IR Presentation July, 2016

IR Presentation July, 2016

1 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. * E in this material represents that the figure is a plan or projection for operation. ** FY in this material indicates the fiscal year ending March 31 of the succeeding year.

Towards the Next Stage 2.0 (Formulated in May 2015, Revised Financial Targets in May 2016)

Basic Concept of 2.0 Accelerate Self-Transformation towards a Value Partner and Embark on a Profit Growth Track Accelerate Profit Generation of Global Cloud Services Enhance Profitability of Network Services Develop new markets by further promoting B2B2X model Re-establish EPS Growth Goal (at least 400 yen*) and update other financial targets * Revised from at least 350 yen in May 2016 3

New Financial Targets (FY 2018/03) EPS Growth At least 350 yen At least 400 yen Overseas Sales/ Operating Income * 22B / 1.5B Revised in May 2016 No change Streamlining Capital Investment At least 200 billion yen (Domestic Network Business**) Cost Reductions *** in fixed-line/mobile access networks compared to FY2015/03 At least 600 billion yen At least 800 billion yen compared to FY2015/03 No change Revised in May 2016 * Operating Income excludes M&A-related temporary expenses, such as depreciation costs of intangible fixed assets ** Excludes NTT Com s data centers and certain other assets *** Does not reflect the impact of the change in depreciation method 4

EPS Growth +91.1% At least 400 yen Revised 183 yen 237 yen 350 yen Former Target of 2.0 At least 350 yen Profit Growth Share Buybacks FY 2012/03 FY 2015/03 FY 2016/03 FY 2018/03(Target) * EPS is adjusted according to the two-for-one stock split effective on July 1, 2015. 5

Overseas Sales/Operating Income Sales $22.0B Sales $15.0B Operating Income* $0.67B FY 2015/03 Sales $15.6B Operating Income* $0.69B FY 2016/03 Operating Income* $1.5B FY 2018/03(Target) * Operating Income excludes M&A-related temporary expenses, such as depreciation costs of intangible fixed assets. 6

Towards Creating Profit from Global Business Operations Accelerate Efforts through Group-wide Projects Deliver Steady Growth of Sales Strengthen Products/Services Strengthen consulting/industry-specific solutions Create solutions that integrate services provided by a variety of companies Strengthen Sales/Marketing Efforts Expand our global accounts Thorough Cost Optimization Optimize Services and Operations Optimize NTT Group efficiency (cloud, security and IT outsourcing services) Avoid duplication in new service investments Reduce Procurement Costs Collaborate within NTT Group re: procurement Strengthen Group Governance and Risk Management Standardize and Improve IT Infrastructure Facilitate transparency of information re: Group management Strengthen Financial/Operations Systems Set common accounting standards Bolster cash management Enhance collaboration within NTT Group s global subsidiaries 7

Streamlining Capital Investment Improve Capex to Sales 18.1 Target of 1.0: 15% 14.2 Optimize Domestic Network Businesses 1,910 billion yen (Consolidated Financials*) Capital Investment 1,700 billion yen 1,610 billion yen 1,400 billion yen (Domestic network Businesses* *) 1,300 billion yen Reduction of at least 200 billion yen 1,200 billion yen FY 2013/03 FY 2015/03 FY 2016/03 FY 2018/03(Target) * Excludes Real Estate assets. * * Excludes NTT Com s data centers and certain other assets. 8

Cost Reductions FY 2016/03 Cost Reductions* (in fixed-line/mobile networks) 414 billion yen FY 2018/03(Target) Former Target of 2.0 At least 600 billion yen (compared to FY 2015/03) Revised At least 800 billion yen * Does not reflect the impact of the change in depreciation method 9

Optimize Domestic Network Businesses Streamlining Capital Investment At least 200 billion yen (Domestic network business, compared to FY 2015/03) Improve efficiency of facility use Reduce procurement costs Improve and optimize IT systems Cost Reductions At least 800 billion yen* (in fixed-line/mobile networks, compared to FY 2015/03) Review and reduce costs in order to improve user services Establish simple, highly efficient business operations in line with changes in our business model and environments * Revised from at least 600 billion yen in May 2016, and does not reflect the impact of the change in depreciation method 10

For Sustainable Growth Make good use of 2020 and the Government s Vitalization of Local Economies initiative as opportunities to accelerate the migration to B2B2X Strengthen Collaboration Platform (security, lot, network virtualization, etc.) Promote partnerships with a wide range of business entities (transportation, tourism, energy, agriculture, etc.) through NTT Group s cross-company projects Develop closer partnerships with local governments in order to create regional services utilizing ICT E.g., Comprehensive Partnership Agreement with Fukuoka City Create services that will become the standards of the next generation Create high value-added services and establish new business models through collaboration with partners (by taking on the role of catalyst ) 11

