worked to increase the efficiency of capital investment by increasing the usage of
existing facilities and reducing procurement costs.
|
|
|
•
|
|
NTT Group continued to work to reduce costs by controlling marketing costs through the development of the “Hikari Collaboration Model” and by
increasing business efficiency.
|
– 3
–
In addition, in order to support the above initiatives, NTT Group worked to increase the
transparency of information regarding group management, further standardize the group’s accounting principles, and bolster cash management including overseas subsidiaries. Furthermore, through project teams formed in FY2015, NTT Group reviewed
initiatives aimed at cost reduction and generating profits.
• Status of Initiatives to Expand B2B2X Business
The Japanese government has been developing and implementing a variety of policies centered on the Olympic and Paralympic Games Tokyo
2020 and the Japanese government’s “Vitalization of Local Economies” initiatives. NTT Group plans to make use of these opportunities to accelerate migration to the B2B2X model and, together with businesses in other fields and local
governments, strengthen measures aimed at creating services that will become the standard of the next generation.
|
|
•
|
|
In the sports business, NTT Group developed its B2B2X business through collaborations with the J. League and the U.K.-based Perform Group. As a test
case, at NACK5 Stadium Omiya, the home stadium of the J. League soccer club Omiya Ardija, NTT Group implemented the creation of smart stadiums, working to create a new way to enjoy the match through fans’ smartphones and to stimulate the local
communities by mutually referring customers to nearby businesses.
|
NTT Group also began to roll out smart
stadiums in J. League stadiums nationwide, establishing
Wi-Fi
access in Yurtec Stadium Sendai as the first project.
Additionally, NTT Group launched a new sports content distribution service including video from J. League matches. NTT Group made the “DAZN for docomo” service provided to smartphone users, and
provided the “DAZN for docomo” and “DAZN” services for IP TV users through “Hikari-TV.”
|
|
•
|
|
NTT Group promoted collaboration in the entertainment field including traditional arts such as joint testing with SHOCHIKU Co., Ltd. on a collaboration
between NTT Group’s cutting-edge audiovisual recognition technology and kabuki.
|
|
|
•
|
|
In addition to NTT Group’s agreement with FANUC CORPORATION, which involves collaborative projects in the area of making factories smarter by
utilizing edge computing technology and application distribution technology, NTT Group promoted collaborations in a range of industrial fields, including initiatives to make agriculture smarter by monitoring crop-raising conditions through sensor
information, aerial drone photography, and image analysis.
|
|
|
•
|
|
In July 2016, the “Sapporo City ICT Utilization Platform Study Panel” was established with the goal of utilizing Sapporo City’s ICT to
resolve regional social issues using NTT Group’s ICT technology in fields starting with tourism and sports, and including traffic and snow control, health, and childcare. NTT Group promoted the utilization of ICT in the tourism field in Sapporo
City by collecting and analyzing big data (the flow of people and purchasing data centered on tourists) from Sapporo City and regional commercial facilities. Additionally, to establish Sapporo’s brand as a tourism and sports city, at the 2017
Sapporo Asian Winter Games held in February 2017, NTT Group proposed a new way to watch sports using cutting-edge ICT, working to invigorate sports tourism.
|
|
(Note):
|
NTT, NTT East, NTT West, NTT Communications, and NTT DOCOMO are Gold Partners (Telecommunications Services) for the Olympic and Paralympic Games Tokyo 2020.
|
• Status of Fundamental Research & Development
NTT Group pursued a range of R&D pursuant to NTT Group’s Medium-Term Management Strategy “Towards the
Next Stage 2.0.” NTT Group established the “corevo
®
” brand, a collective term for NTT
Group’s AI technology, and promoted collaboration with partners in various industries. Furthermore, in order to commercialize the results of development, NTT Group developed business plans tailored to market trends based on NTT Group’s
Comprehensive Commercialization System and worked to promote development for practical use.
|
|
•
|
|
Initiatives to Expand B2B2X Business
|
|
|
•
|
|
In the area of edge computing technology, which accomplishes the real-time and wide-ranging processing of data in the IoT age, NTT Group agreed to
collaborations with FANUC CORPORATION to further the optimization of the manufacturing field, and with TOYOTA MOTOR CORPORATION to further technological development and technological evaluation in the field of connected cars.
|
|
|
•
|
|
In partnership with Mitsubishi Heavy Industries, Ltd., NTT Group developed a prototype for a control system that automatically detects and defends
against cyberattacks on industrial equipment including public infrastructure.
|
– 4
–
|
|
•
|
|
Utilizing the “angle-free object search technology (corevo
®
),” which can recognize and search for objects photographed from any angle with a high level of precision, NTT Group implemented joint testing with
Seven & i Holdings Co., Ltd. to search for and provide information on products in convenience stores, and with Tokyo Metro Co., Ltd. within subway stations to provide current location data with photos taken of station map signs and to
provide limited-time offers through photos taken of advertising posters.
|
|
|
•
|
|
Aiming to increase manufacturing facility operating rate and product quality, NTT Group provided Hitachi Zosen Corporation with “abnormal sound
detection technology (corevo
®
),” which objectively visualizes and analyzes the characteristics of both
operating sounds and malfunctions of manufacturing facility devices.
|
|
|
•
|
|
NTT Group implemented joint practical testing among six group companies to further the realization of services using a device coordination technology
(corevo
®
) centered on communication robots.
|
|
|
•
|
|
R&D to Improve Efficiency and Enhance Profitability of Domestic Network Businesses
|
|
|
•
|
|
NTT Group developed an “operation-collaboration function,” which facilitates cost reductions by service providers through the use of the
“Hikari Collaboration Model” by cataloging the services of telecommunications operators and service providers, including competitors, and consolidating the management of multiple services from the point they are ordered through the start
of service and maintenance.
|
|
|
•
|
|
NTT Group developed software which makes high-quality and
low-cost
network services possible by using
general-purpose products utilized in data centers and other facilities.
|
|
|
•
|
|
NTT Group developed “malfunction source estimation technology (corevo
®
)” which largely reduces the time required to investigate the cause of a network malfunction by autonomously extracting the causal relationship between the
network malfunction and the alarm sent from the device.
|
|
|
•
|
|
Research & Development that Enable Highly Immersive New Experiences
|
|
|
•
|
|
NTT Group developed a training system for professional baseball players using “athlete first-person vision synthesis technology,” which
enables players to experience simulations of pitches with a high degree of realism, and carried out practical testing with RAKUTEN BASEBALL, INC. (Tohoku Rakuten Golden Eagles).
|
|
|
•
|
|
NTT Group developed MaPiece technology, which allows even those without specialized knowledge to easily collect accessibility information on steps and
stairs required to provide directions to wheelchair users, as well as 2.5D map representation technology that realizes simple relief map display that is easy to understand even for foreign visitors to Japan.
|
|
|
•
|
|
Utilizing
“Kirari!
®
” technology, which provides ultra-high presence “as if you were there”
experiences, NTT Group implemented practical testing of its overseas real-time broadcasting technology to broadcast video from a studio in Japan to the 2017 SXSW (South by Southwest) in Austin, Texas as well as broadcasting the “KABUKI LION
SHI-SHI-O:
The Adventures of the Mythical Lion show” performed in Las Vegas, Nevada by SHOCHIKU Co., Ltd. To Japan.
|
|
|
•
|
|
In order to be able to provide entirely new services that touch the senses and emotions of humans and create new
awe-inspiring
experiences in public spaces moving forward into 2020, NTT Group began joint research with the international media art research institute Ars Electronica Futurelab.
|
|
|
•
|
|
NTT Group conducted practical testing of digital signage which simultaneously delivers information at the time of disaster and provides information
based on the language and location of foreign tourists to ensure that urban functions are comfortable and safe.
|
|
|
•
|
|
Promoting Cutting-edge Research
|
|
|
•
|
|
NTT Group developed a “Quantum Neural Network” calculator based on an entirely new principle of using light to quickly solve problems which
are difficult for traditional computers, such as searching for chemical compounds in drug development.
|
|
|
•
|
|
NTT Group was the first in the world to solve the macroscopic realism problem of whether the quantum mechanical behavior of a single electron appears
in the everyday macroscopic world.
|
|
|
•
|
|
To discover how the brains of superior athletes regulate their mental state and control their bodily movements to deliver
top-level
performance, NTT Group launched the “Sports Brain Science Project” to elucidate the brain’s information processing in order to “Train the Brain to Win,” and started R&D.
|
– 5
–
• Status of Initiatives for Sustained Improvement in Corporate Value
While working to minimize medium- to long-term business risks by appropriately responding to social and environmental issues at NTT
Group, NTT Group is promoting initiatives toward sustained improvement in corporate value by making effective contributions to the resolution of social and environmental issues through NTT Group’s business activities. Taking into account the
UN’s “Sustainable Development Goals: SDGs,” NTT Group has been engaged in various activities including modifying the “NTT Group CSR Charter” in May 2016 and affirming NTT Group’s agreement with the SDGs in September
2016.
|
|
•
|
|
Status of Initiatives for Cybersecurity
|
|
|
•
|
|
While promoting cutting-edge R&D and moving forward with the development of the latest R&D results, NTT Group promoted a group-wide initiative
through the “Group CISO Committee.” Furthermore, through the newly established NTT Security Corporation, NTT Group has created a system to provide cutting-edge security technology to NTT Group’s customers. Additionally, in terms of
the nationwide issue of developing IT security engineers, NTT Group promoted human resource development within NTT Group and participated in the study panel for inter-industry human resources development, contributing to security personnel
development on a national level.
|
|
|
•
|
|
Status of Initiatives to Ensure Diverse Personnel Can Demonstrate their Talents
|
|
|
•
|
|
Recognizing diversity management as a key part of NTT Group’s management strategy, NTT Group has striven to ensure diverse personnel can
demonstrate their talents. For example, in terms of sexual minorities such as LGBT persons, in addition to receiving the highest level “GOLD” evaluation in the “PRIDE Index,” which evaluates companies’ approaches to sexual
minorities such as LGBT persons, NTT Group promoted initiatives such as clarifying that the systems including leave for marriage also apply to
same-sex
partners. Furthermore, in terms of NTT Group’s
“Work Style Reform,” NTT Group is actively promoting the usage of the teleworking and flextime systems, regardless of rank or position, to create an easier working environment for all of NTT Group’s employees.
|
|
|
•
|
|
Status of Initiatives for the Environment
|
|
|
•
|
|
In September 2016, NTT Group announced the “NTT Group Environmental Statement” and “The Eco Strategy 2030,” pledging to contribute
to lowering the environmental burden on society while contributing to adapting to climate change and preserving the ecosystem by providing ICT services and cutting-edge technology. While continuing to promote energy saving and cost cutting by
introducing cutting-edge electrical power units, NTT Group is also contributing to energy saving in society through sales of these units.
|
In addition to the above, NTT Group has taken group-wide initiatives to ensure the high stability and reliability of NTT Group’s networks. While quickly and efficiently recovering networks following
the 2016 Kumamoto Earthquake, NTT Group also provided support to those affected by the disaster by installing a temporary free
Wi-Fi
hotspot in the evacuation center.
As a result of the above efforts, NTT Group’s consolidated operating revenues for the fiscal year ended March 31, 2017 were
11,391.0 billion yen (a decrease of 1.3% from the previous fiscal year) and consolidated operating expenses were 9,851.2 billion yen (a decrease of 3.4% from the previous fiscal year). As a result, consolidated operating income was
1,539.8 billion yen (an increase of 14.2% from the previous fiscal year), consolidated income before income taxes was 1,527.8 billion yen (an increase of 14.9% from the previous fiscal year), and consolidated net income attributable to NTT
was 800.1 billion yen (an increase of 8.5% from the previous fiscal year).
The forecast for the fiscal year ending March
31, 2018 is as follows: operating revenues of 11,750.0 billion yen (an increase of 3.2% year-over-year), operating income of 1,590.0 billion yen (an increase of 3.3% year -over-year), income before income taxes of 1,580.0 billion yen
(an increase of 3.4% year-over-year), and net income attributable to NTT of 830.0 billion yen (an increase of 3.7% year-over-year).
The business results for each business segment for the consolidated fiscal year ended March 31, 2017 are as follows.
– 6
–
• Regional Communications Business Segment
Overview of Business Results by Business Segment (April 1, 2016 – March 31, 2017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
Fiscal Year Ended
March 31, 2016
(April 1, 2015 –
March 31,
2016)
|
|
|
Fiscal Year Ended
March 31, 2017
(April 1, 2016 –
March 31,
2017)
|
|
|
Change
|
|
|
Percent Change
|
|
|
Operating revenues
|
|
|
3,407.9
|
|
|
|
3,308.2
|
|
|
|
(99.6
|
)
|
|
|
(2.9
|
)%
|
|
Operating expenses
|
|
|
3,142.9
|
|
|
|
2,948.7
|
|
|
|
(194.2
|
)
|
|
|
(6.2
|
)%
|
|
Operating income
|
|
|
265.0
|
|
|
|
359.5
|
|
|
|
94.5
|
|
|
|
35.7
|
%
|
|
|
|
|
|
|
|
Number of Subscriptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of subscriptions)
|
|
|
|
|
As of March 31, 2016
|
|
|
As of March 31, 2017
|
|
|
Change
|
|
|
Percent Change
|
|
|
FLET’S Hikari (including Hikari
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration Model)
(1)
|
|
|
19,259
|
|
|
|
20,053
|
|
|
|
794
|
|
|
|
4.1
|
%
|
|
NTT East
|
|
|
10,666
|
|
|
|
11,173
|
|
|
|
507
|
|
|
|
4.8
|
%
|
|
NTT West
|
|
|
8,593
|
|
|
|
8,880
|
|
|
|
287
|
|
|
|
3.3
|
%
|
|
Hikari Collaboration Model
|
|
|
4,691
|
|
|
|
8,744
|
|
|
|
4,053
|
|
|
|
86.4
|
%
|
|
NTT East
|
|
|
3,077
|
|
|
|
5,328
|
|
|
|
2,251
|
|
|
|
73.2
|
%
|
|
NTT West
|
|
|
1,615
|
|
|
|
3,416
|
|
|
|
1,801
|
|
|
|
111.6
|
%
|
|
Hikari Denwa
|
|
|
17,374
|
|
|
|
17,759
|
|
|
|
385
|
|
|
|
2.2
|
%
|
|
NTT East
|
|
|
9,123
|
|
|
|
9,369
|
|
|
|
246
|
|
|
|
2.7
|
%
|
|
NTT West
|
|
|
8,252
|
|
|
|
8,390
|
|
|
|
139
|
|
|
|
1.7
|
%
|
Notes:
|
1.
|
Number of “FLET’S Hikari (including Hikari Collaboration Model)” subscribers includes subscribers to “B FLET’S,” “FLET’S Hikari
Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, subscribers to “B FLET’S,” “FLET’S Hikari Premium,”
“FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West and subscribers to the “Hikari Collaboration Model,” the
wholesale provision of services to service providers by NTT East and NTT West.
|
|
2.
|
The figures for Hikari Denwa indicate the number of channels (in thousands). Number of “Hikari Denwa” subscribers includes wholesale services provided to
service providers by NTT East and NTT West.
|
In the Regional Communications Business Segment, NTT Group worked
to develop its B2B2X business through the “Hikari Collaboration Model,” the wholesale provision of fiber-optic access infrastructure services, among other things, to various service providers.
• Details of Main Initiatives
|
|
•
|
|
With regard to the “Hikari Collaboration Model,” the number of service providers providing wholesale service was approximately 550 companies
at the end of the fiscal year ended March 31, 2017, as NTT Group further expanded collaborative projects with not only business operators in the communications industry, energy industry, real estate industry, and security industry, but also
business operators in diverse industries including the housing industry and media industry in the fiscal year ended March 31, 2017. Furthermore, in the housing industry, new use cases were born, including providing total lifestyle support after
home purchases, which includes a combination of this model, Home Energy Management System (HEMS) service and lifestyle-related services. As a result of these initiatives, the number of fiber-optic access service subscriptions using this model was
8.74 million.
|
|
|
•
|
|
With the development of the “Hikari Collaboration Model,” NTT Group worked to continually reduce marketing costs. Furthermore, by simplifying
and streamlining networks and further increasing the usage of existing facilities, NTT Group worked to make capital investment more efficient.
|
|
|
•
|
|
As companies and local governments are proactively promoting the use of
Wi-Fi
as a powerful information service
tool, in various regions, NTT Group continually worked to improve convenience for the increasing number of visitors to Japan by expanding the coverage area of
Wi-Fi,
resulting in the number of
Wi-Fi
area owners reaching 557.
|
– 7
–
• Number of Subscriptions for Major Services
|
|
•
|
|
FLET’S Hikari: 20.05 million subscriptions (an increase of 0.79 million subscriptions from the previous fiscal year)
|
|
|
•
|
|
(Included in the above) “Hikari Collaboration Model”: 8.74 million subscriptions (an increase of 4.05 million subscriptions from
the previous fiscal year)
|
|
|
•
|
|
Hikari Denwa: 17.76 million channels (an increase of 0.38 million channels from the previous fiscal year)
|
|
|
•
|
|
FLET’S TV: 1.52 million subscriptions (an increase of 0.09 million subscriptions from the previous fiscal year)
|
|
|
(Note):
|
The figures for “FLET’S Hikari,” “Hikari Denwa” and “FLET’S TV” include the number of subscriptions for wholesale services
provided to service providers through the use of the “Hikari Collaboration Model“ by NTT East and NTT West.
|
As a result of the above, consolidated operating revenues in the Regional Communications Business Segment for the fiscal year ended March 31, 2017 were 3,308.2 billion yen (a decrease of 2.9%
from the previous fiscal year). On the other hand, consolidated operating expenses were 2,948.7 billion yen (a decrease of 6.2% from the previous fiscal year). As a result, consolidated operating income was 359.5 billion yen (an increase
of 35.7% from the previous fiscal year).
• Long Distance and International Communications Business Segment
Overview of Business Results by Business Segment (April 1, 2016 – March 31, 2017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
Fiscal Year Ended
March 31, 2016
(April 1, 2015
–
March 31, 2016)
|
|
|
Fiscal Year Ended
March 31, 2017
(April 1, 2016
–
March 31, 2017)
|
|
|
Change
|
|
|
Percent Change
|
|
|
Operating revenues
|
|
|
2,250.9
|
|
|
|
2,129.3
|
|
|
|
(121.7
|
)
|
|
|
(5.4
|
)%
|
|
Operating expenses
|
|
|
2,154.2
|
|
|
|
2,088.4
|
|
|
|
(65.8
|
)
|
|
|
(3.1
|
)%
|
|
Operating income
|
|
|
96.7
|
|
|
|
40.8
|
|
|
|
(55.9
|
)
|
|
|
(57.8
|
)%
|
In the Long Distance and International Communications Business Segment, in addition to enhancing its
provision of seamless ICT solutions combining network and security, etc., NTT Group worked to enhance its service provision in growth areas such as cloud services and IT outsourcing.
• Details of Main Initiatives
|
|
•
|
|
To provide an ICT solution based on a more highly reliable international network to NTT Group’s enterprise clients, in October 2016 NTT Group
began operations of the “Asia Pacific Gateway,” its high-bandwidth optical submarine cable network. Additionally, to respond to demand for cloud services and data centers in various global regions, in the continually growing market of
America, in addition to launching service at its “Virginia Ashburn 2 (VA2) Data Center,” NTT Group began construction on its “Virginia Ashburn 3 (VA3) Data Center,” designed to achieve strong security and high-level energy
savings, thus proactively expanding NTT Group’s cloud platform by working to provide different variations of data centers. As a result of these initiatives, NTT Group’s data centers were ranked as top class in the world in terms of both
total floor area and potential server installation floor area according to a report by U.S. TeleGeography (published in November 2016).
|
|
|
•
|
|
NTT Group received an IT outsourcing order from major U.K. insurance provider ReAssure UK Services Limited, and began providing infrastructure services
including introduction of cloud services for the company’s servers and security oversight services.
|
• Number of
Subscriptions for Major Services
|
|
•
|
|
Number of customers for Cloud services: 9,000 customers (an increase of 700 customers from the previous fiscal year)
|
|
|
•
|
|
Hikari TV: 3.02 million subscriptions (a decrease of 0.03 million subscriptions from the previous fiscal year)
|
As a result of the above, consolidated operating revenues in the Long Distance and International Communications Business Segment for the
fiscal year ended March 31, 2017 were 2,129.3 billion yen (a decrease of 5.4% from the previous fiscal year). On the other hand, consolidated operating expenses were 2,088.4 billion yen (a decrease of 3.1% from the previous fiscal
year). As a result, consolidated operating income was 40.8 billion yen (a decrease of 57.8% from the previous fiscal year).
– 8
–
• Mobile Communications Business Segment
Overview of Business Results by Business Segment (April 1, 2016 – March 31, 2017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
Fiscal Year Ended
March 31, 2016
(April 1, 2015 –
March 31,
2016)
|
|
|
Fiscal Year Ended
March 31, 2017
(April 1, 2016 –
March 31,
2017)
|
|
|
Change
|
|
|
Percent Change
|
|
|
Operating revenues
|
|
|
4,527.1
|
|
|
|
4,584.6
|
|
|
|
57.4
|
|
|
|
1.3
|
%
|
|
Operating expenses
|
|
|
3,738.8
|
|
|
|
3,632.9
|
|
|
|
(105.8
|
)
|
|
|
(2.8
|
)%
|
|
Operating income
|
|
|
788.4
|
|
|
|
951.6
|
|
|
|
163.3
|
|
|
|
20.7
|
%
|
|
|
|
|
|
|
|
Number of Subscriptions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of subscriptions)
|
|
|
|
|
As of March 31, 2016
|
|
|
As of March 31, 2017
|
|
|
Change
|
|
|
Percent Change
|
|
|
Mobile Telecommunications Services
|
|
|
70,964
|
|
|
|
74,880
|
|
|
|
3,916
|
|
|
|
5.5
|
%
|
|
“Kake-hodai & Pake-aeru” billing plan
|
|
|
29,704
|
|
|
|
37,066
|
|
|
|
7,362
|
|
|
|
24.8
|
%
|
|
Telecommunications Services (LTE (Xi))
|
|
|
38,679
|
|
|
|
44,544
|
|
|
|
5,865
|
|
|
|
15.2
|
%
|
|
Telecommunications Services (FOMA (3G))
|
|
|
32,285
|
|
|
|
30,336
|
|
|
|
(1,949
|
)
|
|
|
(6.0
|
)%
|
Notes:
|
1.
|
Number of Mobile Telecommunications Services (including “Telecommunications Services (LTE (Xi))” and “Telecommunications Services (FOMA (3G))”)
includes Communication Module Services.
|
In the Mobile Communications Business Segment, NTT Group has worked
toward the promotion of sales of the billing plan, “Kake-hodai & Pake-aeru,” and “docomo Hikari,” promoting collaboration with various business partners and providing new value-added services to enhance profitability in
the smart life area.
• Details of Main Initiatives
|
|
•
|
|
In addition to continuing to promote the sales of its “Kake-hodai & Pake-aeru,” as a billing plan tailored to suit a customer’s
stage of life that offers more affordable rates to long-term users, in November 2016 NTT Group began offering its “docomo Child Raising Support Program” and other initiatives, working to enhance returns to NTT Group’s customers. As a
result, the number of subscriptions to “Kake-hodai & Pake-aeru” reached 37.07 million.
|
|
|
•
|
|
By utilizing the “Hikari Collaboration Model” from the Regional Communications Business Segment, NTT Group promoted the sales of the
“docomo Hikari Pack,” which bundles fiber-optic access infrastructure services, internet access service, and mobile service. As a result, the number of subscriptions to “docomo Hikari” reached 3.40 million.
|
|
|
•
|
|
In order to strengthen profitability in the Smart Life area, NTT Group pursued the “+d” initiative, which was aimed at creating new
added value through collaboration with various business partners, and expanded its content, finance, and settlement services. Specifically, NTT Group collaborated with Perform Group to begin providing the sports streaming service “DAZN for
docomo,” and worked to expand the number of member stores for NTT Group’s “d POINTs” loyalty point program.
|
As a result of the above, consolidated operating revenues in the Mobile Communications Business Segment for the fiscal year ended March 31, 2017 were 4,584.6 billion yen (an increase of 1.3%
from the previous fiscal year). On the other hand, consolidated operating expenses were 3,632.9 billion yen (a decrease of 2.8% from the previous fiscal year). As a result, consolidated operating income was 951.6 billion yen (an increase
of 20.7% from the previous fiscal year).
– 9
–
• Data Communications Business Segment
Overview of Business Results by Business Segment (April 1, 2016 – March 31, 2017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
Fiscal Year Ended
March 31, 2016
(April 1,
2015 –
March 31, 2016)
|
|
|
Fiscal Year Ended
March 31, 2017
(April 1,
2016 –
March 31, 2017)
|
|
|
Change
|
|
|
Percent Change
|
|
|
Operating revenues
|
|
|
1,616.8
|
|
|
|
1,718.7
|
|
|
|
101.9
|
|
|
|
6.3
|
%
|
|
Operating expenses
|
|
|
1,504.1
|
|
|
|
1,610.8
|
|
|
|
106.7
|
|
|
|
7.1
|
%
|
|
Operating income
|
|
|
112.7
|
|
|
|
107.9
|
|
|
|
(4.9
|
)
|
|
|
(4.3
|
)%
|
In the Data Communications Business Segment, NTT Group responded to the acceleration of its
customers’ expansion in the global market and the diversification and increased sophistication of their needs by working to expand NTT Group’s business in the global market and to expand and reliably provide a range of IT services, such as
system integration, that are responsive to the changes in the market.
• Details of Main Initiatives
|
|
•
|
|
To increase NTT Group’s presence through the acquisition of a North America-focused operating base and to enhance cloud services and BPO services,
NTT Group acquired the businesses of the Dell Services Division, which has been highly regarded by customers for providing digital solutions and BPO services tailored to the healthcare industry.
|
|
|
•
|
|
To create new finance-related services through Open Innovation, together with venture firms and regional banks, NTT Group established “BeSTA
FinTech Lab,” working to provide new services utilizing FinTech including the implementation of practical testing of information distribution services with location data.
|
|
|
•
|
|
Aiming for the expanded use of global geospatial information, creation of new markets, and the stimulation of related industries, in April 2016 NTT
Group began to offer the world’s highest-resolution “AW3D
®
Global High-resolution 3D Map”
developed with the Remote Sensing Technology Center of Japan (RESTEC) to all global land spaces.
|
As a
result of the above, consolidated operating revenues in the Data Communications Business Segment for the fiscal year ended March 31, 2017 were 1,718.7 billion yen (an increase of 6.3% from the previous fiscal year). On the other hand,
consolidated operating expenses were 1,610.8 billion yen (an increase of 7.1% from the previous fiscal year). As a result, consolidated operating income was 107.9 billion yen (a decrease of 4.3% from the previous fiscal year).
• Other Business Segment
Overview
of Business Results by Business Segment (April 1, 2016 – March 31, 2017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
Fiscal Year Ended
March 31, 2016
(April 1, 2015
–
March 31, 2016)
|
|
|
Fiscal Year Ended
March 31, 2017
(April 1, 2016
–
March 31, 2017)
|
|
|
Change
|
|
|
Percent Change
|
|
|
Operating revenues
|
|
|
1,294.5
|
|
|
|
1,282.3
|
|
|
|
(12.2
|
)
|
|
|
(0.9
|
)%
|
|
Operating expenses
|
|
|
1,220.4
|
|
|
|
1,205.0
|
|
|
|
(15.5
|
)
|
|
|
(1.3
|
)%
|
|
Operating income
|
|
|
74.0
|
|
|
|
77.3
|
|
|
|
3.3
|
|
|
|
4.4
|
%
|
In the Other Business Segment, NTT Group mainly provided services related to the real estate business,
finance business, construction and electric power business, and system development business.
• Details of Main Initiatives
NTT Group pursued its office and retail operations centered on office buildings and commercial facilities and its residential operations principally through the “Wellith” brand. Furthermore, NTT
Group utilized its
know-how
developed in these operations to pursue global and hotels & resorts businesses.
– 10
–
NTT Group provided financial services such as leasing, installation payment, and other finance areas concentrating on information-related equipment, billing and collection services for telecommunication
service bills, and credit card transaction settlement services.
|
|
•
|
|
Construction and Electric Power Business
|
By combining and utilizing NTT Group’s technology in “ICT, energy, and construction” to the fullest extent, NTT Group designed and built large-scale solar power generation systems and data
centers.
|
|
•
|
|
System Development Business
|
To provide optimized, high-quality ICT services, NTT Group worked to develop network operation systems and application services.
As a result of the above, consolidated operating revenues in the Other Business Segment for the fiscal year ended March 31, 2017 were 1,282.3 billion yen (a decrease of 0.9% from the previous
fiscal year). On the other hand, consolidated operating expenses were 1,205.0 billion yen (a decrease of 1.3% from the previous fiscal year). As a result, consolidated operating income was 77.3 billion yen (an increase of 4.4% from the
previous fiscal year).
(2) Summary of Financial Position
Net cash provided by operating activities for the fiscal year ended March 31, 2017 increased by 205.5 billion yen (7.6%) from
the previous fiscal year to 2,917.4 billion yen. This increase was due to, among other factors, an increase in collection of accounts receivable.
Net cash used in investing activities increased by 329.5 billion yen (18.7%) from the previous fiscal year to 2,089.3 billion yen. This increase was due to, among other factors, an increase in
payments for capital investments.
Net cash used in financing activities increased by 273.9 billion yen (38.7%) from the
previous fiscal year to 981.5 billion yen. This increase was due to, among other factors, an increase in stock repurchases by NTT and an increase in stock repurchases by NTT’s subsidiaries.
As a result of the above, NTT Group’s consolidated cash and cash equivalents as of March 31, 2017 totaled 925.2 billion
yen, a decrease of 163.1 billion yen (15.0%) from the end of the previous fiscal year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
Fiscal Year
Ended
March 31, 2016
(April 1, 2015
–
March 31, 2016)
|
|
|
Fiscal Year
Ended
March 31, 2017
(April 1, 2016
–
March 31, 2017)
|
|
|
Change
|
|
|
Percent Change
|
|
|
Cash flows provided by operating activities
|
|
|
2,711.8
|
|
|
|
2,917.4
|
|
|
|
205.5
|
|
|
|
7.6
|
%
|
|
Cash flows used in investing activities
|
|
|
(1,759.8
|
)
|
|
|
(2,089.3
|
)
|
|
|
(329.5
|
)
|
|
|
(18.7
|
)%
|
|
Cash flows used in financing activities
|
|
|
(707.6
|
)
|
|
|
(981.5
|
)
|
|
|
(273.9
|
)
|
|
|
(38.7
|
)%
|
|
Cash and cash equivalents at the end of year
|
|
|
1,088.3
|
|
|
|
925.2
|
|
|
|
(163.1
|
)
|
|
|
(15.0
|
)%
|
2. BASIC APPROACH TO THE SELECTION OF ACCOUNTING STANDARDS
NTT Group is considering adopting International Financial Reporting Standards (“IFRS”) beginning with the three months ending
June 30, 2018 in order to, among other things, improve the international comparability of its financial information in the capital markets and increase the efficiency of its financial reporting.
– 11
–
3. CONSOLIDATED FINANCIAL STATEMENTS
(1) CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
|
March 31,
2016
|
|
|
March 31,
2017
|
|
|
Increase
(Decrease)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
¥
|
1,088,275
|
|
|
¥
|
925,213
|
|
|
¥
|
(163,062
|
)
|
|
Short-term investments
|
|
|
33,076
|
|
|
|
63,844
|
|
|
|
30,768
|
|
|
Notes and accounts receivable, trade
|
|
|
2,733,116
|
|
|
|
2,699,708
|
|
|
|
(33,408
|
)
|
|
Allowance for doubtful accounts
|
|
|
(45,236
|
)
|
|
|
(48,626
|
)
|
|
|
(3,390
|
)
|
|
Accounts receivable, other
|
|
|
473,192
|
|
|
|
505,145
|
|
|
|
31,953
|
|
|
Inventories
|
|
|
414,581
|
|
|
|
365,379
|
|
|
|
(49,202
|
)
|
|
Prepaid expenses and other current assets
|
|
|
469,529
|
|
|
|
573,170
|
|
|
|
103,641
|
|
|
Deferred income taxes
|
|
|
260,446
|
|
|
|
228,590
|
|
|
|
(31,856
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
5,426,979
|
|
|
|
5,312,423
|
|
|
|
(114,556
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications equipment
|
|
|
11,586,812
|
|
|
|
11,046,115
|
|
|
|
(540,697
|
)
|
|
Telecommunications service lines
|
|
|
15,870,097
|
|
|
|
16,064,732
|
|
|
|
194,635
|
|
|
Buildings and structures
|
|
|
6,069,437
|
|
|
|
6,147,869
|
|
|
|
78,432
|
|
|
Machinery, vessels and tools
|
|
|
1,996,898
|
|
|
|
2,032,389
|
|
|
|
35,491
|
|
|
Land
|
|
|
1,273,209
|
|
|
|
1,292,685
|
|
|
|
19,476
|
|
|
Construction in progress
|
|
|
382,196
|
|
|
|
421,819
|
|
|
|
39,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37,178,649
|
|
|
|
37,005,609
|
|
|
|
(173,040
|
)
|
|
Accumulated depreciation
|
|
|
(27,626,728
|
)
|
|
|
(27,286,588
|
)
|
|
|
340,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net property, plant and equipment
|
|
|
9,551,921
|
|
|
|
9,719,021
|
|
|
|
167,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments and other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in affiliated companies
|
|
|
515,716
|
|
|
|
484,596
|
|
|
|
(31,120
|
)
|
|
Marketable securities and other investments
|
|
|
474,247
|
|
|
|
495,290
|
|
|
|
21,043
|
|
|
Goodwill
|
|
|
1,229,208
|
|
|
|
1,314,645
|
|
|
|
85,437
|
|
|
Software
|
|
|
1,212,482
|
|
|
|
1,209,485
|
|
|
|
(2,997
|
)
|
|
Other intangible assets
|
|
|
391,977
|
|
|
|
453,918
|
|
|
|
61,941
|
|
|
Other assets
|
|
|
1,486,840
|
|
|
|
1,492,076
|
|
|
|
5,236
|
|
|
Deferred income taxes
|
|
|
746,561
|
|
|
|
768,871
|
|
|
|
22,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investments and other assets
|
|
|
6,057,031
|
|
|
|
6,218,881
|
|
|
|
161,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
¥
|
21,035,931
|
|
|
¥
|
21,250,325
|
|
|
¥
|
214,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 12
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
|
March 31,
2016
|
|
|
March 31,
2017
|
|
|
Increase
(Decrease)
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
¥
|
129,656
|
|
|
¥
|
227,207
|
|
|
¥
|
97,551
|
|
|
Current portion of long-term debt
|
|
|
476,777
|
|
|
|
681,904
|
|
|
|
205,127
|
|
|
Accounts payable, trade
|
|
|
1,572,797
|
|
|
|
1,612,996
|
|
|
|
40,199
|
|
|
Current portion of obligations under capital leases
|
|
|
14,711
|
|
|
|
14,430
|
|
|
|
(281
|
)
|
|
Accrued payroll
|
|
|
430,248
|
|
|
|
443,308
|
|
|
|
13,060
|
|
|
Accrued taxes on income
|
|
|
249,356
|
|
|
|
239,755
|
|
|
|
(9,601
|
)
|
|
Accrued consumption tax
|
|
|
83,481
|
|
|
|
75,083
|
|
|
|
(8,398
|
)
|
|
Advances received
|
|
|
290,132
|
|
|
|
324,342
|
|
|
|
34,210
|
|
|
Other
|
|
|
493,970
|
|
|
|
512,368
|
|
|
|
18,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
3,741,128
|
|
|
|
4,131,393
|
|
|
|
390,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt (excluding current portion)
|
|
|
3,546,203
|
|
|
|
3,168,478
|
|
|
|
(377,725
|
)
|
|
Obligations under capital leases (excluding current portion)
|
|
|
27,630
|
|
|
|
25,568
|
|
|
|
(2,062
|
)
|
|
Liability for employees’ retirement benefits
|
|
|
1,688,611
|
|
|
|
1,599,381
|
|
|
|
(89,230
|
)
|
|
Accrued liabilities for point programs
|
|
|
89,003
|
|
|
|
103,047
|
|
|
|
14,044
|
|
|
Deferred income taxes
|
|
|
166,547
|
|
|
|
166,751
|
|
|
|
204
|
|
|
Other
|
|
|
491,630
|
|
|
|
497,132
|
|
|
|
5,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
6,009,624
|
|
|
|
5,560,357
|
|
|
|
(449,267
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests
|
|
|
45,097
|
|
|
|
50,819
|
|
|
|
5,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NTT shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, no par value
|
|
|
937,950
|
|
|
|
937,950
|
|
|
|
—
|
|
|
Additional
paid-in
capital
|
|
|
2,879,560
|
|
|
|
2,862,035
|
|
|
|
(17,525
|
)
|
|
Retained earnings
|
|
|
5,074,234
|
|
|
|
5,626,155
|
|
|
|
551,921
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(57,055
|
)
|
|
|
1,562
|
|
|
|
58,617
|
|
|
Treasury stock, at cost
|
|
|
(883
|
)
|
|
|
(375,223
|
)
|
|
|
(374,340
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total NTT shareholders’ equity
|
|
|
8,833,806
|
|
|
|
9,052,479
|
|
|
|
218,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests
|
|
|
2,406,276
|
|
|
|
2,455,277
|
|
|
|
49,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
11,240,082
|
|
|
|
11,507,756
|
|
|
|
267,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
¥
|
21,035,931
|
|
|
¥
|
21,250,325
|
|
|
¥
|
214,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 13
–
(2) CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEAR ENDED MARCH 31
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
|
2016
|
|
|
2017
|
|
|
Increase
(Decrease)
|
|
|
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed voice related services
|
|
¥
|
1,329,963
|
|
|
¥
|
1,233,885
|
|
|
¥
|
(96,078
|
)
|
|
Mobile voice related services
|
|
|
837,818
|
|
|
|
865,293
|
|
|
|
27,475
|
|
|
IP / packet communications services
|
|
|
3,757,846
|
|
|
|
3,808,972
|
|
|
|
51,126
|
|
|
Sale of telecommunications equipment
|
|
|
953,022
|
|
|
|
806,493
|
|
|
|
(146,529
|
)
|
|
System integration
|
|
|
3,063,501
|
|
|
|
3,041,587
|
|
|
|
(21,914
|
)
|
|
Other
|
|
|
1,598,847
|
|
|
|
1,634,786
|
|
|
|
35,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,540,997
|
|
|
|
11,391,016
|
|
|
|
(149,981
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services (excluding items shown separately below)
|
|
|
2,458,057
|
|
|
|
2,487,588
|
|
|
|
29,531
|
|
|
Cost of equipment sold (excluding items shown separately below)
|
|
|
970,478
|
|
|
|
879,725
|
|
|
|
(90,753
|
)
|
|
Cost of system integration (excluding items shown separately below)
|
|
|
2,197,506
|
|
|
|
2,161,007
|
|
|
|
(36,499
|
)
|
|
Depreciation and amortization
|
|
|
1,766,325
|
|
|
|
1,462,235
|
|
|
|
(304,090
|
)
|
|
Impairment losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
4,719
|
|
|
|
53,294
|
|
|
|
48,575
|
|
|
Other
|
|
|
28,002
|
|
|
|
20,558
|
|
|
|
(7,444
|
)
|
|
Selling, general and administrative expenses
|
|
|
2,767,761
|
|
|
|
2,786,820
|
|
|
|
19,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,192,848
|
|
|
|
9,851,227
|
|
|
|
(341,621
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
1,348,149
|
|
|
|
1,539,789
|
|
|
|
191,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and amortization of bond discounts and issue costs
|
|
|
(41,670
|
)
|
|
|
(37,761
|
)
|
|
|
3,909
|
|
|
Interest income
|
|
|
17,708
|
|
|
|
17,753
|
|
|
|
45
|
|
|
Other, net
|
|
|
5,072
|
|
|
|
7,988
|
|
|
|
2,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(18,890
|
)
|
|
|
(12,020
|
)
|
|
|
6,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes and equity in earnings (losses) of affiliated companies
|
|
|
1,329,259
|
|
|
|
1,527,769
|
|
|
|
198,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
457,674
|
|
|
|
472,711
|
|
|
|
15,037
|
|
|
Deferred
|
|
|
(102,849
|
)
|
|
|
(4,341
|
)
|
|
|
98,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
354,825
|
|
|
|
468,370
|
|
|
|
113,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before equity in earnings (losses) of affiliated companies
|
|
|
974,434
|
|
|
|
1,059,399
|
|
|
|
84,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings (losses) of affiliated companies
|
|
|
5,772
|
|
|
|
(21
|
)
|
|
|
(5,793
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
980,206
|
|
|
|
1,059,378
|
|
|
|
79,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less – Net income attributable to noncontrolling interests
|
|
|
242,468
|
|
|
|
259,249
|
|
|
|
16,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to NTT
|
|
¥
|
737,738
|
|
|
¥
|
800,129
|
|
|
¥
|
62,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share of common stock*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding (Shares)
|
|
|
2,105,782,828
|
|
|
|
2,046,678,144
|
|
|
|
|
|
|
Net income attributable to NTT (Yen)
|
|
¥
|
350.34
|
|
|
¥
|
390.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
“Per share of common stock” figures for the fiscal year ended March 31, 2016 have been adjusted to reflect the
two-for-one
stock split.
