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Name | Symbol | Market | Type |
---|---|---|---|
Nippon Telegraph and Telephone Corporation (PK) | USOTC:NTTYY | OTCMarkets | Depository Receipt |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.232 | -1.00% | 22.918 | 22.91 | 22.93 | 23.78 | 22.27 | 22.27 | 148,782 | 17:33:02 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under the
Securities Exchange Act of 1934
For the month of August, 2017
Commission File Number 1-8910
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
(Translation of registrants name into English)
OTEMACHI FIRST SQUARE, EAST TOWER
5-1, OTEMACHI 1-CHOME
CHIYODA-KU, TOKYO 100-8116 JAPAN
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
ANNOUNCEMENT OF FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2017
On August 4, 2017, the registrant filed with the Tokyo Stock Exchange information as to the registrants financial condition and results of operations at and for the three months ended June 30, 2017. Attached hereto is a copy of the press release and supplementary data relating thereto, both dated August 4, 2017, pertaining to such financial condition and results of operations, as well as forecasts for the registrants operations for the fiscal year ending March 31, 2018. The consolidated financial information of the registrant and that of its subsidiary NTT DOCOMO, INC., included in the press release and the supplementary data relating thereto, were prepared on the basis of accounting principles generally accepted in the United States. The non-consolidated financial information of the registrant and that of each of the registrants three wholly-owned subsidiaries, Nippon Telegraph and Telephone East Corporation, Nippon Telegraph and Telephone West Corporation and NTT Communications Corporation, as well as the consolidated financial information of its subsidiary NTT DATA CORPORATION, included in the press release and the supplementary data relating thereto, were prepared on the basis of accounting principles generally accepted in Japan. The consolidated financial information of the registrants subsidiary Dimension Data Holdings plc, included in the supplementary data related to the press release, was prepared on the basis of International Financial Reporting Standards (IFRS). The financial information for the three months ended June 30, 2017 in the press release is unaudited.
The earnings projections of the registrant and its subsidiaries included in the press release contain forward-looking statements. The registrant desires to qualify for the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995, and consequently is hereby filing cautionary statements identifying important factors that could cause the registrants actual results to differ materially from those set forth in the attachment.
The registrants forward-looking statements are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of the registrant in light of information currently available to it regarding the registrant and its subsidiaries and affiliates, the economy and the telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of the registrant 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 any future results that may be derived from the forward-looking statements, as well as other risks included in the registrants most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.
No assurance can be given that the registrants actual results will not vary significantly from any expectation of future results that may be derived from the forward-looking statements included herein.
The information on any website referenced herein or in the attached material is not incorporated by reference herein or therein.
The attached material is a translation of the Japanese original. The Japanese original is authoritative.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
NIPPON TELEGRAPH AND TELEPHONE CORPORATION |
||||
By |
/s/ Takashi Ameshima |
|||
Name: | Takashi Ameshima | |||
Title: |
Vice President | |||
Investor Relations Office |
Date: August 4, 2017
Financial Results Release |
|
August 4, 2017
[U.S. GAAP |
] |
|
For the Three Months Ended June 30, 2017 |
Name of registrant: Nippon Telegraph and Telephone Corporation (NTT) / URL http://www.ntt.co.jp/ir/ |
Code No.: 9432 |
Stock exchanges on which the Companys shares are listed: Tokyo |
Representative: Hiroo Unoura, President and Chief Executive Officer |
Contact: Takashi Ameshima, Head of IR, Finance and Accounting Department / TEL +81-3-6838-5481 |
Scheduled filing date of quarterly securities report: August 7, 2017 |
Scheduled date of dividend payments: |
Supplemental material on quarterly results: Yes |
Presentation on quarterly results: Yes (for institutional investors and analysts) |
1. |
Consolidated Financial Results for the Three Months Ended June 30, 2017 (April 1, 2017 June 30, 2017) |
Amounts are rounded to the nearest million yen.
(1) Consolidated Results of Operations
(Millions of yen) | ||||||||||||||||||||||||||||||||
Operating Revenues | Operating Income |
Income before
Income Taxes |
Net Income
Attributable to NTT |
|||||||||||||||||||||||||||||
Three months ended June 30, 2017 |
2,809,782 | 3.4 | % | 491,597 | 0.9 | % | 496,233 | 11.2 | % | 271,472 | 11.4 | % | ||||||||||||||||||||
Three months ended June 30, 2016 |
2,716,739 | 0.4 | % | 487,395 | 35.9 | % | 446,107 | 21.4 | % | 243,628 | 26.1 | % |
Notes: | 1. | Comprehensive income (loss) attributable to NTT: | For the three months ended June 30, 2017: 278,685 million yen 81.0% | |||
For the three months ended June 30, 2016: 153,977 million yen (9.2%) | ||||||
2. | Percentages above represent changes from the corresponding previous period. |
Basic Earnings
per Share Attributable to NTT |
Diluted Earnings
per Share Attributable to NTT |
|||||||
Three months ended June 30, 2017 |
135.24 | (yen) | | (yen) | ||||
Three months ended June 30, 2016 |
116.73 | (yen) | | (yen) |
(2) Consolidated Financial Position
(Millions of yen, except per share amounts) | ||||||||||||||||||||
Total Assets | Total Equity |
NTT
Shareholders
Equity |
Equity Ratio
(Ratio of NTT Shareholders Equity to Total Assets) |
NTT
Shareholders Equity per Share |
||||||||||||||||
June 30, 2017 |
21,216,993 | 11,637,394 | 9,162,335 | 43.2 | % | 4,566.41 | (yen) | |||||||||||||
March 31, 2017 |
21,250,325 | 11,507,756 | 9,052,479 | 42.6 | % | 4,491.73 | (yen) |
2. Dividends
Annual Dividends | ||||||||||||||||||||
End of the
first quarter |
End of the
second quarter |
End of the
third quarter |
Year-end | Total | ||||||||||||||||
Year Ended March 31, 2017 |
| 60.00 | (yen) | | 60.00 | (yen) | 120.00 | (yen) | ||||||||||||
Year Ending March 31, 2018 |
| | | | | |||||||||||||||
Year Ending March 31, 2018 (Forecasts) |
| 75.00 | (yen) | | 75.00 | (yen) | 150.00 | (yen) |
Note: Change in dividend forecasts during the three months ended June 30, 2017: None
3. Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2018 (April 1, 2017 March 31, 2018)
(Millions of yen, except per share amount) | ||||||||||||||||||||||||||||||||||||
Operating Revenues | Operating Income |
Income before
Income Taxes |
Net Income
Attributable to NTT |
Basic Earnings per Share
Attributable to NTT |
||||||||||||||||||||||||||||||||
Year Ending March 31, 2018 |
11,750,000 | 3.2 | % | 1,590,000 | 3.3 | % | 1,580,000 | 3.4 | % | 830,000 | 3.7 | % | 414.00 | (yen) |
Notes: | 1. | Percentages above represent changes from the previous fiscal year. | ||
2. | Change in consolidated financial results forecasts for the fiscal year ending March 31, 2018 during the three months ended June 30, 2017: None |
1
*Notes:
* | This financial results release is not subject to the quarterly review. |
* | Explanation of earnings forecasts and other notes: |
Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently available to NTT and certain assumptions that we regard as reasonable and therefore actual results may differ materially from those contained in or suggested by any forward-looking statements. With regard to the assumptions and other related matters concerning forecasts for the fiscal year ending March 31, 2018, please refer to page 9.
On Friday, August 4, 2017, NTT will hold a presentation on its financial results for institutional investors and analysts. Shortly thereafter, NTT plans to post on its website explanatory details, along with the materials used at the presentation.
2
1. Summary Information (notes)
(1) | Change in significant consolidated subsidiaries during the three months ended June 30, 2017, that resulted in changes in the scope of consolidation: None |
(2) | Adoption of accounting which is simplified or exceptional for quarterly consolidated financial statements: None |
(3) | Change of accounting policy: Yes |
Balance sheet classification of deferred taxes
On November 20, 2015, the FASB issued ASU2015-17 Balance sheet classification of deferred taxes which requires that all deferred tax liabilities and assets be classified as noncurrent on the balance sheet.
Effective April 1, 2017, NTT Group adopted this ASU prospectively and prior periods were not retrospectively adjusted.
Change in Fiscal Year End of Certain Subsidiaries
As of April 1, 2017, certain of NTTs consolidated subsidiaries changed their fiscal year ends from December 31 or January 31 to March 31, thereby eliminating a three-month or two-month lag between their fiscal year ends and NTTs fiscal year end in NTTs quarterly consolidated financial statements. The elimination of this lag was applied as a change in accounting policy. NTT did not make any retrospective adjustments to its financial statements as these changes did not have a material impact on the consolidated financial statements for the three months ended June 30, 2016 or the year ended March 31, 2017. As a result of this change, NTTs retained earnings, accumulated other comprehensive income (loss) and noncontrolling interests have increased by ¥909 million, ¥484 million and ¥1,180 million, respectively, as of the beginning of the current fiscal year.