(Reference) Re: Towards the Next Stage 1.0 (1) Establish the cornerstone of NTT s global business operations as a pillar of growth Expand into the global market as a new challenger Move into a new competitive stage through collaboration Begin new initiatives to work towards establishing a multifaceted competitive model based on innovation and collaboration as a partner that customers will continue to select Initial steps: New DOCOMO fees and Hikari Collaboration Model Launch new efforts to create high value-added services and business models, taking advantage of 2020 and Vitalization of Local Economies initiative 12

(Reference) Re: Towards the Next Stage 1.0 (2) Financial Targets (announced in November 2012) EPS Growth (vs. FY 2012/03) At least 60% Overseas Sales Percentage of Corporate Sales Represented by Overseas Sales Capex to Sales 15% Cost Reductions (in fixed-line/mobile access networks) (compared to FY 2012/03) Achieved (91.1%) $20 billion At least 50% Achieved (14.2%) (by FY 2016/03) (by FY 2017/03) (by FY 2017/03) (by FY 2016/03) At least 600 billion yen (by FY 2015/03) Achieved (reduced by 650 billion yen) 13

Financial Results for the FY 2016/03 and Financial Forecasts for the FY 2017/03

FY 2016/03 Highlights Operating Revenues increased for the sixth consecutive year, spurred by the continued growth of its overseas businesses Operating Income increased, spurred by improvements in capital expenditures in the Regional communications business and Mobile communications business Net Income reached record levels, spurred by the increase in operating revenue EPS was 350.34, a significant increase year-on-year due to Net Income reaching record levels (Billions of yen) Operating Revenues Operating Expenses Operating Income Change year-on-year FY2016/03 FY2015 [%] Change from the Revised Forecasts FY2015/03 FY2014 FY2016/03 FY2015 Forecasts 11,541.0 +445.7 +4.0% +141.0 11,095.3 11,400.0 10,192.8 +182.1 +1.8% +42.8 10,010.8 10,150.0 1,348.1 +263.6 +24.3% +98.1 1,084.6 1,250.0 Net Income* 737.7 +219.7 +42.4% +82.7 518.1 655.0 * EPS 350.34 +113.49 +47.9% +39.34 236.85 311.00 (yen) Net income represents net income attributable to NTT, excluding noncontrolling interests. 15

FY 2016/03 Contributing Factors by Segment Regional communications business: Operating Income increased and Operating Revenues decreased as a result of a reduction of marketing costs as well as improved capital investment efficiency. Long distance and international communications business: Operating Revenues increased due to the growth in overseas businesses and Operating Income decreased due to anticipatory investments in growing segments. Mobile communications business: Operating Revenues and Operating Income increased due to increases in revenues associated with mobile communication services and operations in the Smart Life business and the improvements of capital investment and cost efficiencies. Data communication business: Operating Income and Operating Revenues increased due to increased sales, as well as improvement of cost rate. Operating Revenues Operating Income (Billions of yen) 11,095.3 * +445.7 11,541.0 * 1,272.2 +22.2 1,294.5 1,511.0 +105.8 1,616.8 4,383.4 +143.7 4,527.1 1,084.6 67.5 86.4 635.8 * +263.6 +6.6 +26.4 +152.6 1,348.1 74.0 112.7 788.4 * Other business Data communications business Mobile Communications business Long distance and international communications business Regional communications business 1,998.6 +252.3 2,250.9 3,505.5 (97.7) 3,407.9 113.6 168.9 (16.9) +96.1 96.7 265.0 FY2015/03 FY2016/03 FY2015/03 FY2016/03 *Includes adjustments such as elimination 16

FY2017/03 Forecast Summary Operating Revenues are expected to reach 11,450 billion as the growth in overseas businesses is expected to be constricted due to the effect of the exchange rate Operating Income is expected to reach 1,430 billion as a result of the steady growth of mobile communication business Net Income is expected to reach 750 billion, due to an increase in Operating Income (Billions of yen) FY2016/03 FY2015 FY2017/03 FY2016 Forecasts Change year-on-year [%] Operating Revenues Operating Expenses Operating Income 11,541.0 11,450.0 (91.0) (0.8)% 10,192.8 10,020.0 (172.8) (1.7)% 1,348.1 1,430.0 +81.9 +6.1% Net Income 737.7 750.0 +12.3 +1.7% * Net income represents net income attributable to NTT, excluding noncontrolling interests. EPS 350.34 363.00 +12.66 +3.6% (yen) 17

