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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Nippon Tel.& T. | LSE:NPN | London | Ordinary Share | JP3735400008 | NPV |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 3,910.3704 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:8822X Nippon Telegraph and Telephone Corp 03 February 2006 Outline of Consolidated Financial Results February 3, 2006 For the Nine Months Ended December 31, 2005 (U.S. GAAP) Name of registrant: Nippon Telegraph and Telephone Corporation Code No.: 9432 Stock exchanges on which the Company's shares are listed: Tokyo, Osaka, Nagoya, Fukuoka and Sapporo Address of principal executive office: Tokyo, Japan (URL http://www.ntt.co.jp/ir/) Representative: Norio Wada, President Contact: Shigehito Katsuki, Head of IR, Department 4/ TEL(03)5205-5581 1. Notes Related to the Preparation of the Quarterly Consolidated Financial Statements (1) Adoption of simplified accounting method: Yes Income taxes are calculated using an estimated annual income tax rate based on the statutory tax rate. (2) Change in accounting method from the most recent fiscal year: No (3) Change in number of consolidated subsidiaries and affiliated companies accounted for under the equity method: Yes Number of consolidated subsidiaries added: 68 Number of companies accounted for under the equity method added: 9 Number of consolidated subsidiaries removed: 46 Number of companies accounted for under the equity method removed: 54 2. Consolidated Financial Results for the Nine Months Ended December 31, 2005 (April 1, 2005 - December 31, 2005) Amounts are rounded off to nearest million yen throughout this report. (1) Consolidated Results of (Millions of yen, except per share amounts) Operations ------------------------------------------------------------------------------- Operating Revenues Operating Income Income (Loss) ------------------------ ----------------------- before Income Taxes -------------------- Nine months ended December 31, 2005 7,915,531 (0.9 %) 1,017,084 (10.1 %) 1,127,864 (31.1 %) Nine months ended December 31, 2004 7,987,506 (2.6 %) 1,131,190 - % 1,637,247 - % Year ended March 31, 2005 10,805,868 1,211,201 1,723,312 Net Income (Loss) Earnings (Loss) per Diluted Earnings per ------------------------ Share Share ----------------------- --------------------- Nine months ended December 31, 2005 477,766 (31.6 %) 33,003.04 (yen ) - (yen ) Nine months ended December 31, 2004 698,448 - % 44,627.50 (yen ) - (yen ) Year ended March 31, 2005 710,184 45,891.26 (yen ) - (yen ) Notes: 1. Percentages above represent changes from the corresponding previous period. Since the consolidated financial information (except Operating Revenues) for the nine months ended December 31, 2003 was not prepared, year-on-year comparisons for the nine months ended December 31, 2004 are not available. 2. Weighted average number of shares outstanding (consolidated): For the nine months ended December 31, 2005: 14,476,423 shares For the nine months ended December 31, 2004: 15,650,618 shares For the year ended March 31, 2005: 15,475,366 shares (2) Consolidated Financial (Millions of yen, except per share amounts) Position --------------------------------------------------------------------------- Total Shareholders' Equity Ratio Shareholders' Assets Equity Equity ---------- (Ratio of ------------ Shareholders' Equity per Share to Total Assets) ------------ December 31, 2005 18,837,271 6,712,238 35.6 % 485,616.19 (yen) December 31, 2004 19,027,011 6,735,092 35.4 % 450,808.74 (yen) ---------- ------------ ------------ ------------ ----- March 31, 2005 19,098,584 6,768,603 35.4 % 453,059.74 (yen) ------ Note: Number of shares outstanding at end of period December 31, 13,822,105 shares (consolidated): 2005: December 31, 14,940,021 shares 2004: March 31, 2005: 14,939,758 shares (3) Consolidated Cash Flows (Millions of yen) ------------------------------------------------------------------- Cash flows Cash flows Cash flows Cash and from from from Cash Operating Investing Financing Equivalents Activities Activities Activities ---------- ---------- ---------- at End of Period ----------- Nine months ended December 31, 2005 2,052,301 (1,718,874 ) (692,491 ) 1,026,856 Nine months ended December 31, 2004 1,638,636 (1,230,493 ) (862,596 ) 978,697 ---------- ---------- - ---------- - ----------- Year ended March 31, 2005 2,829,813 (1,768,361 ) (1,111,963 ) 1,381,959 -1- -------------------------------------------------------------------------------- 3. Consolidated Financial Results Forecasts for the Year Ending March 31, 2006 (April 1, 2005 - March 31, 2006) (Millions of yen) ---------------------------------------- Operating Income Net Revenues Income ---------- before ------- Income Taxes --------- Year ending March 31, 2006 10,705,000 1,255,000 525,000 (Reference) Expected Earnings per Share (Year ending March 31, 2006): 37,982.64 yen ------ Note: Forecasts for the fiscal year ending March 31, 2006 have never been changed from those announced on November 9, 2005. With regard to the assumptions and other related matters concerning the above estimated results, please refer to page 15. * Consolidated financial statements are unaudited. -2- -------------------------------------------------------------------------------- 1. Consolidated Balance Sheets (Millions of yen) ---------------------------------------------- March 31, December Increase 2005 31, 2005 ----------- ----------- (Decrease) ---------- ASSETS Current assets: Cash and cash equivalents 1,381,959 1,026,856 (355,103 ) Short-term investments 264,455 191,454 (73,001 ) Notes and accounts receivable, trade 1,846,176 2,050,818 204,642 Allowance for doubtful accounts (35,912 ) (33,471 ) 2,441 Inventories 284,826 327,375 42,549 Prepaid expenses and other current assets 453,173 372,131 (81,042 ) Deferred income taxes 321,936 269,037 (52,899 ) Total current assets 4,516,613 4,204,200 (312,413 ) Property, plant and equipment: Telecommunications equipment 13,945,449 14,270,564 325,115 Telecommunications service lines 12,865,704 13,058,219 192,515 Buildings and structures 5,602,881 5,650,956 48,075 Machinery, vessels and tools 1,918,728 1,875,825 (42,903 ) Land 837,103 846,310 9,207 Construction in progress 258,455 311,592 53,137 Accumulated depreciation (24,947,768 ) (25,597,612 ) (649,844 ) Total property, plant and equipment 10,480,552 10,415,854 (64,698 ) Investments and other assets: Investments in affiliated companies 178,033 271,594 93,561 Marketable securities and other investments 438,159 572,436 134,277 Goodwill, net 320,536 338,571 18,035 Other intangibles, net 1,329,631 1,330,645 1,014 Other assets 707,543 656,097 (51,446 ) Deferred income taxes 1,127,517 1,047,874 (79,643 ) Total investments and other assets 4,101,419 4,217,217 115,798 ----------- - ----------- - ---------- - TOTAL ASSETS 19,098,584 18,837,271 (261,313 ) ----------- - ----------- - ---------- - -3- -------------------------------------------------------------------------------- (Millions of yen) -------------------------------------------- March 31, December Increase 2005 31, 2005 (Decrease) ---------- ---------- ---------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings 422,886 574,145 151,259 Current portion of long-term debt 779,198 918,230 139,032 Accounts payable, trade 1,465,229 1,273,805 (191,424 ) Accrued payroll 493,935 325,205 (168,730 ) Accrued interest 18,200 19,176 976 Accrued taxes on income 115,084 136,995 21,911 Accrued consumption tax 16,034 44,201 28,167 Advances received 67,389 57,990 (9,399 ) Other 301,624 329,386 27,762 Total current liabilities 3,679,579 3,679,133 (446 ) Long-term liabilities: Long-term debt 4,323,751 4,125,317 (198,434 ) Obligations under capital leases 187,845 126,100 (61,745 ) Liability for employees' severance payments 1,861,073 1,864,234 3,161 Other 548,464 528,763 (19,701 ) Total long-term liabilities 6,921,133 6,644,414 (276,719 ) ---------- - ---------- - ---------- - Minority interest in consolidated subsidiaries 1,729,269 1,801,486 72,217 ---------- - ---------- - ---------- - SHAREHOLDERS' EQUITY: Common stock 937,950 937,950 - Additional paid-in capital 2,799,828 2,843,108 43,280 Retained earnings 3,334,866 3,726,346 391,480 Accumulated other comprehensive income (loss) 63,066 111,788 48,722 Treasury stock, at cost (367,107 ) (906,954 ) (539,847 ) Total shareholders' equity 