3
2. CONSOLIDATED FINANCIAL STATEMENTS
(1) Consolidated Balance Sheets
Millions of yen | ||||||||||||
March 31,
2017 |
June 30,
2017 |
Increase
(Decrease) |
||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
¥ | 925,213 | ¥ | 961,325 | ¥ | 36,112 | ||||||
Short-term investments |
63,844 | 87,035 | 23,191 | |||||||||
Notes and accounts receivable, trade |
2,699,708 | 2,391,458 | (308,250 | ) | ||||||||
Allowance for doubtful accounts |
(48,626 | ) | (50,305 | ) | (1,679 | ) | ||||||
Accounts receivable, other |
505,145 | 576,483 | 71,338 | |||||||||
Inventories |
365,379 | 404,368 | 38,989 | |||||||||
Prepaid expenses and other current assets |
573,170 | 687,395 | 114,225 | |||||||||
Deferred income taxes |
228,590 | | (228,590 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total current assets |
5,312,423 | 5,057,759 | (254,664 | ) | ||||||||
|
|
|
|
|
|
|||||||
Property, plant and equipment: |
||||||||||||
Telecommunications equipment |
11,046,115 | 11,014,159 | (31,956 | ) | ||||||||
Telecommunications service lines |
16,064,732 | 16,102,470 | 37,738 | |||||||||
Buildings and structures |
6,147,869 | 6,191,397 | 43,528 | |||||||||
Machinery, vessels and tools |
2,032,389 | 2,078,270 | 45,881 | |||||||||
Land |
1,292,685 | 1,292,943 | 258 | |||||||||
Construction in progress |
421,819 | 452,510 | 30,691 | |||||||||
|
|
|
|
|
|
|||||||
37,005,609 | 37,131,749 | 126,140 | ||||||||||
Accumulated depreciation |
(27,286,588 | ) | (27,406,862 | ) | (120,274 | ) | ||||||
|
|
|
|
|
|
|||||||
Net property, plant and equipment |
9,719,021 | 9,724,887 | 5,866 | |||||||||
|
|
|
|
|
|
|||||||
Investments and other assets: |
||||||||||||
Investments in affiliated companies |
484,596 | 487,890 | 3,294 | |||||||||
Marketable securities and other investments |
495,290 | 499,208 | 3,918 | |||||||||
Goodwill |
1,314,645 | 1,317,887 | 3,242 | |||||||||
Software |
1,209,485 | 1,205,638 | (3,847 | ) | ||||||||
Other intangible assets |
453,918 | 445,215 | (8,703 | ) | ||||||||
Other assets |
1,492,076 | 1,508,162 | 16,086 | |||||||||
Deferred income taxes |
768,871 | 970,347 | 201,476 | |||||||||
|
|
|
|
|
|
|||||||
Total investments and other assets |
6,218,881 | 6,434,347 | 215,466 | |||||||||
|
|
|
|
|
|
|||||||
Total assets |
¥ | 21,250,325 | ¥ | 21,216,993 | ¥ | (33,332 | ) | |||||
|
|
|
|
|
|
4
Millions of yen | ||||||||||||
March 31,
2017 |
June 30,
2017 |
Increase
(Decrease) |
||||||||||
LIABILITIES AND EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Short-term borrowings |
¥ | 227,207 | ¥ | 256,899 | ¥ | 29,692 | ||||||
Current portion of long-term debt |
681,904 | 783,976 | 102,072 | |||||||||
Accounts payable, trade |
1,612,996 | 1,157,395 | (455,601 | ) | ||||||||
Current portion of obligations under capital leases |
14,430 | 13,563 | (867 | ) | ||||||||
Accrued payroll |
443,308 | 390,344 | (52,964 | ) | ||||||||
Accrued taxes on income |
239,755 | 121,175 | (118,580 | ) | ||||||||
Accrued consumption tax |
75,083 | 98,445 | 23,362 | |||||||||
Advances received |
324,342 | 354,604 | 30,262 | |||||||||
Deposits received |
66,518 | 379,847 | 313,329 | |||||||||
Other |
445,850 | 404,292 | (41,558 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
4,131,393 | 3,960,540 | (170,853 | ) | ||||||||
|
|
|
|
|
|
|||||||
Long-term liabilities: |
||||||||||||
Long-term debt (excluding current portion) |
3,168,478 | 3,186,397 | 17,919 | |||||||||
Obligations under capital leases (excluding current portion) |
25,568 | 23,323 | (2,245 | ) | ||||||||
Liability for employees retirement benefits |
1,599,381 | 1,611,421 | 12,040 | |||||||||
Accrued liabilities for point programs |
103,047 | 89,425 | (13,622 | ) | ||||||||
Deferred income taxes |
166,751 | 152,404 | (14,347 | ) | ||||||||
Other |
497,132 | 502,281 | 5,149 | |||||||||
|
|
|
|
|
|
|||||||
Total long-term liabilities |
5,560,357 | 5,565,251 | 4,894 | |||||||||
|
|
|
|
|
|
|||||||
Redeemable noncontrolling interests |
50,819 | 53,808 | 2,989 | |||||||||
|
|
|
|
|
|
|||||||
Equity: |
||||||||||||
NTT shareholders equity |
||||||||||||
Common stock, no par value |
937,950 | 937,950 | | |||||||||
Additional paid-in capital |
2,862,035 | 2,856,019 | (6,016 | ) | ||||||||
Retained earnings |
5,626,155 | 5,777,614 | 151,459 | |||||||||
Accumulated other comprehensive income (loss) |
1,562 | 9,259 | 7,697 | |||||||||
Treasury stock, at cost |
(375,223 | ) | (418,507 | ) | (43,284 | ) | ||||||
|
|
|
|
|
|
|||||||
Total NTT shareholders equity |
9,052,479 | 9,162,335 | 109,856 | |||||||||
|
|
|
|
|
|
|||||||
Noncontrolling interests |
2,455,277 | 2,475,059 | 19,782 | |||||||||
|
|
|
|
|
|
|||||||
Total equity |
11,507,756 | 11,637,394 | 129,638 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities and equity |
¥ | 21,250,325 | ¥ | 21,216,993 | ¥ | (33,332 | ) | |||||
|
|
|
|
|
|
5
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
THREE-MONTH PERIOD ENDED JUNE 30
Consolidated Statements of Income
Millions of yen | ||||||||||||
2016 | 2017 |
Increase
(Decrease) |
||||||||||
Operating revenues: |
||||||||||||
Fixed voice related services |
¥ | 311,770 | ¥ | 290,200 | ¥ | (21,570 | ) | |||||
Mobile voice related services |
212,977 | 228,736 | 15,759 | |||||||||
IP / packet communications services |
948,049 | 949,165 | 1,116 | |||||||||
Sale of telecommunications equipment |
186,716 | 173,417 | (13,299 | ) | ||||||||
System integration |
688,310 | 782,506 | 94,196 | |||||||||
Other |
368,917 | 385,758 | 16,841 | |||||||||
|
|
|
|
|
|
|||||||
2,716,739 | 2,809,782 | 93,043 | ||||||||||
|
|
|
|
|
|
|||||||
Operating expenses: |
||||||||||||
Cost of services (exclusive of items shown separately below) |
547,254 | 554,873 | 7,619 | |||||||||
Cost of equipment sold (exclusive of items shown separately below) |
175,266 | 184,529 | 9,263 | |||||||||
Cost of system integration (exclusive of items shown separately below) |
501,733 | 561,091 | 59,358 | |||||||||
Depreciation and amortization |
359,198 | 332,278 | (26,920 | ) | ||||||||
Impairment losses |
379 | | (379 | ) | ||||||||
Selling, general and administrative expenses |
645,514 | 685,414 | 39,900 | |||||||||
|
|
|
|
|
|
|||||||
2,229,344 | 2,318,185 | 88,841 | ||||||||||
|
|
|
|
|
|
|||||||
Operating income |
487,395 | 491,597 | 4,202 | |||||||||
|
|
|
|
|
|
|||||||
Other income (expenses): |
||||||||||||
Interest and amortization of bond discounts and issue costs |
(10,006 | ) | (8,329 | ) | 1,677 | |||||||
Interest income |
4,332 | 4,577 | 245 | |||||||||
Other, net |
(35,614 | ) | 8,388 | 44,002 | ||||||||
|
|
|
|
|
|
|||||||
(41,288 | ) | 4,636 | 45,924 | |||||||||
|
|
|
|
|
|
|||||||
Income before income taxes and equity in earnings (losses) of affiliated companies |
446,107 | 496,233 | 50,126 | |||||||||
|
|
|
|
|
|
|||||||
Income tax expense (benefit): |
||||||||||||
Current |
129,311 | 156,776 | 27,465 | |||||||||
Deferred |
9,614 | (4,378 | ) | (13,992 | ) | |||||||
|
|
|
|
|
|
|||||||
138,925 | 152,398 | 13,473 | ||||||||||
|
|
|
|
|
|
|||||||
Income before equity in earnings (losses) of affiliated companies |
307,182 | 343,835 | 36,653 | |||||||||
|
|
|
|
|
|
|||||||
Equity in earnings (losses) of affiliated companies |
4,613 | 3,571 | (1,042 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net income |
311,795 | 347,406 | 35,611 | |||||||||
|
|
|
|
|
|
|||||||
Less Net income attributable to noncontrolling interests |
68,167 | 75,934 | 7,767 | |||||||||
|
|
|
|
|
|
|||||||
Net income attributable to NTT |
¥ | 243,628 | ¥ | 271,472 | ¥ | 27,844 | ||||||
|
|
|
|
|
|
|||||||
Per share of common stock: |
||||||||||||
Weighted average number of shares outstanding (Shares) |
2,087,053,427 | 2,007,361,528 | ||||||||||
Net income attributable to NTT (Yen) |
¥ | 116.73 | ¥ | 135.24 | ||||||||
|
|
|
|
6
Consolidated Statements of Comprehensive Income
Millions of yen | ||||||||||||
2016 | 2017 |
Increase
(Decrease) |
||||||||||
Net income |
¥ | 311,795 | ¥ | 347,406 | ¥ | 35,611 | ||||||
Other comprehensive income (loss), net of tax: |
||||||||||||
Unrealized gain (loss) on securities |
(14,702 | ) | 4,123 | 18,825 | ||||||||
Unrealized gain (loss) on derivative instruments |
3,378 | 2,665 | (713 | ) | ||||||||
Foreign currency translation adjustments |
(100,780 | ) | 1,782 | 102,562 | ||||||||
Pension liability adjustments |
2,576 | 2,093 | (483 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income (loss) |
(109,528 | ) | 10,663 | 120,191 | ||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income (loss) |
202,267 | 358,069 | 155,802 | |||||||||
|
|
|
|
|
|
|||||||
Less Comprehensive income attributable to noncontrolling interests |
48,290 | 79,384 | 31,094 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income (loss) attributable to NTT |
¥ | 153,977 | ¥ | 278,685 | ¥ | 124,708 | ||||||
|
|
|
|
|
|
7
(3) Going Concern Assumption
None
(4) NTT Shareholders Equity
1. Dividends
Cash dividends paid
Resolution |
The shareholders meeting held on June 27, 2017 | |
Class of shares |
Common stock | |
Source of dividends |
Retained earnings | |
Total cash dividends paid |
¥120,922 million | |
Cash dividends per share |
¥60 | |
Record date |
March 31, 2017 | |
Date of payment |
June 28, 2017 |
2. Treasury stock
On December 12, 2016, the Board of Directors resolved that NTT may acquire up to 33 million shares of its outstanding common stock for an amount in total not exceeding ¥150 billion from December 13, 2016 through June 30, 2017. Based on this resolution, NTT repurchased 21,693,800 shares of its common stock for a total purchase price of ¥106,763 million between December 2016 and March 2017. NTT also repurchased 8,893,400 shares of its common stock for a total purchase price of ¥43,235 million in April 2017 and concluded the repurchase of its common stock authorized by Board of Directors resolution.