FY 2017/03 Forecast Summary by Segment Regional communications business: Operating Revenues are expected to decrease and Operating Income is expected to increase, as a result of a reduction of marketing costs as well as improved capital investment efficiency. Long distance and international communications business: Although Operating Revenues are expected to decrease due to the effect of the exchange rate, Operating Income is expected to increase due to the steady growth of overseas business from NTT s data business and IT outsourcing business. Mobile communications business: Operating Revenues and Operating Income are both expected to increase due to increased revenues from mobile communication services, Smart Life business areas, DOCOMO Hikari and cost reductions. Data communications business: Operating Income and Operating Revenues are expected to increase due to increased sales and improvement of cost rate in domestic business. Operating Revenues Operating Income 11,541.0 * (91.0) 11,450.0 1,430.0 * * +81.9 65.0 1,294.5 +25.5 1,320.0 1,348.1 * (9.0) 120.0 74.0 +7.3 1,616.8 +13.2 1,630.0 112.7 4,527.1 +92.9 4,620.0 905.0 788.4 +116.6 2,250.9 (30.9) 2,220.0 (Billions of yen) Other business Data communications business Mobile Communications business Long distance and international communications business Regional communications business 3,407.9 (137.9) 3,270.0 96.7 +13.3 110.0 265.0 +25.0 290.0 FY2016/03 FY2017/03E FY2016/03 FY2017/03E *Includes adjustments such as elimination 18

Changes in Anticipation of the Adoption of IFRS NTT executed the following changes in anticipation of the planned adoption of IFRS (beginning from the fiscal year ending March 31, 2019) u Change in Depreciation Method In light of the globalization of its business operations and its consideration of adopting IFRS, NTT changed its method for calculating depreciation of property, plant, and equipment (*) from the declining-balance method to the straight-line method of depreciation *Excluding assets that already employ the straight-line method of depreciation. Effect of accounting change for the fiscal year ending March 31, 2017: 480 billion yen u Implement measures to remove facilities and to minimize future costs Effect of accounting change for the fiscal year ending March 31, 2017: 460 billion yen NTT is considering delisting from the New York Stock Exchange and deregistering from SEC when IFRS is expected to be adopted (around April 2018) 19

Appendix

Changes in Dividend yen Increased by 4.8 Times Dividend Dividends per share Fiscal year ended/ing March 31 * Dividend is adjusted according to the two-for-one stock split effective on July 1, 2015. 21

Record of Share Buybacks (Billions of yen) From Market/ Gov t From Gov t Over 3 Trillion Yen in Buybacks From Market/ Gov t From Gov t 539.4 From Market From Gov t From Market From Market / Gov t From Market From Gov t Share Buybacks 120.0 *1 366.5 86.2100.0 *2 94.4 200.0 406.5 381.7 *3 338.1 *4 267.4 150.0 93.6 Fiscal year ended/ing March 31 *1:Market 48.0 billion yen, Gov t 72.0 billion yen *2:Market 61.0 billion yen, Gov t 39.0 billion yen *4:Market 101.2 billion yen, Gov t 236.9 billion yen *3:Market 250.0 billion yen, Gov t 156.5 billion yen 22

Global Cloud Business Promotion System Provides full stack, full life-cycle service (Covers Infrastructure to Applications, Advisory to Management) Advisory Services Cloud Services Migration Services Operation Services Management Services Corporate Customers Applications Solutions Managed ICT Data Centers Networks Service Layers R&D 23

NTT s Capability in Global Business NTT Telecom (A) Cloud (A) IT Vendor (A) Data Center (incl. colocation) - - SIer (I) Network Integration Network - - - Apps (ERP) Cloud Implementation - - AMO - - Public Hosted Private Leader Attacker - - - - Security - - Legend Global capability Top Tier 2 nd Tier Specific capability Not competitive/local - Out of scope 24

Our Strengths in Global Cloud Services Network Scale Provides service in 196 countries/areas World-class in Global IP backbone traffic (Source: Renesys Corporation) Quality Lowest network latency between Japan / US / major countries in Asia Data Center Scale World-class in total floor space (Approx. 1.2 million ) (Source: TeleGeography) Quality High-quality lineup(tier sites) 25

Expansion of Cross-Selling (Aggregate Contract Value) Aggregate contract value of Cross- Selling reached approx. 1.6 billion USD North America Total IT solution Worldwide including emerging countries Expansion of Global Account Management 990 million USD Public 1,190 million USD Manufacturing (Motor vehicle) triggered by Cloud Service Insurance Finance Healthcare 1,625 million USD Cross-selling of existing services, mainly IT infrastructure 62 million USD 147 million USD 290 million USD 2011/03 2012/03 2013/03 26 2014/03 2015/03 2016/03

Cross Selling Track Record Improved brand awareness leads to more deals with global enterprises AMERICAS 2014/3.1Q 2014/3.3Q EMEA Japan 2014/3.3Q Texas Department of Transportation Cloud solution, Application, Maintenance ITO, Total security service 2014/3.4Q Healthcare Manufacturer Transition of ERP to Cloud service ITO 2014/3.4Q Heavy Industry Business platform construction ITO 2015/3. 4Q Dairy Industry Cloud Solution Data Center service 2016/3. 1Q Medical Devices Manufacturer Transition of Application to Cloud service Data Center service Consumer Products Manufacturer Global LAN/WAN construction ITO 2015/3.1Q HM Treasury Cloud, Business platform construction Network infrastructure construction 2015/3. 2Q Nonferrous Metal Global network service Network management service 2016/3.1Q Medical Institution ITO NW equipment procurement, implementation Data Center service 2016/3.4Q Manufacturer Cloud & DC management service Transition of Application to Cloud service ANA Implementation and operation of UCaaS Could communication service 2015/3.2Q Financial Institution Dater Center service DC equipment procurement, implementation 2014/3.2Q May Bank APAC Dater Center service DC equipment procurement, implementation 2016/3.4Q Financial Institution Application Management Outsourcing Business Process Outsourcing 27

