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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 |
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RNS Number:8862T
Nippon Telegraph and Telephone Corp
09 November 2005
November 9, 2005
FOR IMMEDIATE RELEASE
Interim Settlement for Fiscal Year Ending March 31, 2006
The results of Nippon Telegraph and Telephone East Corporation (NTT East) for
the interim period of fiscal 2005 are presented in the following attachments.
(Attachments)
1. Summary of Results
2. Non-consolidated Comparative Balance Sheets
3. Non-consolidated Comparative Statements of Income
4. Business Results (Non-consolidated Operating Revenues)
5. Non-consolidated Comparative Statements of Cash Flows
Inquiries:
Hiroshi Niitsu , Kenkichi Nakata
Accounting Section, Finance Division
NTT East
Tel: (03) 5359-3331
E-mail: kessan@sinoa.east.ntt.co.jp
--------------------------------------------------------------------------------
Attachment 1
SUMMARY OF RESULTS
1. Overall Business Conditions
During the interim period ended September 30, 2005, the Japanese economy
continued a steady recovery. Corporate profits improved, and capital investment
gradually expanded. The employment situation, while still harsh, continued to
improve, and personal consumption showed a gradual increase.
In the information and communications sector, consumer demands have become
increasingly complex, diversified and global in scale, as society's expectations
for ubiquitous networks-the ability to send and receive a wide range of
information anytime and anywhere have increased. With a surge in demand for
mobile and Internet communications, the telecommunications market has been
undergoing drastic structural changes, leading to intensified service
competition for customers. Within the broadband market, IP telephony is becoming
widely available, and as the number of new optical access service subscribers
has exceeded that of new DSL service subscribers, the demand for optical access
services has continued to rise rapidly.
In the fixed-line market, the direct subscriber telephone service using dry
copper went into full swing, bringing about a full-scale competition for
subscribers to metal, optical, and other types of access line services.
Within this business environment, Nippon Telegraph and Telephone East
Corporation (NTT East) has worked hard to achieve the goal defined in the NTT
Group's Medium-Term Management Strategy, which was announced in November 2004 of
shifting 30 million customers to optical fiber access services by 2010. To this
end, NTT East has devoted its energy on meeting increased customer needs for
broadband communications to attract one million new subscribers to FLET'S Hikari
services by the end of this fiscal year. Specific measures include the
full-scale promotion of optical IP telephone services and the development and
provision of safe, reliable and high value-added services. NTT East has also
worked to build a stable and enhanced management infrastructure and to reduce
property expenses and streamline its assets to increase operational efficiency,
and has implemented internal reorganization in order to accelerate decision
making and further boost its sales. With measures such as these, NTT East has
strove to achieve more flexible business operations that are more responsive to
changes in the business environment.
1
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2. Promotion of Optical IP-Based Services
In the rapidly expanding broadband market, NTT East has worked to further
upgrade its services to respond to its customers' diverse needs, while
continuing to lower rates. The company actively promoted the "Hikari Denwa" IP
telephony service that permits subscribers to make and receive calls to and from
conventional phone lines and within the IP phone network, using the conventional
phone-line number with no prefix, and introduced a new monthly rate plan for the
service in April 2005. In addition, the company changed the service name of "
Corporate IP Telephone Service" to "Hikari Denwa Business Type" and modified its
service terms by lowering basic fees and introducing a new call rate plan to
attract more corporate customers. NTT East also augmented its B FLELT'S service,
which offers flat-rate high-speed Internet connections via a fiber optic
network, to add a new menu item enabling the combined use of B FLET'S with
Hikari Denwa Business Type.
NTT East introduced various optional services to increase convenience for Hikari
Denwa users. NTT East has devoted its efforts on launching such value-added
services as the "Free Access" reverse charge call service (for Hikari Denwa
Business Type only) in April 2005 and the "171" disaster message service in May.
The company has also worked to reduce rates by lowering monthly charges for the
"Nuisance Call Blocking Service" in June.
In keeping with the ongoing development of the ubiquitous broadband society, NTT
East has been promoting the increase of "FLET'S SPOT" access points where
subscribers to the FLET'S SPOT service can connect to high-speed flat-rate
Internet via access points near stations, cafes, hotels, and other locations,
using their own wireless LAN-compatible laptop PCs that are used in the office
or at home. Additionally, in order to provide subscribers with enhanced and
convenient Internet connections, NTT East, jointly with NTT West, has begun
providing mutual roaming services to give both FLET'S SPOT users access to the
Internet via access points in the NTT East and NTT West FLET'S SPOT service
areas and to enhance service functions of FLET'S SPOT to enable subscribers to
have Internet access using different types of wireless LAN equipment.
2
--------------------------------------------------------------------------------
With respect to measures taken by NTT East to promote sales of FLET'S services,
NTT East launched in May 2005 the "FLET'S Summer Campaign" to waive monthly fees
for B FLET'S services for two months. Through such promotional activities, NTT
East has actively committed itself to meeting customers' diversified needs and
to developing a user-friendly environment for broadband communications.
In an effort to expand its offerings of high value-added content exploiting the
broadband environment, NTT East formed partnerships with various content
providers in distributing content. Examples include the "Korean Drama Theater '
Brokore (Broadband Korea)' on FLET'S" that offers popular Korean dramas, as well
as Korean entertainment news, and "Toei Tokusatsu Anime Archives on FLET'S" that
features very popular Japanese animations and live-action superhero (tokusatsu)
programs that were broadcast on TV in the past.
3. Measures for Fixed-Line Telephone Services
In the fixed-line market, the introduction of direct subscriber telephone
service using dry copper line has brought about an era of full-scale competition
for customers. Under such circumstances, in May 2005, in an effort to reduce
monthly charges for fixed-line telephone services, NTT East began offering
discounts on basic connection fees to subscribers who have multiple telephone
lines under a single billing address.
4. Development of Solutions Business
In its corporate service sector, under NTT East's "Team M@rketing Solutions"
business concept for tackling issues and developing new businesses in
partnership with its corporate customers, the company has been working actively
to provide "total solutions" that combine its network integration and systems
integration technologies. In doing so, NTT East drew on its network services for
business users, including "Mega Data Netz," "Flat Ether," "Super Wide LAN," and
"Metro Ether," as well as its information systems services, including security
data centers. In its total solutions business, NTT East launched "Mobile
Presence Solutions" and "Network Quarantine Solution." The Mobile Presence
Solutions service reduces overall management costs by minimizing operational
losses arising from unnecessary callbacks and call-handling time in daily
operations. The Network Quarantine Solution service, designed to accommodate
corporate security needs, prevents information leakage and virus infection by
enhancing security measures for business computers used in public and private
institutions. In addition, active efforts have been made in the e-Japan
Strategic Sales Promotion Division of the Corporate Business Headquarters and
the e-Japan Strategic Sales Promotion Office of the Business Communications
Department of each branch, to provide e-government solutions in response to
opportunities presented by the e-Japan Priority Plans of local governments
within the NTT East area.
3
--------------------------------------------------------------------------------
5. Reorganization of Business Operation Structure
As for business management structure, NTT East has been committed to enhancing
its customer services, increasing profitability and cost competitiveness to
respond to the full-scale development of optical IP networks, and enhancing
efficiency by introducing a flow-through operation system. To this end, NTT East
integrated each prefecture's three outsourcing subsidiaries (those responsible
for sales, facilities and common back-office functions)* into a single
prefectural outsourcing subsidiary. The new outsourcing companies are in charge
of corporate service operations previously conducted by NTT East branches. With
respect to the Tokyo area, it has been divided into five blocks and each block
has a new outsourcing subsidiary to provide more fine-tuned customer services
and increase operational efficiency.
* Sales subsidiary: NTT Service (prefecture name) Corporation; Facility
subsidiary: NTT ME (prefecture or region name) Corporation; Back-office
subsidiary: NTT Business Associe (prefecture name) Co., Ltd.
Following the full enforcement of the Personal Information Protection Act, in
April 2005, NTT East established the Personal Information Protection Promotion
Office that formulates and organizes policies for promoting the protection of
personal data and that conducts activities to raise its employees' privacy
awareness. As a corporate citizen, NTT East has also been promoting initiatives
that give serious consideration not only to economic aspects but also to social
aspects, such as corporate ethics and philanthropy, and environmental aspects,
thereby contributing to the sustainable development of society. In supporting
these endeavors, in August 2005, NTT East set up the CSR (corporate social
responsibility) Committee.
4
--------------------------------------------------------------------------------
With regard to disaster countermeasures, NTT East provided support as an
information and communications provider to the victims of the flood in the
Niigata region in June 2005 and of the earthquake in the Miyagi region in August
2005, by operating the "171" disaster message service that enables people to
confirm the safety of their families, relatives and friends in disaster areas.
6. Sales Performance
As a result of these efforts, sales performance in NTT East major areas of
service was as follows during the interim period under review.
With respect to NTT East's broadband access services, as of the end of September
2005, there were 1,301,000 B FLET'S subscribers, an increase of 416,000 from the
end of March 2005, and 2,971,000 FLET'S ADSL subscribers, an increase of 138,000
from the end of March 2005.
The number of channels for the "Hikari Denwa" IP telephony service grew to
101,000 channels as of the end of September 2005.
With respect to NTT East's subscriber telephone services, the total number of
lines installed was 24.25 million as of the end of September 2005, a decrease of
640,000 from the end of March 2005, while the total number of INS-Net 64 lines
fell by 140,000 from the end of March 2005 to 3.92 million as a result of the
shift to broadband access services.
During the interim period under review, operating revenue totaled 1,049.9
billion yen (down 2.0 % from the same period of the previous year); recurring
profit came to 56.4 billion yen (up 5.5% from the same period of the previous
year); and net profit totaled 34.0 billion yen (up 8.5% from the same period of
the previous year).
