ＩＲ Ｐｒｅｓｅｎｔａｔｉｏｎ July, 2013

Transcription

1 IR Presentation July, 2013

2 Medium-term Financial Targets The Path to Profit Recovery and Growth Global Cloud Services as the cornerstone of NTT s business operations Comprehensively strengthen network service competitiveness Further Improvement of Facility Efficiency Establishment of Simple and Highly Efficient Business Operations Tailored to Future Market Changes Cash Control and its Effective Utilization Streamlining capital investment Increasing M&A with a focus on Cloud-related businesses Enhancing shareholder returns in the medium term By the fiscal year ending March 31, 2017: Proceeds from overseas sales: $20 billion Proportion of corporate sales represented by overseas sales: 50% or more By the fiscal year ending March 31, 2015: At least 400 billion yen in cost reductions in fixed-line/mobile access networks (compared with the fiscal year ended March 31, 2012) By the fiscal year ending March 31, 2016: Capex to Sales: 15% EPS growth of 60% or more by the fiscal year ending March 31, 2016 (compared with the fiscal year ended March 31, 2012) 1

3 Progress of the Medium-Term Strategy Towards the Next Stage Expansion of Global/Cloud services Overseas Sales Billion yen % Billion yen 12.0 Billion US dollars Billion US dollars 31.8% 1,200.0 Billion yen 13.0 Billion US dollars 36.9% Proportion of corporate sales represented by overseas sales Overseas Sales : USD20.0 billion by FY2016 Proportion of corporate sales represented by overseas sales : 50% or more by FY2016 FY2012 Overseas Sales : USD12.0 billion; billion yen Proportion of corporate sales represented by overseas sales : 32% FY2013E Overseas Sales : USD13.0 billion; 1,200.0 billion yen Proportion of corporate sales represented by overseas sales : 37% FY2011 FY2012 FY2013E Note 1) Figures for internal transactions with respect to overseas sales have been offset Note 2) Exchange rate used for FY2012: 1 dollar = yen; Exchange rate used for FY2013E: 1 dollar = 93 yen 2

4 Progress of the Medium-Term Strategy Towards the Next Stage Strengthening the Competitiveness of Network Services Access Network Cost Reductions (billion yen) FY2011 FY2012 FY2013E Access Network Cost Reduction : Decrease of over billion yen by FY2014 (125.0) billion yen decrease * in FY2012 (330.0) billion yen decrease * by FY2013 * Compared to FY2011 Capital Investment Amounts 1, ,970.0 (billion yen) 1,870.0 Capex to Sales :15% by FY2015 1,970.0 billion yen, 18.4% Capex to Sales ratio by FY % 18.4% Capex to Sales FY2011 FY % FY2013E 1,870.0 billion yen, 17.0% Capex to Sales ratio by FY2013 Capital Investments decrease a billion yen from FY % is the lowest level in our history. 3

5 Progress of the Medium-Term Strategy Towards the Next Stage Increased Return to Shareholders, Growth of EPS Repurchase amount of Treasury Stock (billion yen) billion yen during FY2012 Plan to substantially increase the amount to billion yen in FY2013 FY2011 FY2012 FY2013E Earnings Per Share (EPS) (yen/share) EPS:Growth of 60% or more by FY % * % * FY2012: 432 yen (18% increase*) FY2013: 503 yen (37% increase*) Growth expected from recovery of income and repurchase of treasury stock * compared against FY2011 FY2011 FY2012 FY2013E (FY2014 EPS is 471 (29% increase) when excluding the effect of non-operating income relating to the Otemachi 2-chome area redevelopment project) 4

6 Global / Cloud Services Global / Cloud Services as the Cornerstone of NTT s Business Operations Acceleration of Global Development Ability to develop services originated in North America (standardized and provided to developing countries) Over 10,000 global corporate customers One of the world s largest and high quality data center operators (largest in Japan and second largest in the world) The second largest global IP backbone in the world Enhancement of Cloud Services Positioned in the Leaders quadrants of Gartner s Magic Quadrant for Global Cloud Infrastructure as a Service and Asia/Pacific Network Service Providers Cloud migration support through R&D and M&A (NTT Centerstance) One of the world s largest security integrators A device-free, OS-free and location-free Wi-Fi platform Big Data analysis of SNS and other large unstructured data Gartner, Magic Quadrant for Asia/Pacific Network Service Providers by To Chee Eng et al. December 13, 2011 Gartner, Magic Quadrant for Cloud Infrastructure as a Service by Lydia Leong et al. October 18, 2012 Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 5

7 Direction of NTT Group Global Cloud Advisory Services Migration Services Operational Services Management Services Corporate Customers In June 2013, NTT entered an agreement with Solutionary, Inc., a managed security service and security consulting service company in North America, to acquire 100% of its shares. R&D 6 Applications Solutions Managed ICT Data Centers Networks

8 Establishment of NTT I 3 On April 1 st 2013, NTT established NTT Innovation Institute, Inc., a new R&D center in North America. The aim is to accelerate the development and provision of highest-grade information security and cloud computing technologies in the North America, where the competition for cloud-related service is most intense. NTT DATA EMEA NTT DATA, Inc. NTT DATA APAC A new R&D center in North America NTT Innovation Institute, Inc. (NTT I3) 7

9 From a Provider to a Value Partner The Value Partner that customers continue to select Linking a wide range of services, connecting users and services Supporting business model transformation of our corporate customers (B2B2C business model) Supporting the enriched lifestyles of our individual customers Pursuing growth by self-transformation Role of NTT Group Suitable for customers needs - Flexible combination of infrastructure, platforms and applications - Appropriate service-matching support on behalf of customers Simple and convenient - Simple and user-friendly interface & user experience - Meet customer demands at reasonable rates Secure and safe - Protect customers from security threats with leading technology and operations 8

10 Next Value Partner for Transformation of Business models and Lifestyle by Total Solutions of Global, Secure, End-to-end, and Full-line ICT services 9

11 Disclaimer The forward-looking statements and projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein, as well as other risks included in NTT s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission. 10