Last updated : May 22, 2012

Overview of Business Results by Business Segment (April 1, 2011 - March 31, 2012)

(Billions of yen)

	Fiscal Year Ended March 31, 2011 (April 1, 2010 - March 31, 2011)	Fiscal Year Ended March 31, 2012 (April 1, 2011 - March 31, 2012)	Change	Percent Change
Operating revenues	1,332.7	1,678.7	346.0	26.0%
Operating expenses	1,235.6	1,562.0	326.4	26.4%
Operating income	97.1	116.7	19.6	20.2%

NTT Communications Corporation (NTT Communications), NTT's main subsidiary in the long-distance and international communications business segment, aiming to become a partner considered by customers around the world as a truly leading global player with the "Global ICT Partner-Innovative. Reliable. Seamless-" slogan, developed the "Global Cloud Vision" in response to customers' requests for cloud migration and worked towards the "development of end-to-end, one-stop, global and seamless services to provide cloud to network, applications, and security services." The main initiatives in this segment are as follows.

[1] Number of Subscriptions for Major Services

• Hikari TV: 2.00 million subscriptions (an increase of 0.59 million subscriptions from the same period of the previous fiscal year)
• OCN: 8.44 million subscriptions (an increase of 0.20 million subscriptions from the same period of the previous fiscal year)
• Plala: 3.12 million subscriptions (an increase of 20,000 subscriptions from the same period of the previous fiscal year)

[2] Development of Services for Individual Customers

Main Services Launched in the Fiscal Year

Service	Description
050 plus	Service that enables 050 IP phones to be used on smartphones and tablet devices, by installing dedicated applications. Telephone numbers starting with 050 can be obtained, and phone calls between "050 plus" users and users of "OCN Dot Phone" or 050 IP phones of mobile providers are free of charge.
Hikari TV Dokodemo (NTT Plala Inc.)	Service that enables "Hikari TV" users to view videos on smartphones or tablet devices by installing a dedicated application.
Hikari TV Mobile (NTT Plala Inc.)	Dedicated service for mobile devices that enables viewing of videos on smartphones or tablet devices by installing a dedicated application.

[3] Development of Services for Corporate Customers

Main Services Launched in the Fiscal Year Under Review

Service		Description
BizCITY
	Biz Hosting E-Mail and Web	Hosting service that specializes in e-mail and Web server functions, with three types of plans depending on usage fees, server space and customizations.
	Biz Simple Disk	Hard disk service that specializes in storage and saving of large amounts of data, such as IT system backup data and video data. Data capacity of up to 3 petabytes, depending on the user's scale of use. (One petabyte equals one million gigabytes.)
Cloudn		New public cloud service to allow customers to flexibly and cost effeciently increase or decrease data capacity, equipped with a variety of APIs compatible with the industry leader Amazon Web Services LLC.
Arcstar Universal One		VPN service optimized for cloud use with high quality and high reliability features. Four types of plans available according to reliability and price. Service is provided in 159 countries and regions worldwide.
050 plus for Biz		Expanded service with convenient functions of 050 plus for corporate customers. The functions include usage of the 050 IP phone, a subscription for 050 IP phone with multiple IDs, comprehensive billing of fees, and online billing statements for calls.
Arcstar Unified Communications Service		Integrated voice services for corporate customers developing businesses overseas. Offers three types of plans: services for internal extension communications service between their offices in Japan and overseas; external line services from their overseas offices; and cloud based services equipped with the messages and conference call functions.

[4] Development of Global Business

Main Activities during the Fiscal Year Under Review

• Network Expansion
  • - Efforts were made to increase IP backbone capacity in order to provide speedy and stable distribution of Internet data around the world. NTT increased the connection speed of the IP backbone between Japan and the U.S., where the highest volume of data in the world is exchanged, to 600Gbps.
• Business Site Development
  • - NTT Com Asia Ltd. opened a branch in Macau Special Administrative Region.
  • - NTT Communications (Thailand) Co., Ltd. opened an office in Vientiane, Lao PDR.
• Strengthening of Service Provision Systems
  • - NTT Communications acquired Frontline Systems Australia Pty Ltd. which provides ICT services centered in Australia, such as IT infrastructure and sales, IT consulting, data centers and managed services.
  • - NTT Communications reached an agreement with Netmagic's shareholders for the acquisition of Netmagic Solutions Private Limited, which provides data center related services in India.

As a result of these developments, and despite a decline in fixed voice related revenues, consolidated operating revenues in the long-distance and international communications business segment for the fiscal year ended March 31, 2012 were 1,678.7 billion yen (an increase of 26.0% from the previous fiscal year) due to, among other things, an increase in system integration revenues resulting from the consolidation of Dimension Data Holdings plc for the entire fiscal year ended March 31, 2012. On the other hand, despite a decrease in operating expenses by improving operating efficiency, consolidated operating expenses for the fiscal year ended March 31, 2012 were 1,562.0 billion yen (an increase of 26.4% from the previous fiscal year) due in part to an increase in operating expenses resulting from the consolidation of Dimension Data Holdings plc. As a result, consolidated operating income was 116.7 billion yen (an increase of 20.2% from the previous fiscal year).

• Regional Communications Business Segment
• Long-distance and International Communications Business Segment
• Mobile Communications Business Segment
• Data Communications Business Segment
• Other Business Segments

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