5
--------------------------------------------------------------------------------
2. Non-Consolidated Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
------------------------------------------------
March 31, September Increase
2005 30, 2005 (Decrease)
--------- --------- ----------
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment 2,968,134 2,954,701 (13,433 )
Machinery and equipment 580,807 565,409 (15,398 )
Antenna facilities 8,158 8,123 (34 )
Terminal equipment 30,769 39,200 8,431
Local line facilities 655,890 666,073 10,182
Long-distance line facilities 11,901 10,880 (1,020 )
Engineering facilities 766,392 749,107 (17,284 )
Submarine line facilities 1,050 938 (111 )
Buildings 622,535 629,446 6,910
Construction in progress 28,245 29,454 1,209
Other 262,382 256,065 (6,316 )
Intangible fixed assets 105,746 99,469 (6,276 )
Total fixed assets - telecommunications businesses 3,073,880 3,054,171 (19,709 )
Investments and other assets
Deferred income taxes 347,781 323,250 (24,531 )
Other investments 84,291 76,382 (7,909 )
Allowance for doubtful accounts (2,122 ) (1,818 ) 303
Total investments and other assets 429,950 397,813 (32,136 )
Total fixed assets 3,503,830 3,451,984 (51,846 )
Current assets:
Cash and bank deposits 107,637 92,399 (15,238 )
Notes receivable 131 52 (78 )
Accounts receivable, trade 370,104 314,484 (55,619 )
Supplies 29,475 32,819 3,343
Other current assets 81,202 120,392 39,189
Allowance for doubtful accounts (4,082 ) (5,202 ) (1,119 )
Total current assets 584,469 554,945 (29,523 )
---------- ---------- -----------
TOTAL ASSETS 4,088,300 4,006,930 (81,369 )
---------- ---------- -----------
- 6 -
--------------------------------------------------------------------------------
(Millions of yen)
----------------------------------------
March 31, September Increase
2005 30, 2005 (Decrease)
--------- --------- ----------
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company 883,881 842,955 (40,926 )
Liability for employees' severance payments 656,004 640,505 (15,498 )
Other long-term liabilities 7,359 7,218 (140 )
Total long-term liabilities 1,547,245 1,490,680 (56,565 )
Current liabilities:
Current portion of long-term borrowings from parent company 144,171 169,454 25,282
Accounts payable, trade 118,372 81,778 (36,594 )
Short-term borrowings - 55,000 55,000
Accounts payable, other 273,517 188,936 (84,580 )
Accrued taxes on income 2,676 1,266 (1,409 )
Other current liabilities 83,266 99,353 16,086
Total current liabilities 622,004 595,789 (26,214 )
--------- --------- -----------
TOTAL LIABILITIES 2,169,249 2,086,469 (82,779 )
--------- --------- -----------
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 84,036 473
Total earned surplus 83,563 84,036 473
Net unrealized gains (losses) on securities 760 1,697 936
--------- --------- -----------
TOTAL SHAREHOLDERS' EQUITY 1,919,050 1,920,460 1,410
--------- --------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,088,300 4,006,930 (81,369 )
--------- --------- -----------
- 7 -
--------------------------------------------------------------------------------
3. Non-Consolidated Comparative Statements of Income
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
-------------------------------------------------------------
Six Six Increase Year
months months ended
ended ended (Decrease) March 31,
September September ---------- 2005
30, 2004 30, 2005 ---------
--------- ---------
Recurring profits and losses
Operating revenues and expenses
Telecommunications businesses
Operating revenues 1,003,879 983,387 (20,492 ) 2,024,629
Operating expenses 958,508 934,312 (24,195 ) 1,937,555
Operating income from telecommunications 45,371 49,075 3,703 87,073
businesses
Related businesses
Operating revenues 67,581 66,606 (974 ) 156,298
Operating expenses 65,021 68,562 3,540 155,638
Operating income (losses) from related businesses 2,559 (1,956 ) (4,515 ) 660
Operating income 47,930 47,118 (811 ) 87,733
Non-operating revenues and expenses
Non-operating revenues: 27,952 30,800 2,848 61,006
Interest income 32 25 (7 ) 63
Lease income 24,524 27,133 2,608 53,563
Miscellaneous income 3,394 3,641 246 7,379
Non-operating expenses: 22,406 21,485 (921 ) 51,124
Interest expenses 8,967 8,278 (688 ) 17,628
Lease expenses 12,255 11,647 (607 ) 26,497
Miscellaneous expenses 1,184 1,559 374 6,997
Recurring profit 53,476 56,434 2,958 97,615
Special profits and losses
Special profits 2,840 878 (1,962 ) 8,397
Special losses 3,368 - (3,368 ) 6,736
Income before Income taxes 52,948 57,312 4,363 99,276
Corporation, inhabitant, and enterprise taxes (18,427 ) (1,812 ) 16,614 (21,153 )
Deferred tax expenses (benefits) 40,000 25,096 (14,903 ) 62,300
Net income 31,375 34,028 2,652 58,129
Unappropriated retained earnings brought forward 25,433 50,008 24,574 25,433
Unappropriated retained earnings for the period 56,809 84,036 27,227 83,563
- 8 -
--------------------------------------------------------------------------------
4. Business Results (Non-Consolidated Operating Revenues)
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
-----------------------------------------------------------------
Six Six Increase Percent Year
months months (Decrease) Increase ended
ended ended ---------- (Decrease) March 31,
September September ---------- 2005
30, 30, ---------
2004 2005
--------- ---------
Voice transmission services revenues 713,846 661,986 (51,859 ) (7.3%) 1,401,433
(excluding the amounts of IP services revenues)
Monthly charge revenues* 462,868 406,335 (56,533 ) (12.2%) 903,629
Call rates revenues* 98,752 96,224 (2,528 ) (2.6%) 190,405
Interconnection call revenues* 103,338 109,726 6,387 6.2% 215,128
IP services revenues 98,036 127,182 29,146 29.7% 211,357
Leased circuit services revenues 105,123 98,548 (6,574 ) (6.3%) 208,730
(excluding the amounts of IP services revenues)
Telegram services revenues 13,155 12,774 (381 ) (2.9%) 27,201
Other telecommunications services revenues 73,717 82,895 9,177 12.5% 175,907
Telecommunications total revenues 1,003,879 983,387 (20,492 ) (2.0%) 2,024,629
--------- --------- ---------- - ---------- ---------
Related business total revenues 67,581 66,606 (974 ) (1.4%) 156,298
--------- --------- ---------- - ---------- ---------
Total operating revenues 1,071,460 1,049,993 (21,466 ) (2.0%) 2,180,928
--------- --------- ---------- - ---------- ---------
* Partial listing only
- 9 -
--------------------------------------------------------------------------------
5. Non-Consolidated Comparative Statements of Cash Flows
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
---------------------------------------------------------
Six Six Increase Year
months months (Decrease) ended
ended ended ---------- March
September September 31, 2005
30, 2004 30, 2005 --------
--------- ---------
I Cash flows from operating activities:
Income before income taxes 52,948 57,312 4,363 99,276
Depreciation and amortization 238,486 254,686 16,199 483,027
Loss on disposal of property, plant and 16,998 8,711 (8,286 ) 40,136
equipment
Increase (decrease) in liability for employees' (11,190 ) (15,498 ) (4,308 ) (72,575 )
severance payments
(Increase) decrease in accounts receivable 46,022 57,044 11,022 12,725
(Increase) decrease in inventories (1,198 ) (3,343 ) (2,144 ) 1,171
Increase (decrease) in accounts payable and (171,192 ) (99,346 ) 71,845 (83,952 )
accrued expenses
Increase (decrease) in accrued consumption tax 1,871 607 (1,264 ) (158 )
payable
Other (22,035 ) (70,956 ) (48,920 ) (13,159 )
---------- ---------- ----------- ----------
Sub-total 150,710 189,218 38,508 466,490
---------- ---------- ----------- ----------
Interest and dividends received 252 354 101 297
Interest paid (9,794 ) (9,243 ) 551 (17,771 )
Income taxes received (paid) (16,022 ) 21,196 37,218 (16,095 )
---------- ---------- ----------- ----------
Net cash provided by (used in) operating 125,146 201,526 76,380 432,922
activities
---------- ---------- ----------- ----------
II Cash flows from investing activities:
Payments for property, plant and equipment (208,330 ) (207,723 ) 607 (401,013 )
Proceeds from sale of property, plant and 3,962 2,399 (1,562 ) 11,624
equipment
Acquisition of investment securities (126 ) (543 ) (417 ) (7,353 )
Proceeds from sale of investment securities 398 412 14 417
Other (3,792 ) (785 ) 3,006 8,273
---------- ---------- ----------- ----------
Net cash provided by (used in) investing (207,888 ) (206,239 ) 1,649 (388,050 )
activities
---------- ---------- ----------- ----------
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 (62,393 ) (50,643 ) 11,750 (95,559 )
Net increase (decrease) in short-term borrowings 71,000 55,000 (16,000 ) -
Dividends paid (32,495 ) (33,500 ) (1,005 ) (32,495 )
---------- ---------- ----------- ----------
Net cash provided by (used in) financing (5,938 ) 5,856 11,795 (110,104 )
activities
---------- ---------- ----------- ----------
IV Net increase (decrease) in cash and cash (88,680 ) 1,144 89,824 (65,232 )
equivalents
V Cash and cash equivalents at beginning of period 186,287 121,055 (65,232 ) 186,287
---------- ---------- ----------- ----------
VI Cash and cash equivalents at end of period 97,607 122,199 24,592 121,055
---------- ---------- ----------- ----------
- 10 -
--------------------------------------------------------------------------------
November 9, 2005
FOR IMMEDIATE RELEASE
Interim Settlement for Fiscal Year Ending March 31, 2006
The results of Nippon Telegraph and Telephone West Corporation (NTT West) for
the interim period of fiscal 2005 are presented in the following attachments.
(Attachments)
1. Summary of Results
2. Non-consolidated Comparative Balance Sheets
3. Non-Consolidated Comparative Statements of Income
4. Business Results (Non-Consolidated Operating Revenues)
5. Non-Consolidated Comparative Statements of Cash Flows
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
--------------------------------------------------------------------------------
Attachment 1
Summary of Results
During the six months ended September 30, 2005, the Japanese economy continued
to show a steady overall recovery with improved corporate earnings and increased
capital expenditure and consumer spending.
The telecommunications market has been undergoing drastic environmental changes
as a result of the rapid spread of broadband access services and the
introduction of new types of services such as FMC (Fixed-Mobile Convergence)
services that combine mobile and fixed-line telephones, and "Triple Play"
service that integrate Internet, IP telephone and video capabilities all in one.
In the rapidly expanding broadband market, customer needs are becoming more
diverse than ever and competition among telecommunications providers is
intensifying in the form of both services and prices, against the backdrop of
further acceleration in the changeover to fiber optics and IP. In the fixed-line
telephone market, meanwhile, the shift toward mobile and IP phones as well as
the spread of direct subscriber telephone services using dry copper lines made
for an increasingly competitive business environment.
In the midst of rapid changes in market and competitive conditions, Nippon
Telegraph and Telephone West Corporation (NTT West) positioned fiscal 2005 as a
critical year for taking the "first steps" toward achieving the "NTT West Group
Medium-Term Vision" and its goal of "providing optical access services to 15
million users in 2010." Toward this end, NTT West moved forward with efforts to
introduce attractive new services aimed at dramatic expansion of optical access
lines and fiber-optic IP-based services, promoting high value-added solution
businesses such as security features, and expanding the operations of the entire
NTT West Group. Specifically, NTT West implemented the following measures:
--------------------------------------------------------------------------------
1. Development of the Broadband Business
(i) Expanded Broadband Access Services
In optical access services, to supplement its conventional B-FLET'S plans and
satisfy diversifying user needs, NTT West offered the "FLET'S HIKARI PREMIUM
Family Type" plan, a new access service that provides high-quality
video-telephony using IPv6 addresses and security protection as basic functions,
and additionally supports optical IP phone and On Demand TV. NTT West also
introduced the "FLET'S HIKARI PREMIUM Condominium Type" plan, a new service for
multi-dwelling houses to meet the needs of customers living in condominium
buildings.
Also, in addition to the previously-offered limited-time, no-monthly-fee
campaign for new subscribers to FLET'S HIKARI (a generic term for B-FLET'S and
FLET'S HIKARI PREMIUM) services, NTT West introduced the "HIKARI GUTTO DISCOUNT,
" a discount program with a special rate for up to one year for new subscribers
who signed up for a "FLET'S HIKARI PREMIUM Family Type" plan or a "B-FLET'S
Family 100 Type" plan in Shizuoka, Aichi, Kyoto, Osaka, Hyogo, Hiroshima, or
Fukuoka during a specified promotion period. For ADSL users, NTT West offered a
discount of maximum 50% for one year to attract more customers.
Furthermore, to attract new FLET'S subscribers and encourage continued use of
the service, NTT West offered the "FLET'S ATTO (amazing) DISCOUNT," which
provides a discount on monthly charges with the requirement of two continuous
years of use, and "FLET'S ZUTTO (continuous) DISCOUNT," which offers an
automatic discount on monthly charges based on the number of years of use.
NTT West also made efforts to provide services meeting customer needs by
achieving shorter lead time (from application to line connection) with the
introduction of the Administrative Quick Response for Optical Service (AQROS)
system and making 24-hour support available to ensure customers can make use of
its service with peace of mind. As a result, the number of FLET'S HIKARI
subscriber lines installed exceeded one million in just four years and one
month, after a full-scale launch of the service.
--------------------------------------------------------------------------------
(ii) Expanded Broadband Application Services
NTT West began to offer the "HIKARI DENWA (fiber-optic phone)" service, an
optical IP phone service for individual customers, not only to "B-FLET'S
Condominium Type" users but also to users of "FLET'S HIKARI PREMIUM Family Type"
and "FLET'S HIKARI PREMIUM Condominium Type."
