Direction of Global Business Copyright 2013 Nippon Telegraph and Telephone Corporation

Transcription

2 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 Copyright 2013 Nippon Telegraph and Telephone Corporation

3 Global business *1 performance track record Consolidated sales of NTT Group companies excluding those in Japan USD 2B USD 2.6B USD 2.9B USD 4.8B USD 11.6B USD12B 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 * Month and year as of M&A completion Copyright 2013 Nippon Telegraph and Telephone Corporation

4 Revenue & number of employees by regions AMERICAS EMEA APAC Revenue $ 3B (FY2012) Apps Revenue (FY2012) $ 4B Apps Revenue (FY2012) $ 4B Apps IT infra. IT infra. IT infra. Employees 11,000 Employees 18,000 Employees 25, Copyright 2013 Nippon Telegraph and Telephone Corporation

5 Formation of NTT Group global business Advisory Services Migration Services Operational Services Management Services Applications Solutions Services Customers Managed ICT Data Centers Networks R&D Copyright 2013 Nippon Telegraph and Telephone Corporation

6 NTT Group at a Glance 80% of Fortune Global 100 choose NTT Group Network coverage in 160 countries & regions 227,000 employed worldwide $130 billion total revenue Direct presence in World #1 Telco in revenue 72 countries & regions No. 2 in Data Center No. 2 in Global IP Backbone Top 10 in Marine Cable All facts and figures accurate as of March Copyright 2013 Nippon Telegraph and Telephone Corporation

7 Why Dimension Data? 1. Global non-japanese client basis 2. Management capability, entrepreneurship, maintaining / leveraging enterprise culture of management 3. Complementary business with NTT Group (business synergy) 4. Profitability (favorable balance) 5. Shared vision, mutual confidence and trust Copyright 2013 Nippon Telegraph and Telephone Corporation

8 Development of new business model Development of new business model Build-up Collaboration model with start-up companies mainly in silicon valley Asia Japan USA Opsource (Cloud platform provider) NTT invested in Feb DimensionData made an acquisition in July 2011 EMEA EMEA Expanding other market Vigilent (DC air-conditioning System) NTT Facilities Entered into MOU on joint exploration in July 2010 NTT Facilities complete exclusive contract in Jan 2011 Centerstance (Business process analysis and cloud migration consultation) Salesforce.com platinum partner. Acquired by NTT in Sept Solutionary (Managed security service provider) Acquired Leader position in Gartner MQ(NA) in Acquired by NTT in Aug Expanding other market Copyright 2013 Nippon Telegraph and Telephone Corporation

9 Market evaluation for DiData Communication Outsourcing and Professional Services Cloud Infrastructure as a Service [attribution and disclaimers] Gartner, Magic Quadrant for Communications Outsourcing and Professional Services Eric Goodness, Christine Tenneson, 20 December Gartner Magic Quadrant for Cloud Infrastructure as a Service by Lydia Leong, et al., 18 October This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Nippon Telegraph and Telephone corporation. 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 Copyright 2013 Nippon Telegraph and Telephone Corporation

10 Market evaluation for Solutionary MSSPs, North America [attribution and disclaimers] Gartner Magic Quadrant for for MSSPs, North America by Kelly M. Kavanagh, 15 November This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Nippon Telegraph and Telephone corporation. 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 Copyright 2013 Nippon Telegraph and Telephone Corporation

12 ICT services market size (Worldwide) (USD B) 1400 CAGR 3.7% $1,300B Cloud Services * 1200 $1,120B Consulting + BPO + ADM IT Outsourcing Cloud Services Over $120B (CAGR 33%) NW integration + DC Product Support Network Services DC systems (servers, routers, etc) 400 * Cloud Services = IaaS, PaaS, SaaS, Advisory, Migration, Implementation, TaaS (Testing as a Services) * Those numbers excludes software, end-user devices and telephone service. Source: NTT Corp. based on materials by McKinsey and others Copyright 2013 Nippon Telegraph and Telephone Corporation