|
– 14
–
Consolidated Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
|
2016
|
|
|
2017
|
|
|
Increase
(Decrease)
|
|
|
Net income
|
|
¥
|
980,206
|
|
|
¥
|
1,059,378
|
|
|
¥
|
79,172
|
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on securities
|
|
|
(32,960
|
)
|
|
|
12,308
|
|
|
|
45,268
|
|
|
Unrealized gain (loss) on derivative instruments
|
|
|
(4,079
|
)
|
|
|
495
|
|
|
|
4,574
|
|
|
Foreign currency translation adjustments
|
|
|
(115,599
|
)
|
|
|
(24,657
|
)
|
|
|
90,942
|
|
|
Pension liability adjustments
|
|
|
(208,644
|
)
|
|
|
91,034
|
|
|
|
299,678
|
|
|
Total other comprehensive income (loss)
|
|
|
(361,282
|
)
|
|
|
79,180
|
|
|
|
440,462
|
|
|
Total comprehensive income (loss)
|
|
|
618,924
|
|
|
|
1,138,558
|
|
|
|
519,634
|
|
|
Less – Comprehensive income attributable to noncontrolling interests
|
|
|
196,771
|
|
|
|
278,358
|
|
|
|
81,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) attributable to NTT
|
|
¥
|
422,153
|
|
|
¥
|
860,200
|
|
|
¥
|
438,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 15
–
(3) CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEAR ENDED MARCH 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
|
NTT shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
Additional
paid-in
capital
|
|
|
Retained
earnings
|
|
|
Accumulated
other
comprehensive
income (loss)
|
|
|
Treasury
stock, at
cost
|
|
|
Total
|
|
|
Noncontrolling
interests
|
|
|
Total
Equity
|
|
|
At beginning of year
|
|
¥
|
937,950
|
|
|
¥
|
2,846,723
|
|
|
¥
|
5,126,657
|
|
|
¥
|
268,232
|
|
|
¥
|
(497,702
|
)
|
|
¥
|
8,681,860
|
|
|
¥
|
2,367,950
|
|
|
¥
|
11,049,810
|
|
|
Adjustments due to change in fiscal year end of consolidated subsidiaries
|
|
|
|
|
|
|
|
|
|
|
700
|
|
|
|
(9,702
|
)
|
|
|
|
|
|
|
(9,002
|
)
|
|
|
(595
|
)
|
|
|
(9,597
|
)
|
|
At beginning of year (as adjusted)
|
|
|
937,950
|
|
|
|
2,846,723
|
|
|
|
5,127,357
|
|
|
|
258,530
|
|
|
|
(497,702
|
)
|
|
|
8,672,858
|
|
|
|
2,367,355
|
|
|
|
11,040,213
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
737,738
|
|
|
|
|
|
|
|
|
|
|
|
737,738
|
|
|
|
241,075
|
|
|
|
978,813
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(315,585
|
)
|
|
|
|
|
|
|
(315,585
|
)
|
|
|
(44,749
|
)
|
|
|
(360,334
|
)
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
(200,182
|
)
|
|
|
|
|
|
|
|
|
|
|
(200,182
|
)
|
|
|
(105,568
|
)
|
|
|
(305,750
|
)
|
|
Changes in NTT’s ownership interest in subsidiaries
|
|
|
|
|
|
|
28,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28,666
|
|
|
|
(51,837
|
)
|
|
|
(23,171
|
)
|
|
Stock compensation transactions
|
|
|
|
|
|
|
4,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,171
|
|
|
|
|
|
|
|
4,171
|
|
|
Acquisition of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(93,886
|
)
|
|
|
(93,886
|
)
|
|
|
|
|
|
|
(93,886
|
)
|
|
Resale of treasury stock
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
26
|
|
|
|
|
|
|
|
26
|
|
|
Cancellation of treasury stock
|
|
|
|
|
|
|
(8
|
)
|
|
|
(590,679
|
)
|
|
|
|
|
|
|
590,687
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
At end of year
|
|
¥
|
937,950
|
|
|
¥
|
2,879,560
|
|
|
¥
|
5,074,234
|
|
|
¥
|
(57,055
|
)
|
|
¥
|
(883
|
)
|
|
¥
|
8,833,806
|
|
|
¥
|
2,406,276
|
|
|
¥
|
11,240,082
|
|
– 16
–
YEAR ENDED MARCH 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
|
NTT shareholders’ equity
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
Additional
paid-in
capital
|
|
|
Retained
earnings
|
|
|
Accumulated
other
comprehensive
income (loss)
|
|
|
Treasury
stock,
at
cost
|
|
|
Total
|
|
|
Noncontrolling
interests
|
|
|
Total
Equity
|
|
|
At beginning of year
|
|
¥
|
937,950
|
|
|
¥
|
2,879,560
|
|
|
¥
|
5,074,234
|
|
|
¥
|
(57,055
|
)
|
|
¥
|
(883
|
)
|
|
¥
|
8,833,806
|
|
|
¥
|
2,406,276
|
|
|
¥
|
11,240,082
|
|
|
Adjustments due to change in fiscal year end of consolidated subsidiaries
|
|
|
|
|
|
|
|
|
|
|
(214
|
)
|
|
|
(1,454
|
)
|
|
|
|
|
|
|
(1,668
|
)
|
|
|
(1,408
|
)
|
|
|
(3,076
|
)
|
|
At beginning of year (as adjusted)
|
|
|
937,950
|
|
|
|
2,879,560
|
|
|
|
5,074,020
|
|
|
|
(58,509
|
)
|
|
|
(883
|
)
|
|
|
8,832,138
|
|
|
|
2,404,868
|
|
|
|
11,237,006
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
800,129
|
|
|
|
|
|
|
|
|
|
|
|
800,129
|
|
|
|
257,593
|
|
|
|
1,057,722
|
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60,071
|
|
|
|
|
|
|
|
60,071
|
|
|
|
20,389
|
|
|
|
80,460
|
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
(247,994
|
)
|
|
|
|
|
|
|
|
|
|
|
(247,994
|
)
|
|
|
(113,167
|
)
|
|
|
(361,161
|
)
|
|
Changes in NTT’s ownership interest in subsidiaries
|
|
|
|
|
|
|
(18,700
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(18,700
|
)
|
|
|
(114,406
|
)
|
|
|
(133,106
|
)
|
|
Stock compensation transactions
|
|
|
|
|
|
|
1,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,175
|
|
|
|
|
|
|
|
1,175
|
|
|
Acquisition of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(374,348
|
)
|
|
|
(374,348
|
)
|
|
|
|
|
|
|
(374,348
|
)
|
|
Resale of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
8
|
|
|
|
|
|
|
|
8
|
|
|
At end of year
|
|
¥
|
937,950
|
|
|
¥
|
2,862,035
|
|
|
¥
|
5,626,155
|
|
|
¥
|
1,562
|
|
|
¥
|
(375,223
|
)
|
|
¥
|
9,052,479
|
|
|
¥
|
2,455,277
|
|
|
¥
|
11,507,756
|
|
– 17
–
(4) CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED MARCH 31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
|
2016
|
|
|
2017
|
|
|
Increase
(Decrease)
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
¥
|
980,206
|
|
|
¥
|
1,059,378
|
|
|
¥
|
79,172
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
1,766,325
|
|
|
|
1,462,235
|
|
|
|
(304,090
|
)
|
|
Impairment losses
|
|
|
32,721
|
|
|
|
73,852
|
|
|
|
41,131
|
|
|
Deferred taxes
|
|
|
(102,849
|
)
|
|
|
(4,341
|
)
|
|
|
98,508
|
|
|
Losses on disposals of property, plant and equipment
|
|
|
107,474
|
|
|
|
105,790
|
|
|
|
(1,684
|
)
|
|
Gains on sales of property, plant and equipment
|
|
|
(20,364
|
)
|
|
|
(15,633
|
)
|
|
|
4,731
|
|
|
Equity in (earnings) losses of affiliated companies
|
|
|
(5,772
|
)
|
|
|
21
|
|
|
|
5,793
|
|
|
(Increase) decrease in notes and accounts receivable, trade
|
|
|
(72,575
|
)
|
|
|
63,842
|
|
|
|
136,417
|
|
|
(Increase) decrease in inventories
|
|
|
(47,569
|
)
|
|
|
(731
|
)
|
|
|
46,838
|
|
|
(Increase) decrease in other current assets
|
|
|
(63,107
|
)
|
|
|
(30,143
|
)
|
|
|
32,964
|
|
|
Increase (decrease) in accounts payable, trade and accrued payroll
|
|
|
(34,539
|
)
|
|
|
52,872
|
|
|
|
87,411
|
|
|
Increase (decrease) in accrued consumption tax
|
|
|
(64,596
|
)
|
|
|
(7,258
|
)
|
|
|
57,338
|
|
|
Increase (decrease) in advances received
|
|
|
46,191
|
|
|
|
36,925
|
|
|
|
(9,266
|
)
|
|
Increase (decrease) in accrued taxes on income
|
|
|
124,905
|
|
|
|
(8,931
|
)
|
|
|
(133,836
|
)
|
|
Increase (decrease) in other current liabilities
|
|
|
8,198
|
|
|
|
8,934
|
|
|
|
736
|
|
|
Increase (decrease) in liability for employees’ retirement benefits
|
|
|
49,360
|
|
|
|
7,133
|
|
|
|
(42,227
|
)
|
|
Increase (decrease) in other long-term liabilities
|
|
|
(1,965
|
)
|
|
|
41,785
|
|
|
|
43,750
|
|
|
Other
|
|
|
9,801
|
|
|
|
71,627
|
|
|
|
61,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
¥
|
2,711,845
|
|
|
¥
|
2,917,357
|
|
|
¥
|
205,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 18
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
|
2016
|
|
|
2017
|
|
|
Increase
(Decrease)
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for property, plant and equipment
|
|
¥
|
(1,265,622
|
)
|
|
¥
|
(1,301,697
|
)
|
|
¥
|
(36,075
|
)
|
|
Payments for intangibles
|
|
|
(371,924
|
)
|
|
|
(400,110
|
)
|
|
|
(28,186
|
)
|
|
Proceeds from sales of property, plant and equipment
|
|
|
83,521
|
|
|
|
24,920
|
|
|
|
(58,601
|
)
|
|
Payments for purchases of
non-current
investments
|
|
|
(56,641
|
)
|
|
|
(40,344
|
)
|
|
|
16,297
|
|
|
Proceeds from sales and redemptions of
non-current
investments
|
|
|
57,173
|
|
|
|
58,835
|
|
|
|
1,662
|
|
|
Acquisitions of subsidiaries, net of cash acquired
|
|
|
(120,596
|
)
|
|
|
(329,005
|
)
|
|
|
(208,409
|
)
|
|
Payments for purchases of short-term investments
|
|
|
(26,521
|
)
|
|
|
(178,939
|
)
|
|
|
(152,418
|
)
|
|
Proceeds from redemptions of short-term investments
|
|
|
23,095
|
|
|
|
146,132
|
|
|
|
123,037
|
|
|
Other
|
|
|
(82,263
|
)
|
|
|
(69,103
|
)
|
|
|
13,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(1,759,778
|
)
|
|
|
(2,089,311
|
)
|
|
|
(329,533
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
|
398,348
|
|
|
|
320,464
|
|
|
|
(77,884
|
)
|
|
Payments for settlement of long-term debt
|
|
|
(449,025
|
)
|
|
|
(485,612
|
)
|
|
|
(36,587
|
)
|
|
Proceeds from issuance of short-term debt
|
|
|
4,460,110
|
|
|
|
4,987,795
|
|
|
|
527,685
|
|
|
Payments for settlement of short-term debt
|
|
|
(4,659,686
|
)
|
|
|
(4,897,024
|
)
|
|
|
(237,338
|
)
|
|
Dividends paid
|
|
|
(200,182
|
)
|
|
|
(247,994
|
)
|
|
|
(47,812
|
)
|
|
Proceeds from sale of (payments for acquisition of) treasury stock, net
|
|
|
(93,924
|
)
|
|
|
(374,436
|
)
|
|
|
(280,512
|
)
|
|
Acquisitions of shares of subsidiaries from noncontrolling interests
|
|
|
(15,718
|
)
|
|
|
(155,905
|
)
|
|
|
(140,187
|
)
|
|
Other
|
|
|
(147,498
|
)
|
|
|
(128,799
|
)
|
|
|
18,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(707,575
|
)
|
|
|
(981,511
|
)
|
|
|
(273,936
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(7,419
|
)
|
|
|
(6,959
|
)
|
|
|
460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
237,073
|
|
|
|
(160,424
|
)
|
|
|
(397,497
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
849,174
|
|
|
|
1,088,275
|
|
|
|
239,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents due to change in fiscal year end of consolidated subsidiaries
|
|
|
2,028
|
|
|
|
(2,638
|
)
|
|
|
(4,666
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
|
¥
|
1,088,275
|
|
|
¥
|
925,213
|
|
|
¥
|
(163,062
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 19
–
(5)
Going Concern Assumption
None
(6)
Significant Matters Serving as a Basis for the Preparation of Consolidated Financial Statements
The consolidated financial statements of NTT have been prepared in conformity with accounting principles generally accepted in the United States of America (Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification (“ASC”), etc.).
Principal Accounting Policies, etc.
Marketable Securities
ASC320, “Investments – Debt and Equity Securities” applies.
Inventories
Inventories are stated at the lower of cost or market. The
cost of telecommunications equipment to be sold is determined by the
first-in
first-out
method.
Property, Plant and Equipment
Property, plant and equipment are stated at
cost. Depreciation is computed principally using the straight-line method.
Goodwill, Software and Other Intangible Assets
ASC350, “Intangibles – Goodwill and Other” applies.
Liability for Employees’ Retirement Benefits
ASC715,
“Compensation – Retirement Benefits” applies.
Derivative Financial Instruments
ASC815, “Derivatives and Hedging” applies.
Income Taxes
Income taxes are computed based on income before income taxes
in the consolidated statements of income. According to the asset and liability approach, the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities and of operating loss
carryforwards are recognized as deferred tax assets or liabilities.
– 20
–
(7)
Change in Significant Matters Serving as a Basis for the Preparation
of Consolidated Financial Statements
Change in depreciation method
NTT and its subsidiaries in Japan traditionally used the declining-balance method for calculating depreciation of property, plant and
equipment. Effective April 1, 2016, NTT and its subsidiaries adopted the straight-line method of depreciation.
As NTT
Group plans to complete the expansion of its service areas for fiber-optic services and LTE services in the network business, it has been shifting the focus of its capital investments to improving the efficiency in using facilities while maintaining
the current functionality. With respect to network services, NTT has started providing the “Hikari Collaboration Model,” the wholesale provision of fiber-optic access services, which can be used by customers of both fixed-line
communications services and mobile communications services in the long-term. Through these efforts, NTT expects the stable usage of property, plant and equipment going forward.
For these reasons, NTT believes that the straight-line depreciation method better reflects the pattern of consumption of the future
benefits to be derived from those assets being depreciated.
The effect of the change in the depreciation method is recognized
prospectively as a change in the accounting estimate pursuant to FASB
ASC-250,
“Accounting Changes and Error Corrections.”
In line with the change in the depreciation method, NTT reviewed the residual carrying amount of property, plant and equipment and other necessary items and made changes where necessary.
As a result of the change in the depreciation method, depreciation expenses on a consolidated basis for the fiscal year ended
March 31, 2017 decreased by ¥244,177 million. Consolidated net income attributable to NTT and consolidated net income attributable to NTT per share for the fiscal year ended March 31, 2017 increased by ¥132,222 million and
¥64.60, respectively.
Change in Fiscal Year End of Certain Subsidiaries
As of April 1, 2016, certain of NTT’s consolidated subsidiaries changed their fiscal year ends from December 31 to
March 31, thereby eliminating a three-month lag between their fiscal year ends and NTT’s fiscal year end in NTT’s consolidated financial statements. The elimination of this lag was applied as a change in accounting policy. NTT did not
make any retrospective adjustments to its financial statements as these changes did not have a material impact on the consolidated financial statements for the fiscal year ended March 31, 2016. As a result of this change, NTT’s retained
earnings, accumulated other comprehensive income (loss) and noncontrolling interests have decreased by ¥214 million, ¥1,454 million and ¥1,408 million, respectively, in each case as of the beginning of the current fiscal
year. In addition, the change in cash and cash equivalents resulting from this change in fiscal year end is presented in the consolidated statements of cash flows under “Increase (decrease) in cash and cash equivalents due to change in fiscal
year end of consolidated subsidiaries.”
– 21
–
(8)
Business Segments
1. Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase (Decrease)
|
|
|
Regional communications business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers
|
|
¥
|
2,908,249
|
|
|
¥
|
2,736,664
|
|
|
¥
|
(171,585
|
)
|
|
Intersegment
|
|
|
499,604
|
|
|
|
571,542
|
|
|
|
71,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
3,407,853
|
|
|
|
3,308,206
|
|
|
|
(99,647
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-distance and international communications business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers
|
|
|
2,161,391
|
|
|
|
2,040,209
|
|
|
|
(121,182
|
)
|
|
Intersegment
|
|
|
89,532
|
|
|
|
89,055
|
|
|
|
(477
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
2,250,923
|
|
|
|
2,129,264
|
|
|
|
(121,659
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile communications business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers
|
|
|
4,483,666
|
|
|
|
4,535,829
|
|
|
|
52,163
|
|
|
Intersegment
|
|
|
43,459
|
|
|
|
48,723
|
|
|
|
5,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
4,527,125
|
|
|
|
4,584,552
|
|
|
|
57,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Data communications business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers
|
|
|
1,512,842
|
|
|
|
1,609,163
|
|
|
|
96,321
|
|
|
Intersegment
|
|
|
103,994
|
|
|
|
109,558
|
|
|
|
5,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,616,836
|
|
|
|
1,718,721
|
|
|
|
101,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customers
|
|
|
474,849
|
|
|
|
469,151
|
|
|
|
(5,698
|
)
|
|
Intersegment
|
|
|
819,617
|
|
|
|
813,120
|
|
|
|
(6,497
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,294,466
|
|
|
|
1,282,271
|
|
|
|
(12,195
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Elimination
|
|
|
(1,556,206
|
)
|
|
|
(1,631,998
|
)
|
|
|
(75,792
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated total
|
|
¥
|
11,540,997
|
|
|
¥
|
11,391,016
|
|
|
¥
|
(149,981
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 22
–
2. Segment profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase (Decrease)
|
|
|
Segment profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional communications business
|
|
¥
|
264,957
|
|
|
¥
|
359,491
|
|
|
¥
|
94,534
|
|
|
Long-distance and international communications business
|
|
|
96,688
|
|
|
|
40,836
|
|
|
|
(55,852
|
)
|
|
Mobile communications business
|
|
|
788,362
|
|
|
|
951,634
|
|
|
|
163,272
|
|
|
Data communications business
|
|
|
112,739
|
|
|
|
107,875
|
|
|
|
(4,864
|
)
|
|
Other
|
|
|
74,042
|
|
|
|
77,308
|
|
|
|
3,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment profit
|
|
|
1,336,788
|
|
|
|
1,537,144
|
|
|
|
200,356
|
|
|
Elimination
|
|
|
11,361
|
|
|
|
2,645
|
|
|
|
(8,716
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated total
|
|
¥
|
1,348,149
|
|
|
¥
|
1,539,789
|
|
|
¥
|
191,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. Segment assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
March 31, 2016
|
|
|
March 31, 2017
|
|
|
Increase (Decrease)
|
|
|
Segment assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional communications business
|
|
¥
|
6,995,750
|
|
|
¥
|
7,027,689
|
|
|
¥
|
31,939
|
|
|
Long-distance and international communications business
|
|
|
2,762,138
|
|
|
|
2,772,961
|
|
|
|
10,823
|
|
|
Mobile communications business
|
|
|
7,341,102
|
|
|
|
7,599,619
|
|
|
|
258,517
|
|
|
Data communications business
|
|
|
1,981,578
|
|
|
|
2,364,387
|
|
|
|
382,809
|
|
|
Other
|
|
|
10,932,317
|
|
|
|
10,891,660
|
|
|
|
(40,657
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment assets
|
|
|
30,012,885
|
|
|
|
30,656,316
|
|
|
|
643,431
|
|
|
Elimination
|
|
|
(8,976,954
|
)
|
|
|
(9,405,991
|
)
|
|
|
(429,037
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated total
|
|
¥
|
21,035,931
|
|
|
¥
|
21,250,325
|
|
|
¥
|
214,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 23
–
4. Other significant items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase (Decrease)
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional communications business
|
|
¥
|
699,686
|
|
|
¥
|
586,772
|
|
|
¥
|
(112,914
|
)
|
|
Long-distance and international communications business
|
|
|
177,818
|
|
|
|
171,670
|
|
|
|
(6,148
|
)
|
|
Mobile communications business
|
|
|
629,502
|
|
|
|
455,779
|
|
|
|
(173,723
|
)
|
|
Data communications business
|
|
|
150,242
|
|
|
|
155,352
|
|
|
|
5,110
|
|
|
Other
|
|
|
104,701
|
|
|
|
89,260
|
|
|
|
(15,441
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment
|
|
|
1,761,949
|
|
|
|
1,458,833
|
|
|
|
(303,116
|
)
|
|
Elimination
|
|
|
4,376
|
|
|
|
3,402
|
|
|
|
(974
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated total
|
|
¥
|
1,766,325
|
|
|
¥
|
1,462,235
|
|
|
¥
|
(304,090
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase (Decrease)
|
|
|
Capital investments for segment assets (*)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional communications business
|
|
¥
|
622,131
|
|
|
¥
|
583,358
|
|
|
¥
|
(38,773
|
)
|
|
Long-distance and international communications business
|
|
|
227,564
|
|
|
|
244,859
|
|
|
|
17,295
|
|
|
Mobile communications business
|
|
|
595,264
|
|
|
|
597,078
|
|
|
|
1,814
|
|
|
Data communications business
|
|
|
134,030
|
|
|
|
158,140
|
|
|
|
24,110
|
|
|
Other
|
|
|
108,217
|
|
|
|
116,592
|
|
|
|
8,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated total
|
|
¥
|
1,687,206
|
|
|
¥
|
1,700,027
|
|
|
¥
|
12,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*)
|
The figures for capital investments are the accrual-based amounts required for acquisition of property, plant and equipment, and intangibles. The differences from the
figures for “Payments for property, plant and equipment” and “Payments for intangibles” in the consolidated statements of cash flows are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of yen
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase (Decrease)
|
|
|
Payments for property, plant and equipment
|
|
¥
|
1,265,622
|
|
|
¥
|
1,301,697
|
|
|
¥
|
36,075
|
|
|
Payments for intangibles
|
|
|
371,924
|
|
|
|
400,110
|
|
|
|
28,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,637,546
|
|
|
|
1,701,807
|
|
|
|
64,261
|
|
|
Difference from the total of capital investments
|
|
¥
|
(49,660
|
)
|
|
¥
|
1,780
|
|
|
¥
|
51,440
|
|
As indicated in “3(7) Change in Significant Matters Serving as a Basis for the
Preparation of Consolidated Financial Statements,” effective April 1, 2016, NTT and its subsidiaries in Japan adopted the straight-line method of depreciation and reviewed the residual carrying amount of property, plant and equipment and
other necessary items and made changes where necessary.
As a result of the change in depreciation method,
segment profit on a consolidated basis for the fiscal year ended March 31, 2017 increased by ¥79,373 million for “Regional communications business,” ¥6,633 million for “Long distance and international
communications business,” ¥154,050 million for “Mobile communications business,” and ¥5,072 million for “Other,” decreased by ¥951 million for “Data communications
business,” and increased by ¥244,177 million for “Total segment” and “Consolidated total.”
– 24
–
(9)
Subsequent Events
NTT’s repurchase of its common stock
On December 12, 2016, the Board of Directors resolved that NTT may acquire up to 33 million shares of its outstanding common stock for an amount in total not exceeding ¥150 billion from
December 13, 2016 through June 30, 2017. Based on this resolution, NTT repurchased 21,693,800 shares of its common stock for a total purchase price of ¥106,763 million between December 2016 and March 2017.
NTT also repurchased 8,893,400 shares of its common stock for a total purchase price of ¥43,235 million in April 2017 and
concluded the repurchase of its common stock authorized by Board of Directors’ resolution.
– 25
–
[Note]
The forward-looking statements and projected figures concerning the future performance of NTT and its subsidiaries and affiliates
contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates, the
economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and
abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in
Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein, as well as other risks included in NTT’s most recent Annual Report on Form
20-F
and other filings and submissions with the United States Securities and Exchange Commission.
– 26
–
Financial Results for the Fiscal Year Ended March 31, 2017 And Financial Forecasts for the Fiscal Year
Ending March 31, 2018 May 15, 2017
The forward-looking statements and projected figures concerning the future performance of NTT and its
subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its
subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the
state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting
the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein, as well as other risks included in NTT’s most recent
Annual Report on Form
20-F
and other filings and submissions with the United States Securities and Exchange Commission.
* “E” in this material represents that the figure is a plan or projection for operation.