Revenue by Region NTT Global Business Total AMERICAS EMEA APAC (USD) (FY2016/03) (EBITA/Rev 4.4%) 4.5B 29% 1.9B 37% 2.2B 34% 0.4B 10% 11.1B 3.2B 4.2B 3.7B 71% 63% 66% 90% ICT Market 1,610B Legend Application IT Infrastructure 940B (60%) 490B (30%) 180B (10%) 67% 33% 54% 46% 47% 53% *Source: Created by NTT based on McKinsey s data (excluding Telephone market) 28

Global ICT services market (enterprise customers) (USD B) 1,800 5 % Growth per annum $1,770B New Business 1,600 $1,460B BPO 1,400 Traditional apps 1,200 SI for traditional apps 1,000 800 Cloud SaaS 10% of market size Cloud SI IaaS/PaaS CAGR 23% 600 IT infrastructure 400 Network service 200 ITO/AMO Source: NTT s calculation based on inputs from McKinsey, etc. 0 2013 2014 2015 2016 2017 29

Smart Stadium powered by Digital Marketing Fan/ Supporter Spectators Local Community (such as local shopping districts) Sponsors Event Organizers Nack5 STADIUM OMIYA (Omiya Ardija Home Stadium) Game Day/Outside of the Game (Children s Lessons, Local Events, etc.) Information Services Information Infrastructure Fan Services Video Services e-commerce EC Services Customer Relationship Management CRM Infrastructure Virtual Reality VR Children s Lessons, Mileage Points, etc. 3D 3D, multi-angle, playerfollowing, etc. Customer referrals with local shopping districts, etc. Points, coupons, payments, etc. High-density Wi-Fi, Wi-Fi Multicast, etc. 30

The Smartification of World Sports The Open (U.K.) Tour de France (France) Indy 500 (U.S.) Overseas Japan Ball flight distance and trajectory; Tweet map (worldwide) Alpine Ski World Cup (Naeba) Official tournament app (athlete information, results, maps, etc.); video broadcasting Racer position, speed, and time behind; combination of data and video At Six Day London (a popular European track cycling event), monitoring of wheel speed and heart rate as well World Triathlon Series (Yokohama) Official triathlon app; Live video IP delivery (paratriathlon) Driving status and racers vital signs Position #1 Japan Walk (Tokyo) Universal design information (Web app) provision Images provided by J SPORTS 31

Tourism Transportation Trade ICT Digital Marketing Multilingual Support, Tourist Information, Navigation, Digital Coupons, Wi-Fi One Certification, Etc. Increase Tourists Satisfaction Vitalization of Local Communities and Economies CASE Fukuoka City to Whole Kyushu Area Proposed Excursion Route Based on Behavior Analysis Ability to see Wi-Fi Hotspots 100 yen tourism bus route Current suggested route Excursion route Heatmap of Places to Visit Tenjin Central Park ( ) Historic Fukuoka City Guest House (Café Annex)( ) Scenic Riverside Walkway National Highway OpenStreetMap contributors Canal City Photos: Fukuoka City OpenStreetMap contributors OpenStreetMap contributors 32

For Resolution of Social and Economic Issues Promote coordination of administrative services and social infrastructure with local governments as the hubs, and contribute to the resolution of social and economic issues of local regions (including local economic regions) Businesses Citizens Organizations Big Data Local Governments Digital Trust Open Promote Data Secondary and Tertiary Uses Industrial Development, Disaster Prevention and Mitigation, Smartification of Public Tourism Smartification of Infrastructure Infrastructure, and Others Energy and Traffic and Transport Environment Education and Childcare Support Culture and Sports Healthcare Disaster Prevention and Mitigation Agriculture, Forestry and Fisheries 33

Toward Efficient and Sustainable Operations Optimize Domestic Network Businesses Streamlining Capital Investment At least 200 billion yen by FY2018/03 (Domestic network business, compared to FY2015/03) Cost reductions At least 800 billion yen* by FY2018/03 (in fixed-line/mobile networks, compared to FY2015/03) * Revised from at least 600 billion yen in May 2016 New Technologies (SDN/NFV*, AI, etc.) Commoditization and integration of hardware Remote control Effective Usage of Assets/facilities Improve effective usage of network infrastructure Cross-utilization of services and functions Improvement of ROA through streamlining and reallocating facilities Shift to integrated platform and streamlining of IT systems Optimization of Specifications for Hardware and Software Improve efficiency of procurement and development through simplified specification Improve efficiency of installation and operation BPR Train engineers to handle various technologies onsite Optimize service quality level * SDN Software Defined Networking, a network in which functions and configurations can be defined and controlled using software. NFV Network Functions Virtualization, the virtualization of network functions using software. 34