For corporate customers, NTT West also added to the "HIKARI DENWA Business Type"
plan a mobile IP-phone terminal, which is compatible with the optional "IP
Centrex function." This allows NTT West to make highly convenient IP phone
terminals available to customers at a reasonable introductory cost.
NTT West also added new features to "HIKARI DENWA" and "HIKARI DENWA Business
Type" to achieve a level of usability equal to fixed-line telephones and
proactively deployed the service across the region to expand the customer base.
To enhance its application services that use IPv6 addresses, NTT West launched "
FLET'S v6 My Disk" targeted at users of "FLET'S HIKARI PREMIUM" and "FLET'S v6
APPLI" services. The new service enables users to store and manage a large
volume of data such as images taken with a digital camera and document files,
and share data with other users safely.
As part of its "FLET'S SQUARE" service, NTT West has been providing live
broadcasts of concerts and events and videos of popular cartoons to FLET'S
access service users, and it recently opened "v6 Stage," a broadband site for
users of FLET'S HIKARI PREMIUM and FLET'S v6 APPLI, to distribute "multi-angle
content" that allows simultaneous viewing of a scene from multiple angles, and "
high-quality content" in the Hi-Vision, in an effort to further enhance the
unique attractiveness of FLET'S services.
For "FLET'S SPOT," a public wireless LAN service, NTT West opened "FLET'S SPOT
Cafe" at five key stations in the western Japan region, where visitors can
experience ubiquitous wireless service with leading-edge wireless LAN equipment
and application software. At the same time, NTT West added to the number of
access points to expand the service area so that customers can use the service
in an ever more convenient and comfortable manner. In addition, in response to
demand for a nationwide public wireless LAN service that covers the service
areas of NTT West and East and consumer interest in using different wireless LAN
terminals for different purposes, each of which is increasing in line with the
growing number of customers, NTT West decided to offer a new service that
supports mutual-roaming between NTT West and NTT East through "FLET'S SPOT" and
compatibility with multiple wireless LAN terminals from October 2005.
--------------------------------------------------------------------------------
2. Development of the Solution Business
NTT West launched "Mobile IP Centrex Solution" as a new item in the "N.prosol"
line-up. This solution allows fast and low-cost creation of a ubiquitous office
environment that integrates fixed-line phones with mobile phones and voice with
data by combining "HIKARI DENWA Business Type," an IP phone service for
corporate customers, with 3G mobile phone and wireless LAN dual terminals.
For security-related services, NTT West worked together with NTT MARKETING ACT
CORPORATION and NTT NEOMEIT CORPORATION to launch "ThinClient Total Solution," a
system that prevents confidential information from being taken out illegally by
a person inside of an organization or being leaked via lost or stolen data. It
is targeted at corporate customers and local governments that have concerns
about information security measures following the enforcement of the Law
Concerning the Protection of Personal Information.
To provide a higher level of authentication at login to business systems that
are constructed and operated from a network of multiple sites, NTT West also
introduced the "Biometrics-enabled IC Card Security System" jointly with NTT
CARD SOLUTION CORP. This system combines biometrics technology, which has gained
attention due to its ability to protect personal information against loss or
theft, with "ELWISE-CARD," which is an IC card developed by NTT Service
Integration Laboratories.
Also, NTT West and NTT COMWARE CORPORATION jointly installed a biometrics
authentication system within the electronic prefectural office systems of the
Saga Prefectural Office, which is the first biometric authentication system that
manages access from all employee computer terminals to be introduced in a
prefectural government office.
Furthermore, NTT West opened its business service center to provide secure,
safe, and reliable services to preferred corporate customers that use many
services, such as leased circuits and LAN services. The service center manages
the entire process of order acceptance, installation, and support for stable
operation in a prompt, flexible, and integrated manner, with the goal of
providing smooth multi-point, multi-line connection, prompt repair service, and
comprehensive after-sale service, regardless of type of circuit or location.
--------------------------------------------------------------------------------
3. Expanded NTT West Group Operations
NTT NEOMEIT CORPORATION collaborated with Hewlett-Packard Japan Ltd. to launch
the "Community-Based IT Full Support Service Business," which offers a full
range of support services in an integrated manner from provision of IT equipment
to system construction, operation and maintenance, and data erasure / recycling
of PCs and servers at the time of system upgrade.
NTT NEOMEIT also developed "u-Consent (outlet) Service (tentative name)," which
is Japan's first home appliance control service that creates a remote control
environment by networking existing home appliances and combining broadband
circuits with mobile phones. NTT NEOMEIT plans to start a field trial in the
second half of the fiscal year.
NTT MARKETING ACT CORPORATION has provided nursing homes with "ACTOS KIT TAG de
OMAMORI (protect) MENU," a system that was developed jointly with NTT APPLIE
CORPORATION, Dai Nippon Printing Co., Ltd., and NTT West, based on trial results
of a system that combines broadband circuit and wireless IC tag technologies.
NTT MARKETING ACT also launched the "ACTOSMALL SHUTTEN (shop-opening) SERVICE"
at its Internet shopping site ACTOSMALL," which provides an all-in-one package
of support services covering acquisition of new customers, settlement and
delivery, to general business operators who are planning to open an Internet
store and is also working to increase the number of customers and shops through
an alliance with the portal site "ACTOS e-MACHISHIROU (find information about
your town on the Web)."
4. Measures for Fixed-Line Telephone Services
Faced with a widespread use of direct subscriber telephone services using dry
copper, NTT West lowered rates, including by implementing discounts on basic
charges (line service charges) for customers who receive consolidated bills for
multiple lines, in order to encourage continued use of NTT West's telephone
services.
The "Number Display" service exceeded five million subscribers in less than
seven years after its full-scale launch due to the fact it meets the needs of
home telephone users and serves to improve customer service at telephone
reception desks in a range of business environments.
--------------------------------------------------------------------------------
NTT West also worked to maintain and improve the level of customer service
throughout the entire service area of NTT West. As part of such efforts, NTT
West established a system whereby calls to 133 (for repair service) are
transferred to "Number 113" centers in other regions when call volume is heavy
due to natural disaster or equipment failure, to allow the handling of as many
calls as possible.
In addition to the above, NTT West waived basic charges for customers who could
not use their telephones for 24 hours or longer due to building damage from
typhoons, and those who had no access to their telephones for 24 hours or longer
because they had been ordered to evacuate. This was based on the number of days
without telephone access. Reinstallation charges for customers who moved from
damaged buildings to temporary housing were also waived.
Furthermore, amid intense public criticism arising from a series of corporate
scandals, the NTT West Group has been actively working to reinforce its
corporate ethics. During this period, the Group further applied itself to
cultivating high ethical standards both officially and privately, and creating a
solid corporate culture against fraud and misconduct. Among other things, the
Group held corporate ethics workshops similar to those held last year for all
levels of management and employees, and conducted surveys to determine the level
of employee awareness of ethical issues.
Meanwhile, in the light of the full-fledged enforcement of the Law Concerning
the Protection of Personal Information, the need for proper handling of customer
information is more significant than ever. The NTT West Group reinforced its
efforts to protect customer information by implementing various measures: (1)
creation of the "Information Security Promotion Center" to provide guidance
across the group companies; (2) conducting workshops and on-site inspections of
contractors to implement stricter control systems and procedure based on the "
Security Guidelines for Protection of Customer Information Held by Contractors";
(3) check on the level of understanding concerning the protection of customer
information by self-evaluation testing on the Web for all employees (including
those in group companies, and temporary workers) and; (4) preparation and
distribution of "Q&As" on the protection of personal information and "One-Point
Advice" summarizing precautions.
--------------------------------------------------------------------------------
To lay the groundwork for such measures, the entire NTT West Group carried out "
customer first" activities and continued to work diligently to earn the trust
and confidence of its customers.
As a result of the above measures, the results of our principal services for the
six months ended September 30, 2005 were as follows: the number of subscriber
telephone lines installed stood at 24.71 million; in INS-Net services, the
number of INS-Net 64 lines installed totaled 3.68 million and; the number of
FLET'S ADSL and FLET'S HIKARI installations came to 2.61 million and 1.05
million, respectively.
Operating revenue, recurring profit, and net profit for the first six months of
the fiscal year ending amounted to 1005.0 billion yen, 30.6 billion yen, and
19.1 billion yen, respectively.