(5) Subsequent Events
None
8
[Note]
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 NTTs most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.
9
August 4, 2017
Financial Resultsfor the Three Months Ended June 30, 2017
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 NTTs 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.
*** 1Q in this material represents the
3-month
period beginning on April 1 and ending on June 30.
Financial Results for the Three Months Ended June 30, 2017 1
Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Table of Contents
Highlights Topics
Contributing Factors by Segment Tokyo 2020 Medal
Project:
Towards an Innovative Future for All
Appendix
Financial Results for the Three Months Ended June 30, 2017 2 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Both Operating
Revenues and Operating Income increased.
Financial results are steadily progressing in line with the annual plan.
Status of Consolidated Financial Results
Operating
Revenues ¥2,809.8 billion (increase of ¥93.0 billion [3.4%]
year-on-year)
Operating Income ¥491.6 billion (increase of ¥4.2 billion [0.9%]
year-on-year)
Net Income *1 ¥271.5 billion (increase of ¥27.8 billion [11.4%]
year-on-year)
Overseas Sales $4.6 billion (increase of $0.8 billion [21.2%]
year-on-year)
Overseas Operating Income *2 $0.19 billion (increase of $0.06 billion [43.1%]
year-on-year)
*1 Net income represents net income attributable to NTT, excluding
noncontrolling interests.
*2 Operating Income excludes
M&A-related
temporary expenses, such as depreciation costs of
intangible fixed assets.
Financial Results for the Three Months Ended June 30, 2017 3 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Topics
Increased
Profitability of Network Services
Expansion of NTTs User Base
Mobile
Subscriptions: 75.11 million mobile subscriptions (net increase of 0.23 million)
(Included in the above) Kake-hodai & Pake-aeru: 38.34 million
subscriptions (net increase of 1.28 million)
FTTH Subscriptions: 20.29 million subscribers (net increase of 0.24 million)
(Included in the above) Hikari Collaboration: 9.57 million (net increase of 0.83 million)
Growing number of
Wi-Fi
area owners*1: 612 (net increase of 55)
Cost reductions (fixed/mobile access lines) : Reduction of ¥682.0 billion (total*2) (reduction of ¥28.0 billion for this quarter)
Promotion of the B2B2X Model
Each NTT Group company has been expanding its joint demonstration
experiments and collaborations with other companies through the use of AI, Big Data and IoT in various fields, such as sports and agriculture.
*1 Total number of
large-scale corporate or local government customers. Excludes small-scale restaurants, etc.
*2 Compared to FY2014.
Financial Results for the Three Months Ended June 30, 2017 4 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Financial Results for the Three Months Ended June 30, 2017 Copyright (c) 2017 Nippon Telegraph and
Telephone Corporation
2,716.7 Operating Revenues 10.7 28.0 2,809.8 88.8 19.4 *
787.8
529.7
FY2017
4-6
1,136.7
462.3
Increase in Operating Revenues and Operating Income in the Long Distance and
International Communications business andthe Data Communications business segment. Contributing Factors by Segment 15.1 Operating Income 487.4 491.6 * 133.6 34.8
FY20174-6
277.6
25.3
20.7 5.8 3.4 7.8 7.9 (Billions of yen)
(Year-on-year:
+93.0)
(Year-on-year:
+4.2)
Regional communications business Long distance and international communications business Mobile communications business Data communications business Other business *Includes adjustments such as elimination FY2016
4-6
FY2016
4-6
FY2017
4-6
FY2017
4-6
Regional communications business Long distance and
international communications business Mobile communications business Data communications business Other business 5
Financial Results for the Three Months Ended June 30, 2017 Copyright (c) 2017 Nippon Telegraph and
Telephone Corporation
In the first public participation project of its kind in the history of the
Olympicand Paralympic Games, medals for the Olympic and Paralympic Games
Tokyo 2020 will be
made from used mobile phones and other devicesand small household appliances.
Sponsor : The Tokyo Organising Committee of the Olympic and Paralympic Games
Collaborators: NTT DOCOMO, Japan Environmental Sanitation Center, Ministry of the Environment,
and the Tokyo Metropolitan Government
April 2017: Begin the Project
Began collecting devices from NTT DOCOMOs nationwide stores (approx. 2,400 stores)
*April 1: Tokyo OrganisingCommittee of the Olympic and Paralympic Games launch
event at the Tokyo Station/OtemachiDOCOMO shops
Special guests: Takeshi
Matsuda
(Olympics Swimming/Medalist for three consecutive Olympic games)
TakuroYamada
(Paralympics Swimming/Medalist at theRio Olympic games)
Collect devices from corporations and conduct promotion and collection activities at various events
Expand collections primarily from Olympic/Paralympic partners
Participate in events such as
the Tokyo 2020 Approval Program
(Ex.) Japan Walk in SENDAI and GOLD SPORT DAY 2017
?Establish a Mobile Phone Recycling Class ( July 2017-)
Targeting primary
school students: a joint exercise for all
6th-graders
within a school
* Introduce the project, explain the recycling of
mobile phones, collect mobile phones that are no longer used from childrens homes, etc.
Recycled 740,000 units in the first quarter of FY2017
Initiatives by NTT DOCOMO and NTT
Mobile Phone Recycling Class
6
Project Poster
Tokyo 2020 Medal Project: Towards an Innovative Future for All
Appendix
Progress of Broadband Services
Financial Results for the Three Months Ended June 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
2016.62016.92016.122017.32017.62018.3E4-67-910-121-34-6261183199150241794800Opened connections7866496727508512,8572,900(34)(32)(32)(36)(38)(134)(128)7793111104104385229FY2017EFLETS HikariFLETS ADSLHikari DenwaFY2016FY2017FY201619,52019,70419,90320,05320,2941,01998795591988120,540 20,69120,85820,97221,17517,45117,54517,65517,75917,86212,00014,00016,00018,00020,00022,00020,85379121,64417,988 Number of Subscribers Changes from the Preceding Quarter [5,912] [6,917][11,894][7,854] [8,744] Number of Subscribers for Fixed Broadband Services [9,574] *1Number of FLETS Hikari (including Hikari Collaboration Model) subscribers includes B FLETS, FLETS Hikari Next, FLETS HikariLight, FLETS HikariLightplus, and FLETS Hikari WiFi Access provided by NTT East, B FLETS, FLETS Hikari Premium, FLETS Hikari Mytown, FLETS Hikari Next, FLETS HikariMytownNext, FLETS Hikari Light and FLETS Hikari WiFi Access provided by NTT West, and wholesale services (Hikari Collaboration Model) provided by both NTT East and NTT West. *2 Figures in [ ] represent the number of subscribers to HikariCollaboration Model, the wholesale provision of services by NTT East and NTT West to service providers. *3 Number of opened connections excludes openings as a result of relocations. *4 Numbers for Hikari Denwa include wholesale services provided to service providers by NTT East and NTT West. *5 Numbers of Hikari Denwa subscribers are presented in thousands of channels. (Thousands) *1*2 (Thousands) FLETSADSL HikariDenwa FLETS Hikari (including Hikari Collaboration Model) *1 *3 *4*5 7
Number of Subscribers for Mobile Broadband Services Number of Subscribers * (Thousands) LTE Xi FOMA 80,000 60,000 40,000 20,000 0 72,943 73,58874,88075,114 71,614 39,89341,28142,67144,54445,659 31,72131,66230,91730,33629,455 2016.62016.92016.122017.32017.6 77,100 51,700 25,400 2018.3E Changes from the Preceding Quarter (Thousands) FY2016 FY2017 FY2016 FY2017E 4-6 7-9 10-12 1-3 4-6 LTE(Xi)+FOMA 650 1,330 645 1,292 234 3,916 2,200 *Number of subscribers for Mobile Broadband Services includes Communications Module Service subscribers Financial Results for the Three Months Ended June 30, 2017 8 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Number of Subscribers for Video Services Number of Subscribers (Thousands) 5,000 4,492 4,505 4,521 4,544 4,571 4,632 4,000 1,4451,4641,4891,5211,5511,602 3,000 2,000 3,0473, 0413, 0323, 0233, 0213, 030 1, 000 0 2016 .6 2016 .9 2016.12 2017 .3 2017 .6 2018 .3E FLETS TV Transmission Services * Hikari TV * Number of subscribers to FLETS TV Transmission Services includes wholesale services provided to service providers by NTT East and NTT West. Financial Results for the Three Months Ended June 30, 2017 9 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Financial Information
Details of Consolidated Statement of Income Operating Revenues (Year-on-year: +93.0) (Billions of yen) of SI telecommunications revenues and sale Other revenues equipment 16.8 IP/packet 80.9 services Voice related revenues communications services revenues 2,809.8 5.8 1.1 Systems Integration: +94.2 Fixed voice: (21.6) 2,716.7 Telecommunications Mobile voice: +15.8 equipment: (13.3) FY2016 4-6 FY2017 4-6 Operating Expenses (Year-on-year: +88.8) 23.8 3.0 80.3 expenses Depreciation and loss on Other expenses Personnel expenses disposal of assets 35.4 Expenses of goods and for purchase services 2,318.2 and other expenses 2,229.3 FY2016 4-6 FY2017 4-6 Financial Results for the Three Months Ended June 30, 2017 10 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Details of Consolidated Balance Sheet (Billions of yen) 21,250.3 Liabilities 9,691.8 Assets 21,250.3 Other Cash and Cash 50.8 Equivalents 925.2 Equity Property, plant and 11,507.8 equipment 9,719.0 Retained earnings 5,626.2 Treasury Stock (375.2) March 31, 2017 21,217.0 [(33.3)] Liabilities 9,525.8 [(166.0)] Assets 21,217.0 [(33.3)] Other 53.8 [+3.0] Cash and Cash Equivalents Equity 961.3 11,637.4 [+36.1] [+129.6] Property, plant and Retained earnings equipment 5,777.6 9,724.9 [+151.5] [+5.9] Treasury Stock (418.5) [(43.3)] June 30, 2017 Financial Results for the Three Months Ended June 30, 2017 11 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Details of Consolidated Cash Flows Billions of yen Cash flows from Cash flows from FCF Cash flows from operating investing activities (A) + (B) financing activities activities (B) (A) 1,000 500 0 (500) (1,000) (112.0) 539.1 531.8 Acquisitions/Sales of property, plant, equipment and intangibles [(39.6)] (119.3) Increase/Decrease in current and non-current investments 104.6 [(20.6)] 57.5 (61.9) (7.3) (258.6) (481.7) +363.2 (593.7) Acquisitions/Sales of treasury stock [+224.1] Acquisitions of shares of subsidiaries [+46.1] Increase/Decrease from the same FY2016 FY2017 period of the previous fiscal year 4-6 4-6 Financial Results for the Three Months Ended June 30, 2017 12 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Details of Capital Investment Billions of yen Capital Investment 1,700.0 1,700.0 1,687.2 356.0 67.4 285.8 284.4 33.9 45.4 49.0 26.8 18.1 28.5 28.0 25.1 42.1 57.9 46.2 58.5 46.1 42.1 120.9 93.1 97.1 FY2015 4-6 FY2016 4-6 FY2017 4-6 FY2015 FY2016 FY2017 E Other NTT DATA (Consolidated) NTT Communications NTT West NTT East NTT DOCOMO (Consolidated) Financial Results for the Three Months Ended June 30, 2017 13 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Shareholder Returns (Billions of yen) Share Buybacks (Billions of yen) 539.4 406.5 366.5 381.7 338.1 374.1 200.0 120.0 150.0 86.2 100.0 94.4 93.6 TBD FY1999 FY2002 FY2003 FY2004 FY2005 FY2007 FY2008 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017E Dividends per Pay-out ratio (Yen) Share 150 Note: Dividends have been adjusted to reflect the two-for-one stock split carried out on July 1, 2015 120 110 85 90 80 70 55 60 60 40 45 38.2% 38.0% 37.2% 36.2% 25 30 30 32.3% 31.2% 33.4% 31.4% 30.7% 23.0% 27.5% 12.3% 13.0% 19.5% 17.1% FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017E Financial Results for the Three Months Ended June 30, 2017 14 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
August 4, 2017
FOR IMMEDIATE RELEASE
Financial Statements for the Three Months Ended June 30, 2017
The financial results of Nippon Telegraph and Telephone East Corporation (NTT East) for the three months ended June 30, 2017 are presented in the following attachments.