6,768,603 6,712,238 (56,365 ) ---------- - ---------- - ---------- - TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 19,098,584 18,837,271 (261,313 ) ---------- - ---------- - ---------- - -4- -------------------------------------------------------------------------------- 2. Consolidated Statements of Income (Millions of yen) ----------------------------------------------------------- Nine Nine Increase Year ended months months (Decrease) March 31, ended ended ---------- 2005 December December ---------- 31, 2004 31, 2005 --------- --------- Operating revenues: Fixed voice related services 2,713,829 2,549,028 (164,801 ) 3,578,092 Mobile voice related services 2,422,220 2,365,571 (56,649 ) 3,216,107 IP/packet communications services 1,314,378 1,440,260 125,882 1,772,737 Sales of telecommunications equipment 510,507 443,059 (67,448 ) 688,083 System integration 578,956 620,989 42,033 910,273 Other 447,616 496,624 49,008 640,576 Total operating revenues 7,987,506 7,915,531 (71,975 ) 10,805,868 Operating expenses: Cost of services (exclusive of items shown 1,687,657 1,642,990 (44,667 ) 2,349,151 separately below) Cost of equipment sold (exclusive of items shown 920,552 922,252 1,700 1,260,252 separately below) Cost of system integration (exclusive of items shown 358,902 381,831 22,929 592,035 separately below) Depreciation and amortization 1,588,944 1,551,929 (37,015 ) 2,141,720 Impairment loss - 3,746 3,746 44,310 Selling, general and administrative expenses 2,300,261 2,395,699 95,438 3,207,199 Total operating expenses 6,856,316 6,898,447 42,131 9,594,667 Operating income 1,131,190 1,017,084 (114,106 ) 1,211,201 Other income (expenses): Interest and amortization of bond discounts and (70,952 ) (58,559 ) 12,393 (93,966 ) issue costs Interest income 19,134 23,569 4,435 26,288 Gains on sales of subsidiary stock 26,984 708 (26,276 ) 26,984 Gains on sales of investments in affiliated company 501,781 61,962 (439,819 ) 508,492 Other, net 29,110 83,100 53,990 44,313 Total other income and expenses 506,057 110,780 (395,277 ) 512,111 Income (loss) before income taxes 1,637,247 1,127,864 (509,383 ) 1,723,312 Income tax expense (benefit) 652,738 426,859 (225,879 ) 713,918 Income (loss) before minority interest and equity in 984,509 701,005 (283,504 ) 1,009,394 earnings (losses) of affiliated companies Minority interest in consolidated subsidiaries 289,540 203,444 (86,096 ) 290,225 Equity in earnings (losses) of affiliated companies 3,479 (19,795 ) (23,274 ) (8,985 ) Net income (loss) 698,448 477,766 (220,682 ) 710,184 -5- -------------------------------------------------------------------------------- 3. Consolidated Statements of Shareholders' Equity (Millions of yen) ---------------------------------------------------------- Nine Nine Increase Year months months ended ended ended (Decrease) December December ---------- March 31, 31, 2004 31, 2005 2005 --------- --------- --------- Common stock: At beginning of period 937,950 937,950 - 937,950 At end of period 937,950 937,950 - 937,950 Additional paid-in capital: At beginning of period 2,722,092 2,799,828 77,736 2,722,092 Increase in interest of investee 76,317 43,280 (33,037 ) 77,736 At end of period 2,798,409 2,843,108 44,699 2,799,828 Retained earnings: At beginning of period 2,710,805 3,334,866 624,061 2,710,805 Appropriations - Cash dividends (39,353 ) (44,819 ) (5,466 ) (39,353 ) Interim distribution - Cash dividends (47,222 ) (41,467 ) 5,755 (47,222 ) Net income (loss) 698,448 477,766 (220,682 ) 710,184 Other 452 - (452 ) 452 At end of period 3,323,130 3,726,346 403,216 3,334,866 Accumulated comprehensive income (loss): At beginning of period 27,129 63,066 35,937 27,129 Other comprehensive income (loss) 15,463 48,722 33,259 35,937 At end of period 42,592 111,788 69,196 63,066 Treasury stock, at cost At beginning of period (4 ) (367,107 ) (367,103 ) (4 ) Net change in treasury stock (366,985 ) (539,847 ) (172,862 ) (367,103 ) At end of period (366,989 ) (906,954 ) (539,965 ) (367,107 ) Shareholders' equity at end of period 6,735,092 6,712,238 (22,854 ) 6,768,603 Summary of total comprehensive income (loss): Net income (loss) 698,448 477,766 (220,682 ) 710,184 Other comprehensive income (loss) 15,463 48,722 33,259 35,937 Comprehensive income (loss) 713,911 526,488 (187,423 ) 746,121 -6- -------------------------------------------------------------------------------- 4. Consolidated Statements of Cash Flows (Millions of yen) ------------------------------------------------------------- Nine Nine Increase Year ended months months March 31, ended ended (Decrease) 2005 December December ---------- ---------- 31, 2004 31, 2005 ---------- ---------- I Cash flows from operating activities: Net income (loss) 698,448 477,766 (220,682 ) (710,184 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities- Depreciation and amortization 1,588,944 1,551,929 (37,015 ) (2,141,720 ) Impairment loss - 3,746 3,746 44,310 Minority interest in consolidated subsidiaries 289,540 203,444 (86,096 ) 290,225 Loss on disposal of property, plant and equipment 118,344 84,721 (33,623 ) (186,674 ) Gains on sales of subsidiary stock (26,984 ) (708 ) 26,276 (26,984 ) Gains on sales of investments in affiliated company (501,781 ) (61,962 ) 439,819 (508,492 ) Equity in (earnings) losses of affiliated companies (3,479 ) 19,795 23,274 (8,985 ) (Increase) decrease in notes and accounts (214,343 ) (202,865 ) 11,478 (37,130 ) receivable, trade (Increase) decrease in inventories (94,895 ) (42,460 ) 52,435 (46,771 ) (Increase) decrease in other current assets (133,266 ) (10,592 ) 122,674 (66,897 ) Increase (decrease) in accounts payable, trade and (213,420 ) (240,846 ) (27,426 ) (29,595 ) accrued payroll Increase (decrease) in accrued consumption tax (16,587 ) 28,011 44,598 (35,483 ) Increase (decrease) in accrued interest 1,493 669 (824 ) (782 ) Increase (decrease) in advances received (1,205 ) (9,906 ) (8,701 ) 8,292 Increase (decrease) in accrued taxes on income (269,140 ) 21,721 290,861 (231,037 ) Increase (decrease) in other current liabilities 33,074 41,003 7,929 65,114 Increase (decrease) in liability for employees' 18,253 7,227 (11,026 ) (95,606 ) severance payments, net of deferred pension costs Increase (decrease) in other long-term liabilities (4,194 ) (12,308 ) (8,114 ) (49,903 ) Other 369,834 193,916 (175,918 ) 443,799 ---------- - ---------- - ---------- - ---------- - Net cash provided by operating activities 1,638,636 2,052,301 413,665 2,829,813 II Cash flows from investing activities: Payments for property, plant and equipment (1,263,055 ) (1,419,669 ) (156,614 ) (1,610,991 ) Proceeds from sale of property, plant and equipment 33,637 23,145 (10,492 ) 54,095 Payments for purchase of non-current investments (37,072 ) (240,376 ) (203,304 ) (195,892 ) Proceeds from sale of non-current investments 757,370 54,230 (703,140 ) 776,369 Payments for purchase of short-term investments (361,299 ) (251,854 ) 109,445 (361,850 ) Proceeds from redemption of short-term investments - 366,740 366,740 113,576 Acquisition of intangible and other assets (360,074 ) (251,090 ) 108,984 (543,668 ) ---------- - ---------- - ---------- - ---------- - Net cash used in investing activities (1,230,493 ) (1,718,874 ) (488,381 ) (1,768,361 ) III Cash flows from financing activities: Proceeds from issuance of long-term debt 283,609 318,398 34,789 343,814 Payments for settlement of long-term debt (622,591 ) (375,037 ) 247,554 (893,682 ) Dividends paid (86,575 ) (86,286 ) 289 (86,575 ) Payments to acquire treasury stock (366,985 ) (539,847 ) (172,862 ) (367,103 ) Payments for acquisition of subsidiary stocks from (65,824 ) (30,321 ) 35,503 (105,363 ) minority shareholders Net increase (decrease) in short-term borrowings and (4,230 ) 20,602 24,832 (3,054 ) other ---------- - ---------- - ---------- - ---------- - Net cash provided by (used in) financing activities (862,596 ) (692,491 ) 170,105 (1,111,963 ) IV Effect of exchange rate changes on cash and 1,729 3,961 2,232 1,049 cash equivalents ---------- - ---------- - ---------- - ---------- - V Net increase (decrease) in cash and cash (452,724 ) (355,103 ) 97,621 (49,462 ) equivalents VI Cash and cash equivalents at beginning of 1,431,421 1,381,959 (49,462 ) 1,431,421 period VII Cash and cash equivalents at end of period 978,697 1,026,856 48,159 1,381,959 ---------- - ---------- - ---------- - ---------- - -7- -------------------------------------------------------------------------------- (Note) Significant