Report of Foreign Issuer (6-k)

NTTYY Nippon Telegraph and Telephone Corporation (PK)

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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
	0.06	0.24%	24.56	24.31	24.81	24.61	24.495	24.50	140,969	21:00:16

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 November, 2017

Commission File Number 1-8910

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

(Translation of registrant’s 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 AND SIX MONTHS ENDED SEPTEMBER 30, 2017

On November 10, 2017, the registrant filed with the Tokyo Stock Exchange information as to the registrant’s financial condition and results of operations at and for the three and six months ended September 30, 2017. Attached hereto is a copy of the press release and supplementary data relating thereto, both dated November 10, 2017, pertaining to such financial condition and results of operations, as well as forecasts for the registrant’s 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 registrant’s 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 registrant’s 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 and six months ended September 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 registrant’s actual results to differ materially from those set forth in the attachment.

The registrant’s 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 registrant’s 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 registrant’s 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: November 13, 2017


Financial Results Release	November 10, 2017 [U.S. GAAP	]
For the Six Months Ended September 30, 2017	November 10, 2017 [U.S. GAAP	]

Name of registrant: Nippon Telegraph and Telephone Corporation (“NTT”) / URL http://www.ntt.co.jp/ir/

Code No.: 9432

Stock exchanges on which the Company’s 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: November 13, 2017

Scheduled date of dividend payments: December 11, 2017

Supplemental material on quarterly results: Yes

Presentation on quarterly results: Yes (for institutional investors and analysts)

1.	Consolidated Financial Results for the Six Months Ended September 30, 2017 (April 1, 2017 – September 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
Six months ended September 30, 2017		5,664,795	2.5	%		975,183	5.3	%		982,025	9.5	%		527,505	10.8	%
Six months ended September 30, 2016		5,524,328	(1.2	)%		926,484	26.3	%		896,905	25.0	%		476,096	26.2	%


	Basic Earnings per Share Attributable to NTT			Diluted Earnings per Share Attributable to NTT
Six months ended September 30, 2017		262.84	(yen)		—	(yen)
Six months ended September 30, 2016		230.90	(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
September 30, 2017		21,498,152		12,001,395		9,441,681		43.9	%		4,705.67	(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		—		75.00	(yen)		—		—			—
Year Ending March 31, 2018 (Forecasts)		—		—			—		75.00	(yen)		150.00	(yen)

Note: Change in dividend forecasts during the six months ended September 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	%		1,695,000	10.9	%		880,000	10.0	%		440.00	(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 six months ended September 30, 2017: Yes

– 1 –

*Notes:


(1)	Change in significant consolidated subsidiaries during the six months ended September 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

	i.	Change due to revision of accounting standards and other regulations: Yes

	ii.	Other change: Yes
		(For further details, please see “Summary Information (notes)” on page 3.)

(4)	Number of shares outstanding (common stock)

	i.	Number of shares outstanding (including treasury stock):

			September 30, 2017 : 2,096,394,470 shares

			March 31, 2017 : 2,096,394,470 shares

	ii.	Number of shares of treasury stock:

			September 30, 2017 : 89,947,292 shares

			March 31, 2017 : 81,026,959 shares

	iii.	Weighted average number of shares outstanding:

			For the six months ended September 30, 2017: 2,006,905,710 shares

			For the six months ended September 30, 2016: 2,061,934,989 shares

*	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 10.

On Friday, November 10, 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.

The forecast for “Basic Earnings per Share Attributable to NTT” for the fiscal year ending March 31, 2018 is based on the assumption that NTT will repurchase 30 million shares or 150 billion yen of shares from September 26, 2017 through March 31, 2018, as resolved at the board of directors’ meeting held on September 25, 2017, authorizing repurchases up to these amounts and retain these as treasury stock.

For further details on the financial results forecasts, please also see “Financial Results for the Six Months Ended September 30, 2017,” which is disclosed on TDnet on the same day as this financial results release.

– 2 –

1. Summary Information (notes)

(1)	Change in significant consolidated subsidiaries during the six months ended September 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.

Simplifying the Test for Goodwill Impairment

On January 26, 2017, the FASB issued ASU 2017-04 “Simplifying the Test for Goodwill Impairment,” which replaces the two-step goodwill impairment test with the one-step goodwill impairment test. The amendments in this update require that an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value.

The adoption of ASU 2017-04 would be permitted for goodwill impairment tests with measurement dates after January 1, 2017. NTT Group adopted this ASU for goodwill impairment test with measurement date on July 1, 2017.

Change in Fiscal Year End of Certain Subsidiaries

As of April 1, 2017, certain of NTT’s 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 NTT’s fiscal year end in NTT’s 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 six months ended September 30, 2016 or the year ended March 31, 2017. As a result of this change, NTT’s retained earnings have increased by ¥964 million, and its accumulated other comprehensive income (loss) and noncontrolling interests have decreased by ¥3,351 million and ¥2,012 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			September 30, 2017			Increase (Decrease)
ASSETS
Current assets:
Cash and cash equivalents	¥	925,213		¥	840,663		¥	(84,550	)
Short-term investments		63,844			144,206			80,362
Notes and accounts receivable, trade		2,699,708			2,739,030			39,322
Allowance for doubtful accounts		(48,626	)		(48,729	)		(103	)
Accounts receivable, other		505,145			567,027			61,882
Inventories		365,379			386,862			21,483
Prepaid expenses and other current assets		573,170			600,288			27,118
Deferred income taxes		228,590			—			(228,590	)

Total current assets		5,312,423			5,229,347			(83,076	)

Property, plant and equipment:
Telecommunications equipment		11,046,115			11,014,642			(31,473	)
Telecommunications service lines		16,064,732			16,145,869			81,137
Buildings and structures		6,147,869			6,222,954			75,085
Machinery, vessels and tools		2,032,389			2,117,492			85,103
Land		1,292,685			1,304,617			11,932
Construction in progress		421,819			459,247			37,428

		37,005,609			37,264,821			259,212
Accumulated depreciation		(27,286,588	)		(27,461,554	)		(174,966	)

Net property, plant and equipment		9,719,021			9,803,267			84,246


Investments and other assets:
Investments in affiliated companies		484,596			496,445			11,849
Marketable securities and other investments		495,290			508,680			13,390
Goodwill		1,314,645			1,366,673			52,028
Software		1,209,485			1,201,543			(7,942	)
Other intangible assets		453,918			416,509			(37,409	)
Other assets		1,492,076			1,505,899			13,823
Deferred income taxes		768,871			969,789			200,918

Total investments and other assets		6,218,881			6,465,538			246,657

Total assets	¥	21,250,325		¥	21,498,152		¥	247,827

– 4 –


	Millions of yen
	March 31, 2017			September 30, 2017			Increase (Decrease)
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	227,207		¥	268,876		¥	41,669
Current portion of long-term debt		681,904			710,206			28,302
Accounts payable, trade		1,612,996			1,239,946			(373,050	)
Current portion of obligations under capital leases		14,430			15,866			1,436
Accrued payroll		443,308			442,953			(355	)
Accrued taxes on income		239,755			247,954			8,199
Accrued consumption tax		75,083			92,430			17,347
Advances received		324,342			360,952			36,610
Other		512,368			483,083			(29,285	)

Total current liabilities		4,131,393			3,862,266			(269,127	)

Long-term liabilities:
Long-term debt (excluding current portion)		3,168,478			3,181,371			12,893
Obligations under capital leases (excluding current portion)		25,568			22,730			(2,838	)
Liability for employees’ retirement benefits		1,599,381			1,624,134			24,753
Accrued liabilities for point programs		103,047			94,136			(8,911	)
Deferred income taxes		166,751			150,380			(16,371	)
Other		497,132			506,945			9,813

Total long-term liabilities		5,560,357			5,579,696			19,339

Redeemable noncontrolling interests		50,819			54,795			3,976

Equity:
NTT shareholders’ equity
Common stock, no par value		937,950			937,950			—
Additional paid-in capital		2,862,035			2,855,486			(6,549	)
Retained earnings		5,626,155			6,033,702			407,547
Accumulated other comprehensive income (loss)		1,562			33,142			31,580
Treasury stock, at cost		(375,223	)		(418,599	)		(43,376	)

Total NTT shareholders’ equity		9,052,479			9,441,681			389,202

Noncontrolling interests		2,455,277			2,559,714			104,437

Total equity		11,507,756			12,001,395			493,639

Total liabilities and equity	¥	21,250,325		¥	21,498,152		¥	247,827

– 5 –

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

SIX-MONTH PERIOD ENDED SEPTEMBER 30

Consolidated Statements of Income


	Millions of yen
	2016			2017			Increase (Decrease)
Operating revenues:
Fixed voice related services	¥	619,316		¥	571,039		¥	(48,277	)
Mobile voice related services		429,604			467,669			38,065
IP / packet communications services		1,901,368			1,908,862			7,494
Sale of telecommunications equipment		423,074			348,515			(74,559	)
System integration		1,397,071			1,599,833			202,762
Other		753,895			768,877			14,982

		5,524,328			5,664,795			140,467

Operating expenses:
Cost of services (excluding items shown separately below)		1,153,397			1,120,488			(32,909	)
Cost of equipment sold (excluding items shown separately below)		406,441			379,912			(26,529	)
Cost of system integration (excluding items shown separately below)		986,249			1,141,083			154,834
Depreciation and amortization		716,473			659,938			(56,535	)
Impairment losses
Goodwill		4,471			—			(4,471	)
Other		10,197			557			(9,640	)
Selling, general and administrative expenses		1,320,616			1,387,634			67,018

		4,597,844			4,689,612			91,768

Operating income		926,484			975,183			48,699

Other income (expenses):
Interest and amortization of bond discounts and issue costs		(19,780	)		(16,573	)		3,207
Interest income		8,621			8,962			341
Other, net		(18,420	)		14,453			32,873

		(29,579	)		6,842			36,421

I ncome before income taxes and equity in earnings (losses) of affiliated companies		896,905			982,025			85,120

Income tax expense (benefit):
Current		246,678			318,773			72,095
Deferred		34,766			(9,360	)		(44,126	)

		281,444			309,413			27,969

Income before equity in earnings (losses) of affiliated companies		615,461			672,612			57,151

Equity in earnings (losses) of affiliated companies		10,065			6,755			(3,310	)

Net income		625,526			679,367			53,841

Less – Net income attributable to noncontrolling interests		149,430			151,862			2,432

Net income attributable to NTT	¥	476,096		¥	527,505		¥	51,409


Per share of common stock:
Weighted average number of shares outstanding (Shares)		2,061,934,989			2,006,905,710
Net income attributable to NTT (Yen)	¥	230.90		¥	262.84

– 6 –

Consolidated Statements of Comprehensive Income


	Millions of yen
	2016			2017		Increase (Decrease)
Net income	¥	625,526		¥	679,367	¥	53,841
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities		(18,302	)		13,107		31,409
Unrealized gain (loss) on derivative instruments		(2,009	)		966		2,975
Foreign currency translation adjustments		(178,873	)		34,386		213,259
Pension liability adjustments		5,812			3,681		(2,131	)

Total other comprehensive income (loss)		(193,372	)		52,140		245,512

Total comprehensive income (loss)		432,154			731,507		299,353

Less – Comprehensive income attributable to noncontrolling interests		112,965			169,071		56,106

Total comprehensive income (loss) attributable to NTT	¥	319,189		¥	562,436	¥	243,247

– 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

Cash dividends declared


Resolution		The Board of Directors’ meeting on November 10, 2017
Class of shares		Common stock
Source of dividends		Retained earnings
Total cash dividends declared		¥150,484 million
Cash dividends per share		¥75
Record date		September 30, 2017
Date of payment		December 11, 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.

On September 25, 2017, the Board of Directors resolved that NTT may acquire up to 30 million shares of its outstanding common stock for an amount in total not exceeding ¥150 billion from September 26, 2017 through March 31, 2018. NTT repurchased 11,400,000 shares of its common stock for a total purchase price of ¥60,294 million in October 2017.

(5) Subsequent Events

Tata Teleservices Limited

Tata Teleservices Limited (“TTSL”) is a telecommunication operator in India and a privately held company.

As of September 30 2017, NTT Group held approximately 21.6% of the outstanding common shares of TTSL and accounted for the investment under the equity method.