NTT DOCOMO s New Billing Plan Basic Concept Shifting competition focus from switching users to customer retention Flat rate for declining voice usage, measured rate for increasing data usage Packet Sharing Flat rate for calls Discount for long-term users Beneficial for families and for one person Beneficial for 2 or more devices Flat rate for domestic calls Beneficial billing plans for long-term users Subscriptions Total new billing plan subs topped 30 million on April 12, 2016 Up-sell % of users choosing M Pack or larger data buckets grew to approx. 90% 1GB data top-up purchase rate 1GB data top-up purchase rate grew to approx. 30% % of users choosing M Pack or larger data buckets represents the proportion of users choosing Data M Pack, Data L Pack and Share Pack among the total number of users opting to subscribe to the data packs and share packs of the new billing plan. The number represents the actual performance for FY2016/3 4Q. 1GB data top-up purchase rate: Purchase frequency of 1GB data top-up Total number of packet packs. The number represents the actual performance for FY2016/3 4Q. 35

Further Enrichment of New Billing Plan Added options for low-usage customers Introduction of Share Pack 5 Expanded applicability of Kake-hodai Light Started Mar. 1, 2016 Choice between two courses (with/without cancellation fee after completion of 2-year contract) Addition of two new courses to choose from: Zutto DOCOMO Discount Course or Free Course Started Jun. 1, 2016 Additional benefits to long-term subscribers Steeper discounts offered under Zutto DOCOMO Discount scheme Start offering reward dpoint to users renewing subscription contract Started Jun. 1, 2016 36

Hikari Collaboration Model Supporting a variety of market players to create new value EAST WEST Flet s Hikari (FTTH) Wholesale of FTTH Service Provider* Mobile, MVNO, ISP, Players in other industries etc. Partner s own service FTTH service Providing service by single package Creation of Value Customers Improve customer s convenience Retail * Approx. 360 service providers are providing service (As of April 30, 2016) 37

docomo Hikari : Updates Subscriptions: Exceeded 2 millions (As of Jun. 22, 2016) Up-sell Over 30% of docomo Hikari subs have switched to larger data bucket plans New mobile sub acquisition Over 50% of docomo Hikari subs are new subscribers to our mobile service Promotion of family use Over 60% of docomo Hikari subs have opted to join Share Pack The up-sell rate and Share Pack selection rate represent the actual data for FY2016/3 4Q. The new mobile sub acquisition rate is calculated based on the actual number of subscriptions applied with Hikari Sumaho Wari (discount program applied to new subscriptions through February 29, 2016) for the months of January and February 2016. The cumulative no. of subscription applications represents the cumulative data from the launch of service through March 31, 2016. 38

Basic Monthly Charges Billing Table of docomo Hikari Pack (Jun. 2016~) Kake-hodai Plan (Voice) Data Plan Monthly Fee Kake-hodai Plan (Smartphone/Tablet) 2,700 Kake-hodai Plan (Feature Phone) 2,200 *2 Kake-hodai Light Plan 1,700 Data Plan (Smartphone/Tablet) 1,700 Data Plan(Router) 1,200 *1 Basic Monthly Charges are provided under the condition of fixed period subscription for two years. *2 Not acceptable for combination with Data S pack. Packet Pack Monthly Charges Others For single Subscriptions For Families Share Option *Per subscription Data Quota Monthly Fee Data S pack 2GB 3,500 Data M pack 5GB 5,000 Data L pack 8GB 6,700 Share pack 5 5GB 6,500 Share pack 10 10GB 9,500 Share pack 15 15GB 12,500 Share pack 20 20GB 16,000 Share pack 30 30GB 22,500 500 Zutto Docomo Discount *4 (Discount rate determined by usage period) U25 Ouen Discount (Discount for subscribers to age 25 and +1GB bonus packet will be added) ( 100 2,500) ( 500) *3 Apply for customers of 4 years continuous usage or more, Docomo established Free Course, Zutto Docomo Discount and cancellation fee are not applicable (Jun. 2016~) *1 docomo Hikari Pack Monthly Charges *3 Limited-time Discount: Discount period is up to 1 year after commencement of docomo Hikari service 39 docomo Hikari (FTTH) (Prices do not include tax ) Monthly Fee Mobile FTTH Discounts Hikari Data S pack 8,700 3,500 5,200 0 Hikari Data M pack 9,400 5,000 5,200 ( 800) Hikari Data L pack 10,900 6,700 5,200 ( 1,000) Hikari Share pack 5 10,900 6,500 5,200 ( 800) Hikari Share pack 10 13,500 9,500 5,200 ( 1,200) Hikari Share pack 15 15,900 12,500 5,200 ( 1,800) Hikari Share pack 20 18,700 16,000 5,200 ( 2,500) Hikari Share pack 30 24,500 22,500 5,200 ( 3,200) Limited-time Discount* 3 ( 500) Monthly Fee ( 5,200) for FTTH apply to detached house subscribers Listed prices for FTTH use ISP of Type A. +200 additional charge is needed to use ISP of Type B. ( 200) for Standalone Package (An additional contract with an ISP is required for access to the Internet)