** “FY” in this material indicates the fiscal year ending March 31 of the succeeding year. Financial Results for the Fiscal Year Ended
March 31, 2017 and Financial Forecasts for the Fiscal Year Ending March 31, 2018 —1— Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Table of Contents Fiscal Year ended March 31, 2017 Summary of Consolidated Financial Results Topics
Contributing Factors by Segment Progress toward Medium-Term Financial Targets Strengthening NTT’s Global Business Fiscal Year ending March 31, 2018 Forecast Summary Forecast Summary by Segment Shareholder Returns (Reference) Major B2B2X
Initiatives (Reference) Major R&D Initiatives Appendix Financial Results for the Fiscal Year Ended March 31, 2017 and Financial Forecasts for the Fiscal Year Ending March 31, 2018 —2— Copyright (c) 2017 Nippon Telegraph and
Telephone Corporation
FY2016 Summary of Consolidated Financial Results Operating Income increased by ¥191.6 billion [14.2%]
Net Income reached new record levels EPS increased by ¥41 to ¥391 Status of Consolidated Financial Results Operating Revenues: ¥11,391.0 billion (decrease of ¥150.0 billion [(1.3)%]
year-on-year)
Operating Income: ¥1,539.8 billion (increase of ¥191.6 billion [14.2%]
year-on-year)
Net
Income*: ¥800.1 billion (increase of ¥62.4 billion [8.5%]
year-on-year)
EPS: ¥390.94 (increase of ¥40.60 [11.6%]
year-on-year)
* Net income represents net income attributable to NTT, excluding noncontrolling interests. Financial Results for the Fiscal Year Ended March 31, 2017
and Financial Forecasts for the Fiscal Year Ending March 31, 2018 —3— Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
FY2016 Topics Increased Profitability of Network Services Expansion of NTT’s User Base Mobile
Subscriptions: 74.88 million mobile subscriptions (net increase of 3.92 million) (Included in the above) Kake-hodai & Pake-aeru: 37.07 million subscriptions (net increase of 7.36 million) FTTH Subscriptions: 20.05 million
subscribers (net increase of 0.79 million) (Included in the above) Hikari Collaboration: 8.74 million (4.74 million opened connections (1.93 million new subscribers and 2.82 million subscribers who switched subscriptions from
FLET’S Hikari) Growing number of
Wi-Fi
area owners*: 557 (increase of 164
year-on-year)
Expansion of Global Cloud Services
Cross-Selling Order Volume: US$940 million Promotion of the B2B2X Model Expanded the scope of collaboration with other companies and local governments through the use of NTT Group’s latest cutting-edge technology in the fields of sports,
traditional entertainment, manufacturing industry, connected cars, etc. * Total number of large-scale corporate or local government customers. Excludes small-scale restaurants, etc. Financial Results for the Fiscal Year Ended March 31, 2017 and
Financial Forecasts for the Fiscal Year Ending March 31, 2018 —4— Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
FY2016 Contributing Factors by Segment Significant increase in Operating Income in the Regional communications
business and Mobile communications business Operating
Revenues (Year-on-year:
(150.0)) (Billions of yen) Regional
communications Long distance and Data international communications Other business communicationsMobilebusinessbusiness * 99.6 businesscommunications business101.988.0
11,541.0 121.757.411,391.0 kFY2016 l k3,308.2 l k2,129.3 l k4,584.6 l k1,718.7 l
FY2015 FY2016 Operating
Income (Year-on-year
: +191.6) MobileData Long distance andcommunicationscommunicationsOther
Regional internationalbusinessbusinessbusiness * communications communications business business163.34.95.5 94.5 55.91,539.8 1,348.1
kFY2016 l k359.5 l k40.8 l k951.6 l k107.9 l FY2015 FY2016 *Includes adjustments such as elimination
Financial Results for the Fiscal Year Ended March 31, 2017 and Financial Forecasts for the Fiscal Year Ending March 31, 2018 —5— Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
FY2016 Progress toward Financial Targets Results Medium Term (FY2016)Targets (FY2017E) EPS
Growth ¥390.94At least ¥400 Streamlining Capital Investment (Domestic Network Business*) [compared to FY2014] ¥136.4 billion At least ¥200 billion Cost
Reductions** ¥654.0 billion At least ¥800 billion (in fixed-line/mobile access networks) [compared to FY2014] Overseas Sales/Operating Income*** $16.9B/$0.8B
$22B/$1.5B * Excludes NTT Com’s data centers and certain other assets. ** Does not reflect the impact of the change in depreciation method. *** Operating Income excludes
temporary expenses, such as
M&A-related
depreciation costs of intangible fixed assets Financial Results for the Fiscal Year Ended March 31, 2017 and Financial Forecasts for the Fiscal Year Ending
March 31, 2018 —6— Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Strengthening NTT’s Global Business FY2016 Initiatives
Go-To-Market
Achieved record TCV* of cross-selling Organized
Go-to-Market
account support team across NTT Group Established
sales collaboration platform *Total Contract Value Services / Operations Established and launched NTT Security Offered packaged services and improved service collaboration across NTT Group companies Procurement Reduced costs by refining common
specifications and leveraging volume to obtain better discounts FY2017 Initiatives Integrate management of the cloud IaaS platforms of NTT Com and Dimension Data to strengthen cloud offerings (Wholesale from NTT Com to Dimension Data)
<Purpose> Secure, compliant enterprise-grade clouds Combination of public and private clouds for clients’ mission-critical IT systems Open cloud platform to support clients’ digital business with the latest innovation Hybrid IT
managed services across full-stack IT Strengthen coordination of delivery processes across NTT Group companies Accelerate global account activities to win large-scale deals Financial Results for the Fiscal Year Ended March 31, 2017 and
Financial Forecasts for the Fiscal Year Ending March 31, 2018 —7— Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
FY2017 Forecast Summary Operating Income expected to increase by ¥50.2 billion [3.3%] to
¥1,590.0 billion Operating Revenues, Operating Income and Net Income expected to reach record levels EPS expected to reach medium-term financial target (at least ¥400) Plan for Consolidated Revenues and Income Operating Revenues:
¥11,750.0 billion (increase of ¥359.0 billion [3.2%]
year-on-year)
Operating Income : ¥1,590.0 billion (increase of ¥50.2 billion
[3.3%]
year-on-year)
Net Income* : ¥830.0 billion (increase of ¥29.9 billion [3.7%]
year-on-year)
EPS : ¥414.00 (increase of ¥23.06 [5.9%]
year-on-year)
* Net income
represents net income attributable to NTT, excluding noncontrolling interests. Financial Results for the Fiscal Year Ended March 31, 2017 and Financial Forecasts for the Fiscal Year Ending March 31, 2018 —8— Copyright (c) 2017
Nippon Telegraph and Telephone Corporation
FY2017 Forecast Summary by Segment Increase in both Operating Revenues and Operating Income in the Long
distance and international communications business, Data communications business and Mobile communications business Operating
Revenues (Year-on-year:
+359.0) Data communications Other (Billions of yen) business business * Mobile 80.3 Long distance and communications 251.3
Regional international business communications communications business business 165.411,750.0 11,391.0 78.2100.7 [FY2017E] [3,230.0 ] [2,230.0] [4,750.0][1,970.0]
FY2016 FY2017E Operating
Income (Year-on-year
: +50.2) Long distance and Data international Mobile communications Other
Regional communications communications business business * communications business business 22.125.0 business 29.579.23.41,590.0 1,539.8[FY2017E] [330.0] [120.0] [955.0] [130.0] FY2016 FY2017E *Includes
adjustments such as elimination Financial Results for the Fiscal Year Ended March 31, 2017 and Financial Forecasts for the Fiscal Year Ending March 31, 2018 — 9 — Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Shareholder Returns Share Buybacks: Completed ¥374.1 billion of share buybacks from the government and
on the open market during FY2016 (and completed ¥43.2 billion of share buybacks on the open market in April 2017) Dividends: Increase total annual dividend per share for FY2017 by ¥30 over the previous year to ¥150 Share Buybacks
539.4 (Billions of yen) 406.5 366.5 381.7 374.1 338.1 200.0 120.0 150.0 86.2 100.0 94.4 93.6 TBD FY1999 FY2002 FY2003 FY2004 FY2005 FY2007 FY2008 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017E Dividends per (Yen)
Share Pay-out
ratio 150 Note: Dividends have been adjusted to reflect the
two-for-one
stock split carried
out on July 1, 2015 120 90 110 80 85 60 60 70 45 55 38.2% 37.2% 38.0% 36.2% 40 32.3% 31.2% 33.4% 31.4% 30.7% 25 30 30 27.5% 13.0% 23.0% 12.3% 19.5% 17.1% FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017E Financial Results for the Fiscal Year Ended March 31, 2017 and Financial Forecasts for the Fiscal Year Ending March 31, 2018—10— Copyright (c) 2017 Nippon Telegraph and Telephone
Corporation
(Reference) Major B2B2X Initiatives in FY2016 Entertainment April 2016- Providing amazing experiences through
the integration of Kabuki and cutting-edge ICT Sports May 2016- Providing advanced sports-viewing experiences using ICT Agriculture June 2016- ICT solutions for agriculture and water infrastructure, combining AI and IoT Tourism July 2016- City of
Sapporo Smart city project through Sapporo City’s ICT-utilizing platform Sports July 2016- DAZN Smart stadium project and providing advanced game-viewing experiences Manufacturing July 2016- Optimization of manufacturing/production processes
with IoT Transport Jan. 2017- Offline-to-online linked ads, and navigation at metro stations Healthcare Feb. 2017- Improvement of rehabilitation efficiency through the use of wearable biosensors Transport Sept. 2016- Safe driving control solutions
integrating biometric information Infrastructure Nov. 2016- Innovative cybersecurity solutions for secure operation of critical infrastructure Auto March 2017- Technological development and verification in the connected car field Financial Results
for the Fiscal Year Ended March 31, 2017 and Financial Forecasts for the Fiscal Year Ending March 31, 2018 —11— Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
(Reference) Major R&D Initiatives in FY2016 Dialogue Technology Catching the World’s Attention
Showcased “Natural Conversation among Multiple Persons and Robots” and other technology at SXSW2017 (3/10-19 in Austin, U.S.A.) Android (Osaka University) x Discussion Dialogue (NTT) Front-page news in USA TODAY and local newspapers The
World’s Best Sound-Processing Technology Provided Hitachi Zosen with “Anomaly Noise Detection Technology” that objectively visualizes and analyzes the characteristics of both normal operating sounds and anomaly noises of manufacturing
machines Recorded Operating Sounds 0 -500 8000 Reduction of -1000 6000 -1500 4000 Environmental Anomaly Sounds and -2000 Frequency 2000 Noise -2500 Level 0 (Hz) 0 Anomaly 0 20 40 60 Time (S) Time (S) Noise World-Leading Security Technology Developed
“Secure Computation Technology,” which enables the accurate analysis of encrypted genome information, the most sensitive personal information, between multiple institutes together, without decrypting the data Medical Institutes Example of
Medical Institutes Genome Analysis Encrypted Research Labs Calculation Engine Research Labs Realized “Fisher’s Encrypted exact test” by secure Data computation technology First in the World Unrecoverable Unauthorized Access Virtual
Reality Baseball Coaching System Developed a coaching system for professional baseball players using “athlete first-person vision synthesis technology,” which enables players to experience simulations of pitches with immersive reality, and
carried out practice testing with Tohoku Rakuten Golden Eagles (commercial launch in 2017) Diversity Navigation Developed “MaPiece” technology, which easily collects accessibility information, as well as “2.5D map representation
technology,” which realizes easy-to-understand 3D map displays Support convenient and safe mobility of different types of people (seniors, people with baby strollers, foreign visitors, and others) Non-Conventional Computer Developed
“Quantum Neural Network,” a new computer based on quantum optical technology. The use of quantum properties of optical signals enables us to find solutions to combinatorial optimization problems, which are extremely difficult for
conventional Optical parametric oscillator computers to solve Information processing (Quantum analog device) (neuron) Parametric Degenerate Optical Pump Pulse Phase Sensitive Oscillator (DOPO) Amplification Approx. 50 times faster Optical Ring
compared to current Resonator digital computers Coupler Coupler Posted in online version Optical modulator Measurement of the American scientific magazine, “Science” Digital Signal FPGA Digital Signal (Feedback Information) (OPO Pulse
Information) Communication FPGA Measurement Feedback Circuit (Synaptic connection) (Legacy digital device) and Financial Financial Results Forecasts for the for Fiscal the Year Fiscal Ended Year Ending March 31, March 2017 31, 2018 —12—
Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Appendix
Progress of Broadband Services
Progress of Broadband Services Number of Subscribers for Fixed Broadband Services FLET’S ADSL FLET’S
Hikari (including Hikari Number of Subscribers *1*2 Collaboration Model) Hikari Denwa (Thousands) 22,000 21,644 20,540 20,691 20,858 20,972 791 20,113 20,161 20,248 20,312 955 919 20,853 20,000 1,162 1,125 1,090 1,053 1,019 987 19,903 20,053
[11,894] 18,951 19,036 19,157 19,259 19,520 [5,912] 19,704 [6,917] [7,854] [8,744] 18,000 [1,322] [2,348] [3,478] [4,691] 17,988 17,759 16,000 17,545 17,655 17,243 17,293 17,335 17,374 17,451 14,000 12,000 00 2015.6 2015.9 2015.12 2016.3 2016.6
2016.9 2016.12 2017.3 2018.3E Changes from the Preceding Quarter (Thousands) FY2015 FY2016 FY2016 FY2017E 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 FLET’S Hikari *1 235 85 121 102 261 183 199 150 794 800 Number of opened *3 810 559 580 669 786 649
672 750 2,857 2,900 connections FLET’S ADSL (58) (37) (35) (37) (34) (32) (32) (36) (134) (128) Hikari Denwa *4 *5 135 50 42 39 77 93 111 104 385 229 *1 Number of FLET’S Hikari (including Hikari Collaboration Model) subscribers includes B
FLET’S, FLET’S Hikari Next, FLET’S Hikari Light, FLET’S Hikari Lightplus, and FLET’S Hikari WiFi Access provided by NTT East, B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown, FLET’S Hikari Next,
FLET’S Hikari Light and FLET’S Hikari WiFi Access provided by NTT West, and wholesale services (Hikari Collaboration Model) provided by both NTT East and NTT West. *2 Figures in [ ] represent the number of subscribers to “Hikari
Collaboration Model,” the wholesale provision of services by NTT East and NTT West to service providers. *3 Number of opened connections excludes openings as a result of relocations. *4 Numbers for Hikari Denwa include wholesale services
provided to service providers by NTT East and NTT West. *5 Numbers of Hikari Denwa subscribers are presented in thousands of channels. Financial Results Forecasts for the for Fiscal the Year Fiscal Ended 31, March 2017 and Financial Year Ending
March 31, 2018 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation —13—
Progress of Broadband Services Number of Subscribers for Mobile Broadband Services Number of Subscribers*
LTE(“Xi”) (Thousands) FOMA 80,000 77,100 72,943 73,588 74,880 70,000 67,532 68,494 69,602 70,964 71,614 60,000 50,000 32,609 34,504 36,293 38,679 39,893 41,281 42,671 44,544 51,700 40,000 30,000 20,000 34,923 33,989 33,309 32,285 31,721
31,662 30,917 30,336 10,000 25,400 0 2015.6 2015.9 2015.12 2016.3 2016.6 2016.9 2016.12 2017.3 2018.3E Changes from the Preceding Quarter (Thousands) FY2015 FY2016 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 FY2016 FY2017E LTE(“Xi”)+FOMA 936 962
1,108 1,362 650 1,330 645 1,292 3,916 2,200 * The number of subscribers for Mobile Broadband Services includes communications module service subscribers Financial Results Forecasts for the for Fiscal the Year Fiscal Ended March 31, March 2017 and
Financial Year Ending 31, 2018 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation —14—
Progress of Broadband Services Number of Subscribers for Video Services FLET’S TV *1 *2 Hikari TV
(Thousands) 5,000 4,544 4,632 4,416 4,442 4,464 4,484 4,492 4,505 4,521 4,000 1,378 1,398 1,417 1,432 1,445 1,464 1,489 1,521 1,602 3,000 2,000 3,038 3,043 3,047 3,052 3,047 3,041 3,032 3,023 3,030 1,000 0 2015.6 2015.9 2015.12 2016.3 2016.6 2016.9
2016.12 2017.3 2018.3E *1 “FLET’S TV” requires a subscription to “FLET’S TV Transmission Services” provided by NTT East and NTT West, and a subscription to SKY Perfect JSAT’s “SKY Perfect JSAT Facility Use
Services” broadcast service. *2 Numbers of subscribers to “FLET’S TV Transmission Services” include wholesale services provided to service providers by NTT East and NTT West. Financial Results Forecasts for the for Fiscal the
Year Fiscal Ended March 31, March 2017 and Financial Year Ending 31, 2018 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation —15 —
Financial Information
Details of Consolidated Statement of Income Operating Revenues (Year-on-year: (150.0)) (Billions of yen) Voice
related services revenues SI revenues and sale of telecommunications equipment IP/packet communications services revenues Other revenues 68.6 Fixed voice : (96.1) 168.4 11,541.0 Mobile voice: + 27.5 Systems Integration: (21.9) Telecommunications
equipment: (146.5) 11,391.0 FY2016 4-12 Operating Expenses (Year-on-year: (341.6)) 10,192.8 FY2015 298.8 Depreciation expenses and loss on disposal of assets Expenses of goods and for purchase services and other expenses 63.9 Personnel expenses 22.9
Other expenses 43.9 9,851.2 FY2016 Financial Results Forecasts for the for Fiscal the Year Fiscal Ended March 31, March 2017 and Financial Year Ending 31, 2018 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation -16-
Details of Consolidated Balance Sheet March 31, 2016 21,035.9 Assets 21,035.9 Liabilities 9,750.8
Interest-Bearing Debt 4,163.3 Cash and Cash Equivalents 1,088.3 Other 45.1 Goodwill 1,229.2 Equity 11,240.1 Depreciable Assets (property, plant and Retained earnings equipment) 5,074.2 7,896.5 Treasury Stock (0.9) (Billions of yen) March 31, 2017
21,250.3 Assets 21,250.3 [+214.4] Cash and Cash Equivalents 925.2 [(163.1)] Goodwill 1,314.6 [+85.4] Depreciable Assets (property, plant and equipment) 8,004.5 [+108.0] Liabilities 9,691.8 [(59.0)] Interest-Bearing Debt 4,088.2 [(75.1)] Other 50.8
[+5.7] Equity 11,507.8 [+267.7] Retained earnings 5,626.2 [+551.9] Treasury Stock (375.2) [(374.3)] Financial Results Forecasts for the for Fiscal the Year Fiscal Ended March 31, March 2017 and Financial Year Ending 31, 2018 Copyright (c) 2017
Nippon Telegraph and Telephone Corporation -17-
Details of Consolidated Cash Flows Cash flows from operating activities (A) Cash flows from investing
activities (B) FCF (A) + (B) Cash flows from financing activities Interest-bearing debt 3,000 2,000 1,000 0 (1,000) (2,000) (3,000) 2,917.4 2,711.8 (329.5) (124.0) 952.1 828.0 Acquisitions/Sales of property, plant, equipment and intangibles
[(122.9)] Acquisitions of subsidiaries [(208.4)] +205.5 Increase in accounts receivable [+136.4] (1,759.8) (2,089.3) (707.6) (981.5) (273.9) Increase/Decrease in debt [+175.9] Acquisition/Sales of treasury stock [(280.5)] Acquisition of shares of
subsidiaries [(140.2)] 0 3,500 4,000 4,500 FY2015 4,163.3 FY2016 4,088.2 FY2015 FY2016 Increase/Decrease from the same period of the previous fiscal year Financial Results Forecasts for the for Fiscal the Year Fiscal Ended March 31, March 2017 and
Financial Year Ending 31, 2018 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation —18—
Details of Capital Investment (Billions of yen) 12.8 0.0 1,687.2 [0.8%] 1,700.0 [0.0%] 1,700.0 243.8 261.8
317.0 134.0 158.1 192.0 130.8 135.1 111.0 289.4 274.1 260.0 294.0 273.8 250.0 595.2 597.1 570.0 FY2015 FY2016 FY2017E Other NTT DATA (Consolidated) NTT Communications NTT West NTT East NTT DOCOMO (Consolidated) Financial Results Forecasts for the
for Fiscal the Year Fiscal Ended March 31, March 2017 and Financial Year Ending 31, 2018 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation -19-
May 15, 2017
FOR IMMEDIATE RELEASE
Financial Results for Fiscal Year Ended March 31, 2017
The financial results of
Nippon Telegraph and Telephone East Corporation (NTT East) for the fiscal year ended March 31, 2017 are presented in the following attachments.
(Attachments)
|
1.
|
Summary of Results for the Fiscal Year Ended March 31, 2017
|
|
2.
|
Non-Consolidated
Comparative Balance Sheets
|
|
3.
|
Non-Consolidated
Comparative Statements of Income
|
|
4.
|
Non-Consolidated
Statements of Changes in Shareholders’ Equity and Other Net Assets
|
|
5.
|
Business Results
(Non-Consolidated
Operating Revenues)
|
|
6.
|
Non-Consolidated
Comparative Statements of Cash Flows
|
|
7.
|
Changes in Board of Directors
|
For inquiries,
please contact:
Mr. Mr. Kenkichi Nakata or Mr. Masaki Akutsu
Accounting Section, Finance Division
Nippon Telegraph and Telephone East Corporation
Tel:
+81-3-5359-3331
E-mail:
kessan_info@sinoa.east.ntt.co.jp
|
1.
|
Summary of Results for the Fiscal Year Ended March 31, 2017
|
In the fiscal year ended March 31, 2017, a wide range of changes took place in the information and telecommunications
market with the increased spread and market penetration of devices that utilize fixed-line and mobile broadband, and improved convenience in people’s everyday lives and productivity in various industries through the emergence of new services
made possible by the evolution of technologies such as cloud services, AI (*1), Big Data (*2), and IoT (*3). In addition, the role of information and telecommunications is becoming increasingly important, including strengthening security measures
against increasingly sophisticated and complex cyberattacks, strengthening natural disaster countermeasures and managing safe and secure social systems. This change can be seen on a global scale.
The regional telecommunications market is also changing dramatically, with intensifying competition in broadband
services. In addition, new services that leverage a variety of wireless devices are also expanding, which in turn leads to diversification in the way that customers are using these devices, and offloading (*4) needs are increasing due to the
expansion of the volume of data communications.
Amid such a difficult and volatile business environment, as a
carrier with an important leadership role in the information and telecommunications industry, NTT East has endeavored to be thorough in its compliance regime and to abide by the requirements of fair competition. At the same time, NTT East has worked
to secure a stable and solid foundation for its business, and to ensure its reliability as a social infrastructure, through the provision of high-quality, stable, universal services, construction of a telecommunications network that is resilient
against disasters, and initiatives for prompt restoration of services in case of large-scale natural disasters and other calamities.
NTT East has also endeavored to enhance the broadband network environment and further expand its user base by offering new services and products, as well as offering customer-friendly pricing options with
long-term appeal.
– 1
–
|
1.
|
Efforts to Promote Fiber-Optic and IP Services
|
Amid intensifying competition with respect to broadband services, NTT East strengthened its “Hikari Collaboration Model” initiatives to expand and continue using “FLET’S Hikari”
(*5) and to meet customers’ needs. Businesses receiving fiber-optic access services (FLET’S Hikari) from NTT East combine their own services with fiber-optic access services to create and provide their own new service. NTT East has been
working to create new demand and to improve customer retention by supporting and actively developing new business partners for its “Hikari Collaboration Model.” NTT East has also been working to promote early stable operations and
increased efficiency of related operations.
An example of “Hikari Collaboration Model” usage
includes a collaboration with IIDA CABLE TELEVISION Co., Ltd. to launch the “IIDA CABLE TELEVISION & FLET’S Hikari” service on April 27, 2016. This service utilizes “FLET’S Hikari” provided by NTT East or
fiber optic access services provided by Hikari Collaboration businesses and allows customers to watch and listen to broadcasting services provided by IIDA CABLE TELEVISION.
Similarly, NTT East started providing “Sayama Cable TV & FLET’S Hikari” in conjunction with
Sayama Cable TV, as of March 25, 2017.
In addition, through home appliances control utilizing HEMS (*6),
building a next generation security network that utilizes “FLET’S VPN GATE,” and collaborating with a variety of businesses such as private preparatory schools and care providers, NTT East aimed to promote ICT usage in a wide variety
of fields. As a result, the “Hikari Collaboration Model” is being utilized by over 470 businesses, and the number of subscribers for “Hikari Collaboration Model” fiber-optic access services (Hikari Collaboration) exceeded five
million as of January 29, 2017. The fiber-optic access services “FLET’S Hikari” and “Hikari Collaboration” exceeded the number of fixed telephone facilities, exceeding 11 million subscribers as of October 31,
2016.
– 2
–
|
2.
|
Initiatives Relating to the Solutions Business
|
NTT East worked on providing new services and solutions that meet the needs and characteristics depending on the industry and business format of its corporate customers, expanding broadband services and
promoting ICT utilization.
|
i.
|
As part of its
Wi-Fi
services for corporate customers, NTT East is currently providing a simple
Wi-Fi
service “GigaRaku
Wi-Fi,”
including support services. From April 1, 2016, NTT East also began providing “Remote access option,” which includes
remote access functions that enable access to the office LAN on the road and from home via a mobile device, combined with installation and operational support, and “LAN power supply option,” which supplies power to access points via LAN
cables, together with support services.
|
|
ii.
|
For cloud services, on April 25, 2016, NTT East began providing “GigaRaku Camera,” a cloud-based camera monitoring and recording
service, with which users can monitor a network camera in real-time and view recorded data anytime and from anywhere.
|
In addition, on September 1, 2016, NTT East began providing the “CloudGatewayAppliPackage,” a metered service for corporate customers who want to use cloud-based applications easily and
securely. The service provides a function to allow cloud service connectivity without an internet connection and an application server as a package. NTT East also began providing a fixed-price network service, “CloudGatewayCrossConnect”
from October 11, 2016, intended for customers who want to use cloud services via a high-reliability closed area network. The service enables access to cloud services from FLET’S VPN Service.
In addition, on June 28, 2016, NTT East began offering “KantanTablet service,” a cloud service for
corporate customers that want to deploy their own services for elderly or similar customers who are unfamiliar with the internet. This service provides portal functions for beginners that enables more intuitive operations from a tablet device with
large buttons, platforms that offer automatic
log-on
functions for online shopping and other sites, and telephone and other remote functions.
– 3
–
|
iii.
|
NTT East launched “MaruRaku Office” on March 31, 2017 in response to requests for a basic ICT environment as a set package. This
service offers internet lines,
Wi-Fi
environment, security measures, and a support menu including an ICT help desk and
24-hour/365-day
malfunction response services as a bundle.
|
|
iv.
|
One industry-specific service includes “RoboConnect,” a cloud-based robot platform service launched on September 1, 2016 that offers
application services such as dialog functions and camera image capture functions via cloud through the utilization of communication robots provided by various robot manufacturers for nursing care businesses.
|
In addition, in order to realize a service that enables users to utilize home electricity usage information, NTT East
began offering a platform service, “HEMS information connect,” for HEMS information utilization businesses on October 14, 2016. This platform integrates HEMS information data collected from HEMS service providers into a unified data
format.
|
v.
|
As a measure to revitalize local communities through sports, NTT East launched the “Smart Stadium” service on July 2, 2016 to NACK5
Stadium Omiya in order to solve regional challenges through ICT use. This service utilizes cutting-edge technologies to provide a new type of visual experience and style for watching sports.
|
In addition, at the request of the Tokyo Metropolitan Government, NTT East started working in May 2016 on the
installation of undersea fiber-optic cables and maintenance in order to connect the “5 villages and 6 islands of Tokyo Metropolis” that do not have access to fiber-optic connectivity. NTT East will be contributing to community development
through ICT, utilizing fiber-optic broadband in “tourism,” “education,” “energy” and other fields.
– 4
–
|
3. Status
|
of Business Operation Structure
|
NTT East has set up a Network Security Promotion Department within the Network Business Headquarters, a facilities division, in order to centrally respond to ordinary and extraordinary situations related
to electrical and telecommunication facilities, as part of its effort to further strengthen countermeasures against cyber-attacks on electrical and telecommunication services.
|
4. Corporate
|
Social Responsibility Activities
|
NTT East considers Corporate Social Responsibility (“CSR”) activities to be one of the most important pillars of the management of the company, and recognizes that it is the social
responsibility of a company to contribute to the environmentally friendly, healthy and sustainable development of society. In addition to the provision of various services and solutions in order to create a richer society, NTT East has directed its
efforts to resolve various social challenges as follows: (i) ensuring a high degree of stability and reliability of vital infrastructure that is indispensable to the general public; (ii) complying with laws and regulations, including those
that ensure fair competition, protect personal information, make accurate representations in advertising, and regulate the dispatch of workers; and (iii) providing information and telecommunications services that contribute to the reduction of
the environmental impact of society as a whole, as well as taking measures to reduce its environmental impact by, among other things, reducing its consumption of energy, resources and electricity.
Having clearly defined the “Shape the NTT East Group is Aiming For,” NTT East has made an effort to realize CSR
activities befitting its position as a leading company in information and telecommunication, such as working to widen the reach of the “NTT Group CSR Charter” (enacted in June 2006) and striving to set up specific practices for the PDCA
cycle based on “KPIs” (*7) established for each important theme of CSR activities.
– 5
–
For example, many fiber-optic cables were severed as a result of flooding
rivers and fallen bridges due to the torrential rain caused by Typhoon Number 10 in August 2016. NTT East quickly restored such cables through the utilization of multi-helicopters and the prompt design and redirection of fiber-optic cabling routes.
In addition, in order to ensure the availability of a means of communication during disasters, NTT East
worked on the
pre-installation
of “public telephones for disasters (special public telephones)” in collaboration with local governments. The number of facilities as the fiscal year ended
March 31, 2017 reached 40,000 units, an increase of 9,000 units year on year. This enabled NTT East to provide its customers peace of mind and safety during the disaster caused by Typhoon Number 10. Further, NTT East is working to create a
stronger community that can withstand disasters in conjunction with local governments through the provision of disaster prevention solutions and other measures.
In addition, NTT East worked on promoting activities to protect the environment, including signing a memorandum of
understanding in connection with promoting the “Furusato-no mori regeneration project” run by Sendai city by donating a portion of NTT’s sales from pasteboards from its telegram services.
Furthermore, NTT East proactively endeavored to disclose relevant information to its stakeholders by issuing the
“NTT East Group CSR Report 2016”.
As a result of these measures and cost reduction efforts, operating revenue totaled 1,672.2 billion yen (a decrease of 2.9% year on year), operating income totaled 189.1 billion yen (an increase
of 16.9% year on year), ordinary income was 204.4 billion yen (an increase of 17.9% year on year), and net income totaled 149.6 billion yen (an increase of 26.0% year on year).
|
*1:
|
An abbreviation for Artificial Intelligence. Computer software and systems that mimic intelligent tasks carried out by human brains.
|
– 6
–
|
*2:
|
A large volume of digital data that is produced with popularization of the internet and faster computer processing speeds
|
|
*3:
|
An abbreviation for Internet of Things. A concept in which things that were not connected to the Internet before can now be connected to the Internet.
|
|
*4:
|
Dispersing the load in order to eliminate reduction in transmission speed or connection difficulties that arise due to an increase in telecommunication traffic.
|
|
*5:
|
A collective name for “FLET’S Hikari Next”, “B FLET’S”, “FLET’S Hikari Light” and “FLET’S Hikari
Wi-Fi
Access” (including “Hikari Collaboration Model”).
|
|
*6:
|
An abbreviation for Home Energy Management System. An energy management system for the home which provides visualization and central management for energy.
|
|
*7:
|
An abbreviation for Key Performance Indicator. Key indicators for evaluating performance. This is a quantitative indicator that measures the degree to which goals have
been achieved.
|
– 7
–
2.
Non-Consolidated
Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
March 31, 2016
|
|
|
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets - telecommunications businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery and equipment
|
|
|
395,419
|
|
|
|
339,631
|
|
|
|
(55,787
|
)
|
|
Antenna facilities
|
|
|
3,791
|
|
|
|
3,604
|
|
|
|
(187
|
)
|
|
Terminal equipment
|
|
|
31,807
|
|
|
|
22,947
|
|
|
|
(8,860
|
)
|
|
Local line facilities
|
|
|
835,446
|
|
|
|
866,722
|
|
|
|
31,276
|
|
|
Long-distance line facilities
|
|
|
3,353
|
|
|
|
2,843
|
|
|
|
(510
|
)
|
|
Engineering facilities
|
|
|
595,052
|
|
|
|
588,683
|
|
|
|
(6,368
|
)
|
|
Submarine line facilities
|
|
|
872
|
|
|
|
732
|
|
|
|
(140
|
)
|
|
Buildings
|
|
|
420,792
|
|
|
|
409,835
|
|
|
|
(10,956
|
)
|
|
Structures
|
|
|
16,964
|
|
|
|
16,038
|
|
|
|
(925
|
)
|
|
Other machinery and equipment
|
|
|
3,254
|
|
|
|
3,006
|
|
|
|
(248
|
)
|
|
Vehicles and vessels
|
|
|
528
|
|
|
|
642
|
|
|
|
114
|
|
|
Tools, furniture and fixtures
|
|
|
44,458
|
|
|
|
48,182
|
|
|
|
3,724
|
|
|
Land
|
|
|
197,315
|
|
|
|
197,249
|
|
|
|
(66
|
)
|
|
Lease assets
|
|
|
750
|
|
|
|
1,001
|
|
|
|
250
|
|
|
Construction in progress
|
|
|
17,626
|
|
|
|
19,988
|
|
|
|
2,362
|
|
|
Total property, plant and equipment
|
|
|
2,567,433
|
|
|
|
2,521,110
|
|
|
|
(46,323
|
)
|
|
Intangible fixed assets
|
|
|
84,019
|
|
|
|
84,120
|
|
|
|
100
|
|
|
Total fixed assets - telecommunications businesses
|
|
|
2,651,453
|
|
|
|
2,605,230
|
|
|
|
(46,223
|
)
|
|
Investments and other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
13,016
|
|
|
|
12,581
|
|
|
|
(435
|
)
|
|
Investments in subsidiaries and affiliated companies
|
|
|
46,622
|
|
|
|
46,622
|
|
|
|
—
|
|
|
Other investments in subsidiaries and affiliated companies
|
|
|
3,712
|
|
|
|
3,705
|
|
|
|
(6
|
)
|
|
Investment in capital
|
|
|
473
|
|
|
|
452
|
|
|
|
(20
|
)
|
|
Long-term prepaid expenses
|
|
|
3,707
|
|
|
|
4,024
|
|
|
|
317
|
|
|
Prepaid pension costs
|
|
|
3,975
|
|
|
|
3,030
|
|
|
|
(944
|
)
|
|
Deferred income taxes
|
|
|
112,097
|
|
|
|
125,254
|
|
|
|
13,157
|
|
|
Other investments and assets
|
|
|
3,899
|
|
|
|
3,441
|
|
|
|
(457
|
)
|
|
Allowance for doubtful accounts
|
|
|
(913
|
)
|
|
|
(773
|
)
|
|
|
140
|
|
|
Total investments and other assets
|
|
|
186,589
|
|
|
|
198,338
|
|
|
|
11,749
|
|
|
Total fixed assets
|
|
|
2,838,043
|
|
|
|
2,803,569
|
|
|
|
(34,473
|
)
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and bank deposits
|
|
|
8,675
|
|
|
|
5,605
|
|
|
|
(3,069
|
)
|
|
Accounts receivable, trade
|
|
|
224,181
|
|
|
|
230,736
|
|
|
|
6,554
|
|
|
Accounts receivable, other
|
|
|
117,104
|
|
|
|
119,106
|
|
|
|
2,001
|
|
|
Supplies
|
|
|
26,221
|
|
|
|
26,005
|
|
|
|
(216
|
)
|
|
Advance payments
|
|
|
1,771
|
|
|
|
1,513
|
|
|
|
(258
|
)
|
|
Prepaid expenses
|
|
|
7,814
|
|
|
|
7,886
|
|
|
|
71
|
|
|
Deferred income taxes
|
|
|
7,178
|
|
|
|
6,674
|
|
|
|
(503
|
)
|
|
Deposits
|
|
|
196,532
|
|
|
|
288,468
|
|
|
|
91,935
|
|
|
Other current assets
|
|
|
10,939
|
|
|
|
11,853
|
|
|
|
914
|
|
|
Allowance for doubtful accounts
|
|
|
(442
|
)
|
|
|
(327
|
)
|
|
|
114
|
|
|
Total current assets
|
|
|
599,977
|
|
|
|
697,521
|
|
|
|
97,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
3,438,021
|
|
|
|
3,501,091
|
|
|
|
63,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 8
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
March 31, 2016
|
|
|
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings from parent company
|
|
|
365,835
|
|
|
|
225,220
|
|
|
|
(140,615
|
)
|
|
Lease obligations
|
|
|
1,410
|
|
|
|
1,494
|
|
|
|
84
|
|
|
Liability for employees’ retirement benefits
|
|
|
235,919
|
|
|
|
247,366
|
|
|
|
11,446
|
|
|
Reserve for point services
|
|
|
8,574
|
|
|
|
4,145
|
|
|
|
(4,429
|
)
|
|
Reserve for unused telephone cards
|
|
|
8,671
|
|
|
|
8,460
|
|
|
|
(211
|
)
|
|
Allowance for environmental measures
|
|
|
5,289
|
|
|
|
3,637
|
|
|
|
(1,652
|
)
|
|
Asset retirement obligations
|
|
|
1,092
|
|
|
|
902
|
|
|
|
(189
|
)
|
|
Other long-term liabilities
|
|
|
21,682
|
|
|
|
34,672
|
|
|
|
12,989
|
|
|
Total long-term liabilities
|
|
|
648,475
|
|
|
|
525,898
|
|
|
|
(122,576
|
)
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term borrowings from parent company
|
|
|
65,120
|
|
|
|
140,615
|
|
|
|
75,495
|
|
|
Accounts payable, trade
|
|
|
85,229
|
|
|
|
89,029
|
|
|
|
3,799
|
|
|
Lease obligations
|
|
|
417
|
|
|
|
459
|
|
|
|
42
|
|
|
Accounts payable, other
|
|
|
198,765
|
|
|
|
198,620
|
|
|
|
(145
|
)
|
|
Accrued expenses
|
|
|
14,953
|
|
|
|
15,613
|
|
|
|
659
|
|
|
Accrued taxes on income
|
|
|
11,793
|
|
|
|
14,186
|
|
|
|
2,393
|
|
|
Advances received
|
|
|
7,657
|
|
|
|
9,185
|
|
|
|
1,528
|
|
|
Deposits received
|
|
|
203,983
|
|
|
|
215,758
|
|
|
|
11,774
|
|
|
Unearned revenues
|
|
|
106
|
|
|
|
91
|
|
|
|
(14
|
)
|
|
Allowance for environmental measures
|
|
|
2,601
|
|
|
|
2,285
|
|
|
|
(315
|
)
|
|
Asset retirement obligations
|
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
|
Other current liabilities
|
|
|
2,880
|
|
|
|
2,888
|
|
|
|
7
|
|
|
Total current liabilities
|
|
|
593,508
|
|
|
|
688,735
|
|
|
|
95,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
1,241,983
|
|
|
|
1,214,633
|
|
|
|
(27,349
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
335,000
|
|
|
|
335,000
|
|
|
|
—
|
|
|
Capital surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
paid-in
capital
|
|
|
1,499,726
|
|
|
|
1,499,726
|
|
|
|
—
|
|
|
Total capital surplus
|
|
|
1,499,726
|
|
|
|
1,499,726
|
|
|
|
—
|
|
|
Earned surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other earned surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for special depreciation
|
|
|
1,657
|
|
|
|
1,092
|
|
|
|
(565
|
)
|
|
Reserve for reduction entry
|
|
|
13,197
|
|
|
|
13,197
|
|
|
|
(0
|
)
|
|
Accumulated earned surplus
|
|
|
342,336
|
|
|
|
433,169
|
|
|
|
90,833
|
|
|
Total earned surplus
|
|
|
357,191
|
|
|
|
447,459
|
|
|
|
90,267
|
|
|
Total shareholders’ equity
|
|
|
2,191,918
|
|
|
|
2,282,186
|
|
|
|
90,267
|
|
|
Unrealized gains (losses), translation adjustments, and others:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) on securities
|
|
|
4,119
|
|
|
|
4,271
|
|
|
|
152
|
|
|
Total unrealized gains (losses), translation adjustments, and others
|
|
|
4,119
|
|
|
|
4,271
|
|
|
|
152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NET ASSETS
|
|
|
2,196,037
|
|
|
|
2,286,457
|
|
|
|
90,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND NET ASSETS
|
|
|
3,438,021
|
|
|
|
3,501,091
|
|
|
|
63,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 9
–
3.
Non-Consolidated
Comparative Statements of
Income
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
Telecommunications businesses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
1,585,580
|
|
|
|
1,534,745
|
|
|
|
(50,834
|
)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business expenses
|
|
|
335,475
|
|
|
|
317,168
|
|
|
|
(18,307
|
)
|
|
Operations
|
|
|
8,189
|
|
|
|
7,869
|
|
|
|
(319
|
)
|
|
Maintenance expenses
|
|
|
391,871
|
|
|
|
383,994
|
|
|
|
(7,877
|
)
|
|
Overhead expenses
|
|
|
92,269
|
|
|
|
86,274
|
|
|
|
(5,994
|
)
|
|
Administration
|
|
|
84,482
|
|
|
|
86,732
|
|
|
|
2,250
|
|
|
Experiment and research
|
|
|
39,696
|
|
|
|
38,837
|
|
|
|
(859
|
)
|
|
Depreciation and amortization
|
|
|
337,474
|
|
|
|
290,191
|
|
|
|
(47,283
|
)
|
|
Retirement of fixed assets
|
|
|
54,569
|
|
|
|
55,725
|
|
|
|
1,155
|
|
|
Access charges
|
|
|
28,289
|
|
|
|
26,568
|
|
|
|
(1,721
|
)
|
|
Miscellaneous taxes
|
|
|
72,455
|
|
|
|
74,241
|
|
|
|
1,785
|
|
|
Total operating expenses
|
|
|
1,444,775
|
|
|
|
1,367,603
|
|
|
|
(77,172
|
)
|
|
Operating income from telecommunications businesses
|
|
|
140,804
|
|
|
|
167,142
|
|
|
|
26,337
|
|
|
Supplementary businesses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
136,726
|
|
|
|
137,497
|
|
|
|
770
|
|
|
Operating expenses
|
|
|
115,702
|
|
|
|
115,534
|
|
|
|
(168
|
)
|
|
Operating income from supplementary businesses
|
|
|
21,024
|
|
|
|
21,962
|
|
|
|
938
|
|
|
Operating income
|
|
|
161,828
|
|
|
|
189,104
|
|
|
|
27,276
|
|
|
Non-operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
138
|
|
|
|
26
|
|
|
|
(112
|
)
|
|
Dividends received
|
|
|
3,169
|
|
|
|
3,226
|
|
|
|
57
|
|
|
Gains on sales of fixed assets
|
|
|
7,789
|
|
|
|
14,363
|
|
|
|
6,574
|
|
|
Miscellaneous income
|
|
|
6,415
|
|
|
|
2,647
|
|
|
|
(3,767
|
)
|
|
Total
non-operating
revenues
|
|
|
17,512
|
|
|
|
20,263
|
|
|
|
2,750
|
|
|
Non-operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses
|
|
|
4,987
|
|
|
|
4,669
|
|
|
|
(317
|
)
|
|
Miscellaneous expenses
|
|
|
914
|
|
|
|
260
|
|
|
|
(653
|
)
|
|
Total
non-operating
expenses
|
|
|
5,901
|
|
|
|
4,930
|
|
|
|
(971
|
)
|
|
Recurring profit
|
|
|
173,439
|
|
|
|
204,438
|
|
|
|
30,998
|
|
|
Special losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on transfer of business
|
|
|
3,758
|
|
|
|
—
|
|
|
|
(3,758
|
)
|
|
Total special losses
|
|
|
3,758
|
|
|
|
—
|
|
|
|
(3,758
|
)
|
|
Income before income taxes
|
|
|
169,681
|
|
|
|
204,438
|
|
|
|
34,756
|
|
|
Corporation, inhabitant, and enterprise taxes
|
|
|
45,582
|
|
|
|
67,461
|
|
|
|
21,878
|
|
|
Deferred tax expenses (benefits)
|
|
|
5,312
|
|
|
|
(12,686
|
)
|
|
|
(17,999
|
)
|
|
Net income
|
|
|
118,786
|
|
|
|
149,663
|
|
|
|
30,877
|
|
– 10
–
4.