--------------------------------------------------------------------------------
2. Non-Consolidated Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
--------------------------------------------
March 31, September Increase
2005 30, 2005 (Decrease)
--------- --------- ----------
ASSETS
Fixed assets:
Fixed assets-telecommunications businesses
Property, plant and equipment 2,920,524 2,911,758 (8,766 )
Machinery and equipment 550,458 566,959 16,501
Antenna facilities 11,407 10,972 (435 )
Terminal equipment 27,847 30,804 2,956
Local line facilities 826,738 819,175 (7,562 )
Long-distance line facilities 8,497 7,806 (690 )
Engineering facilities 647,060 638,144 (8,916 )
Submarine line facilities 5,177 4,653 (523 )
Buildings 555,067 537,858 (17,208 )
Construction in progress 38,253 48,966 10,713
Other 250,017 246,416 (3,600 )
Intangible fixed assets 94,823 94,070 (752 )
Total fixed assets-telcommunications businesses 3,015,348 3,005,829 (9,519 )
Investments and other assets
Deferred income taxes 391,488 353,779 (37,708 )
Other investments 34,376 31,497 (2,879 )
Allowance for doubtful accounts (713 ) (450 ) 263
Total investments and other assets 425,151 384,827 (40,323 )
Total fixed assets 3,440,499 3,390,656 (49,843 )
Current assets:
Cash and bank deposits 111,479 114,509 3,029
Notes receivable 14 66 52
Accounts receivable, trade 379,119 314,267 (64,852 )
Supplies 34,833 35,211 378
Other current assets 118,116 102,199 (15,917 )
Allowance for doubtful accounts (3,233 ) (4,306 ) (1,073 )
Total current assets 640,329 561,947 (78,382 )
---------- ---------- -----------
TOTAL ASSETS 4,080,829 3,952,603 (128,225 )
---------- ---------- -----------
-5-
--------------------------------------------------------------------------------
(Millions of yen)
----------------------------------------
March 31, September Increase
2005 30, 2005 (Decrease)
--------- --------- ----------
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company 1,055,194 1,053,041 (2,153 )
Liability for employees' severance payments 710,090 695,220 (14,870 )
Other long-term liabilities 10,112 12,459 2,347
Total long-term liabilities 1,775,397 1,760,721 (14,676 )
Current liabilities:
Current portion of long-term borrowings from parent company 200,090 230,908 30,817
Accounts payable, trade 167,218 116,178 (51,040 )
Accounts payable, other 269,332 152,736 (116,595 )
Accrued taxes on income 2,481 1,083 (1,397 )
Other current liabilities 115,567 152,370 36,803
Total current liabilities 754,690 653,277 (101,412 )
---------- ---------- -----------
TOTAL LIABILITIES 2,530,087 2,413,998 (116,088 )
---------- ---------- -----------
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 56,534 (12,136 )
Total earned surplus 68,670 56,534 (12,136 )
Net unrealized gains (losses) on securities 17 16 (1 )
---------- ---------- -----------
TOTAL SHAREHOLDERS' EQUITY 1,550,741 1,538,604 (12,137 )
---------- ---------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,080,829 3,952,603 (128,225 )
---------- ---------- -----------
-6-
--------------------------------------------------------------------------------
3. Non-Consolidated Comparative Statements of Income
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
-------------------------------------------------------------
Six Six Increase Year
months months (Decrease) ended
ended ended ---------- March 31,
September September 2005
30, 2004 30, 2005 ---------
--------- ---------
Recurring profits and losses
Operating revenues and expenses
Telecommunications businesses
Operating revenues 956,272 933,491 (22,780 ) 1,921,025
Operating expenses 907,902 905,843 (2,059 ) 1,846,367
Operating income from telecommunications businesses 48,369 27,648 (20,721 ) 74,657
Related businesses
Operating revenues 72,915 71,508 (1,407 ) 177,022
Operating expenses 73,295 73,080 (215 ) 181,531
Operating losses from related businesses (380 ) (1,571 ) (1,191 ) (4,508 )
Operating income 47,989 26,076 (21,912 ) 70,148
Non-operating revenues and expenses
Non-operating revenues: 26,431 26,528 96 56,074
Interest income 2 2 (0 ) 6
Lease income 23,883 23,417 (466 ) 47,648
Miscellaneous income 2,545 3,108 562 8,419
Non-operating expenses: 21,001 21,930 928 46,135
Interest expenses 9,826 8,399 (1,427 ) 19,264
Lease expenses 9,993 10,937 944 21,858
Miscellaneous expenses 1,182 2,593 1,411 5,012
Recurring profit 53,419 30,674 (22,745 ) 80,087
Special profits and losses
Special profits 3,662 2,674 (988 ) 10,170
Special losses 3,590 - (3,590 ) 7,181
Income before Income taxes 53,491 33,348 (20,143 ) 83,077
Corporation, inhabitant, and enterprise taxes (32,908 ) (23,764 ) 9,143 (57,120 )
Deferred tax expenses (benefits) 54,800 37,994 (16,805 ) 99,100
Net income 31,599 19,118 (12,480 ) 41,097
Unappropriated retained earnings brought forward 27,572 37,415 9,842 27,572
Unappropriated retained earnings for the period 59,172 56,534 (2,638 ) 68,670
-7-
--------------------------------------------------------------------------------
4. Business Results(Non-Consolidated Operating Revenues)
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
---------------------------------------------------------------
Six Six Increase Percent Year
months months (Decrease) Increase ended
ended ended ---------- (Decrease) March 31,
September September ---------- 2005
30, 2004 30, 2005 ---------
--------- ---------
Voice transmission services revenues 697,360 643,377 (53,982) (7.7%) 1,369,195
(excluding the amounts of IP services revenues)
Monthly charge revenues* 446,489 395,162 (51,327) (11.5%) 872,886
Call rates revenues* 103,651 93,506 (10,144) (9.8%) 198,733
Interconnection call revenues* 101,730 108,223 6,493 6.4% 209,544
IP services revenues 82,481 108,744 26,263 31.8% 180,326
Leased circuit services revenues 87,440 85,057 (2,383) (2.7%) 174,392
(excluding the amounts of IP services revenues)
Telegram services revenues 14,731 14,391 (340) (2.3%) 31,180
Other telecommunications services revenues 74,259 81,921 7,662 10.3% 165,929
Telecommunications total revenues 956,272 933,491 (22,780) (2.4%) 1,921,025
--------- --------- ---------- ---------- ---------
Related business total revenues 72,915 71,508 (1,407) (1.9%) 177,022
--------- --------- ---------- ---------- ---------
Total operating revenues 1,029,187 1,005,000 (24,187) (2.4%) 2,098,048
--------- --------- ---------- ---------- ---------
* Partial listing only
-8-
--------------------------------------------------------------------------------
5. Non-Consolidated Comparative Statements of Cash Flows
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
---------------------------------------------------------
Six Six Increase Year
months months (Decrease) ended
ended ended ---------- March
September September 31, 2005
30, 2004 30, 2005 --------
--------- ---------
I Cash flows from operating activities:
Income before income taxes 53,491 33,348 (20,143 ) 83,077
Depreciation and amortization 217,843 215,325 (2,518 ) 435,060
Loss on disposal of property, plant and equipment 17,273 14,905 (2,368 ) 33,319
Increase (decrease) in liability for employees' (14,678 ) (14,870 ) (192 ) (80,346 )
severance payments
(Increase) decrease in accounts receivable 53,958 66,218 12,260 1,956
(Increase) decrease in inventories 1,384 (378 ) (1,763 ) 4,606
Increase (decrease) in accounts payable and (147,372 ) (137,342 ) 10,029 (6,390 )
accrued expenses
(increase) decrease in accrued consumption tax - 62 62 (62 )
receivable
Increase (decrease) in accrued consumption tax 1,946 1,693 (252 ) (2,652 )
payable
Other (28,316 ) (19,977 ) 8,339 (3,381 )
---------- ---------- ----------- ----------
Sub-total 155,530 158,984 3,454 465,187
---------- ---------- ----------- ----------
Interest and dividends received 95 162 67 283
Interest paid (9,907 ) (8,955 ) 952 (19,698 )
Income taxes received (paid) 52,474 57,480 5,005 52,439
---------- ---------- ----------- ----------
Net cash provided by (used in) operating 198,193 207,673 9,479 498,212
---------- ---------- ----------- ----------
II Cash flows from investing activities:
Payments for property, plant and equipment (185,081 ) (241,052 ) (55,971 ) (381,332 )
Proceeds from sale of property, plant and 4,395 3,717 (678 ) 13,567
equipment
Acquisition of investment securities (2,300 ) (1,165 ) 1,134 (3,678 )
Proceeds from sale of investment securities 155 2,148 1,992 2,239
Other 152 253 101 (197 )
---------- ---------- ----------- ----------
Net cash provided by (used in) investing (182,677 ) (236,098 ) (53,420 ) (369,401 )
activities
---------- ---------- ----------- ----------
III Cash flows from financing activities:
Proceeds from issuance of long-term debt 100,000 96,707 (3,292 ) 190,000
Payments for settlement of long-term debt (36,469 ) (68,043 ) (31,573 ) (276,201 )
Net increase (decrease) in short-term borrowings (40,000 ) 23,000 63,000 2,000
Dividends paid (34,494 ) (31,200 ) 3,294 (34,494 )
---------- ---------- ----------- ----------
Net cash provided by (used in) financing (10,964 ) 20,463 31,428 (118,696 )
activities
---------- ---------- ----------- ----------
IV Net increase (decrease) in cash and cash 4,551 (7,961 ) (12,512 ) 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 123,358 120,959 (2,398 ) 128,920
---------- ---------- ----------- ----------
-9-
--------------------------------------------------------------------------------
November 9, 2005
NTT Com Announces Interim Financial Results
For Fiscal Half Year Ended September 30, 2005
TOKYO, JAPAN - NTT Communications (NTT Com) today announced non-consolidated
financial results for the fiscal half-year ended September 30, 2005. Operating
revenues advanced to 547.8 billion yen, up 4.3% or 22.4 billion yen year on
year. Operating income fell 13.5 billion yen, or 28.3%, to 34.3 billion yen, and
recurring profit totaled 38.0 billion yen, down 18.6% or 8.7 billion yen. Net
income totaled 2.8 billion yen, down 89.8% or 24.8 billion yen as a result of
revaluation of affiliated companies NTT USA, Inc., JSAT Inc., and NTT EUROPE
LTD. being posted as special losses of 16.4 billion yen, 15.9 billion yen, and
5.3 billion yen, respectively, despite distributable income of 22.3 billion yen
posted as special profit from the dissolution of NTT Investment Singapore Pte.
Ltd.
BACKGROUND
Corporate Vision
Since fiscal 2003, NTT Com has been evolving into a "Global IP Solution Company"
to provide turnkey solutions that meet needs for advanced communications. To
further this vision, NTT Com is focusing on five core business domains:
solution, network management, security, global, and new this year, ubiquitous
services, which reflect NTT Com's efforts to realize a ubiquitous society.
Changes in Market Environment and Business Base
The current market for information and communications technologies (ICT) is
extremely challenging with the rapid rise in popularity of VoIP (Voice over
Internet Protocol), low-price VPN (Virtual Private Network) and other new
services. In addition, the prices of network services continue to fall due to
the shift from conventional telephone and leased-circuit services. Subsequent
confusion and uncertainty in the market has resulted in strategic partnerships
across industries to survive.
At the same time, as ICT becomes indispensable for both business and private
activities, there is a boost for the need for one-stop services such as
IP-convergence (of data and voice communications) and fixed-mobile convergence
(of fixed and mobile communications).
Capitalizing on these market changes, NTT Com is working with companies both
within and outside the NTT Group to create a ubiquitous environment that offers
customers maximum one-stop service utility.
--------------------------------------------------------------------------------
OVERVIEW OF OPERATIONS
As a Global IP Solution Company, NTT Com is strategically concentrating
resources on five growth-oriented domains to create a new earnings base.
1. Ubiquitous Services
NTT Com's newly added ubiquitous services provide one-stop, value-added
solutions that link fixed-line and mobile wireless networks. NTT Com has begun
market trials of "Smart Biz Kit," which converges fixed-line and mobile
communications to allow NTT DoCoMo's third-generation FOMA(R) mobile handsets to
access companies' internal systems and the Internet, and implements security
measures and other functions. NTT Com also uses fixed-mobile convergence to
offer a corporate IP-telephone service using FOMA(R).
In addition, a new "Click to Connect" service combines a network telephone
directory and inexpensive IP-telephony.
2. Security Services
NTT Com provides comprehensive services that comply with international standards
for Information Security Management Systems (ISMS). These range from
consultation to installation and operation of state-of-the-art security systems.
For corporate and government customers who need to comply with the Protection of
Personal Information Law, NTT Com has introduced "PC Security Solution," which
combines such features as restricted access using IC cards, thin client,
encryption and quarantine solutions to supplement NTT Com's other security
services. It also enhanced collaboration between sales and service development
to facilitate one-stop sales and technical support services.
To address concerns of individual customers, NTT Com updated pattern files for
the "OCN Virus Check" service and strengthened other security services.
--------------------------------------------------------------------------------
3. Solution Services
NTT Com's highly practical services are creating new business models and
lifestyles. Corporate and government customers can raise efficiency and reduce
the total cost of ownership through services that combine platforms for
security, mobile communications, and more, as well as managed services ranging
from network construction to server operation and monitoring. For individual
customers, NTT Com actively promotes one-stop services such as "OCN Hikari with
FLET'S," a combination of OCN and "B FLET'S," while enhancing service content,
such as images and music distributed through "OCN Theater" and "OCN MUSIC STORE.
" The company launched a videophone service between its IP videophone ".Phone
Personal" and DoCoMo's FOMA(R) mobile handsets for even greater convenience.
4. Network Management Services
NTT Com provides management solutions for sophisticated networks and ICT
resources via seamless, secure and highly simplified one-stop services. NTT
Com's enhanced "Integrated VPN," the optimized network solution that combines
its lineup of VPN services and also offered additional bundled services
combining systems integration and networks. One-stop "management outsourcing"
for servers, routers and networks also proved successful.
For small offices/home offices (SOHO) and small and medium-sized businesses, NTT
Com launched "Web Camera Package," which offers a video camera and network in
one for convenient video monitoring. The company also began providing "Customer
Connect," which allows a customer service center to be established without
significant capital investment.
5. Global Services
NTT Com creates a seamless, full lineup of services to support multinational
organizations. In India, where the number of multinational enterprises is
increasing, NTT Com has become the first Japanese carrier to establish a local
subsidiary, NTT Communications India Private Limited, to integrate local
networks as well as solutions. NTT Com is leveraging its strengths to provide
Tier 1 status Internet backbone and corporate data network services and has
commenced a next-generation integrated network service, "Global Super Link,"
which offers wide-area Ethernet closed network services in open networks. The
company also launched "Arcstar Global Security Operation Service," an
outsourcing service covering rental, set up, operation and maintenance of
security equipment in 88 countries to provide effective, economical security.