(Attachments)
1. | Non-Consolidated Comparative Balance Sheets |
2. | Non-Consolidated Comparative Statements of Income |
3. | Business Results (Non-Consolidated Operating Revenues) |
For inquiries, please contact:
Mr. Kenkichi Nakata or Mr. Ryou Yamamoto
Accounting Section, Finance Division
Nippon Telegraph and Telephone East Corporation
Tel: +81-3-5359-3331
E-mail: kessan_info-ml@east.ntt.co.jp
1. Non-Consolidated Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
(Millions of yen) | ||||||||||||
March 31, 2017 | June 30, 2017 |
Increase
(Decrease) |
||||||||||
ASSETS |
||||||||||||
Fixed assets: |
||||||||||||
Fixed assets - telecommunications businesses |
||||||||||||
Property, plant and equipment |
||||||||||||
Machinery and equipment |
339,631 | 339,785 | 154 | |||||||||
Antenna facilities |
3,604 | 3,572 | (31 | ) | ||||||||
Terminal equipment |
22,947 | 22,277 | (669 | ) | ||||||||
Local line facilities |
866,722 | 870,317 | 3,594 | |||||||||
Long-distance line facilities |
2,843 | 2,788 | (54 | ) | ||||||||
Engineering facilities |
588,683 | 584,517 | (4,166 | ) | ||||||||
Submarine line facilities |
732 | 697 | (35 | ) | ||||||||
Buildings |
409,835 | 410,411 | 575 | |||||||||
Construction in progress |
19,988 | 18,866 | (1,122 | ) | ||||||||
Other |
266,121 | 265,035 | (1,085 | ) | ||||||||
Total property, plant and equipment |
2,521,110 | 2,518,268 | (2,841 | ) | ||||||||
Intangible fixed assets |
84,120 | 83,967 | (153 | ) | ||||||||
Total fixed assets - telecommunications businesses |
2,605,230 | 2,602,235 | (2,994 | ) | ||||||||
Investments and other assets |
||||||||||||
Other investments and assets |
199,112 | 200,897 | 1,784 | |||||||||
Allowance for doubtful accounts |
(773 | ) | (760 | ) | 13 | |||||||
Total investments and other assets |
198,338 | 200,137 | 1,798 | |||||||||
Total fixed assets |
2,803,569 | 2,802,372 | (1,196 | ) | ||||||||
Current assets: |
||||||||||||
Cash and bank deposits |
5,605 | 6,093 | 488 | |||||||||
Notes receivable |
| 5 | 5 | |||||||||
Accounts receivable, trade |
230,736 | 206,054 | (24,682 | ) | ||||||||
Supplies |
26,005 | 24,415 | (1,589 | ) | ||||||||
Other current assets |
435,502 | 309,943 | (125,558 | ) | ||||||||
Allowance for doubtful accounts |
(327 | ) | (281 | ) | 46 | |||||||
Total current assets |
697,521 | 546,230 | (151,291 | ) | ||||||||
|
|
|
|
|
|
|||||||
TOTAL ASSETS |
3,501,091 | 3,348,603 | (152,488 | ) | ||||||||
|
|
|
|
|
|
1
(Millions of yen) | ||||||||||||
March 31, 2017 | June 30, 2017 |
Increase
(Decrease) |
||||||||||
LIABILITIES |
||||||||||||
Long-term liabilities: |
||||||||||||
Long-term borrowings from parent company |
225,220 | 225,220 | | |||||||||
Liability for employees retirement benefits |
247,366 | 249,830 | 2,464 | |||||||||
Reserve for point services |
4,145 | 4,321 | 176 | |||||||||
Reserve for unused telephone cards |
8,460 | 7,992 | (467 | ) | ||||||||
Allowance for environmental measures |
3,637 | 3,637 | | |||||||||
Asset retirement obligations |
902 | 898 | (4 | ) | ||||||||
Other long-term liabilities |
36,166 | 36,079 | (87 | ) | ||||||||
Total long-term liabilities |
525,898 | 527,980 | 2,081 | |||||||||
Current liabilities: |
||||||||||||
Current portion of long-term borrowings from parent company |
140,615 | 140,615 | | |||||||||
Accounts payable, trade |
89,029 | 37,552 | (51,477 | ) | ||||||||
Accrued taxes on income |
14,186 | * | 7,069 | (7,117 | ) | |||||||
Allowance for environmental measures |
2,285 | 1,945 | (339 | ) | ||||||||
Asset retirement obligations |
1 | | (1 | ) | ||||||||
Other current liabilities |
442,617 | 436,637 | (5,979 | ) | ||||||||
Total current liabilities |
688,735 | 623,819 | (64,915 | ) | ||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES |
1,214,633 | 1,151,800 | (62,833 | ) | ||||||||
|
|
|
|
|
|
|||||||
NET ASSETS |
||||||||||||
Shareholders equity: |
||||||||||||
Common stock |
335,000 | 335,000 | | |||||||||
Capital surplus |
1,499,726 | 1,499,726 | | |||||||||
Earned surplus |
447,459 | 357,862 | (89,596 | ) | ||||||||
Total shareholders equity |
2,282,186 | 2,192,589 | (89,596 | ) | ||||||||
Unrealized gains (losses), translation adjustments, and others: |
||||||||||||
Net unrealized gains (losses) on securities |
4,271 | 4,213 | (57 | ) | ||||||||
Total unrealized gains (losses), translation adjustments, and others |
4,271 | 4,213 | (57 | ) | ||||||||
|
|
|
|
|
|
|||||||
TOTAL NET ASSETS |
2,286,457 | 2,196,803 | (89,654 | ) | ||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES AND NET ASSETS |
3,501,091 | 3,348,603 | (152,488 | ) | ||||||||
|
|
|
|
|
|
Note: | *NTT East participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements. |
2
2. Non-Consolidated Comparative Statements of Income
(Based on accounting principles generally accepted in Japan)
(Millions of yen) | ||||||||||||||||
Three months ended
June 30, 2016 |
Three months ended
June 30, 2017 |
Increase
(Decrease) |
Year ended
March 31, 2017 |
|||||||||||||
Telecommunications businesses: |
||||||||||||||||
Operating revenues |
385,050 | 378,660 | (6,389 | ) | 1,534,745 | |||||||||||
Operating expenses |
324,919 | 307,656 | (17,263 | ) | 1,367,603 | |||||||||||
Operating income from telecommunications businesses |
60,130 | 71,004 | 10,873 | 167,142 | ||||||||||||
Supplementary businesses: |
||||||||||||||||
Operating revenues |
25,090 | 26,894 | 1,804 | 137,497 | ||||||||||||
Operating expenses |
21,096 | 22,293 | 1,197 | 115,534 | ||||||||||||
Operating income from supplementary businesses |
3,994 | 4,601 | 606 | 21,962 | ||||||||||||
Operating income |
64,125 | 75,605 | 11,480 | 189,104 | ||||||||||||
Non-operating revenues: |
||||||||||||||||
Interest income |
6 | 4 | (1 | ) | 26 | |||||||||||
Dividends received |
3,155 | 6,885 | 3,729 | 3,226 | ||||||||||||
Gains on sales of fixed assets |
13,538 | 625 | (12,912 | ) | 14,363 | |||||||||||
Miscellaneous income |
672 | 655 | (16 | ) | 2,647 | |||||||||||
Total non-operating revenues |
17,371 | 8,171 | (9,200 | ) | 20,263 | |||||||||||
Non-operating expenses: |
||||||||||||||||
Interest expenses |
1,170 | 894 | (276 | ) | 4,669 | |||||||||||
Miscellaneous expenses |
122 | 26 | (95 | ) | 260 | |||||||||||
Total non-operating expenses |
1,292 | 920 | (372 | ) | 4,930 | |||||||||||
Recurring profit |
80,203 | 82,856 | 2,652 | 204,438 | ||||||||||||
Income before income taxes |
80,203 | 82,856 | 2,652 | 204,438 | ||||||||||||
Income taxes |
* | 22,393 | * | 22,794 | 401 | 54,774 | ||||||||||
Net income |
57,810 | 60,061 | 2,250 | 149,663 |
Note: | * NTT East participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements. |
3
3. Business Results (Non-Consolidated Operating Revenues)
(Based on accounting principles generally accepted in Japan)
(Millions of yen) | ||||||||||||||||||||
Three months ended
June 30, 2016 |
Three months ended
June 30, 2017 |
Increase
(Decrease) |
Percent
Increase (Decrease) |
Year ended
March 31, 2017 |
||||||||||||||||
Voice transmission services revenues (excluding IP services revenues) |
101,448 | 94,295 | (7,153 | ) | (7.1 | ) | 396,519 | |||||||||||||
Monthly charge revenues* |
76,586 | 71,477 | (5,109 | ) | (6.7 | ) | 299,992 | |||||||||||||
Call rates revenues* |
6,900 | 5,981 | (919 | ) | (13.3 | ) | 26,272 | |||||||||||||
Interconnection call revenues* |
11,762 | 10,910 | (851 | ) | (7.2 | ) | 45,606 | |||||||||||||
IP services revenues |
213,354 | 213,425 | 70 | 0.0 | 850,388 | |||||||||||||||
Leased circuit services revenues (excluding IP services revenues) |
24,066 | 23,269 | (796 | ) | (3.3 | ) | 93,307 | |||||||||||||
Telegram services revenues |
3,163 | 2,978 | (184 | ) | (5.8 | ) | 11,422 | |||||||||||||
Other telecommunications services revenues |
43,017 | 44,691 | 1,674 | 3.9 | 183,107 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Telecommunications total revenues |
385,050 | 378,660 | (6,389 | ) | (1.7 | ) | 1,534,745 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplementary business total revenues |
25,090 | 26,894 | 1,804 | 7.2 | 137,497 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating revenues |
410,140 | 405,555 | (4,585 | ) | (1.1 | ) | 1,672,243 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
* | Partial listing only |
4
August 4, 2017
FOR IMMEDIATE RELEASE
Financial Results for the Three Months Ended June 30, 2017
The financial results of Nippon Telegraph and Telephone West Corporation (NTT West) for the three months ended June 30, 2017 are presented in the following attachments.
