Message from the CEO

Last updated : June 20, 2017

NTT Group aims to accelerate its self-transformation as a "Value Partner" in order to improve its corporate value. [Representative Member of the Board,President and Chief Executive Officer Hiroo Unoura 鵜浦博夫]

Business Results for FY2016*Net income reached new record levels due to NTT Group's successful efforts to further profit growth

  • *The Fiscal Year Ended March 31, 2017
(Fiscal year ended/ing March 31) [Operating Revenues] 2016/03 11.5Trillion yen, 2017/03 11.4Trillion yen, 2018/03E 11.8Trillion yen [Operating Income] 2016/03 1.35Trillion yen, 2017/03 1.54Trillion yen, 2018/03E 1.59Trillion yen [Net Income] 2016/03 0.74Trillion yen, 2017/03 0.80Trillion yen, 2018/03E 0.83Trillion yen [EPS*] 2016/03 350yen, 2017/03 391yen, 2018/03E 414yen *EPS is adjusted according to the two-for-one stock split effective on July 1, 2015. Trend in Consolidated Financial Results

NTT Group's consolidated operating revenues decreased by ¥150 billion to ¥11,391.0 billion (a decrease of 1.3% from the previous fiscal year), as a result of a foreign exchange loss of ¥220 billion due to the effects of the appreciation of the yen in foreign exchange rates.

Operating income increased considerably by ¥191.6 billion to ¥1,539.8 billion (an increase of 14.2% from the previous fiscal year) due to progress in streamlining expenses in the regional communications business segment, as well as income growth associated with an increase in revenues from the mobile communications business segment and the effect of NTT Group's change in the depreciation method for property, plant and equipment.

Net income increased ¥62.4 billion to ¥800.1 billion (an increase of 8.5% from the previous fiscal year), reaching new record levels. As a result, earnings per share (EPS) increased ¥41 from the previous fiscal year to approximately ¥391.

Forecast for FY2017**NTT Group aims to achieve record levels in all of operating revenues, operating income and net income.

  • **The Fiscal Year Ending March 31, 2018

The forecast for NTT Group's operating revenues for FY2017 is an increase of ¥359 billion to ¥11,750 billion (an increase of 3.2% year-over-year), due to an anticipated considerable increase in the amount of overseas sales as a result of NTT Group's expansion as well as an expected increase in revenues from the mobile communications business segment.

The forecast for operating income is an increase of ¥50.2 billion to ¥1,590 billion (an increase of 3.3% year-over-year), due to an expected growth in profits and efforts to improve cost effectiveness across each group company.

The forecast for net income is an increase of ¥29.9 billion to ¥830 billion (an increase of 3.7% year-over-year), due to an increase in operating income. Earnings per share is expected to increase ¥23 to ¥414.

{EPS Growth} Results (FY2016) : ¥390.94, Financial Targets (FY2017) : At least ¥400 {Streamlining Capital Investment (Domestic Network Business*) [compared to FY2014]} Results (FY2016) : ¥136.4 billion decrease, Financial Targets (FY2017) : At least ¥200.0 billion decrease {Cost Reductions** (in fixed-line/mobile access networks) [compared to FY2014]} Results (FY2016) : ¥654.0 billion decrease, Financial Targets (FY2017) : At least ¥800.0 billion decrease {Overseas Sales/Operating income***} Results (FY2016) : $16.9 billion / $0.8 billion, Financial Targets (FY2017) : $22.0 billion / $1.5 billion *Streamlining Capital Investment (Domestic Network Business) excludes capital investment for NTT Communications' data centers and certain other assets.  **Cost Reductions exclude the impact of the change in depreciation method. ***Operating Income excludes M&A-related temporary expenses, such as depreciation costs of intangible fixed assets
Progress toward Medium Term Financial Targets(FY2017)

We kindly ask for your continued understanding and support.

2017 June