Non-Consolidated
Statements of Changes in
Shareholders’ Equity and Other Net Assets
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
March 31, 2016
|
|
(Millions of yen)
|
|
|
|
|
Shareholders’ equity
|
|
|
Unrealized gains
(losses), translation
adjustments, and others
|
|
|
Total net
assets
|
|
|
|
Common
stock
|
|
|
Capital surplus
|
|
|
Earned surplus
|
|
|
Total
shareholders’
equity
|
|
|
Net
unrealized
gains
(losses) on
securities
|
|
|
Total
unrealized
gains
(losses),
translation
adjustments,
and
others
|
|
|
|
|
|
Additional
paid-in
capital
|
|
|
Total
capital
surplus
|
|
|
Other earned surplus
|
|
|
Total
earned
surplus
|
|
|
|
|
|
|
|
|
|
|
Reserve
for special
depreciation
|
|
|
Reserve
for
reduction
entry
|
|
|
Accumulated
earned
surplus
|
|
|
|
|
|
|
|
April 1, 2015
|
|
|
335,000
|
|
|
|
1,499,726
|
|
|
|
1,499,726
|
|
|
|
2,241
|
|
|
|
12,890
|
|
|
|
356,773
|
|
|
|
371,905
|
|
|
|
2,206,632
|
|
|
|
3,305
|
|
|
|
3,305
|
|
|
|
2,209,938
|
|
|
Net change during the annual period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(133,500
|
)
|
|
|
(133,500
|
)
|
|
|
(133,500
|
)
|
|
|
|
|
|
|
|
|
|
|
(133,500
|
)
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
118,786
|
|
|
|
118,786
|
|
|
|
118,786
|
|
|
|
|
|
|
|
|
|
|
|
118,786
|
|
|
Provision of reserve for special depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
67
|
|
|
|
|
|
|
|
(67
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Return of reserve for special depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(651
|
)
|
|
|
|
|
|
|
651
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Provision of reserve for reduction entry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
307
|
|
|
|
(307
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Others, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
813
|
|
|
|
813
|
|
|
|
813
|
|
|
Total net change during the annual period
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(583
|
)
|
|
|
307
|
|
|
|
(14,437
|
)
|
|
|
(14,713
|
)
|
|
|
(14,713
|
)
|
|
|
813
|
|
|
|
813
|
|
|
|
(13,900
|
)
|
|
March 31, 2016
|
|
|
335,000
|
|
|
|
1,499,726
|
|
|
|
1,499,726
|
|
|
|
1,657
|
|
|
|
13,197
|
|
|
|
342,336
|
|
|
|
357,191
|
|
|
|
2,191,918
|
|
|
|
4,119
|
|
|
|
4,119
|
|
|
|
2,196,037
|
|
|
|
|
|
Year ended
March 31, 2017
|
|
(Millions of yen)
|
|
|
|
|
Shareholders’ equity
|
|
|
Unrealized gains
(losses), translation
adjustments, and others
|
|
|
Total net
assets
|
|
|
|
Common
stock
|
|
|
Capital surplus
|
|
|
Earned surplus
|
|
|
Total
shareholders’
equity
|
|
|
Net
unrealized
gains
(losses) on
securities
|
|
|
Total
unrealized
gains
(losses),
translation
adjustments,
and
others
|
|
|
|
|
|
Additional
paid-in
capital
|
|
|
Total
capital
surplus
|
|
|
Other earned surplus
|
|
|
Total
earned
surplus
|
|
|
|
|
|
|
|
|
|
|
Reserve
for
special
depreciation
|
|
|
Reserve
for
reduction
entry
|
|
|
Accumulated
earned
surplus
|
|
|
|
|
|
|
|
April 1, 2016
|
|
|
335,000
|
|
|
|
1,499,726
|
|
|
|
1,499,726
|
|
|
|
1,657
|
|
|
|
13,197
|
|
|
|
342,336
|
|
|
|
357,191
|
|
|
|
2,191,918
|
|
|
|
4,119
|
|
|
|
4,119
|
|
|
|
2,196,037
|
|
|
Net change during the annual period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(59,395
|
)
|
|
|
(59,395
|
)
|
|
|
(59,395
|
)
|
|
|
|
|
|
|
|
|
|
|
(59,395
|
)
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149,663
|
|
|
|
149,663
|
|
|
|
149,663
|
|
|
|
|
|
|
|
|
|
|
|
149,663
|
|
|
Provision of reserve for special depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90
|
|
|
|
|
|
|
|
(90
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Return of reserve for special depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(655
|
)
|
|
|
|
|
|
|
655
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Return of reserve for reduction entry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0
|
)
|
|
|
0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Others, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
152
|
|
|
|
152
|
|
|
|
152
|
|
|
Total net change during the annual period
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(565
|
)
|
|
|
(0
|
)
|
|
|
90,833
|
|
|
|
90,267
|
|
|
|
90,267
|
|
|
|
152
|
|
|
|
152
|
|
|
|
90,419
|
|
|
March 31, 2017
|
|
|
335,000
|
|
|
|
1,499,726
|
|
|
|
1,499,726
|
|
|
|
1,092
|
|
|
|
13,197
|
|
|
|
433,169
|
|
|
|
447,459
|
|
|
|
2,282,186
|
|
|
|
4,271
|
|
|
|
4,271
|
|
|
|
2,286,457
|
|
– 11
–
5. Business Results
(Non-Consolidated
Operating
Revenues)
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
Percent
Increase
(Decrease)
|
|
|
Voice transmission services revenues (excluding IP services revenues)
|
|
|
427,802
|
|
|
|
396,519
|
|
|
|
(31,282
|
)
|
|
|
(7.3
|
)
|
|
Monthly charge revenues*
|
|
|
321,137
|
|
|
|
299,992
|
|
|
|
(21,144
|
)
|
|
|
(6.6
|
)
|
|
Call rates revenues*
|
|
|
30,319
|
|
|
|
26,272
|
|
|
|
(4,046
|
)
|
|
|
(13.3
|
)
|
|
Interconnection call revenues*
|
|
|
51,118
|
|
|
|
45,606
|
|
|
|
(5,511
|
)
|
|
|
(10.8
|
)
|
|
IP services revenues
|
|
|
855,444
|
|
|
|
850,388
|
|
|
|
(5,056
|
)
|
|
|
(0.6
|
)
|
|
Leased circuit services revenues (excluding IP services revenues)
|
|
|
103,761
|
|
|
|
93,307
|
|
|
|
(10,454
|
)
|
|
|
(10.1
|
)
|
|
Telegram services revenues
|
|
|
12,812
|
|
|
|
11,422
|
|
|
|
(1,389
|
)
|
|
|
(10.8
|
)
|
|
Other telecommunications services revenues
|
|
|
185,759
|
|
|
|
183,107
|
|
|
|
(2,651
|
)
|
|
|
(1.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications total revenues
|
|
|
1,585,580
|
|
|
|
1,534,745
|
|
|
|
(50,834
|
)
|
|
|
(3.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary business total revenues
|
|
|
136,726
|
|
|
|
137,497
|
|
|
|
770
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
|
1,722,307
|
|
|
|
1,672,243
|
|
|
|
(50,064
|
)
|
|
|
(2.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 12
–
6.
Non-Consolidated
Comparative Statements of
Cash Flows
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
169,681
|
|
|
|
204,438
|
|
|
|
34,756
|
|
|
Depreciation and amortization
|
|
|
342,744
|
|
|
|
295,200
|
|
|
|
(47,544
|
)
|
|
Loss on disposal of property, plant and equipment
|
|
|
20,330
|
|
|
|
21,416
|
|
|
|
1,086
|
|
|
Increase (decrease) in liability for employees’ retirement benefits
|
|
|
3,300
|
|
|
|
11,446
|
|
|
|
8,145
|
|
|
(Increase) decrease in accounts receivable
|
|
|
14,232
|
|
|
|
(8,552
|
)
|
|
|
(22,784
|
)
|
|
(Increase) decrease in inventories
|
|
|
4,671
|
|
|
|
252
|
|
|
|
(4,418
|
)
|
|
Increase (decrease) in accounts payable and accrued expenses
|
|
|
19,826
|
|
|
|
(5,419
|
)
|
|
|
(25,245
|
)
|
|
Increase (decrease) in accrued consumption tax
|
|
|
(5,860
|
)
|
|
|
(5,229
|
)
|
|
|
631
|
|
|
Other
|
|
|
15,479
|
|
|
|
8,147
|
|
|
|
(7,332
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
584,406
|
|
|
|
521,702
|
|
|
|
(62,704
|
)
|
|
Interest and dividends received
|
|
|
3,276
|
|
|
|
3,252
|
|
|
|
(23
|
)
|
|
Interest paid
|
|
|
(4,997
|
)
|
|
|
(4,705
|
)
|
|
|
291
|
|
|
Income taxes received (paid)
|
|
|
(36,236
|
)
|
|
|
(47,742
|
)
|
|
|
(11,506
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
546,449
|
|
|
|
472,506
|
|
|
|
(73,942
|
)
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for property, plant and equipment
|
|
|
(288,142
|
)
|
|
|
(274,177
|
)
|
|
|
13,965
|
|
|
Proceeds from sale of property, plant and equipment
|
|
|
8,886
|
|
|
|
15,821
|
|
|
|
6,935
|
|
|
Payments for purchase of investment securities
|
|
|
(385
|
)
|
|
|
—
|
|
|
|
385
|
|
|
Proceeds from sale of investment securities
|
|
|
1,429
|
|
|
|
847
|
|
|
|
(581
|
)
|
|
Other
|
|
|
633
|
|
|
|
(86
|
)
|
|
|
(719
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
(277,578
|
)
|
|
|
(257,594
|
)
|
|
|
19,984
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for settlement of long-term debt
|
|
|
(66,220
|
)
|
|
|
(65,120
|
)
|
|
|
1,100
|
|
|
Payments for settlement of lease obligations
|
|
|
(541
|
)
|
|
|
(544
|
)
|
|
|
(3
|
)
|
|
Dividends paid
|
|
|
(133,500
|
)
|
|
|
(59,395
|
)
|
|
|
74,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(200,261
|
)
|
|
|
(125,059
|
)
|
|
|
75,201
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
68,609
|
|
|
|
89,852
|
|
|
|
21,243
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
138,672
|
|
|
|
207,281
|
|
|
|
68,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
|
|
207,281
|
|
|
|
297,134
|
|
|
|
89,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 13
–
Changes in Board of Directors
Scheduled Appointment or Resignation Date: June 23, 2017
(1) Candidates for Senior Vice President
Koji Nakae (Executive Manager, General
Affairs and Personnel Department; General Manager, Medical and Health Administration Center)
Takashi Torigoe
(General Manager, Chiba Division; General Manager, Chiba Branch, Chiba Division)
Koichi Takami (Vice President, Corporate
Strategy Planning Department, NTT)
(2) Candidate for Audit & Supervisory Board Member
Kiyoshi Kobayashi (Executive Director, Yu-cho Foundation)
(3) Senior Vice Presidents Scheduled to Resign from Office
Senior Vice
President Motoyasu Shibata (Scheduled to take office at NTT Solco & Hokkaido Telemart Corporation)
Senior Vice President Kenji Asano (Scheduled to take office at NTT INFRASTRUCTURE NETWORK CORPORATION)
(4) Audit & Supervisory Board Member Scheduled to Resign from Office
Full-time Auditor Hideharu Sasaki
(5) New Executive Positions and Organizational Responsibilities
Scheduled
Appointment Date: June 23, 2017
|
|
|
|
|
|
|
New Position(s) and
Organizational
Responsibilities
|
|
Name
|
|
Current Position(s) and
Organizational Responsibilities
|
|
Senior Executive Vice President, Representative Director;
Senior Executive Manager, New Business Development Headquarters
in charge of Risk Management; in charge of Corporate Strategy Planning; in charge of General Affairs and Personnel; in charge of Accounts
and Finance; in charge of Information Security
|
|
Fukuzo Inoue
|
|
Senior Executive Vice President, Representative Director;
Senior Executive Manager, New Business Development Headquarters
in charge of Risk Management; in
charge of Corporate Strategy Planning; in charge of General Affairs and Personnel; in charge of Accounts and Finance
|
|
|
|
|
|
Senior Vice President;
Deputy Senior Executive Manager, Corporate Sales Promotion Headquarters
|
|
Shinji Yano
|
|
Senior Vice President;
Executive Manager, Corporate Strategy Planning Department;
in charge of Information Security
|
|
|
|
|
|
Senior Vice President;
General
Manager, Miyagi Division; General Manager, Miyagi Branch, Miyagi Division; Executive Manager, Tohoku Future Network Design and Reconstruction Office
|
|
Hiroshi Nakamura
|
|
Senior Vice President;
Deputy
Senior Executive Manager, New Business Development Headquarters; Executive Manager, First Group, New Business Development Headquarters
|
|
|
|
|
|
Senior Vice President;
General
Manager, Tokyo Division
|
|
Hideyuki Noike
|
|
Senior Vice President;
General
Manager, Hokkaido Division; General Manager, Hokkaido Branch, Hokkaido Division
|
|
|
|
|
|
Senior Vice President; Executive Manager, General Affairs and Personnel Department; General Manager, Medical and Health Administration Center
|
|
Koji Nakae
|
|
|
|
|
|
|
|
Executive Manager, Sales Planning Department, Sales Promotion Headquarters; Executive Manager, Customer Service Department, Sales Promotion Headquarters
|
|
Takashi Torigoe
|
|
|
|
|
|
|
|
Senior Vice President;
Executive Manager, Corporate Strategy Planning Department
|
|
Koichi Takami
|
|
|
– 14
–
Scheduled Appointment Date: July 1, 2017
|
|
|
|
|
|
|
New Position(s) and Organizational
Responsibilities
|
|
Name
|
|
Current Position(s) and
Organizational Responsibilities
|
|
Senior Executive Vice President, Representative Director; Senior Executive Manager, Business Innovation Headquarters
|
|
Motoyuki Ii
|
|
Senior Executive Vice President, Representative Director;
Senior Executive Manager, Corporate Sales Promotion Headquarters
|
|
|
|
|
|
Senior Vice President; Deputy Senior Executive Manager, Business Innovation Headquarters
|
|
Shinji Yano
|
|
Senior Vice President; Deputy Senior Executive Manager, Corporate Sales Promotion Headquarters
|
|
|
|
|
|
Senior Vice President; Executive Manager, Plant Planning Department, Network Business Headquarters; Executive Manager Tokyo Olympic & Paralympic Promotion
Office
|
|
Naoki Shibutani
|
|
Senior Vice President;
Executive Manager, Plant Planning Department, Network Business Headquarters; in charge of 2020 Project
|
|
|
|
|
|
Senior Vice President;
Deputy
Senior Executive Manager, Business Innovation Headquarters; General Manager, Value Create Department, Business Innovation Headquarters
|
|
Kiyoshi Harada
|
|
Senior Vice President;
Deputy
Senior Executive Manager, Corporate Sales Promotion Headquarters; Executive Manager, Office Users Business Department, Corporate Sales Promotion Headquarters
|
|
|
|
|
|
Senior Vice President;
General
Manager, Tokyo Division; Executive Manager, Tokyo Olympic & Paralympic Promotion Office, Tokyo Division
|
|
Hideyuki Noike
|
|
Senior Vice President;
General
Manager, Tokyo Division
|
– 15
–
Note:
|
|
•
|
|
Kiyoshi Kobayashi, who is a candidate for the new Auditor & Supervisory Board Member, is a candidate for Outside Audit & Supervisory
Board Member.
|
|
|
•
|
|
Senior Vice Presidents scheduled to resign from the office are expected to resign at the conclusion of the 18
th
Ordinary General Meeting of Shareholders to be held on June 23,
2017.
|
|
|
•
|
|
Auditor & Supervisory Board Member scheduled to resign from the office is expected to resign at the conclusion of the 18
th
Ordinary General Meeting of Shareholders to be held on June 23,
2017.
|
– 16
–
May 15, 2017
FOR IMMEDIATE RELEASE
Financial Results for the Fiscal Year Ended
March 31, 2017
The financial results of Nippon Telegraph and Telephone West Corporation (NTT West) for the fiscal year ended
March 31, 2017 are presented in the following attachments.
(Attachments)
|
1.
|
Summary of Results for Fiscal Year Ended March 31, 2017
|
|
2.
|
Non-Consolidated
Comparative Balance Sheets
|
|
3.
|
Non-Consolidated
Comparative Statements of Income
|
|
4.
|
Non-Consolidated
Statements of Changes in Shareholders’ Equity and Other Net Assets
|
|
5.
|
Business Results
(Non-Consolidated
Operating Revenues)
|
|
6.
|
Non-Consolidated
Comparative Statements of Cash Flows
|
|
7.
|
Changes in Board of Directors
|
For inquiries,
please contact:
Junichiro Maekawa or Ryosuke Yamashita
Accounting Section, Finance Division
Nippon Telegraph and Telephone West Corporation
Tel:
+81-6-4793-3141
E-mail:
kessan-info@west.ntt.co.jp
1. Summary of Results for the Fiscal Year Ended March 31, 2017
Information and communications services are expected to make significant contributions to invigorating and increasing the
efficiency of social and economic activities, improving lifestyle convenience and vitalizing local economies through advances in the development of new technologies such as AI, Big Data, and IoT. Accordingly, the government and the private sector
are working in partnership to achieve the development of a new
ICT-oriented
society.
Moreover, the information and telecommunications market is undergoing structural changes as a result of the shift to broadband and globalization, as well as the spread of smart devices and social media,
leading to increasingly sophisticated and diversified needs and patterns of usage. There have also been changes in market structure, including an increase in the utilization of Big Data and IoT as well as an expansion of platform services and cloud
services. Regional telecommunications markets are also undergoing significant changes due to competition between the providers of fiber-optic access-based line services and cable television-based broadband services, competition between the various
services made available by faster mobile connections, the convergence of fixed and mobile services and of telecommunications and broadcasting, and the convergence of services through the use of a diverse range of wireless devices.
Within this challenging and dramatically changing business environment, NTT West strove to ensure its reliability and
fairness in telecommunications by, for example, promoting the smooth migration to optical,
IP-based
networks and enhancing the fiber-optic access network that is the base of broadband services, while
continuing to provide high-quality, stable universal services.
NTT West also aimed to realize a broadband
network environment that enables customers to connect ¥anytime, anywhere, and with anyone or anything, in comfort, safety, and with peace of mind, and to provide various reasonably priced calling plans that match each customer’s patterns of
usage, and a wide range of services.
|
<1>
|
Efforts to Promote Fiber-optic and IP services
|
In relation to the promotion of fiber-optic and IP services, NTT West worked to provide a more comfortable, safer, and more secure next generation network (NGN). NTT West was committed to expanding its
services that make use of fiber-optic access lines, such as Hikari Denwa and video distribution services. NTT West also aimed to develop services for businesses, further deliver appropriate and fair provision of the Hikari Collaboration Model to
various service providers, and create new services by promoting business alliances, while at the same time also improving on its services and quality.
– 1
–
For Hikari access services, as with the previous period, with respect to the
“Hikari Collaboration Model,” the wholesale provision of “FLET’S Hikari” and other services to various service providers, NTT West worked to further expand its services by proactively cultivating new service providers while
also engaging in support activities for existing service providers.
As of the fiscal year ended
March 31, 2017, the number of service providers of the model exceeded 380, and the number of subscriptions exceeded 3 million.
In addition, NTT West worked to smoothly transition its customers from “B FLET’S (for Condominium Type, Family 100 Type, Business Type, and Basic Type)” and “FLET’S Hikari
Premium” to the high-performing “FLET’S Hikari Next” in order to ensure that they are able to have a more comfortable internet experience.
For “FLET’S Hikari” services, NTT West made efforts to improve its membership program, “CLUB
NTT-West,”
aimed at retaining its customers,
by, among other things, providing a wider range of products for which membership program points can be redeemed.
As a result, the number of subscriptions for Hikari access services as a whole exceeded 8.8 million as of the fiscal year ended March 31, 2017.
In the area of optical IP telephone services, the total number of corporate IP telephone customers, which include
“Hikari Denwa Office A (Ace)” and “Hikari Denwa Office Type,” exceeded the 2 million channel level on September 5, 2016.
In the area of
Wi-Fi
services, NTT West worked to expand the coverage area of “Gotouchi Free
Wi-Fi”
in
collaboration with local governments in an effort to contribute to the revitalization of local governments by establishing a foundation for ICT. As of March 31, 2017, more than 80 local governments in 29 different prefectures utilized the
Wi-Fi
network.
|
<2>
|
Initiatives in the Solutions Business
|
NTT West continued to proactively offer alliances and solution proposals to companies and local governments as it did in the previous year, and has been deploying “Smart Hikari Solutions” to
satisfy regional customers’ needs through the utilization of ICT.
Some of the new
service developments through alliances included collaborating with Sekisui Chemical Co., Ltd, to carry out a field trial of remote operations on water supply management, water levels, and temperature control in agricultural settings to test the
utilization of LPWA
(low-power,
wide area) networks that can cover a wide area at low power consumption, as required for IoT, which aims to connect everything through the internet. In addition, in
collaboration with Daikin Industries, Ltd., NTT West conducted a field trial by connecting an air conditioner to an LPWA network in order to constantly monitor the operating status of the air conditioner as well as indoor and outdoor spatial
information. Furthermore, through its collaboration with Faith, Inc., NTT West launched the “FaRao PRO Hikari
Box
+
,” an
all-in-one
service to support store management operations that includes
in-store
background music services, signage, and security cameras, among other features. In
addition, in collaboration with Hyakusenrenma, Inc., NTT worked on the trial version of “Minpaku Support Pack,” a complete support solution package that establishes a communication environment for vacation rentals by owners (VRBO), or
minpaku
owners, and provides various types of services for lodgers at
minpaku
, to facilitate a comfortable, convenient and officially authorized
minpaku
environment, which is an area of expected rapid future growth.
– 2
–
NTT West also works to expand its service offerings by, for example,
launching “Hikari Cloud PBX,” which aims to use cloud services to provide fundamental private branch exchange (PBX) functions, including extension number and group call functions for telephone systems.
|
<3>
|
Status of Business Operation Structure
|
As part of its efforts to “create a safe and secure society,” NTT West established a summit task force for the
Ise-Shima
G7 Summit held in Mie Prefecture
in May 2016. NTT West contributed to the smooth operation of the Summit by setting up a Summit Response Headquarters, coordinating with local branches to reinforce its maintenance capabilities, and strengthening its security systems against
cyber-attacks.
In the area of disaster preparedness, when the Kumamoto earthquakes occurred in April 2016,
NTT West quickly established a wide-area support system which included various other regions, thereby enabling the early recovery of services and the restoration of its facilities. Furthermore, NTT West worked to provide means of communication, such
as disaster message dialing services, special public
Wi-Fi,
special public telephones and portable satellite telephones, for customers to use to confirm their safety and for the communication of disaster
information in afflicted areas.
In addition, NTT West entered into an “Agreement on the Installation and
Usage of Special Public Telephones” with various local governments, and
pre-installed
special public telephones, in order to provide immediate means of communication to people who have been evacuated when
evacuation centers are established after large-scale disasters occur in the future.
NTT West also implemented
measures to prevent accidents involving facilities, such as planned facility inspections, with the goal of eliminating third-party accidents caused by fallen lines. To prevent site accidents involving physical injury, NTT West worked to expand its
safety measures by establishing a timeframe for improving safety promotion initiatives.
As part of its
efforts to further enhance its management efficiency, NTT West worked to reduce material costs by utilizing device equipment and streamlining procurement operations for materials, and improving the efficiency of fiber optic service installations.
– 3
–
|
<4>
|
Corporate Social Responsibility (“CSR”) Activities
|
In the area of CSR promotion, the “NTT Group CSR Charter” (revised on May 12, 2016) provides that, as a
“Value Partner” for customers, NTT Group companies will provide services of the highest quality and reliability and contribute to the development of a safe, secure and prosperous society in which people, society and the earth are connected
through “communications.” Based on the NTT Group CSR Charter, NTT West established three core CSR principles – “thorough compliance,” “development of a safe and secure society,” and “creation of value through
business activities” – as well as a “visualization” benchmark for activities that support these principles. Each NTT West employee takes part in CSR activities, including working to maintain legal compliance, providing safe and
reliable communication services, and reducing the burden on the environment.
To ensure “thorough
compliance,” NTT West Group has focused on promoting group-wide initiatives in high-risk areas that have the potential to erode the trust of the general public and of consumers in NTT West group companies, namely eradicating
“on-the-job
misconduct,” “driving while under the influence,” “information security incidents” and “power harassment” as well as
observing “respect for human rights,” by making posters to promote awareness and providing training programs for all employees in order to ensure compliance by increasing knowledge and preventing recurrence.
In the area of activities to give back to the community, since 1983, NTT West has continued to publish “Denwa Onegai
Techo (Telephone Request Handbook) (Pamphlet Version)” as a communication tool that allows people with hearing or speech difficulties to write out their matters of concern or contacts in order to assist them in seeking help from those around
them when they are away from home. In recent years, given that mobile devices with internet connectivity (such as smartphones and feature phones) have become widespread, NTT West developed the “Denwa Onegai Techo (Telephone Request Handbook)
(Web/App Version)” in order to enhance user convenience, and launched the service on December 21, 2016.
Based on the “Green NTT West Strategy” established in June 2012, in order to “achieve its environmental grand design,” NTT West has been working to decrease its environmental burden by
decreasing power usage, the amount of paper it uses, and the volume of its waste products. In addition, NTT West also worked on protecting the earth’s environment by undertaking community-based activities centered around tree-planting and plant
growing, grass-cutting and cleaning activities pursuant to the “NTT West Midori Ippai Project” in order to “promote biodiversity preservation activities.”
NTT West has been promoting its group-wide CSR activities and enhancing its environmental management while instilling the
principles of the NTT Group CSR Charter. NTT West also issued the “NTT West Group CSR Report 2016” and the “NTT West Group Environmental Annual Report 2016” to proactively disclose relevant information to its stakeholders.
– 4
–
As a result of the above, operating revenues totaled 1,479.0 billion yen (a decrease of 3.2% from the previous fiscal year), operating income was 95.1 billion yen (an increase of 28.5% from the
previous fiscal year), income before income taxes was 88.1 billion yen (an increase of 31.3% from the previous fiscal year), and net profit was 59.7 billion yen (a decrease of 17.5% from the previous fiscal year).
– 5
–
2.
Non-Consolidated
Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
March 31, 2016
|
|
|
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets - telecommunications businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery and equipment
|
|
|
371,004
|
|
|
|
297,757
|
|
|
|
(73,247
|
)
|
|
Antenna facilities
|
|
|
6,224
|
|
|
|
5,895
|
|
|
|
(328
|
)
|
|
Terminal equipment
|
|
|
17,166
|
|
|
|
11,318
|
|
|
|
(5,847
|
)
|
|
Local line facilities
|
|
|
993,040
|
|
|
|
1,051,300
|
|
|
|
58,260
|
|
|
Long-distance line facilities
|
|
|
2,138
|
|
|
|
1,693
|
|
|
|
(445
|
)
|
|
Engineering facilities
|
|
|
530,501
|
|
|
|
517,724
|
|
|
|
(12,776
|
)
|
|
Submarine line facilities
|
|
|
3,587
|
|
|
|
3,131
|
|
|
|
(456
|
)
|
|
Buildings
|
|
|
327,911
|
|
|
|
312,924
|
|
|
|
(14,987
|
)
|
|
Structures
|
|
|
13,445
|
|
|
|
10,918
|
|
|
|
(2,526
|
)
|
|
Other machinery and equipment
|
|
|
1,359
|
|
|
|
1,036
|
|
|
|
(322
|
)
|
|
Vehicles and vessels
|
|
|
371
|
|
|
|
294
|
|
|
|
(77
|
)
|
|
Tools, furniture and fixtures
|
|
|
31,513
|
|
|
|
34,425
|
|
|
|
2,912
|
|
|
Land
|
|
|
173,841
|
|
|
|
173,092
|
|
|
|
(749
|
)
|
|
Lease assets
|
|
|
165
|
|
|
|
151
|
|
|
|
(13
|
)
|
|
Construction in progress
|
|
|
18,488
|
|
|
|
31,294
|
|
|
|
12,806
|
|
|
Total property, plant and equipment
|
|
|
2,490,761
|
|
|
|
2,452,960
|
|
|
|
(37,801
|
)
|
|
Intangible fixed assets
|
|
|
65,914
|
|
|
|
64,444
|
|
|
|
(1,470
|
)
|
|
Total fixed assets - telecommunications businesses
|
|
|
2,556,676
|
|
|
|
2,517,404
|
|
|
|
(39,271
|
)
|
|
Investments and other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
4,994
|
|
|
|
4,243
|
|
|
|
(750
|
)
|
|
Investments in subsidiaries and affiliated companies
|
|
|
38,481
|
|
|
|
40,001
|
|
|
|
1,520
|
|
|
Investment in capital
|
|
|
637
|
|
|
|
610
|
|
|
|
(26
|
)
|
|
Long-term prepaid expenses
|
|
|
3,411
|
|
|
|
3,971
|
|
|
|
560
|
|
|
Prepaid pension costs
|
|
|
—
|
|
|
|
3,439
|
|
|
|
3,439
|
|
|
Deferred income taxes
|
|
|
116,066
|
|
|
|
128,900
|
|
|
|
12,833
|
|
|
Other investments and assets
|
|
|
6,660
|
|
|
|
6,438
|
|
|
|
(222
|
)
|
|
Allowance for doubtful accounts
|
|
|
(638
|
)
|
|
|
(681
|
)
|
|
|
(43
|
)
|
|
Total investments and other assets
|
|
|
169,613
|
|
|
|
186,924
|
|
|
|
17,311
|
|
|
Total fixed assets
|
|
|
2,726,289
|
|
|
|
2,704,329
|
|
|
|
(21,960
|
)
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and bank deposits
|
|
|
21,765
|
|
|
|
18,251
|
|
|
|
(3,514
|
)
|
|
Accounts receivable, trade
|
|
|
201,155
|
|
|
|
199,820
|
|
|
|
(1,334
|
)
|
|
Accounts receivable, other
|
|
|
89,674
|
|
|
|
79,402
|
|
|
|
(10,272
|
)
|
|
Securities
|
|
|
6
|
|
|
|
6
|
|
|
|
—
|
|
|
Supplies
|
|
|
34,656
|
|
|
|
29,950
|
|
|
|
(4,705
|
)
|
|
Advance payments
|
|
|
3,867
|
|
|
|
4,592
|
|
|
|
724
|
|
|
Prepaid expenses
|
|
|
6,281
|
|
|
|
6,688
|
|
|
|
406
|
|
|
Deferred income taxes
|
|
|
5,543
|
|
|
|
4,944
|
|
|
|
(598
|
)
|
|
Deposits
|
|
|
50,000
|
|
|
|
48,000
|
|
|
|
(2,000
|
)
|
|
Other current assets
|
|
|
8,537
|
|
|
|
8,082
|
|
|
|
(455
|
)
|
|
Allowance for doubtful accounts
|
|
|
(514
|
)
|
|
|
(339
|
)
|
|
|
174
|
|
|
Total current assets
|
|
|
420,973
|
|
|
|
399,398
|
|
|
|
(21,574
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
3,147,263
|
|
|
|
3,103,728
|
|
|
|
(43,534
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 6
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
March 31, 2016
|
|
|
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings from parent company
|
|
|
651,707
|
|
|
|
591,000
|
|
|
|
(60,707
|
)
|
|
Lease obligations
|
|
|
706
|
|
|
|
678
|
|
|
|
(28
|
)
|
|
Liability for employees’ retirement benefits
|
|
|
233,574
|
|
|
|
242,251
|
|
|
|
8,677
|
|
|
Reserve for point services
|
|
|
4,672
|
|
|
|
3,792
|
|
|
|
(879
|
)
|
|
Reserve for unused telephone cards
|
|
|
8,200
|
|
|
|
8,000
|
|
|
|
(200
|
)
|
|
Allowance for environmental measures
|
|
|
9,074
|
|
|
|
9,074
|
|
|
|
—
|
|
|
Asset retirement obligations
|
|
|
361
|
|
|
|
228
|
|
|
|
(132
|
)
|
|
Other long-term liabilities
|
|
|
4,837
|
|
|
|
4,071
|
|
|
|
(765
|
)
|
|
Total long-term liabilities
|
|
|
913,134
|
|
|
|
859,097
|
|
|
|
(54,036
|
)
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term borrowings from parent company
|
|
|
127,120
|
|
|
|
110,707
|
|
|
|
(16,412
|
)
|
|
Accounts payable, trade
|
|
|
70,067
|
|
|
|
71,635
|
|
|
|
1,567
|
|
|
Short-term borrowings
|
|
|
142,465
|
|
|
|
105,259
|
|
|
|
(37,205
|
)
|
|
Lease obligations
|
|
|
198
|
|
|
|
191
|
|
|
|
(6
|
)
|
|
Accounts payable, other
|
|
|
178,421
|
|
|
|
199,133
|
|
|
|
20,712
|
|
|
Accrued expenses
|
|
|
14,368
|
|
|
|
13,572
|
|
|
|
(795
|
)
|
|
Accrued taxes on income
|
|
|
8,102
|
|
|
|
8,731
|
|
|
|
629
|
|
|
Advances received
|
|
|
2,814
|
|
|
|
2,184
|
|
|
|
(630
|
)
|
|
Deposits received
|
|
|
129,490
|
|
|
|
143,945
|
|
|
|
14,455
|
|
|
Unearned revenues
|
|
|
16
|
|
|
|
15
|
|
|
|
(1
|
)
|
|
Allowance for loss on disaster
|
|
|
—
|
|
|
|
4,096
|
|
|
|
4,096
|
|
|
Allowance for environmental measures
|
|
|
2,467
|
|
|
|
2,361
|
|
|
|
(106
|
)
|
|
Asset retirement obligations
|
|
|
—
|
|
|
|
133
|
|
|
|
133
|
|
|
Other current liabilities
|
|
|
2,631
|
|
|
|
3,307
|
|
|
|
676
|
|
|
Total current liabilities
|
|
|
678,163
|
|
|
|
665,277
|
|
|
|
(12,886
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
1,591,297
|
|
|
|
1,524,374
|
|
|
|
(66,922
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
312,000
|
|
|
|
312,000
|
|
|
|
—
|
|
|
Capital surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
paid-in
capital
|
|
|
1,170,054
|
|
|
|
1,170,054
|
|
|
|
—
|
|
|
Total capital surplus
|
|
|
1,170,054
|
|
|
|
1,170,054
|
|
|
|
—
|
|
|
Earned surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other earned surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated earned surplus
|
|
|
73,358
|
|
|
|
96,911
|
|
|
|
23,553
|
|
|
Total earned surplus
|
|
|
73,358
|
|
|
|
96,911
|
|
|
|
23,553
|
|
|
Total shareholders’ equity
|
|
|
1,555,412
|
|
|
|
1,578,965
|
|
|
|
23,553
|
|
|
Unrealized gains (losses), translation adjustments, and others:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) on securities
|
|
|
553
|
|
|
|
388
|
|
|
|
(164
|
)
|
|
Total unrealized gains (losses), translation adjustments, and others
|
|
|
553
|
|
|
|
388
|
|
|
|
(164
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NET ASSETS
|
|
|
1,555,965
|
|
|
|
1,579,353
|
|
|
|
23,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND NET ASSETS
|
|
|
3,147,263
|
|
|
|
3,103,728
|
|
|
|
(43,534
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 7
–
3. Non-Consolidated Comparative Statements of Income
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
Telecommunications businesses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
1,372,571
|
|
|
|
1,325,585
|
|
|
|
(46,986
|
)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business expenses
|
|
|
323,076
|
|
|
|
296,688
|
|
|
|
(26,388
|
)
|
|
Operations
|
|
|
10,176
|
|
|
|
9,648
|
|
|
|
(527
|
)
|
|
Maintenance expenses
|
|
|
347,429
|
|
|
|
339,119
|
|
|
|
(8,309
|
)
|
|
Overhead expenses
|
|
|
60,167
|
|
|
|
57,449
|
|
|
|
(2,718
|
)
|
|
Administration
|
|
|
72,246
|
|
|
|
71,346
|
|
|
|
(899
|
)
|
|
Experiment and research
|
|
|
39,522
|
|
|
|
38,947
|
|
|
|
(574
|
)
|
|
Depreciation and amortization
|
|
|
313,724
|
|
|
|
284,405
|
|
|
|
(29,318
|
)
|
|
Retirement of fixed assets
|
|
|
55,995
|
|
|
|
53,012
|
|
|
|
(2,983
|
)
|
|
Access charges
|
|
|
25,485
|
|
|
|
26,035
|
|
|
|
549
|
|
|
Miscellaneous taxes
|
|
|
65,116
|
|
|
|
65,831
|
|
|
|
715
|
|
|
Total operating expenses
|
|
|
1,312,941
|
|
|
|
1,242,485
|
|
|
|
(70,455
|
)
|
|
Operating income from telecommunications businesses
|
|
|
59,630
|
|
|
|
83,099
|
|
|
|
23,469
|
|
|
Supplementary businesses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
155,452
|
|
|
|
153,430
|
|
|
|
(2,021
|
)
|
|
Operating expenses
|
|
|
141,010
|
|
|
|
141,343
|
|
|
|
333
|
|
|
Operating income from supplementary businesses
|
|
|
14,442
|
|
|
|
12,086
|
|
|
|
(2,355
|
)
|
|
Operating income
|
|
|
74,072
|
|
|
|
95,186
|
|
|
|
21,113
|
|
|
|
|
|
|
|
Non-operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
2
|
|
|
|
0
|
|
|
|
(1
|
)
|
|
Interest on securities
|
|
|
1
|
|
|
|
11
|
|
|
|
10
|
|
|
Dividends received
|
|
|
1,568
|
|
|
|
615
|
|
|
|
(952
|
)
|
|
Miscellaneous income
|
|
|
4,205
|
|
|
|
2,330
|
|
|
|
(1,874
|
)
|
|
Total
non-operating
revenues
|
|
|
5,775
|
|
|
|
2,957
|
|
|
|
(2,817
|
)
|
|
|
|
|
|
|
Non-operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses
|
|
|
9,410
|
|
|
|
7,114
|
|
|
|
(2,295
|
)
|
|
Miscellaneous expenses
|
|
|
3,290
|
|
|
|
2,875
|
|
|
|
(415
|
)
|
|
Total
non-operating
expenses
|
|
|
12,701
|
|
|
|
9,989
|
|
|
|
(2,711
|
)
|
|
Recurring profit
|
|
|
67,146
|
|
|
|
88,154
|
|
|
|
21,007
|
|
|
|
|
|
|
|
Special losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special loss on disaster
|
|
|
—
|
|
|
|
6,915
|
|
|
|
6,915
|
|
|
Total special losses
|
|
|
—
|
|
|
|
6,915
|
|
|
|
6,915
|
|
|
Income before income taxes
|
|
|
67,146
|
|
|
|
81,239
|
|
|
|
14,092
|
|
|
Corporation, inhabitant, and enterprise taxes
|
|
|
21,449
|
|
|
|
33,631
|
|
|
|
12,182
|
|
|
Deferred tax expenses (benefits)
|
|
|
(26,727
|
)
|
|
|
(12,162
|
)
|
|
|
14,564
|
|
|
Net income
|
|
|
72,425
|
|
|
|
59,770
|
|
|
|
(12,655
|
)
|
– 8
–
4.
