Appendix. November, 2011

Transcription

1 Appendix November, 2011

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 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 es, 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. * E in this material represents that the figure is a plan or projection for operation. 1

3 Faster and Diversified Broadband Access Total number of fixed and mobile broadband access subscriptions exceeded the 170 million mark More than half of the fixed broadband subscriptions are FTTH subscribers Internet // Broadband Network ~50Mbps ~200Mbps ~160Mbps ~75Mbps ~54Mbps ~40Mbps DSL (7.7M) Customers FTTH (20.9M) CATV (5.7M) Mobile (127.9M) Public WiFi (10.2M) 30 million subscriptions 140 million subscriptions Fixed Mobile Broadband Access Broadband Access WiMAX (1.3M) Source: MIC and NTT: (as of the end of Jun. 2011) Mobile, WiMAX subs are TCA data (as of the end of Oct. 2011) Note: Access speeds shown are numbers used for commercial purposes, and are the maximum output speeds achievable within the framework of the respective best effort services. DSL:NTT East FLET S ADSL etc, FTTH:NTT East Hikari Next Family High Speed Type etc, CATV:J:COM etc, Mobile:NTT DOCOMO FOMA High Speed etc, WiFi:NTT East FLET S Spot etc, WiMAX: UQ Communications UQ WiMAX (started services from Jul Expanding area coverage to major cities in Japan) 2

4 Broadband Service Monthly Charges -Triple Play- ADSL FTTH CATV Service NTT FLET S ADSL (Max. 47Mbps) [NTT East + Plala + subscriber telephone] NTT FLET S Hikari (Max. 200Mbps) [Plala Hikari mate with FLET S + Hikari Denwa + Hikari TV] For Multi-Dwelling Units (VDSL) For Single-Dwelling Units J:COM (Max. 160Mbps) [J:COM Tokyo] Total Monthly Charge *1 (Breakdown of Total) Multi-Channel VOD High Speed Internet IP Telephony Basic Charge 5,890 yen + call charges 1,700 yen + call charges 7,600 yen + call charges [65 channels] *2 3,000 yen *3 950 yen *6 + call charges 9,700 yen + call charges [65 channels] *2 3,000 yen *3 4,190 yen *4 3,650 yen *5 6,200 yen 500 yen + call charges 9,048 yen + call charges [75 channels] *2 9,048 yen + call charges (Package price) (Reference)Each company s corporate website (as of November 11, 2011) Charges do not include consumption taxes. *1 Lowest monthly charge after applying bulk discount. *2 Option channel is excluded. J:COM includes BS digital broadcasts. *3 Charge for multi-channel services. Tuner rental charges are included. Hikari TV also provides VOD flat rate services. *4 Modem rental charges (modem + splitter) are included. *5 VDSL rental charges are included. *6 Hikari Denwa router rental charges are included. *7 In case of a discount plan ("Otoku-plan"). On the condition that the service is used for two consecutive years (or one year for apartment type) In other case, 10,790Yen/months + dialing charge (*) Number of Subscribers (September 30, 2011) NTT Group: 2.43million(Hikari TV + FLET S TV), J:COM: 3.01million(Cable TV) 3

5 Launch of FLET S Hikari LIGHT (NTT East) FLET S Hikari LIGHT has been newly launched (June, 2011), in order to further expand and promote the use of optical broadband services Number of subscribers (forecast for the end of March, 2012) : 0.7 million subscribers (Impact on net adds excluding those switching over from existing FLET S Hikari (FTTH) services etc.:0.3 million subscribers) Monthly charges 5,800 yen 5,200 yen FLET S Hikari NEXT -Family type- *Charges are before taxes. ISP charges are not included. 5,800 yen FLET S Hikari LIGHT 2,800 yen Metered charges 30yen /10MB Minimum charge 2,800 yen NTT WEST to start a similar plan from January MB 1GB 1.2GB Communication Volume/month 4

6 Overview of Optical Service Facilities (Split Branch Method) One subscriber per one fiber line Maximum of 8 subscribers per one fiber line Maximum of 32 subscribers per one fiber line NTT building 1 8 branches 2 4 branches 3 OSU NTT IP network Customer premises (NTT East or West) ONU Duct OSU Other providers IP networks Customer premises (other providers) Optical Splitter (outside NTT building) Optical Splitters Fiber optic cable (inside NTT building) OLT/OSU Other providers equipment Splitter (outside NTT building) Splitter (inside NTT building) OLT (Optical Line Terminal) OSU (Optical Subscriber Unit) 5