Operating Income of Docomo s Smart Life Business & Other Businesses Recorded income exceeding guidance (Billions of yen) 120.0 Principal services, etc: 33.2 78.7 Guidance: 70 Fiscal year ended/ing March 31 Smart Life Business Content services Finance/payment services Group companies Other Businesses Enterprise solutions Support services for customers' peace of mind, etc. 40

The Current State of Fixed-Line Telephone Services and Going Forward Migration to IP Networks Continue providing currently used fixed-line telephone services* by gradually migrating from PSTN to IP networks *Analog telephone services and INS-Net (voice) provided via PSTN (Public Switched Telephone Network) Continue offering basic voice services (In addition to basic calls, will offer ISDN call mode, call waiting, caller ID display, public telephones, etc.) Enable customers to continue using their existing phones and other devices without need for additional on-premises installation Maintain basic monthly charges at current levels to the extent possible (continue using existing copper lines) Provide more reasonable call rates by taking advantage of non-distance sensitive rates of the IP network Announce the timing of migration to IP networks separately in the future, after discussions with other relevant business operators, in light of the fact that our tandem/signal transfer switches will approach their limits of useful life around 2025 41

The Current State of Fixed-Line Telephone Services and Going Forward Considerations to maintain fixed-line telephone services In order to maintain fixed-line telephone services while minimizing the burden on customers, after migration IP networks in principle will not be equipped with the PSTN-specific functions historically provided, indicated in the following pages. In addition to the above, we will revise the method of providing fixed-line telephone services to allow for efficiency to the extent possible. (Examples) Use of optical fiber and wireless in response to requests from local governments to lay utility cables underground, without having to reinstall copper lines Adjust the high level of call-quality standards (latency conditions, etc.) required of fixed-line telephones to the call-quality level of mobile phones 42

The Current State of Fixed-Line Telephone Services and Going Forward [Appendix] Migration of PSTN-Specific Functions to IP Networks Inter-connectivity functions Hub function (Interconnection through NTT East/NTT West PSTN) Direct interconnection between major carriers Complex inter-carrier access charge settlement (Time usage-based access charge settlement among multiple carriers) Simple inter-carrier access charge settlement Functions introduced when fixed-line telephone was the primary telecommunications service Carrier preselection function (MYLINE)/ relay carrier selection function One-way number portability from NTT East/NTT West to other carriers Rates for calls from public telephones to mobile phones set by each carrier Other PSTN-specific functions Hold-the-line feature of emergency calls such as 110 and 119 Not provided Bidirectional number portability between operators similar to mobile number portability Uniform rates for all carriers Simple call back, the same as making calls from a mobile or IP phone 43

The Current State of Fixed-Line Telephone Services and Going Forward [Appendix] Reference: Migration from PSTN to IP Networks PSTN Signal transfer switch Current system Other carriers PSTN interconnection Interconnection switch Tandem switch IP network Conversion device SIP server * Core router Migrate tandem/signal transfer switches to IP Continue use of copper lines Use local switches as copper line terminals Connect to other carriers through IP Post-migration IP interconnection Conversion device IP network SIP server * Other carriers Gateway router Core router Local switch Edge router Copper line terminal Edge router Copper lines Optical fiber Copper lines Optical fiber Fixed-line telephone (Analog telephone service, INS-Net) Hikari Denwa Fixed-line telephone (basic voice service) Hikari Denwa * A server that manages and controls telephone services using an IP network SIP: Session Initiation Protocol ) 44

Broadband Access Services in Japan 150M Mobile Mobile 154.4M subs Approx. SoftBank Mobile 30M Approx. FTTH 27.6M subs Fixed SoftBank market share Approx. 26 20M 100M KDDI KDDI market share Approx. 29 NTTEAST and NTT WEST 50M NTT DOCOMO Approx. 69.6M subs 10M Approx. 19.2M subs Approx. DSL 3.3M subs CATV 6.7M subs Approx. NTT market share Approx. 45 NTT market share Approx. 70 NTT EAST and NTT WEST Approx.1.1M subs Access speed 337.5Mbps Access speed 2Gbps 50Mbps 320Mbps 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. Source MIC data (As of the end of December 2015) 45

Mobile Broadband Business DOCOMO Smartphone Users (Million subs) 83% % of LTE-enabled smartphones 97% 32.91 25.29 2015/3 2016/3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 46