Matters Pertaining to the Preparation of Consolidated Financial Statements The consolidated financial statements of NTT have been prepared in conformity with accounting principles generally accepted in the United States of America (Accounting Principles Board Opinions, Statements of Financial Accounting Standards, etc). Application of New Accounting Standard Accounting for Conditional Asset Retirement Obligations Effective April 1, 2005, NTT Group adopted the Financial Accounting Standards Board ("FASB") Interpretation No. 47 ("FIN 47") "Accounting for Conditional Asset Retirement Obligations - an interpretation of FASB Statement No. 143." FIN 47 provides guidance relating to the identification of and financial reporting for legal obligations to perform an asset retirement activity. The Interpretation requires recognition of a liability for the fair value of a conditional asset retirement obligation when incurred if the liability"s fair value can be reasonably estimated. The adoption of FIN 47 did not have an impact on the results of operations or the financial position of NTT Group. (Reference) Details of "Operating revenues" classified by the corresponding previous period's service categories (Millions of yen) --------------------------- Nine Nine months months ended ended December December 31, 2004 31, 2005 --------- --------- Fixed voice transmission services 2,245,015 2,088,118 Mobile voice transmission services 2,375,094 2,340,825 Data transmission services 1,181,745 1,256,169 Leased circuit 323,381 355,805 Sales of telecommunications equipment 510,507 443,059 System integration 578,956 620,989 Other 772,808 810,566 --------- --------- Total 7,987,506 7,915,531 --------- --------- -8- -------------------------------------------------------------------------------- 5. Business Segments (Consolidated) 1. Sales and operating revenues (Millions of yen) ------------------------------------------------------------- Nine Nine Increase Year ended months months (Decrease) ended ended ---------- March 31, 2005 December December ---------- 31, 2004 31, 2005 ---------- ---------- Regional communications business Customers 2,919,445 2,822,202 (97,243 ) 3,937,789 Intersegment 471,209 476,540 5,331 651,772 ---------- - ---------- - ---------- - ---------- Total 3,390,654 3,298,742 (91,912 ) 4,589,561 ---------- - ---------- - ---------- - ---------- Long distance and international communications business Customers 765,119 796,850 31,731 1,045,218 Intersegment 85,264 81,154 (4,110 ) 119,580 ---------- - ---------- - ---------- - ---------- Total 850,383 878,004 27,621 1,164,798 ---------- - ---------- - ---------- - ---------- Mobile communications business Customers 3,626,333 3,542,858 (83,475 ) 4,821,941 Intersegment 16,765 39,390 22,625 22,669 ---------- - ---------- - ---------- - ---------- Total 3,643,098 3,582,248 (60,850 ) 4,844,610 ---------- - ---------- - ---------- - ---------- Data communications business Customers 481,689 503,670 21,981 721,816 Intersegment 74,307 80,478 6,171 110,804 ---------- - ---------- - ---------- - ---------- Total 555,996 584,148 28,152 832,620 ---------- - ---------- - ---------- - ---------- Other Customers 194,920 249,951 55,031 279,104 Intersegment 674,987 667,724 (7,263 ) 946,619 ---------- - ---------- - ---------- - ---------- Total 869,907 917,675 47,768 1,225,723 ---------- - ---------- - ---------- - ---------- Elimination of intersegment (1,322,532 ) (1,345,286 ) (22,754 ) (1,851,444 ) ---------- - ---------- - ---------- - ---------- Consolidated total 7,987,506 7,915,531 (71,975 ) 10,805,868 ---------- - ---------- - ---------- - ---------- 2. Segment profit or loss (Millions of yen) --------------------------------------------------------- Nine Nine Increase Year months months (Decrease) ended ended ended ---------- March 31, December December 2005 31, 2004 31, 2005 --------- --------- --------- Operating income Regional communications business 217,361 169,715 (47,646 ) 246,759 Long distance and international communications business 63,464 59,856 (3,608 ) 62,329 Mobile communications business 751,350 693,480 (57,870 ) 784,166 Data communications business 29,328 23,919 (5,409 ) 36,894 Other 55,268 58,390 3,122 37,554 --------- --------- ---------- - --------- Total 1,116,771 1,005,360 (111,411 ) 1,167,702 --------- --------- ---------- - --------- Elimination of intersegment 14,419 11,724 (2,695 ) 43,499 --------- --------- ---------- - --------- Consolidated total 1,131,190 1,017,084 (114,106 ) 1,211,201 --------- --------- ---------- - --------- -9- -------------------------------------------------------------------------------- Outline of Non-consolidated Financial Results February 3, 2006 For the Nine Months Ended December 31, 2005 (Japanese GAAP) Name of registrant: Nippon Telegraph and Telephone Corporation Code No.: 9432 Stock exchanges on which the Company's shares are listed: Tokyo, Osaka, Nagoya, Fukuoka and Sapporo Address of principal executive office: Tokyo, Japan (URL http://www.ntt.co.jp/ir/) Representative: Norio Wada, President Contact: Shigehito Katsuki, Head of IR, Department 4/ TEL (03) 5205-5581 1. Notes Related to the Preparation of the Quarterly Non-consolidated Financial Statements (1) Adoption of simplified accounting method: Yes Income taxes are calculated using an estimated annual income tax rate based on the statutory tax rate. (2) Change in accounting method from the most recent fiscal year: No 2. Non-consolidated Financial Results for the Nine Months Ended December 31, 2005 (April 1, 2005 - December 31, 2005) Amounts are rounded off per 1 million yen throughout this report. (1) Non-consolidated Results of Operations (Millions of yen, except per share amounts) ----------------------------------------------------------------- Operating Operating Income Recurring Profit Revenues ------------------- --------------------- -------------- Nine months ended December 31, 2005 291,777 5.7 % 176,607 10.4 % 182,261 9.9 % Nine months ended December 31, 2004 276,026 36.2 % 160,041 - % 165,908 - % ------- ------- --------- Year ended March 31, 2005 323,261 143,709 151,700 Net Income Earnings per Share ------------------- --------------------- Nine months ended December 31, 2005 401,945 (13.4 %) 27,765.55 (yen ) Nine months ended December 31, 2004 464,368 - % 29,670.93 (yen ) ------- --------- Year ended March 31, 2005 455,660 29,439.71 (yen ) ------ Notes: 1. Percentages above represent changes from the corresponding previous period. Since the non-consolidated financial information (except Operating Revenues) for the nine months ended December 31, 2003 was not prepared, year-on-year comparisons for the nine months ended December 31, 2004 are not available. 2. Weighted average number of shares outstanding (non-consolidated): For the nine months ended December 31, 2005: 14,476,423 shares For the nine months ended December 31, 2004: 15,650,618 shares For the year ended March 31, 2005: 15,475,366 shares (2) Non-consolidated Financial (Millions of yen, except per share amounts) Position -------------------------------------------------------------------------- Total Shareholders Equity Ratio Shareholders' Assets ' --------- Equity (Ratio of Equity ------------ Shareholders' per Share ------------ Equity to Total Assets) ------------ December 31, 2005 8,290,560 4,952,947 59.7 % 358,335.24 (yen) December 31, 2004 8,507,630 5,179,426 60.9 % 346,681.37 (yen) --------- ------------ ------------ - ------------ --- March 31, 2005 8,401,448 5,170,267 61.5 % 346,069.68 (yen) ------ Note: Number of shares outstanding at end of period December 31, 2005: 13,822,105 shares (non-consolidated): December 31, 2004: 14,940,021 shares March 31, 2005: 14,939,758 shares 3. Non-consolidated Financial Results Forecasts for the Year Ending March 31, 2006 (April 1, 2005 - March 31, 2006) (Millions of yen) --------------------------------------- Operating Recurring Net Revenues Profit Income --------- --------- ------- Year ending March 31, 2006 337,000 174,000 395,000 (Reference) Expected Earnings per Share (Year ending March 31, 2006): 28,577.41 yen ------ Note: Forecasts for the fiscal year ending March 31, 2006 have never been changed from those announced on November 9, 2005. With regard to the assumptions and other related matters concerning the above estimated results, please refer