13 Global business is the Growth Driver of NTT Group Aggressively invest for the coming 5 years in order to develop sustainable business model NTT Group strength Apps Managed NW/ Mobility R&D service DC + Customer needs Industry trends Business model transformation Accelerated investment Organic $11B Footprint in emerging countries Enhancing HR M&A Partnering IP Dev $20B $2B FY2007 FY2011 FY2016 Target Copyright 2013 Nippon Telegraph and Telephone Corporation

14 NTT Group s global business development Existing IT Systems Advisory Services ICT Services Developed Countries Developing Countries ICT Management Applications Infrastructure Wi-Fi PF Global Network Mobile Network Business Analysis Cloud Security Mobility Big Data M2M On-premise Wi-Fi Off-premise Migration of business applications to cloud Cross-industrial platform Cloud Platform Global DC/ Network Standardized Cloud, etc. Security Mobile Network Total system visualization from applications to devices Security Management Appealing to Customers Suggest combined business analysis and ICT services Provide flexible and high-quality ICT services, including services of other companies Provide end-to-end and secure ICT management Support customers business transformations as an ICT strategic partner Copyright 2013 Nippon Telegraph and Telephone Corporation

15 Action plans for NTT global business growth $12B $20B BPO ADM IT Outsourcing Network integration DC Cloud / Security Enterprise Mobility $3B (Organic, M&A) $8B (Organic, M&A) NW Strengthen value proposition of NTT group 1 Promote cross-selling from IT infrastructure to applications, leveraging cloud as trigger 2 3 IP Development (NTT I 3 ) Strategic partnership Acquire new customers Strengthen service proposal for existing customer base 4 M&A to build new business model Customer Experience Center 5 6 Brand awareness (NTT Group, NTT Clouds) Copyright 2013 Nippon Telegraph and Telephone Corporation

16 Action plans for NTT global business growth $12B $20B BPO ADM IT Outsourcing Network integration DC Cloud / Security Enterprise Mobility $3B (Organic, M&A) $8B (Organic, M&A) NW Strengthen value proposition of NTT group 1 Promote cross-selling from IT infrastructure to applications, leveraging cloud as trigger 2 3 IP Development (NTT I 3 ) Strategic partnership Acquire new customers Strengthen service proposal for existing customer base 4 M&A to build new business model 5 Customer Experience Center 6 Brand awareness (NTT Group, NTT Clouds) Copyright 2013 Nippon Telegraph and Telephone Corporation

17 Cross-Selling Contract Value US$280M (4Q, 2010 ~ 4Q, 2012) +$280M in 3 months US$560M (4Q, 2010 ~ 1Q, 2013) (Acc Contract Value:US$M) (Q contract Value: US$M) Quarterly Contract Value Accumulated Contract Value Q Q Q Q Q Q Q Q Q Q Copyright 2013 Nippon Telegraph and Telephone Corporation

18 Promotion of cross-selling $280M for 2 years (2010/ /3) Cross selling between DiData and NTT Com in global IT infrastructure area. Business opportunities not covered previously. Moreover, +$280M for recent 3 more months, $560M in total (2010/ /6) Proactively propose Application + IT Infrastructure projects leveraging cloud as trigger, and won several new large customers. Texas Department of Transportation $***M AMO + ITO + Security (won in May 2013) Yum! Brands Inc. $***M Cloud + ERP + BPO (won in July 2013) Promote Global Account Management for existing large customers Copyright 2013 Nippon Telegraph and Telephone Corporation

19 Yum! Brands, Inc Background World's largest restaurant company with 500,000 employees across 39,000 restaurants in 130 countries. Brands includes KFC, Pizza Hut, and Taco Bell. Business challenge was high cost structure, slow adoption of innovation, and the need for better IT services. Needed a partner to support their global business by injecting innovation into their Kentucky operations center. Solution Migrated on-premises based operation center to Cloud. Leveraging NTT America s data center, NTT Data provides Private Cloud & BPO of full technology stack and full lifecycle. Optimized roadmap and architecture through NTT s proprietary cloud analysis tools powered by NTT I 3. Managed services delivered from NTT DATA s U.S. Service Delivery Center BPO Applications Infrastructure Advisory Migration Operation & Cloud Direct SM Migrate mainframe & management assessments servers to Cloud North America Service Delivery Center Oracle PeopleSoft ERP Private Cloud with DR 24/7 Service Desk Management and operations of NTT Data Cloud Centers Data Center Copyright 2013 Nippon Telegraph and Telephone Corporation