Under the shareholders agreement (the “Agreement”) entered into among TTSL, Tata Sons Limited (“Tata Sons”) and NTT DOCOMO when NTT DOCOMO entered into a business alliance with TTSL in March 2009, NTT DOCOMO shall have certain shareholder rights, including the right to require Tata Sons to find a suitable buyer for NTT DOCOMO’s entire stake (1,248,974,378 shares, or approximately 26.5% of outstanding shares) in TTSL for 50% of the NTT DOCOMO’s acquisition price, which amounts to 72.5 billion Indian rupees (or ¥127.6 billion ^*1 ), or at fair value, whichever is higher, in the event that TTSL fails to achieve certain specified performance targets by March 31, 2014. The right became exercisable on May 30, 2014, and NTT DOCOMO exercised the right on July 7, 2014.

– 8 –

The obligation of Tata Sons under the Agreement was not fulfilled, although NTT DOCOMO repeatedly held discussions with Tata Sons regarding the sale of NTT DOCOMO’s entire stake in TTSL pursuant to the Agreement. Accordingly, NTT DOCOMO submitted a request for arbitration to the London Court of International Arbitration (“LCIA”) on January 3, 2015.

NTT DOCOMO received a binding arbitration award from the LCIA on June 23, 2016. The award ordered that Tata Sons pay damages to NTT DOCOMO in the amount of approximately $1,172 million (or ¥132.6 billion ^*2 ) for Tata Sons’ breach of the Agreement, upon NTT DOCOMO’s tender of its entire stake in TTSL to Tata Sons or its designee.

On July 8, 2016, NTT DOCOMO submitted an application to the High Court in India (“the Court”) requesting enforcement of the LCIA Award in India. On February 25, 2017, NTT DOCOMO and Tata Sons submitted a joint application to the Court requesting that the Court declare the LCIA Award enforceable in India. On April 28, 2017, the Court delivered a court decision approving the joint application.

On October 31, 2017, NTT DOCOMO received ¥144.9 billion ^*3 from Tata Sons as payment of the arbitration award amount in accordance with the Court decision regarding NTT DOCOMO’s stake in TTSL. As a result of this transaction, NTT Group expects to include the award amount of ¥144.9 billion in other income on the consolidated financial statements for the three month period ending December 31, 2017.

Concurrent with the receipt of the above award amount, all shares in TTSL held by NTT DOCOMO have been transferred to Tata Sons and companies designated by Tata Sons. Upon the transfer of NTT DOCOMO’s shares in TTSL, NTT Group no longer accounts for investments in TTSL under the equity method. As a result, NTT Group expects to include a loss on transfer of investments in affiliates of ¥29.8 billion, equal to the reclassification adjustments of foreign currency translation adjustments, in other expense on its consolidated financial statements for the three month period ending December 31, 2017.

*1 1 rupee = ¥1.76 as of October 31, 2017

*2 $1 = ¥113.16 as of October 31, 2017

*3 The amount received included interest earned and other costs awarded.

NTT’s repurchase of its common stock

For information about this event, see Note 4.

NTT DOCOMO’s resolution to repurchase its common stock

On October 26, 2017, the Board of Directors of NTT DOCOMO resolved that NTT DOCOMO may acquire up to 120 million shares of its outstanding common stock for an amount in total not exceeding ¥300,000 million from October 27, 2017 through March 31, 2018.

– 9 –

[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 NTT’s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.

– 10 –

LOGO

November 10, 2017
Financial Results for the Six Months Ended September 30, 2017

LOGO

Table of Contents
Highlights    Topics
Contributing Factors by Segment    Financial Results Forecast
Progress toward Medium-Term Financial Targets    Strengthen NTT’s Global Business    (Reference) Major B2B2X Initiatives    (Reference) “Tokyo 2020 Medal Project: Towards an Innovative Future for All”    Appendix
Financial Results for the Six Months Ended September 30, 2017
Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
2

LOGO

Highlights
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    ¥5,664.8 billion (increase of ¥140.5 billion [2.5%] year-on-year)
Operating Income    ¥975.2 billion (increase of    ¥48.7 billion [5.3%] year-on-year) Net Income *1    ¥527.5 billion (increase of    ¥51.4 billion [10.8%] year-on-year)
Overseas Sales    $9.33 billion (increase of    $1.35 billion [16.9%] year-on-year)
Cross-Selling Order Volume    $0.28 billion
Overseas Operating Income *2                $0.50 billion (increase of    $0.16 billion [47.1%] year-on-year)
*1 Net income represents net income attributable to NTT, excluding noncontrolling interests.
*2 Operating Income excludes temporary expenses, such as M&A-related depreciation costs of intangible fixed assets.
Financial Results for the Six Months Ended September 30, 2017
Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
3

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Topics
Increased Profitability of Network Services
Expansion of NTT’s User Base
• Mobile Subscriptions: 75.36 million mobile subscriptions (net increase of 0.48 million)
(Included in the above) Kake-hodai & Pake-aeru: 39.62 million subscriptions (net increase of 2.55 million)
• FTTH Subscriptions: 20.39 million subscribers (net increase of 0.33 million)
(Included in the above) Hikari Collaboration: 10.15 million (net increase of 1.40 million)
Growing number of Wi-Fi area owners*: 642 (net increase of 85)
* Total number of large-scale corporate or local government customers. Excludes small-scale restaurants, etc.
Financial Results for the Six Months Ended September 30, 2017
Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
4

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Topics
Promotion of the B2B2X Model
Expand collaboration efforts with corporations and local governments in various fields, such as sports, transportation and manufacturing in an effort towards creating new value and solving social issues and challenges
Shareholder returns
Share buybacks (acquired in October 2017): ¥60.3 billion
* Aggregate amount: Up to ¥150 billion; Total number of shares: Up to 30 million shares; Period: September 26, 2017 to March 31, 2018
Aggregate amount of FY2017 share buybacks: ¥103.5 billion as of the end of October 2017
Progress of
“Tokyo 2020 Medal Project: Towards an Innovative Future for All”
Number of used mobile phones and other devices collected (as of the end of September 2017): approximately 1.54 million devices Expected to reach over 2 million devices through November 2017
Financial Results for the Six Months Ended September 30, 2017
Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
5

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Contributing Factors by Segment
Increase in Operating Revenues and Operating Income in the Long Distance and International Communications business and the Data Communications business segment.
Operating Revenues (Year-on-year: +140.5) (Billions of yen)
40.1
Long distance and 182.4 Other Regional international Mobile business * communications communications communications 5,664.8 business business business
39.8 Data 5,524.3 12.1 communications FY2017 4-9 26.0 business
1,580.6 1,064.8 2,300.1 944.4
FY2016 4-9 FY2017 4-9
Operating Income (Year-on-year: +48.7)
Long distance and international Mobile Data
Other Regional communications communications communications business * communications business business business business 36.5
28.2 12.9
20.9 23.1 975.2
926.5
FY2017 4-9
253.2 70.4 547.3 59.0
FY2016 4-9 FY2017 4-9
*Includes adjustments such as elimination
Financial Results for the Six Months Ended September 30, 2017
Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
6

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Financial Results Forecast
Operating Revenues and Operating Income remain unchanged from the Initial Forecast.
Plan for Consolidated Revenues and Income
Initial Forecast                 Financial Results
(announced on May 15, 2017 Forecast
                 (announced on November 10, 2017)
Operating Revenues     ¥11,750.0 billion                 ¥11,750.0 billion
Operating Income      ¥1,590.0 billion                 ¥1,590.0 billion
                 ¥880.0 billion(*1)
Net Income(*4)         ¥830.0 billion                 ¥830.0 billion
                 ¥440(*2)
EPS                     ¥414                 ¥416(*3)
*1 Includes the effects of the arbitration award received from Tata Sons Limited
*2 Includes the effects of the arbitration award received from Tata Sons Limited as well as share buybacks announced on September 25, 2017
*3 Includes the effects of share buybacks announced on September 25, 2017
*4 Net income represents net income attributable to NTT, excluding noncontrolling interests.
Financial Results for the Six Months Ended September 30, 2017
Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
7

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(Reference) FY2017 Forecast    Summary by Segment
Operating Revenues (Year-on-year: +359.0) (Billions of yen)
Data communications Other Mobile business business* Long distance and communications 80.3 Regional international business 251.3 communications communications business business 165.4 11,750.0
78.2 100.7
11,391.0
FY2017E
3,230.0    2,230.0    4,750.0    1,970.0
FY2016 FY2017E
Operating Income (Year-on-year: +50.2)
Long distance and Data
international Mobile communications Other
Regional communications communications business business*
communications business business
business 22.1 25.0
79.2 3.4
29.5 1,590.0
1,539.8
FY2017E
330.0    120.0    955.0    130.0
FY2016 FY2017E
*Includes adjustments such as elimination
Financial Results for the Six Months Ended September 30, 2017
Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
8

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Progress toward Financial Targets
FY2017.2Q FY2017 Medium Financial Results Term Targets
Streamlining Capital Investment (Domestic Network Business*1) [compared to FY2014]
Cost Reductions*2
(in fixed-line/mobile access networks)
[compared to FY2014] Overseas Sales/Operating Income*3
¥110.1 billion At least ¥200 billion ¥713.0 billion At least ¥800 billion $9.3 billion/$0.5 billion $22 billion/$1.5 billion [FY2017 Forecast] $19.6 billion/$1.2 billion EPS Growth [FY2017 Forecast] ¥440*4 ¥416*5 At least ¥400 *1 Excludes NTT Com’s data centers and certain other assets.
*2 Does not reflect the impact of the change in depreciation method.
*3 Operating Income excludes temporary expenses, such as M&A-related depreciation costs of intangible fixed assets.
*4 Includes the effects of the arbitration award received from Tata Sons Limited as well as share buybacks announced on September 25, 2017.
*5 Includes the effects of share buybacks announced on September 25, 2017.
Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation 9

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Strengthen NTT’s Global Business
(Bringing together cloud IaaS capabilities)
Strengthen competitiveness by bringing together cloud IaaS capabilities and development capabilities of NTT Communications and Dimension Data. Establish a wholesale company of cloud IaaS under Dimension Data to prepare for transfer of assets and personnel, and then transfer the company to NTT
Communications around March 2018.
NTT Communications to handle development and operation of cloud IaaS and leverage Go-to-Market capabilities of NTT Communications, Dimension Data and other NTT Group companies.
NTT Holding Company
Wholesale company
Dimension Data Cloud
Wholesale Services, Inc.
Service
development
Go-to-
Market and operation
assets Cloud
Clients
Go-to-Market
Wholesale
Service Development and Operation
Financial Results for the Six Months Ended September 30, 2017
Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
10

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Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Demonstrated an advanced sports-viewing experience by tracking and transmitting location data of athletes in real time
Enhanced racing drivers’ performance by measuring their biological information
during races
Enhanced attractiveness of cities through the use of AI on Big Data consisting of the flow of people and weather, among others
Optimized vessel operations by applying edge computing to IoT in vessel shipping
Provided assistance for an exhibition utilizing the Human Support Robot (HSR)
with corevo®
Upgraded the information universal design of airports by utilizing the NTT Group AI technology “corevo®”
Demonstrateda pleasant flight experience by measuring babies’ heart rates
and enabling the visualization of changes in their conditions
Reproduced techniques of a skilled worker through corevo® in order to create
a sophisticated next-generation industry complex
Contributed to the further development of Sapporo by carrying out automated driving on public roads in central city areas
Initiated consortium formation for the network and computing infrastructure of
automotive Big Data
Auto
Enter-
tainment
Produced a new Kabuki experience by utilizing NTT’s Immersive Telepresence Technology called “Kirari!®”
Sports
Enabled highly immersive public viewing by utilizing the live video transferring service
Suita
City
Provided an advanced sports-viewing experience through Smart Stadium that utilizes high density Wi-Fi
(Reference)
Major B2B2X Initiatives in FY2017
Sports
Sports
Sports
Auto
Apr.
Apr.
May
June
July
Aug.
Aug.
Sept.
Sept.
Sept.
Sept.
Oct.
Oct.
Oct.
Cities
Aviation
Transport
Robots
Factories
Aviation
Manu-
facturing
Began the commercial provision of the FIELD system through the utilization of
edge computing
GAMBA
(C)1992 K.A.FC
TOYOTA
intel
DENSO
ERICSSON
TOYOTA
INFOTECHNOLOGY
CENTER 11

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Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
0.5
1
1.5
2
2.5
3
3.5
4
(Million devices)
Apr.
May
June
July
Aug.
Sep.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Launch of the project
Promotion and collection at a coexistence-style event: “Japan Walk”
November: expected to reach over 2 million devices
Cooperation from Tokyo 2020 Partners to collect devices:
Japan Post, Tokyo Gas, SMBC, among others
Promotion and collection at “Fukuoka Japan Market” hosted by the All Japan Business Committee (a business council for the 2020 Olympic and Paralympic Games)
<Number of collected devices>
April to Sept: 1.54 million
(in the 2nd quarter [July to Sept]: 0.8 million)
August: above 1million devices
(Reference)
This project makes Tokyo 2020 a first in the history of the Olympics and Paralympics by involving citizens in the collection of consumer electronics such as used mobile phones for the purpose of manufacturing all 5,000 medals from the extracted metals. Sponsor: The Tokyo 2020 Organising Committee; Business partners: NTT DOCOMO, the Japan Environmental Sanitation Center, the Ministry of Environment, and Tokyo Metropolitan Government 12