Non-Consolidated
Statements of Changes in
Shareholders’ Equity and Other Net Assets
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
March 31,2016
|
|
(Millions of yen)
|
|
|
|
|
Shareholders’ equity
|
|
|
Unrealized gains (losses),
translation adjustments, and
others
|
|
|
Total net
assets
|
|
|
|
Common
stock
|
|
|
Capital surplus
|
|
|
Earned surplus
|
|
|
Total
shareholders’
equity
|
|
|
Net unrealized
gains (losses)
on securities
|
|
|
Total
unrealized
gains
(losses),
translation
adjustments,
and others
|
|
|
|
|
|
|
|
|
Other earned
surplus
|
|
|
Total earned
surplus
|
|
|
|
|
|
|
|
|
Additional
paid-in capital
|
|
|
Total capital
surplus
|
|
|
Accumulated
earned
surplus
|
|
|
|
|
|
|
|
April 1, 2015
|
|
|
312,000
|
|
|
|
1,170,054
|
|
|
|
1,170,054
|
|
|
|
15,934
|
|
|
|
15,934
|
|
|
|
1,497,988
|
|
|
|
738
|
|
|
|
738
|
|
|
|
1,498,726
|
|
|
Net change during the annual period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15,000
|
)
|
|
|
(15,000
|
)
|
|
|
(15,000
|
)
|
|
|
|
|
|
|
|
|
|
|
(15,000
|
)
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72,425
|
|
|
|
72,425
|
|
|
|
72,425
|
|
|
|
|
|
|
|
|
|
|
|
72,425
|
|
|
Others, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(185
|
)
|
|
|
(185
|
)
|
|
|
(185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net change during the annual period
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
57,424
|
|
|
|
57,424
|
|
|
|
57,424
|
|
|
|
(185
|
)
|
|
|
(185
|
)
|
|
|
57,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
312,000
|
|
|
|
1,170,054
|
|
|
|
1,170,054
|
|
|
|
73,358
|
|
|
|
73,358
|
|
|
|
1,555,412
|
|
|
|
553
|
|
|
|
553
|
|
|
|
1,555,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
March 31, 2017
|
|
(Millions of yen)
|
|
|
|
|
Shareholders’ equity
|
|
|
Unrealized gains (losses),
translation adjustments, and
others
|
|
|
Total net
assets
|
|
|
|
Common
stock
|
|
|
Capital surplus
|
|
|
Earned surplus
|
|
|
Total
shareholders’
equity
|
|
|
Net unrealized
gains (losses)
on securities
|
|
|
Total
unrealized
gains
(losses),
translation
adjustments,
and
others
|
|
|
|
|
|
|
|
|
Other earned
surplus
|
|
|
Total earned
surplus
|
|
|
|
|
|
|
|
|
Additional
paid-in capital
|
|
|
Total capital
surplus
|
|
|
Accumulated
earned
surplus
|
|
|
|
|
|
|
|
April 1, 2016
|
|
|
312,000
|
|
|
|
1,170,054
|
|
|
|
1,170,054
|
|
|
|
73,358
|
|
|
|
73,358
|
|
|
|
1,555,412
|
|
|
|
553
|
|
|
|
553
|
|
|
|
1,555,965
|
|
|
Net change during the annual period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(36,216
|
)
|
|
|
(36,216
|
)
|
|
|
(36,216
|
)
|
|
|
|
|
|
|
|
|
|
|
(36,216
|
)
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59,770
|
|
|
|
59,770
|
|
|
|
59,770
|
|
|
|
|
|
|
|
|
|
|
|
59,770
|
|
|
Others, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(164
|
)
|
|
|
(164
|
)
|
|
|
(164
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net change during the annual period
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,553
|
|
|
|
23,553
|
|
|
|
23,553
|
|
|
|
(164
|
)
|
|
|
(164
|
)
|
|
|
23,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
312,000
|
|
|
|
1,170,054
|
|
|
|
1,170,054
|
|
|
|
96,911
|
|
|
|
96,911
|
|
|
|
1,578,965
|
|
|
|
388
|
|
|
|
388
|
|
|
|
1,579,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 9
–
5. Business Results
(Non-Consolidated
Operating
Revenues)
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
Percent
Increase
(Decrease)
|
|
|
Voice transmission services revenues (excluding IP services revenues)
|
|
|
428,645
|
|
|
|
396,272
|
|
|
|
(32,372
|
)
|
|
|
(7.6
|
)
|
|
Monthly charge revenues*
|
|
|
319,687
|
|
|
|
298,340
|
|
|
|
(21,347
|
)
|
|
|
(6.7
|
)
|
|
Call rates revenues*
|
|
|
28,259
|
|
|
|
24,590
|
|
|
|
(3,669
|
)
|
|
|
(13.0
|
)
|
|
Interconnection call revenues*
|
|
|
55,840
|
|
|
|
49,676
|
|
|
|
(6,164
|
)
|
|
|
(11.0
|
)
|
|
IP services revenues
|
|
|
702,712
|
|
|
|
697,252
|
|
|
|
(5,460
|
)
|
|
|
(0.8
|
)
|
|
Leased circuit services revenues (excluding IP services revenues)
|
|
|
93,383
|
|
|
|
86,362
|
|
|
|
(7,020
|
)
|
|
|
(7.5
|
)
|
|
Telegram services revenues
|
|
|
14,088
|
|
|
|
12,625
|
|
|
|
(1,462
|
)
|
|
|
(10.4
|
)
|
|
Other telecommunications services revenues
|
|
|
133,741
|
|
|
|
133,071
|
|
|
|
(669
|
)
|
|
|
(0.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications total revenues
|
|
|
1,372,571
|
|
|
|
1,325,585
|
|
|
|
(46,986
|
)
|
|
|
(3.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary business total revenues
|
|
|
155,452
|
|
|
|
153,430
|
|
|
|
(2,021
|
)
|
|
|
(1.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
|
1,528,023
|
|
|
|
1,479,015
|
|
|
|
(49,008
|
)
|
|
|
(3.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 10
–
6.
Non-Consolidated
Comparative Statements of
Cash Flows
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
67,146
|
|
|
|
81,239
|
|
|
|
14,092
|
|
|
Depreciation and amortization
|
|
|
317,082
|
|
|
|
287,620
|
|
|
|
(29,462
|
)
|
|
Loss on disposal of property, plant and equipment
|
|
|
26,641
|
|
|
|
19,285
|
|
|
|
(7,355
|
)
|
|
Increase (decrease) in liability for employees’ retirement benefits
|
|
|
3,621
|
|
|
|
8,677
|
|
|
|
5,055
|
|
|
(Increase) decrease in accounts receivable
|
|
|
5,852
|
|
|
|
11,377
|
|
|
|
5,525
|
|
|
(Increase) decrease in inventories
|
|
|
(902
|
)
|
|
|
4,599
|
|
|
|
5,502
|
|
|
Increase (decrease) in accounts payable and accrued expenses
|
|
|
(8,759
|
)
|
|
|
7,799
|
|
|
|
16,559
|
|
|
Increase (decrease) in accrued consumption tax
|
|
|
(4,085
|
)
|
|
|
(2,241
|
)
|
|
|
1,844
|
|
|
Other
|
|
|
(5,957
|
)
|
|
|
21,841
|
|
|
|
27,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
400,637
|
|
|
|
440,199
|
|
|
|
39,561
|
|
|
Interest and dividends received
|
|
|
1,571
|
|
|
|
628
|
|
|
|
(942
|
)
|
|
Interest paid
|
|
|
(9,477
|
)
|
|
|
(7,575
|
)
|
|
|
1,902
|
|
|
Income taxes received (paid)
|
|
|
(5,528
|
)
|
|
|
(24,428
|
)
|
|
|
(18,900
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
387,203
|
|
|
|
408,824
|
|
|
|
21,620
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for property, plant and equipment
|
|
|
(284,746
|
)
|
|
|
(261,759
|
)
|
|
|
22,986
|
|
|
Proceeds from sale of property, plant and equipment
|
|
|
2,275
|
|
|
|
650
|
|
|
|
(1,624
|
)
|
|
Payments for purchase of investment securities
|
|
|
(865
|
)
|
|
|
(3,100
|
)
|
|
|
(2,235
|
)
|
|
Proceeds from sale of investment securities
|
|
|
462
|
|
|
|
576
|
|
|
|
113
|
|
|
Other
|
|
|
265
|
|
|
|
61
|
|
|
|
(203
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
(282,607
|
)
|
|
|
(263,571
|
)
|
|
|
19,036
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
|
—
|
|
|
|
50,000
|
|
|
|
50,000
|
|
|
Payments for settlement of long-term debt
|
|
|
(175,600
|
)
|
|
|
(127,120
|
)
|
|
|
48,480
|
|
|
Net increase (decrease) in short-term borrowings
|
|
|
67,462
|
|
|
|
(37,205
|
)
|
|
|
(104,667
|
)
|
|
Payments for settlement of lease obligations
|
|
|
(227
|
)
|
|
|
(224
|
)
|
|
|
2
|
|
|
Dividends paid
|
|
|
(15,000
|
)
|
|
|
(36,216
|
)
|
|
|
(21,216
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(123,365
|
)
|
|
|
(150,766
|
)
|
|
|
(27,401
|
)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(18,769
|
)
|
|
|
(5,514
|
)
|
|
|
13,255
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
90,535
|
|
|
|
71,765
|
|
|
|
(18,769
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
|
|
71,765
|
|
|
|
66,251
|
|
|
|
(5,514
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 11
–
7. CHANGES IN BOARD OF DIRECTORS
Scheduled appointment date: June 23, 2017
(1) Candidates for Members of the Board
Kunihiro Yamada (Executive Manager, Fiber Access
Collaboration Department, Alliance Business Headquarters)
Keiji Ueyama (General Manager, Kumamoto Branch; and Deputy Senior Executive
Manager, Kyusyu Regional Headquarters)
Masanori Ozawa (Vice President, General Affairs Department, Nippon Telegraph and Telephone
Corporation)
(2) Members of the Board scheduled to resign from office
Kazunari Furugen (Scheduled to take office at Nippon COMSYS Corporation)
Mikihiro Kitamura
(Scheduled to take office at NTT FACILITIES, INC.)
(3) New Executive Positions and Organizational Responsibilities
Scheduled appointment date: June 23, 2017
|
|
|
|
|
|
|
New Position(s) and
Organizational
Responsibilities
|
|
Name
|
|
Current Position(s) and
Organizational
Responsibilities
|
|
Senior Executive Vice President, Representative Director;
Senior Executive Manager, Plant Headquarters;
In charge of Technology Innovation
Department
|
|
Yoshihiro Kuroda
|
|
Senior Executive Vice President, Representative Director;
Senior Executive Manager, Plant Headquarters;
Executive Manager, Network Department, Plant
Headquarters;
In charge of Technology Innovation Department
|
|
|
|
|
|
Member of the Board;
Executive Manager, Network Department, Plant Headquarters
|
|
Yasushi Tohtake
|
|
Member of the Board;
Executive Manager, Service Management Department, Plant Headquarters
|
|
|
|
|
|
Member of the Board; Senior Executive Manager, Corporate Business Headquarters
|
|
Ichiro Uehara
|
|
Member of the Board;
Senior
Executive Manager, Kyusyu Regional Headquarters;
General Manager, Fukuoka
Branch
|
– 12
–
|
|
|
|
|
|
|
Member of the Board;
Senior Executive Manager, Kansai Regional Headquarters;
General Manager, Osaka Branch
|
|
Teruyuki Kishimoto
|
|
Member of the Board
|
|
|
|
|
|
Member of the Board;
Executive Manager, Service Management Department, Plant Headquarters
|
|
Takafumi Sakaguchi
|
|
Member of the Board
|
|
|
|
|
|
Member of the Board; Executive Manager, Fiber Access Collaboration Department, Alliance Business Headquarters
|
|
Kunihiro Yamada
|
|
|
|
|
|
|
|
Member of the Board
|
|
Keiji Ueyama
|
|
|
|
|
|
|
|
Member of the Board;
Senior Executive Manager, Kyusyu Regional Headquarters;
General Manager, Fukuoka Branch
|
|
Masanori Ozawa
|
|
|
– 13
–
Scheduled appointment date: July 1, 2017
|
|
|
|
|
|
|
New Position(s) and
Organizational
Responsibilities
|
|
Name
|
|
Current Position(s) and
Organizational
Responsibilities
|
|
Senior Executive Vice President, Representative Director;
Senior Executive Manager, Alliance Business Headquarters;
|
|
Shinji Oota
|
|
Senior Executive Vice President, Representative Director;
Senior Executive Manager, Alliance Business Headquarters;
|
|
|
|
|
|
In charge of Corporate Business Headquarters;
In charge of Sales Promotion Department
In charge of Corporate Strategy Planning Department
In charge of Accounts and Finance
Department;
In charge of Personnel Department;
In charge of General Affairs Department;
In charge of Compliance and CSR
|
|
|
|
In charge of Corporate Business Headquarters;
In charge of Marketing Department;
In charge of Corporate Strategy Planning Department;
In charge of Accounts and Finance Department;
In
charge of Personnel Department;
In charge of General Affairs Department;
In charge of Compliance and CSR
|
|
|
|
|
|
Note:
|
|
Ichiro Uehara is scheduled to become the President and Representative Director of NTT Business Solutions.
|
|
|
|
Keiji Ueyama is scheduled to become the President and Representative Director of
NTT-
Neomeit.
|
– 14
–
May 15, 2017
FOR IMMEDIATE RELEASE
NTT Com Announces Financial Results for Fiscal Year
Ended March 31, 2017
TOKYO, JAPAN — NTT Communications Corporation (NTT Com) announced today its financial results for the
fiscal year ended March 31, 2017. Please see the following attachments for further details:
|
I.
|
Results for Fiscal Year Ended March 31, 2017
|
|
II.
|
Financial Results of NTT Communications Group
|
|
III.
|
Non-Consolidated
Comparative Balance Sheets
|
|
IV.
|
Non-Consolidated
Comparative Statements of Income
|
|
V.
|
Non-Consolidated
Statements of Changes in Shareholders’ Equity and Other Net Assets
|
|
VI.
|
Business Results
(Non-Consolidated
Operating Revenues)
|
|
VII.
|
Non-Consolidated
Comparative Statements of Cash Flows
|
|
VIII.
|
Changes in NTT Communications Directors (Subject to Shareholders’ Approval)
|
# # #
About NTT Communications Corporation
NTT Communications provides consultancy, architecture, security and cloud services to optimize the information and communications
technology (ICT) environments of enterprises. These offerings are backed by the company’s worldwide infrastructure, including the leading global
tier-1
IP network, the Arcstar Universal One™ VPN
network reaching 196 countries/regions, and 140 secure data centers worldwide. NTT Communications’ solutions leverage the global resources of NTT Group companies including Dimension Data, NTT DOCOMO and NTT DATA.
www.ntt.com
|
Twitter@NTT Communications
|
Facebook@NTT Communications
|
LinkedIn@NTT
For more information
(Mr.) Akira Ito or (Mr.) Shinichi Shimizu
Accounting and Taxation, Finance, NTT Communications
Tel: +81 3 6700 4311
Email:
info-af@ntt.com
I. Results for the Fiscal Year Ended March 31, 2017
Although the world economy is undergoing a gradual recovery, there are uncertainties in international politics and the outlook for the future has become unclear. Many companies have been moving forward
with the digital transformation of their businesses and with their
“as-a-service”
trend, and both their business departments and their IT departments are
taking the initiative with respect to the adoption and utilization of ICT. Within the ICT market, there has been an expansion in the scope of software-defined services, dominance of the IaaS market by a small number of overseas providers, and
increases in the sophistication and development of AI, with rapid changes in the market structure. Competition is wide-ranging and fierce, and it is intensifying on a global level.
Based on these changes in the market environment, NTT Communications has established a new corporate vision, “Vision 2020,” and a new corporate slogan: “Transform. Transcend.” During
FY2016, under this new slogan, NTT Com worked to promote its offerings for solutions models that push “global seamlessness” to its fullest extent, while also pursuing automation and improvement of process efficiency, strengthening its
competitiveness through its own digital transformation, and working on business process innovations and the creation of new business models for NTT Com’s customers.
Specifically, through its “seamless ICT solutions,” an optimized, global combination of various services including clouds, data centers, networks, applications, security, and managed ICT in
which NTT Com has a particular strength as a telecommunications provider, NTT Com has produced an ICT environment that is uniformly managed on a global level, flexible,
on-demand
and
low-cost,
and safe and secure, and supports business operations. Through its seamless ICT solutions, NTT Com has contributed to innovation in business processes, such as accelerating customers’ decision-making
processes and improving productivity, and has supported the creation of new business.
In addition, in an analyst vendor
comparison report that evaluates IT vendors on a worldwide basis, NTT Com was named to the top “Leader” position in the global network business field for the fourth year in a row. Furthermore, NTT Com was also named to the
“Leader” position for the second year in a row in an assessment of cloud business operators in the Asia-Pacific region. NTT Com further enhanced the competitiveness of its services based on its Global Cloud Vision. NTT Com’s key
measures by type of service were as follows:
Measures taken by type of service
|
|
•
|
|
Cloud Computing Platforms
|
“Enterprise Cloud,” a cloud service for businesses that has platforms deployed at 14 bases in 11 countries around the world, substantially increased its functionality in Japan in March 2016, and
from April 2016 has been expanding in various countries abroad as well. In addition, NTT Com’s new partnerships with other companies included the signing of a collaboration agreement with Mirantis Japan, Inc. in October 2016 to provide
OpenStack managed private cloud services, a collaboration agreement with NTT Data Corporation, Pivotal Japan K.K., and Intel Corporation in November 2016 to develop and deliver cloud-native solutions, a collaboration agreement with Virtustream, Inc.
and EMC Japan K.K. in February 2017 for the development and distribution of shared-cloud platform services that support large-scale SAP systems, and a collaboration agreement with Microsoft Japan Co., Ltd. in March 2017 for joint development and
marketing cooperation on hybrid cloud platforms for corporate customers.
– 1
–
With respect to NTT Com’s Nexcenter data center services, NTT Com launched the Virginia
Ashburn 2 (VA2) Data Center in April 2016 and the Tokyo 9 Data Center in December 2016. NTT Com also commenced the construction of the Virginia Ashburn 3 (VA3) Data Center in December 2016.
In addition, with respect to NTT Com’s “SDx+M” solution, which utilize software-defined technology, beginning in March
2017, NTT Com started offering the “Software-Defined Exchange Service
(SD-Exchange),”
which provides seamless and secure high-speed global connection between “Enterprise Cloud,”
“Nexcenter” and multiple other cloud services, including “Amazon Web Services.”
In October 2016, NTT Com launched the “Secure Internet Connectivity Function (vUTM)” security option service for the high-quality, high-reliability “Arcstar Universal One” VPN.
Additionally, for its “Arcstar Universal One Multi-Cloud Connect” services, with which a multi-cloud system can be built on a secure closed area network, NTT Com launched an enhanced function that enables immediate connection and bandwidth
changes
on-demand
in April 2016, enabled connections to United Kingdom-based cloud platforms in June 2016, enabled connections to United States-based cloud platforms in October 2016, and launched options that
comprehensively support the installation, implementation, and operation of “Amazon Web Services” in December 2016.
In September 2016, NTT Com launched the “OCN vWAF” service, a SaaS-based security service that protects customers’ web
servers from unauthorized access, for NTT Com’s “OCN” Internet connectivity service.
For its high-speed LTE
communication service, “OCN Mobile ONE,” NTT Com launched
Wi-Fi
spots that offer free connections in July 2016, “burst transfer functions” that improve communication speeds starting
September 2016, a device warranty service “Anshin Hosho” (“Peace of Mind Warranty”) covering repair and replacement of smartphones that went into use in October 2016, and high-capacity and sharable 20GB/month and 30GB/month plans
in February 2017.
For its “SDx+M” solution, which utilizes software-defined technology, NTT Com began offering the
“Software-Defined Network Service
(SD-NS),”
which flexibly builds and manages overlay networks over multiple lines through software control, in March 2017.
For its unified communication service “Arcstar UCaaS,” NTT Com expanded the range of its services for large enterprises. For example, Arkadin SAS, an NTT Com group company, completed the
acquisition of Applicable Limited, a leading UK provider with a particular strength in implementing Microsoft-based unified communication services, in September 2016.
For voice-based services, in October 2016, NTT Com launched the unlimited calling service “Business Mobile” for business customers, allowing customers who make a high volume of calls from
cellular telephones to receive a higher discount. In February 2017, NTT Com also launched a website for changing settings, such as strengthening security, when using BYOD. Furthermore, with respect to its “OCN Denwa” service, which is
offered to customers with “OCN Mobile ONE” SIM cards with voice support, in August 2016, NTT Com launched the “OCN Denwa Unlimited
5-Minute
Calls Option,” which can be used as often as
desired at a fixed price, launched the “OCN Denwa Unlimited
10-Minute
Calls Option,” which increased the call-time provided under a fixed price plan, in February 2017, and, in March 2017, launched a
wholesale service for “OCN Denwa” for MVNOs that can reduce calling charges on
low-cost
smartphones.
– 2
–
With respect to international hubbing services, NTT Com launched the “A2P SMS
International Hubbing Service” in November 2016 for use with A2P SMSs (Application to Person Short Messaging Services), which are messages sent by businesses to individuals for marketing or authorization or other purposes. The service relays
international messages via the most appropriate route to minimize delays and to ensure delivery.
|
|
•
|
|
Applications and Content
|
In October 2016, NTT Com launched the “MySign” service, which supports the use of the public personal identification services that use the My Number card.
With respect to services that utilize AI (Artificial Intelligence), NTT Com launched the “Communication Engine
‘COTOHA,’” which can understand natural Japanese conversation with a high degree of accuracy and actively asks for necessary information for “human-like conversations.” In addition, in January 2017, NTT Com launched the
“Semantic Search Engine ‘COTOHA Chat & FAQ
TM
,’” an
AI-based
query resolution support service for business customers that displays appropriate answers in response to queries entered by website users,
and also launched the beta version of the “Industry-Specialized AI Translation Platform Service,” which provides highly accurate
AI-based
translation functions.
In August 2016, NTT Com expanded the AI capabilities it had installed on the managed security services operations platform of “WideAngle,” NTT Com’s comprehensive risk-management service,
substantially strengthening its cyber-attack analysis logic. In addition, in October 2016, NTT Com launched the “Rapid Incident Support Warranty” and “Standardized Malware-Infected Device Inspection” options for security incident
responses. Furthermore, in February 2017, NTT Com began offering a “Proactive Response” option that automatically shuts down communications with infected devices after any unauthorized access to a company’s internal systems is
identified. NTT Com has been working to provide services that comprehensively support risk management and counter-measures against increasingly sophisticated and malicious security threats in conjunction with NTT Security (Japan) K.K., which
commenced operation in August 2016.
For SDx+M solution that utilizes software-defined technology, in October 2016 NTT Com
launched a “Software-Defined LAN Solution
(SD-LAN
solution)” that builds an office-based LAN structure combining both solidity and flexibility.
NTT Com added
“SD-NS,”
“SD-Exchange”
and
“SD-LAN
Solutions” in March 2017 to its total managed ICT service “Global Management One,” enabling full-life cycle support from design, construction, maintenance, operation, and
analysis for the entirety of customers’ ICT environment on a global basis.
NTT Com’s IoT business promotion included collaborations with partner businesses, including application platform providers and device companies, as well as providing services that are suited to all
use-cases,
from “Factory” to “Product” and “Vehicle,” utilizing NTT Com’s network, cloud, and data center assets that are deployed worldwide and are available to NTT Com as a
carrier, in order to contribute to business transformation and productivity increases by enabling the rapid realization of business ideas through IoT.
With respect to SDx+M solution that utilizes SDx technology, beginning in March 2017, NTT Com expanded the functionality of its “Cloud Management Platform (CMP)” system, which enables the
centralized management of cloud services, such as “Enterprise Cloud,” “Amazon Web Services” and “Microsoft Azure,” with
on-premise
systems that customers have built, supporting
“SD-NS,”
“SD-LAN
Solution,” and
“SD-Exchange.”
– 3
–
Other Measures
In connection with sales, NTT Com has developed solutions proposals that contribute to the Digital Transformations of customer companies from a company-wide
Go-to-Market
perspective, including through its entry into mutual collaborations. For example, NTT Com signed a three-year technology partnership agreement with the McLaren-Honda Formula 1 racing team,
commencing mutual collaboration towards building an ICT foundation with optimized performance to support the Formula 1 team with the latest technology for networks, clouds, IoT, data collection, and analysis. In addition, NTT Com worked on the
global rollout of efficient and effective sales efforts by establishing its sales channel portfolios and solution models to meet the needs of the target market, supporting customers’ “transformation of existing business” and
“creation of new business models” by strengthening its offerings with solution models that utilize seamless global services to the fullest extent.
In the field of operations, NTT Com worked to utilize digital technology as a source of its competitiveness to accelerate simplification/automation/standardization, and reinforced its capability to handle
combined service projects and deepen its customer contact points. NTT Com also built delivery, maintenance, and operations processes to meet the needs of combined service projects, and worked on full and complete automation of standard operations.
Further, in October 2016, NTT Com commenced operation of the “Asia Pacific Gateway” high-bandwidth optical submarine cable network in order to increase its cable capacity within Asia and to enhance connectivity with Asian countries. In
addition, construction of the undersea cable-laying vessel “Kizuna,” to be operated by NTT World Engineering Marine Corporation, began in March 2017 to strengthen NTT Com’s ability to lay and maintain cables.
In order to promote seamless global management, NTT Com has implemented a globally standardized ERP system across each NTT Com group
company. Furthermore, with respect to procurement, NTT Com undertook an evaluation of modifications to its procurement systems, and fundamentally streamlined its procurement processes for resales, office products,
low-cost
items, and supplier management. NTT Com also worked to improve its process efficiency by advancing the standardization of its service procurement, increasing the use of databases and setting
suitability check-flows to reduce costs, and promoting the flow-through of contracting and payment tasks (electronic estimates/contracts/invoicing). In addition, in human resources, NTT Com focused on personnel recruitment, retention, and training
to be able to offer even more sophisticated services, such as by providing engineering experience to all of its younger staff members.
In terms of CSR, in October 2016, NTT Com published a review of basic principles in the CSR Report 2016. In the area of environmental protection activities, NTT Com established its Environmental
Declaration and Environmental Targets for 2030 in November 2016. In addition, NTT Com is working to protect the environment and to reduce its own environmental burden by making air conditioning systems at its data centers and communication buildings
more efficient, improving air flow, and expanding the installation of automatic air conditioning control systems.
With
respect to security, NTT Com has started initiatives to reduce security risks and to strengthen its collaboration and support system with its group companies in order to further reinforce cyber security measures at group companies both in Japan and
overseas.
In terms of diversity, NTT Com has been actively promoting a highly productive
ICT-enabled
workplace environment for its own employees that allows them to adopt flexible working practices, achieve an improved work/life balance and thereby achieve their full potential, regardless of age,
gender, nationality, religion or physical ability/disability. Based on NTT Group’s gender equality plan targeting a doubling of the percentage of women managers to 8.9% in 2020, NTT Com additionally continues to support the career development
of female employees and the appointment of female managers, and also actively hires more female employees. As a result of these measures, NTT Com was recognized in the Ministry of Internal Affairs and Communications’ newly established “100
Pioneers in Teleworking,” and also received the highest certification, “Eruboshi,” from the Minister of Health, Labor and Welfare, based on the Act on Promotion of Women’s Participation and Advancement in the Workplace.
– 4
–
As a whole, NTT Communications Group’s consolidated operating revenues decreased for the first time in four years, decreasing 36.1 billion yen
(-2.7%)
over the prior fiscal year to 1,283.0 billion yen. However, operating income increased 14.3 billion yen (+12.1%) compared to the prior fiscal year to 132.5 billion yen.
Non-consolidated
operating revenues for NTT Communications by service were as
follows. While revenues from NTT Com’s Cloud Computing Platforms increased 2.0 billion yen (+2.9%) over the prior fiscal year to 72.0 billion yen, revenues from Data Networks increased 14.9 billion yen (+4.0%) to
384.8 billion yen, and solution services revenues increased 1.1 billion yen (+0.7%) to 163.4 billion yen, Applications and Contents revenues decreased by 0.9 billion yen (-2.6%) compared to the prior fiscal year to
37.7 billion yen and Voice Communications revenues decreased 9.5 billion yen (-3.7%) to 250.7 billion yen. As a result, NTT Communications’ total
non-consolidated
operating revenues
increased, for the second year in the row, by 5.5 billion yen (+0.6%) over the prior fiscal year to 923.8 billion yen.
As a result of increased telecommunication equipment expenses from the provision of Hikari Collaboration Model services, total operating expenses increased 4.1 billion yen (+0.5%) compared to the
prior fiscal year to 831.3 billion yen.
As a result of the above, operating income increased by
1.4 billion yen (+1.5%) compared to the prior fiscal year to 92.5 billion yen, marking the first time in nine years that NTT Com’s operating revenues and operating income both increased over the prior fiscal year, and net income
increased by 12.6 billion yen (+17.5%) to 85.0 billion yen.
– 5
–
II. Financial Results of NTT Communications Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
Percent
Increase
(Decrease)
|
|
|
Operating revenues
|
|
|
1,319,113
|
|
|
|
1,282,968
|
|
|
|
(36,145
|
)
|
|
|
(2.7
|
)
|
|
Operating expenses
|
|
|
1,200,915
|
|
|
|
1,150,477
|
|
|
|
(50,438
|
)
|
|
|
(4.2
|
)
|
|
Operating income
|
|
|
118,198
|
|
|
|
132,491
|
|
|
|
14,293
|
|
|
|
12.1
|
|
– 6
–
III.
Non-Consolidated
Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
March 31, 2016
|
|
|
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets - telecommunications businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery and equipment
|
|
|
134,315
|
|
|
|
151,531
|
|
|
|
17,215
|
|
|
Antenna facilities
|
|
|
1,707
|
|
|
|
1,674
|
|
|
|
(33
|
)
|
|
Terminal equipment
|
|
|
1,397
|
|
|
|
1,963
|
|
|
|
565
|
|
|
Local line facilities
|
|
|
730
|
|
|
|
1,103
|
|
|
|
373
|
|
|
Long-distance line facilities
|
|
|
5,759
|
|
|
|
5,122
|
|
|
|
(637
|
)
|
|
Engineering facilities
|
|
|
51,789
|
|
|
|
49,878
|
|
|
|
(1,911
|
)
|
|
Submarine line facilities
|
|
|
13,408
|
|
|
|
16,701
|
|
|
|
3,293
|
|
|
Buildings
|
|
|
199,178
|
|
|
|
205,475
|
|
|
|
6,296
|
|
|
Structures
|
|
|
3,030
|
|
|
|
2,624
|
|
|
|
(406
|
)
|
|
Other machinery and equipment
|
|
|
112
|
|
|
|
68
|
|
|
|
(43
|
)
|
|
Vehicles and vessels
|
|
|
82
|
|
|
|
62
|
|
|
|
(20
|
)
|
|
Tools, furniture and fixtures
|
|
|
37,805
|
|
|
|
46,700
|
|
|
|
8,895
|
|
|
Land
|
|
|
45,241
|
|
|
|
48,577
|
|
|
|
3,335
|
|
|
Lease assets
|
|
|
5,060
|
|
|
|
7,950
|
|
|
|
2,889
|
|
|
Construction in progress
|
|
|
28,085
|
|
|
|
13,323
|
|
|
|
(14,761
|
)
|
|
Total property, plant and equipment
|
|
|
527,706
|
|
|
|
552,757
|
|
|
|
25,051
|
|
|
Intangible fixed assets
|
|
|
101,766
|
|
|
|
98,820
|
|
|
|
(2,945
|
)
|
|
Total fixed assets - telecommunications businesses
|
|
|
629,472
|
|
|
|
651,578
|
|
|
|
22,105
|
|
|
Investments and other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
135,291
|
|
|
|
108,152
|
|
|
|
(27,139
|
)
|
|
Investments in subsidiaries and affiliated companies
|
|
|
381,949
|
|
|
|
387,905
|
|
|
|
5,956
|
|
|
Other investments in subsidiaries and affiliated companies
|
|
|
1,500
|
|
|
|
—
|
|
|
|
(1,500
|
)
|
|
Investment in capital
|
|
|
359
|
|
|
|
345
|
|
|
|
(14
|
)
|
|
Contributions to affiliated companies
|
|
|
2,049
|
|
|
|
2,049
|
|
|
|
—
|
|
|
Long-term loans receivable to subsidiaries
|
|
|
1,725
|
|
|
|
1,268
|
|
|
|
(456
|
)
|
|
Long-term prepaid expenses
|
|
|
3,483
|
|
|
|
4,841
|
|
|
|
1,357
|
|
|
Prepaid pension costs
|
|
|
6,235
|
|
|
|
6,391
|
|
|
|
156
|
|
|
Deferred income taxes
|
|
|
6,217
|
|
|
|
17,499
|
|
|
|
11,282
|
|
|
Submarine line use rights
|
|
|
17,088
|
|
|
|
17,114
|
|
|
|
26
|
|
|
Other investments and assets
|
|
|
14,624
|
|
|
|
16,268
|
|
|
|
1,643
|
|
|
Allowance for doubtful accounts
|
|
|
(207
|
)
|
|
|
(160
|
)
|
|
|
47
|
|
|
Total investments and other assets
|
|
|
570,316
|
|
|
|
561,675
|
|
|
|
(8,641
|
)
|
|
Total fixed assets
|
|
|
1,199,789
|
|
|
|
1,213,254
|
|
|
|
13,464
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and bank deposits
|
|
|
12,607
|
|
|
|
3,406
|
|
|
|
(9,200
|
)
|
|
Notes receivable
|
|
|
—
|
|
|
|
8
|
|
|
|
8
|
|
|
Accounts receivable, trade
|
|
|
179,839
|
|
|
|
178,248
|
|
|
|
(1,590
|
)
|
|
Accounts receivable, other
|
|
|
47,624
|
|
|
|
49,459
|
|
|
|
1,834
|
|
|
Lease investment assets
|
|
|
117
|
|
|
|
92
|
|
|
|
(24
|
)
|
|
Securities
|
|
|
—
|
|
|
|
4
|
|
|
|
4
|
|
|
Supplies
|
|
|
9,806
|
|
|
|
9,643
|
|
|
|
(162
|
)
|
|
Advance payments
|
|
|
3,700
|
|
|
|
4,552
|
|
|
|
851
|
|
|
Prepaid expenses
|
|
|
6,469
|
|
|
|
8,084
|
|
|
|
1,615
|
|
|
Deferred income taxes
|
|
|
3,694
|
|
|
|
3,177
|
|
|
|
(516
|
)
|
|
Deposits paid to parent company
|
|
|
4,054
|
|
|
|
16,636
|
|
|
|
12,582
|
|
|
Other current assets
|
|
|
29,214
|
|
|
|
8,647
|
|
|
|
(20,566
|
)
|
|
Allowance for doubtful accounts
|
|
|
(1,017
|
)
|
|
|
(1,367
|
)
|
|
|
(349
|
)
|
|
Total current assets
|
|
|
296,110
|
|
|
|
280,595
|
|
|
|
(15,514
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
1,495,899
|
|
|
|
1,493,849
|
|
|
|
(2,050
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 7 –
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
March 31, 2016
|
|
|
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings from parent company and subsidiary
|
|
|
199,504
|
|
|
|
222,333
|
|
|
|
22,829
|
|
|
Lease obligations
|
|
|
5,183
|
|
|
|
6,297
|
|
|
|
1,113
|
|
|
Liability for employees’ retirement benefits
|
|
|
86,722
|
|
|
|
89,994
|
|
|
|
3,272
|
|
|
Reserve for point services
|
|
|
547
|
|
|
|
407
|
|
|
|
(139
|
)
|
|
Reserve for unused telephone cards
|
|
|
3,628
|
|
|
|
3,540
|
|
|
|
(88
|
)
|
|
Asset retirement obligations
|
|
|
3,296
|
|
|
|
4,126
|
|
|
|
829
|
|
|
Other long-term liabilities
|
|
|
5,170
|
|
|
|
13,118
|
|
|
|
7,948
|
|
|
Total long-term liabilities
|
|
|
304,053
|
|
|
|
339,818
|
|
|
|
35,765
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term borrowings from parent company
|
|
|
43,360
|
|
|
|
—
|
|
|
|
(43,360
|
)
|
|
Accounts payable, trade
|
|
|
31,894
|
|
|
|
29,548
|
|
|
|
(2,346
|
)
|
|
Short-term borrowings
|
|
|
7,766
|
|
|
|
—
|
|
|
|
(7,766
|
)
|
|
Lease obligations
|
|
|
3,222
|
|
|
|
3,851
|
|
|
|
629
|
|
|
Accounts payable, other
|
|
|
151,623
|
|
|
|
153,953
|
|
|
|
2,329
|
|
|
Accrued expenses
|
|
|
5,002
|
|
|
|
4,960
|
|
|
|
(42
|
)
|
|
Accrued taxes on income
|
|
|
6,968
|
|
|
|
3,749
|
|
|
|
(3,218
|
)
|
|
Advances received
|
|
|
3,790
|
|
|
|
3,736
|
|
|
|
(53
|
)
|
|
Deposits received
|
|
|
14,150
|
|
|
|
1,525
|
|
|
|
(12,625
|
)
|
|
Unearned revenues
|
|
|
150
|
|
|
|
173
|
|
|
|
22
|
|
|
Allowance for losses on construction
|
|
|
13
|
|
|
|
627
|
|
|
|
613
|
|
|
Asset retirement obligations
|
|
|
—
|
|
|
|
56
|
|
|
|
56
|
|
|
Other current liabilities
|
|
|
1,363
|
|
|
|
1,178
|
|
|
|
(185
|
)
|
|
Total current liabilities
|
|
|
269,307
|
|
|
|
203,360
|
|
|
|
(65,946
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
573,360
|
|
|
|
543,179
|
|
|
|
(30,181
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
211,763
|
|
|
|
211,763
|
|
|
|
—
|
|
|
Capital surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
paid-in
capital
|
|
|
131,615
|
|
|
|
131,615
|
|
|
|
—
|
|
|
Total capital surplus
|
|
|
131,615
|
|
|
|
131,615
|
|
|
|
—
|
|
|
Earned surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other earned surplus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for reduction entry
|
|
|
7,228
|
|
|
|
7,189
|
|
|
|
(39
|
)
|
|
Accumulated earned surplus
|
|
|
510,207
|
|
|
|
556,808
|
|
|
|
46,600
|
|
|
Total earned surplus
|
|
|
517,436
|
|
|
|
563,997
|
|
|
|
46,561
|
|
|
Total shareholders’ equity
|
|
|
860,815
|
|
|
|
907,376
|
|
|
|
46,561
|
|
|
Unrealized gains (losses), translation adjustments, and others:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) on securities
|
|
|
61,723
|
|
|
|
43,080
|
|
|
|
(18,643
|
)
|
|
Deferred gains or losses on hedges
|
|
|
—
|
|
|
|
213
|
|
|
|
213
|
|
|
Total unrealized gains (losses), translation adjustments, and others
|
|
|
61,723
|
|
|
|
43,293
|
|
|
|
(18,429
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL NET ASSETS
|
|
|
922,538
|
|
|
|
950,670
|
|
|
|
28,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND NET ASSETS
|
|
|
1,495,899
|
|
|
|
1,493,849
|
|
|
|
(2,050
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 8
–
IV.