to page 15. * Non-consolidated financial statements are unaudited. -10- -------------------------------------------------------------------------------- 1. Non-Consolidated Comparative Balance Sheets (Millions of yen) ---------------------------------------- March 31, December Increase 2005 31, 2005 (Decrease) --------- --------- ---------- ASSETS Current assets: Cash and bank deposits 115,806 11,495 (104,307 ) Accounts receivable, trade 1,567 329 (1,237 ) Supplies 213 256 42 Short-term loan receivable 426,792 448,426 21,633 Other current assets 124,039 86,954 (37,085 ) Total current assets 668,415 547,462 (120,952 ) Fixed assets: Property, plant and equipment 217,430 208,044 (9,385 ) Intangible fixed assets 20,892 22,220 1,327 Investments and other assets Investment securities 4,820,173 4,825,978 5,805 Long-term loan receivable to subsidiaries 2,617,890 2,634,856 16,966 Other investments 55,994 51,262 (4,732 ) Total investments and other assets 7,494,057 7,512,098 18,040 Total fixed assets 7,732,381 7,742,363 9,982 Deferred assets 652 734 82 --------- --------- ---------- - TOTAL ASSETS 8,401,448 8,290,560 (110,888 ) --------- --------- ---------- - -11- -------------------------------------------------------------------------------- (Millions of yen) -------------------------------------------- March 31, December Increase 2005 31, 2005 (Decrease) --------- --------- ---------- LIABILITIES Current liabilities: Accounts payable, trade 1,135 264 (870 ) Short-term borrowings - 56,000 56,000 Current portion of corporate bonds 162,685 215,528 52,842 Current portion of long-term borrowings 256,244 203,784 (52,460 ) Accrued taxes on income 18,197 5,512 (12,684 ) Other current liabilities 146,807 113,658 (33,149 ) Total current liabilities 585,071 594,748 9,677 Long-term liabilities: Corporate bonds 1,614,827 1,679,422 64,595 Long-term borrowings 1,001,578 1,033,064 31,485 Liability for employees' severance payments 29,299 29,989 690 Other long-term liabilities 404 388 (16 ) Total long-term liabilities 2,646,110 2,742,864 96,754 --------- - --------- - ---------- - TOTAL LIABILITIES 3,231,181 3,337,612 106,431 --------- - --------- - ---------- - SHAREHOLDERS' EQUITY Common stock 937,950 937,950 - Capital surplus Additional paid-in capital 2,672,826 2,672,826 - Total capital surplus 2,672,826 2,672,826 - Earned surplus Legal reserve 135,333 135,333 - Voluntary reserve Reserve for special depreciation 2,394 530 (1,863 ) Other reserve 1,131,000 1,131,000 - Unappropriated retained earnings for the period 651,486 968,939 317,453 Total earned surplus 1,920,214 2,235,803 315,589 Net unrealized gains (losses) on securities 6,384 13,321 6,937 Treasury stock (367,107 ) (906,953 ) (539,846 ) --------- - --------- - ---------- - TOTAL SHAREHOLDERS' EQUITY 5,170,267 4,952,947 (217,319 ) --------- - --------- - ---------- - TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 8,401,448 8,290,560 (110,888 ) --------- - --------- - ---------- - -12- -------------------------------------------------------------------------------- 2. Non-Consolidated Comparative Statements of Income (Millions of yen) ---------------------------------------------------------- Nine Nine Increase Year months months (Decrease) ended ended ended ---------- March December December 31, 31, 2004 31, 2005 2005 --------- --------- ------- Operating revenues 276,026 291,777 15,751 323,261 Operating expenses 115,984 115,170 (813 ) 179,551 Operating income 160,041 176,607 16,565 143,709 Non-operating revenues: 52,780 47,928 (4,852 ) 69,483 Interest income 39,461 35,857 (3,604 ) 51,374 Lease income 10,233 9,109 (1,124 ) 13,636 Miscellaneous income 3,085 2,961 (124 ) 4,472 Non-operating expenses: 46,913 42,274 (4,639 ) 61,492 Interest expenses 13,454 13,333 (121 ) 17,915 Corporate bond interest expenses 28,134 23,055 (5,078 ) 35,794 Lease expenses 4,276 4,158 (117 ) 6,555 Miscellaneous expenses 1,048 1,726 678 1,226 Recurring profit 165,908 182,261 16,352 151,700 Special profits 350,659 250,666 (99,992 ) 350,659 Income before Income taxes 516,568 432,927 (83,640 ) 502,360 Corporation, inhabitant, and enterprise taxes 52,200 30,981 (21,218 ) 53,900 Deferred tax expenses (benefits) - - - (7,200 ) Net income 464,368 401,945 (62,422 ) 455,660 Unappropriated retained earnings brought forward 243,048 608,461 365,412 243,048 Interim dividends 47,222 41,467 (5,754 ) 47,222 Unappropriated retained earnings for the period 660,194 968,939 308,745 651,486 (Reference) Major components of operating revenues Dividends received 144,067 169,025 24,958 144,067 Revenues from Group management 15,698 15,211 (487 ) 20,931 Revenues from basic R&D 104,426 95,158 (9,267 ) 139,234 -13- -------------------------------------------------------------------------------- 3. Non-Consolidated Comparative Statements of Cash Flows (Millions of yen) ------------------------------------------------------------- Nine Nine Increase Year months months (Decrease) ended ended ended ---------- March 31, December December 2005 31, 2004 31, 2005 --------- --------- --------- I Cash flows from operating activities: Income before income taxes 516,568 432,927 (83,640 ) 502,360 Depreciation and amortization 25,277 22,075 (3,201 ) 32,823 Loss on disposal of property, plant and equipment 504 445 (59 ) 1,682 Dividends received (144,067 ) (169,025 ) (24,958 ) (144,067 ) Gains on sales of investments in affiliated (350,659 ) (250,666 ) 99,992 (350,659 ) company Increase (decrease) in liability for employees 1,306 690 (616 ) (194 ) ' severance payments (Increase) decrease in accounts receivable 56,048 42,224 (13,823 ) 19,011 Increase (decrease) in accounts payable and (86,069 ) (67,844 ) 18,224 (15,866 ) accrued expenses Increase (decrease) in accrued consumption tax 124 966 842 (990 ) payable Other (2,023 ) (5,787 ) (3,764 ) (2,981 ) --------- - --------- - ---------- - --------- - Sub-total 17,009 6,005 (11,004 ) 41,118 Interest and dividends received 183,202 204,738 21,535 196,270 Interest paid (41,087 ) (35,785 ) 5,301 (55,060 ) Income taxes received (paid) 3,156 (57,464 ) (60,621 ) 3,121 --------- - --------- - ---------- - --------- - Net cash provided by (used in) operating 162,281 117,493 (44,788 ) 185,449 activities II Cash flows from investing activities: Payments for property, plant and equipment (15,055 ) (18,220 ) (3,164 ) (22,357 ) Proceeds from sale of property, plant and 2 - (2 ) 617 equipment Acquisition of investment securities (17,348 ) (229 ) 17,119 (17,348 ) Proceeds from sale of investment securities 355,568 256,107 (99,460 ) 355,623 Payments for long-term loans (176,733 ) (261,896 ) (85,162 ) (216,733 ) Proceeds from long-term loans receivable 267,119 229,684 (37,435 ) 470,058 Other 5,020 (14 ) (5,034 ) 5,011 --------- - --------- - ---------- - --------- - Net cash provided by (used in) investing 418,572 205,431 (213,140 ) 574,871 activities III Cash flows from financing activities: Proceeds from issuance of long-term debt 196,148 311,724 115,575 236,148 Payments for settlement of long-term debt (284,284 ) (221,822 ) 62,461 (486,896 ) Net increase (decrease) in short-term borrowings - 109,000 109,000 - Dividends paid (86,575 ) (86,286 ) 288 (86,575 ) Payments to acquire treasury stock (366,984 ) (539,846 ) (172,862 ) (367,102 ) --------- - --------- - ---------- - --------- - Net cash provided by (used in) financing (541,695 ) (427,231 ) 114,464 (704,426 ) activities IV Net increase (decrease) in cash and cash 39,158 (104,307 ) (143,465 ) 55,894 equivalents V Cash and cash equivalents at beginning of 59,907 115,802 55,894 59,907 period --------- - --------- - ---------- - --------- - VI Cash and cash equivalents at end of period 99,066 11,495 (87,570 ) 115,802 --------- - --------- - ---------- - --------- - -14- -------------------------------------------------------------------------------- (Note) The forward-looking statements and projected figures on the future performance of NTT contained in this financial report are based on the judgments, evaluations, recognition of facts, and formulation of plans by the current management of NTT based on the information at their disposal. The projected figures in this report were derived using certain assumptions that are indispensable for making projections in addition to historical facts that have been ascertained and acknowledged accurately. In view of the element of uncertainty inherent in future projections, the