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Appendix

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Progress of Broadband Services

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Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
2016.62016.92016.122017.32017.62017.92018.3E4-67-910-121-34-67-94-926118319915024192333794800Opened connections7866496727508516271,4782,8572,900(34)(32)(32)(36)(38)(32)(70)(134)(128)779311110410462165385280FY2017EFLET’S HikariFLET’S ADSLHikari DenwaFY2016FY2016FY201719,52019,70419,90320,05320,29420,3861,01998795591988184920,54020,69120,85820,97221,17521,23517,45117,54517,65517,75917,86217,92412,00014,00016,00018,00020,00022,00020,85379121,64418,039
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]
*1 Number of FLET’S Hikari (including Hikari Collaboration Model) subscribers includes B FLET’S, FLET’S Hikari Next, FLET’S Hikari Light, FLET’S Hikari Lightplus, and FLET’S Hikari WiFi Access provided by NTT East, B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown, FLET’S Hikari Next, FLET’S Hikari Mytown Next, FLET’S Hikari Light and FLET’S 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 “Hikari Collaboration 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)
FLET’S ADSL
Hikari Denwa
FLET’S Hikari (including Hikari Collaboration Model)
*1
*3
*4 *5
~
~
[10,145] 13

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Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
2016.62016.92016.122017.32017.62017.92018.3E4-67-910-121-34-67-94-96501,3306451,2922342474813,9161,300FY2016FY2016FY2017ELTE(Xi)+FOMAFY201726,20050,00076,20031,72131,66230,91730,33629,45528,45339,89341,28142,67144,54445,65946,90871,61472,94373,58874,88075,11475,361020,00040,00060,00080,000
Number of Subscribers
Changes from the Preceding Quarter
FOMA
LTE Xi
Number of Subscribers for Mobile Broadband Services
(Thousands)
(Thousands)
* Number of subscribers for Mobile Broadband Services includes Communications Module Service subscribers
*
14

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Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
2016.62016.92016.122017.32017.62017.92018.3E3,047 3,041 3,032 3,023 3,021 3,018 1,445 1,464 1,489 1,521 1,551 1,570 4,492 4,505 4,521 4,544 4,571 4,588 01,0002,0003,0004,0005,0003,030 1,602 4,632
FLET’S TV Transmission Services
Hikari TV
Number of Subscribers for Video Services
Number of Subscribers
(Thousands)
*
* Number of subscribers to FLET’S TV Transmission Services includes wholesale services provided to service providers by NTT East and NTT West.
15

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Financial Information

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Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
17.4
54.3
103.1
60.4
15.0
128.2
7.5
10.2
4,597.8
4,689.6
5,524.3
5,664.8
Details of Consolidated Statement of Income
Operating Revenues
(Year-on-year: +140.5)
Voice related services revenues
(Billions of yen)
Operating Expenses
(Year-on-year: +91.8)
SI revenues and sale of telecommunications equipment
IP/packet communications services revenues
Other revenues
Fixed voice: (48.3)
Mobile voice: +38.1
Systems Integration: +202.8
Telecommunications
equipment: (74.6)
FY2016 4-9
FY2016 4-9
FY2017 4-9
FY2017 4-9
Depreciation expenses and loss on disposal of assets
Other expenses
Personnel expenses
Expenses for purchase of goods and services and other expenses
16

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Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
March 31, 2017
September 30, 2017
21,498.2
[+247.8]
Assets
Equity
12,001.4
[+493.6]
9,442.0
[(249.8)]
21,498.2 [+247.8]
Liabilities
Treasury Stock
(418.6)
[(43.4)]
Retained earnings
6,033.7
[+407.5]
Details of Consolidated Balance Sheet
21,250.3
Assets
Equity
11,507.8
9,691.8
21,250.3
Liabilities
Treasury Stock
(375.2)
Other
50.8
Retained earnings
5,626.2
(Billions of yen)
Other
54.8 [+4.0] 17

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Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation 1,390.4 (876.5)513.9 (562.4)1,365.8 (1,074.7)291.0 (118.1)(2,000)(1,000)01,0002,000 Details of Consolidated Cash Flows Billions of yen Cash flows from operating activities (A) Cash flows from investing activities (B) Cash flows from financing activities FCF (A) + (B) Increase/Decrease from the same period of the previous fiscal year FY2016 4-9 FY2017 4-9 (24.7) Increase/Decrease in accounts receivable [(22.5)] (198.2) Acquisitions/Sales of property, plant, equipment and intangibles [(72.6)] Increase/Decrease in current and non-current investments [(48.3)] (222.9) +444.3 Acquisitions/Sales of treasury stock [+224.1] Acquisitions of shares of subsidiaries [+105.0] * The effect of the last day of the six-month period ended September 30, 2017 having been a non-business day, resulting in the increase in accounts receivable because of the due date of a portion of accounts receivable being, instead of the last day of the period, the first business day of the following month. Cash flows from operating activities and the FCF amount including the effect were 1,112.9 billion yen and 38.2 billion yen, respectively. *Effect of non-business day (252.9) (252.9) 18

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Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation
Details of Capital Investment
Capital Investment
1,687.2
1,700.0
1,700.0
FY2017 4-9
FY2015 4-9
FY2016 4-9
FY2017 E
FY2015
FY2016
Billions of yen
219.5246.1267.7102.794.6115.4121.4103.0103.055.057.440.558.267.6102.688.897.1129.1645.6665.8758.3OtherNTT DATA (Consolidated)NTT CommunicationsNTT WestNTT EastNTT DOCOMO (Consolidated) 19

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Financial Results for the Six Months Ended September 30, 2017 Copyright (c) 2017 Nippon Telegraph and Telephone Corporation Shareholder Returns Share Buybacks Dividends per Share Pay-out ratio FY2009 FY2010 FY2011 FY2012 FY2013 FY2007 FY2008 FY2015 FY2014 FY2004 FY2005 FY2006 FY2003 539.4 381.7 150.0 406.5 338.1 200.0 94.4 374.1 FY2011 FY2012 FY2013 FY2017E FY2007 FY2008 FY2015 FY2014 93.6 86.2 100.0 366.5 FY2002 FY2003 FY2004 FY2005 120.0 FY1999 FY2016 FY2016 FY2017E (Billions of yen) (Yen) Note: Dividends have been adjusted to reflect the two-for-one stock split carried out on July 1, 2015 110 120 25 80 85 90 70 60 60 45 55 40 30 30 150 12.3% 13.0% 17.1% 23.0% 19.5% 27.5% 32.3% 31.2% 38.2% 37.2% 33.4% 38.0% 31.4% 30.7% 34.1% 150.0* (Max) 43.2 60.3 *On September 25, 2017 NTT resolved to acquire up to ¥150 billion in share buybacks. Period of buybacks: September 26, 2017 through March 31, 2018 20

November 10, 2017

FOR IMMEDIATE RELEASE

Financial Statements for the Six Months Ended September 30, 2017

The financial results of Nippon Telegraph and Telephone East Corporation (NTT East) for the six months ended September 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)

4.	Non-Consolidated Comparative Statements of Cash Flows

5.	Revised Forecasts for the Fiscal Year Ending March 31, 2018

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			September 30, 2017			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		339,631			337,260			(2,370	)
Antenna facilities		3,604			3,527			(77	)
Terminal equipment		22,947			21,620			(1,327	)
Local line facilities		866,722			873,703			6,980
Long-distance line facilities		2,843			2,818			(24	)
Engineering facilities		588,683			582,845			(5,838	)
Submarine line facilities		732			661			(70	)
Buildings		409,835			407,256			(2,578	)
Construction in progress		19,988			21,034			1,045
Other		266,121			264,427			(1,693	)
Total property, plant and equipment		2,521,110			2,515,156			(5,953	)
Intangible fixed assets		84,120			81,675			(2,444	)
Total fixed assets - telecommunications businesses		2,605,230			2,596,831			(8,398	)
Investments and other assets
Other investments and assets		199,112			202,944			3,831
Allowance for doubtful accounts		(773	)		(760	)		13
Total investments and other assets		198,338			202,184			3,845
Total fixed assets		2,803,569			2,799,015			(4,553	)
Current assets:
Cash and bank deposits		5,605			17,508			11,902
Notes receivable		—			38			38
Accounts receivable, trade		230,736			230,264			(471	)
Supplies		26,005			23,268			(2,736	)
Other current assets		435,502			256,721			(178,780	)
Allowance for doubtful accounts		(327	)		(287	)		40
Total current assets		697,521			527,515			(170,006	)

TOTAL ASSETS		3,501,091			3,326,531			(174,560	)

– 1 –


	(Millions of yen)
	March 31, 2017		September 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		253,593		6,227
Reserve for point services		4,145		4,433		288
Reserve for unused telephone cards		8,460		8,671		211
Allowance for environmental measures		3,637		3,637		—
Asset retirement obligations		902		901		(1	)
Other long-term liabilities		36,166		43,744		7,577
Total long-term liabilities		525,898		540,202		14,304
Current liabilities:
Current portion of long-term borrowings from parent company		140,615		100,400		(40,215	)
Accounts payable, trade		89,029		44,075		(44,953	)
Accrued taxes on income		14,186	*	13,499		(687	)
Allowance for environmental measures		2,285		688		(1,597	)
Asset retirement obligations		1		—		(1	)
Other current liabilities		442,617		384,587		(58,030	)
Total current liabilities		688,735		543,250		(145,485	)

TOTAL LIABILITIES		1,214,633		1,083,453		(131,180	)

NET ASSETS
Shareholders’ equity:
Common stock		335,000		335,000		—
Capital surplus		1,499,726		1,499,726		—
Earned surplus		447,459		404,183		(43,275	)
Total shareholders’ equity		2,282,186		2,238,910		(43,275	)
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		4,271		4,167		(104	)
Total unrealized gains (losses), translation adjustments, and others		4,271		4,167		(104	)

TOTAL NET ASSETS		2,286,457		2,243,077		(43,379	)

TOTAL LIABILITIES AND NET ASSETS		3,501,091		3,326,531		(174,560	)

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)
	Six months ended September 30, 2016		Six months ended September 30, 2017		Increase (Decrease)			Year ended March 31, 2017
Telecommunications businesses:
Operating revenues		766,449		755,169		(11,279	)		1,534,745
Operating expenses		650,977		623,437		(27,539	)		1,367,603
Operating income from telecommunications businesses		115,471		131,731		16,259			167,142
Supplementary businesses:
Operating revenues		57,056		57,562		505			137,497
Operating expenses		48,736		47,521		(1,214	)		115,534
Operating income from supplementary businesses		8,319		10,040		1,720			21,962
Operating income		123,791		141,771		17,980			189,104
Non-operating revenues:
Interest income		10		7		(3	)		26
Dividends received		3,171		6,898		3,727			3,226
Gains on sales of fixed assets		13,571		782		(12,788	)		14,363
Miscellaneous income		1,188		1,305		117			2,647
Total non-operating revenues		17,941		8,993		(8,948	)		20,263
Non-operating expenses:
Interest expenses		2,357		1,797		(560	)		4,669
Miscellaneous expenses		174		43		(130	)		260
Total non-operating expenses		2,532		1,841		(690	)		4,930
Recurring profit		139,200		148,923		9,722			204,438
Income before income taxes		139,200		148,923		9,722			204,438
Income taxes	*	39,214	*	42,540		3,326			54,774
Net income		99,986		106,382		6,396			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)
	Six months ended September 30, 2016		Six months ended September 30, 2017		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2017
Voice transmission services revenues (excluding IP services revenues)		201,403		187,036		(14,367	)		(7.1	)		396,519
Monthly charge revenues*		152,177		142,034		(10,143	)		(6.7	)		299,992
Call rates revenues*		13,613		11,763		(1,850	)		(13.6	)		26,272
Interconnection call revenues*		23,378		21,708		(1,669	)		(7.1	)		45,606
IP services revenues		425,116		427,186		2,070			0.5			850,388
Leased circuit services revenues (excluding IP services revenues)		47,677		46,465		(1,212	)		(2.5	)		93,307
Telegram services revenues		5,561		5,198		(362	)		(6.5	)		11,422
Other telecommunications services revenues		86,690		89,283		2,592			3.0			183,107