Non-Consolidated
Comparative Statements of
Income
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
Telecommunications businesses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
691,290
|
|
|
|
697,333
|
|
|
|
6,042
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business expenses
|
|
|
156,429
|
|
|
|
159,654
|
|
|
|
3,224
|
|
|
Maintenance expenses
|
|
|
74,197
|
|
|
|
74,148
|
|
|
|
(48
|
)
|
|
Overhead expenses
|
|
|
11,373
|
|
|
|
10,976
|
|
|
|
(397
|
)
|
|
Administration
|
|
|
66,380
|
|
|
|
66,106
|
|
|
|
(273
|
)
|
|
Experiment and research
|
|
|
11,665
|
|
|
|
11,654
|
|
|
|
(10
|
)
|
|
Depreciation and amortization
|
|
|
89,545
|
|
|
|
89,139
|
|
|
|
(405
|
)
|
|
Retirement of fixed assets
|
|
|
5,195
|
|
|
|
6,236
|
|
|
|
1,040
|
|
|
Access charges
|
|
|
187,152
|
|
|
|
190,708
|
|
|
|
3,555
|
|
|
Miscellaneous taxes
|
|
|
11,153
|
|
|
|
11,745
|
|
|
|
591
|
|
|
Total operating expenses
|
|
|
613,093
|
|
|
|
620,370
|
|
|
|
7,276
|
|
|
Operating income from telecommunications businesses
|
|
|
78,196
|
|
|
|
76,963
|
|
|
|
(1,233
|
)
|
|
|
|
|
|
|
Supplementary businesses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
227,018
|
|
|
|
226,522
|
|
|
|
(495
|
)
|
|
Operating expenses
|
|
|
214,072
|
|
|
|
210,936
|
|
|
|
(3,135
|
)
|
|
Operating income from supplementary businesses
|
|
|
12,946
|
|
|
|
15,585
|
|
|
|
2,639
|
|
|
Operating income
|
|
|
91,143
|
|
|
|
92,549
|
|
|
|
1,405
|
|
|
|
|
|
|
|
Non-operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
272
|
|
|
|
62
|
|
|
|
(209
|
)
|
|
Interest on securities
|
|
|
0
|
|
|
|
0
|
|
|
|
(0
|
)
|
|
Dividends received
|
|
|
12,486
|
|
|
|
8,258
|
|
|
|
(4,228
|
)
|
|
Lease and rental income
|
|
|
11,581
|
|
|
|
11,204
|
|
|
|
(376
|
)
|
|
Miscellaneous income
|
|
|
2,822
|
|
|
|
1,222
|
|
|
|
(1,599
|
)
|
|
Total
non-operating
revenues
|
|
|
27,163
|
|
|
|
20,748
|
|
|
|
(6,415
|
)
|
|
|
|
|
|
|
Non-operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses
|
|
|
1,514
|
|
|
|
1,050
|
|
|
|
(463
|
)
|
|
Lease and rental expenses
|
|
|
5,551
|
|
|
|
5,712
|
|
|
|
161
|
|
|
Miscellaneous expenses
|
|
|
1,034
|
|
|
|
1,072
|
|
|
|
38
|
|
|
Total
non-operating
expenses
|
|
|
8,100
|
|
|
|
7,836
|
|
|
|
(264
|
)
|
|
Recurring profit
|
|
|
110,206
|
|
|
|
105,461
|
|
|
|
(4,745
|
)
|
|
|
|
|
|
|
Special losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off
of investments in affiliated companies
|
|
|
5,847
|
|
|
|
—
|
|
|
|
(5,847
|
)
|
|
Total special losses
|
|
|
5,847
|
|
|
|
—
|
|
|
|
(5,847
|
)
|
|
Income before income taxes
|
|
|
104,359
|
|
|
|
105,461
|
|
|
|
1,102
|
|
|
Corporation, inhabitant, and enterprise taxes
|
|
|
29,003
|
|
|
|
23,097
|
|
|
|
(5,906
|
)
|
|
Deferred tax expenses (benefits)
|
|
|
3,042
|
|
|
|
(2,639
|
)
|
|
|
(5,681
|
)
|
|
Net income
|
|
|
72,312
|
|
|
|
85,003
|
|
|
|
12,690
|
|
– 9
–
V.
Non-Consolidated
Statements of Changes in
Shareholders’ Equity and Other Net Assets
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
March 31, 2016
|
|
(Millions of yen)
|
|
|
|
|
Shareholders’ equity
|
|
|
Unrealized gains (losses),
translation adjustments, and others
|
|
|
Total
net
assets
|
|
|
|
Common
stock
|
|
|
Capital surplus
|
|
|
Earned surplus
|
|
|
Total
shareholders’
equity
|
|
|
Net
unrealized
gains (losses)
on securities
|
|
|
Deferred
gains or
losses on
hedges
|
|
|
Total
unrealized
gains
(losses),
translation
adjustments,
and
others
|
|
|
|
|
|
Additional
paid-in capital
|
|
|
Total capital
surplus
|
|
|
Other earned surplus
|
|
|
Total earned
surplus
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for
reduction
entry
|
|
|
Accumulated
earned
surplus
|
|
|
|
|
|
|
|
|
April 1, 2015
|
|
|
211,763
|
|
|
|
131,615
|
|
|
|
131,615
|
|
|
|
6,517
|
|
|
|
481,672
|
|
|
|
488,190
|
|
|
|
831,569
|
|
|
|
98,314
|
|
|
|
—
|
|
|
|
98,314
|
|
|
|
929,884
|
|
|
Net change during the annual period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(43,067
|
)
|
|
|
(43,067
|
)
|
|
|
(43,067
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(43,067
|
)
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72,312
|
|
|
|
72,312
|
|
|
|
72,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72,312
|
|
|
Provision of reserve for reduction entry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
727
|
|
|
|
(727
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Return of reserve for reduction entry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17
|
)
|
|
|
17
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Others, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(36,590
|
)
|
|
|
|
|
|
|
(36,590
|
)
|
|
|
(36,590
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net change during the annual period
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
710
|
|
|
|
28,534
|
|
|
|
29,245
|
|
|
|
29,245
|
|
|
|
(36,590
|
)
|
|
|
—
|
|
|
|
(36,590
|
)
|
|
|
(7,345
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
211,763
|
|
|
|
131,615
|
|
|
|
131,615
|
|
|
|
7,228
|
|
|
|
510,207
|
|
|
|
517,436
|
|
|
|
860,815
|
|
|
|
61,723
|
|
|
|
—
|
|
|
|
61,723
|
|
|
|
922,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
March 31, 2017
|
|
(Millions of yen)
|
|
|
|
|
Shareholders’ equity
|
|
|
Unrealized gains (losses),
translation adjustments, and others
|
|
|
Total
net
assets
|
|
|
|
Common
stock
|
|
|
Capital surplus
|
|
|
Earned surplus
|
|
|
Total
shareholders’
equity
|
|
|
Net
unrealized
gains (losses)
on securities
|
|
|
Deferred
gains or
losses on
hedges
|
|
|
Total
unrealized
gains
(losses),
translation
adjustments,
and
others
|
|
|
|
|
|
Additional
paid-in capital
|
|
|
Total capital
surplus
|
|
|
Other earned surplus
|
|
|
Total earned
surplus
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for
reduction
entry
|
|
|
Accumulated
earned
surplus
|
|
|
|
|
|
|
|
|
April 1, 2016
|
|
|
211,763
|
|
|
|
131,615
|
|
|
|
131,615
|
|
|
|
7,228
|
|
|
|
510,207
|
|
|
|
517,436
|
|
|
|
860,815
|
|
|
|
61,723
|
|
|
|
—
|
|
|
|
61,723
|
|
|
|
922,538
|
|
|
Net change during the annual period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38,441
|
)
|
|
|
(38,441
|
)
|
|
|
(38,441
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38,441
|
)
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85,003
|
|
|
|
85,003
|
|
|
|
85,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
85,003
|
|
|
Return of reserve for reduction entry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(39
|
)
|
|
|
39
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Others, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(18,643
|
)
|
|
|
213
|
|
|
|
(18,429
|
)
|
|
|
(18,429
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net change during the annual period
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(39
|
)
|
|
|
46,600
|
|
|
|
46,561
|
|
|
|
46,561
|
|
|
|
(18,643
|
)
|
|
|
213
|
|
|
|
(18,429
|
)
|
|
|
28,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
|
211,763
|
|
|
|
131,615
|
|
|
|
131,615
|
|
|
|
7,189
|
|
|
|
556,808
|
|
|
|
563,997
|
|
|
|
907,376
|
|
|
|
43,080
|
|
|
|
213
|
|
|
|
43,293
|
|
|
|
950,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 10
–
VI. Business Results
(Non-Consolidated
Operating Revenues)
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
Percent
Increase
(Decrease)
|
|
|
Cloud Computing Platforms
|
|
|
70,029
|
|
|
|
72,034
|
|
|
|
2,005
|
|
|
|
2.9
|
|
|
Data Networks
|
|
|
369,871
|
|
|
|
384,804
|
|
|
|
14,933
|
|
|
|
4.0
|
|
|
Voice Communications
|
|
|
260,329
|
|
|
|
250,794
|
|
|
|
(9,535
|
)
|
|
|
(3.7
|
)
|
|
Applications & Content
|
|
|
38,729
|
|
|
|
37,732
|
|
|
|
(996
|
)
|
|
|
(2.6
|
)
|
|
Solution Services
|
|
|
162,352
|
|
|
|
163,496
|
|
|
|
1,144
|
|
|
|
0.7
|
|
|
Others
|
|
|
16,997
|
|
|
|
14,993
|
|
|
|
(2,003
|
)
|
|
|
(11.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
|
918,309
|
|
|
|
923,855
|
|
|
|
5,546
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 11
–
VII.
Non-Consolidated
Comparative Statements of
Cash Flows
(Based on accounting principles generally accepted in Japan)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of yen)
|
|
|
|
|
Year ended
March 31, 2016
|
|
|
Year ended
March 31, 2017
|
|
|
Increase
(Decrease)
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
104,359
|
|
|
|
105,461
|
|
|
|
1,102
|
|
|
Depreciation and amortization
|
|
|
106,837
|
|
|
|
106,971
|
|
|
|
134
|
|
|
Loss on disposal of property, plant and equipment
|
|
|
4,075
|
|
|
|
4,517
|
|
|
|
441
|
|
|
Gains on sales of fixed assets
|
|
|
(3
|
)
|
|
|
(78
|
)
|
|
|
(75
|
)
|
|
Increase (decrease) in allowance for doubtful accounts
|
|
|
(117
|
)
|
|
|
302
|
|
|
|
419
|
|
|
Increase (decrease) in liability for employees’ retirement benefits
|
|
|
1,140
|
|
|
|
3,272
|
|
|
|
2,131
|
|
|
Write-off
of investments in affiliated companies
|
|
|
5,847
|
|
|
|
—
|
|
|
|
(5,847
|
)
|
|
(Increase) decrease in accounts receivable
|
|
|
(3,413
|
)
|
|
|
(239
|
)
|
|
|
3,174
|
|
|
(Increase) decrease in inventories
|
|
|
(3,015
|
)
|
|
|
1,152
|
|
|
|
4,167
|
|
|
Increase (decrease) in accounts payable and accrued expenses
|
|
|
432
|
|
|
|
703
|
|
|
|
270
|
|
|
Increase (decrease) in accrued consumption tax
|
|
|
(4,850
|
)
|
|
|
2,434
|
|
|
|
7,285
|
|
|
Other
|
|
|
(23,183
|
)
|
|
|
(10,925
|
)
|
|
|
12,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-total
|
|
|
188,108
|
|
|
|
213,571
|
|
|
|
25,463
|
|
|
Interest and dividends received
|
|
|
12,752
|
|
|
|
8,344
|
|
|
|
(4,407
|
)
|
|
Interest paid
|
|
|
(1,418
|
)
|
|
|
(1,086
|
)
|
|
|
332
|
|
|
Income taxes received (paid)
|
|
|
(22,436
|
)
|
|
|
(29,892
|
)
|
|
|
(7,455
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
177,004
|
|
|
|
190,937
|
|
|
|
13,933
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for property, plant and equipment
|
|
|
(124,453
|
)
|
|
|
(134,677
|
)
|
|
|
(10,224
|
)
|
|
Proceeds from sale of property, plant and equipment
|
|
|
18
|
|
|
|
412
|
|
|
|
394
|
|
|
Payments for purchase of investment securities
|
|
|
(105,792
|
)
|
|
|
(422
|
)
|
|
|
105,370
|
|
|
Proceeds from sale of investment securities
|
|
|
152
|
|
|
|
2,242
|
|
|
|
2,090
|
|
|
Payments for long-term loans
|
|
|
(5,852
|
)
|
|
|
—
|
|
|
|
5,852
|
|
|
Other
|
|
|
(1,720
|
)
|
|
|
(4,042
|
)
|
|
|
(2,321
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
(237,648
|
)
|
|
|
(136,487
|
)
|
|
|
101,161
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
|
149,857
|
|
|
|
22,864
|
|
|
|
(126,993
|
)
|
|
Payments for settlement of long-term debt
|
|
|
(53,360
|
)
|
|
|
(43,360
|
)
|
|
|
10,000
|
|
|
Net increase (decrease) in short-term borrowings
|
|
|
(2,647
|
)
|
|
|
(7,766
|
)
|
|
|
(5,119
|
)
|
|
Payments for settlement of lease obligations
|
|
|
(7,470
|
)
|
|
|
(4,306
|
)
|
|
|
3,164
|
|
|
Dividends paid
|
|
|
(36,001
|
)
|
|
|
(33,000
|
)
|
|
|
3,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
50,378
|
|
|
|
(65,569
|
)
|
|
|
(115,947
|
)
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(2,147
|
)
|
|
|
(158
|
)
|
|
|
1,988
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(12,412
|
)
|
|
|
(11,277
|
)
|
|
|
1,135
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
44,042
|
|
|
|
31,630
|
|
|
|
(12,412
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
|
|
31,630
|
|
|
|
20,353
|
|
|
|
(11,277
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
– 12
–
VIII. Changes in NTT Communications Directors
(Subject to Shareholders’ Approval)
1. Candidates scheduled to take office as Directors
|
|
|
|
|
Shuichi Sasakura
|
|
Head of Corporate Planning
|
|
Yoichiro Takaya
|
|
Head of Fifth Sales Division
|
|
Naoki Kajita
|
|
Deputy Senior Vice President of Fourth Sales Division
|
|
Keigo Kajimura
|
|
Head of Solution Services
|
|
Hiromasa Takaoka
|
|
Vice President of General Affairs Department, NIPPON TELEGRAPH AND TELEPHONE CORPORATION
|
|
Atsuhiro Fuseya
|
|
Vice President of General Affairs Department, NIPPON TELEGRAPH AND TELEPHONE CORPORATION
|
2. Directors scheduled to resign
|
|
|
|
|
Takashi Ooi
|
|
Senior Vice President
|
|
(scheduled to transfer to NTT Bizlink, Inc.)
|
|
|
|
|
Akira Arima
|
|
Senior Vice President
|
|
(scheduled to remain as NTT Communications’ Corporate Advisor)
|
|
|
|
|
Masanori Ozawa
|
|
Senior Vice President
|
|
(scheduled to transfer to NIPPON TELEGRAPH AND TELEPHONE WEST
CORPORATION)
|
3. New Executive Positions and Organizational Responsibilities
|
|
|
|
|
|
|
Name
|
|
New Position(s) and
Organizational
Responsibilities
|
|
Current Position(s) and
Organizational
Responsibilities
|
|
Tetsuya Funabashi
|
|
Senior Executive Vice President
In charge of
technology
In charge of services
In charge of operations
In charge of information security
|
|
Senior Executive Vice President
In charge of
technology
In charge of operations
In charge of information
security
In charge of corporate
Head of Customer
Services
|
|
|
|
|
|
Katsumi Nakata
|
|
Senior Executive Vice President
In charge of sales
In charge of global business
In charge of corporate
|
|
Senior Executive Vice President
In charge of sales
In charge of global business
|
|
|
|
|
|
Shuichi Sasakura
|
|
Senior Vice President
Head of Network Services
|
|
Head of Corporate Planning
|
|
|
|
|
|
Yoichiro Takaya
|
|
Senior Vice President
Head of Fifth Sales Division
|
|
Head of Fifth Sales Division
|
|
|
|
|
|
Naoki Kajita
|
|
Senior Vice President
Head of ICT Consulting Division
|
|
Deputy Senior Vice President of Fourth
Sales Division
|
|
|
|
|
|
Keigo Kajimura
|
|
Senior Vice President
Head of Solution Services
|
|
Head of Solution Services
|
|
|
|
|
|
Hiromasa Takaoka
|
|
Senior Vice President
Head of Customer Services
|
|
Vice President of General Affairs
Department, NIPPON TELEGRAPH
AND TELEPHONE CORPORATION
|
|
|
|
|
|
Atsuhiro Fuseya
|
|
Senior Vice President
|
|
Vice President of General Affairs
Department, NIPPON TELEGRAPH
AND TELEPHONE CORPORATION
|
|
|
|
|
|
Notes:
|
|
• Among the Directors scheduled to resign from office, Takashi Ooi is expected to
resign on June 11, 2017, Masanori Ozawa is expected to resign on June 22, 2017, and Akira Arima is expected to resign at the close of the 18th Annual General Shareholders’ Meeting (to be held on June 23, 2017).
|
|
|
|
• Shuichi Sasakura is expected to concurrently become Head of Network Services
on June 12, 2017.
|
– 13 –
May 15, 2017
Nippon Telegraph and Telephone Corporation
Supplementary Data for
the Annual Results for the Fiscal Year Ended March 31, 2017
Contents
|
|
|
|
|
|
|
|
|
|
1. Financial Results Summary (Consolidated)
|
|
|
pages 1-2
|
|
|
|
|
|
2. Financial Results (Business Segments)
|
|
|
page 3
|
|
|
|
|
|
3. Financial Results (Holding Company and Subsidiaries)
|
|
|
pages
4-6
|
|
|
|
|
|
4. Operating Data
|
|
|
pages
7-9
|
|
Disclaimers
The projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained herein are based on a series of assumptions, projections, estimates, judgments and beliefs of
the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be
affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the
performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the
forecasts contained herein, as well as other risks included in NTT’s most recent Annual Report on Form
20-F
and other filings and submissions with the United States Securities and Exchange Commission.
|
*
|
“E” in this material represents that the figure is a plan or projection for operation.
|
|
**
|
“FY” in this material indicates the fiscal year ending March 31 of the succeeding year.
|
1. Financial Results Summary (NTT Consolidated Financial Results, EBITDA and EBITDA Margin and
Interest-Bearing Liabilities)
NTT Consolidated Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
FY 2015
|
|
|
FY 2016
|
|
|
FY 2017 (E)
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Year Ending
|
|
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
March 31
|
|
|
Consolidated (US GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
2,706.5
|
|
|
|
2,882.5
|
|
|
|
2,906.4
|
|
|
|
3,045.6
|
|
|
|
11,541.0
|
|
|
|
2,716.7
|
|
|
|
2,807.6
|
|
|
|
2,836.2
|
|
|
|
3,030.5
|
|
|
|
11,391.0
|
|
|
|
11,750.0
|
|
|
Fixed Voice Related Services
|
|
|
336.4
|
|
|
|
331.2
|
|
|
|
326.9
|
|
|
|
335.5
|
|
|
|
1,330.0
|
|
|
|
311.8
|
|
|
|
307.5
|
|
|
|
299.8
|
|
|
|
314.7
|
|
|
|
1,233.9
|
|
|
|
—
|
|
|
Mobile Voice Related Services
|
|
|
193.1
|
|
|
|
214.6
|
|
|
|
216.9
|
|
|
|
213.2
|
|
|
|
837.8
|
|
|
|
213.0
|
|
|
|
216.6
|
|
|
|
221.8
|
|
|
|
213.9
|
|
|
|
865.3
|
|
|
|
—
|
|
|
IP/Packet Communications Services
|
|
|
933.7
|
|
|
|
941.6
|
|
|
|
944.2
|
|
|
|
938.3
|
|
|
|
3,757.8
|
|
|
|
948.0
|
|
|
|
953.3
|
|
|
|
941.0
|
|
|
|
966.6
|
|
|
|
3,809.0
|
|
|
|
—
|
|
|
Sales of Telecommunications Equipment
|
|
|
223.8
|
|
|
|
240.0
|
|
|
|
262.0
|
|
|
|
227.3
|
|
|
|
953.0
|
|
|
|
186.7
|
|
|
|
236.4
|
|
|
|
227.0
|
|
|
|
156.4
|
|
|
|
806.5
|
|
|
|
—
|
|
|
System Integration
|
|
|
673.0
|
|
|
|
764.3
|
|
|
|
774.9
|
|
|
|
851.3
|
|
|
|
3,063.5
|
|
|
|
688.3
|
|
|
|
708.8
|
|
|
|
726.7
|
|
|
|
917.9
|
|
|
|
3,041.6
|
|
|
|
—
|
|
|
Other
|
|
|
346.4
|
|
|
|
390.8
|
|
|
|
381.5
|
|
|
|
480.1
|
|
|
|
1,598.8
|
|
|
|
368.9
|
|
|
|
385.0
|
|
|
|
419.9
|
|
|
|
461.0
|
|
|
|
1,634.8
|
|
|
|
—
|
|
|
Operating Expenses
|
|
|
2,347.7
|
|
|
|
2,507.8
|
|
|
|
2,513.3
|
|
|
|
2,824.1
|
|
|
|
10,192.8
|
|
|
|
2,229.3
|
|
|
|
2,368.5
|
|
|
|
2,444.1
|
|
|
|
2,809.3
|
|
|
|
9,851.2
|
|
|
|
10,160.0
|
|
|
Cost of Services (excluding items shown separately below)
|
|
|
556.0
|
|
|
|
593.1
|
|
|
|
584.3
|
|
|
|
724.7
|
|
|
|
2,458.1
|
|
|
|
547.3
|
|
|
|
606.1
|
|
|
|
598.0
|
|
|
|
736.2
|
|
|
|
2,487.6
|
|
|
|
—
|
|
|
Cost of Equipment Sold (excluding items shown separately below)
|
|
|
196.6
|
|
|
|
234.5
|
|
|
|
268.4
|
|
|
|
271.0
|
|
|
|
970.5
|
|
|
|
175.3
|
|
|
|
231.2
|
|
|
|
248.3
|
|
|
|
225.0
|
|
|
|
879.7
|
|
|
|
—
|
|
|
Cost of System Integration (excluding items shown separately below)
|
|
|
475.8
|
|
|
|
558.7
|
|
|
|
543.2
|
|
|
|
619.8
|
|
|
|
2,197.5
|
|
|
|
501.7
|
|
|
|
484.5
|
|
|
|
510.3
|
|
|
|
664.4
|
|
|
|
2,161.0
|
|
|
|
—
|
|
|
Depreciation and Amortization
|
|
|
432.6
|
|
|
|
439.1
|
|
|
|
445.5
|
|
|
|
449.2
|
|
|
|
1,766.3
|
|
|
|
359.2
|
|
|
|
357.3
|
|
|
|
366.4
|
|
|
|
379.3
|
|
|
|
1,462.2
|
|
|
|
1,359.0
|
|
|
Impairment Loss
|
|
|
0.0
|
|
|
|
3.6
|
|
|
|
2.4
|
|
|
|
26.7
|
|
|
|
32.7
|
|
|
|
0.4
|
|
|
|
14.3
|
|
|
|
51.3
|
|
|
|
7.9
|
|
|
|
73.9
|
|
|
|
—
|
|
|
Goodwill
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4.7
|
|
|
|
4.7
|
|
|
|
—
|
|
|
|
4.5
|
|
|
|
48.8
|
|
|
|
—
|
|
|
|
53.3
|
|
|
|
—
|
|
|
Other
|
|
|
0.0
|
|
|
|
3.6
|
|
|
|
2.4
|
|
|
|
22.0
|
|
|
|
28.0
|
|
|
|
0.4
|
|
|
|
9.8
|
|
|
|
2.5
|
|
|
|
7.9
|
|
|
|
20.6
|
|
|
|
—
|
|
|
Selling, General and Administrative Expenses
|
|
|
686.7
|
|
|
|
678.8
|
|
|
|
669.6
|
|
|
|
732.7
|
|
|
|
2,767.8
|
|
|
|
645.5
|
|
|
|
675.1
|
|
|
|
669.7
|
|
|
|
796.5
|
|
|
|
2,786.8
|
|
|
|
—
|
|
|
Operating Income
|
|
|
358.8
|
|
|
|
374.7
|
|
|
|
393.1
|
|
|
|
221.6
|
|
|
|
1,348.1
|
|
|
|
487.4
|
|
|
|
439.1
|
|
|
|
392.1
|
|
|
|
221.2
|
|
|
|
1,539.8
|
|
|
|
1,590.0
|
|
|
Income Before Income Taxes
|
|
|
367.4
|
|
|
|
350.0
|
|
|
|
403.7
|
|
|
|
208.1
|
|
|
|
1,329.3
|
|
|
|
446.1
|
|
|
|
450.8
|
|
|
|
410.3
|
|
|
|
220.6
|
|
|
|
1,527.8
|
|
|
|
1,580.0
|
|
|
Net Income Attributable to NTT
|
|
|
193.2
|
|
|
|
184.1
|
|
|
|
226.7
|
|
|
|
133.7
|
|
|
|
737.7
|
|
|
|
243.6
|
|
|
|
232.5
|
|
|
|
192.6
|
|
|
|
131.4
|
|
|
|
800.1
|
|
|
|
830.0
|
|
|
|
|
(Ref.) Details of “Cost of Services,” “Cost of Equipment Sold,” “Cost of System
Integration” and “Selling, General and Administrative Expenses”
|
|
|
Personnel
|
|
|
569.5
|
|
|
|
577.4
|
|
|
|
577.6
|
|
|
|
575.2
|
|
|
|
2,299.7
|
|
|
|
557.7
|
|
|
|
569.7
|
|
|
|
547.5
|
|
|
|
601.9
|
|
|
|
2,276.8
|
|
|
|
—
|
|
|
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses
|
|
|
1,257.3
|
|
|
|
1,402.0
|
|
|
|
1,395.2
|
|
|
|
1,621.4
|
|
|
|
5,675.9
|
|
|
|
1,227.9
|
|
|
|
1,335.4
|
|
|
|
1,384.4
|
|
|
|
1,664.2
|
|
|
|
5,612.0
|
|
|
|
—
|
|
|
Loss on Disposal of Property, Plant and Equipment
|
|
|
30.0
|
|
|
|
31.3
|
|
|
|
37.6
|
|
|
|
92.8
|
|
|
|
191.7
|
|
|
|
24.2
|
|
|
|
36.3
|
|
|
|
39.8
|
|
|
|
96.8
|
|
|
|
197.0
|
|
|
|
—
|
|
|
Other Expenses
|
|
|
58.3
|
|
|
|
54.5
|
|
|
|
55.1
|
|
|
|
58.8
|
|
|
|
226.6
|
|
|
|
60.0
|
|
|
|
55.6
|
|
|
|
54.7
|
|
|
|
59.1
|
|
|
|
229.4
|
|
|
|
—
|
|
|
Total
|
|
|
1,915.1
|
|
|
|
2,065.1
|
|
|
|
2,065.4
|
|
|
|
2,348.2
|
|
|
|
8,393.8
|
|
|
|
1,869.8
|
|
|
|
1,996.9
|
|
|
|
2,026.4
|
|
|
|
2,422.1
|
|
|
|
8,315.1
|
|
|
|
—
|
|
|
EBITDA and EBITDA Margin with Reconciliation
|
|
|
EBITDA [a+b+c+d]
(1)
|
|
|
812.9
|
|
|
|
835.3
|
|
|
|
860.5
|
|
|
|
769.3
|
|
|
|
3,277.9
|
|
|
|
860.0
|
|
|
|
830.7
|
|
|
|
829.8
|
|
|
|
662.9
|
|
|
|
3,183.3
|
|
|
|
3,190.0
|
|
|
a Operating Income
|
|
|
358.8
|
|
|
|
374.7
|
|
|
|
393.1
|
|
|
|
221.6
|
|
|
|
1,348.1
|
|
|
|
487.4
|
|
|
|
439.1
|
|
|
|
392.1
|
|
|
|
221.2
|
|
|
|
1,539.8
|
|
|
|
1,590.0
|
|
|
b Depreciation and Amortization
|
|
|
432.6
|
|
|
|
439.1
|
|
|
|
445.5
|
|
|
|
449.2
|
|
|
|
1,766.3
|
|
|
|
359.2
|
|
|
|
357.3
|
|
|
|
366.4
|
|
|
|
379.3
|
|
|
|
1,462.2
|
|
|
|
1,359.0
|
|
|
c Loss on Sales and Disposal of Property, Plant and Equipment
|
|
|
21.5
|
|
|
|
17.9
|
|
|
|
19.5
|
|
|
|
71.8
|
|
|
|
130.7
|
|
|
|
13.0
|
|
|
|
20.0
|
|
|
|
20.0
|
|
|
|
54.4
|
|
|
|
107.4
|
|
|
|
241.0
|
|
|
d Impairment Loss
|
|
|
0.0
|
|
|
|
3.6
|
|
|
|
2.4
|
|
|
|
26.7
|
|
|
|
32.7
|
|
|
|
0.4
|
|
|
|
14.3
|
|
|
|
51.3
|
|
|
|
7.9
|
|
|
|
73.9
|
|
|
|
—
|
|
|
EBITDA Margin
[(e÷f)×100]
(1)
|
|
|
30.0
|
%
|
|
|
29.0
|
%
|
|
|
29.6
|
%
|
|
|
25.3
|
%
|
|
|
28.4
|
%
|
|
|
31.7
|
%
|
|
|
29.6
|
%
|
|
|
29.3
|
%
|
|
|
21.9
|
%
|
|
|
27.9
|
%
|
|
|
27.1
|
%
|
|
e EBITDA [a+b+c+d]
|
|
|
812.9
|
|
|
|
835.3
|
|
|
|
860.5
|
|
|
|
769.3
|
|
|
|
3,277.9
|
|
|
|
860.0
|
|
|
|
830.7
|
|
|
|
829.8
|
|
|
|
662.9
|
|
|
|
3,183.3
|
|
|
|
3,190.0
|
|
|
f Operating Revenues
|
|
|
2,706.5
|
|
|
|
2,882.5
|
|
|
|
2,906.4
|
|
|
|
3,045.6
|
|
|
|
11,541.0
|
|
|
|
2,716.7
|
|
|
|
2,807.6
|
|
|
|
2,836.2
|
|
|
|
3,030.5
|
|
|
|
11,391.0
|
|
|
|
11,750.0
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2015
|
|
|
|
|
|
FY 2016
|
|
|
|
|
|
FY 2017 (E)
|
|
|
|
|
As of
June 30
|
|
|
As of
September 30
|
|
|
As of
December 31
|
|
|
As of
March 31
|
|
|
|
|
|
As of
June 30
|
|
|
As of
September 30
|
|
|
As of
December 31
|
|
|
As of
March 31
|
|
|
|
|
|
As of
March 31
|
|
|
Interest-Bearing Liabilities
|
|
|
4,838.1
|
|
|
|
4,520.4
|
|
|
|
4,446.2
|
|
|
|
4,163.3
|
|
|
|
|
|
|
|
4,353.6
|
|
|
|
4,091.8
|
|
|
|
4,497.1
|
|
|
|
4,088.2
|
|
|
|
|
|
|
|
3,900.0
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
(1
|
)
|
|
Beginning with the three months ended March 31, 2017, the method for calculating EBITDA has been revised to add Loss on Sales of Property, Plant and Equipment and Impairment
Loss.
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and EBITDA Margin, as calculated using the previous method including only Operating Income and Depreciation and Amortization, and Loss on Disposal of Property, Plant and
Equipment, would have been 654.0 billion yen and 21.6%, respectively, for the three months ended March 31, 2017, and 3,107.8 billion yen and 27.3%, respectively, for the twelve months ended March 31, 2017. EBITDA and EBITDA
Margin figures presented in the table above have been retroactively recalculated using the new calculation method.
|
– 1
–
1. Financial Results Summary (Capital Investment)
Capital Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
FY 2015
|
|
|
FY 2016
|
|
|
FY 2017 (E)
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Year Ending
|
|
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
March 31
|
|
|
Capital Investment
(1)(2)
|
|
|
285.8
|
|
|
|
359.8
|
|
|
|
393.8
|
|
|
|
647.8
|
|
|
|
1,687.2
|
|
|
|
284.4
|
|
|
|
381.5
|
|
|
|
426.5
|
|
|
|
607.8
|
|
|
|
1,700.0
|
|
|
|
1,700.0
|
|
|
Regional communications business
|
|
|
107.7
|
|
|
|
126.9
|
|
|
|
134.5
|
|
|
|
252.9
|
|
|
|
622.1
|
|
|
|
96.3
|
|
|
|
118.7
|
|
|
|
130.6
|
|
|
|
237.7
|
|
|
|
583.4
|
|
|
|
555.0
|
|
|
Long distance and international communications business
|
|
|
42.9
|
|
|
|
53.5
|
|
|
|
58.5
|
|
|
|
72.7
|
|
|
|
227.6
|
|
|
|
44.8
|
|
|
|
56.6
|
|
|
|
67.0
|
|
|
|
76.5
|
|
|
|
244.9
|
|
|
|
249.0
|
|
|
Mobile communications business
|
|
|
93.2
|
|
|
|
126.4
|
|
|
|
143.0
|
|
|
|
232.8
|
|
|
|
595.3
|
|
|
|
97.1
|
|
|
|
148.9
|
|
|
|
153.3
|
|
|
|
197.7
|
|
|
|
597.1
|
|
|
|
570.0
|
|
|
Data communications business
|
|
|
26.9
|
|
|
|
31.4
|
|
|
|
29.9
|
|
|
|
45.9
|
|
|
|
134.0
|
|
|
|
28.5
|
|
|
|
39.1
|
|
|
|
37.9
|
|
|
|
52.5
|
|
|
|
158.1
|
|
|
|
192.0
|
|
|
Other business
|
|
|
15.2
|
|
|
|
21.6
|
|
|
|
27.8
|
|
|
|
43.5
|
|
|
|
108.2
|
|
|
|
17.6
|
|
|
|
18.1
|
|
|
|
37.6
|
|
|
|
43.3
|
|
|
|
116.6
|
|
|
|
134.0
|
|
|
(Ref.) Core Group Companies
|
|
|
NTT (Holding Company)
|
|
|
1.1
|
|
|
|
2.2
|
|
|
|
3.2
|
|
|
|
12.1
|
|
|
|
18.7
|
|
|
|
1.0
|
|
|
|
2.6
|
|
|
|
3.8
|
|
|
|
8.1
|
|
|
|
15.7
|
|
|
|
18.0
|
|
|
R&D Facilities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12.9
|
|
|
|
15.0
|
|
|
Joint Facilities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.8
|
|
|
|
3.0
|
|
|
NTT East
|
|
|
46.1
|
|
|
|
56.5
|
|
|
|
59.4
|
|
|
|
131.7
|
|
|
|
294.0
|
|
|
|
42.1
|
|
|
|
52.4
|
|
|
|
61.0
|
|
|
|
118.0
|
|
|
|
273.8
|
|
|
|
250.0
|
|
|
Service Expansion and Improvement
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
261.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
249.6
|
|
|
|
231.0
|
|
|
Voice Transmission
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
147.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
142.6
|
|
|
|
133.0
|
|
|
Data Transmission
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17.8
|
|
|
|
14.0
|
|
|
Leased Circuit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
91.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
88.2
|
|
|
|
83.0
|
|
|
Telegraph
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.9
|
|
|
|
1.0
|
|
|
R&D Facilities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.7
|
|
|
|
2.0
|
|
|
Joint Facilities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
30.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21.3
|
|
|
|
17.0
|
|
|
NTT West
|
|
|
57.9
|
|
|
|
63.5
|
|
|
|
68.5
|
|
|
|
99.4
|
|
|
|
289.4
|
|
|
|
46.2
|
|
|
|
56.8
|
|
|
|
61.7
|
|
|
|
109.3
|
|
|
|
274.1
|
|
|
|
260.0
|
|
|
Service Expansion and Improvement
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
272.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
256.0
|
|
|
|
239.0
|
|
|
Voice Transmission
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
154.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
157.7
|
|
|
|
144.0
|
|
|
Data Transmission
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22.9
|
|
|
|
17.0
|
|
|
Leased Circuit
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
96.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
74.9
|
|
|
|
77.0
|
|
|
Telegraph
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.3
|
|
|
|
1.0
|
|
|
R&D Facilities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.9
|
|
|
|
2.0
|
|
|
Joint Facilities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
15.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16.0
|
|
|
|
19.0
|
|
|
NTT Communications
|
|
|
28.0
|
|
|
|
26.9
|
|
|
|
28.6
|
|
|
|
47.2
|
|
|
|
130.8
|
|
|
|
25.1
|
|
|
|
32.2
|
|
|
|
34.1
|
|
|
|
43.6
|
|
|
|
135.1
|
|
|
|
111.0
|
|
|
Cloud Computing Platforms
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
39.6
|
|
|
|
23.0
|
|
|
Data Networks
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
16.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26.3
|
|
|
|
22.1
|
|
|
Voice Communications
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10.2
|
|
|
|
8.2
|
|
|
Applications & Content
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.9
|
|
|
|
4.1
|
|
|
Solution Services
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.3
|
|
|
|
5.3
|
|
|
Infrastructure and Joint Facilities, etc.