7 NTT Group Broadband Services Mobile Broadband LTE 3G Crossy WiFi Fixed Broadband FTTH FLET S Hikari NEXT 6

8 Schedule for PSTN (Core Network) Migration Services to be terminated in conjunction with the migration will be phased out sequentially after providing adequate notice to users and efforts to promote a shift to alternative services during the period from now until around Services to be terminated prior to the migration will be phased out by around 2020 after providing adequate notice to users and encouraging a shift to alternative services in conjunction with the timing of service termination. IP network interconnection will be implemented in stages upon coordination with other es circa 2015 circa 2020 circa 2025 Services Interconnection Broadband services Services to be terminated in conjunction with migration Services to be terminated prior to migration Notify users about services to be terminated Shift to alternative services Notify users about services to be terminated Shift to alternative services Promote the use of broadband services Phase out services Coordinate with other involved es Concerning IP network interconnectivity Implement IP network interconnection in stages Phase out services Migration from PSTN (core network) to IP network End of useful life of PSTN switchboards 7

9 Smartphones (Product Lineup) Plan to release a total of 16 smartphone models in FY2011/winter-spring lineup, including the 14 models unveiled on Oct. 18,2011 FY2011 Winter-Spring : 16 models ARROWS kiss F-03D / F-03D Girls REGZA Phone T-01D Q-pot. PHONE SH-04D AQUOS PHONE SH-01D AQUOS PHONE slider SH-02D LUMIX PHONE P-02D P-01D GALAXY SⅡ LTE SC-03D ARROWS X LTE F-05D OPTIMUS LTE L-01D MEDIAS LTE N-04D ARROWS μ F-04D MEDIAS PP N-01D GALAXY NEXUS SC-04D BlackBerry Bold 9900 Xperia PLAY SO-01D 8

10 Xi crossy Area Expansion Plans Area expansion Accelerate Xi area expansion toward the target of achieving nationwide population coverage of approx. 98% in 2015/3, and aim for early realization of a high-speed communication environment (max. throughput of 100Mbps) 2012/3E 25% 2013/3E 60% Major cities Prefectural capital-size cities Population coverage 2014/3E 80% Local cities 2015/3E 98% Bring forward/accelerate area deployment All municipalities Max. Throughput Xi-related CAPEX 75Mbps billion yen (2011/3~2013/3) 100Mbps * billion yen (2014/3~2016/3) (Year ended/ing March 31) 2012/3E 2013/3E 2014/3E 2015/3E 2016/3E * Nationwide support of 100Mbps planned to start in 2015/3 or thereafter. 9

11 Smartphone/Xi ( crossy ) Subscription Forecasts Aim to increase total smartphone subscriptions to 40 million and Xi subscriptions to 30 million by 2016/3, (Million subs) through the execution of various measures for expanded adoption Smartphone subscriptions* 1 Xi (LTE) subscriptions* 2 Smartphone 2016/3 target 40 million (Million subs) Xi (LTE) 2016/3 target 30 million (Year ended/ing March 31) 2011/3 2012/3E 2016/3E (Year ended/ing March 31) 2011/3 2012/3E 2016/3E *1 No. of smartphone subscriptions includes subscriptions to tablet devices. *2 No. of Xi subscriptions includes subscriptions to data communications devices, Wi-Fi and tablets. 10

12 Mobile Churn Rate 2012/3 (2Q) cellular churn rate maintained very low at 0.50% Cellular (Xi+FOMA+mova) churn rate 2008/3 Full-year churn rate: 0.80% 2009/3 Full-year churn rate: 0.50% 0% /3 Full-year churn rate: % /3 Full-year churn rate: % (%) SoftBank MAX Discount services (Aug. 07) Year ended/ing March Value Course (Nov. 07) Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2008/3 2009/3 Based on financial results materials, etc of each company / / KDDI (au) 0.50 docomo 2012/3

13 Changes in Consolidated Operating Revenue Consolidated Operating Revenue 10, , , , , ,540.0 (billion yen) Regional communications 10, ,308 4,210 4,065 3,964 4,027 Long distance and international communications Mobile communications 1,290 1,323 1,316 1,260 1,333 Data communications Other 5, ,788 4,712 4,448 4,284 4,224 1,014 1,060 1,127 1,133 1, Year ended/ing March 31 1,183 1,185 1,165 1,133 1, /3 2008/3 2009/3 2010/3 2011/3 2012/3E *Business segment operating revenues include intersegment transactions 12