Telecommunications total revenues		766,449		755,169		(11,279	)		(1.5	)		1,534,745

Supplementary business total revenues		57,056		57,562		505			0.9			137,497

Total operating revenues		823,505		812,731		(10,774	)		(1.3	)		1,672,243

*	Partial listing only

– 4 –

4. Non-Consolidated Comparative Statements of Cash Flows

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2016			Six months ended September 30, 2017			Increase (Decrease)			Year ended March 31, 2017
Cash flows from operating activities:
Income before income taxes		139,200			148,923			9,722			204,438
Depreciation and amortization		144,939			117,837			(27,101	)		295,200
Loss on disposal of property, plant and equipment		6,056			4,489			(1,567	)		21,416
Increase (decrease) in liability for employees’ retirement benefits		8,074			6,227			(1,847	)		11,446
(Increase) decrease in accounts receivable		16,569			19,433			2,863			(8,552	)
(Increase) decrease in inventories		949			1,871			922			252
Increase (decrease) in accounts payable and accrued expenses		(74,751	)		(64,151	)		10,600			(5,419	)
Increase (decrease) in accrued consumption tax		281			5,331			5,049			(5,229	)
Other		(27,619	)		(22,744	)		4,874			8,147

Sub-total		213,700			217,217			3,517			521,702
Interest and dividends received		3,179			6,904			3,725			3,252
Interest paid		(2,366	)		(1,802	)		563			(4,705	)
Income taxes received (paid)		(40,027	)		(60,447	)		(20,420	)		(47,742	)

Net cash provided by (used in) operating activities		174,486			161,871			(12,615	)		472,506
Cash flows from investing activities:
Payments for property, plant and equipment		(139,013	)		(152,499	)		(13,486	)		(274,177	)
Proceeds from sale of property, plant and equipment		14,530			1,075			(13,455	)		15,821
Proceeds from sale of investment securities		632			206			(426	)		847
Other		93			(215	)		(308	)		(86	)

Net cash provided by (used in) investing activities		(123,756	)		(151,434	)		(27,677	)		(257,594	)
Cash flows from financing activities:
Payments for settlement of long-term debt		(2,560	)		(40,215	)		(37,655	)		(65,120	)
Payments for settlement of lease obligations		(292	)		(262	)		29			(544	)
Dividends paid		(59,395	)		(149,657	)		(90,262	)		(59,395	)

Net cash provided by (used in) financing activities		(62,248	)		(190,135	)		(127,887	)		(125,059	)
Net increase (decrease) in cash and cash equivalents		(11,517	)		(179,698	)		(168,180	)		89,852
Cash and cash equivalents at beginning of period		207,281			297,134			89,852			207,281

Cash and cash equivalents at end of period		195,764			117,435			(78,328	)		297,134

– 5 –

5. Revised Forecasts for the Fiscal Year Ending March 31, 2018

Based on its recent business performance, NTT East has revised its financial results forecasts that were announced in the financial results release filed on May 15, 2017 for the fiscal year ending March 31, 2018, as follows.


	(Billions of yen)
	Year Ending March 31, 2018 (Forecasts Previously Announced on May 15, 2017)		Year Ending March 31, 2018 (Revised Forecasts)		Change
Operating Revenues		1,640.0		1,640.0		—
Operating Income		190.0		190.0		—
Recurring Profit		190.0		195.0		5.0
Net Income		131.0		135.0		4.0

Note:

The financial results forecasts and projected figures concerning the future performance of NTT East contained herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT East and its parent NTT in light of information currently available to them regarding NTT, NTT East 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, NTT East 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 NTT’s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.

– 6 –

November 10, 2017

FOR IMMEDIATE RELEASE

Financial Results for the Six Months Ended September 30, 2017

The financial results of Nippon Telegraph and Telephone West Corporation (NTT West) for the six months ended September 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)

4.	Non-Consolidated Comparative Statements of Cash Flows

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			September 30, 2017			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		297,757			294,791			(2,965	)
Antenna facilities		5,895			5,842			(53	)
Terminal equipment		11,318			11,441			123
Local line facilities		1,051,300			1,066,598			15,297
Long-distance line facilities		1,693			1,647			(46	)
Engineering facilities		517,724			509,056			(8,667	)
Submarine line facilities		3,131			3,584			453
Buildings		312,924			316,091			3,167
Construction in progress		31,294			19,752			(11,542	)
Other		219,918			218,664			(1,254	)
Total property, plant and equipment		2,452,960			2,447,471			(5,488	)
Intangible fixed assets		64,444			60,736			(3,708	)
Total fixed assets - telecommunications businesses		2,517,404			2,508,207			(9,197	)
Investments and other assets
Other investments and assets		187,606			192,096			4,489
Allowance for doubtful accounts		(681	)		(607	)		74
Total investments and other assets		186,924			191,488			4,563
Total fixed assets		2,704,329			2,699,696			(4,633	)
Current assets:
Cash and bank deposits		18,251			5,276			(12,975	)
Notes receivable		—			11			11
Accounts receivable, trade		199,820			196,256			(3,564	)
Supplies		29,950			28,954			(996	)
Other current assets		151,715			114,751			(36,964	)
Allowance for doubtful accounts		(339	)		(255	)		84
Total current assets		399,398			344,993			(54,405	)

TOTAL ASSETS		3,103,728			3,044,690			(59,038	)

– 1 –


	(Millions of yen)
	March 31, 2017		September 30, 2017		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		591,000		601,000		10,000
Liability for employees’ retirement benefits		242,251		247,203		4,952
Reserve for point services		3,792		2,337		(1,455	)
Reserve for unused telephone cards		8,000		8,200		200
Allowance for environmental measures		9,074		8,424		(650	)
Asset retirement obligations		228		229		0
Other long-term liabilities		4,749		24,532		19,782
Total long-term liabilities		859,097		891,927		32,830
Current liabilities:
Current portion of long-term borrowings from parent company		110,707		110,400		(307	)
Accounts payable, trade		71,635		37,209		(34,425	)
Short-term borrowings		105,259		72,029		(33,229	)
Accrued taxes on income		8,731	*	9,178		446
Allowance for loss on disaster		4,096		3,919		(177	)
Allowance for environmental measures		2,361		1,039		(1,321	)
Asset retirement obligations		133		147		13
Other current liabilities		362,351		305,645		(56,705	)
Total current liabilities		665,277		539,570		(125,707	)

TOTAL LIABILITIES		1,524,374		1,431,498		(92,876	)

NET ASSETS
Shareholders’ equity:
Common stock		312,000		312,000		—
Capital surplus		1,170,054		1,170,054		—
Earned surplus		96,911		130,572		33,660
Total shareholders’ equity		1,578,965		1,612,626		33,660
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		388		565		177
Total unrealized gains (losses), translation adjustments, and others		388		565		177

TOTAL NET ASSETS		1,579,353		1,613,191		33,838

TOTAL LIABILITIES AND NET ASSETS		3,103,728		3,044,690		(59,038	)

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)
	Six months ended September 30, 2016		Six months ended September 30, 2017		Increase (Decrease)			Year ended March 31, 2017
Telecommunications businesses:
Operating revenues		663,429		639,500		(23,929	)		1,325,585
Operating expenses		598,349		553,943		(44,405	)		1,242,485
Operating income from telecommunications businesses		65,080		85,556		20,476			83,099
Supplementary businesses:
Operating revenues		67,091		65,634		(1,457	)		153,430
Operating expenses		60,954		58,116		(2,838	)		141,343
Operating income from supplementary businesses		6,136		7,517		1,380			12,086
Operating income		71,217		93,074		21,856			95,186

Non-operating revenues:
Interest income		6		6		(0	)		12
Dividends received		597		831		234			615
Miscellaneous income		1,059		962		(97	)		2,330
Total non-operating revenues		1,663		1,799		136			2,957

Non-operating expenses:
Interest expenses		3,761		3,010		(751	)		7,114
Miscellaneous expenses		95		307		211			2,875
Total non-operating expenses		3,856		3,317		(539	)		9,989
Recurring profit		69,023		91,556		22,533			88,154
Special losses		5,975		—		(5,975	)		6,915
Income before income taxes		63,048		91,556		28,508			81,239
Income taxes	*	17,472	*	26,695		9,223			21,469
Net income		45,575		64,860		19,284			59,770

Note:

– 3 –

3. Business Results (Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2016		Six months ended September 30, 2017		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2017
Voice transmission services revenues (excluding IP services revenues)		201,536		186,039		(15,496	)		(7.7	)		396,272
Monthly charge revenues*		151,366		140,951		(10,415	)		(6.9	)		298,340
Call rates revenues*		12,764		11,003		(1,760	)		(13.8	)		24,590
Interconnection call revenues*		25,565		23,194		(2,370	)		(9.3	)		49,676
IP services revenues		349,188		345,377		(3,811	)		(1.1	)		697,252
Leased circuit services revenues (excluding IP services revenues)		43,855		43,750		(105	)		(0.2	)		86,362
Telegram services revenues		6,176		5,589		(586	)		(9.5	)		12,625
Other telecommunications services revenues		62,672		58,742		(3,930	)		(6.3	)		133,071

Telecommunications total revenues		663,429		639,500		(23,929	)		(3.6	)		1,325,585

Supplementary business total revenues		67,091		65,634		(1,457	)		(2.2	)		153,430

Total operating revenues		730,521		705,134		(25,387	)		(3.5	)		1,479,015

*	Partial listing only

– 4 –

4. Non-Consolidated Comparative Statements of Cash Flows

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2016			Six months ended September 30, 2017			Increase (Decrease)			Year ended March 31, 2017
Cash flows from operating activities:
Income before income taxes		63,048			91,556			28,508			81,239
Depreciation and amortization		141,301			105,081			(36,219	)		287,620
Loss on disposal of property, plant and equipment		7,287			4,360			(2,927	)		19,285
Increase (decrease) in liability for employees’ retirement benefits		4,976			4,952			(24	)		8,677
(Increase) decrease in accounts receivable		27,620			15,268			(12,351	)		11,377
(Increase) decrease in inventories		1,397			(1,633	)		(3,030	)		4,599
Increase (decrease) in accounts payable and accrued expenses		(40,737	)		(53,795	)		(13,058	)		7,799
Increase (decrease) in accrued consumption tax		303			2,220			1,916			(2,241	)
Other		(13,084	)		(12,747	)		336			21,841

Sub-total		192,114			155,263			(36,851	)		440,199
Interest and dividends received		604			837			233			628
Interest paid		(4,179	)		(2,998	)		1,180			(7,575	)
Income taxes received (paid)		(20,999	)		(30,237	)		(9,237	)		(24,428	)

Net cash provided by (used in) operating activities		167,540			122,865			(44,675	)		408,824

Cash flows from investing activities:
Payments for property, plant and equipment		(128,429	)		(128,953	)		(523	)		(261,759	)
Proceeds from sale of property, plant and equipment		447			90			(357	)		650
Payments for purchase of investment securities		—			—			—			(3,100	)
Proceeds from sale of investment securities		509			23			(486	)		576
Other		(70	)		(102	)		(32	)		61

Net cash provided by (used in) investing activities		(127,543	)		(128,942	)		(1,399	)		(263,571	)

Cash flows from financing activities:
Proceeds from issuance of long-term debt		50,000			30,000			(20,000	)		50,000
Payments for settlement of long-term debt		(72,560	)		(20,307	)		52,252			(127,120	)
Net increase (decrease) in short-term borrowings		(38,422	)		(33,229	)		5,192			(37,205	)
Payments for settlement of lease obligations		(102	)		(68	)		34			(224	)
Dividends paid		(36,216	)		(31,200	)		5,016			(36,216	)

Net cash provided by (used in) financing activities		(97,302	)		(54,805	)		42,496			(150,766	)
Net increase (decrease) in cash and cash equivalents		(57,304	)		(60,883	)		(3,578	)		(5,514	)
Cash and cash equivalents at beginning of period		71,765			66,251			(5,514	)		71,765

Cash and cash equivalents at end of period		14,461			5,368			(9,092	)		66,251

– 5 –

November 10, 2017

FOR IMMEDIATE RELEASE

NTT Com Announces Financial Results for the Six Months Ended September 30, 2017

TOKYO, JAPAN — NTT Communications Corporation (NTT Com) announced today its financial results for the six months ended September 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)

V.	Non-Consolidated Comparative Statements of Cash Flows

# # #

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 company’s worldwide infrastructure, including a leading global tier-1 IP network, the Arcstar Universal One™ VPN network, reaching over 190 countries/regions, and over 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)
	Six months ended Sep 30, 2016		Six months ended Sep 30, 2017		Increase (Decrease)		Percent Increase (Decrease)
Operating revenues		617,702		638,939		21,237		3.4
Operating expenses		546,054		560,788		14,734		2.7
Operating income		71,648		78,151		6,503		9.1