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
57.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
50.5
|
|
|
|
48.0
|
|
|
NTT DOCOMO (Consolidated)
|
|
|
93.1
|
|
|
|
126.3
|
|
|
|
143.0
|
|
|
|
232.8
|
|
|
|
595.2
|
|
|
|
97.1
|
|
|
|
148.9
|
|
|
|
153.3
|
|
|
|
197.7
|
|
|
|
597.1
|
|
|
|
570.0
|
|
|
NTT DATA (Consolidated)
|
|
|
26.8
|
|
|
|
31.3
|
|
|
|
29.9
|
|
|
|
45.8
|
|
|
|
134.0
|
|
|
|
28.5
|
|
|
|
39.1
|
|
|
|
37.9
|
|
|
|
52.5
|
|
|
|
158.1
|
|
|
|
192.0
|
|
|
|
|
|
|
|
|
(Ref.) Optical Access Network Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NTT East
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
90.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
85.0
|
|
|
|
Approx. 80.0
|
|
|
NTT West
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
87.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
71.0
|
|
|
|
Approx. 73.0
|
|
|
|
|
|
|
|
|
Notes :
|
|
(1)
|
|
Capital Investment figures for domestic access network businesses for Year Ended March 31, 2016, Year Ended March 31, 2017 and Year Ending March 31, 2018
(Forecast) are 1,302.3 billion yen, 1,261.6 billion yen and 1,193.0 billion yen, respectively.
|
|
|
|
(2)
|
|
Figures for NTT East and NTT West include figures for Optical Access Network Investment.
|
– 2
–
2. Financial Results (Business Segments)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
FY 2015
|
|
|
FY 2016
|
|
|
FY 2017 (E)
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Year Ending
|
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
March 31
|
|
|
Business segments
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional communications business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
836.5
|
|
|
|
844.1
|
|
|
|
839.7
|
|
|
|
887.6
|
|
|
|
3,407.9
|
|
|
|
802.9
|
|
|
|
817.5
|
|
|
|
814.4
|
|
|
|
873.4
|
|
|
|
3,308.2
|
|
|
|
3,230.0
|
|
|
Operating Expenses
|
|
|
765.4
|
|
|
|
760.6
|
|
|
|
762.1
|
|
|
|
854.8
|
|
|
|
3,142.9
|
|
|
|
675.1
|
|
|
|
713.1
|
|
|
|
716.2
|
|
|
|
844.3
|
|
|
|
2,948.7
|
|
|
|
2,900.0
|
|
|
Operating Income
|
|
|
71.1
|
|
|
|
83.5
|
|
|
|
77.6
|
|
|
|
32.8
|
|
|
|
265.0
|
|
|
|
127.8
|
|
|
|
104.5
|
|
|
|
98.2
|
|
|
|
29.0
|
|
|
|
359.5
|
|
|
|
330.0
|
|
|
Long distance and international communications business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
518.1
|
|
|
|
579.1
|
|
|
|
578.2
|
|
|
|
575.5
|
|
|
|
2,250.9
|
|
|
|
519.0
|
|
|
|
519.8
|
|
|
|
531.8
|
|
|
|
558.6
|
|
|
|
2,129.3
|
|
|
|
2,230.0
|
|
|
Operating Expenses
|
|
|
496.9
|
|
|
|
552.7
|
|
|
|
543.6
|
|
|
|
561.0
|
|
|
|
2,154.2
|
|
|
|
492.0
|
|
|
|
504.7
|
|
|
|
555.3
|
|
|
|
536.5
|
|
|
|
2,088.4
|
|
|
|
2,110.0
|
|
|
Operating Income
|
|
|
21.2
|
|
|
|
26.4
|
|
|
|
34.6
|
|
|
|
14.5
|
|
|
|
96.7
|
|
|
|
27.0
|
|
|
|
15.2
|
|
|
|
(23.5
|
)
|
|
|
22.1
|
|
|
|
40.8
|
|
|
|
120.0
|
|
|
Mobile communications business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
1,076.9
|
|
|
|
1,138.2
|
|
|
|
1,168.5
|
|
|
|
1,143.6
|
|
|
|
4,527.1
|
|
|
|
1,108.7
|
|
|
|
1,179.4
|
|
|
|
1,181.2
|
|
|
|
1,115.3
|
|
|
|
4,584.6
|
|
|
|
4,750.0
|
|
|
Operating Expenses
|
|
|
842.2
|
|
|
|
911.7
|
|
|
|
946.6
|
|
|
|
1,038.3
|
|
|
|
3,738.8
|
|
|
|
810.4
|
|
|
|
893.9
|
|
|
|
925.6
|
|
|
|
1,003.0
|
|
|
|
3,632.9
|
|
|
|
3,795.0
|
|
|
Operating Income
|
|
|
234.7
|
|
|
|
226.4
|
|
|
|
221.9
|
|
|
|
105.3
|
|
|
|
788.4
|
|
|
|
298.3
|
|
|
|
285.4
|
|
|
|
255.6
|
|
|
|
112.3
|
|
|
|
951.6
|
|
|
|
955.0
|
|
|
Data communications business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
360.2
|
|
|
|
385.5
|
|
|
|
402.1
|
|
|
|
469.0
|
|
|
|
1,616.8
|
|
|
|
373.5
|
|
|
|
388.6
|
|
|
|
402.6
|
|
|
|
554.1
|
|
|
|
1,718.7
|
|
|
|
1,970.0
|
|
|
Operating Expenses
|
|
|
341.4
|
|
|
|
366.2
|
|
|
|
366.2
|
|
|
|
430.3
|
|
|
|
1,504.1
|
|
|
|
351.6
|
|
|
|
374.6
|
|
|
|
371.4
|
|
|
|
513.3
|
|
|
|
1,610.8
|
|
|
|
1,840.0
|
|
|
Operating Income
|
|
|
18.9
|
|
|
|
19.3
|
|
|
|
35.8
|
|
|
|
38.7
|
|
|
|
112.7
|
|
|
|
21.9
|
|
|
|
14.0
|
|
|
|
31.2
|
|
|
|
40.8
|
|
|
|
107.9
|
|
|
|
130.0
|
|
|
Other business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
267.1
|
|
|
|
300.6
|
|
|
|
305.0
|
|
|
|
421.7
|
|
|
|
1,294.5
|
|
|
|
272.1
|
|
|
|
295.5
|
|
|
|
322.3
|
|
|
|
392.4
|
|
|
|
1,282.3
|
|
|
|
1,260.0
|
|
|
Operating Expenses
|
|
|
256.8
|
|
|
|
283.4
|
|
|
|
286.5
|
|
|
|
393.8
|
|
|
|
1,220.4
|
|
|
|
259.8
|
|
|
|
278.1
|
|
|
|
292.7
|
|
|
|
374.4
|
|
|
|
1,205.0
|
|
|
|
1,185.0
|
|
|
Operating Income
|
|
|
10.4
|
|
|
|
17.3
|
|
|
|
18.5
|
|
|
|
27.9
|
|
|
|
74.0
|
|
|
|
12.3
|
|
|
|
17.4
|
|
|
|
29.6
|
|
|
|
18.0
|
|
|
|
77.3
|
|
|
|
75.0
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
(1
|
)
|
|
Figures for each segment include inter-segment transactions.
|
– 3
–
3. Financial Results (Holding Company and Subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
FY 2015
|
|
|
FY 2016
|
|
|
FY 2017 (E)
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Year Ending
|
|
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
March 31
|
|
|
NTT (Holding Company) (JPN GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
224.0
|
|
|
|
32.5
|
|
|
|
130.1
|
|
|
|
134.9
|
|
|
|
521.7
|
|
|
|
269.1
|
|
|
|
32.7
|
|
|
|
138.6
|
|
|
|
33.7
|
|
|
|
474.3
|
|
|
|
662.0
|
|
|
Operating Expenses
|
|
|
30.4
|
|
|
|
30.9
|
|
|
|
31.7
|
|
|
|
44.5
|
|
|
|
137.6
|
|
|
|
29.4
|
|
|
|
30.7
|
|
|
|
31.1
|
|
|
|
43.3
|
|
|
|
134.6
|
|
|
|
130.0
|
|
|
Operating Income
|
|
|
193.6
|
|
|
|
1.6
|
|
|
|
98.4
|
|
|
|
90.4
|
|
|
|
384.0
|
|
|
|
239.6
|
|
|
|
2.0
|
|
|
|
107.5
|
|
|
|
(9.5
|
)
|
|
|
339.6
|
|
|
|
532.0
|
|
|
Non-Operating
Revenues
|
|
|
6.9
|
|
|
|
7.1
|
|
|
|
6.3
|
|
|
|
9.5
|
|
|
|
30.0
|
|
|
|
6.0
|
|
|
|
6.2
|
|
|
|
5.7
|
|
|
|
6.0
|
|
|
|
24.1
|
|
|
|
22.0
|
|
|
Non-Operating
Expenses
|
|
|
7.7
|
|
|
|
7.8
|
|
|
|
7.3
|
|
|
|
9.6
|
|
|
|
32.6
|
|
|
|
7.7
|
|
|
|
6.8
|
|
|
|
6.7
|
|
|
|
7.6
|
|
|
|
28.9
|
|
|
|
25.0
|
|
|
Recurring Profit
|
|
|
192.8
|
|
|
|
0.9
|
|
|
|
97.4
|
|
|
|
90.2
|
|
|
|
381.4
|
|
|
|
237.9
|
|
|
|
1.4
|
|
|
|
106.5
|
|
|
|
(11.0
|
)
|
|
|
334.9
|
|
|
|
529.0
|
|
|
Net Income
|
|
|
192.5
|
|
|
|
0.6
|
|
|
|
97.2
|
|
|
|
376.2
|
|
|
|
666.6
|
|
|
|
237.5
|
|
|
|
(19.7
|
)
|
|
|
79.2
|
|
|
|
(8.9
|
)
|
|
|
288.1
|
|
|
|
530.0
|
|
|
NTT East (JPN GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
429.7
|
|
|
|
429.7
|
|
|
|
427.5
|
|
|
|
435.2
|
|
|
|
1,722.3
|
|
|
|
410.1
|
|
|
|
413.3
|
|
|
|
413.1
|
|
|
|
435.5
|
|
|
|
1,672.2
|
|
|
|
1,640.0
|
|
|
Voice Transmission Services
(excluding IP)
(1)
|
|
|
110.0
|
|
|
|
108.2
|
|
|
|
106.4
|
|
|
|
103.1
|
|
|
|
427.8
|
|
|
|
101.4
|
|
|
|
99.9
|
|
|
|
99.2
|
|
|
|
95.8
|
|
|
|
396.5
|
|
|
|
370.0
|
|
|
IP Services
|
|
|
217.0
|
|
|
|
214.4
|
|
|
|
214.5
|
|
|
|
209.4
|
|
|
|
855.4
|
|
|
|
213.3
|
|
|
|
211.7
|
|
|
|
212.4
|
|
|
|
212.8
|
|
|
|
850.3
|
|
|
|
850.0
|
|
|
Leased Circuit (excluding IP)
|
|
|
28.6
|
|
|
|
26.4
|
|
|
|
24.6
|
|
|
|
23.9
|
|
|
|
103.7
|
|
|
|
24.0
|
|
|
|
23.6
|
|
|
|
23.0
|
|
|
|
22.6
|
|
|
|
93.3
|
|
|
|
93.0
|
|
|
Other
|
|
|
47.8
|
|
|
|
47.6
|
|
|
|
48.5
|
|
|
|
54.6
|
|
|
|
198.5
|
|
|
|
46.1
|
|
|
|
46.0
|
|
|
|
48.1
|
|
|
|
54.1
|
|
|
|
194.5
|
|
|
|
193.0
|
|
|
Supplementary Business
|
|
|
26.2
|
|
|
|
32.9
|
|
|
|
33.3
|
|
|
|
44.1
|
|
|
|
136.7
|
|
|
|
25.0
|
|
|
|
31.9
|
|
|
|
30.3
|
|
|
|
50.0
|
|
|
|
137.4
|
|
|
|
134.0
|
|
|
Operating Expenses
|
|
|
379.0
|
|
|
|
378.5
|
|
|
|
377.4
|
|
|
|
425.4
|
|
|
|
1,560.4
|
|
|
|
346.0
|
|
|
|
353.6
|
|
|
|
363.1
|
|
|
|
420.2
|
|
|
|
1,483.1
|
|
|
|
1,450.0
|
|
|
Personnel
|
|
|
24.3
|
|
|
|
23.8
|
|
|
|
24.0
|
|
|
|
24.6
|
|
|
|
96.8
|
|
|
|
23.6
|
|
|
|
23.6
|
|
|
|
23.2
|
|
|
|
24.0
|
|
|
|
94.6
|
|
|
|
85.0
|
|
|
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses
|
|
|
241.5
|
|
|
|
242.2
|
|
|
|
238.0
|
|
|
|
270.9
|
|
|
|
992.8
|
|
|
|
224.3
|
|
|
|
230.9
|
|
|
|
236.1
|
|
|
|
270.7
|
|
|
|
962.1
|
|
|
|
947.0
|
|
|
Depreciation and Amortization
|
|
|
87.9
|
|
|
|
86.0
|
|
|
|
86.0
|
|
|
|
82.6
|
|
|
|
342.6
|
|
|
|
72.2
|
|
|
|
72.5
|
|
|
|
76.0
|
|
|
|
74.2
|
|
|
|
295.0
|
|
|
|
234.0
|
|
|
Loss on Disposal of Property, Plant and Equipment
|
|
|
6.3
|
|
|
|
8.7
|
|
|
|
11.4
|
|
|
|
28.1
|
|
|
|
54.7
|
|
|
|
6.1
|
|
|
|
8.4
|
|
|
|
9.7
|
|
|
|
31.5
|
|
|
|
55.9
|
|
|
|
110.0
|
|
|
Taxes and Public Dues
|
|
|
18.8
|
|
|
|
17.5
|
|
|
|
17.8
|
|
|
|
18.9
|
|
|
|
73.3
|
|
|
|
19.5
|
|
|
|
18.1
|
|
|
|
17.9
|
|
|
|
19.6
|
|
|
|
75.3
|
|
|
|
74.0
|
|
|
Operating Income
|
|
|
50.7
|
|
|
|
51.2
|
|
|
|
50.1
|
|
|
|
9.7
|
|
|
|
161.8
|
|
|
|
64.1
|
|
|
|
59.6
|
|
|
|
49.9
|
|
|
|
15.3
|
|
|
|
189.1
|
|
|
|
190.0
|
|
|
Non-Operating
Revenues
|
|
|
5.8
|
|
|
|
6.2
|
|
|
|
0.7
|
|
|
|
4.6
|
|
|
|
17.5
|
|
|
|
17.3
|
|
|
|
0.5
|
|
|
|
1.5
|
|
|
|
0.7
|
|
|
|
20.2
|
|
|
|
5.0
|
|
|
Non-Operating
Expenses
|
|
|
1.4
|
|
|
|
1.3
|
|
|
|
1.3
|
|
|
|
1.6
|
|
|
|
5.9
|
|
|
|
1.2
|
|
|
|
1.2
|
|
|
|
1.2
|
|
|
|
1.1
|
|
|
|
4.9
|
|
|
|
5.0
|
|
|
Recurring Profit
|
|
|
55.0
|
|
|
|
56.1
|
|
|
|
49.5
|
|
|
|
12.7
|
|
|
|
173.4
|
|
|
|
80.2
|
|
|
|
58.9
|
|
|
|
50.2
|
|
|
|
14.9
|
|
|
|
204.4
|
|
|
|
190.0
|
|
|
Net Income
|
|
|
40.9
|
|
|
|
37.1
|
|
|
|
35.0
|
|
|
|
5.6
|
|
|
|
118.7
|
|
|
|
57.8
|
|
|
|
42.1
|
|
|
|
36.5
|
|
|
|
13.1
|
|
|
|
149.6
|
|
|
|
131.0
|
|
|
NTT West (JPN GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
374.1
|
|
|
|
380.5
|
|
|
|
374.4
|
|
|
|
398.8
|
|
|
|
1,528.0
|
|
|
|
362.0
|
|
|
|
368.4
|
|
|
|
362.7
|
|
|
|
385.7
|
|
|
|
1,479.0
|
|
|
|
1,436.0
|
|
|
Voice Transmission Services
(excluding IP)
(1)
|
|
|
110.5
|
|
|
|
108.4
|
|
|
|
106.5
|
|
|
|
103.1
|
|
|
|
428.6
|
|
|
|
101.6
|
|
|
|
99.9
|
|
|
|
99.0
|
|
|
|
95.6
|
|
|
|
396.2
|
|
|
|
370.0
|
|
|
IP Services
|
|
|
174.5
|
|
|
|
176.2
|
|
|
|
176.0
|
|
|
|
175.8
|
|
|
|
702.7
|
|
|
|
175.5
|
|
|
|
173.6
|
|
|
|
174.0
|
|
|
|
173.9
|
|
|
|
697.2
|
|
|
|
689.0
|
|
|
Leased Circuit (excluding IP)
|
|
|
24.7
|
|
|
|
23.7
|
|
|
|
22.7
|
|
|
|
22.1
|
|
|
|
93.3
|
|
|
|
22.0
|
|
|
|
21.7
|
|
|
|
21.3
|
|
|
|
21.1
|
|
|
|
86.3
|
|
|
|
87.0
|
|
|
Other
|
|
|
35.1
|
|
|
|
35.3
|
|
|
|
36.0
|
|
|
|
41.3
|
|
|
|
147.8
|
|
|
|
33.8
|
|
|
|
35.0
|
|
|
|
35.9
|
|
|
|
40.8
|
|
|
|
145.6
|
|
|
|
138.0
|
|
|
Supplementary Business
|
|
|
29.1
|
|
|
|
36.8
|
|
|
|
33.0
|
|
|
|
56.3
|
|
|
|
155.4
|
|
|
|
29.0
|
|
|
|
38.0
|
|
|
|
32.2
|
|
|
|
54.0
|
|
|
|
153.4
|
|
|
|
152.0
|
|
|
Operating Expenses
|
|
|
359.2
|
|
|
|
357.9
|
|
|
|
344.1
|
|
|
|
392.6
|
|
|
|
1,453.9
|
|
|
|
323.3
|
|
|
|
335.9
|
|
|
|
336.6
|
|
|
|
387.8
|
|
|
|
1,383.8
|
|
|
|
1,336.0
|
|
|
Personnel
|
|
|
22.6
|
|
|
|
22.3
|
|
|
|
22.3
|
|
|
|
22.7
|
|
|
|
90.0
|
|
|
|
20.3
|
|
|
|
20.0
|
|
|
|
19.9
|
|
|
|
20.2
|
|
|
|
80.5
|
|
|
|
77.0
|
|
|
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses
|
|
|
230.0
|
|
|
|
230.2
|
|
|
|
213.7
|
|
|
|
250.5
|
|
|
|
924.5
|
|
|
|
206.3
|
|
|
|
219.1
|
|
|
|
215.4
|
|
|
|
254.4
|
|
|
|
895.4
|
|
|
|
860.0
|
|
|
Depreciation and Amortization
|
|
|
80.5
|
|
|
|
79.2
|
|
|
|
79.5
|
|
|
|
77.7
|
|
|
|
317.0
|
|
|
|
70.4
|
|
|
|
70.8
|
|
|
|
74.1
|
|
|
|
72.1
|
|
|
|
287.6
|
|
|
|
213.0
|
|
|
Loss on Disposal of Property, Plant and Equipment
|
|
|
8.7
|
|
|
|
10.0
|
|
|
|
12.3
|
|
|
|
25.0
|
|
|
|
56.2
|
|
|
|
8.6
|
|
|
|
9.4
|
|
|
|
10.9
|
|
|
|
24.1
|
|
|
|
53.2
|
|
|
|
119.0
|
|
|
Taxes and Public Dues
|
|
|
17.2
|
|
|
|
16.0
|
|
|
|
16.1
|
|
|
|
16.4
|
|
|
|
66.0
|
|
|
|
17.5
|
|
|
|
16.3
|
|
|
|
16.2
|
|
|
|
16.8
|
|
|
|
66.9
|
|
|
|
67.0
|
|
|
Operating Income
|
|
|
14.8
|
|
|
|
22.6
|
|
|
|
30.2
|
|
|
|
6.2
|
|
|
|
74.0
|
|
|
|
38.7
|
|
|
|
32.5
|
|
|
|
26.0
|
|
|
|
(2.0
|
)
|
|
|
95.1
|
|
|
|
100.0
|
|
|
Non-Operating
Revenues
|
|
|
2.7
|
|
|
|
0.6
|
|
|
|
0.5
|
|
|
|
1.7
|
|
|
|
5.7
|
|
|
|
1.2
|
|
|
|
0.4
|
|
|
|
0.5
|
|
|
|
0.7
|
|
|
|
2.9
|
|
|
|
4.0
|
|
|
Non-Operating
Expenses
|
|
|
2.8
|
|
|
|
3.7
|
|
|
|
2.2
|
|
|
|
3.8
|
|
|
|
12.7
|
|
|
|
2.0
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
4.3
|
|
|
|
9.9
|
|
|
|
9.0
|
|
|
Recurring Profit
|
|
|
14.7
|
|
|
|
19.5
|
|
|
|
28.5
|
|
|
|
4.2
|
|
|
|
67.1
|
|
|
|
37.8
|
|
|
|
31.1
|
|
|
|
24.8
|
|
|
|
(5.7
|
)
|
|
|
88.1
|
|
|
|
95.0
|
|
|
Net Income
|
|
|
12.2
|
|
|
|
14.0
|
|
|
|
19.6
|
|
|
|
26.4
|
|
|
|
72.4
|
|
|
|
23.3
|
|
|
|
22.2
|
|
|
|
18.0
|
|
|
|
(3.8
|
)
|
|
|
59.7
|
|
|
|
70.0
|
|
|
|
|
|
|
|
|
Note:
|
|
(1)
|
|
Operating Revenues from Voice Transmission Services (excluding IP) of NTT East and NTT West for the fiscal year ended March 31, 2017 include monthly charges, call charges and
interconnection charges of 299.9 billion yen, 26.2 billion yen and 45.6 billion yen for NTT East, and 298.3 billion yen, 24.5 billion yen and 49.6 billion yen for NTT West, respectively.
|
– 4
–
3. Financial Results (Holding Company and Subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
FY 2015
|
|
|
FY 2016
|
|
|
FY 2017 (E)
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Year Ending
|
|
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
March 31
|
|
|
NTT Communications (JPN GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
(1)
|
|
|
216.6
|
|
|
|
225.3
|
|
|
|
226.2
|
|
|
|
250.0
|
|
|
|
918.3
|
|
|
|
220.2
|
|
|
|
226.9
|
|
|
|
227.0
|
|
|
|
249.6
|
|
|
|
923.8
|
|
|
|
940.0
|
|
|
Cloud Computing Platforms
|
|
|
16.7
|
|
|
|
17.0
|
|
|
|
17.4
|
|
|
|
18.7
|
|
|
|
70.0
|
|
|
|
17.1
|
|
|
|
17.6
|
|
|
|
17.6
|
|
|
|
19.5
|
|
|
|
72.0
|
|
|
|
87.0
|
|
|
Data Networks
|
|
|
91.0
|
|
|
|
91.7
|
|
|
|
92.7
|
|
|
|
94.3
|
|
|
|
369.8
|
|
|
|
94.8
|
|
|
|
95.1
|
|
|
|
96.3
|
|
|
|
98.4
|
|
|
|
384.8
|
|
|
|
393.0
|
|
|
Voice Communications
|
|
|
64.3
|
|
|
|
64.5
|
|
|
|
66.9
|
|
|
|
64.4
|
|
|
|
260.3
|
|
|
|
63.0
|
|
|
|
63.3
|
|
|
|
63.7
|
|
|
|
60.6
|
|
|
|
250.7
|
|
|
|
244.0
|
|
|
Applications & Content
|
|
|
9.5
|
|
|
|
9.8
|
|
|
|
9.3
|
|
|
|
9.8
|
|
|
|
38.7
|
|
|
|
9.4
|
|
|
|
9.2
|
|
|
|
9.3
|
|
|
|
9.6
|
|
|
|
37.7
|
|
|
|
37.0
|
|
|
Solution Services
|
|
|
31.0
|
|
|
|
38.2
|
|
|
|
35.8
|
|
|
|
57.2
|
|
|
|
162.3
|
|
|
|
31.9
|
|
|
|
37.7
|
|
|
|
36.1
|
|
|
|
57.5
|
|
|
|
163.4
|
|
|
|
159.0
|
|
|
Others
|
|
|
3.8
|
|
|
|
3.9
|
|
|
|
3.8
|
|
|
|
5.3
|
|
|
|
16.9
|
|
|
|
3.7
|
|
|
|
3.7
|
|
|
|
3.8
|
|
|
|
3.6
|
|
|
|
14.9
|
|
|
|
20.0
|
|
|
Operating Expenses
|
|
|
199.3
|
|
|
|
202.5
|
|
|
|
199.4
|
|
|
|
225.7
|
|
|
|
827.1
|
|
|
|
194.3
|
|
|
|
202.5
|
|
|
|
204.1
|
|
|
|
230.2
|
|
|
|
831.3
|
|
|
|
847.0
|
|
|
Personnel
|
|
|
19.1
|
|
|
|
19.1
|
|
|
|
18.8
|
|
|
|
20.0
|
|
|
|
77.2
|
|
|
|
19.2
|
|
|
|
18.9
|
|
|
|
19.0
|
|
|
|
19.7
|
|
|
|
77.0
|
|
|
|
77.0
|
|
|
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses
|
|
|
100.9
|
|
|
|
102.9
|
|
|
|
97.1
|
|
|
|
116.0
|
|
|
|
417.1
|
|
|
|
90.8
|
|
|
|
98.8
|
|
|
|
95.1
|
|
|
|
121.6
|
|
|
|
406.4
|
|
|
|
639.0
|
|
|
Communication Network Charges
|
|
|
49.6
|
|
|
|
50.8
|
|
|
|
52.5
|
|
|
|
56.8
|
|
|
|
209.9
|
|
|
|
54.7
|
|
|
|
54.6
|
|
|
|
59.2
|
|
|
|
54.4
|
|
|
|
223.1
|
|
|
|
|
|
|
Depreciation and Amortization
|
|
|
25.9
|
|
|
|
25.9
|
|
|
|
26.7
|
|
|
|
25.7
|
|
|
|
104.4
|
|
|
|
25.4
|
|
|
|
25.6
|
|
|
|
26.2
|
|
|
|
27.0
|
|
|
|
104.4
|
|
|
|
96.0
|
|
|
Loss on Disposal of Property, Plant and Equipment
|
|
|
0.4
|
|
|
|
0.6
|
|
|
|
0.9
|
|
|
|
3.7
|
|
|
|
5.6
|
|
|
|
0.5
|
|
|
|
1.0
|
|
|
|
0.9
|
|
|
|
4.1
|
|
|
|
6.7
|
|
|
|
22.0
|
|
|
Taxes and Public Dues
|
|
|
3.2
|
|
|
|
3.1
|
|
|
|
3.1
|
|
|
|
3.1
|
|
|
|
12.7
|
|
|
|
3.5
|
|
|
|
3.2
|
|
|
|
3.4
|
|
|
|
3.2
|
|
|
|
13.4
|
|
|
|
13.0
|
|
|
Operating Income
|
|
|
17.2
|
|
|
|
22.7
|
|
|
|
26.7
|
|
|
|
24.3
|
|
|
|
91.1
|
|
|
|
25.8
|
|
|
|
24.3
|
|
|
|
22.9
|
|
|
|
19.4
|
|
|
|
92.5
|
|
|
|
93.0
|
|
|
Non-Operating
Revenues
|
|
|
8.8
|
|
|
|
7.1
|
|
|
|
6.2
|
|
|
|
4.9
|
|
|
|
27.1
|
|
|
|
7.4
|
|
|
|
5.6
|
|
|
|
4.0
|
|
|
|
3.5
|
|
|
|
20.7
|
|
|
|
18.0
|
|
|
Non-Operating
Expenses
|
|
|
2.3
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
2.2
|
|
|
|
8.1
|
|
|
|
2.3
|
|
|
|
1.6
|
|
|
|
1.3
|
|
|
|
2.5
|
|
|
|
7.8
|
|
|
|
8.0
|
|
|
Recurring Profit
|
|
|
23.7
|
|
|
|
28.0
|
|
|
|
31.2
|
|
|
|
27.1
|
|
|
|
110.2
|
|
|
|
30.9
|
|
|
|
28.3
|
|
|
|
25.6
|
|
|
|
20.5
|
|
|
|
105.4
|
|
|
|
103.0
|
|
|
Net Income
|
|
|
16.6
|
|
|
|
19.8
|
|
|
|
22.6
|
|
|
|
13.1
|
|
|
|
72.3
|
|
|
|
22.3
|
|
|
|
20.4
|
|
|
|
18.5
|
|
|
|
23.6
|
|
|
|
85.0
|
|
|
|
73.0
|
|
|
Dimension Data (IFRS)
(2)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
206.8
|
|
|
|
247.1
|
|
|
|
246.5
|
|
|
|
221.5
|
|
|
|
921.9
|
|
|
|
206.6
|
|
|
|
198.6
|
|
|
|
196.4
|
|
|
|
207.4
|
|
|
|
809.0
|
|
|
|
890.0
|
|
|
Operating Expenses
|
|
|
207.9
|
|
|
|
246.4
|
|
|
|
244.0
|
|
|
|
223.4
|
|
|
|
921.6
|
|
|
|
207.9
|
|
|
|
205.7
|
|
|
|
197.9
|
|
|
|
207.4
|
|
|
|
818.9
|
|
|
|
881.0
|
|
|
Operating Income
(4)
|
|
|
(1.0
|
)
|
|
|
0.8
|
|
|
|
2.5
|
|
|
|
(2.0
|
)
|
|
|
0.3
|
|
|
|
(1.3
|
)
|
|
|
(7.0
|
)
|
|
|
(1.5
|
)
|
|
|
(0.0
|
)
|
|
|
(9.9
|
)
|
|
|
9.0
|
|
|
Net Income Attributable to Dimension Data
|
|
|
(2.8
|
)
|
|
|
(1.4
|
)
|
|
|
2.6
|
|
|
|
(6.1
|
)
|
|
|
(7.7
|
)
|
|
|
(2.4
|
)
|
|
|
(9.6
|
)
|
|
|
(14.6
|
)
|
|
|
(1.4
|
)
|
|
|
(27.9
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
Notes:
|
|
(1)
|
|
The following are the main services included in each line item:
|
|
|
|
|
|
- Cloud Computing Platforms: “Data center services” and “Private Cloud (Enterprise Cloud, etc.)”
|
|
|
|
|
|
- Data Networks: “Closed network services (Arcstar Universal One, etc.)” and “Open network service (OCN, etc.)”
|
|
|
|
|
|
- Voice Communications: “Telephone services” and “VoIP services (050 plus, etc.)”
|
|
|
|
|
|
- Applications & Content: “Application services (Mail services, etc.)”
|
|
|
|
|
|
- Solution Services: “System integration services”
|
|
|
|
(2)
|
|
Because Dimension Data’s statements of income from January 1 to December 31, 2016 are consolidated into NTT’s consolidated statements of income from
April 1, 2016 to March 31, 2017, Dimension Data’s financial results for the twelve months ended December 31, 2016 are included under Year Ended March 31, 2017 and Dimension Data’s forecast for the twelve months ending
December 31, 2017 is included under Year Ending March 31, 2018 (Forecast).
|
|
|
|
(3)
|
|
The conversion rate used for Dimension Data figures for the fiscal year ended March 31, 2017 is USD1.00 = JPY108.78.
|
|
|
|
(4)
|
|
Operating Income for the fiscal year ended March 31, 2017 under US GAAP was (68.4) billion yen.
