Communicating with Shareholders, Investors, Suppliers and Other Stakeholders
Communication with shareholders and investors
Basic philosophy
NTT recognizes that it is critically important to serve the best
interests of its shareholders and other investors over the long
term. The group as a whole has been making a concerted effort
to enhance corporate value and appropriately award shareholders
part of that value. At the same time, we are striving to
improve the transparency of management through appropriate
disclosure and IR activities so that shareholders, investors, and
other stakeholders can make correct evaluations of our business
performance.
About NTT stock
NTT stock has, since privatization in 1985, gone through six
offerings of government-owned shares, and as of the end of
fiscal 2006, is in the hands of around 1.25 million shareholders.
We also instituted a repurchase of shares on September
6, 2005, at which time the government sold more of its remaining
stock, bringing its share down to only 33.7% and almost completely
eliminating supply pressure (overhang) from government
offerings. The chart below shows the breakdown of NTT
shareholders as of March 2006.
Dividends
NTT (Holding Company) dividends are determined according
to overall business trends and our financial situation, taking into
account the ability to maintain stable and continuous operations.
From fiscal 2006, NTT plans to increase the yearly dividend
per share from \6,000 to \8,000, going into effect from
the interim accounting period.
Disclosure and IR activities
NTT (Holding Company) has listed its shares on several stock
exchanges (Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, New
York, and London), and has issued domestic and foreign bonds
to procure funds. NTT considers it extremely important to establish
and maintain relationships of trust with its shareholders
and investors in both domestic and foreign capital markets, and
accordingly discloses information in a timely, appropriate and
impartial manner, fulfilling its accountability as a business corporation
and ensuring management transparency.
To help shareholders and investors to better understand its
management strategy, NTT also actively conducts IR activities,
and provides opportunities for direct communications between
shareholders and top management of the company by holding
various events in addition to general shareholders' meetings,
including IR roadshows, corporate strategy briefings, financial
results briefings, and presentations for investors in corporate
bonds.
NTT is committed to impartial disclosure to shareholders, investors,
and other stakeholders, and makes active use of its
IR website to meet its obligations in this respect. The site provides
presentation materials and videos of various briefings in
addition to earnings releases, financial results, and annual reports.
* Selected by Daiwa Investor Relations for a 2005 Internet IR Best Company Award
(right) Annual report and "NTT is..." introductory pamphlets for shareholders
Details: Investor Relations
Initiatives
Socially Responsible Investment (SRI)
NTT has been rated highly by SRI evaluation organizations. It is listed on international SRI indexes such as the Ethibel Sustainability Index Global (Belgium) and FTSE4Good Global Index (UK), and also in Japan on Morningstar Japan's SRI Index (as of September 1, 2006).
Communicating with suppliers
To continue to provide its customers with competitive and state-
of-the-art services at reasonable prices, the NTT Group
considers it essential to introduce cost-effective new technologies
and products on a timely basis. To that end, it has become
increasingly important for us to accurately identify customer
needs, establish good partnerships with suppliers, and
work closely with them to achieve the broadband and ubiquitous
network society.
We have accordingly formulated and published basic procurement
policies aimed at establishing open, trust-based partnerships
with our suppliers.
We also post procurement information on our website as it becomes
available to enhance the convenience of suppliers, and
have procurement contact points in North America and Europe
as well as in Japan for fielding inquiries and providing guidance
on procurement.
Details: NTT's website for procurement information (basic procurement policy)
Communicating with customers
The NTT Group showcases its vision for the future of communications
at various exhibitions and events. For example, we
presented a look at how lifestyles will change in an age of ubiquitous
broadband communications, and the role of the NTT
Group in realizing that vision, at the NTT Group Communications
EXPO held to commemorate the 20th year since NTT's
privatization in December 2005 at the Tokyo International Forum.
The event provided a glimpse into the future of communications
to about 10,000 visitors over the space of three days.
We also hold NTT R&D forums in the city of Tsukuba and other
locations to disseminate the fruits of our R&D for the benefit
of society and industry.
Furthermore, at EXPO 2005 AICHI JAPAN, NTT DoCoMo demonstrated new possibilities for mobile phones by holding
trials of handsets equipped with contactless IC chips. These
phones are now commercially available as "Osaifu-Keitai" wallet
phones.
(right) EXPO 2005 AICHI JAPAN NTT DoCoMo booth
Dialog with stakeholders
In an effort to enhance its CSR activities, the NTT Group held
a meeting with stakeholders on March 10, 2006 for which it invited
experts in a variety of fields from outside NTT for discussions
on public expectations for NTT Group CSR. The valuable
opinions and suggestions received from participants will go into
improving our future CSR activities.
| Comments from stakeholders | Actions prompted by these comments | |
|---|---|---|
 "NTT would be a truly great company if all of its 200,000 employees participated in social contribution activities." |
 |
We will spread word on the importance of CSR to employees, and expand Team NTT's social contribution activities. |
| "NTT is a corporate group that puts communications at the forefront of its activities, so I'd like to see it focus more on communicating." |
|
The NTT Group CSR Charter was established with "communication" as its key concept, and we will continue to promote activities in this area under the CSR Charter. |
Details: Full transcript of March 10, 2006 meeting with stakeholders