14 Changes in Consolidated Operating Income Consolidated Operating Income 1,500 1, , , , , ,250.0 (billion yen) , Regional communications Long distance and international communications Mobile communications Data communications Other Year ended/ing 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3E March 31 *Business segment operating revenues include intersegment transactions 13

15 Financial Impact of the Great East Japan Earthquake NTT Group s consolidated loss due to effects from the earthquake was 20.0 billion yen and Capital Investment was 8.0 billion yen. The Revised Forecasts for loss and for Capital Investment remained at the same level as the Initial Forecast: 30.0 billion yen. (Billions of yen) 2012/3 Revised Forecasts 2012/3 2Q 2012/3 Initial Forecast NTT East Profit/loss Change from Initial Forecasts Capital Investment Change from Initial Forecasts Profit/loss Capital Investment Profit/loss Capital Investment 18.0 (2.0) NTT DOCOMO (5.0) * others NTT Consolidated * Includes the effects of the decrease in base rates of 3.0 billion yen and a decrease in special losses of 5.0 billion yen. 14

16 Share Buy back Cancellation 1 Buy back 1 Cancellation 2 Buy back 2 Treasury Stocks 251mil. shares <15.9%> (*1) Gov t Owned Shares 530mil. shares Cancellation -125 mil. shares 125mil. shares 125mil. shares 58mil. shares 58mil. shares Excess Minimum Gov t Holdings Excess for Gov t Owned Minimum 58mil. shares Owning <37%> Holdings Shares for Gov t 42mil. shares <36%> (*2) Owning 473mil. shares 431mil. shares <33%> <33%> 473mil. Shares <33%> Cancellation -125 mil. shares <>:share holding ratio 99mil. shares Gov t Owned Shares 431mil. shares <33%> Mar. 31, 2010 Nov. 15, 2010 Jul. 5, 2011 Nov. 15, 2011 Total number of shares issued (million shares) 1,574 1,449 1,323 By Mar. 31, 2012 *1 Shares subject to cancellation are own shares held on March 31, *2 Mandatory (minimum) number of shares to be held by the Government under the NTT Law = (total number of shares issued-30 million shares issued at the IPO in 2000) 1/3 (Note)The number of shares issued after the initial listing are not to be included in the calculations. (NTT Law, supplementary provision 13) 15

17 Changes in Number of Employees Consolidated no. of employees 250, , , , , , , , , ,000 50, , , ,236 98,697 13,923 14,176 12,740 13,177 21,591 22,100 21,831 22,297 22,135 22,592 31,238 34,543 91,566 29,330 22,954 49,991 86,200 32,350 23,350 57,350 Regional communications Long distance and international communications Mobile communications Data communications Other 0 End of year/month 25,477 25,283 25,068 25,269 25,502 25, /3 2008/3 2009/3 2010/3 2011/3 2012/3E 16

18 Age Distribution at Regional Operating Companies (As of March 31, 2011) Number of Employees at NTT East, NTT West and Outsourcing Companies 8,000 Diversity of Employment System Number of Employees 6,000 4, years old 2, * Figures for East Outsourcing Companies include the consolidated prefectural outsourcing companies (incl. NTT EAST-TOKYOMINAMI), NTT-ME and NTT EAST SOLUTIONS, while figures for West Outsourcing Companies include the consolidated regional outsourcing companies (incl. NTT WEST-KANSAI), NTT MARKETING ACT (outsourcing company in the management and marketing field), NTT NEOMEIT (outsourcing company in the facilities and equipment field). Figures for those companies include the number of employees who retired or will retire at the end of a fiscal year and who were rehired or will be rehired at the beginning of next fiscal year. 17 Age

19 Highlights by Segment (Finance and Operation Data) Operating revenues (consolidated):10,305.0 billion yen Operating income (consolidated): 1,214.9 billion yen No. of employees: 219,350 No. of subsidiary companies: 756 * Percentage figures show the percentage of voting rights (September. 30, 2011) 100%* 100% * 100% * 100% * 66.6% * 54.2% * NTT East NTT West NTT Communications Dimension Data NTT DOCOMO NTT DATA Other group companies Regional communications Long distance and international communications Mobile communications Data communications real estate, finance, construction and power Other Operating Revenue: Operating Income: No. of Employees: No. of Subsidiaries: 4,027.2 billion yen billion yen 92, ,332.7 billion yen 97.1 billion yen 29, ,224.3 billion yen billion yen Financial year ended March Operating revenue and operating income of each segment include intersegment transactions. 23, ,163.2 billion yen 77.0 billion yen 50, ,120.3 billion yen 44.9 billion yen 26,