|
– 5
–
3. Financial Results (Holding Company and Subsidiaries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Billions of yen)
|
|
|
|
|
FY 2015
|
|
|
FY 2016
|
|
|
FY 2017 (E)
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Year Ending
|
|
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
March 31
|
|
|
NTT DOCOMO Consolidated (US GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
|
|
|
1,076.9
|
|
|
|
1,138.1
|
|
|
|
1,168.5
|
|
|
|
1,143.6
|
|
|
|
4,527.1
|
|
|
|
1,108.7
|
|
|
|
1,179.7
|
|
|
|
1,181.3
|
|
|
|
1,115.0
|
|
|
|
4,584.6
|
|
|
|
4,750.0
|
|
|
Telecommunications Services
|
|
|
675.3
|
|
|
|
707.1
|
|
|
|
717.3
|
|
|
|
715.9
|
|
|
|
2,815.5
|
|
|
|
729.7
|
|
|
|
744.8
|
|
|
|
750.7
|
|
|
|
759.9
|
|
|
|
2,985.1
|
|
|
|
3,125.0
|
|
|
Mobile Communications Services
|
|
|
669.4
|
|
|
|
697.2
|
|
|
|
703.6
|
|
|
|
697.4
|
|
|
|
2,767.6
|
|
|
|
704.2
|
|
|
|
712.8
|
|
|
|
712.1
|
|
|
|
714.8
|
|
|
|
2,844.0
|
|
|
|
2,894.0
|
|
|
Voice Revenues
|
|
|
196.6
|
|
|
|
217.0
|
|
|
|
219.8
|
|
|
|
216.0
|
|
|
|
849.4
|
|
|
|
215.9
|
|
|
|
219.6
|
|
|
|
224.8
|
|
|
|
215.0
|
|
|
|
875.2
|
|
|
|
928.0
|
|
|
Packet Communications Revenues
|
|
|
472.7
|
|
|
|
480.2
|
|
|
|
483.8
|
|
|
|
481.4
|
|
|
|
1,918.2
|
|
|
|
488.3
|
|
|
|
493.3
|
|
|
|
487.4
|
|
|
|
499.8
|
|
|
|
1,968.8
|
|
|
|
1,966.0
|
|
|
Optical-fiber Broadband Services and Other Telecommunications Services
|
|
|
5.9
|
|
|
|
9.9
|
|
|
|
13.7
|
|
|
|
18.5
|
|
|
|
47.9
|
|
|
|
25.5
|
|
|
|
31.9
|
|
|
|
38.6
|
|
|
|
45.1
|
|
|
|
141.1
|
|
|
|
231.0
|
|
|
Equipment Sales
|
|
|
201.3
|
|
|
|
215.5
|
|
|
|
241.0
|
|
|
|
202.7
|
|
|
|
860.5
|
|
|
|
165.8
|
|
|
|
214.4
|
|
|
|
206.2
|
|
|
|
132.9
|
|
|
|
719.2
|
|
|
|
748.0
|
|
|
Other Operating Revenues
|
|
|
200.3
|
|
|
|
215.6
|
|
|
|
210.2
|
|
|
|
225.1
|
|
|
|
851.1
|
|
|
|
213.2
|
|
|
|
220.5
|
|
|
|
224.4
|
|
|
|
222.2
|
|
|
|
880.3
|
|
|
|
877.0
|
|
|
Operating Expenses
|
|
|
841.5
|
|
|
|
910.9
|
|
|
|
945.5
|
|
|
|
1,046.1
|
|
|
|
3,744.1
|
|
|
|
809.4
|
|
|
|
893.4
|
|
|
|
924.5
|
|
|
|
1,012.6
|
|
|
|
3,639.8
|
|
|
|
3,790.0
|
|
|
Personnel
|
|
|
72.3
|
|
|
|
72.0
|
|
|
|
72.1
|
|
|
|
69.8
|
|
|
|
286.2
|
|
|
|
72.3
|
|
|
|
72.8
|
|
|
|
72.2
|
|
|
|
74.5
|
|
|
|
291.8
|
|
|
|
300.0
|
|
|
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses
|
|
|
537.5
|
|
|
|
597.9
|
|
|
|
619.4
|
|
|
|
672.5
|
|
|
|
2,427.3
|
|
|
|
531.5
|
|
|
|
600.6
|
|
|
|
622.8
|
|
|
|
677.3
|
|
|
|
2,432.1
|
|
|
|
2,498.0
|
|
|
Depreciation and Amortization
|
|
|
145.6
|
|
|
|
151.5
|
|
|
|
160.0
|
|
|
|
168.8
|
|
|
|
625.9
|
|
|
|
109.7
|
|
|
|
110.8
|
|
|
|
113.9
|
|
|
|
117.9
|
|
|
|
452.3
|
|
|
|
490.0
|
|
|
Impairment Loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17.7
|
|
|
|
17.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12.2
|
|
|
|
12.2
|
|
|
|
—
|
|
|
Loss on Disposal of Property, Plant and Equipment
|
|
|
11.3
|
|
|
|
11.2
|
|
|
|
12.2
|
|
|
|
34.0
|
|
|
|
68.8
|
|
|
|
7.9
|
|
|
|
16.8
|
|
|
|
16.5
|
|
|
|
38.3
|
|
|
|
79.6
|
|
|
|
60.0
|
|
|
Communication Network Charges
|
|
|
64.6
|
|
|
|
68.3
|
|
|
|
71.8
|
|
|
|
72.2
|
|
|
|
276.9
|
|
|
|
76.7
|
|
|
|
82.1
|
|
|
|
88.8
|
|
|
|
81.8
|
|
|
|
329.4
|
|
|
|
400.0
|
|
|
Taxes and Public Dues
|
|
|
10.3
|
|
|
|
10.0
|
|
|
|
10.1
|
|
|
|
11.0
|
|
|
|
41.3
|
|
|
|
11.2
|
|
|
|
10.3
|
|
|
|
10.3
|
|
|
|
10.5
|
|
|
|
42.4
|
|
|
|
42.0
|
|
|
Operating Income
|
|
|
235.4
|
|
|
|
227.2
|
|
|
|
222.9
|
|
|
|
97.5
|
|
|
|
783.0
|
|
|
|
299.3
|
|
|
|
286.3
|
|
|
|
256.7
|
|
|
|
102.4
|
|
|
|
944.7
|
|
|
|
960.0
|
|
|
Non-Operating
Income (Loss)
|
|
|
5.2
|
|
|
|
(15.2
|
)
|
|
|
1.9
|
|
|
|
3.1
|
|
|
|
(5.0
|
)
|
|
|
(4.0
|
)
|
|
|
(0.4
|
)
|
|
|
8.3
|
|
|
|
1.0
|
|
|
|
4.8
|
|
|
|
6.0
|
|
|
Income Before Income Taxes
|
|
|
240.6
|
|
|
|
212.0
|
|
|
|
224.8
|
|
|
|
100.6
|
|
|
|
778.0
|
|
|
|
295.3
|
|
|
|
285.9
|
|
|
|
265.0
|
|
|
|
103.4
|
|
|
|
949.6
|
|
|
|
966.0
|
|
|
Net Income Attributable to NTT DOCOMO
|
|
|
168.8
|
|
|
|
148.4
|
|
|
|
175.3
|
|
|
|
55.9
|
|
|
|
548.4
|
|
|
|
206.9
|
|
|
|
198.6
|
|
|
|
184.0
|
|
|
|
63.1
|
|
|
|
652.5
|
|
|
|
655.0
|
|
|
NTT DATA Consolidated (JPN GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
358.5
|
|
|
|
384.6
|
|
|
|
402.0
|
|
|
|
469.5
|
|
|
|
1,614.8
|
|
|
|
392.2
|
|
|
|
387.4
|
|
|
|
401.2
|
|
|
|
551.5
|
|
|
|
1,732.4
|
|
|
|
2,060.0
|
|
|
Public & Social Infrastructure
|
|
|
82.5
|
|
|
|
94.1
|
|
|
|
100.7
|
|
|
|
143.3
|
|
|
|
420.8
|
|
|
|
89.1
|
|
|
|
97.6
|
|
|
|
109.5
|
|
|
|
159.1
|
|
|
|
455.4
|
|
|
|
447.0
|
|
|
Financial
|
|
|
116.3
|
|
|
|
120.2
|
|
|
|
136.1
|
|
|
|
150.9
|
|
|
|
523.6
|
|
|
|
118.6
|
|
|
|
127.7
|
|
|
|
124.3
|
|
|
|
147.2
|
|
|
|
518.0
|
|
|
|
539.0
|
|
|
Enterprise & Solutions
|
|
|
88.9
|
|
|
|
97.6
|
|
|
|
94.0
|
|
|
|
111.1
|
|
|
|
391.8
|
|
|
|
97.7
|
|
|
|
103.1
|
|
|
|
103.0
|
|
|
|
121.6
|
|
|
|
425.6
|
|
|
|
442.0
|
|
|
Global
|
|
|
122.6
|
|
|
|
129.9
|
|
|
|
129.9
|
|
|
|
136.9
|
|
|
|
519.6
|
|
|
|
145.2
|
|
|
|
122.8
|
|
|
|
128.7
|
|
|
|
206.5
|
|
|
|
603.3
|
|
|
|
908.0
|
|
|
Elimination or Corporate
|
|
|
(51.9
|
)
|
|
|
(57.4
|
)
|
|
|
(58.8
|
)
|
|
|
(72.8
|
)
|
|
|
(241.0
|
)
|
|
|
(58.5
|
)
|
|
|
(63.9
|
)
|
|
|
(64.5
|
)
|
|
|
(83.0
|
)
|
|
|
(269.9
|
)
|
|
|
(276.0
|
)
|
|
Cost of Sales
|
|
|
270.5
|
|
|
|
296.0
|
|
|
|
295.7
|
|
|
|
354.4
|
|
|
|
1,216.7
|
|
|
|
294.5
|
|
|
|
286.7
|
|
|
|
293.7
|
|
|
|
418.6
|
|
|
|
1,293.6
|
|
|
|
1,550.0
|
|
|
Gross Profit
|
|
|
88.0
|
|
|
|
88.6
|
|
|
|
106.3
|
|
|
|
115.1
|
|
|
|
398.1
|
|
|
|
97.6
|
|
|
|
100.6
|
|
|
|
107.5
|
|
|
|
132.9
|
|
|
|
438.8
|
|
|
|
510.0
|
|
|
Selling, General and Administrative Expenses
|
|
|
72.8
|
|
|
|
72.6
|
|
|
|
73.1
|
|
|
|
78.5
|
|
|
|
297.2
|
|
|
|
80.3
|
|
|
|
72.7
|
|
|
|
78.3
|
|
|
|
90.4
|
|
|
|
321.7
|
|
|
|
390.0
|
|
|
Operating Income
|
|
|
15.1
|
|
|
|
15.9
|
|
|
|
33.1
|
|
|
|
36.6
|
|
|
|
100.8
|
|
|
|
17.3
|
|
|
|
27.9
|
|
|
|
29.1
|
|
|
|
42.5
|
|
|
|
117.1
|
|
|
|
120.0
|
|
|
Non-Operating
Income (Loss)
|
|
|
0.2
|
|
|
|
(0.1
|
)
|
|
|
(3.4
|
)
|
|
|
0.5
|
|
|
|
(2.7
|
)
|
|
|
(0
|
)
|
|
|
(0.1
|
)
|
|
|
(1.1
|
)
|
|
|
(2.7
|
)
|
|
|
(4.1
|
)
|
|
|
(4.0
|
)
|
|
Ordinary income
|
|
|
15.3
|
|
|
|
15.8
|
|
|
|
29.7
|
|
|
|
37.1
|
|
|
|
98.1
|
|
|
|
17.3
|
|
|
|
27.7
|
|
|
|
28.0
|
|
|
|
39.8
|
|
|
|
112.9
|
|
|
|
116.0
|
|
|
Net Income Attributable to Owners of Parent
|
|
|
7.3
|
|
|
|
8.3
|
|
|
|
28.1
|
|
|
|
19.4
|
|
|
|
63.3
|
|
|
|
10.0
|
|
|
|
18.9
|
|
|
|
16.0
|
|
|
|
20.6
|
|
|
|
65.6
|
|
|
|
59.0
|
|
– 6
–
4. Operating Data
Number of Subscribers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands except for Public Telephones)
|
|
|
|
|
FY 2015
|
|
|
FY 2016
|
|
|
FY 2017 (E)
|
|
|
|
|
As of
June 30
|
|
|
As of
September 30
|
|
|
As of
December 31
|
|
|
As of
March 31
|
|
|
As of
June 30
|
|
|
As of
September 30
|
|
|
As of
December 31
|
|
|
As of
March 31
|
|
|
As of
March 31
|
|
|
Telephone Subscriber Lines
(1)
|
|
|
20,891
|
|
|
|
20,580
|
|
|
|
20,278
|
|
|
|
19,943
|
|
|
|
19,671
|
|
|
|
19,413
|
|
|
|
19,117
|
|
|
|
18,797
|
|
|
|
17,785
|
|
|
NTT East
|
|
|
10,324
|
|
|
|
10,181
|
|
|
|
10,036
|
|
|
|
9,875
|
|
|
|
9,740
|
|
|
|
9,617
|
|
|
|
9,471
|
|
|
|
9,315
|
|
|
|
8,865
|
|
|
NTT West
|
|
|
10,567
|
|
|
|
10,399
|
|
|
|
10,242
|
|
|
|
10,068
|
|
|
|
9,931
|
|
|
|
9,796
|
|
|
|
9,647
|
|
|
|
9,482
|
|
|
|
8,920
|
|
|
INS-Net
(2)
|
|
|
2,975
|
|
|
|
2,906
|
|
|
|
2,843
|
|
|
|
2,776
|
|
|
|
2,719
|
|
|
|
2,661
|
|
|
|
2,602
|
|
|
|
2,539
|
|
|
|
2,326
|
|
|
NTT East
|
|
|
1,519
|
|
|
|
1,483
|
|
|
|
1,450
|
|
|
|
1,414
|
|
|
|
1,384
|
|
|
|
1,356
|
|
|
|
1,325
|
|
|
|
1,293
|
|
|
|
1,193
|
|
|
NTT West
|
|
|
1,456
|
|
|
|
1,423
|
|
|
|
1,393
|
|
|
|
1,361
|
|
|
|
1,334
|
|
|
|
1,305
|
|
|
|
1,276
|
|
|
|
1,246
|
|
|
|
1,133
|
|
|
Telephone Subscriber Lines +
INS-Net
|
|
|
23,866
|
|
|
|
23,486
|
|
|
|
23,121
|
|
|
|
22,718
|
|
|
|
22,390
|
|
|
|
22,074
|
|
|
|
21,719
|
|
|
|
21,336
|
|
|
|
20,111
|
|
|
NTT East
|
|
|
11,844
|
|
|
|
11,664
|
|
|
|
11,486
|
|
|
|
11,289
|
|
|
|
11,125
|
|
|
|
10,973
|
|
|
|
10,796
|
|
|
|
10,609
|
|
|
|
10,059
|
|
|
NTT West
|
|
|
12,023
|
|
|
|
11,822
|
|
|
|
11,634
|
|
|
|
11,429
|
|
|
|
11,265
|
|
|
|
11,102
|
|
|
|
10,923
|
|
|
|
10,727
|
|
|
|
10,052
|
|
|
Public Telephones
|
|
|
181,711
|
|
|
|
179,428
|
|
|
|
176,573
|
|
|
|
171,179
|
|
|
|
168,673
|
|
|
|
166,120
|
|
|
|
163,921
|
|
|
|
161,375
|
|
|
|
157,972
|
|
|
NTT East
|
|
|
86,514
|
|
|
|
85,071
|
|
|
|
82,907
|
|
|
|
78,199
|
|
|
|
76,511
|
|
|
|
74,846
|
|
|
|
73,357
|
|
|
|
71,434
|
|
|
|
70,434
|
|
|
NTT West
|
|
|
95,197
|
|
|
|
94,357
|
|
|
|
93,666
|
|
|
|
92,980
|
|
|
|
92,162
|
|
|
|
91,274
|
|
|
|
90,564
|
|
|
|
89,941
|
|
|
|
87,538
|
|
|
FLET’S ISDN
|
|
|
93
|
|
|
|
90
|
|
|
|
88
|
|
|
|
85
|
|
|
|
83
|
|
|
|
81
|
|
|
|
79
|
|
|
|
77
|
|
|
|
70
|
|
|
NTT East
|
|
|
41
|
|
|
|
40
|
|
|
|
38
|
|
|
|
37
|
|
|
|
36
|
|
|
|
35
|
|
|
|
34
|
|
|
|
33
|
|
|
|
30
|
|
|
NTT West
|
|
|
52
|
|
|
|
51
|
|
|
|
49
|
|
|
|
48
|
|
|
|
47
|
|
|
|
46
|
|
|
|
45
|
|
|
|
44
|
|
|
|
39
|
|
|
FLET’S ADSL
|
|
|
1,162
|
|
|
|
1,125
|
|
|
|
1,090
|
|
|
|
1,053
|
|
|
|
1,019
|
|
|
|
987
|
|
|
|
955
|
|
|
|
919
|
|
|
|
791
|
|
|
NTT East
|
|
|
526
|
|
|
|
510
|
|
|
|
493
|
|
|
|
475
|
|
|
|
459
|
|
|
|
444
|
|
|
|
428
|
|
|
|
411
|
|
|
|
351
|
|
|
NTT West
|
|
|
636
|
|
|
|
615
|
|
|
|
597
|
|
|
|
577
|
|
|
|
560
|
|
|
|
543
|
|
|
|
527
|
|
|
|
508
|
|
|
|
440
|
|
|
FLET’S Hikari (including Hikari Collaboration Model)
(3)(4)(5)
|
|
|
18,951
|
|
|
|
19,036
|
|
|
|
19,157
|
|
|
|
19,259
|
|
|
|
19,520
|
|
|
|
19,704
|
|
|
|
19,903
|
|
|
|
20,053
|
|
|
|
20,853
|
|
|
NTT East
|
|
|
10,476
|
|
|
|
10,510
|
|
|
|
10,582
|
|
|
|
10,666
|
|
|
|
10,839
|
|
|
|
10,958
|
|
|
|
11,078
|
|
|
|
11,173
|
|
|
|
11,673
|
|
|
NTT West
|
|
|
8,475
|
|
|
|
8,526
|
|
|
|
8,576
|
|
|
|
8,593
|
|
|
|
8,681
|
|
|
|
8,746
|
|
|
|
8,825
|
|
|
|
8,880
|
|
|
|
9,180
|
|
|
(incl.) Hikari Collaboration Model
|
|
|
1,322
|
|
|
|
2,348
|
|
|
|
3,478
|
|
|
|
4,691
|
|
|
|
5,912
|
|
|
|
6,917
|
|
|
|
7,854
|
|
|
|
8,744
|
|
|
|
11,894
|
|
|
NTT East
|
|
|
954
|
|
|
|
1,637
|
|
|
|
2,350
|
|
|
|
3,077
|
|
|
|
3,781
|
|
|
|
4,337
|
|
|
|
4,846
|
|
|
|
5,328
|
|
|
|
7,028
|
|
|
NTT West
|
|
|
368
|
|
|
|
711
|
|
|
|
1,128
|
|
|
|
1,615
|
|
|
|
2,131
|
|
|
|
2,580
|
|
|
|
3,008
|
|
|
|
3,416
|
|
|
|
4,866
|
|
|
Hikari Denwa
(6)
|
|
|
17,243
|
|
|
|
17,293
|
|
|
|
17,335
|
|
|
|
17,374
|
|
|
|
17,451
|
|
|
|
17,545
|
|
|
|
17,655
|
|
|
|
17,759
|
|
|
|
17,988
|
|
|
NTT East
|
|
|
9,056
|
|
|
|
9,068
|
|
|
|
9,089
|
|
|
|
9,123
|
|
|
|
9,180
|
|
|
|
9,242
|
|
|
|
9,311
|
|
|
|
9,369
|
|
|
|
9,569
|
|
|
NTT West
|
|
|
8,187
|
|
|
|
8,225
|
|
|
|
8,246
|
|
|
|
8,252
|
|
|
|
8,271
|
|
|
|
8,302
|
|
|
|
8,344
|
|
|
|
8,390
|
|
|
|
8,419
|
|
|
Conventional Leased Circuit Services
|
|
|
239
|
|
|
|
237
|
|
|
|
235
|
|
|
|
232
|
|
|
|
231
|
|
|
|
229
|
|
|
|
227
|
|
|
|
225
|
|
|
|
218
|
|
|
NTT East
|
|
|
116
|
|
|
|
115
|
|
|
|
114
|
|
|
|
113
|
|
|
|
112
|
|
|
|
111
|
|
|
|
110
|
|
|
|
109
|
|
|
|
105
|
|
|
NTT West
|
|
|
123
|
|
|
|
122
|
|
|
|
121
|
|
|
|
120
|
|
|
|
118
|
|
|
|
118
|
|
|
|
117
|
|
|
|
116
|
|
|
|
113
|
|
|
High Speed Digital Services
|
|
|
121
|
|
|
|
119
|
|
|
|
118
|
|
|
|
115
|
|
|
|
114
|
|
|
|
112
|
|
|
|
110
|
|
|
|
108
|
|
|
|
100
|
|
|
NTT East
|
|
|
62
|
|
|
|
62
|
|
|
|
60
|
|
|
|
59
|
|
|
|
58
|
|
|
|
57
|
|
|
|
56
|
|
|
|
55
|
|
|
|
52
|
|
|
NTT West
|
|
|
58
|
|
|
|
58
|
|
|
|
57
|
|
|
|
56
|
|
|
|
56
|
|
|
|
55
|
|
|
|
54
|
|
|
|
53
|
|
|
|
48
|
|
|
NTT Group Major ISPs
(7)
|
|
|
11,650
|
|
|
|
11,609
|
|
|
|
11,514
|
|
|
|
11,411
|
|
|
|
11,360
|
|
|
|
11,328
|
|
|
|
11,303
|
|
|
|
11,231
|
|
|
|
11,031
|
|
|
(incl.) OCN
|
|
|
8,342
|
|
|
|
8,290
|
|
|
|
8,177
|
|
|
|
8,046
|
|
|
|
7,969
|
|
|
|
7,905
|
|
|
|
7,847
|
|
|
|
7,739
|
|
|
|
7,496
|
|
|
(incl.) Plala
|
|
|
2,968
|
|
|
|
2,974
|
|
|
|
2,986
|
|
|
|
3,005
|
|
|
|
3,024
|
|
|
|
3,047
|
|
|
|
3,075
|
|
|
|
3,106
|
|
|
|
3,130
|
|
|
Hikari TV
|
|
|
3,038
|
|
|
|
3,043
|
|
|
|
3,047
|
|
|
|
3,052
|
|
|
|
3,047
|
|
|
|
3,041
|
|
|
|
3,032
|
|
|
|
3,023
|
|
|
|
3,030
|
|
|
FLET’S TV Transmission Services
(6)
|
|
|
1,378
|
|
|
|
1,398
|
|
|
|
1,417
|
|
|
|
1,432
|
|
|
|
1,445
|
|
|
|
1,464
|
|
|
|
1,489
|
|
|
|
1,521
|
|
|
|
1,602
|
|
|
NTT East
|
|
|
887
|
|
|
|
894
|
|
|
|
903
|
|
|
|
910
|
|
|
|
917
|
|
|
|
926
|
|
|
|
939
|
|
|
|
951
|
|
|
|
981
|
|
|
NTT West
|
|
|
490
|
|
|
|
504
|
|
|
|
514
|
|
|
|
522
|
|
|
|
528
|
|
|
|
538
|
|
|
|
551
|
|
|
|
570
|
|
|
|
621
|
|
|
Mobile Telecommunications Services
(8)
|
|
|
67,532
|
|
|
|
68,494
|
|
|
|
69,602
|
|
|
|
70,964
|
|
|
|
71,614
|
|
|
|
72,943
|
|
|
|
73,588
|
|
|
|
74,880
|
|
|
|
77,100
|
|
|
(incl.) “Kake-hodai & Pake-aeru” billing plan
|
|
|
20,812
|
|
|
|
23,777
|
|
|
|
26,519
|
|
|
|
29,704
|
|
|
|
31,586
|
|
|
|
33,416
|
|
|
|
35,198
|
|
|
|
37,066
|
|
|
|
—
|
|
|
Telecommunications Services (LTE (Xi))
|
|
|
32,609
|
|
|
|
34,504
|
|
|
|
36,293
|
|
|
|
38,679
|
|
|
|
39,893
|
|
|
|
41,281
|
|
|
|
42,671
|
|
|
|
44,544
|
|
|
|
51,700
|
|
|
Telecommunications Services (FOMA (3G))
|
|
|
34,923
|
|
|
|
33,989
|
|
|
|
33,309
|
|
|
|
32,285
|
|
|
|
31,721
|
|
|
|
31,662
|
|
|
|
30,917
|
|
|
|
30,336
|
|
|
|
25,400
|
|
|
sp-mode
|
|
|
29,094
|
|
|
|
30,209
|
|
|
|
31,126
|
|
|
|
32,463
|
|
|
|
33,082
|
|
|
|
33,809
|
|
|
|
34,749
|
|
|
|
35,921
|
|
|
|
40,200
|
|
|
i-mode
|
|
|
21,512
|
|
|
|
20,581
|
|
|
|
19,862
|
|
|
|
18,770
|
|
|
|
18,136
|
|
|
|
17,416
|
|
|
|
16,503
|
|
|
|
15,493
|
|
|
|
11,300
|
|
|
|
|
|
|
|
|
Notes:
|
|
(1)
|
|
Number of Telephone Subscriber Lines is the total of individual lines and central station lines (Subscriber Telephone Light Plan is included).
|
|
|
|
(2)
|
|
“INS-Net”
includes
“INS-Net
64” and
“INS-Net
1500.” In terms of number of channels, transmission rate, and line use rate (base rate),
“INS-Net
1500” is in all cases roughly ten times
greater than
“INS-Net
64.” For this reason, one
“INS-Net
1500” subscription is calculated as ten
“INS-Net
64” subscriptions (including subscriptions to the
“INS-Net
64 Lite Plan”).
|
|
|
|
(3)
|
|
Number of “FLET’S Hikari (including Hikari Collaboration Model)” subscribers includes subscribers to “B FLET’S,” “FLET’S Hikari Next,”
“FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, subscribers to “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S
Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West and subscribers to the “Hikari Collaboration Model,” the wholesale provision
of services to service providers by NTT East and NTT West.
|
|
|
|
(4)
|
|
The comparative results for the year ended March 31, 2017 compared to the year ended March 31, 2016 for “FLET’S Hikari (including Hikari Collaboration
Model)” are as follows: the numbers of new subscribers for NTT East and NTT West were 1,646 thousand lines and 1,211 thousand lines, respectively, for a total of 2,857 thousand lines; the numbers of new subscribers (excluding
switchover lines) for the “Hikari Collaboration Model” for NTT East and NTT West were 1,132 thousand lines and 793 thousand lines, respectively, for a total of 1,925 thousand lines; and the numbers of switchover lines for
NTT East and NTT West were 1,557 thousand lines and 1,260 thousand lines, respectively, for a total of 2,817 thousand lines.
|
|
|
|
(5)
|
|
The comparative forecast for the year ending March 31, 2018 compared to the results for the year ended March 31, 2017 for “FLET’S Hikari (including Hikari
Collaboration Model)” are as follows: the numbers of new subscribers for NTT East and NTT West are expected to be 1,700 thousand lines and 1,200 thousand lines, respectively, for a total of 2,900 thousand lines; the numbers of
new subscribers (excluding switchover lines) for the “Hikari Collaboration Model” for NTT East and NTT West are expected to be 1,250 thousand lines and 850 thousand lines, respectively, for a total of 2,100 thousand lines;
and the numbers of switchover lines for NTT East and NTT West are expected to be 1,100 thousand lines and 1,000 thousand lines, respectively, for a total of 2,100 thousand lines.
|
|
|
|
(6)
|
|
Numbers of subscribers for “Hikari Denwa” and “FLET’S TV Transmission Services” include wholesale services provided to service providers by NTT East and NTT
West.
|
|
|
|
(7)
|
|
“NTT Group Major ISPs” includes “WAKWAK” and “InfoSphere,” in addition to “OCN” and “Plala.”
|
|
|
|
(8)
|
|
Number of Mobile Telecommunications Services (including “Telecommunications Services (LTE (Xi))” and “Telecommunications Services (FOMA (3G))”) includes
Communication Module Services.
|
– 7
–
4. Operating Data
Average Monthly Revenue per Unit (ARPU)
Average monthly revenue per unit, or
ARPU, is used to measure average monthly operating revenues attributable to each designated service on a per user basis. In the case of NTT Group’s fixed-line business, ARPU is calculated by dividing revenue items included in the operating
revenues of NTT Group’s regional communications business segment, that is, fixed-line (telephone subscriber lines and
INS-NET)
and FLET’S Hikari, by the number of active subscribers to the relevant
services.
In the case of NTT Group’s mobile communications business, ARPU is calculated by dividing revenue items
included in operating revenues from its mobile communications business segment, such as revenues from LTE (Xi) mobile phone services, FOMA (3G) mobile phone services and “docomo Hikari” services, that are incurred consistently each month,
by the number of active users to the relevant services. The calculation of these figures excludes revenues that are not representative of monthly average usage, such as telecommunications equipment sales, activation fees and universal service
charges.
NTT believes that its ARPU figures calculated in this way provide useful information regarding the monthly average
usage of its subscribers. The revenue items included in the numerators of NTT Group’s ARPU figures are based on its financial results comprising its U.S. GAAP results of operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Yen)
|
|
|
|
|
FY 2015
|
|
|
FY 2016
|
|
|
FY 2017 (E)
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
Year Ending
|
|
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
March 31
|
|
|
March 31
|
|
|
March 31
|
|
|
NTT East
(1)(2)(3)(4)(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Fixed Line ARPU (Telephone Subscriber Lines +
INS-NET
Subscriber
Lines)
|
|
|
2,660
|
|
|
|
2,660
|
|
|
|
2,660
|
|
|
|
2,630
|
|
|
|
2,650
|
|
|
|
2,620
|
|
|
|
2,620
|
|
|
|
2,620
|
|
|
|
2,590
|
|
|
|
2,610
|
|
|
|
2,570
|
|
|
FLET’S Hikari ARPU
(6)
|
|
|
5,590
|
|
|
|
5,550
|
|
|
|
5,510
|
|
|
|
5,380
|
|
|
|
5,510
|
|
|
|
5,340
|
|
|
|
5,280
|
|
|
|
5,230
|
|
|
|
5,170
|
|
|
|
5,250
|
|
|
|
5,050
|
|
|
Basic Monthly Charge
|
|
|
3,860
|
|
|
|
3,850
|
|
|
|
3,830
|
|
|
|
3,750
|
|
|
|
3,830
|
|
|
|
3,750
|
|
|
|
3,720
|
|
|
|
3,690
|
|
|
|
3,670
|
|
|
|
3,700
|
|
|
|
3,600
|
|
|
Optional Services
|
|
|
1,730
|
|
|
|
1,700
|
|
|
|
1,680
|
|
|
|
1,630
|
|
|
|
1,680
|
|
|
|
1,590
|
|
|
|
1,560
|
|
|
|
1,540
|
|
|
|
1,500
|
|
|
|
1,550
|
|
|
|
1,450
|
|
|
NTT West
(1)(2)(3)(4)(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate Fixed Line ARPU (Telephone Subscriber Lines +
INS-NET
Subscriber
Lines)
|
|
|
2,620
|
|
|
|
2,610
|
|
|
|
2,610
|
|
|
|
2,590
|
|
|
|
2,610
|
|
|
|
2,580
|
|
|
|
2,580
|
|
|
|
2,580
|
|
|
|
2,560
|
|
|
|
2,580
|
|
|
|
2,550
|
|
|
FLET’S Hikari ARPU
(6)
|
|
|
5,550
|
|
|
|
5,490
|
|
|
|
5,450
|
|
|
|
5,400
|
|
|
|
5,470
|
|
|
|
5,350
|
|
|
|
5,300
|
|
|
|
5,260
|
|
|
|
5,210
|
|
|
|
5,280
|
|
|
|
5,080
|
|
|
Basic Monthly Charge
|
|
|
3,770
|
|
|
|
3,730
|
|
|
|
3,700
|
|
|
|
3,670
|
|
|
|
3,720
|
|
|
|
3,640
|
|
|
|
3,620
|
|
|
|
3,590
|
|
|
|
3,570
|
|
|
|
3,610
|
|
|
|
3,490
|
|
|
Optional Services
|
|
|
1,780
|
|
|
|
1,760
|
|
|
|
1,750
|
|
|
|
1,730
|
|
|
|
1,750
|
|
|
|
1,710
|
|
|
|
1,680
|
|
|
|
1,670
|
|
|
|
1,640
|
|
|
|
1,670
|
|
|
|
1,590
|
|
|
NTT DOCOMO
(7)(8)(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate ARPU
|
|
|
4,010
|
|
|
|
4,190
|
|
|
|
4,230
|
|
|
|
4,260
|
|
|
|
4,170
|
|
|
|
4,330
|
|
|
|
4,420
|
|
|
|
4,450
|
|
|
|
4,550
|
|
|
|
4,430
|
|
|
|
4,700
|
|
|
Voice ARPU (LTE (Xi) + FOMA (3G))
|
|
|
1,120
|
|
|
|
1,240
|
|
|
|
1,240
|
|
|
|
1,230
|
|
|
|
1,210
|
|
|
|
1,240
|
|
|
|
1,250
|
|
|
|
1,280
|
|
|
|
1,220
|
|
|
|
1,250
|
|
|
|
1,350
|
|
|
Data ARPU
|
|
|
2,890
|
|
|
|
2,950
|
|
|
|
2,990
|
|
|
|
3,030
|
|
|
|
2,960
|
|
|
|
3,090
|
|
|
|
3,170
|
|
|
|
3,170
|
|
|
|
3,330
|
|
|
|
3,180
|
|
|
|
3,350
|
|
|
Packet ARPU (LTE (Xi) + FOMA (3G))
|
|
|
2,870
|
|
|
|
2,910
|
|
|
|
2,930
|
|
|
|
2,940
|
|
|
|
2,910
|
|
|
|
2,960
|
|
|
|
2,990
|
|
|
|
2,960
|
|
|
|
3,080
|
|
|
|
2,990
|
|
|
|
3,010
|
|
|
“docomo Hikari” ARPU
|
|
|
20
|
|
|
|
40
|
|
|
|
60
|
|
|
|
90
|
|
|
|
50
|
|
|
|
130
|
|
|
|
180
|
|
|
|
210
|
|
|
|
250
|
|
|
|
190
|
|
|
|
340
|
|
|
|
|
|
|
|
|
Notes:
|
|
(1)
|
|
We compute the following two categories of ARPU for business conducted by each of NTT East and NTT West.
|
|
|
|
|
|
• Aggregate Fixed Line ARPU (Telephone Subscriber Lines +
INS-NET
Subscriber Lines): Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and
INS-NET
Subscriber Lines, which are
included in operating revenues from Voice Transmission Services (excluding IP Services), and revenues from “FLET’S ADSL” and “FLET’S ISDN,” which are included in operating revenues from IP Services.
|
|
|
|
|
|
• FLET’S Hikari ARPU: Calculated based on revenues from “FLET’S Hikari” (including
“FLET’S Hikari” optional services), which are included in operating revenues from IP Services, revenues from monthly charges, call charges and connection device charges for “Hikari Denwa,” and revenues from “FLET’S
Hikari” optional services, which are included in Supplementary Business revenues.
|
|
|
|
|
|
- “FLET’S Hikari” includes “B FLET’S,” “FLET’S Hikari Next,”
“FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, and “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari
Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West. In addition, “FLET’S Hikari” also includes the “Hikari Collaboration
Model,” the wholesale provision of services to service providers by NTT East and NTT West.
|
|
|
|
|
|
- “FLET’S Hikari” Optional Services includes wholesale services provided to service providers
by NTT East and NTT West.
|
|
|
|
|
|
|
|
(2)
|
|
Revenues from interconnection charges are excluded from the calculation of Aggregate Fixed Line ARPU (Telephone Subscriber Lines +
INS-NET
Subscriber Lines) and FLET’S Hikari ARPU.
|
|
|
|
|
|
|
|
(3)
|
|
Numbers of active subscribers used in the ARPU calculation of NTT East and NTT West are as below.
|
|
|
|
|
|
- Quarterly Results: Sum of number of active subscribers* for each month in the relevant
quarter
|
|
|
|
|
|
- FY Results: Sum of number of active subscribers* for each month from April to March
|
|
|
|
|
|
- FY Forecast: Sum of the average expected active number of subscribers during the fiscal year ((number of
subscribers at March 31, 2017 + number of expected subscribers at March 31, 2018)/2)x12
|
|
|
|
|
|
*activesubscribers = (number of subscribers at end of previous month + number of subscribers at end of the current
month)/2
|
|
|
|
|
|
|
|
(4)
|
|
For purposes of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines +
INS-NET
Subscriber Lines), the number of subscribers is
determined based on the number of subscriptions for fixed-line services (Telephone Subscriber Lines +
INS-NET
Subscriber Lines).
|
|
|
|
|
|
|
|
(5)
|
|
In terms of number of channels, transmission rate, and line use rate (base rate),
INS-Net
1500 is in all cases roughly ten times greater than
INS-Net
64. For this reason, for the purpose of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines +
INS-NET
Subscriber Lines), one
INS-Net
1500 subscription is calculated as ten
INS-Net
64 subscriptions.
|
|
|
|
|
|
|
|
(6)
|
|
For purposes of calculating FLET’S Hikari ARPU, the number of subscribers is determined based on the number of FLET’S Hikari subscribers, which includes subscribers to
“B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, subscribers to “B
FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West, and the
“Hikari Collaboration Model,” the wholesale provision of services to service providers by NTT East and NTT West.
|
|
|
|
|
|
|
|
(7)
|
|
The following is the formula we use to compute ARPU for NTT DOCOMO.
|
|
|
|
|
|
• Aggregate ARPU = Voice ARPU + Packet ARPU + “docomo Hikari” ARPU
|
|
|
|
|
|
• Data ARPU= Packet ARPU + “docomo Hikari” ARPU
|
|
|
|
|
|
- Voice ARPU: Voice ARPU Related Revenues (basic monthly charges, voice communication charges) / No. of
active users
|
|
|
|
|
|
- Packet ARPU: Packet ARPU Related Revenues (basic monthly charges, packet communication charges) / No. of
active users
|
|
|
|
|
|
- “docomo Hikari” ARPU: “docomo Hikari” ARPU Related Revenues (basic monthly charges,
voice communication charges) / No. of active users
|
|
|
|
|
|
|
|
(8)
|
|
Numbers of active users used in the ARPU calculation of NTT DOCOMO are as below.
|
|
|
|
|
|
- Quarterly Results: Sum of number of active users* for each month in the relevant quarter
|
|
|
|
|
|
- FY Results/FY Forecast: Sum of number of active users*/expected number of active users* for each month from
April to March
|
|
|
|
|
|
*activeusers = (number of users at end of previous month + number of users at end of current month)/2
|
|
|
|
|
|
|
|
(9)
|
|
The number of “users” used to calculate ARPU is the total number of subscriptions, excluding the subscriptions listed below:
|
|
|
|
|
|
a. Subscriptions of communication modules services, “Phone Number Storage,” “Mail Address Storage,”
“docomo Business Transceiver” and wholesale telecommunications services and interconnecting telecommunications facilities that are provided to Mobile Virtual Network Operators (MVNOs); and
|
|
|
|
|
|
b. Data Plan subscriptions in the case where the customer contracting for such subscription in his/her name also has a
subscription for “Xi” or “FOMA” services in his/her name.
|
|
|
|
|
|
Note that revenues from communication module services, “Phone Number Storage,” “Mail Address Storage,” “docomo Business Transceiver” and wholesale
telecommunications services and interconnecting telecommunications facilities that are provided to Mobile Virtual Network Operators (MVNOs) are not included in ARPU calculations.
|
– 8
–
4. Operating Data
Number of Employees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Persons)
|
|
|
|
|
FY 2015
|
|
|
FY 2016
|
|
|
FY 2017 (E)
|
|
|
|
|
As of
June 30
|
|
|
As of
September 30
|
|
|
As of
December 31
|
|
|
As of
March 31
|
|
|
As of
June 30
|
|
|
As of
September 30
|
|
|
As of
December 31
|
|
|
As of
March 31
|
|
|
As of
March 31
|
|
|
NTT Consolidated
(1)
|
|
|
247,800
|
|
|
|
249,450
|
|
|
|
249,650
|
|
|
|
241,450
|
|
|
|
248,650
|
|
|
|
248,650
|
|
|
|
280,600
|
|
|
|
274,850
|
|
|
|
281,350
|
|
|
Regional communications business
|
|
|
72,550
|
|
|
|
72,500
|
|
|
|
72,500
|
|
|
|
66,200
|
|
|
|
67,400
|
|
|
|
67,300
|
|
|
|
73,700
|
|
|
|
68,250
|
|
|
|
67,150
|
|
|
Long distance and international communications business
|
|
|
43,450
|
|
|
|
44,450
|
|
|
|
44,200
|
|
|
|
43,750
|
|
|
|
45,150
|
|
|
|
44,450
|
|
|
|
44,050
|
|
|
|
43,850
|
|
|
|
45,850
|
|
|
Mobile communications business
|
|
|
27,050
|
|
|
|
26,500
|
|
|
|
26,700
|
|
|
|
26,150
|
|
|
|
27,500
|
|
|
|
27,450
|
|
|
|
27,400
|
|
|
|
26,750
|
|
|
|
28,050
|
|
|
Data communications business
|
|
|
78,650
|
|
|
|
80,150
|
|
|
|
80,600
|
|
|
|
80,550
|
|
|
|
83,200
|
|
|
|
84,000
|
|
|
|
109,950
|
|
|
|
111,650
|
|
|
|
115,950
|
|
|
Other business
|
|
|
26,100
|
|
|
|
25,850
|
|
|
|
25,650
|
|
|
|
24,800
|
|
|
|
25,400
|
|
|
|
25,450
|
|
|
|
25,500
|
|
|
|
24,350
|
|
|
|
24,350
|
|
|
Core Group Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NTT (Holding Company)
|
|
|
2,850
|
|
|
|
2,850
|
|
|
|
2,800
|
|
|
|
2,750
|
|
|
|
2,800
|
|
|
|
2,800
|
|
|
|
2,750
|
|
|
|
2,700
|
|
|
|
2,700
|
|
|
NTT East
|
|
|
5,400
|
|
|
|
5,150
|
|
|
|
5,150
|
|
|
|
4,800
|
|
|
|
5,200
|
|
|
|
4,950
|
|
|
|
4,950
|
|
|
|
4,850
|
|
|
|
4,800
|
|
|
NTT West
|
|
|
4,750
|
|
|
|
4,600
|
|
|
|
4,600
|
|
|
|
4,450
|
|
|
|
4,600
|
|
|
|
4,450
|
|
|
|
4,450
|
|
|
|
4,400
|
|
|
|
4,300
|
|
|
NTT Communications
|
|
|
6,600
|
|
|
|
6,550
|
|
|
|
6,550
|
|
|
|
6,450
|
|
|
|
6,550
|
|
|
|
6,450
|
|
|
|
6,450
|
|
|
|
6,350
|
|
|
|
6,300
|
|
|
NTT DOCOMO (Consolidated)
|
|
|
27,050
|
|
|
|
26,500
|
|
|
|
26,700
|
|
|
|
26,150
|
|
|
|
27,500
|
|
|
|
27,450
|
|
|
|
27,400
|
|
|
|
26,750
|
|
|
|
28,050
|
|
|
NTT DATA (Consolidated)
|
|
|
78,650
|
|
|
|
80,150
|
|
|
|
80,600
|
|
|
|
80,550
|
|
|
|
83,200
|
|
|
|
84,000
|
|
|
|
109,950
|
|
|
|
111,650
|
|
|
|
115,950
|
|
|
|
|
|
|
|
|
Note:
|
|
(1)
|
|
Starting from the nine-month period ended December 31, 2016, “Number of Employees” includes employees whose contracts were changed from fixed-term contracts to
open-ended contracts.
|
– 9
–