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“Towards the Next Stage”

On November 8, 2012, NTT announced its financial results for the six months ended September 30, 2012 and also introduced “Towards the Next Stage,” a business plan describing NTT's initiatives going forward and medium-term financial targets.

The Next Stage

These days, both businesses and individuals engage in activities that are increasingly globalized and cloud-based. A variety of new technologies have served as “change enablers” behind these trends, which will lead to an even bigger change, as NTT heads towards the “Next Stage” of Inter-Service^*1.
Amid these changes, NTT Group will seek to pursue growth by self-transformation and aim to become a “Value Partner” that customers continue to select, by connecting a variety of services with other services and customers' needs to services.

• *1 Inter-Service…Higher value-added services created by the convergence among Internet-based services and the convergence between Internet-based services and real-world services (term created by NTT).
• *2Applications…Software designed to perform office functions such as word processing and spreadsheets, or to play music or operate games on a computer or a smartphone.
• *3OS (Operating System)…Basic software for a computer system
• *4 UI (User Interface)…A generic term referring to the operating methods and screen displays when a user uses a computer system.
• *5 UX (User Experience)…A generic term referring to the experience a user gains and the impression felt when using a product or service.
• *6Big Data…A collection of high volume and complex structure data that would be difficult to manage and process with traditional technology, including data posted on SNS and word-of-mouth websites and data collected through M2M.
• *7Internet of Things…The concept that everything is connected to the Internet and the Internet links people and things, or things to each other, and the generic term used to refer to the technology enabling the foregoing.
• *8HTML5…The 5th version of Web descriptive language HTML, distinguished by its ability to develop Web applications.
• *9Web applications…Software developed using web functions and technology for online usage.
• *10Natural language processing…A generic term for technology and software enabling computers to process Japanese, English and other languages used by humans.
• *11Secure dispersion…Technology for encrypting and managing data in a dispersed state, where the original data cannot be gathered even in case of a data leak.
• *12Secure computation…Technology that allows for data processing in a securely dispersed state, obtaining only the processing results while keeping the data secure from the processing party.
• *13Cloud forensics…Technology for visualizing and assuring safety and peace of mind when using cloud data.
• *14Edge computing…Technology that enables high-speed, heavy-load processing using cloud computing that enables users to use a wide range of services regardless of the handset type or capacity.

From a “Provider” to a “Value Partner”

• *1 B2B2C(Business to Business to Consumer)…A business to business model that supports Business to Consumer (B2C) transactions.
• *2Platform…A platform to develop and run various applications. Service can be provided faster and more simply through a shared platform.

Changes in Earnings Structure

NTT Group will work towards the “Next Stage” by making “Global Cloud Services” as the cornerstone of NTT's business operations and comprehensively strengthening network service competitiveness to strive to achieve the targets set forth on the next page.

• *1 Advisory: A problem-solving service that provides advice and suggestions to customers using expert knowledge and technology.
• *2SI(System Integration)…Construction and operation of systems.
• *3NI(Network Integration)…Construction and operation of networks.
• *4IaaS(Infrastructure as a Service)…A service format that enables users to use servers and other hardware as well as operating systems as online services without purchasing them whenever and as much as needed.
• *5PaaS(Platform as a Service)…A service format that enables users to use, in addition to IaaS, platforms as online services whenever and as much as needed.

Medium-term Financial Targets

Increasing Corporate Value

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