Furthermore, the company's high level of customer satisfaction and highly
flexible support through its dedicated support team have been widely acclaimed,
making NTT Com the first Japanese and Asian carrier to receive the Best Customer
Care Award for its corporate customer support. The award is one of the World
Communication Awards for global carriers and vendors sponsored by Terrapinn, an
international media company.
--------------------------------------------------------------------------------
OPERATIONAL RESULTS
Revenues for voice transmission services have grown due to strengthened service
offerings and aggressive sales promotions, despite a challenging business
climate. While revenues for data communications, excluding IP, are declining
with the shift toward lower cost IP services, IP-related revenues are increasing
steadily.
Overall, operating revenues increased while recurring profit decreased year on
year, reflecting continued fierce market competition.
1. Voice Transmission Services (Excluding IP)
The severe market environment for voice transmission (excluding IP) continues
due to intensifying competition from the shrinking fixed-line telephone market
and the popularity of IP telephony. However, NTT Com made efforts to keep or
increase revenues for domestic telephone services by offering such services as
PL@TINUM LINE as well as providing various packaged solutions that anticipate
customers' needs. The company is also vigorously stepping up sales activities to
increase market share and revenues from international fixed-line calls.
Operating revenues for voice transmission services, excluding IP services, rose
7.5% year on year, or 16.5 billion yen, to 236.5 billion yen.
2. IP Services
Revenues increased steadily amid strong demand for IP services. As of October
22, 2005, OCN subscribers topped 5 million due to aggressive promotion of
broadband, including "OCN Hikari with FLET'S," a one-stop service with "B
FLET'S," and enhanced security and content applications.
Operating revenues for IP services amounted to 150.0 billion yen, up 11.9% or
15.9 billion yen year on year.
3. Data Communications Services (Excluding IP)
Revenues for data communications services (excluding IP) decreased due to the
migration towards lower cost IP-VPN and other VPN services that utilize the
Internet. However, the company worked on maintaining revenues by providing
simple and highly reliable services for customers who require quality,
reliability and security.
Operating revenues for data communications services (excluding IP) totaled 91.5
billion yen, down 17.8% or 19.8 billion yen year on year.
--------------------------------------------------------------------------------
4. Solution Services
Revenues are growing steadily as NTT Com actively develops high value-added
services providing total solutions for facilities, such as data centers, and
security and managed-services for monitoring and operations.
Operating revenues for solution services grew 20.9% year on year, or 9.3 billion
yen, to 53.8 billion yen.
5. Other Services
Other operating revenues, mainly from equipment leases and product sales,
totaled 15.9 billion yen, up 3.8% or 0.5 billion yen year on year.
*FOMA(R) is a registered trademark of NTT DoCoMo.
# # #
About NTT Com
NTT Communications is a subsidiary of Nippon Telegraph and Telephone (NTT)
Corporation (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 network, combined with the networks of partner
companies around the world, offers access to more than 200 countries. NTT Com
Group has 34 companies in the Asia-Pacific region, Europe and the Americas. For
more information, please visit www.ntt.com
For More Information
(Mr.) Noboru Takeuchi, (Mr.) Makoto Inoue or (Mr.) Hidenori Tsuruta
Accounts and Finance Department
Tel. +81 3 6700 4311
--------------------------------------------------------------------------------
IV. Non-Consolidated Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
--------------------------------------------
March 31, September Increase
2005 30, 2005 (Decrease)
--------- --------- ----------
ASSETS
Fixed assets:
Fixed assets for telecommunications businesses
Property, plant and equipment 515,409 506,680 (8,728 )
Machinery and equipment 169,185 172,594 3,408
Antenna facilities 7,669 7,350 (318 )
Terminal equipment 3,680 3,474 (206 )
Local line facilities 440 910 469
Long-distance line facilities 14,846 13,812 (1,034 )
Engineering facilities 78,693 76,720 (1,973 )
Submarine line facilities 10,084 8,321 (1,763 )
Buildings 141,234 137,861 (3,373 )
Construction in progress 10,370 10,219 (151 )
Other 79,202 75,415 (3,786 )
Intangible fixed assets 125,321 156,031 30,709
Total fixed assets for telecommunications businesses 640,730 662,711 21,981
Investments and other assets
Investment securities 77,394 128,410 51,015
Investments in subsidiaries and affiliated companies 152,220 106,521 (45,698 )
Deferred income taxes 305,557 302,861 (2,695 )
Other investments 58,896 87,315 28,419
Allowance for doubtful accounts (363 ) (317 ) 45
Total investments and other assets 593,705 624,791 31,086
Total fixed assets 1,234,435 1,287,503 53,067
Current assets:
Cash and bank deposits 61,084 52,852 (8,231 )
Notes receivable 256 96 (160 )
Accounts receivable, trade 176,443 151,356 (25,086 )
Supplies 10,669 10,084 (584 )
Other current assets 60,039 34,520 (25,519 )
Allowance for doubtful accounts (1,716 ) (2,927 ) (1,210 )
Total current assets 306,776 245,983 (60,792 )
----------- ----------- ------------
TOTAL ASSETS 1,541,212 1,533,487 (7,725 )
----------- ----------- ------------
--------------------------------------------------------------------------------
(Millions of yen)
--------------------------------------------
March 31, September Increase
2005 30, 2005 (Decrease)
--------- --------- ----------
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company 678,813 719,357 40,544
Liability for employees' severance payments 73,380 73,430 49
Other long-term liabilities 3,965 4,737 772
Total long-term liabilities 756,159 797,525 41,366
Current liabilities:
Current portion of long-term borrowings from parent company 82,530 70,063 (12,466 )
Accounts payable, trade 60,265 32,818 (27,447 )
Accounts payable, other 178,524 154,752 (23,772 )
Accrued taxes on income 12,007 7,804 (4,203 )
Other current liabilities 46,619 60,071 13,452
Total current liabilities 379,947 325,510 (54,436 )
----------- ----------- ------------
TOTAL LIABILITIES 1,136,107 1,123,036 (13,070 )
----------- ----------- ------------
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 35,303 (5,927 )
Total earned surplus 41,231 35,303 (5,927 )
Net unrealized gains (losses) on securities 33,074 44,347 11,272
----------- ----------- ------------
TOTAL SHAREHOLDERS' EQUITY 405,105 410,450 5,345
----------- ----------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,541,212 1,533,487 (7,725 )
--------- --------- ---------- -
--------------------------------------------------------------------------------
V. Non-Consolidated Comparative Statements of Income
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
--------------------------------------------------------------
Six Six Increase Year
months months (Decrease) ended
ended ended ---------- March
September September 31,
30, 2004 30, 2005 2005
--------- --------- -------
Recurring profits and losses
Operating revenues and expenses
Telecommunications businesses
Operating revenues 480,849 497,567 16,718 968,438
Operating expenses 431,990 460,528 28,538 895,223
Operating income from telecommunications 48,858 37,038 (11,820 ) 73,214
businesses
Related businesses
Operating revenues 44,539 50,313 5,773 121,634
Operating expenses 45,433 52,957 7,523 124,972
Operating losses from related businesses (893 ) (2,643 ) (1,750 ) (3,338 )
Operating income 47,965 34,394 (13,570 ) 69,876
Non-operating revenues and expenses
Non-operating revenues: 13,439 16,130 2,690 26,166
Interest income 666 1,233 566 1,539
Dividends received 792 2,502 1,709 982
Lease income 9,696 9,425 (270 ) 18,945
Miscellaneous income 2,284 2,969 685 4,699
Non-operating expenses: 14,611 12,439 (2,171 ) 28,082
Interest expenses 7,390 6,907 (483 ) 14,468
Lease expenses 6,149 4,122 (2,026 ) 9,024
Miscellaneous expenses 1,071 1,409 338 4,589
Recurring profit 46,793 38,085 (8,708 ) 67,959
Special profits and losses
Special profits - 22,327 22,327 4,094
Special losses - 37,725 37,725 25,022
Income before Income taxes 46,793 22,687 (24,106 ) 47,032
Corporation, inhabitant, and enterprise taxes 21,270 22,965 1,695 37,420
Deferred tax expenses (benefits) (2,200 ) (3,112 ) (912 ) (15,000 )
Net income 27,723 2,834 (24,889 ) 24,612
Unappropriated retained earnings brought forward 16,618 32,469 15,851 16,618
Unappropriated retained earnings for the period 44,342 35,303 (9,038 ) 41,231
--------------------------------------------------------------------------------
VI. Business Results (Non-Consolidated Operating Revenues)
(Based on accounting principles generally accepted in Japan)
(Millions of Yen)
---------------------------------------------------------------
Six Six Increase Percent Year
months months (Decrease) Increase ended
ended ended ---------- (Decrease) March 31,
September September ---------- 2005
30, 2004 30, 2005 ---------
--------- ---------
Voice transmission services revenues 220,002 236,522 16,519 7.5% 440,655
(excluding the amounts of IP services revenues)
IP services revenues 134,072 150,007 15,934 11.9% 278,315
Open Computer Network services revenues* 65,676 69,228 3,552 5.4% 133,475
IP-Virtual Private Network services revenues* 30,425 34,558 4,132 13.6% 63,198
Wide-Area Ethernet services revenues* 15,883 20,631 4,747 29.9% 35,086
Data communications revenues 111,409 91,549 (19,860) (17.8%) 212,751
(excluding the amounts of IP services revenues)
Leased circuit services revenues* 70,194 58,736 (11,457) (16.3%) 135,642
Solution services revenues 44,506 53,813 9,306 20.9% 125,829
Others 15,396 15,988 591 3.8% 32,520
--------- --------- ---------- ---------- ---------
Total operating revenues 525,389 547,880 22,491 4.3% 1,090,072
--------- --------- ---------- ---------- ---------
* Partial listing only
--------------------------------------------------------------------------------
VII. Non-Consolidated Comparative Statements of Cash Flows
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
---------------------------------------------------------
Six Six Increase Year
months months (Decrease) ended
ended ended ---------- March
September September 31, 2005
30, 2004 30, 2005 --------
--------- ---------
I Cash flows from operating activities:
Income before income taxes 46,793 22,687 (24,106 ) 47,032
Depreciation and amortization 60,489 59,869 (620 ) 123,494
Loss on disposal of property, plant and equipment 1,901 2,356 455 13,822
Increase (decrease) in allowance for doubtful (29 ) 1,165 1,195 (325 )
accounts
Increase (decrease) in liability for employees' (223 ) 49 273 (1,035 )
severance payments
Write-off of investments in affiliated companies - 37,725 37,725 25,022
(Increase) decrease in accounts receivable 34,386 32,741 (1,645 ) (3,934 )
(Increase) decrease in inventories (670 ) 584 1,254 (2,225 )
Increase (decrease) in accounts payable and (40,759 ) (62,357 ) (21,598 ) 25,228
accrued expenses
Increase (decrease) in accrued consumption tax 713 1,872 1,158 (269 )
payable
Other (1,864 ) (28,643 ) (26,779 ) 10,044
Sub-total 100,737 68,051 (32,685 ) 236,854
----------- ----------- ----------- ----------
Interest and dividends received 1,304 3,535 2,231 2,222
Interest paid (7,581 ) (7,024 ) 557 (14,733 )
Income taxes received (paid) 9,143 (37,216 ) (46,359 ) 9,159
----------- ----------- ----------- ----------
Net cash provided by (used in) operating 103,602 27,346 (76,256 ) 233,503
activities
----------- ----------- ----------- ----------
II Cash flows from investing activities:
Payments for property, plant and equipment (68,023 ) (64,350 ) 3,673 (155,158 )
Proceeds from sale of property, plant and 1,539 2,814 1,274 3,011
equipment
Acquisition of investment securities (0 ) (2,512 ) (2,511 ) (1,603 )
Proceeds from sale of investment securities 13 674 660 7,728
Payments for long-term loans (6,643 ) (26,659 ) (20,015 ) (8,783 )
Proceeds from long-term loans receivable 296 23,947 23,651 409
(Increase) decrease in short-term loan (1,191 ) (555 ) 635 (365 )
Other 297 1,020 723 (34 )
----------- ----------- ----------- ----------
Net cash provided by (used in) investing (73,711 ) (65,620 ) 8,091 (154,794 )
activities
----------- ----------- ----------- ----------
III Cash flows from financing activities:
Proceeds from issuance of long-term debt 6,643 56,659 50,015 8,783
Payments for settlement of long-term debt (4,139 ) (31,297 ) (27,157 ) (98,297 )
Net increase (decrease) in short-term borrowings (2,190 ) 13,355 15,546 15,246
Dividends paid (8,811 ) (8,700 ) 111 (8,811 )
----------- ----------- ----------- ----------
Net cash provided by (used in) financing (8,498 ) 30,017 38,515 (83,078 )
activities
----------- ----------- ----------- ----------
IV Effect of exchange rate changes on cash and cash (5 ) 25 30 9
equivalents
V Net increase (decrease) in cash and cash 21,387 (8,231 ) (29,618 ) (4,359 )
equivalents
VI Cash and cash equivalents at beginning of period 65,444 61,084 (4,359 ) 65,444
----------- ----------- ----------- ----------
VII Cash and cash equivalents at end of period 86,831 52,852 (33,978 ) 61,084
----------- ----------- ----------- ----------
--------------------------------------------------------------------------------
NTT Communications Major Services
"Myline" carrier-selection services
As of March 31, 2005 As of September 30, 2005
---------------------------- ----------------------------
Myline registrations for inter-prefuctural long distance 25,153,000 25,830,000
calls (subscriber market share: (subscriber market share:
60.7%) 63.7%)
Myline registrations for international calls 21,388,000 22,184,000
(subscriber market share: (subscriber market share:
57.3%) 60.5%)
Traffic
April 1, 2004 to March 31, As of September 30, 2005
2005 ----------------------------
----------------------------
Traffic* Number of calls 8.04 billion **
Duration of calls 360 million hours **
---------
* Calls for NTT Com's specific numbers and inter-prefectural calls. Does
not include free dial and interconnected calls.
