Message from the CEO

Last updated : December 5, 2018

Accelerate Digital Transformation to Fulfil the New Medium-Term Management Strategy [Representative Member of the Board, President and Chief Executive Officer Jun Sawada]

NTT Group is working on a variety of issues in order to accomplish our self-transformation towards “Your Value Partner” and to achieve sustainable increases in corporate value by contributing to both Japanese and global society.

Results for the First Half of the Fiscal Year Ending March 31, 2019

In the first half of the fiscal year ending March 31, 2019, both operating revenues and operating income increased, primarily as a result of growth in the mobile communications business and data communications business. Both operating revenues and operating income set new records for second quarter results, and represent steady progress toward achieving the annual forecast.

Specifically, operating revenues for the first half of the current fiscal year increased by ¥102.0 billion (an increase of 1.8% over the same period of the previous fiscal year) to ¥5,793.2 billion, and operating income for the first half of the current fiscal year increased by ¥32.4 billion (an increase of 3.1% over the same period of the previous fiscal year) to ¥1,070.8 billion.

Revised Financial Results Forecast for the Fiscal Year Ending March 31, 2019

With respect to the financial results forecast for the fiscal year ending March 31, 2019, the forecast for operating revenues has been revised upward by ¥70.0 billion compared to the initial forecast to ¥11,900.0 billion, primarily as a result of an anticipated increase in revenues from NTT DOCOMO device sales. The forecast for operating income is ¥1,690.0 billion, the same as the initial forecast, due to measures to increase competitiveness and the implementation of initiatives to increase returns to customers in light of changes in the competitive environment at NTT DOCOMO during the fiscal year ending March 31, 2020, among other things.

New Medium-Term Management Strategy: “Your Value Partner 2025”

In November 2018, we announced our new medium-term management strategy. NTT Group, as “Your Value Partner,” will be working along all of its partners toward the resolution of social problems. We believe that the resolution of social issues will contribute to achieving a digitalized and smart society, and also eventually contribute to the sustainable development goals (SDGs) proposed by the United Nations. In order to achieve this vision, NTT Group will work on the four pillars of the medium-term management strategy: (1) support our customers’ digital transformations, (2) accelerate our own digital transformation, (3) leverage talent, technologies and assets, and (4) promote ESG management and enhance the returns of shareholders to improve corporate value.

We hope to receive the continued understanding and support.

2018 December