(Attachments)
1. | Non-Consolidated Comparative Balance Sheets |
2. | Non-Consolidated Comparative Statements of Income |
3. | Business Results (Non-Consolidated Operating Revenues) |
For inquiries, please contact:
Junichiro Maekawa or Kenichi Matsuno
Accounting Section, Finance Division
Nippon Telegraph and Telephone West Corporation
Tel: +81-6-4793-3141
E-mail: kessan-info@west.ntt.co.jp
1. Non-Consolidated Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
(Millions of yen) | ||||||||||||
March 31, 2017 | June 30, 2017 |
Increase
(Decrease) |
||||||||||
ASSETS |
||||||||||||
Fixed assets: |
||||||||||||
Fixed assets - telecommunications businesses |
||||||||||||
Property, plant and equipment |
||||||||||||
Machinery and equipment |
297,757 | 295,635 | (2,121 | ) | ||||||||
Antenna facilities |
5,895 | 5,831 | (64 | ) | ||||||||
Terminal equipment |
11,318 | 11,435 | 117 | |||||||||
Local line facilities |
1,051,300 | 1,057,094 | 5,793 | |||||||||
Long-distance line facilities |
1,693 | 1,665 | (28 | ) | ||||||||
Engineering facilities |
517,724 | 513,266 | (4,458 | ) | ||||||||
Submarine line facilities |
3,131 | 3,692 | 561 | |||||||||
Buildings |
312,924 | 308,503 | (4,420 | ) | ||||||||
Construction in progress |
31,294 | 25,715 | (5,579 | ) | ||||||||
Other |
219,918 | 218,593 | (1,325 | ) | ||||||||
Total property, plant and equipment |
2,452,960 | 2,441,434 | (11,526 | ) | ||||||||
Intangible fixed assets |
64,444 | 62,089 | (2,355 | ) | ||||||||
Total fixed assets - telecommunications businesses |
2,517,404 | 2,503,523 | (13,881 | ) | ||||||||
Investments and other assets |
||||||||||||
Other investments and assets |
187,606 | 188,779 | 1,173 | |||||||||
Allowance for doubtful accounts |
(681 | ) | (605 | ) | 76 | |||||||
Total investments and other assets |
186,924 | 188,173 | 1,249 | |||||||||
Total fixed assets |
2,704,329 | 2,691,697 | (12,632 | ) | ||||||||
Current assets: |
||||||||||||
Cash and bank deposits |
18,251 | 5,927 | (12,324 | ) | ||||||||
Notes receivable |
| 16 | 16 | |||||||||
Accounts receivable, trade |
199,820 | 173,558 | (26,261 | ) | ||||||||
Supplies |
29,950 | 29,756 | (194 | ) | ||||||||
Other current assets |
151,715 | 117,616 | (34,099 | ) | ||||||||
Allowance for doubtful accounts |
(339 | ) | (241 | ) | 98 | |||||||
Total current assets |
399,398 | 326,634 | (72,764 | ) | ||||||||
|
|
|
|
|
|
|||||||
TOTAL ASSETS |
3,103,728 | 3,018,332 | (85,396 | ) | ||||||||
|
|
|
|
|
|
1
(Millions of yen) | ||||||||||||
March 31, 2017 | June 30, 2017 |
Increase
(Decrease) |
||||||||||
LIABILITIES |
||||||||||||
Long-term liabilities: |
||||||||||||
Long-term borrowings from parent company |
591,000 | 571,000 | (20,000 | ) | ||||||||
Liability for employees retirement benefits |
242,251 | 244,155 | 1,904 | |||||||||
Reserve for point services |
3,792 | 2,694 | (1,098 | ) | ||||||||
Reserve for unused telephone cards |
8,000 | 7,558 | (441 | ) | ||||||||
Allowance for environmental measures |
9,074 | 9,074 | | |||||||||
Asset retirement obligations |
228 | 229 | 0 | |||||||||
Other long-term liabilities |
4,749 | 4,702 | (47 | ) | ||||||||
Total long-term liabilities |
859,097 | 839,413 | (19,683 | ) | ||||||||
Current liabilities: |
||||||||||||
Current portion of long-term borrowings from parent company |
110,707 | 130,707 | 20,000 | |||||||||
Accounts payable, trade |
71,635 | 29,851 | (41,783 | ) | ||||||||
Short-term borrowings |
105,259 | 115,246 | 9,986 | |||||||||
Accrued taxes on income |
8,731 | * | 4,885 | (3,846 | ) | |||||||
Allowance for loss on disaster |
4,096 | 3,983 | (112 | ) | ||||||||
Allowance for environmental measures |
2,361 | 1,811 | (549 | ) | ||||||||
Asset retirement obligations |
133 | 140 | 6 | |||||||||
Other current liabilities |
362,351 | 308,976 | (53,374 | ) | ||||||||
Total current liabilities |
665,277 | 595,603 | (69,673 | ) | ||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES |
1,524,374 | 1,435,017 | (89,357 | ) | ||||||||
|
|
|
|
|
|
|||||||
NET ASSETS |
||||||||||||
Shareholders equity: |
||||||||||||
Common stock |
312,000 | 312,000 | | |||||||||
Capital surplus |
1,170,054 | 1,170,054 | | |||||||||
Earned surplus |
96,911 | 100,767 | 3,855 | |||||||||
Total shareholders equity |
1,578,965 | 1,582,821 | 3,855 | |||||||||
Unrealized gains (losses), translation adjustments, and others: |
||||||||||||
Net unrealized gains (losses) on securities |
388 | 492 | 104 | |||||||||
Total unrealized gains (losses), translation adjustments, and others |
388 | 492 | 104 | |||||||||
|
|
|
|
|
|
|||||||
TOTAL NET ASSETS |
1,579,353 | 1,583,314 | 3,960 | |||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES AND NET ASSETS |
3,103,728 | 3,018,332 | (85,396 | ) | ||||||||
|
|
|
|
|
|
Note: | * NTT West participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements. |
2
2. Non-Consolidated Comparative Statements of Income
(Based on accounting principles generally accepted in Japan)
(Millions of yen) | ||||||||||||||||
Three months
ended
June 30, 2016 |
Three months
ended
June 30, 2017 |
Increase
(Decrease) |
Year ended
March 31, 2017 |
|||||||||||||
Telecommunications businesses: |
||||||||||||||||
Operating revenues |
333,039 | 321,822 | (11,217 | ) | 1,325,585 | |||||||||||
Operating expenses |
297,705 | 275,913 | (21,791 | ) | 1,242,485 | |||||||||||
Operating income from telecommunications businesses |
35,334 | 45,908 | 10,574 | 83,099 | ||||||||||||
Supplementary businesses: |
||||||||||||||||
Operating revenues |
29,016 | 29,188 | 172 | 153,430 | ||||||||||||
Operating expenses |
25,641 | 25,540 | (101 | ) | 141,343 | |||||||||||
Operating income from supplementary businesses |
3,375 | 3,648 | 273 | 12,086 | ||||||||||||
Operating income |
38,709 | 49,557 | 10,847 | 95,186 | ||||||||||||
Non-operating revenues: |
||||||||||||||||
Interest income |
3 | 3 | (0 | ) | 12 | |||||||||||
Dividends received |
593 | 827 | 234 | 615 | ||||||||||||
Miscellaneous income |
626 | 549 | (76 | ) | 2,330 | |||||||||||
Total non-operating revenues |
1,222 | 1,381 | 158 | 2,957 | ||||||||||||
Non-operating expenses: |
||||||||||||||||
Interest expenses |
2,037 | 1,492 | (544 | ) | 7,114 | |||||||||||
Miscellaneous expenses |
57 | 49 | (8 | ) | 2,875 | |||||||||||
Total non-operating expenses |
2,095 | 1,542 | (552 | ) | 9,989 | |||||||||||
Recurring profit |
37,837 | 49,396 | 11,558 | 88,154 | ||||||||||||
Special losses |
5,705 | | (5,705 | ) | 6,915 | |||||||||||
Income before income taxes |
32,132 | 49,396 | 17,264 | 81,239 | ||||||||||||
Income taxes |
* | 8,830 | * | 14,340 | 5,510 | 21,469 | ||||||||||
Net income |
23,302 | 35,055 | 11,753 | 59,770 |
Note: | * NTT West participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements. |
3
3. Business Results (Non-Consolidated Operating Revenues)
(Based on accounting principles generally accepted in Japan)
(Millions of yen) | ||||||||||||||||||||
Three months
ended
June 30, 2016 |
Three months
ended
June 30, 2017 |
Increase
(Decrease) |
Percent
Increase (Decrease) |
Year ended
March 31, 2017 |
||||||||||||||||
Voice transmission services revenues (excluding IP services revenues) |
101,607 | 93,779 | (7,827 | ) | (7.7 | ) | 396,272 | |||||||||||||
Monthly charge revenues* |
76,153 | 70,991 | (5,162 | ) | (6.8 | ) | 298,340 | |||||||||||||
Call rates revenues* |
6,484 | 5,578 | (905 | ) | (14.0 | ) | 24,590 | |||||||||||||
Interconnection call revenues* |
12,909 | 11,628 | (1,281 | ) | (9.9 | ) | 49,676 | |||||||||||||
IP services revenues |
175,536 | 173,530 | (2,006 | ) | (1.1 | ) | 697,252 | |||||||||||||
Leased circuit services revenues
|
22,078 | 22,001 | (77 | ) | (0.3 | ) | 86,362 | |||||||||||||
Telegram services revenues |
3,408 | 3,113 | (295 | ) | (8.7 | ) | 12,625 | |||||||||||||
Other telecommunications services revenues |
30,408 | 29,397 | (1,010 | ) | (3.3 | ) | 133,071 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Telecommunications total revenues |
333,039 | 321,822 | (11,217 | ) | (3.4 | ) | 1,325,585 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Supplementary business total revenues |
29,016 | 29,188 | 172 | 0.6 | 153,430 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating revenues |
362,056 | 351,011 | (11,045 | ) | (3.1 | ) | 1,479,015 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
* | Partial listing only |
4
August 4, 2017
FOR IMMEDIATE RELEASE
NTT Com Announces Financial Results for the Three Months Ended June 30, 2017
TOKYO, JAPAN NTT Communications Corporation (NTT Com) announced today its financial results for the three months ended June 30, 2017. Please see the following attachments for further details:
I. | Financial Results of NTT Communications Group |
II. | Non-Consolidated Comparative Balance Sheets |
III. | Non-Consolidated Comparative Statements of Income |
IV. | Business Results (Non-Consolidated Operating Revenues) |
# # #
About NTT Communications Corporation
NTT Communications provides consultancy, architecture, security and cloud services to optimize the information and communications technology (ICT) environments of enterprises. These offerings are backed by the companys worldwide infrastructure, including a leading global tier-1 IP network, the Arcstar Universal One VPN network, reaching 196 countries/regions, and 140 secure data centers worldwide. NTT Communications solutions leverage the global resources of NTT Group companies, including Dimension Data, NTT DOCOMO and NTT DATA.