** Not yet available.
"OCN" Internet access services
As of March 31, 2005 As of September 30, 2005
---------------------------- ----------------------------
OCN service subscribers 4,640,000 4,950,000
Main network services for business customers
As of March 31, 2005 As of September 30, 2005
---------------------------- ----------------------------
Business customers of main network services 354,000 364,000
Leased circuits 41,000 38,000
Frame relay/Cell relay 39,000 34,000
IP-VPN 93,000 100,000
OCN Internet access 150,000 157,000
Ethernet services (e-VLAN) 22,000 25,000
Data centers
As of March 31, 2005 As of September 30, 2005
---------------------------- ----------------------------
Collocation service users 460 470
Data centers* 67 in Japan 67 in Japan
27 overseas 26 overseas
Total size of domestic data centers Approx. 56,000m2 Approx. 56,000m2
------
Note: Domestic centers are those that have applied for Information Security
management System approval.
--------------------------------------------------------------------------------
November 9, 2005
Nippon Telegraph and Telephone Corporation
Supplementary Data for
The Six Months Ended September 30, 2005
Contents
pages
------
1. Number of Subscribers 1
2. Number of Employees 2
3. Capital Investment 2
4. Financial Results and Projections 3-5
5. Average Monthly Revenue per Unit (ARPU) 6
6. Interest Bearing Liabilities (Consolidated) 7
7. Indices (Consolidated) 7
The forecasts included herein are forward-looking statements about the future
performance of NTT which are based on the assumptions, estimates, judgments,
projections and beliefs of the management of NTT in light of the information
currently available to it. The projected numbers in this release were derived
using certain assumptions that are indispensable for making projections in
addition to facts that have been ascertained in the past and recognized
accurately. Risks and uncertainties inherent in future projections, NTT's future
business operations, the state of the economy in Japan and abroad, possible
fluctuations in the securities markets and other changes in circumstances could
cause NTT's actual results to differ materially from the projected figures. The
projected figures included herein (including revenue and cost details) are
provided for the reference of investors. NTT group makes no representation or
warranty as to the accuracy or completeness of these figures.
--------------------------------------------------------------------------------
1. Number of Subscribers
(thousands)
--------------------------------------------------------------------
A B C D (Ref.)
As of As of As of As of As of
Mar. Jun. Sept. 30, 2005 Mar. 31, 2006 Mar. 31,
31, 30, --------------- --------------- 2006
2005 2005 ----------
------ ------
(Revised (Forecast
Forecast) when
--------------- previous
annual
Change Change results
------ ------ were
C-A D-A announced)
------ ------ ----------
Telephone Subscriber Line 50,321 49,603 49,028 (1,294 ) 46,284 (4,037 ) 46,148
NTT East 24,925 24,576 24,285 (639 ) 22,664 (2,261 ) 22,664
NTT West 25,396 25,026 24,742 (654 ) 23,620 (1,776 ) 23,484
INS-Net 8,467 8,320 8,186 (282 ) 7,418 (1,049 ) 7,354
NTT East 4,425 4,356 4,288 (137 ) 3,845 (581 ) 3,845
NTT West 4,042 3,964 3,898 (144 ) 3,573 (468 ) 3,509
INS-Net 64 7,885 7,735 7,599 (286 ) 6,865 (1,020 ) 6,802
NTT East 4,056 3,985 3,917 (139 ) 3,498 (559 ) 3,498
NTT West 3,829 3,749 3,682 (147 ) 3,367 (461 ) 3,305
INS-Net 1500 58 59 59 0 55 (3 ) 55
NTT East 37 37 37 0 35 (2 ) 35
NTT West 21 21 22 0 21 (1 ) 20
Telephone Subscriber Line + INS-Net 58,788 57,923 57,213 (1,575 ) 53,702 (5,086 ) 53,502
NTT East 29,350 28,933 28,573 (777 ) 26,509 (2,841 ) 26,509
NTT West 29,438 28,991 28,640 (798 ) 27,194 (2,245 ) 26,994
FLET'S ISDN 769 727 691 (78 ) 536 (233 ) 536
NTT East 413 392 373 (40 ) 263 (150 ) 263
NTT West 356 335 318 (38 ) 273 (83 ) 273
FLET'S ADSL 5,208 5,439 5,576 368 5,808 600 5,808
NTT East 2,833 2,922 2,971 138 3,033 200 3,033
NTT West 2,374 2,516 2,605 231 2,774 400 2,774
B FLET'S 1,665 1,991 2,356 691 3,465 1,800 3,465
NTT East 885 1,086 1,301 416 1,885 1,000 1,885
NTT West 779 905 1,055 275 1,579 800 1,579
Optical IP Phone Services 4 32 140 136 1,600 1,596 1,600
NTT East 4 30 100 97 1,000 996 1,000
NTT West 0 1 40 40 600 600 600
Conventional Leased Circuit 464 449 440 (24 ) 419 (44 ) 376
NTT East 240 232 227 (14 ) 216 (24 ) 203
NTT West 223 217 213 (10 ) 203 (20 ) 174
High Speed Digital 386 371 350 (36 ) 309 (77 ) 273
NTT East 211 203 192 (20 ) 167 (44 ) 169
NTT West 175 168 158 (17 ) 142 (33 ) 104
NTT Group Major ISPs 6,882 7,105 7,306 425 7,700 818 7,500
OCN* 4,640 4,794 4,950 310 5,200 560 5,000
Plala* 1,930 2,000 2,060 130 2,150 220 2,200
Cellular 48,825 49,430 49,904 1,079 50,900 2,075 50,700
FOMA* 11,501 13,710 16,770 5,269 23,500 11,999 24,100
i-mode 44,021 44,659 45,139 1,118 46,300 2,279 46,200
FOMA* 11,353 13,514 16,464 5,111 - - -
PHS 1,314 1,150 987 (327 ) 740 (574 ) 800
------
Notes: 1 No. of Telephone Subscriber Lines is the total of individual lines
and central station lines (Subscriber Telephone Light Plan is
included).
2 In terms of No. 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 (INS-Net 64 Lite Plan is
included).
3 No. of B FLET'S includes FLET's Hikari Premium provided by NTT West.
4 No. of Optical IP Phone Services is calculated by No. of thousand
channels.
5 NTT Group Major ISPs include WAKWAK, InfoSphere, in addition to OCN
and Plala.
6 No. of DoPa single service subscribers is included in the No. of
mova subscribers. DoPa single service subscribers are 544 thousand
as of Mar. 31, 2005, 582 thousand as of Jun. 30, 2005, 680 thousand
as of Mar. 31, 2006 (Revised forecast), and 730 thousand as of
Mar. 31, 2006 (forecast when previous annual results were
announced).
* Partial listing only.
-1-
--------------------------------------------------------------------------------
2. Number of Employees
A B D (Ref.)
As of As of As of As of
Sept. Sept. 30 2005 Mar. 31, Mar. 31,
30, ------------------- 2006 2006
2004 --------- ----------
-------
Change (Revised (Forecast
------ Forecast) when
--------- previous
annual
B-A results
------ were
announced)
----------
NTT Consolidated 216,350 211,600 (4,750 ) 198,500 198,650
Core Group Companies
NTT (Holding) 2,850 2,800 (50 ) 2,750 2,750
NTT East 14,900 8,400 (6,500 ) 8,150 13,850
NTT West 13,750 13,050 (700 ) 12,150 12,300
NTT Communications 7,850 7,750 (100 ) 7,650 7,650
NTT DATA (Consolidated) 18,900 20,450 1,550 19,850 19,250
NTT DoCoMo (Consolidated) 22,100 22,200 100 21,550 21,650
(Reference) "Outsourcing Companies"
East Outsourcing Companies 48,750 47,650 (1,100 ) 45,750 44,600
West Outsourcing Companies 53,350 51,200 (2,150 ) 48,700 48,650
------
Notes : 1 Figures for NTT Consolidated do not include the No. of employees
who retired / will retire at the end of a fiscal year and were
rehired / will be rehired at the beginning of the next fiscal
year.
2 Figures for East Outsourcing Companies and West Outsourcing
Companies include figures for companies in the facilities and
equipment field, management and marketing field and
administrative field. Figures for those companies include the No.
of employees who retired / will rehire at the end of a fiscal
year and were rehired / will be rehired at the beginning of next
fiscal year, as described below:
- At the end of fiscal year ended Mar. 31, 2006 (Revised
Forecast) (East Outsourcing Companies : 2,650 employees,
West Outsourcing Companies : 2,350 employees)
- At the end of fiscal year ending Mar. 31, 2006 (Forecast
when previous annual results were announced)(East
Outsourcing Companies : 2,450 employees, West Outsourcing
Companies : 2,350 employees)
3 Because of the structural reform of East Outsourcing Companies in
Jul. 1, 2005, 5,000 employees moved from NTT East to East
Outsourcing Companies, 650 employees moved from NTT East to NTT
ME, and 4,000 employees moved from East Outsourcing Companies to
NTT ME. The number of employees of NTT ME is 900 as of Sept. 30,
2004 and 5,350 as of Sept. 30, 2005.
3. Capital Investment
(billions of yen)
------------------------------------------------------------
A B D (Ref.)