possibility of fluctuations in its future business operations, the state of the economy in Japan and abroad, stock markets, and other circumstances, NTT's actual results could differ materially from the projected figures contained in this report. -15- -------------------------------------------------------------------------------- February 3, 2006 FOR IMMEDIATE RELEASE Financial Statements for the Third Quarter Ended December 31, 2005 The results of Nippon Telegraph and Telephone East Corporation (NTT East) for the Third Quarter ended December 31, 2005 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 Inquiries: Hiroshi Niitsu and Kenkichi Nakata Accounting Section, Finance Division NTT East Tel: (03) 5359-3331 E-mail: kessan@sinoa.east.ntt.co.jp -------------------------------------------------------------------------------- 1. Non-Consolidated Comparative Balance Sheets (Based on accounting principles generally accepted in Japan) (Millions of yen) -------------------------------------------- March 31, December Increase 2005 31, 2005 --------- --------- (Decrease) ---------- ASSETS Fixed assets: Fixed assets-telecommunications businesses Property, plant and equipment 2,968,134 2,933,412 (34,722 ) Machinery and equipment 580,807 558,542 (22,265 ) Antenna facilities 8,158 7,880 (277 ) Terminal equipment 30,769 43,489 12,719 Local line facilities 655,890 669,684 13,793 Long-distance line facilities 11,901 10,375 (1,525 ) Engineering facilities 766,392 740,267 (26,124 ) Submarine line facilities 1,050 885 (164 ) Buildings 622,535 620,665 (1,870 ) Construction in progress 28,245 28,873 628 Other 262,382 252,747 (9,634 ) Intangible fixed assets 105,746 97,978 (7,767 ) Total fixed assets-telecommunications businesses 3,073,880 3,031,391 (42,489 ) Investments and other assets Deferred income taxes 347,781 344, 574 (3,206 ) Other investments 84,291 83,784 (506 ) Allowance for doubtful accounts (2,122 ) (2,780 ) (657 ) Total investments and other assets 429,950 425,578 (4,371 ) Total fixed assets 3,503,830 3,456,970 (46,860 ) Current assets: Cash and bank deposits 107,637 91,568 (16,069 ) Notes receivable 131 30 (100 ) Accounts receivable, trade 370,104 369,522 (581 ) Supplies 29,475 32,599 3,123 Other current assets 81,202 70,486 (10,716 ) Allowance for doubtful accounts (4,082 ) (3,644 ) 438 Total current assets 584,469 560,563 (23,905 ) --------- - --------- - ---------- - TOTAL ASSETS 4,088,300 4,017,533 (70,766 ) --------- - --------- - ---------- - - 1 - -------------------------------------------------------------------------------- (Millions of yen) ---------------------------------------- March 31, December Increase 2005 31, 2005 --------- --------- (Decrease) ---------- LIABILITIES Long-term liabilities: Long-term borrowings from parent company 883,881 842,045 (41,836 ) Liability for employees' severance payments 656,004 636,497 (19,506 ) Other long-term liabilities 7,359 7,374 15 Total long-term liabilities 1,547,245 1,485,917 (61,328 ) Current liabilities: Current portion of long-term borrowings from parent company 144,171 142,454 (1,717 ) Accounts payable, trade 118,372 77,081 (41,290 ) Short-term borrowings - 40,000 40,000 Accounts payable, other 273,517 233,071 (40,446 ) Accrued taxes on income 2,676 *10,791 8,115 Other current liabilities 83,266 88,994 5,727 Total current liabilities 622,004 592,393 (29,610 ) --------- --------- ---------- - TOTAL LIABILITIES 2,169,249 2,078,310 (90,938 ) --------- --------- ---------- - SHAREHOLDERS' EQUITY Common stock 335,000 335,000 - Capital surplus Additional paid-in capital 1,499,726 1,499,726 - Total capital surplus 1,499,726 1,499,726 - Earned surplus Unappropriated retained earnings for the period 83,563 99,033 15,470 Total earned surplus 83,563 99,033 15,470 Net unrealized gains (losses) on securities 760 5,462 4,701 --------- --------- ---------- - TOTAL SHAREHOLDERS' EQUITY 1,919,050 1,939,222 20,172 --------- --------- ---------- - TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,088,300 4,017,533 (70,766 ) --------- --------- ---------- - ------ 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, 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) -------------------------------------------------------- Nine Nine Increase Year months months ended ended ended (Decrease) March 31, December December ---------- 2005 31, 2004 31, 2005 --------- --------- --------- Recurring profits and losses Operating revenues and expenses Telecommunications businesses Operating revenues 1,519,319 1,478,135 (41,183 ) 2,024,629 Operating expenses 1,436,761 1,412,755 (24,005 ) 1,937,555 Operating income from telecommunications 82,557 65,380 (17,177 ) 87,073 Related businesses Operating revenues 104,165 100,793 (3,372 ) 156,298 Operating expenses 101,159 99,416 (1,743 ) 155,638 Operating income from related businesses 3,005 1,376 (1,629 ) 660 Operating income 85,563 66,756 (18,807 ) 87,733 Non-Operating revenues and expenses Non-operating revenues: 42,092 46,926 4,833 61,006 Interest income 49 38 (10 ) 63 Lease income 36,850 41,597 4,746 53,563 Miscellaneous income 5,192 5,290 97 7,379 Non-operating expenses: 33,999 31,931 (2,067 ) 51,124 Interest expenses 13,425 12,417 (1,007 ) 17,628 Lease expenses 18,236 15,642 (2,594 ) 26,497 Miscellaneous expenses 2,337 3,871 1,534 6,997 Recurring profit 93,656 81,751 (11,905 ) 97,615 Special profits and losses Special profits 4,750 1,358 (3,391 ) 8,397 Special losses 5,052 - (5,052 ) 6,736 Income before Income taxes 93,354 83,109 (10,244 ) 99,276 Corporation, inhabitant, and enterprise taxes *38,200 *34,083 (4,116 ) (21,153 ) Deferred tax expenses (benefits) * - * - - 62,300 Net income 55,154 49,025 (6,128 ) 58,129 Unappropriated retained earnings brought forward 25,433 50,008 24,574 25,433 Unappropriated retained earnings for the period 80,587 99,033 18,445 83,563 ------ 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, 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) ---------------------------------------------------------------------- Nine Nine Increase Percent Year months months (Decrease) Increase ended ended ended ---------- (Decrease) December December ---------- March 31, 31, 31, 2005 ------- 2004 2005 --------- --------- Voice transmission services revenues 1,065,846 983,303 (82,542 ) (7.7 %) 1,401,433 (excluding the amounts of IP services revenues) Monthly charge revenues* 694,333 606,335 (87,998 ) (12.7 %) 903,629 Call rates revenues* 146,719 141,789 (4,929 ) (3.4 %) 190,405 Interconnection call revenues* 153,324 161,890 8,565 5.6 % 215,128 IP services revenues 153,080 197,423 44,343 29.0 % 211,357 Leased circuit services revenues (excluding 156,911 148,218 (8,692 ) (5.5 %) 208,730 the amounts of IP services revenues) Telegram services revenues 20,240 19,526 (713 ) (3.5 %) 27,201 Other telecommunications services revenues 123,240 129,663 6,422 5.2 % 175,907 --------- --------- ---------- - ------- -- --------- Telecommunications total revenues 1,519,319 1,478,135 (41,183 ) (2.7 %) 2,024,629 --------- --------- ---------- - -------- -- --------- Related business total revenues 104,165 100,793 (3,372 ) (3.2 %) 156,298 --------- --------- ---------- - ------- -- --------- Total operating revenues 1,623,485 1,578,929 (44,556 ) (2.7 %) 2,180,928 --------- --------- ---------- - ------- -- --------- ------ * Partial listing only - 4 - -------------------------------------------------------------------------------- 4. Non-Consolidated Comparative Statements of Cash Flows (Based on accounting principles generally accepted in Japan) (Millions of yen) ----------------------------------------------------------- Nine Nine Increase Year months months (Decrease) ended ended ended ---------- March 31, December December 2005 31, 31, --------- 2004 2005 -------- -------- I Cash flows from operating activities: Income before income taxes 93,354 83,109 (10,244 ) 99,276 Depreciation and amortization 355,550 362,537 6,986 483,027 Loss on disposal of property, plant and equipment 25,996 15,542 (10,453 ) 40,136 Increase (decrease) in liability for employees (15,894 ) (19,506 ) (3,612 ) (72,575 ) ' severance payments (Increase) decrease in accounts receivable (20,349 ) 2,302 22,652 12,725 (Increase) decrease in inventories (604 ) (3,123 ) (2,519 ) 1,171 Increase (decrease) in accounts payable and accrued (170,191 ) (98,090 ) 72,101 (83,952 ) expenses Increase (decrease) in accrued consumption tax 