Aggregate ARPU of Mobile Broadband Business Data ARPU Voice ARPU Packet ARPU docomo Hikari ARPU Impact of discount programs * Yen 4,210 4,110 4,040 4,030 4,010 4,190 4,230 4,260 4,390 New MOU (minutes) 2015/3 1Q 2Q 3Q 4Q 2016/3 1Q 111 121 128 126 129 134 136 135 2Q 3Q 4Q 2017/3 Full-year Forecast 2014/3 Full-year Aggregate ARPU 4,370 Yen Voice ARPU 1,950 Yen, Packet ARPU 3,180 Yen, Impact of discount programs 760 Yen 2015/3 Full-year Aggregate ARPU 4,100 Yen Voice ARPU 1,850 Yen, Packet ARPU 3,190 Yen, Impact of discount programs 940 Yen 2016/3 Full-year Aggregate ARPU 4,170 Yen Voice ARPU 1,950 Yen, Packet ARPU 3,250 Yen, docomo Hikari ARPU 60 Yen, Impact of discount programs 1,090 Yen * Impact of discount programs: Impact of Monthly Support discount program and docomo Hikari Pack bundle discounts, etc. 47

Fixed Broadband Business FTTH Subscriptions FTTH Subscriptions (Sum of NTT East and NTT West (ten thousands subs) 1,506 1,656 2011/3 2012/3 2013/3 2014/3 2015/3 Fiscal year ended/ing March 31 1,730 1,805 1,872 27 1,845 1,926 469 1,457 2016/3 1,986 Hikari Collaboration Model 824 FLET S Hikari 1,162 2017/3E <Reference: Breakdown of FTTH Subscriptions> Total FTTH Service: Change from preceding Fiscal Year Hikari Collaboration Model FLET S Hikari 2017/3E +60 (1) Number of opened connections +155 (2) Number of cancellations 50 (3) Number of switchover lines +250 Net Increase((1)+(2)+(3)) +355 (1) Number of opened connections +105 (2) Number of cancellations 150 (3) Number of switchover lines 250 Net Increase((1)+(2)+(3)) (ten thousands) 295 FTTH Churn Rate (Sum of NTT EAST and NTT WEST Compared to the same period in the previous year: 0.13p * Sum of number of churn for each month of each quarter / Sum of number of active subscribers for each month of each quarter ** Active subscribers = (number of subscribers at end of previous month + number of subscribers at the end of the current month) / 2 48

Penetration of Video Services Million subscriptions Hikari TV FLET S TV 4.36 4.48 4.52 3.98 Multi-Device 3.46 2.87 Tuner (STB) TV TV with Built-in tuner New STB for Smart TV 2.01 2.00 2.45 2.82 3.01 3.05 3.06 Hikari TV Smartphones, tablet PCs Car Navigation PC/NotePC 1.41 Multi-Service Hikari TV IPTV service which distributes VOD, terrestrial digital broadcasting, BS digital broadcasting, and multi-channel broadcasting FLET S TV Service which distributes terrestrial digital broadcasting, BS digital broadcasting, and multi-channel broadcasting(optional), by Radio Frequency system video karaoke game TV music book application shopping 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 End of Year/month 2017/3E 49

NTT Group Overview Operating revenues (consolidated):11,541.0 billion yen Operating income (consolidated) : 1,348.1 billion yen No. of employees : 241,450 No. of subsidiary companies : 907 * Percentage figures show the percentage of voting rights (March 31, 2016) Regional communications business Long distance and international communications business Mobile communications business Data communications business Other group companies Other businesses real estate, finance, construction and power business Operating Revenue: 3,407.9 billion yen Operating Income: 265.0 billion yen 2,250.9 billion yen 96.7 billion yen 4,527.1 billion yen 788.4 billion yen 1,616.8 billion yen 112.7 billion yen 1,294.5 billion yen 74.0 billion yen No. of Employees: 66,200 43,750 26,150 80,550 24,800 No. of Subsidiaries: 52 383 125 258 89 * Fiscal year ended March 2016. Operating revenue and operating income of each segment include inter-segment transactions. 50

Trend in Consolidated Financial Results Operating Revenues Trillion yen Operating Income Trillion yen Net Income Trillion yen EPS* yen Fiscal year ended/ing March 31 * EPS is adjusted according to the two-for-one stock split effective on July 1, 2015. **Includes influence of 60 billion yen of non-operating revenues by The Otemachi 2-Chome Area Redevelopment Project. 51

Changes in Consolidated Operating Revenues Consolidated Operating Revenues billion yen Regional communications business Long distance and international communications business Mobile communications business Data communications business Other business 10,507.4 10,700.7 10,925.2 11,095.3 11,541.0 11,450.0 10,000 3,764.8 3,659.8 3,572.3 3,505.5 3,407.9 3,270.0 1,678.7 1,657.9 1,809.9 1,998.6 2,250.9 2,220.0 5,000 4,240.0 4,470.1 4,461.2 4,383.4 4,527.1 4,620.0 0 (Fiscal year ended/ing March 31) 1,251.8 1,303.5 1,343.9 1,511.0 1,616.8 1,630.0 1,089.0 1,251.9 1,328.5 1,272.2 1,294.5 1,320.0 2012/03 2013/03 2014/03 2015/03 2016/03 2017/03E * Business segment operating revenues include inter-segment transactions 52

