For Immediate Release
April 25, 1997
NTT Submits Revised Business Operating Plan for Approval
Nippon Telegraph and Telephone Corporation (NTT) announced today that it revised its business operating plan for the fiscal year ending March 31, 1998, to reflect the transfer of certain operations, and submitted the plan to the Minister of Posts and Telecommunications for approval.NTT is scheduled to transfer certain software-related operations and assets to NTT COMMUNICATIONWARE CORPORATION on September 1. In addition, the spin-off will defer a part of NTT's expenditure to the next fiscal year and onward, resulting in a temporal increase in operating profits, which had to be reflected in the revised plan.
Major changes are as per attachments:
Attachment 1
Construction Plan for Fiscal Year Ending March 31, 1998
| (billions of yen) | |||
| original | revised | ||
| 1. | Expansion and improvement of services | 1,600 | 1,572(1) |
| (1) Telephone | 1,322 | 1,294 | |
| (2) Telex/Telegraph | 5 | 5 | |
| (3) Leased circuits | 107 | 107 | |
| (4) Digital data exchange | 20 | 20 | |
| (5) Integrated services digital network | 126 | 126 | |
| (6) Other services | 20 | 20 | |
| 2. | R&D facilities | 139 | 129 |
| 3. | Other facilities | 201 | 189 |
| Total | 1,940 | 1,890 | |
| Note 1: | Approximately 800 billion yen will be invested to improve telecommunications facilities and among those approximately 460 billion yen will be invested in digital switches and digital transmission lines. Also, approximately 240 billion yen will be invested in an Optical Access Network. | ||
Attachment 2
Revenues and Expenses Plan for Fiscal Year Ending March 31, 1998
| (billions of yen) | |||
| Revenues | |||
| Operating revenues | 6,459 | ||
| (1) Telephone | 4,762 | ||
| (2) Telex/Telegraph | 101 | ||
| (3) Leased circuits | 962 | ||
| (4) Others | 634 | ||
| Non-operating revenues | 85 | ||
| Total revenues | 6,544 | ||
| Expenses | |||
| Operating expenses | 6,024 | ||
| (1) Operating costs | 4,214 | ||
| (2) Taxes and dues | 232 | ||
| (3) Depreciation | 1,578 | ||
| Non-operating expenses | 133 | ||
| Total expenses | 6,157 | ||
| Recurring profit | 387 | ||
Attachment 3
Plan of Sources and Applications of Funds for Fiscal Year Ending March 31, 1998
| (billions of yen) | |
| Sources: | |
| Operational: | |
| Operating revenues | 7,495 |
| Non-operating revenues | 90 |
| Subtotal | 7,585 |
| Financial: | |
| Long-term loans and bonds | 314 |
| Others | 0 |
| Subtotal | 314 |
| Estimated consumption tax | 330 |
| Brought forward from the previous fiscal year | 421 |
| Total | 8,650 |
| Applications: | ||
| Operational: | ||
| Operating expenses | 5,178 | |
| Non-operating expenses | 130 | |
| Subtotal | 5,308 | |
| Financial: | ||
| Capital investments for property, plant and equipment | 1,890 | |
| Other financial expenses | 513 | |
| Subtotal | 2,403 | |
| Closing account expenses | 216 | |
| Temporarily-paid consumption tax | 206 | |
| Carry forward to following year | 517 | |
| Total | 8,650 | |