1,549 (164 ) (1,714 ) (158 ) payable Other (14,884 ) (55,000 ) (40,115 ) (13,159 ) -------- - -------- - ---------- - --------- - Sub-total 254,525 287,606 33,080 466,490 -------- - -------- - ---------- - --------- - Interest and dividends received 287 383 95 297 Interest paid (12,654 ) (11,938 ) 715 (17,771 ) Income taxes received (paid) (16,051 ) 21,195 37,247 (16,095 ) -------- - -------- - ---------- - --------- - Net cash provided by (used in) operating activities 226,107 297,246 71,139 432,922 -------- - -------- - ---------- - --------- - II Cash flows from investing activities: Payments for property, plant and equipment (299,320 ) (298,732 ) 587 (401,013 ) Proceeds from sale of property, plant and equipment 7,032 3,249 (3,782 ) 11,624 Acquisition of investment securities (6,360 ) (549 ) 5,810 (7,353 ) Proceeds from sale of investment securities 417 438 20 417 Other (3,803 ) 8,270 12,074 8,273 -------- - -------- - ---------- - --------- - Net cash provided by (used in) investing activities (302,034 ) (287,324 ) 14,710 (388,050 ) -------- - -------- - ---------- - --------- - III Cash flows from financing activities: Proceeds from issuance of long-term debt 17,950 35,000 17,050 17,950 Payments for settlement of long-term debt (73,907 ) (78,553 ) (4,646 ) (95,559 ) Net increase (decrease) in short-term borrowings 47,000 40,000 (7,000 ) - Dividends paid (32,495 ) (33,500 ) (1,005 ) (32,495 ) -------- - -------- - ---------- - --------- - Net cash provided by (used in) financing activities (41,452 ) (37,053 ) 4,398 (110,104 ) -------- - -------- - ---------- - --------- - IV Net increase (decrease) in cash and cash (117,380 ) (27,131 ) 90,249 (65,232 ) equivalents V Cash and cash equivalents at beginning of 186,287 121,055 (65,232 ) 186,287 period -------- - -------- - ---------- - --------- - VI Cash and cash equivalents at end of period 68,907 93,923 25,016 121,055 -------- - -------- - ---------- - --------- - - 5 - -------------------------------------------------------------------------------- February 3, 2006 FOR IMMEDIATE RELEASE Financial Statements for the Third Quarter Ended December 31, 2005 The results of Nippon Telegraph and Telephone West Corporation (NTT West) for the Third Quarter ended December 31, 2005 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. Revision of the business forecasts for the fiscal year ending March 31, 2006 Inquiries: Mr. Shinji Uchida or Mr. Kazunori Oonishi Accounting Section, Finance Division NTT West Tel: 06-4793-3141 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, December Increase 2005 31, 2005 (Decrease) --------- --------- ---------- ASSETS Fixed assets: Fixed assets-telecommunications businesses Property, plant and equipment 2,920,524 2,915,660 (4,864 ) Machinery and equipment 550,458 593,448 42,990 Antenna facilities 11,407 10,809 (597 ) Terminal equipment 27,847 30,495 2,647 Local line facilities 826,738 820,445 (6,293 ) Long-distance line facilities 8,497 7,567 (929 ) Engineering facilities 647,060 634,146 (12,913 ) Submarine line facilities 5,177 4,769 (407 ) Buildings 555,067 529,056 (26,011 ) Construction in progress 38,253 40,175 1,922 Other 250,017 244,746 (5,271 ) Intangible fixed assets 94,823 95,175 351 Total fixed assets-telecommunications businesses 3,015,348 3,010,835 (4,512 ) Investments and other assets Deferred income taxes 391,488 391,230 (257 ) Other investments 34,376 34,226 (150 ) Allowance for doubtful accounts (713 ) (1,683 ) (970 ) Total investments and other assets 425,151 423,772 (1,378 ) Total fixed assets 3,440,499 3,434,608 (5,891 ) Current assets: Cash and bank deposits 111,479 88,211 (23,268 ) Notes receivable 14 26 11 Accounts receivable, trade 379,119 373,117 (6,002 ) Supplies 34,833 37,421 2,587 Other current assets 118,116 79,506 (38,610 ) Allowance for doubtful accounts (3,233 ) (2,562 ) 670 Total current assets 640,329 575,719 (64,610 ) --------- - --------- - ---------- - TOTAL ASSETS 4,080,829 4,010,327 (70,501 ) --------- - --------- - ---------- - - 1 - -------------------------------------------------------------------------------- (Millions of yen) ---------------------------------------- March 31, December Increase 2005 31, 2005 (Decrease) --------- --------- ---------- LIABILITIES Long-term liabilities: Long-term borrowings from parent company 1,055,194 1,102,252 47,057 Liability for employees' severance payments 710,090 689,986 (20,104 ) Other long-term liabilities 10,112 12,310 2,198 Total long-term liabilities 1,775,397 1,804,549 29,152 Current liabilities: Current portion of long-term borrowings from parent company 200,090 210,908 10,817 Accounts payable, trade 167,218 116,499 (50,719 ) Accrued taxes on income 2,481 8,042 5,560 Other current liabilities 384,900 302,268 (82,631 ) Total current liabilities 754,690 637,718 (116,972 ) --------- --------- ---------- - TOTAL LIABILITIES 2,530,087 2,442,267 (87,820 ) --------- --------- ---------- - SHAREHOLDERS' EQUITY Common stock 312,000 312,000 - Capital surplus Additional paid-in capital 1,170,054 1,170,054 - Total capital surplus 1,170,054 1,170,054 - Earned surplus Unappropriated retained earnings for the period 68,670 85,610 16,939 Total earned surplus 68,670 85,610 16,939 Net unrealized gains (losses) on securities 17 396 378 --------- --------- ---------- - TOTAL SHAREHOLDERS' EQUITY 1,550,741 1,568,060 17,318 --------- --------- ---------- - TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,080,829 4,010,327 (70,501 ) --------- --------- ---------- - ------ 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, 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) ---------------------------------------------------------- Nine Nine Increase Year months months ended ended ended (Decrease) December December ---------- March 31, 31, 2004 31, 2005 2005 --------- --------- --------- Recurring profits and losses Operating revenues and expenses Telecommunications businesses Operating revenues 1,445,925 1,401,541 (44,384 ) 1,921,025 Operating expenses 1,366,125 1,352,470 (13,654 ) 1,846,367 Operating income from telecommunications businesses 79,800 49,070 (30,729 ) 74,657 Related businesses Operating revenues 111,479 110,698 (780 ) 177,022 Operating expenses 112,413 113,241 828 181,531 Operating losses from related businesses (934 ) (2,543 ) (1,608 ) (4,508 ) Operating income 78,866 46,527 (32,338 ) 70,148 Non-Operating revenues and expenses Non-operating revenues: 41,088 53,766 12,678 56,074 Interest income 4 3 (1 ) 6 Dividends received 277 14,260 13,983 277 Lease income 35,520 35,015 (504 ) 47,648 Miscellaneous income 5,285 4,486 (799 ) 8,142 Non-operating expenses: 30,891 31,360 469 46,135 Interest expenses 14,931 12,829 (2,101 ) 19,264 Lease expenses 14,233 15,349 1,116 21,858 Miscellaneous expenses 1,727 3,181 1,454 5,012 Recurring profit 89,062 68,933 (20,128 ) 80,087 Special profits and losses Special profits 7,022 4,097 (2,924 ) 10,170 Special losses 5,385 - (5,385 ) 7,181 Income before Income taxes 90,699 73,031 (17,668 ) 83,077 Corporation, inhabitant, and enterprise taxes *37,000 *24,836 (12,163 ) (57,120 ) Deferred tax expenses (benefits) * - * - - 99,100 Net income 53,699 48,194 (5,504 ) 41,097 Unappropriated retained earnings brought forward 27,572 37,415 9,842 27,572 Unappropriated retained earnings for the period 81,272 85,610 4,337 68,670 ------ 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, 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) ---------------------------------------------------------------------- Nine Nine Increase Percent Year months months (Decrease) Increase ended ended ended ---------- (Decrease) March 31, December December ---------- 2005 31, 31, ------- -- 2004 2005 --------- --------- Voice transmission services revenues 1,040,954 956,700 (84,254 ) (8.1 %) 1,369,195 (excluding the amounts of IP services revenues) Monthly charge revenues* 669,602 589,839 (79,763 ) (11.9 %) 872,886 Call rates revenues* 153,414 137,844 (15,570 ) (10.1 %) 198,733 Interconnection call revenues* 150,469 160,072 9,602 6.4 % 209,544 IP services revenues 129,328 167,315 37,986 29.4 % 180,326 Leased circuit services revenues (excluding 131,164 128,409 (2,755 ) (2.1 %) 174,392 the amounts of IP services revenues) Telegram services revenues 22,883 22,248 (634 ) (2.8 %) 31,180 Other telecommunications services revenues 121,594 126,866 5,272 4.3 % 165,929 --------- --------- ---------- - -------- -- --------- Telecommunications