Changes in Consolidated Operating Income Consolidated Operating Income billion yen 1,500 1,000 1,223.0 1,202.0 1,213.7 86.9 93.0 127.2 116.7 121.3 127.5 Regional communications business Long distance and international communications business Mobile communications business 1,084.6 168.9 113.6 1,348.1 265.0 96.7 Data communications business Other business 1,430.0 290.0 110.0 500 891.0 848.6 835.0 648.2 788.4 905.0 0 (Fiscal year ended/ing March 31) 71.5 85.8 67.9 86.4 112.7 120.0 56.9 53.3 56.1 67.5 74.0 65.0 2012/03 2013/03 2014/03 2015/03 2016/03 2017/03E * Business segment operating income include inter-segment transactions 53

Changes in CAPEX Billions of yen 2,000 1,946.6 1,970.0 1,892.8 Regional communications business Long distance and international communications business Mobile communications business 1,817.5 1,687.2 Data communications business Other business 1,720.0 811.8 785.9 722.8 666.2 622.1 589.0 1,000 152.3 147.5 168.4 198.1 227.6 239.0 726.8 753.7 703.1 661.8 595.2 585.0 0 (Fiscal year ended/ing March 31) 134.0 122.1 147.7 140.9 134.0 150.0 121.7 160.8 150.7 150.6 108.3 157.0 2012/03 2013/03 2014/03 2015/03 2016/03 2017/03E * CAPEX excluding sales and investments related to real estate and solar power generation operations are as follows; 2012/3: 1,906.5 billion yen, 2013/3: 1,907.5 billion yen, 2014/3: 1,795.7 billion yen, 2015/3: 1,702.9 billion yen, 2016/3: 1,605.2 billion yen 54

Changes in Interest-bearing Debt Interest-bearing Debt billion yen 6,000 54.2% 49.0% 49.3% 50.8% 47.1% 47.9% 60% 4,000 40% 2,000 4,274.0 4,036.0 4,200.0 4,406.7 4,163.3 4,300.0 20% 0 (Fiscal year ended/ing March 31) 2012/03 2013/03 2014/03 2015/03 2016/03 2017/03E * Debt Equity ratio = Interest-bearing debt / Shareholders equity x 100 0% 55

Changes in Number of Employees Consolidated No. of employees 200,000 224,250 227,150 85,900 81,300 Regional communications business Long distance and international communications business Mobile communications business 239,750 241,600 241,450 75,850 71,200 66,200 Data communications business Other business 245,950 62,300 38,050 42,250 43,750 47,000 100,000 31,150 33,450 23,300 23,900 24,850 25,700 26,150 27,050 58,650 61,350 75,000 76,650 80,550 84,950 0 End of Year/month 25,250 27,150 26,000 25,800 24,800 24,650 2012/03 2013/03 2014/03 2015/03 2016/03 2017/03E 56

Age Distribution of Employees at NTT East, NTT West and Outsourcing Companies (As of March 31, 2016 Number of Employees Age * Figures for East Outsourcing Companies include employees from the consolidated regional outsourcing companies (NTT EAST-MINAMIKANTO and others), NTT-ME and NTT EAST SERVICE, while figures for West Outsourcing Companies include NTT BUSINESS SOLUTIONS, NTT MARKETING ACT, NTT NEOMEIT, NTT FIELDTECHNO and NTT BUSINESS ASSOCIE WEST. Figures for those companies include the number of more than 60-year-old contracted employees. 57

Share Buybacks and Cancellation Buyback from market share holding ratio Treasury Stocks 199mil. shares Gov t Owned Shares 862mil. shares <33 >* 1,585mil. shares * Number of shares is adjusted according to the two-for-one stock split effective on July 1, 2015. * Mandatory (minimum) number of shares to be held by the Government under the NTT Act = total number of shares issued 6 0 million shares issued at the IPO in 2000) 1/3 (The number of shares issued after the initial listing are not to be included in the calculations. (NTT Act, supplementary provision 13)) 276mil. shares 97mil. shares Gov t Owned Shares 862mil. shares <33 >* 1,411mil. shares Excess Holdings 124mil. shares 58 Treasury Stocks Treasury Stocks Mar., 2012 Oct., 2013 Nov., 2013 Oct., 2015 Nov., 2015 Total number of shares issued (million shares) Buyback from Gov t and Market Treasury Stocks Cancellation 373 mil. shares 1,411mil. shares Gov t Owned Shares 862mil. shares <39 >* 177mil. shares Gov t Owned Shares 738mil. shares <33 >* 1,358mil. shares Buyback from Gov t Cancellation 177 mil. shares 1,358mil. shares Excess Holdings 59mil. shares Gov t Owned Shares 738mil. shares <36 >* Treasury Stocks 59mil. shares Market floating shares 1,358mil. shares Jun., 2016 Gov t Owned Shares 679mil. shares <33 >

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