www.ntt.com | Twitter@NTT Communications | Facebook@NTT Communications | LinkedIn@NTT
For more information
(Mr.) Akira Ito or (Mr.) Shinichi Shimizu
Accounting and Taxation, Finance, NTT Communications
Tel: +81 3 6700 4311
Email: info-af@ntt.com
I. Financial Results of NTT Communications Group
(Millions of yen) | ||||||||||||||||
Three months ended
Jun 30, 2016 |
Three months ended
Jun 30, 2017 |
Increase
(Decrease) |
Percent
Increase (Decrease) |
|||||||||||||
Operating revenues |
306,052 | 317,421 | 11,369 | 3.7 | ||||||||||||
Operating expenses |
272,440 | 277,043 | 4,603 | 1.7 | ||||||||||||
Operating income |
33,612 | 40,378 | 6,766 | 20.1 |
1
II. Non-Consolidated Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
(Millions of yen) | ||||||||||||
March 31, 2017 | June 30, 2017 |
Increase
(Decrease) |
||||||||||
ASSETS |
||||||||||||
Fixed assets: |
||||||||||||
Fixed assets - telecommunications businesses |
||||||||||||
Property, plant and equipment |
||||||||||||
Machinery and equipment |
151,531 | 128,138 | (23,392 | ) | ||||||||
Antenna facilities |
1,674 | 1,371 | (302 | ) | ||||||||
Terminal equipment |
1,963 | 2,118 | 154 | |||||||||
Local line facilities |
1,103 | 1,084 | (18 | ) | ||||||||
Long-distance line facilities |
5,122 | 5,127 | 5 | |||||||||
Engineering facilities |
49,878 | 49,404 | (474 | ) | ||||||||
Submarine line facilities |
16,701 | 16,277 | (424 | ) | ||||||||
Buildings |
205,475 | 208,475 | 3,000 | |||||||||
Construction in progress |
13,323 | 11,190 | (2,132 | ) | ||||||||
Other |
105,983 | 120,088 | 14,105 | |||||||||
Total property, plant and equipment |
552,757 | 543,278 | (9,479 | ) | ||||||||
Intangible fixed assets |
98,820 | 102,273 | 3,452 | |||||||||
Total fixed assets - telecommunications businesses |
651,578 | 645,551 | (6,026 | ) | ||||||||
Investments and other assets |
||||||||||||
Investment securities |
108,152 | 111,280 | 3,128 | |||||||||
Investments in subsidiaries and affiliated companies |
387,905 | 390,251 | 2,345 | |||||||||
Other investments and assets |
65,778 | 65,285 | (493 | ) | ||||||||
Allowance for doubtful accounts |
(160 | ) | (146 | ) | 14 | |||||||
Total investments and other assets |
561,675 | 566,671 | 4,995 | |||||||||
Total fixed assets |
1,213,254 | 1,212,222 | (1,031 | ) | ||||||||
Current assets: |
||||||||||||
Cash and bank deposits |
3,406 | 9,438 | 6,031 | |||||||||
Notes receivable |
8 | 8 | | |||||||||
Accounts receivable, trade |
178,248 | 157,748 | (20,499 | ) | ||||||||
Supplies |
9,643 | 9,101 | (542 | ) | ||||||||
Other current assets |
90,655 | 76,705 | (13,950 | ) | ||||||||
Allowance for doubtful accounts |
(1,367 | ) | (1,228 | ) | 138 | |||||||
Total current assets |
280,595 | 251,773 | (28,821 | ) | ||||||||
|
|
|
|
|
|
|||||||
TOTAL ASSETS |
1,493,849 | 1,463,996 | (29,852 | ) | ||||||||
|
|
|
|
|
|
2
Note: | *NTT Com participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements. |
3
III. Non-Consolidated Comparative Statements of Income
(Based on accounting principles generally accepted in Japan)
(Millions of yen) | ||||||||||||||||
Three months ended
June 30, 2016 |
Three months ended
June 30, 2017 |
Increase
(Decrease) |
Year ended
March 31, 2017 |
|||||||||||||
Telecommunications businesses: |
||||||||||||||||
Operating revenues |
172,579 | 171,426 | (1,152 | ) | 697,333 | |||||||||||
Operating expenses |
154,581 | 146,742 | (7,838 | ) | 620,370 | |||||||||||
Operating income from telecommunications businesses |
17,998 | 24,684 | 6,686 | 76,963 | ||||||||||||
Supplementary businesses: |
||||||||||||||||
Operating revenues |
47,628 | 58,965 | 11,336 | 226,522 | ||||||||||||
Operating expenses |
39,804 | 52,238 | 12,433 | 210,936 | ||||||||||||
Operating income from supplementary businesses |
7,823 | 6,726 | (1,096 | ) | 15,585 | |||||||||||
Operating income |
25,821 | 31,411 | 5,589 | 92,549 | ||||||||||||
Non-operating revenues: |
||||||||||||||||
Interest income |
27 | 7 | (19 | ) | 62 | |||||||||||
Dividends received |
4,599 | 3,735 | (863 | ) | 8,258 | |||||||||||
Lease and rental income |
2,835 | 2,667 | (168 | ) | 11,204 | |||||||||||
Miscellaneous income |
32 | 387 | 354 | 1,222 | ||||||||||||
Total non-operating revenues |
7,495 | 6,798 | (697 | ) | 20,748 | |||||||||||
Non-operating expenses: |
||||||||||||||||
Interest expenses |
277 | 187 | (90 | ) | 1,050 | |||||||||||
Lease and rental expenses |
1,361 | 1,200 | (160 | ) | 5,712 | |||||||||||
Miscellaneous expenses |
704 | 38 | (666 | ) | 1,072 | |||||||||||
Total non-operating expenses |
2,344 | 1,426 | (917 | ) | 7,836 | |||||||||||
Recurring profit |
30,973 | 36,782 | 5,809 | 105,461 | ||||||||||||
Special profits |
| 2,433 | 2,433 | | ||||||||||||
Income before income taxes |
30,973 | 39,215 | 8,242 | 105,461 | ||||||||||||
Income taxes |
* | 8,668 | * | 11,546 | 2,878 | 20,458 | ||||||||||
Net income |
22,304 | 27,668 | 5,364 | 85,003 |
Note: | *NTT Com participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements. |
4
IV. Business Results (Non-Consolidated Operating Revenues)
(Based on accounting principles generally accepted in Japan)
(Millions of yen) | ||||||||||||||||||||
Three months ended
June 30, 2016 |
Three months ended
June 30, 2017 |
Increase
(Decrease) |
Percent
Increase (Decrease) |
Year ended
March 31, 2017 |
||||||||||||||||
Cloud Computing Platforms |
17,147 | 20,200 | 3,053 | 17.8 | 72,034 | |||||||||||||||
Data Networks |
94,815 | 97,246 | 2,430 | 2.6 | 384,804 | |||||||||||||||
Voice Communications |
63,069 | 60,039 | (3,029 | ) | (4.8 | ) | 250,794 | |||||||||||||
Applications & Content |
9,446 | 8,775 | (670 | ) | (7.1 | ) | 37,732 | |||||||||||||
Solution Services |
31,974 | 37,319 | 5,345 | 16.7 | 163,496 | |||||||||||||||
Others |
3,754 | 6,809 | 3,055 | 81.4 | 14,993 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total operating revenues |
220,207 | 230,392 | 10,184 | 4.6 | 923,855 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
5
August 4, 2017
Nippon Telegraph and Telephone Corporation
Supplementary Data for
the Three Months Ended June 30, 2017
Contents
1. Financial Results Summary (Consolidated) |
pages 1-2 | |||
2. Financial Results (Business Segments) |
page 3 | |||
3. Financial Results (Holding Company and Subsidiaries) |
pages 4-6 | |||
4. Operating Data |
pages 7-9 |
Disclaimers
The projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained 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 herein, as well as other risks included in NTTs 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. |
1. Financial Results Summary (NTT Consolidated Financial Results, EBITDA and EBITDA Margin and Interest-Bearing Liabilities)
NTT Consolidated Financial Results
Notes : |
(1 | ) | Beginning with the three months ended March 31, 2017, the method for calculating EBITDA has been revised to add Loss on Sales of Property, Plant and Equipment and Impairment Loss. EBITDA and EBITDA Margin, as calculated using the previous method including only Operating Income and Depreciation and Amortization, and Loss on Disposal of Property, Plant and Equipment, would have been 837.1 billion yen and 29.8%, respectively, for the three months ended June 30, 2017. EBITDA and EBITDA Margin figures presented in the table above have been retroactively recalculated using the new calculation method. |
1
1. Financial Results Summary (Capital Investment)
Capital Investment
Notes : |
(1) | Capital Investment figures for domestic access network businesses for the three months ended June 30, 2016, the three months ended June 30, 2017 and the year ending March 31, 2018 (Forecast) are 211.3 billion yen, 240.4 billion yen and 1,193.0 billion yen, respectively. | ||
(2) | Figures for NTT East and NTT West include figures for Optical Access Network Investment. |
2
2. Financial Results (Business Segments)
Note: |
(1 | ) | Figures for each segment include inter-segment transactions. |
3
3. Financial Results (Holding Company and Subsidiaries)
Note: | (1) | Operating Revenues from Voice Transmission Services (excluding IP) of NTT East and NTT West for the three months ended June 30, 2017 include monthly charges, call charges and interconnection charges of 71.4 billion yen, 5.9 billion yen and 10.9 billion yen for NTT East, and 70.9 billion yen, 5.5 billion yen and 11.6 billion yen for NTT West, respectively. |
4
3. Financial Results (Holding Company and Subsidiaries)
Notes: | (1) | The following are the main services included in each line item: | ||
- Cloud Computing Platforms: Data center services and Private Cloud (Enterprise Cloud, etc.) | ||||
- Data Networks: Closed network services (Arcstar Universal One, etc.) and Open network service (OCN, etc.) | ||||
- Voice Communications: Telephone services and VoIP services (050 plus, etc.) | ||||
- Applications & Content: Application services (Mail services, etc.) | ||||
- Solution Services: System integration services | ||||