total revenues 1,445,925 1,401,541 (44,384 ) (3.1 %) 1,921,025 --------- --------- ---------- - -------- -- --------- Related business total revenues 111,479 110,698 (780 ) (0.7 %) 177,022 --------- --------- ---------- - ---------- --------- Total operating revenues 1,557,405 1,512,239 (45,165 ) (2.9 %) 2,098,048 --------- --------- ---------- - -------- -- --------- ------ * Partial listing only -4- -------------------------------------------------------------------------------- 4. Non-Consolidated Comparative Statements of Cash Flows (Based on accounting principles generally accepted in Japan) (Millions of yen) -------------------------------------------------------- Nine Nine Increase Year months months ended ended ended (Decrease) March ---------- 31, December December 2005 31, 31, -------- 2004 2005 --------- -------- I Cash flows from operating activities: Income before income taxes 90,699 73,031 (17,668 ) 83,077 Depreciation and amortization 324,716 324,486 (229 ) 435,060 Loss on disposal of property, plant and equipment 24,108 21,405 (2,703 ) 33,319 Increase (decrease) in liability for employees' (19,245 ) (20,104 ) (858 ) (80,346 ) severance payments (Increase) decrease in accounts receivable (17,679 ) 9,660 27,339 1,956 (Increase) decrease in inventories 2,334 (2,587 ) (4,922 ) 4,606 Increase (decrease) in accounts payable and accrued (122,181 ) (138,292 ) (16,111 ) (6,390 ) expenses (increase) decrease in accrued consumption tax - 62 62 (62 ) receivable Increase (decrease) in accrued consumption tax payable 3,712 2,124 (1,587 ) (2,652 ) Other (14,398 ) (24,225 ) (9,827 ) (3,381 ) --------- - -------- - ---------- - -------- - Sub-total 272,066 245,561 (26,505 ) 465,187 --------- - -------- - ---------- - -------- - Interest and dividends received 281 14,263 13,982 283 Interest paid (14,338 ) (12,300 ) 2,037 (19,698 ) Income taxes received (paid) 52,491 54,406 1,914 52,439 --------- - -------- - ---------- - -------- - Net cash provided by (used in) operating 310,501 301,931 (8,570 ) 498,212 activities --------- - -------- - ---------- - -------- - II Cash flows from investing activities: Payments for property, plant and equipment (278,710 ) (358,115 ) (79,405 ) (381,332 ) Proceeds from sale of property, plant and equipment 8,459 6,180 (2,279 ) 13,567 Acquisition of investments securities (3,620 ) (1,165 ) 2,454 (3,678 ) Proceeds from sale of investments securities 327 2,150 1,822 2,239 Other (869 ) (1,893 ) (1,023 ) (197 ) --------- - -------- - ---------- - -------- - Net cash provided by (used in) investing activities (274,413 ) (352,844 ) (78,431 ) (369,401 ) --------- - -------- - ---------- - -------- - III Cash flows from financing activities: Proceeds from issuance of long-term debt 150,000 146,707 (3,292 ) 190,000 Payments for settlement of long-term debt (127,628 ) (88,832 ) 38,795 (276,201 ) Net increase (decrease) in short-term borrowings (30,000 ) (2,000 ) 28,000 2,000 Dividends paid (34,494 ) (31,200 ) 3,294 (34,494 ) --------- - -------- - ---------- - -------- - Net cash provided by (used in) financing activities (42,122 ) 24,674 66,797 (118,696 ) --------- - -------- - ---------- - -------- - IV Net increase (decrease) in cash and cash (6,034 ) (26,238 ) (20,204 ) 10,114 equivalents V Cash and cash equivalents at beginning of period 118,806 128,920 10,114 118,806 --------- - -------- - ---------- - -------- - VI Cash and cash equivalents at end of period 112,772 102,682 (10,090 ) 128,920 --------- - -------- - ---------- - -------- - -5- -------------------------------------------------------------------------------- 5. Revision of the business forecasts for the fiscal year ending March 31, 2006 NTT West has revised its business forecasts for the fiscal year ending March 31, 2006, which were announced together with the half-year business results on November 9, 2005, as follows. Unit Operating Operating Recurring Net -------- revenues income profits income --------- --------- --------- ------ Previous forecasts (A) Millions 2,020,000 31,000 40,000 25,000 of yen Revised forecasts (B) Millions 2,020,000 31,000 50,000 37,000 of yen Increase/decrease (B-A) Millions 0 0 10,000 12,000 of yen Increase/decrease ratio % 0.0 % 0.0 % 25.0 % 48.0 % (Ref.) Millions 2,098,000 70,100 80,000 41,000 of yen Results for the year ended March 31, 2005 * Non-operating income was revised from 9,000 million yen to 19,000 million yen, because interim dividends from group companies were reported for the three months ended December 31, 2005. -6- -------------------------------------------------------------------------------- February 3, 2006 NTT Com Announces Financial Results for the Nine Months Ended December 31, 2005 TOKYO, JAPAN - NTT Communications (NTT Com) announced today its fiscal results for the nine months ended December 31, 2005. Please see the following attachments for further details: 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 # # # About NTT Com NTT Communications is a subsidiary of Nippon Telegraph and Telephone Corporation (NTT) (NYSE: NTT) - one of the world's largest telecommunications companies. NTT Com provides high-quality, technologically advanced network management, security and solution services to consumers, corporations and governments on a global basis, with a special focus on the Asia-Pacific region. Its world-class backbone networks, combined with the networks of partner companies around the world, offer access to more than 200 countries. NTT Com Group has more than 30 companies in the Asia-Pacific region, Europe and the Americas. The company has garnered several awards for its leading edge technologies, outstanding performance and customer service, including " World Communication Awards Best Customer Care - 2005." For more information, please visit http://www.ntt.com For more information (Mr.) Noboru Takeuchi or (Mr.) Makoto Inoue Accounts and Finance Department, NTT Communications Tel. +81 3 6700 4311 -------------------------------------------------------------------------------- I. Non-Consolidated Comparative Balance Sheets (Based on accounting principles generally accepted in Japan) (Millions of yen) -------------------------------------------- March 31, December Increase 2005 31, 2005 (Decrease) --------- --------- ---------- ASSETS Fixed assets: Fixed assets for telecommunications Property, plant and equipment 515,409 495,924 (19,484 ) Machinery and equipment 169,185 171,218 2,032 Antenna facilities 7,669 7,306 (362 ) Terminal equipment 3,680 3,250 (429 ) Local line facilities 440 979 538 Long-distance line facilities 14,846 13,227 (1,619 ) Engineering facilities 78,693 75,673 (3,020 ) Submarine line facilities 10,084 7,840 (2,244 ) Buildings 141,234 135,865 (5,368 ) Construction in progress 10,370 7,757 (2,613 ) Other 79,202 72,805 (6,396 ) Intangible fixed assets 125,321 159,415 34,093 Total fixed assets for telecommunications businesses 640,730 655,340 14,609 Investments and other assets Investment securities 77,394 149,694 72,299 Investments in subsidiaries and affiliated companies 152,220 108,151 (44,068 ) Deferred income taxes 305,557 289,201 (16,355 ) Other investments 58,896 93,717 34,821 Allowance for doubtful accounts (363 ) (539 ) (176 ) Total investments and other assets 593,705 640,225 46,520 Total fixed assets 1,234,435 1,295,566 61,130 Current assets: Cash and bank deposits 61,084 34,425 (26,658 ) Notes receivable 256 248 (8 ) Accounts receivable, trade 176,443 175,304 (1,138 ) Supplies 10,669 10,343 (325 ) Other current assets 60,039 35,915 (24,123 ) Allowance for doubtful accounts (1,716 ) (2,042 ) (326 ) Total current assets 306,776 254,194 (52,581 ) --------- - --------- - ---------- - TOTAL ASSETS 1,541,212 1,549,760 8,548 --------- - --------- - ---------- - -1- -------------------------------------------------------------------------------- (Millions of yen) ---------------------------------------- March 31, December Increase 2005 31, 2005 --------- --------- (Decrease) ---------- LIABILITIES Long-term liabilities: Long-term borrowings from parent company 678,813 690,559 11,746 Liability for employees' severance payments 73,380 74,126 745 Other long-term liabilities 3,965 4,298 333 Total long-term liabilities 756,159 768,985 12,825 Current liabilities: Current portion of long-term borrowings from parent company 82,530 95,063 12,533 Accounts payable, trade 60,265 32,425 (27,840 ) Accounts payable, other 178,524 143,591 (34,933 ) Accrued taxes on income 12,007 *6,015 (5,992 ) Other current liabilities 46,619 67,490 20,871 Total current liabilities 379,947 344,586 (35,361 ) --------- --------- ---------- - TOTAL LIABILITIES 1,136,107 1,113,571 (22,535 ) --------- --------- ---------- - SHAREHOLDERS' EQUITY Common stock 211,650 211,650 - Capital surplus Additional paid-in capital 119,149 119,149 - Total capital surplus 119,149 119,149 - Earned surplus Unappropriated retained earnings for the period 41,231 48,426 7,195 Total earned surplus 41,231 48,426 7,195 Net unrealized gains (losses) on securities 33,074 56,963 23,889 --------- --------- ---------- - TOTAL SHAREHOLDERS' EQUITY 405,105 436,189 31,084 --------- --------- ---------- - TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,541,212 1,549,760 8,548 --------- --------- ---------- - ------ Note: * The Company participates in a consolidated tax return system, which is adopted by NTT (Holding company) and its wholly-owned subsidiaries in Japan, but did not calculate income taxes on a consolidated basis in the quarterly financial statements. -2- -------------------------------------------------------------------------------- II. Non-Consolidated Comparative Statements of Income (Based on accounting principles generally accepted in Japan) (Millions of yen) -------------------------------------------------------------- Nine Nine Increase Year months months (Decrease) ended ended ended ---------- March December December 31, 31, 2004 31,2005 2005 --------- --------- ------- Recurring profits and losses Operating revenues and expenses Telecommunications businesses Operating revenues 723,901 748,457 24,555 968,438 Operating expenses 651,141 687,737 36,596 895,223 Operating income from telecommunications 72,760 60,719 (12,040 ) 73,214 businesses Related businesses Operating revenues 70,300 78,157 7,857 121,634 Operating expenses 73,282 81,045 7,762 124,972 Operating losses from related businesses (2,982 ) (2,888 ) 94 (3,338 ) Operating income 69,778 57,831 (11,946 ) 69,876 Non-operating revenues and expenses Non-operating revenues: 19,158 23,286 4,128 26,166 Interest income 1,046 2,000 954 1,539 Dividends received 981 4,264 3,283 982 Lease income 14,098 13,815 (282 ) 18,945 Miscellaneous income 3,032 3,206 174 4,699 Non-operating expenses: 19,822 18,723 (1,098 ) 28,082 Interest expenses 11,108 10,634 (473 ) 14,468 Lease expenses 5,925 6,270 344 9,024 Miscellaneous expenses 2,787 1,818 (969 ) 4,589 Recurring profit 69,114 62,395 (6,719 ) 67,959 Special profits and losses Special profits - 22,327 22,327 4,094 Special losses - 38,606 38,606 25,022 Income before Income taxes 69,114 46,116 (22,997 ) 47,032 Corporation, inhabitant, and enterprise taxes *28,800 *30,159 1,359 37,420 Deferred tax expenses (benefits) * - * - - (15,000 ) Net income 40,314 15,956 (24,357 ) 24,612 Unappropriated retained earnings brought forward 16,618 32,469 15,851 16,618 Unappropriated retained earnings for the period 56,932 48,426 (8,506 ) 41,231 ------ Note: * The Company participates in a consolidated tax return system, which is adopted by NTT (Holding company) and its wholly-owned subsidiaries in Japan, but did not calculate income taxes on a consolidated basis in the quarterly financial statements. -3- -------------------------------------------------------------------------------- III. Business Results (Non-Consolidated Operating Revenues) (Based on accounting principles generally accepted in Japan) (Millions of Yen) ------------------------------------------------------------------- Nine Nine Increase Percent Year months months (Decrease) Increase ended ended ended ---------- (Decrease) March 31, December December ---------- 2005 31, 31, --------- 2004 2005 -------- -------- Voice transmission services revenues 332,937 357,050 24,113 7.2% 440,655 (excluding the amounts of IP services revenues) IP services revenues 204,238 227,014 22,775 11.2% 278,315 Open Computer Network services revenues* 99,207 104,196 4,988 5.0% 133,475 IP-Virtual Private Network services revenues* 46,253 51,862 5,608 12.1% 63,198 Wide-Area Ethernet services revenues* 25,091 31,770 6,678 26.6% 35,086 Data communications revenues 163,571 135,010 (28,561) (17.5%) 212,751 (excluding the amounts of IP services revenues) Leased circuit services revenues* 103,537 87,135 (16,401) (15.8%) 135,642 Solution services revenues 70,463 83,136 12,673 18.0% 125,829 Others 22,990 24,402 1,412 6.1% 32,520 -------- -------- ---------- ---------- - --------- Total operating revenues 794,202 826,614 32,412 4.1 % 1,090,072 -------- -------- ---------- ---------- - --------- ------ * Partial listing only -4- -------------------------------------------------------------------------------- IV. Non-Consolidated Comparative Statements of Cash Flows (Based on accounting principles generally accepted in Japan) (Millions of yen) ----------------------------------------------------------- Nine Nine Increase Year months months (Decrease) ended ended ended ---------- March December December 31, 2005 31, 2004 31, 2005 -------- --------- -------- I Cash flows from operating activities Income before income taxes 69,114 46,116 (22,997 ) 47,032 Depreciation and amortization 91,254 89,630 (1,624 ) 123,494 Loss on disposal of property, plant and equipment 4,804 4,770 (34 ) 13,822 Increase (decrease) in allowance for doubtful 70 503 432 (325 ) accounts Increase (decrease) in liability for employees 299 745 445 (1,035 ) ' severance payments Write-off of investments in affiliated companies - 38,606 38,606 25,022 (Increase) decrease in accounts receivable 11,777 7,188 (4,588 ) (3,934 ) (Increase) decrease in inventories (1,274 ) 325 1,600 (2,225 ) Increase (decrease) in accounts payable and accrued (18,634 ) (47,363 ) (28,729 ) 25,228 expenses Increase (decrease) in accrued consumption tax 1,113 3,246 2,132 (269 ) payable Other 3,722 (24,035 ) (27,758 ) 10,044 Sub-total 162,248 119,732 (42,515 ) 236,854 --------- - -------- - ---------- - -------- - Interest and dividends received 2,229 6,687 4,457 2,222 Interest paid (12,145 ) (11,573 ) 572 (14,733 ) Income taxes received (paid) 9,159 (42,588 ) (51,748 ) 9,159 --------- - -------- - ---------- - -------- - Net cash provided by (used in) operating activities 161,491 72,258 (89,233 ) 233,503 --------- - -------- - ---------- - -------- - II Cash flows from investing activities: Payments for property, plant and equipment (109,771 ) (124,126 ) (14,354 ) (155,158 ) Proceeds from sale of property, plant and equipment 1,837 3,445 1,608 3,011 Acquisition of investment securities (1,584 ) (5,068 ) (3,483 ) (1,603 ) Proceeds from sale of investment securities 22 676 654 7,728 Payments for long-term loans (8,783 ) (30,188 ) (21,404 ) (8,783 ) Proceeds from long-term loans receivable 409 24,060 23,651 409 (Increase) decrease in short-term loan 263 (555 ) (818 ) (365 ) Other 479 555 75 (34 ) --------- - -------- - ---------- - -------- - Net cash provided by (used in) investing activities (117,127 ) (131,200 ) (14,072 ) (154,794 ) --------- - -------- - ---------- - -------- - III Cash flows from financing activities: Proceeds from issuance of long-term debt 8,783 80,188 71,404 8,783 Payments for settlement of long-term debt (65,584 ) (61,578 ) 4,006 (98,297 ) Net increase (decrease) in short-term borrowings (3,382 ) 22,355 25,737 15,246 Dividends paid (8,811 ) (8,700 ) 111 (8,811 ) --------- - -------- - ---------- - -------- - Net cash provided by (used in) financing activities (68,993 ) 32,266 101,260 (83,078 ) --------- - -------- - ---------- - -------- - IV Effect of exchange rate changes on cash and (0 ) 17 17 9 cash equivalents --------- - -------- - ---------- - -------- - V Net increase (decrease) in cash and cash (24,630 ) (26,658 ) (2,028 ) (4,359 ) equivalents VI Cash and cash equivalents at beginning of 65,444 61,084 (4,359 ) 65,444 period --------- - -------- - ---------- - -------- - VII Cash and cash equivalents at end of period 40,813 34,425 (6,388 ) 61,084 --------- - -------- - ---------- - -------- - MORE TO FOLLOW -5- -------------------------------------------------------------------------------- Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/8822x_-2006-2-3.pdf This information is provided by RNS The company news service from the London Stock Exchange END QRTIIFFDFLIVIIR
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