– 1 –

II. Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2017			September 30, 2017			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		151,531			130,896			(20,634	)
Antenna facilities		1,674			1,358			(315	)
Terminal equipment		1,963			2,149			185
Local line facilities		1,103			1,087			(15	)
Long-distance line facilities		5,122			5,101			(20	)
Engineering facilities		49,878			49,010			(867	)
Submarine line facilities		16,701			15,805			(896	)
Buildings		205,475			205,239			(235	)
Construction in progress		13,323			12,362			(961	)
Other		105,983			119,787			13,804
Total property, plant and equipment		552,757			542,799			(9,958	)
Intangible fixed assets		98,820			101,562			2,742
Total fixed assets - telecommunications businesses		651,578			644,362			(7,215	)
Investments and other assets
Investment securities		108,152			105,939			(2,212	)
Investments in subsidiaries and affiliated companies		387,905			406,663			18,757
Other investments and assets		65,778			66,344			565
Allowance for doubtful accounts		(160	)		(141	)		19
Total investments and other assets		561,675			578,806			17,130
Total fixed assets		1,213,254			1,223,168			9,914

Current assets:
Cash and bank deposits		3,406			10,752			7,345
Notes receivable		8			—			(8	)
Accounts receivable, trade		178,248			184,346			6,098
Supplies		9,643			9,274			(369	)
Other current assets		90,655			53,314			(37,340	)
Allowance for doubtful accounts		(1,367	)		(1,401	)		(34	)
Total current assets		280,595			256,286			(24,309	)

TOTAL ASSETS		1,493,849			1,479,454			(14,394	)

– 2 –


	(Millions of yen)
	March 31, 2017		September 30, 2017		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company and subsidiary		222,333		247,986		25,652
Liability for employees’ retirement benefits		89,994		92,411		2,417
Reserve for point services		407		419		11
Reserve for unused telephone cards		3,540		3,628		88
Asset retirement obligations		4,126		4,533		407
Other long-term liabilities		19,416		22,965		3,548
Total long-term liabilities		339,818		371,944		32,126
Current liabilities:
Accounts payable, trade		29,548		23,088		(6,460	)
Short-term borrowings		—		9,348		9,348
Accrued taxes on income		3,749	*	6,819		3,070
Allowance for losses on construction		627		607		(19	)
Asset retirement obligations		56		13		(43	)
Other current liabilities		169,379		147,135		(22,244	)
Total current liabilities		203,360		187,012		(16,348	)

TOTAL LIABILITIES		543,179		558,957		15,778


NET ASSETS
Shareholders’ equity:
Common stock		211,763		211,763		—
Capital surplus		131,615		131,615		—
Earned surplus		563,997		535,223		(28,773	)
Total shareholders’ equity		907,376		878,602		(28,773	)
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		43,080		41,894		(1,186	)
Deferred gains or losses on hedges		213		—		(213	)
Total unrealized gains (losses), translation adjustments, and others		43,293		41,894		(1,399	)

TOTAL NET ASSETS		950,670		920,497		(30,173	)

TOTAL LIABILITIES AND NET ASSETS		1,493,849		1,479,454		(14,394	)

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)
	Six months ended September 30, 2016		Six months ended September 30, 2017		Increase (Decrease)			Year ended March 31, 2017
Telecommunications businesses:
Operating revenues		346,629		346,188		(441	)		697,333
Operating expenses		305,692		296,429		(9,263	)		620,370
Operating income from telecommunications businesses		40,937		49,759		8,822			76,963

Supplementary businesses:
Operating revenues		100,482		116,186		15,703			226,522
Operating expenses		91,265		107,421		16,155			210,936
Operating income from supplementary businesses		9,217		8,765		(451	)		15,585
Operating income		50,154		58,524		8,370			92,549

Non-operating revenues:
Interest income		41		18		(22	)		62
Dividends received		7,249		6,314		(934	)		8,258
Lease and rental income		5,692		5,365		(327	)		11,204
Miscellaneous income		154		1,566		1,412			1,222
Total non-operating revenues		13,137		13,265		128			20,748

Non-operating expenses:
Interest expenses		549		381		(167	)		1,050
Lease and rental expenses		2,762		1,899		(863	)		5,712
Miscellaneous expenses		646		106		(539	)		1,072
Total non-operating expenses		3,957		2,387		(1,570	)		7,836
Recurring profit		59,334		69,402		10,068			105,461
Special profits		—		2,433		2,433			—
Income before income taxes		59,334		71,836		12,501			105,461
Income taxes	*	16,549	*	21,048		4,499			20,458
Net income		42,785		50,787		8,002			85,003

Note:

– 4 –

IV. Business Results (Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2016		Six months ended September 30, 2017		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2017
Cloud Computing Platforms		34,779		39,580		4,801			13.8			72,034
Data Networks		190,005		195,906		5,900			3.1			384,804
Voice Communications		126,392		120,764		(5,628	)		(4.5	)		250,794
Applications & Content		18,666		18,165		(501	)		(2.7	)		37,732
Solution Services		69,743		77,690		7,946			11.4			163,496
Others		7,524		10,267		2,742			36.5			14,993

Total operating revenues		447,112		462,374		15,262			3.4			923,855

– 5 –

V. Non-Consolidated Comparative Statements of Cash Flows

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2016			Six months ended September 30, 2017			Increase (Decrease)			Year ended March 31, 2017
Cash flows from operating activities:
Income before income taxes		59,334			71,836			12,501			105,461
Depreciation and amortization		52,375			46,809			(5,565	)		106,971
Loss on disposal of property, plant and equipment		940			515			(424	)		4,517
Gains on sales of fixed assets		(58	)		(8	)		50			(78	)
Increase (decrease) in allowance for doubtful accounts		192			14			(177	)		302
Increase (decrease) in liability for employees’ retirement benefits		2,962			2,417			(545	)		3,272
(Increase) decrease in accounts receivable		32,240			22,771			(9,469	)		(239	)
(Increase) decrease in inventories		(1,901	)		(322	)		1,579			1,152
Increase (decrease) in accounts payable and accrued expenses		(24,274	)		(18,842	)		5,432			703
Increase (decrease) in accrued consumption tax		1,864			1,861			(3	)		2,434
Other		(19,208	)		(8,758	)		10,449			(10,925	)

Sub-total		104,467			118,294			13,826			213,571
Interest and dividends received		7,312			6,333			(978	)		8,344
Interest paid		(614	)		(461	)		152			(1,086	)
Income taxes received (paid)		(24,846	)		(17,558	)		7,287			(29,892	)

Net cash provided by (used in) operating activities		86,319			106,607			20,287			190,937
Cash flows from investing activities:
Payments for property, plant and equipment		(69,246	)		(54,478	)		14,767			(134,677	)
Proceeds from sale of property, plant and equipment		223			572			349			412
Payments for purchase of investment securities		(230	)		(24,991	)		(24,761	)		(422	)
Proceeds from sale of investment securities		1,500			10,150			8,650			2,242
Other		(17	)		(1,352	)		(1,335	)		(4,042	)

Net cash provided by (used in) investing activities		(67,770	)		(70,099	)		(2,328	)		(136,487	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		—			31,248			31,248			22,864
Payments for settlement of long-term debt		(1,680	)		(5,595	)		(3,915	)		(43,360	)
Net increase (decrease) in short-term borrowings		(7,006	)		9,348			16,354			(7,766	)
Payments for settlement of lease obligations		(1,595	)		(1,843	)		(247	)		(4,306	)
Dividends paid		(33,000	)		(79,561	)		(46,561	)		(33,000	)

Net cash provided by (used in) financing activities		(43,282	)		(46,403	)		(3,121	)		(65,569	)
Effect of exchange rate changes on cash and cash equivalents		(752	)		294			1,046			(158	)
Net increase (decrease) in cash and cash equivalents		(25,485	)		(9,601	)		15,883			(11,277	)
Cash and cash equivalents at beginning of period		31,630			20,353			(11,277	)		31,630

Cash and cash equivalents at end of period		6,145			10,752			4,606			20,353

– 6 –

November 10, 2017

Nippon Telegraph and Telephone Corporation

Supplementary Data for

the Six Months Ended September 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 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.

1. Financial Results Summary (NTT Consolidated Financial Results, EBITDA and EBITDA Margin and Interest-Bearing Liabilities)

NTT Consolidated Financial Results


	(Billions of yen)
	FY 2016																		FY 2017												FY 2017 (E)			[Ref.] FY 2017 (E)
	Three Months Ended June 30			Three Months Ended September 30			Six Months Ended September 30			Three Months Ended December 31			Three Months Ended March 31			Year Ended March 31			Three Months Ended June 30			Three Months Ended September 30			Six Months Ended September 30			Three Months Ended December 31	Three Months Ended March 31	Year Ended March 31	Year Ending March 31 (Revised Forecast)			Year Ending March 31 (Previously Announced Forecast)
Consolidated (US GAAP)
Operating Revenues		2,716.7			2,807.6			5,524.3			2,836.2			3,030.5			11,391.0			2,809.8			2,855.0			5,664.8						11,750.0			11,750.0
Fixed Voice Related Services		311.8			307.5			619.3			299.8			314.7			1,233.9			290.2			280.8			571.0						—			—
Mobile Voice Related Services		213.0			216.6			429.6			221.8			213.9			865.3			228.7			238.9			467.7						—			—
IP/Packet Communications Services		948.0			953.3			1,901.4			941.0			966.6			3,809.0			949.2			959.7			1,908.9						—			—
Sales of Telecommunications Equipment		186.7			236.4			423.1			227.0			156.4			806.5			173.4			175.1			348.5						—			—
System Integration		688.3			708.8			1,397.1			726.7			917.9			3,041.6			782.5			817.3			1,599.8						—			—
Other		368.9			385.0			753.9			419.9			461.0			1,634.8			385.8			383.1			768.9						—			—
Operating Expenses		2,229.3			2,368.5			4,597.8			2,444.1			2,809.3			9,851.2			2,318.2			2,371.4			4,689.6						10,160.0			10,160.0
Cost of Services (excluding items shown separately below)		547.3			606.1			1,153.4			598.0			736.2			2,487.6			554.9			565.6			1,120.5						—			—
Cost of Equipment Sold (excluding items shown separately below)		175.3			231.2			406.4			248.3			225.0			879.7			184.5			195.4			379.9						—			—
Cost of System Integration (excluding items shown separately below)		501.7			484.5			986.2			510.3			664.4			2,161.0			561.1			580.0			1,141.1						—			—
Depreciation and Amortization		359.2			357.3			716.5			366.4			379.3			1,462.2			332.3			327.7			659.9						1,359.0			1,359.0
Impairment Loss		0.4			14.3			14.7			51.3			7.9			73.9			—			0.6			0.6						—			—
Goodwill		—			4.5			4.5			48.8			—			53.3			—			—			—						—			—
Other		0.4			9.8			10.2			2.5			7.9			20.6			—			0.6			0.6						—			—
Selling, General and Administrative Expenses		645.5			675.1			1,320.6			669.7			796.5			2,786.8			685.4			702.2			1,387.6						—			—
Operating Income		487.4			439.1			926.5			392.1			221.2			1,539.8			491.6			483.6			975.2						1,590.0			1,590.0
Income Before Income Taxes		446.1			450.8			896.9			410.3			220.6			1,527.8			496.2			485.8			982.0						1,695.0			1,580.0
Net Income Attributable to NTT		243.6			232.5			476.1			192.6			131.4			800.1			271.5			256.0			527.5						880.0			830.0
(Ref.) Details of “Cost of Services,” “Cost of Equipment Sold,” “Cost of System Integration” and “Selling, General and Administrative Expenses”
Personnel		557.7			569.7			1,127.4			547.5			601.9			2,276.8			593.1			594.7			1,187.8						—			—
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		1,227.9			1,335.4			2,563.3			1,384.4			1,664.2			5,612.0			1,308.2			1,358.2			2,666.4						—			—
Loss on Disposal of Property, Plant and Equipment		24.2			36.3			60.4			39.8			96.8			197.0			27.3			35.4			62.7						—			—
Other Expenses		60.0			55.6			115.6			54.7			59.1			229.4			57.3			55.0			112.3						—			—
Total		1,869.8			1,996.9			3,866.7			2,026.4			2,422.1			8,315.1			1,985.9			2,043.2			4,029.1						—			—
EBITDA and EBITDA Margin with Reconciliation
EBITDA [a+b+c+d] ⁽¹⁾		860.0			830.7			1,690.6			829.8			662.9			3,183.3			837.4			827.7			1,665.1						3,190.0			3,190.0
a Operating Income		487.4			439.1			926.5			392.1			221.2			1,539.8			491.6			483.6			975.2						1,590.0			1,590.0
b Depreciation and Amortization		359.2			357.3			716.5			366.4			379.3			1,462.2			332.3			327.7			659.9						1,359.0			1,359.0
c Loss on Sales and Disposal of Property, Plant and Equipment		13.0			20.0			33.0			20.0			54.4			107.4			13.5			15.9			29.4						241.0			241.0
d Impairment Loss		0.4			14.3			14.7			51.3			7.9			73.9			—			0.6			0.6						—			—
EBITDA Margin [(e/f)*100] ⁽¹⁾		31.7	%		29.6	%		30.6	%		29.3	%		21.9	%		27.9	%		29.8	%		29.0	%		29.4	%					27.1	%		27.1	%
e EBITDA [a+b+c+d]		860.0			830.7			1,690.6			829.8			662.9			3,183.3			837.4			827.7			1,665.1						3,190.0			3,190.0
f Operating Revenues		2,716.7			2,807.6			5,524.3			2,836.2			3,030.5			11,391.0			2,809.8			2,855.0			5,664.8						11,750.0			11,750.0
Interest-Bearing Liabilities