Six Six Months Fiscal Fiscal
Months ended Sept. 30 year year
ended 2005 ending ending
Sept. ------------------ Mar. 31, Mar. 31,
30 2006 2006
2004 --------- ----------
------
Change (Revised (Forecast
------ Forecast) when
--------- previous
annual
results
B-A were
------ announced)
----------
NTT Consolidated 948.3 1,019.6 71.3 2,130.0 2,050.0
Subsidiaries
NTT (Holding) 7.7 9.2 1.5 21.0 21.0
NTT East 184.4 187.1 2.6 420.0 400.0
NTT West 166.6 216.0 49.4 410.0 380.0
NTT Communications 59.3 83.9 24.6 163.0 160.0
NTT DATA (Consolidated) 49.0 57.6 8.6 105.0 105.0
NTT DoCoMo (Consolidated) 433.1 405.9 (27.2 ) 871.0 848.0
------
Notes: 1 Capital Investments of NTT East, NTT West, and NTT Communications
for fiscal year ending Mar. 31, 2006 (Revised Forecast) include:
257 billion yen for voice transmission, 50 billion yen for data
transmission, 90 billion yen for leased circuit, 1 billion yen
for telegraph, 4 billion yen for R&D facilities, and 18 billion
yen for Joint Facilities, etc. for NTT East; 254 billion yen for
voice transmission, 57 billion yen for data transmission, 85
billion yen for leased circuit, 1 billion yen for telegraph,
3 billion yen for R&D facilities, and 10 billion yen for Joint
Facilities, etc. for NTT West; and 59 billion yen for voice
transmission, 18 billion yen for data transmission, 3 billion yen
for leased circuit, 48 billion yen for R&D facilities, and
35 billion yen for Joint Facilities, etc. for NTT Communications.
2 Capital Investments of NTT East and NTT West for fiscal year
ending Mar. 31, 2006 (Revised Forecast) include approximately 180
billion yen for optical fiber related investment in NTT East, and
approximately 160 billion yen for optical fiber related
investment in NTT West. Coverage rates of optical fiber are 85%
for NTT East and 84% for NTT West as of Mar. 31, 2006 (Revised
Forecast).
-2-
--------------------------------------------------------------------------------
4. Financial Results and Projections (NTT Consolidated, NTT (Holding))
(billions of yen)
-------------------------------------------------------------
A B C (Ref.)
Six Six Months ended Fiscal Fiscal
Months Sept. 30, 2005 year year
ended ------------------ ending ending
Sept. Mar. 31, Mar. 31,
30 2004 2006 2006
------- --------- ----------
change (Revised (Forecast
------ Forecast) when
--------- previous
annual
results
B-A were
------ announced)
----------
NTT Consolidated (US GAAP)
Operating Revenues 5,321.6 5,231.5 (90.1 ) 10,705.0 10,590.0
Fixed Voice Related Services 1,801.0 1,701.2 (99.8 ) - -
Mobile Voice Related Services 1,614.9 1,580.6 (34.3 ) - -
IP/Packet Communications Services 876.0 947.5 71.5 - -
Sales of Telecommunications Equipment 353.8 283.7 (70.1 ) - -
System Integration 388.1 402.9 14.8 - -
Other 287.8 315.6 27.8 - -
Operating Expenses 4,533.8 4,468.1 (65.7 ) 9,545.0 9,540.0
Cost of Sevices (exclusive of items shown separately 1,092.7 1,063.4 (29.3 ) - -
below)
Cost of equipment sold (exclusive of items shown 622.0 573.7 (48.3 ) - -
separately below)
Cost of systems integration (exclusive of items 241.3 247.6 6.2 - -
shown separately below)
Depreciation and amortization 1,052.7 1,023.6 (29.1 ) - -
Impairment loss - 3.4 3.4 - -
Selling, general and administrative expenses 1,525.1 1,556.4 31.3 - -
Operating Income 787.8 763.4 (24.4 ) 1,160.0 1,050.0
Income before Income Taxes 774.2 833.6 59.5 1,255.0 1,080.0
Net Income 344.6 330.7 (13.8 ) 525.0 440.0
(Ref.) Details of "Cost of services," "Cost of equipment sold," "Cost of systems integration" and "Selling, general
and administrative expenses"
Personnel 1,005.5 971.2 (34.3 ) - -
Cost of services and equipment sold, and selling, 2,274.1 2,298.7 24.6 - -
general and administrative expenses
Loss on disposal of property, plant and equipment 87.9 56.7 (31.2 ) - -
Other expenses 113.6 114.5 0.9 - -
Total 3,481.1 3,441.1 (40.0 ) - -
NTT (Holding) (JPN GAAP)
Operating Revenues 200.1 192.3 (7.7 ) 337.0 340.0
Operating Expenses 78.9 77.5 (1.4 ) 169.0 169.0
Operating Income 121.1 114.8 (6.2 ) 168.0 171.0
Non-Operating Revenues 35.4 31.8 (3.6 ) 63.0 64.0
Non-Operating Expenses 31.2 28.0 (3.1 ) 57.0 58.0
Recurring Profit 125.3 118.6 (6.7 ) 174.0 177.0
Net Income 408.9 339.6 (69.2 ) 395.0 174.0
-3-
--------------------------------------------------------------------------------
4. Financial Results and Projections (NTT East, NTT West)
(billions of yen)
-----------------------------------------------------------------
A B C (Ref.)
Six Six Months ended Fiscal Fiscal
Months Sept. 30, 2005 year year
ended ------------------- ending ending
Sept. Mar. 31, Mar. 31,
30 2004 2006 2006
------- --------- ----------
change (Revised (Forecast
------ Forecast) when
--------- previous
annual
results
B-A were
------ announced)
----------
NTT East (JPN GAAP)
Operating Revenues 1,071.4 1,049.9 (21.4 ) 2,093.0 2,012.0
Voice Transmission Services (excluding IP) 713.8 661.9 (51.8 ) 1,271.0 1,208.0
IP Services 98.0 127.1 29.1 281.0 295.0
Leased Circuit (excluding IP) 105.1 98.5 (6.5 ) 183.0 158.0
Telegraph 13.1 12.7 (0.3 ) 25.0 25.0
Others 73.7 82.8 9.1 333.0 326.0
Related Business 67.5 66.6 (0.9 )
Operating Expenses 1,023.5 1,002.8 (20.6 ) 2,026.0 1,997.0
Personnel 103.5 86.8 (16.6 ) 161.0 195.0
Cost of services and equipment sold, and 623.7 613.9 (9.7 ) 1,284.0 1,250.0
selling, general and administrative expenses
Depreciation and amortization 232.9 247.9 14.9 456.0 427.0
Loss on disposal of property, plant and 23.9 15.3 (8.5 ) 50.0 50.0
equipment
Taxes and public dues 39.4 38.8 (0.6 ) 75.0 75.0
Operating Income 47.9 47.1 (0.8 ) 67.0 15.0
Non-Operating Revenues 27.9 30.8 2.8 64.0 54.0
Non-Operating Expenses 22.4 21.4 (0.9 ) 51.0 44.0
Recurring Profit 53.4 56.4 2.9 80.0 25.0
Net Income 31.3 34.0 2.6 48.0 15.0
NTT West (JPN GAAP)
Operating Revenues 1,029.1 1,005.0 (24.1 ) 2,020.0 1,966.0
Voice Transmission Services (excluding IP) 697.3 643.3 (53.9 ) 1,245.0 1,213.0
IP Services 82.4 108.7 26.2 232.0 248.0
Leased Circuit (excluding IP) 87.4 85.0 (2.3 ) 170.0 151.0
Telegraph 14.7 14.3 (0.3 ) 30.0 28.0
Others 74.2 81.9 7.6 343.0 326.0
Related Business 72.9 71.5 (1.4 )
Operating Expenses 981.1 978.9 (2.2 ) 1,989.0 1,962.0
Personnel 97.5 90.5 (7.0 ) 181.0 182.0
Cost of services and equipment sold, and 605.9 618.8 12.9 1,270.0 1,244.0
selling, general and administrative expenses
Depreciation and amortization 214.5 210.5 (3.9 ) 417.0 408.0
Loss on disposal of property, plant and 26.2 22.6 (3.5 ) 49.0 55.0
equipment
Taxes and public dues 36.9 36.3 (0.6 ) 72.0 73.0
Operating Income 47.9 26.0 (21.9 ) 31.0 4.0
Non-Operating Revenues 26.4 26.5 0.0 50.0 51.0
Non-Operating Expenses 21.0 21.9 0.9 41.0 40.0
Recurring Profit 53.4 30.6 (22.7 ) 40.0 15.0
Net Income 31.5 19.1 (12.4 ) 25.0 9.0
------
Notes : Operating Revenues from Voice Transmission Services (excluding IP) of
NTT East and NTT West for the six months ended Sept. 30, 2005 include
Monthly Charges, Call Rates and Interconnection Rates of 406.3 billion
yen, 96.2 billion yen and 109.7 billion yen, and 395.1 billion yen,
93.5 billion yen and 108.2 billion yen, respectively.
-4-
--------------------------------------------------------------------------------
4. Financial Results and Projections (NTT Communications, NTT Data, NTT DoCoMo)
(billions of yen)
-----------------------------------------------------------------------
A B C (Ref.)
Six Six Months ended Fiscal Fiscal
Months Sept. 30, 2005 year year
ended --------------------- ending ending
Sept. Mar. 31, Mar. 31,
30 2004 2006 2006
------- --------- ----------
change (Revised (Forecast
------ Forecast) when
--------- previous
annual
results
B-A were
------ announced)
----------
NTT Communications (JPN GAAP)
Operating Revenues 525.3 547.8 22.4 1,121.0 1,081.0
Voice Transmission Services (excluding IP) 220.0 236.5 16.5 466.0 407.0
IP Services 134.0 150.0 15.9 308.0 333.0
Data Transmission Services (excluding IP) 111.4 91.5 (19.8 ) 176.0 164.0
Leased Circuit* 70.1 58.7 (11.4 ) 114.0 105.0
Solutions Business 44.5 53.8 9.3 171.0 177.0
Others 15.3 15.9 0.5
Operating Expenses 477.4 513.4 36.0 1,059.0 1,023.0
Personnel 42.9 42.7 (0.2 ) 86.0 87.0
Cost of services and equipment sold, and 231.0 243.2 12.2 829.0 785.0
selling, general and administrative
expenses
Communication Network Charges 134.6 159.1 24.4
Depreciation and amortization 59.3 58.7 (0.5 ) 120.0 125.0
Loss on disposal of property, plant and 3.3 3.1 (0.2 ) 11.0 13.0
equipment
Taxes and public dues 6.0 6.4 0.3 13.0 13.0
Operating Income 47.9 34.3 (13.5 ) 62.0 58.0
Non-Operating Revenues 13.4 16.1 2.6 28.0 24.0
Non-Operating Expenses 14.6 12.4 (2.1 ) 25.0 22.0
Recurring Profit 46.7 38.0 (8.7 ) 65.0 60.0
Net Income 27.7 2.8 (24.8 ) 13.0 34.0
(Ref.) Revenues by Principal Services
Voice Transmission Services 229.8 243.3 13.5 480.0 425.0
Data Transmission Services 168.1 175.9 7.8 355.0 373.0
Leased Circuit 70.1 58.7 (11.4 ) 114.0 105.0
Others 12.6 19.4 6.7 172.0 178.0
Related Business 44.5 50.3 5.7
NTT Data Consolidated (JPN GAAP)
Operating Revenues 381.7 389.6 7.8 880.0 880.0
Systems Integration Business 304.8 306.0 1.2 706.0 706.0
Network System Business 28.1 30.7 2.5 60.0 60.0
Others 85.1 93.0 7.9 193.0 193.0
Elimination or corporate (36.2 ) (40.2 ) (4.0 ) (79.0 ) (79.0
)
Cost of Sales 290.9 290.9 (0 ) 665.0 665.0
Gross Profit 90.8 98.6 7.8 215.0 215.0
Selling and General Expense 73.8 81.7 7.8 170.0 170.0
Operating Income 16.9 16.9 (0 ) 45.0 45.0
Non-Operating Income (loss) (3.4 ) (1.6 ) 1.8 (4.0 ) (4.0
)
Recurring Profit 13.5 15.3 1.7 41.0 41.0
Net Income 8.1 9.4 1.2 27.0 27.0
NTT DoCoMo Consolidated (US GAAP)
Operating Revenues 2,452.0 2,373.5 (78.5 ) 4,784.0 4,805.0
Wireless Services 2,163.8 2,151.0 (12.8 ) 4,262.0 4,194.0
Cellular Services 2,095.1 2,085.6 (9.6 ) 4,127.0 4,066.0
Voice 1,556.2 1,539.2 (17.1 ) 3,025.0 3,010.0
FOMA* 187.5 506.6 319.1 1,167.0 1,202.0
Packet Communications 538.9 546.4 7.5 1,102.0 1,056.0
FOMA* 96.3 258.7 162.3 608.0 594.0
PHS 31.5 23.2 (8.3 ) 41.0 41.0
Others 37.2 42.2 5.0 94.0 87.0
Equipment sales 288.1 222.5 (65.7 ) 522.0 611.0
Operating Expenses 1,906.5 1,815.1 (91.4 ) 3,954.0 3,995.0
Personnel 125.0 122.7 (2.3 ) 252.0 251.0
Cost of services and equipment sold, and 1,221.1 1,135.5 (85.6 ) 2,498.0 2,550.0
selling, general and administrative
expenses
Depreciation and amortization 340.3 339.1 (1.2 ) 753.0 740.0
Impairment loss - 0.4 0.4 - -
Loss on disposal of property, plant and 14.8 11.8 (3.0 ) 43.0 43.0
equipment
Communication Network Charges 187.6 186.9 (0.7 ) 371.0 374.0
Taxes and public dues 17.7 18.6 0.9 37.0 37.0
Operating Income 545.4 558.4 12.9 830.0 810.0
Non-Operating Income (loss) (0.3 ) 74.7 75.0 112.0 64.0
Income before Tax 545.2 633.1 87.9 942.0 874.0
Net Income 335.2 385.3 50.1 604.0 533.0
------
Note: 1 Operating Revenues of NTT Communications for the six months ended
Sept. 30, 2005 include revenues from telephone subscriber lines
(135.0 billion yen) for Voice Transmission Services (excluding
IP), revenues from OCN (69.2 billion yen), IP-VPN (34.5 billion
yen) and e-VLAN (20.6 billion yen) for IP Services, revenues from
Frame Relay / Cell Relay (11.7 billion yen) for Data
Transmission, and revenues from conventional leased circuits
(5.7 billion yen) and high-speed digital (28.7 billion yen) for
Leased Circuit.