(2) | Because Dimension Datas statements of income from January 1 to March 31, 2017 are consolidated into NTTs consolidated statements of income from April 1 to June 30, 2017, Dimension Datas financial results for the three months ended March 31, 2017 are included under the three months ended June 30, 2017 and Dimension Datas forecast for the twelve months ending December 31, 2017 is included under Year Ending March 31, 2018 (Forecast). | |||
(3) | The conversion rate used for Dimension Data figures for the three months ended June 30, 2017 is USD1.00 = JPY113.60. | |||
(4) | Operating Income for the three months ended June 30, 2017 under US GAAP was (2.8) billion yen. |
5
3. Financial Results (Holding Company and Subsidiaries)
6
4. Operating Data
Number of Subscribers
(in thousands except for Public Telephones) | ||||||||||||||||||||||||||||||||||||
FY 2016 | FY 2017 | FY 2017 (E) | ||||||||||||||||||||||||||||||||||
As of
June 30 |
As of
September 30 |
As of
December 31 |
As of
March 31 |
As of
June 30 |
As of
September 30 |
As of
December 31 |
As of
March 31 |
As of
March 31 |
||||||||||||||||||||||||||||
Telephone Subscriber Lines (1) |
19,671 | 19,413 | 19,117 | 18,797 | 18,482 | 17,785 | ||||||||||||||||||||||||||||||
NTT East |
9,740 | 9,617 | 9,471 | 9,315 | 9,166 | 8,865 | ||||||||||||||||||||||||||||||
NTT West |
9,931 | 9,796 | 9,647 | 9,482 | 9,316 | 8,920 | ||||||||||||||||||||||||||||||
INS-Net (2) |
2,719 | 2,661 | 2,602 | 2,539 | 2,488 | 2,326 | ||||||||||||||||||||||||||||||
NTT East |
1,384 | 1,356 | 1,325 | 1,293 | 1,269 | 1,193 | ||||||||||||||||||||||||||||||
NTT West |
1,334 | 1,305 | 1,276 | 1,246 | 1,219 | 1,133 | ||||||||||||||||||||||||||||||
Telephone Subscriber Lines + INS-Net |
22,390 | 22,074 | 21,719 | 21,336 | 20,970 | 20,111 | ||||||||||||||||||||||||||||||
NTT East |
11,125 | 10,973 | 10,796 | 10,609 | 10,434 | 10,059 | ||||||||||||||||||||||||||||||
NTT West |
11,265 | 11,102 | 10,923 | 10,727 | 10,535 | 10,052 | ||||||||||||||||||||||||||||||
Public Telephones |
168,673 | 166,120 | 163,921 | 161,375 | 160,396 | 157,972 | ||||||||||||||||||||||||||||||
NTT East |
76,511 | 74,846 | 73,357 | 71,434 | 71,037 | 70,434 | ||||||||||||||||||||||||||||||
NTT West |
92,162 | 91,274 | 90,564 | 89,941 | 89,359 | 87,538 | ||||||||||||||||||||||||||||||
FLETS ISDN |
83 | 81 | 79 | 77 | 75 | 70 | ||||||||||||||||||||||||||||||
NTT East |
36 | 35 | 34 | 33 | 33 | 30 | ||||||||||||||||||||||||||||||
NTT West |
47 | 46 | 45 | 44 | 43 | 39 | ||||||||||||||||||||||||||||||
FLETS ADSL |
1,019 | 987 | 955 | 919 | 881 | 791 | ||||||||||||||||||||||||||||||
NTT East |
459 | 444 | 428 | 411 | 394 | 351 | ||||||||||||||||||||||||||||||
NTT West |
560 | 543 | 527 | 508 | 487 | 440 | ||||||||||||||||||||||||||||||
FLETS Hikari (including Hikari Collaboration Model) (3)(4)(5) |
19,520 | 19,704 | 19,903 | 20,053 | 20,294 | 20,853 | ||||||||||||||||||||||||||||||
NTT East |
10,839 | 10,958 | 11,078 | 11,173 | 11,318 | 11,673 | ||||||||||||||||||||||||||||||
NTT West |
8,681 | 8,746 | 8,825 | 8,880 | 8,976 | 9,180 | ||||||||||||||||||||||||||||||
(incl.) Hikari Collaboration Model |
5,912 | 6,917 | 7,854 | 8,744 | 9,574 | 11,894 | ||||||||||||||||||||||||||||||
NTT East |
3,781 | 4,337 | 4,846 | 5,328 | 5,770 | 7,028 | ||||||||||||||||||||||||||||||
NTT West |
2,131 | 2,580 | 3,008 | 3,416 | 3,804 | 4,866 | ||||||||||||||||||||||||||||||
Hikari Denwa (6) |
17,451 | 17,545 | 17,655 | 17,759 | 17,862 | 17,988 | ||||||||||||||||||||||||||||||
NTT East |
9,180 | 9,242 | 9,311 | 9,369 | 9,433 | 9,569 | ||||||||||||||||||||||||||||||
NTT West |
8,271 | 8,302 | 8,344 | 8,390 | 8,430 | 8,419 | ||||||||||||||||||||||||||||||
Conventional Leased Circuit Services |
231 | 229 | 227 | 225 | 224 | 218 | ||||||||||||||||||||||||||||||
NTT East |
112 | 111 | 110 | 109 | 109 | 105 | ||||||||||||||||||||||||||||||
NTT West |
118 | 118 | 117 | 116 | 115 | 113 | ||||||||||||||||||||||||||||||
High Speed Digital Services |
114 | 112 | 110 | 108 | 106 | 100 | ||||||||||||||||||||||||||||||
NTT East |
58 | 57 | 56 | 55 | 54 | 52 | ||||||||||||||||||||||||||||||
NTT West |
56 | 55 | 54 | 53 | 52 | 48 | ||||||||||||||||||||||||||||||
NTT Group Major ISPs (7) |
11,360 | 11,328 | 11,303 | 11,231 | 11,189 | 11,031 | ||||||||||||||||||||||||||||||
(incl.) OCN |
7,969 | 7,905 | 7,847 | 7,739 | 7,678 | 7,496 | ||||||||||||||||||||||||||||||
(incl.) Plala |
3,024 | 3,047 | 3,075 | 3,106 | 3,124 | 3,130 | ||||||||||||||||||||||||||||||
Hikari TV |
3,047 | 3,041 | 3,032 | 3,023 | 3,021 | 3,030 | ||||||||||||||||||||||||||||||
FLETS TV Transmission Services (6) |
1,445 | 1,464 | 1,489 | 1,521 | 1,551 | 1,602 | ||||||||||||||||||||||||||||||
NTT East |
917 | 926 | 939 | 951 | 963 | 981 | ||||||||||||||||||||||||||||||
NTT West |
528 | 538 | 551 | 570 | 587 | 621 | ||||||||||||||||||||||||||||||
Mobile Telecommunications Services (8) |
71,614 | 72,943 | 73,588 | 74,880 | 75,114 | 77,100 | ||||||||||||||||||||||||||||||
(incl.) Kake-hodai & Pake-aeru billing plan |
31,586 | 33,416 | 35,198 | 37,066 | 38,342 | | ||||||||||||||||||||||||||||||
Telecommunications Services (LTE (Xi)) |
39,893 | 41,281 | 42,671 | 44,544 | 45,659 | 51,700 | ||||||||||||||||||||||||||||||
Telecommunications Services (FOMA (3G)) |
31,721 | 31,662 | 30,917 | 30,336 | 29,455 | 25,400 | ||||||||||||||||||||||||||||||
sp-mode |
33,082 | 33,809 | 34,749 | 35,921 | 36,671 | 40,200 | ||||||||||||||||||||||||||||||
i-mode |
18,136 | 17,416 | 16,503 | 15,493 | 14,662 | 11,300 |
Notes: | (1) | Number of Telephone Subscriber Lines is the total of individual lines and central station lines (Subscriber Telephone Light Plan is included). | ||
(2) | INS-Net includes INS-Net 64 and INS-Net 1500. In terms of number of channels, transmission rate, and line use rate (base rate), INS-Net 1500 is in all cases roughly ten times greater than INS-Net 64. For this reason, one INS-Net 1500 subscription is calculated as ten INS-Net 64 subscriptions (including subscriptions to the INS-Net 64 Lite Plan). | |||
(3) | Number of FLETS Hikari (including Hikari Collaboration Model) subscribers includes subscribers to B FLETS, FLETS Hikari Next, FLETS Hikari Light, FLETS Hikari Lightplus and FLETS Hikari WiFi Access provided by NTT East, subscribers to B FLETS, FLETS Hikari Premium, FLETS Hikari Mytown, FLETS Hikari Next, FLETS Hikari Mytown Next, FLETS Hikari Light and FLETS Hikari WiFi Access provided by NTT West and subscribers to the Hikari Collaboration Model, the wholesale provision of services to service providers by NTT East and NTT West. | |||
(4) | The comparative results for the three months ended June 30, 2017 compared to the year ended March 31, 2017 for FLETS Hikari (including Hikari Collaboration Model) are as follows: the numbers of new subscribers for NTT East and NTT West were 480 thousand lines and 371 thousand lines, respectively, for a total of 851 thousand lines; the numbers of new subscribers (excluding switchover lines) for the Hikari Collaboration Model for NTT East and NTT West were 358 thousand lines and 262 thousand lines, respectively, for a total of 619 thousand lines; and the numbers of switchover lines for NTT East and NTT West were 268 thousand lines and 241 thousand lines, respectively, for a total of 509 thousand lines. | |||
(5) | The comparative forecast for the year ending March 31, 2018 compared to the results for the year ended March 31, 2017 for FLETS Hikari (including Hikari Collaboration Model) are as follows: the numbers of new subscribers for NTT East and NTT West are expected to be 1,700 thousand lines and 1,200 thousand lines, respectively, for a total of 2,900 thousand lines; the numbers of new subscribers (excluding switchover lines) for the Hikari Collaboration Model for NTT East and NTT West are expected to be 1,250 thousand lines and 850 thousand lines, respectively, for a total of 2,100 thousand lines; and the numbers of switchover lines for NTT East and NTT West are expected to be 1,100 thousand lines and 1,000 thousand lines, respectively, for a total of 2,100 thousand lines. | |||
(6) | Numbers of subscribers for Hikari Denwa and FLETS TV Transmission Services include wholesale services provided to service providers by NTT East and NTT West. | |||
(7) | NTT Group Major ISPs includes WAKWAK and InfoSphere, in addition to OCN and Plala. | |||
(8) | Number of Mobile Telecommunications Services (including Telecommunications Services (LTE (Xi)) and Telecommunications Services (FOMA (3G))) includes Communication Module Services. |
7
4. Operating Data
Average Monthly Revenue per Unit (ARPU)
Average monthly revenue per unit, or ARPU, is used to measure average monthly operating revenues attributable to each designated service on a per user basis. In the case of NTT Groups fixed-line business, ARPU is calculated by dividing revenue items included in the operating revenues of NTT Groups regional communications business segment, that is, fixed-line (telephone subscriber lines and INS-NET) and FLETS Hikari, by the number of active subscribers to the relevant services.