	FY 2016																		FY 2017												FY 2017 (E)			[Ref.] 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 (Revised Forecast)			As of March 31 (Previously Announced Forecast)
Interest-Bearing Liabilities		4,353.6			4,091.8			4,497.1			4,088.2									4,419.3			4,172.2									3,900.0			3,900.0


Note :	(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 826.9 billion yen and 29.0%, respectively, for the three months ended September 30, 2017 and 1,663.9 billion yen and 29.4%, respectively, for the six months ended September 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


	(Billions of yen)
	FY 2016												FY 2017									FY 2017 (E)		[Ref.] FY 2017 (E)
	Three Months Ended June 30		Three Months Ended September 30		Six Months Ended September 30		Three Months Ended December 31		Three Months Ended March 31		Year Ended March 31		Three Months Ended June 30		Three Months Ended September 30		Six Months Ended September 30		Three Months Ended December 31	Three Months Ended March 31	Year Ended March 31	Year Ending March 31 (Revised Forecast)		Year Ending March 31 (Previously Announced Forecast)
Capital Investment ⁽¹⁾		284.4		381.5		665.8		426.5		607.8		1,700.0		356.0		402.3		758.3					1,700.0		1,700.0
Regional communications business		96.3		118.7		215.0		130.6		237.7		583.4		106.4		126.2		232.6					555.0		555.0
Long distance and international communications business		44.8		56.6		101.3		67.0		76.5		244.9		52.1		57.9		110.0					249.0		249.0
Mobile communications business		97.1		148.9		246.1		153.3		197.7		597.1		120.9		146.7		267.7					570.0		570.0
Data communications business		28.5		39.1		67.7		37.9		52.5		158.1		44.4		53.5		98.0					192.0		192.0
Other business		17.6		18.1		35.7		37.6		43.3		116.6		32.1		17.9		50.0					134.0		134.0
(Ref.) Core Group Companies
NTT (Holding Company)		1.0		2.6		3.7		3.8		8.1		15.7		1.9		2.1		4.0					18.0		18.0
R&D Facilities		—		—		—		—		—		12.9		—		—		—					15.0		15.0
Joint Facilities		—		—		—		—		—		2.8		—		—		—					3.0		3.0
NTT East ⁽²⁾		42.1		52.4		94.6		61.0		118.0		273.8		58.5		56.8		115.4					250.0		250.0
Service Expansion and Improvement		—		—		—		—		—		249.6		—		—		—					231.0		231.0
Voice Transmission		—		—		—		—		—		142.6		—		—		—					133.0		133.0
Data Transmission		—		—		—		—		—		17.8		—		—		—					14.0		14.0
Leased Circuit		—		—		—		—		—		88.2		—		—		—					83.0		83.0
Telegraph		—		—		—		—		—		0.9		—		—		—					1.0		1.0
R&D Facilities		—		—		—		—		—		2.7		—		—		—					2.0		2.0
Joint Facilities		—		—		—		—		—		21.3		—		—		—					17.0		17.0
NTT West ⁽²⁾		46.2		56.8		103.0		61.7		109.3		274.1		42.1		60.9		103.0					260.0		260.0
Service Expansion and Improvement		—		—		—		—		—		256.0		—		—		—					239.0		239.0
Voice Transmission		—		—		—		—		—		157.7		—		—		—					144.0		144.0
Data Transmission		—		—		—		—		—		22.9		—		—		—					17.0		17.0
Leased Circuit		—		—		—		—		—		74.9		—		—		—					77.0		77.0
Telegraph		—		—		—		—		—		0.3		—		—		—					1.0		1.0
R&D Facilities		—		—		—		—		—		1.9		—		—		—					2.0		2.0
Joint Facilities		—		—		—		—		—		16.0		—		—		—					19.0		19.0
NTT Communications		25.1		32.2		57.4		34.1		43.6		135.1		18.1		22.3		40.5					111.0		111.0
Cloud Computing Platforms		—		—		—		—		—		39.6		—		—		—					23.0		23.0
Data Networks		—		—		—		—		—		26.3		—		—		—					22.1		22.1
Voice Communications		—		—		—		—		—		10.2		—		—		—					8.2		8.2
Applications & Content		—		—		—		—		—		1.9		—		—		—					4.1		4.1
Solution Services		—		—		—		—		—		6.3		—		—		—					5.3		5.3
Infrastructure and Joint Facilities, etc.		—		—		—		—		—		50.5		—		—		—					48.0		48.0
NTT DOCOMO (Consolidated)		97.1		148.9		246.1		153.3		197.7		597.1		120.9		146.7		267.7					570.0		570.0
NTT DATA (Consolidated)		28.5		39.1		67.6		37.9		52.5		158.1		49.0		53.5		102.6					192.0		192.0
(Ref.) Optical Access Network Investment
NTT East		—		—		—		—		—		85.0		—		—		—					Approx. 80.0		Approx. 80.0
NTT West		—		—		—		—		—		71.0		—		—		—					Approx. 73.0		Approx. 73.0


Notes :	(1)	Capital Investment figures for domestic access network businesses for the six months ended September 30, 2016, the six months ended September 30, 2017 and the year ending March 31, 2018 (Revised Forecast) are 496.3 billion yen, 522.6 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)


	(Billions of yen)
	FY 2016													FY 2017									FY 2017 (E)		[Ref.] FY 2017 (E)
	Three Months Ended June 30		Three Months Ended September 30		Six Months Ended September 30		Three Months Ended December 31			Three Months Ended March 31		Year Ended March 31		Three Months Ended June 30		Three Months Ended September 30		Six Months Ended September 30		Three Months Ended December 31	Three Months Ended March 31	Year Ended March 31	Year Ending March 31 (Revised Forecast)		Year Ending March 31 (Previously Announced Forecast)
Business segments ⁽¹⁾
Regional communications business
Operating Revenues		802.9		817.5		1,620.4		814.4			873.4		3,308.2		787.8		792.8		1,580.6					3,230.0		3,230.0
Operating Expenses		675.1		713.1		1,388.2		716.2			844.3		2,948.7		654.2		673.3		1,327.4					2,900.0		2,900.0
Operating Income		127.8		104.5		232.2		98.2			29.0		359.5		133.6		119.5		253.2					330.0		330.0
Long distance and international communications business
Operating Revenues		519.0		519.8		1,038.8		531.8			558.6		2,129.3		529.7		535.1		1,064.8					2,230.0		2,230.0
Operating Expenses		492.0		504.7		996.7		555.3			536.5		2,088.4		494.9		499.5		994.4					2,110.0		2,110.0
Operating Income		27.0		15.2		42.2		(23.5	)		22.1		40.8		34.8		35.6		70.4					120.0		120.0
Mobile communications business
Operating Revenues		1,108.7		1,179.4		2,288.0		1,181.2			1,115.3		4,584.6		1,136.7		1,163.4		2,300.1					4,750.0		4,750.0
Operating Expenses		810.4		893.9		1,704.3		925.6			1,003.0		3,632.9		859.1		893.7		1,752.8					3,795.0		3,795.0
Operating Income		298.3		285.4		583.7		255.6			112.3		951.6		277.6		269.7		547.3					955.0		955.0
Data communications business
Operating Revenues		373.5		388.6		762.1		402.6			554.1		1,718.7		462.3		482.1		944.4					1,970.0		1,970.0
Operating Expenses		351.6		374.6		726.2		371.4			513.3		1,610.8		437.0		448.4		885.4					1,840.0		1,840.0
Operating Income		21.9		14.0		35.9		31.2			40.8		107.9		25.3		33.7		59.0					130.0		130.0
Other business
Operating Revenues		272.1		295.5		567.6		322.3			392.4		1,282.3		281.4		283.0		564.4					1,260.0		1,260.0
Operating Expenses		259.8		278.1		537.9		292.7			374.4		1,205.0		262.3		262.7		525.0					1,185.0		1,185.0
Operating Income		12.3		17.4		29.7		29.6			18.0		77.3		19.0		20.4		39.4					75.0		75.0


Note:			(1	)		Figures for each segment include inter-segment transactions.

– 3 –

3. Financial Results (Holding Company and Subsidiaries)


	(Billions of yen)
	FY 2016														FY 2017										FY 2017 (E)		[Ref.] FY 2017 (E)
	Three Months Ended June 30		Three Months Ended September 30			Six Months Ended September 30		Three Months Ended December 31		Three Months Ended March 31			Year Ended March 31		Three Months Ended June 30		Three Months Ended September 30			Six Months Ended September 30		Three Months Ended December 31	Three Months Ended March 31	Year Ended March 31	Year Ending March 31 (Revised Forecast)		Year Ending March 31 (Previously Announced Forecast)
NTT (Holding Company) (JPN GAAP)
Operating Revenues		269.1		32.7			301.9		138.6		33.7			474.3		436.7		30.9			467.7					662.0		662.0
Operating Expenses		29.4		30.7			60.2		31.1		43.3			134.6		30.0		29.4			59.4					130.0		130.0
Operating Income		239.6		2.0			241.6		107.5		(9.5	)		339.6		406.6		1.5			408.2					532.0		532.0
Non-Operating Revenues		6.0		6.2			12.3		5.7		6.0			24.1		5.1		6.2			11.3					22.0		22.0
Non-Operating Expenses		7.7		6.8			14.6		6.7		7.6			28.9		6.1		6.3			12.5					25.0		25.0
Recurring Profit		237.9		1.4			239.3		106.5		(11.0	)		334.9		405.6		1.4			407.1					529.0		529.0
Net Income		237.5		(19.7	)		217.7		79.2		(8.9	)		288.1		405.3		(0.6	)		404.7					530.0		530.0
NTT East (JPN GAAP)
Operating Revenues		410.1		413.3			823.5		413.1		435.5			1,672.2		405.5		407.1			812.7					1,640.0		1,640.0
Voice Transmission Services (excluding IP) ⁽¹⁾		101.4		99.9			201.4		99.2		95.8			396.5		94.2		92.7			187.0					370.0		370.0
IP Services		213.3		211.7			425.1		212.4		212.8			850.3		213.4		213.7			427.1					850.0		850.0
Leased Circuit (excluding IP)		24.0		23.6			47.6		23.0		22.6			93.3		23.2		23.1			46.4					93.0		93.0
Other		46.1		46.0			92.2		48.1		54.1			194.5		47.6		46.8			94.4					193.0		193.0
Supplementary Business		25.0		31.9			57.0		30.3		50.0			137.4		26.8		30.6			57.5					134.0		134.0
Operating Expenses		346.0		353.6			699.7		363.1		420.2			1,483.1		329.9		341.0			670.9					1,450.0		1,450.0
Personnel		23.6		23.6			47.2		23.2		24.0			94.6		21.4		20.8			42.3					85.0		85.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		224.3		230.9			455.2		236.1		270.7			962.1		222.9		232.6			455.6					947.0		947.0
Depreciation and Amortization		72.2		72.5			144.8		76.0		74.2			295.0		58.7		59.1			117.8					234.0		234.0
Loss on Disposal of Property, Plant and Equipment		6.1		8.4			14.5		9.7		31.5			55.9		7.6		10.4			18.0					110.0		110.0
Taxes and Public Dues		19.5		18.1			37.7		17.9		19.6			75.3		19.1		18.0			37.1					74.0		74.0
Operating Income		64.1		59.6			123.7		49.9		15.3			189.1		75.6		66.1			141.7					190.0		190.0
Non-Operating Revenues		17.3		0.5			17.9		1.5		0.7			20.2		8.1		0.8			8.9					9.0		5.0
Non-Operating Expenses		1.2		1.2			2.5		1.2		1.1			4.9		0.9		0.9			1.8					4.0		5.0
Recurring Profit		80.2		58.9			139.2		50.2		14.9			204.4		82.8		66.0			148.9					195.0		190.0
Net Income		57.8		42.1			99.9		36.5		13.1			149.6		60.0		46.3			106.3					135.0		131.0
NTT West (JPN GAAP)
Operating Revenues		362.0		368.4			730.5		362.7		385.7			1,479.0		351.0		354.1			705.1					1,436.0		1,436.0
Voice Transmission Services (excluding IP) ⁽¹⁾		101.6		99.9			201.5		99.0		95.6			396.2		93.7		92.2			186.0					370.0		370.0
IP Services		175.5		173.6			349.1		174.0		173.9			697.2		173.5		171.8			345.3					689.0		689.0
Leased Circuit (excluding IP)		22.0		21.7			43.8		21.3		21.1			86.3		22.0		21.7			43.7					87.0		87.0
Other		33.8		35.0			68.8		35.9		40.8			145.6		32.5		31.8			64.3					138.0		138.0
Supplementary Business		29.0		38.0			67.0		32.2		54.0			153.4		29.1		36.4			65.6					152.0		152.0
Operating Expenses		323.3		335.9			659.3		336.6		387.8			1,383.8		301.4		310.6			612.0					1,336.0		1,336.0
Personnel		20.3		20.0			40.4		19.9		20.2			80.5		18.9		17.6			36.6					74.0		77.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		206.3		219.1			425.5		215.4		254.4			895.4		206.0		215.4			421.5					863.0		860.0
Depreciation and Amortization		70.4		70.8			141.3		74.1		72.1			287.6		52.2		52.7			105.0					213.0		213.0
Loss on Disposal of Property, Plant and Equipment		8.6		9.4			18.1		10.9		24.1			53.2		6.6		8.4			15.1					119.0		119.0
Taxes and Public Dues		17.5		16.3			33.8		16.2		16.8			66.9		17.4		16.1			33.6					67.0		67.0
Operating Income		38.7		32.5			71.2		26.0		(2.0	)		95.1		49.5		43.5			93.0					100.0		100.0
Non-Operating Revenues		1.2		0.4			1.6		0.5		0.7			2.9		1.3		0.4			1.7					4.0		4.0
Non-Operating Expenses		2.0		1.7			3.8		1.7		4.3			9.9		1.5		1.7			3.3					9.0		9.0
Recurring Profit		37.8		31.1			69.0		24.8		(5.7	)		88.1		49.3		42.1			91.5					95.0		95.0
Net Income		23.3		22.2			45.5		18.0		(3.8	)		59.7		35.0		29.8			64.8					70.0		70.0