20 Texas Department of Transportation (TxDOT) Background Governmental agency responsible for supporting Texas s aviation/rail/public transportation infrastructure and maintaining 80,000 miles of roadway. Business challenge was transforming its IT organization to be interconnected, dynamic, fast, and reliable. Needed a partner who excelled at managing complex infrastructure and application environments with documented and repeatable best practices. Solution Triggered by cloud services, NTT group provides wide range of ICT solutions such as application modernization and end-user support, ensuring security. NTT DATA provides service integration and DR/BCP Application management Customer relations services Communications Application development/maintenance/ quality assurance using DynAMO methodology 24/7 Helpdesk support Device support for end user DR/BCP via Cloud Unified communication platform (migrate, operate and manage) LAN migration and management Dimension Data provides communication/security solution. 4 Engineering services IT Support for CAD, GIS, GPS, etc (research applications and related system) Solutionary provides managed security services with their ActiveGuard (under discussion). 5 IT security management IT security services including anti-threat (FW, anti-virus mgt) and intrusion incident handling Managed security services (under discussion) Copyright 2013 Nippon Telegraph and Telephone Corporation

21 Maybank Background 背景および顧客要望 HQ in Malaysia. Over 2,200 offices in 17 countries with over 46,000 employees serving more than 22 million customers worldwide. Maybank wanted a more efficient and better way to deliver improved end-user experience and wanted to do so by migrating to a new DC that could also facilitate the business expansion. In addition, the customer wanted to prepare backup DC. Needed a partner to support solving customer s issues such as scalability of the servers. Solution PJ total size:s$55m (US$44M) The Business Times(September 30, 2013) High quality DC NW in DC Relocation support for DC Building infrastructure inside DC utilizing Cloud This PJ is introduced by local media Smooth delivery through collaboration between NTT Com and DiData Copyright 2013 Nippon Telegraph and Telephone Corporation

23 Established NTT I 3 in Silicon Valley Accelerate R&D from North America by market-in approach, starting from cloud and security areas Large enterprises Developed market Mid/small enterprises Emerging market (1) Deploy developed IP (2) Deploy standardised service (1) Cloud (2)Security Communicate internally and externally Analyst Partner Customer Copyright 2013 Nippon Telegraph and Telephone Corporation

26 CXC (Customer Experience Center) initiatives Customer experience Center NTT Group OpCos Customer (1) Appeal entire NTT Group value proposition Joint Solutions (2) Build and strengthen relationships with customer CXOs (3) Identify customers' market needs Partners Stakeholders (analysts, etc.) (4) Build and strengthen relationships with stakeholders such as analysts Test bed Joint Development Copyright 2013 Nippon Telegraph and Telephone Corporation

27 NTT clouds Application Advisory Services Migration Services Operational Services Management Services Infrastructure dream force Barcelona) San Francisco) Copyright 2013 Nippon Telegraph and Telephone Corporation

28 Strategic options to build sustainable global businesses 1. Sharpen core competences in the area of cloud services 2. Further enhancement of strong IT infrastructure 3. Strengthen total capability to offer from infrastructure to SI services SI services IT infrastructure BPO ADM IT outsourcing Network integration Datacenter Network Strengthen total capability of service offering Further enhancement of strong IT infrastructure Copyright 2013 Nippon Telegraph and Telephone Corporation

29 Mid-term forecast of operating income Increase top line by organic growth and M&A Sales $20B Sales $12B Operating income Operating income FY2012A (2013.3) Operating income to sales Upfront investment for building new business models FY2016 (2017.3) Contribution to profit by new business models Further streamlining by expanding business scale FY2017~ Copyright 2013 Nippon Telegraph and Telephone Corporation