In the case of NTT Groups mobile communications business, ARPU is calculated by dividing revenue items included in operating revenues from its mobile communications business segment, such as revenues from LTE (Xi) mobile phone services, FOMA (3G) mobile phone services and docomo Hikari services, that are incurred consistently each month, by the number of active users to the relevant services. The calculation of these figures excludes revenues that are not representative of monthly average usage, such as telecommunications equipment sales, activation fees and universal service charges.
NTT believes that its ARPU figures calculated in this way provide useful information regarding the monthly average usage of its subscribers. The revenue items included in the numerators of NTT Groups ARPU figures are based on its financial results comprising its U.S. GAAP results of operations.
Notes: |
(1) | We compute the following two categories of ARPU for business conducted by each of NTT East and NTT West. | ||
a. Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines): Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and INS-NET Subscriber Lines, which are included in operating revenues from Voice Transmission Services (excluding IP Services), and revenues from FLETS ADSL and FLETS ISDN, which are included in operating revenues from IP Services. |
||||
b. FLETS Hikari ARPU: Calculated based on revenues from FLETS Hikari (including FLETS Hikari optional services), which are included in operating revenues from IP Services, revenues from monthly charges, call charges and connection device charges for Hikari Denwa, and revenues from FLETS Hikari optional services, which are included in Supplementary Business revenues. |
||||
- FLETS Hikari includes B FLETS, FLETS Hikari Next, FLETS Hikari Light, FLETS Hikari Lightplus and FLETS Hikari WiFi Access provided by NTT East, and B FLETS, FLETS Hikari Premium, FLETS Hikari Mytown, FLETS Hikari Next, FLETS Hikari Mytown Next, FLETS Hikari Light and FLETS Hikari WiFi Access provided by NTT West. In addition, FLETS Hikari also includes the Hikari Collaboration Model, the wholesale provision of services to service providers by NTT East and NTT West. |
||||
- FLETS Hikari Optional Services includes wholesale services provided to service providers by NTT East and NTT West. |
||||
(2) | Revenues from interconnection charges are excluded from the calculation of Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines) and FLETS Hikari ARPU. | |||
(3) | Numbers of active subscribers used in the ARPU calculation of NTT East and NTT West are as below. | |||
- Quarterly Results: Sum of number of active subscribers* for each month in the relevant quarter |
||||
- FY Results: Sum of number of active subscribers* for each month from April to March |
||||
- FY Forecast: Sum of the average expected active number of subscribers during the fiscal year ((number of subscribers at March 31, 2017 + number of expected subscribers at March 31, 2018)/2)x12 |
||||
*activesubscribers = (number of subscribers at end of previous month + number of subscribers at end of the current month)/2 |
||||
(4) | For purposes of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), the number of subscribers is determined based on the number of subscriptions for fixed-line services (Telephone Subscriber Lines + INS-NET Subscriber Lines). | |||
(5) | In terms of number of channels, transmission rate, and line use rate (base rate), INS-Net 1500 is in all cases roughly ten times greater than INS-Net 64. For this reason, for the purpose of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), one INS-Net 1500 subscription is calculated as ten INS-Net 64 subscriptions. | |||
(6) | For purposes of calculating FLETS Hikari ARPU, the number of subscribers is determined based on the number of FLETS Hikari subscribers, which includes subscribers to B FLETS, FLETS Hikari Next, FLETS Hikari Light, FLETS Hikari Lightplus and FLETS Hikari WiFi Access provided by NTT East, subscribers to B FLETS, FLETS Hikari Premium, FLETS Hikari Mytown, FLETS Hikari Next, FLETS Hikari Mytown Next, FLETS Hikari Light and FLETS Hikari WiFi Access provided by NTT West, and the Hikari Collaboration Model, the wholesale provision of services to service providers by NTT East and NTT West. | |||
(7) | The following is the formula we use to compute ARPU for NTT DOCOMO. | |||
a. Aggregate ARPU = Voice ARPU + Packet ARPU + docomo Hikari ARPU |
||||
b. Data ARPU= Packet ARPU + docomo Hikari ARPU |
||||
- Voice ARPU: Voice ARPU Related Revenues (basic monthly charges, voice communication charges) / No. of active users |
||||
- Packet ARPU: Packet ARPU Related Revenues (basic monthly charges, packet communication charges) / No. of active users |
||||
- docomo Hikari ARPU: docomo Hikari ARPU Related Revenues (basic monthly charges, voice communication charges) / No. of active users |
||||
(8) | Numbers of active users used in the ARPU calculation of NTT DOCOMO are as below. | |||
- Quarterly Results: Sum of number of active users* for each month in the relevant quarter |
||||
- FY Results/FY Forecast: Sum of number of active users*/expected number of active users* for each month from April to March |
||||
*activeusers = (number of users at end of previous month + number of users at end of current month)/2 |
||||
(9) | The number of users used to calculate ARPU is the total number of subscriptions, excluding the subscriptions listed below: | |||
a. Subscriptions of communication modules services, Phone Number Storage, Mail Address Storage, docomo Business Transceiver and wholesale telecommunications services and interconnecting telecommunications facilities that are provided to Mobile Virtual Network Operators (MVNOs); and |
||||
b. Data Plan subscriptions in the case where the customer contracting for such subscription in his/her name also has a subscription for Xi or FOMA services in his/her name. |
||||
Note that revenues from communication module services, Phone Number Storage, Mail Address Storage, docomo Business Transceiver and wholesale telecommunications services and interconnecting telecommunications facilities that are provided to Mobile Virtual Network Operators (MVNOs) are not included in ARPU calculations. |
8
4. Operating Data
Number of Employees
(Persons) | ||||||||||||||||||||||||||||||||||||
FY 2016 | FY 2017 | FY 2017 (E) | ||||||||||||||||||||||||||||||||||
As of
June 30 |
As of
September 30 |
As of
December 31 |
As of
March 31 |
As of
June 30 |
As of
September 30 |
As of
December 31 |
As of
March 31 |
As of
March 31 |
||||||||||||||||||||||||||||
NTT Consolidated (1) |
248,650 | 248,650 | 280,600 | 274,850 | 280,850 | 281,350 | ||||||||||||||||||||||||||||||
Regional communications business |
67,400 | 67,300 | 73,700 | 68,250 | 70,000 | 67,150 | ||||||||||||||||||||||||||||||
Long distance and international communications business |
45,150 | 44,450 | 44,050 | 43,850 | 43,850 | 45,850 | ||||||||||||||||||||||||||||||
Mobile communications business |
27,500 | 27,450 | 27,400 | 26,750 | 28,150 | 28,050 | ||||||||||||||||||||||||||||||
Data communications business |
83,200 | 84,000 | 109,950 | 111,650 | 113,950 | 115,950 | ||||||||||||||||||||||||||||||
Other business |
25,400 | 25,450 | 25,500 | 24,350 | 24,900 | 24,350 | ||||||||||||||||||||||||||||||
Core Group Companies (1) |
||||||||||||||||||||||||||||||||||||
NTT (Holding Company) |
2,800 | 2,800 | 2,750 | 2,700 | 2,750 | 2,700 | ||||||||||||||||||||||||||||||
NTT East |
5,200 | 4,950 | 4,950 | 4,850 | 5,200 | 4,800 | ||||||||||||||||||||||||||||||
NTT West |
4,600 | 4,450 | 4,450 | 4,400 | 4,550 | 4,300 | ||||||||||||||||||||||||||||||
NTT Communications |
6,550 | 6,450 | 6,450 | 6,350 | 6,400 | 6,300 | ||||||||||||||||||||||||||||||
NTT DOCOMO (Consolidated) |
27,500 | 27,450 | 27,400 | 26,750 | 28,150 | 28,050 | ||||||||||||||||||||||||||||||
NTT DATA (Consolidated) |
83,200 | 84,000 | 109,950 | 111,650 | 113,950 | 115,950 |
Note: | (1) | Starting from the nine-month period ended December 31, 2016, Number of Employees includes employees whose contracts were changed from fixed-term contracts to open-ended contracts. |
9
1 Year Nippon Telegraph and Tel... (PK) Chart |
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