Note:		(1)		Operating Revenues from Voice Transmission Services (excluding IP) of NTT East and NTT West for the six months ended September 30, 2017 include monthly charges, call charges and interconnection charges of 142.0 billion yen, 11.7 billion yen and 21.7 billion yen for NTT East, and 140.9 billion yen, 11.0 billion yen and 23.1 billion yen for NTT West, respectively.

– 4 –

3. Financial Results (Holding Company and Subsidiaries)


	(Billions of yen)
	FY 2016																		FY 2017											FY 2017 (E)		[Ref.] FY 2017 (E)
	Three Months Ended June 30			Three Months Ended September 30			Six Months Ended September 30			Three Months Ended December 31			Three Months Ended March 31			Year Ended March 31			Three Months Ended June 30			Three Months Ended September 30		Six Months Ended September 30			Three Months Ended December 31	Three Months Ended March 31	Year Ended March 31	Year Ending March 31 (Revised Forecast)		Year Ending March 31 (Previously Announced Forecast)
NTT Communications (JPN GAAP)
Operating Revenues ⁽¹⁾		220.2			226.9			447.1			227.0			249.6			923.8			230.3			231.9		462.3						940.0		940.0
Cloud Computing Platforms		17.1			17.6			34.7			17.6			19.5			72.0			20.2			19.3		39.5						87.0		87.0
Data Networks		94.8			95.1			190.0			96.3			98.4			384.8			97.2			98.6		195.9						393.0		393.0
Voice Communications		63.0			63.3			126.3			63.7			60.6			250.7			60.0			60.7		120.7						244.0		244.0
Applications & Content		9.4			9.2			18.6			9.3			9.6			37.7			8.7			9.3		18.1						37.0		37.0
Solution Services		31.9			37.7			69.7			36.1			57.5			163.4			37.3			40.3		77.6						159.0		159.0
Others		3.7			3.7			7.5			3.8			3.6			14.9			6.8			3.4		10.2						20.0		20.0
Operating Expenses		194.3			202.5			396.9			204.1			230.2			831.3			198.9			204.8		403.8						847.0		847.0
Personnel		19.2			18.9			38.2			19.0			19.7			77.0			19.1			18.9		38.1						77.0		77.0
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses		90.8			98.8			189.6			95.1			121.6			406.4			94.8			99.5		194.4						639.0		639.0
Communication Network Charges		54.7			54.6			109.4			59.2			54.4			223.1			57.6			58.8		116.4
Depreciation and Amortization		25.4			25.6			51.1			26.2			27.0			104.4			22.7			23.3		46.1						96.0		96.0
Loss on Disposal of Property, Plant and Equipment		0.5			1.0			1.6			0.9			4.1			6.7			0.8			0.6		1.5						22.0		22.0
Taxes and Public Dues		3.5			3.2			6.8			3.4			3.2			13.4			3.6			3.4		7.1						13.0		13.0
Operating Income		25.8			24.3			50.1			22.9			19.4			92.5			31.4			27.1		58.5						93.0		93.0
Non-Operating Revenues		7.4			5.6			13.1			4.0			3.5			20.7			6.7			6.4		13.2						18.0		18.0
Non-Operating Expenses		2.3			1.6			3.9			1.3			2.5			7.8			1.4			0.9		2.3						8.0		8.0
Recurring Profit		30.9			28.3			59.3			25.6			20.5			105.4			36.7			32.6		69.4						103.0		103.0
Net Income		22.3			20.4			42.7			18.5			23.6			85.0			27.6			23.1		50.7						73.0		73.0
Dimension Data (IFRS) ⁽²⁾⁽³⁾
Operating Revenues		206.6			198.6			405.2			196.4			207.4			809.0			207.0			208.5		415.5						890.0		890.0
Operating Expenses		207.9			205.7			413.6			197.9			207.4			818.9			207.2			205.2		412.3						881.0		881.0
Operating Income ⁽⁴⁾		(1.3	)		(7.0	)		(8.3	)		(1.5	)		(0	)		(9.9	)		(0.2	)		3.3		3.2						9.0		9.0
Net Income Attributable to Dimension Data		(2.4	)		(9.6	)		(11.9	)		(14.6	)		(1.4	)		(27.9	)		(1.8	)		0.2		(1.6	)					—		—


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 Data’s statements of income from January 1 to June 30, 2017 are consolidated into NTT’s consolidated statements of income from April 1 to September 30, 2017, Dimension Data’s financial results for the six months ended June 30, 2017 are included under the six months ended September 30, 2017 and Dimension Data’s 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 six months ended September 30, 2017 is USD1.00 = JPY112.34.
	(4)	Operating Income for the six months ended September 30, 2017 under US GAAP was (2.0) billion yen.

– 5 –

3. Financial Results (Holding Company and Subsidiaries)


	(Billions of yen)
	FY 2016																		FY 2017												FY 2017 (E)			[Ref.] FY 2017 (E)
	Three Months Ended June 30			Three Months Ended September 30			Six Months Ended September 30			Three Months Ended December 31			Three Months Ended March 31			Year Ended March 31			Three Months Ended June 30			Three Months Ended September 30			Six Months Ended September 30			Three Months Ended December 31	Three Months Ended March 31	Year Ended March 31	Year Ending March 31 (Revised Forecast)			Year Ending March 31 (Previously Announced Forecast)
NTT DOCOMO Consolidated (US GAAP)
Operating Revenues		1,108.7			1,179.7			2,288.3			1,181.3			1,115.0			4,584.6			1,136.7			1,163.4			2,300.1						4,750.0			4,750.0
Telecommunications Services		729.7			744.8			1,474.5			750.7			759.9			2,985.1			774.9			793.9			1,568.8						3,114.0			3,125.0
Mobile Communications Services		704.2			712.8			1,417.0			712.1			714.8			2,844.0			723.1			736.5			1,459.6						2,878.0			2,894.0
Voice Revenues		215.9			219.6			435.4			224.8			215.0			875.2			231.2			241.4			472.6						932.0			928.0
Packet Communications Revenues		488.3			493.3			981.6			487.4			499.8			1,968.8			491.9			495.1			987.0						1,946.0			1,966.0
Optical-fiber Broadband Services and Other Telecommunications Services		25.5			31.9			57.5			38.6			45.1			141.1			51.8			57.4			109.2						236.0			231.0
Equipment Sales		165.8			214.4			380.1			206.2			132.9			719.2			150.6			152.9			303.5						759.0			748.0
Other Operating Revenues		213.2			220.5			433.7			224.4			222.2			880.3			211.2			216.7			427.8						877.0			877.0
Operating Expenses		809.4			893.4			1,702.7			924.5			1,012.6			3,639.8			858.4			893.0			1,751.4						3,790.0			3,790.0
Personnel		72.3			72.8			145.1			72.2			74.5			291.8			72.9			71.6			144.5						290.0			300.0
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses		531.5			600.6			1,132.1			622.8			677.3			2,432.1			553.3			577.5			1,130.8						2,506.0			2,498.0
Depreciation and Amortization		109.7			110.8			220.5			113.9			117.9			452.3			119.0			121.0			240.0						489.0			490.0
Impairment Loss		—			—			—			—			12.2			12.2			—			—			—						—			—
Loss on Disposal of Property, Plant and Equipment		7.9			16.8			24.8			16.5			38.3			79.6			12.4			16.0			28.5						69.0			60.0
Communication Network Charges		76.7			82.1			158.7			88.8			81.8			329.4			90.9			96.6			187.5						395.0			400.0
Taxes and Public Dues		11.2			10.3			21.5			10.3			10.5			42.4			9.9			10.2			20.1						41.0			42.0
Operating Income		299.3			286.3			585.6			256.7			102.4			944.7			278.3			270.5			548.8						960.0			960.0
Non-Operating Income (Loss)		(4.0	)		(0.4	)		(4.4	)		8.3			1.0			4.8			3.5			2.2			5.7						121.0			6.0
Income Before Income Taxes		295.3			285.9			581.2			265.0			103.4			949.6			281.8			272.7			554.5						1,081.0			966.0
Net Income Attributable to NTT DOCOMO		206.9			198.6			405.4			184.0			63.1			652.5			189.9			184.0			373.9						740.0			655.0
NTT DATA Consolidated (JPN GAAP)
Net sales		392.2			387.4			779.6			401.2			551.5			1,732.4			540.4			480.5			1,020.9						2,060.0			2,060.0
Public & Social Infrastructure		89.1			97.6			186.7			109.5			159.1			455.4			85.9			—			183.0						447.0			447.0
Financial		118.6			127.7			246.3			124.3			147.2			518.0			127.5			—			259.1						539.0			539.0
Enterprise & Solutions		97.7			103.1			200.9			103.0			121.6			425.6			105.2			—			219.0						442.0			442.0
New
North America ⁽¹⁾		—			—			—			—			—			—			—			—			263.2						513.0			—
EMEA & LATAM ⁽¹⁾		—			—			—			—			—			—			—			—			212.7						362.0			—
Elimination or Corporate ⁽¹⁾		—			—			—			—			—			—			—			—			(116.2	)					(243.0	)		—
Old
Global		145.2			122.8			268.0			128.7			206.5			603.3			284.7			—			—						—			908.0
Elimination or Corporate		(58.5	)		(63.9	)		(122.4	)		(64.5	)		(83.0	)		(269.9	)		(63.0	)		—			—						—			(276.0	)
Cost of Sales		294.5			286.7			581.2			293.7			418.6			1,293.6			413.5			354.4			767.9						1,548.0			1,550.0
Gross Profit		97.6			100.6			198.3			107.5			132.9			438.8			126.9			126.0			253.0						512.0			510.0
Selling, General and Administrative Expenses		80.3			72.7			153.0			78.3			90.4			321.7			104.7			96.2			200.9						392.0			390.0
Operating Income		17.3			27.9			45.3			29.1			42.5			117.1			22.1			29.8			52.0						120.0			120.0
Non-Operating Income (Loss)		(0	)		(0.1	)		(0.2	)		(1.1	)		(2.7	)		(4.1	)		0.2			(2.0	)		(1.7	)					(4.0	)		(4.0	)
Ordinary income		17.3			27.7			45.0			28.0			39.8			112.9			22.4			27.8			50.2						116.0			116.0
Net Income Attributable to Owners of Parent		10.0			18.9			29.0			16.0			20.6			65.6			8.1			13.7			21.8						59.0			59.0


Note:	(1)	Due to the revision of NTT DATA’s global management structure on July 1, 2017, NTT DATA changed the method of classification and disclosure of segment information starting from the six months ended September 30, 2017. Under the new segments, the results for the six months ended September 30, 2016 were 87.0 billion for North America, 170.6 billion yen for EMEA & LATAM, and (112.0) billion yen for Elimination or Corporate, and the results for the year ended March 31, 2017 were 246.3 billion for North America, 330.8 billion yen for EMEA & LATAM, and (243.9) billion yen for Elimination or Corporate.
		The new Elimination or Corporate segment includes certain figures that would have been included in former segment areas such as China/APAC.

