I would like to take this opportunity to thank all shareholders for your continued support.
I would like to present here a brief introduction to “NTTis . . . 2012 Summer Edition.”
I have taken office as President as the successor to former President Satoshi Miura. Although the competitive environment continues to intensify, in the rapidly changing and developing information and telecommunications market, NTT will strive to become a company that will always have customers’ trust, and I will do everything in my power to further develop the NTT Group.

Operating revenue and operating income continued to increase during the fiscal year ended March 31, 2012. Operating revenue increased for the second consecutive fiscal year and operating income increased for the third consecutive fiscal year.
This fiscal year (fiscal year ending March 31, 2013) is the last year of NTT's medium-term management strategy announced in May 2008. In order to maintain the increase in operating revenue and operating income, NTT Group will promote enhancement of overseas businesses and cloud businesses as its growth areas, and also expand the number of smartphone users by improving Xi (“crossy”)-compatible terminals and expanding its service areas. In addition, NTT Group will continue to work on sparking demand for “FLET'S Hikari” by offering “FLET'S Hikari Light,” a two-tier fixed rate service and “FLET'S Hikari+Wi-Fi” at homes. Despite the severe competitive environment, by dedicating even greater efforts to cost control, NTT Group is targeting an increase in operating income of 57.0 billion yen from the previous fiscal year to 1,280.0 billion yen.

Growth is expected during this fiscal year and onward in the following three focus areas, in which NTT Group is strengthening its efforts. NTT Group aims to increase revenues in these fields from approximately 680.0 billion yen in the fiscal year ended March 31, 2012 to approximately 860.0 billion yen during the fiscal year ending March 31, 2013, increasing revenues by nearly 30% in one year.

1. Application / Contents (For Consumers)

   In addition to “dmarket” and “dmenu,” services launched by NTT DOCOMO, “NOTTV” service launched by mmbi, a subsidiary of NTT DOCOMO, and “Hikari TV” service provided by NTT Plala, NTT DOCOMO will launch new services under “docomo cloud,” a new collective name for cloud services provided by NTT DOCOMO.

2. Big Data / M2M (For Corporate Customers)

   With respect to Big Data^*1, NTT will provide various solutions through high-speed processing of high volume and complex structure data.
   With respect to M2M^*2, NTT is working on solutions that enable the monitoring, through communications, of vending machines, water and gas meters, construction machinery and vehicles, and public infrastructure, such as bridges.

3. Data Centers / Cloud Businesses (For Corporate Customers)

   With one of the world's largest server rooms with a size of 360,000 ㎡, NTT's networks between data centers^*3 cover the entire world. Going forward, NTT Group plans to continue responding to the cloud migration and total ICT (Information and Communication Technology) outsourcing needs of global businesses.

With respect to shareholder returns, NTT decided to increase the annual dividend per share by 20 yen, to 160 yen for the fiscal year ending March 31, 2013. This increase will be implemented starting with the upcoming interim dividends.

Further, NTT Group will continue to work towards the increase in profits and improvements in capital efficiency, and is aiming for net earnings per share (EPS) growth of more than 60% in the medium term.

I would like to conclude this message by thanking our shareholders in advance for your further understanding and support.

June 2012

• *1. Big Data
  A collection of high volume and complex structure data, which are difficult to manage and process with traditional technology, including textual information posted on SNS and word-of-mouth websites, images, charts and voice.
  
• *2. M2M (Machine to Machine)
  A technology or mechanism designed for equipment to mutually and autonomously exchange information. By utilizing M2M for the collection, monitoring and control of data from remote locations, it facilitates a streamlined operation process, advancement of services and the creation of new services.
  
• *3.Data center
  A term used to refer to a facility specialized in the installation and operation of a variety of computer and data communication devices, such as servers.