– 6 –

4. Operating Data

Number of Subscribers


	(in thousands except for Public Telephones)
	FY 2016								FY 2017						FY 2017 (E)		[Ref.] 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 (Revised Forecast)		As of March 31 (Previously Announced Forecast)
Telephone Subscriber Lines ⁽¹⁾		19,671		19,413		19,117		18,797		18,482		18,168				17,785		17,785
NTT East		9,740		9,617		9,471		9,315		9,166		9,014				8,865		8,865
NTT West		9,931		9,796		9,647		9,482		9,316		9,154				8,920		8,920
INS-Net ⁽²⁾		2,719		2,661		2,602		2,539		2,488		2,440				2,326		2,326
NTT East		1,384		1,356		1,325		1,293		1,269		1,244				1,193		1,193
NTT West		1,334		1,305		1,276		1,246		1,219		1,196				1,133		1,133
Telephone Subscriber Lines + INS-Net		22,390		22,074		21,719		21,336		20,970		20,609				20,111		20,111
NTT East		11,125		10,973		10,796		10,609		10,434		10,258				10,059		10,059
NTT West		11,265		11,102		10,923		10,727		10,535		10,350				10,052		10,052
Public Telephones		168,673		166,120		163,921		161,375		160,396		159,485				157,972		157,972
NTT East		76,511		74,846		73,357		71,434		71,037		70,763				70,434		70,434
NTT West		92,162		91,274		90,564		89,941		89,359		88,722				87,538		87,538
FLET’S ISDN		83		81		79		77		75		73				70		70
NTT East		36		35		34		33		33		32				30		30
NTT West		47		46		45		44		43		42				39		39
FLET’S ADSL		1,019		987		955		919		881		849				791		791
NTT East		459		444		428		411		394		379				351		351
NTT West		560		543		527		508		487		470				440		440
FLET’S Hikari (including Hikari Collaboration Model) ^(3)(4)(5)		19,520		19,704		19,903		20,053		20,294		20,386				20,853		20,853
NTT East		10,839		10,958		11,078		11,173		11,318		11,381				11,673		11,673
NTT West		8,681		8,746		8,825		8,880		8,976		9,005				9,180		9,180
(incl.) Hikari Collaboration Model		5,912		6,917		7,854		8,744		9,574		10,145				11,894		11,894
NTT East		3,781		4,337		4,846		5,328		5,770		6,077				7,028		7,028
NTT West		2,131		2,580		3,008		3,416		3,804		4,069				4,866		4,866
Hikari Denwa ⁽⁶⁾		17,451		17,545		17,655		17,759		17,862		17,924				18,039		17,988
NTT East		9,180		9,242		9,311		9,369		9,433		9,478				9,569		9,569
NTT West		8,271		8,302		8,344		8,390		8,430		8,447				8,470		8,419
Conventional Leased Circuit Services		231		229		227		225		224		222				218		218
NTT East		112		111		110		109		109		108				105		105
NTT West		118		118		117		116		115		115				113		113
High Speed Digital Services		114		112		110		108		106		105				100		100
NTT East		58		57		56		55		54		53				52		52
NTT West		56		55		54		53		52		52				48		48
NTT Group Major ISPs ⁽⁷⁾		11,360		11,328		11,303		11,231		11,189		11,157				11,015		11,031
(incl.) OCN		7,969		7,905		7,847		7,739		7,678		7,637				7,496		7,496
(incl.) Plala		3,024		3,047		3,075		3,106		3,124		3,135				3,130		3,130
Hikari TV		3,047		3,041		3,032		3,023		3,021		3,018				3,030		3,030
FLET’S TV Transmission Services ⁽⁶⁾		1,445		1,464		1,489		1,521		1,551		1,570				1,602		1,602
NTT East		917		926		939		951		963		972				981		981
NTT West		528		538		551		570		587		597				621		621
Mobile Telecommunications Services ⁽⁸⁾		71,614		72,943		73,588		74,880		75,114		75,361				76,200		77,100
(incl.) “Kake-hodai & Pake-aeru” billing plan		31,586		33,416		35,198		37,066		38,342		39,617				—		—
Telecommunications Services (LTE (Xi))		39,893		41,281		42,671		44,544		45,659		46,908				50,000		51,700
Telecommunications Services (FOMA (3G))		31,721		31,662		30,917		30,336		29,455		28,453				26,200		25,400
sp-mode		33,082		33,809		34,749		35,921		36,671		37,418				39,300		40,200
i-mode		18,136		17,416		16,503		15,493		14,662		13,809				11,900		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 “FLET’S Hikari (including Hikari Collaboration Model)” subscribers includes subscribers to “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, subscribers to “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Mytown Next,” “FLET’S Hikari Light” and “FLET’S 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 six months ended September 30, 2017 compared to the year ended March 31, 2017 for “FLET’S Hikari (including Hikari Collaboration Model)” are as follows: the numbers of new subscribers for NTT East and NTT West were 834 thousand lines and 644 thousand lines, respectively, for a total of 1,478 thousand lines; the numbers of new subscribers (excluding switchover lines) for the “Hikari Collaboration Model” for NTT East and NTT West were 598 thousand lines and 429 thousand lines, respectively, for a total of 1,027 thousand lines; and the numbers of switchover lines for NTT East and NTT West were 502 thousand lines and 449 thousand lines, respectively, for a total of 951 thousand lines.
	(5)	The comparative forecast for the year ending March 31, 2018 (Revised Forecast) compared to the results for the year ended March 31, 2017 for “FLET’S 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 “FLET’S 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 Group’s fixed-line business, ARPU is calculated by dividing revenue items included in the operating revenues of NTT Group’s regional communications business segment, that is, fixed-line (telephone subscriber lines and INS-NET) and FLET’S Hikari, by the number of active subscribers to the relevant services.

In the case of NTT Group’s 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 Group’s ARPU figures are based on its financial results comprising its U.S. GAAP results of operations.


	(Yen)
	FY 2016												FY 2017									FY 2017 (E)		[Ref.] FY 2017 (E)
	Three Months Ended June 30		Three Months Ended September 30		Six Months Ended September 30		Three Months Ended December 31		Three Months Ended March 31		Year Ended March 31		Three Months Ended June 30		Three Months Ended September 30		Six Months Ended September 30		Three Months Ended December 31	Three Months Ended March 31	Year Ended March 31	Year Ending March 31 (Revised Forecast)		Year Ending March 31 (Previously Announced Forecast)
NTT East ^{(1)(2)(3)(4)(5)}
Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines)		2,620		2,620		2,620		2,620		2,590		2,610		2,580		2,580		2,580					2,570		2,570
FLET’S Hikari ARPU ⁽⁶⁾		5,340		5,280		5,310		5,230		5,170		5,250		5,120		5,090		5,100					5,050		5,050
Basic Monthly Charge		3,750		3,720		3,730		3,690		3,670		3,700		3,640		3,640		3,630					3,600		3,600
Optional Services		1,590		1,560		1,580		1,540		1,500		1,550		1,480		1,450		1,470					1,450		1,450
NTT West ^{(1)(2)(3)(4)(5)}
Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines)		2,580		2,580		2,580		2,580		2,560		2,580		2,540		2,550		2,540					2,550		2,550
FLET’S Hikari ARPU ⁽⁶⁾		5,350		5,300		5,330		5,260		5,210		5,280		5,160		5,110		5,140					5,080		5,080
Basic Monthly Charge		3,640		3,620		3,640		3,590		3,570		3,610		3,550		3,510		3,530					3,490		3,490
Optional Services		1,710		1,680		1,690		1,670		1,640		1,670		1,610		1,600		1,610					1,590		1,590
NTT DOCOMO ^(7)(8)(9)
Aggregate ARPU		4,330		4,420		4,380		4,450		4,550		4,430		4,600		4,710		4,650					4,670		4,700
Voice ARPU (LTE (Xi) + FOMA (3G))		1,240		1,250		1,240		1,280		1,220		1,250		1,330		1,390		1,360					1,360		1,350
Data ARPU		3,090		3,170		3,140		3,170		3,330		3,180		3,270		3,320		3,290					3,310		3,350
Packet ARPU (LTE (Xi) + FOMA (3G))		2,960		2,990		2,980		2,960		3,080		2,990		2,970		2,990		2,980					2,970		3,010
“docomo Hikari” ARPU		130		180		160		210		250		190		300		330		310					340		340


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 “FLET’S ADSL” and “FLET’S ISDN,” which are included in operating revenues from IP Services.
		b. FLET’S Hikari ARPU: Calculated based on revenues from “FLET’S Hikari” (including “FLET’S 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 “FLET’S Hikari” optional services, which are included in Supplementary Business revenues.
		- “FLET’S Hikari” includes “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, and “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Mytown Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West. In addition, “FLET’S Hikari” also includes the “Hikari Collaboration Model,” the wholesale provision of services to service providers by NTT East and NTT West.
		- “FLET’S 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 FLET’S 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
		- Six-month Results (from April to September): Sum of number of active subscribers* for each month from April to September
		- FY Results: Sum of number of active subscribers* for each month from April to March
		- FY Forecast (Previously Announced 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
		- FY Forecast (Revised Forecast): Sum of number of active subscribers* for each month from April to September and sum of the average expected active number of subscribers* from October to March ((number of subscribers at September 30, 2017 + number of expected subscribers at March 31, 2018)/2)x6
		*active subscribers = (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 FLET’S Hikari ARPU, the number of subscribers is determined based on the number of FLET’S Hikari subscribers, which includes subscribers to “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, subscribers to “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Mytown Next,” “FLET’S Hikari Light” and “FLET’S 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
		- Six-month Results (from April to September): Sum of number of active users* for each month from April to September
		- FY Results/FY Forecast (Previously Announced Forecast/Revised Forecast): Sum of number of active users/expected number of active users for each month from April to March
		*active users = (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)		[Ref.] 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 (Revised Forecast)		As of March 31 (Previously Announced Forecast)
NTT Consolidated ⁽¹⁾		248,650		248,650		280,600		274,850		280,850		283,400				281,750		281,350
Regional communications business		67,400		67,300		73,700		68,250		70,000		70,300				68,250		67,150
Long distance and international communications business		45,150		44,450		44,050		43,850		43,850		44,200				44,500		45,850
Mobile communications business		27,500		27,450		27,400		26,750		28,150		28,050				27,750		28,050
Data communications business		83,200		84,000		109,950		111,650		113,950		115,900				117,000		115,950
Other business		25,400		25,450		25,500		24,350		24,900		24,950				24,250		24,350
Core Group Companies ⁽¹⁾
NTT (Holding Company)		2,800		2,800		2,750		2,700		2,750		2,700				2,650		2,700
NTT East		5,200		4,950		4,950		4,850		5,200		4,800				4,650		4,800
NTT West		4,600		4,450		4,450		4,400		4,550		4,000				3,900		4,300
NTT Communications		6,550		6,450		6,450		6,350		6,400		6,400				6,300		6,300
NTT DOCOMO (Consolidated)		27,500		27,450		27,400		26,750		28,150		28,050				27,750		28,050
NTT DATA (Consolidated)		83,200		84,000		109,950		111,650		113,950		115,900				117,000		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 –

Comprehensive income (loss) attributable to NTT:

For the six months ended September 30, 2017: 562,436 million yen 76.2%

For the six months ended September 30, 2016: 319,189 million yen (3.0)%

Percentages above represent changes from the corresponding period of the previous fiscal year.