2 For periods beginning after Mar. 31, 2005 of NTT DoCoMo,
Quickcast services revenues, which were presented separately in
the past, are included in "Others," and international services
revenues, which were previously included in "Others," are
included in "Cellular services". However, international services
revenues related to FOMA are not included in FOMA revenues for
the six months ended Sept. 30, 2004 because the necessary
information was not previously maintained. (Quickcast services
revenues are reclassified and included in "Others" for the six
months ended September 30, 2004).
* Partial listing only.
-5-
--------------------------------------------------------------------------------
5. Average monthly revenue per unit (ARPU)
Average monthly revenue per unit, or ARPU, is used to measure average monthly
operating revenues attributable to designated services on a per user basis. In
the case of our fixed line business, ARPU is calculated by dividing revenue
items in the operating revenues of our Regional Communications Services, that
is, subscriber lines services and ISDN, by the No. of active subscribers to the
relevant services. In the case of our cellular business, ARPU is calculated by
dividing revenue items included in the operating revenues from our Wireless
Services, such as revenues from Cellular (mova) services and revenues from
Cellular (FOMA) services, which are incurred consistently each month (i.e.,
monthly charges and voice/packet transmission charges), by the No. of active
subscribers to the relevant services (the calculation of these figures excludes
revenues that are not representative of monthly average usage such as equipment
sales and activation fees). We believe that our ARPU figures calculated in this
way provide useful information regarding the monthly average usage of our
subscribers. The revenue items included in the numerators of our ARPU figures
are based on our financial results comprising our U.S. GAAP results of
operations.
(yen)
-----------------------------------------------------------
Year 1st 2nd Six Year Year
Ended Quarter Quarter months Ending Ending
Mar. Ended Ended Ended Mar. 31, Mar. 31,
31, Jun. Sept. Sept. 2006 2006
2005 30, 30, 30,
2005 2005 2005 (Revised (Forecast
----- (From (From (From forecast) when
Apr. Jul. Apr. --------- previous
to to to annual
Jun., Sept., Sept., results
2005) 2005) 2005) were
------- ------- ------
announced)
----------
NTT East
Telephone Subscriber Lines ARPU 2,920 2,770 2,780 2,770 2,760 2,690
ISDN Subscriber Lines ARPU 5,510 5,550 5,540 5,540 5,530 5,260
NTT West
Telephone Subscriber Lines ARPU 2,830 2,670 2,690 2,680 2,670 2,640
ISDN Subscriber Lines ARPU 5,480 5,400 5,390 5,400 5,360 5,160
NTT DoCoMo
Cellular Aggregate ARPU (FOMA+mova) 7,200 6,940 7,050 7,000 6,850 6,770
Voice ARPU (FOMA+mova) 5,330 5,120 5,170 5,150 5,000 4,990
Packet ARPU (FOMA+mova) 1,870 1,820 1,880 1,850 1,850 1,780
i-mode ARPU (FOMA+mova)* 1,870 1,810 1,870 1,840 1,840 1,770
ARPU generated purely from i-mode (FOMA+mova) 2,060 1,990 2,050 2,020 2,010 1,930
Cellular Aggregate ARPU (FOMA) 9,650 9,090 9,050 9,070 8,660 8,550
Voice ARPU (FOMA) 6,380 5,990 5,970 5,980 5,670 5,700
Packet ARPU (FOMA) 3,270 3,100 3,080 3,090 2,990 2,850
i-mode ARPU (FOMA)* 3,220 3,070 3,050 3,060 2,960 2,820
ARPU generated purely from i-mode (FOMA) 3,260 3,110 3,100 3,100 3,010 2,870
Cellular Aggregate ARPU (mova) 6,800 6,190 6,140 6,170 5,910 5,800
Voice ARPU (mova) 5,160 4,820 4,810 4,810 4,650 4,600
i-mode ARPU (mova) 1,640 1,370 1,330 1,360 1,260 1,200
ARPU generated purely from i-mode (mova) 1,850 1,550 1,510 1,530 1,420 1,360
------
Notes : 1 We separately compute ARPU for the fixed line business conducted
by each of NTT East and NTT West using two measures.
- ARPU from telephone subscriber lines services, which is
based on operating revenues from monthly charges, call
charges and FLET'S ADSL charges attributable to our
telephone subscriber lines services.
- ARPU from ISDN, which is based on operating revenues from
monthly charges, transmission/call charges and FLET'S ISDN
charges attributable to our ISDN.
2 Interconnection revenues are excluded in ARPU of Telephone
Subscriber Lines and ISDN Subscriber Lines.
3 In terms of No. 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.
4 From the three months ended Jun. 30, 2005, calls from fixed
telephones of NTT East or West to mobile phones with a dialing
Carrier Identification Code are billed on end-to-end basis and
amounts are recorded as call rate revenues of NTT East or West.
5 We compute ARPU for our cellular business using two aggregate
measures.
- Cellular Aggregate ARPU (FOMA+mova) = Voice ARPU (FOMA+mova)
+ Packet ARPU (FOMA+mova).
- Our Voice ARPU (FOMA+mova) is based on operating revenues
related to voice services, such as monthly charges and voice
transmission charges, attributable to our third generation
FOMA and conventional mova services, and our Packet ARPU
(FOMA+mova) is based on operating revenues related to packet
communication services, such as monthly charges and packet
transmission charges, attributable to our third generation
FOMA services and based on operating revenues related to
i-mode services, such as monthly charges and packet
transmission charges, attributable to our conventional mova
services. We also separately compute i-mode ARPU
(FOMA+mova), as a subcomponent of Packet ARPU (FOMA+mova).
In particular, i-mode ARPU (FOMA+mova) is based on operating
revenues from monthly charges and packet transmission
charges attributable to our i-mode-related FOMA and mova
services.
- Cellular Aggregate ARPU (FOMA) = Voice ARPU (FOMA) + Packet
ARPU (FOMA).
- Our Voice ARPU (FOMA) is based on operating revenues related
to voice services, such as monthly charges and voice
transmission charges, and our Packet ARPU (FOMA) is based on
operating revenues related to packet communication services,
such as monthly charges and packet transmission charges, in
each case attributable to our third generation FOMA
services. We also separately compute i-mode ARPU (FOMA), as
a subcomponent of Packet ARPU (FOMA). In particular, i-mode
ARPU (FOMA) is based on operating revenues from monthly
charges and packet transmission charges attributable to our
i-mode-related FOMA services.
- Cellular Aggregate ARPU (mova) = Cellular Voice ARPU (mova)
+ i-mode ARPU (mova).
- Our Voice ARPU (mova) is based on operating revenues related
to voice services, such as monthly charges and voice
transmission charges, and our i-mode ARPU (mova) is based on
operating revenues related to i-mode services, such as
monthly charges and packet transmission charges, in each
case attributable to our conventional mova services.
6 We show ARPU for our i-mode using two aggregate measures.
- i-mode ARPU is based on the No. of all subscribers who have
active cellular phones, regardless of whether the i-mode
service is activated.
- ARPU generated purely from i-mode is based on the No. of
active subscribers to the i-mode service only.
7 International service-related revenues in cellular business,
which had not been included in previous reports, have been
included in the Cellular ARPU data calculation for the fiscal
year ending Mar. 31, 2006, due to its growing contribution to
total revenues. International service-related Cellular ARPU
included in the Cellular ARPU results for the 1st quarter ended
Jun. 30, 2005 are 30 yen for Cellular Aggregate ARPU (FOMA+mova),
60 yen for Cellular Aggregate ARPU (FOMA), and 20 yen for
Cellular Aggregate ARPU (mova); those for 2nd quarter ended Sept.
30 2005 are 40 yen for Cellular Aggregate ARPU (FOMA+mova),
70 yen for Cellular Aggregate ARPU (FOMA), and 30 yen for
Cellular Aggregate ARPU (mova); those for six months ended Sept.
30, 2005 are 40 yen for Cellular Aggregate ARPU (FOMA+mova), 60
yen for Cellular Aggregate ARPU (FOMA), and 30 yen for Cellular
Aggregate ARPU (mova); and forecasts for the fiscal year ending
Mar. 31, 2006 are 40 yen for Cellular Aggregate ARPU (FOMA+mova),
70 yen for Cellular Aggregate ARPU (FOMA), and 30 yen for
Cellular Aggregate ARPU (mova). Cellular ARPU data in previous
reports does not include International service-related revenues,
but Cellular Aggregate ARPU (FOMA+mova) generated from
International services for the relevant periods is 20 yen for the
fiscal year ended Mar. 31, 2005.
8 No. of DoPa single service subscribers, which had not been
included in previous reports, has been included in the No. of
mova subscribers from the results for the first six months of
the fiscal year ending Mar. 31, 2005 in order to standardize the
definition of subscribers used by all the mobile operators in
Japan. DoPa single service subscribers and the revenues thereof
are not included in the ARPU calculations.
9 No. of active subscribers used in ARPU calculation are as below.
- FY Results & Forecast: Sum of No. of active subscribers**
(as defined below) for each month from Apr. to Mar.
- 1Q Results: Sum of No. of active subscribers**(as defined
below) for each month from Apr. to Jun.
- 2Q Results: Sum of No. of active subscribers**(as defined
below) for each month from Jul. to Sept.
- Six Months Results: Sum of No. of active subscribers**(as
defined below) for each month from Apr. to Sept.
** active subscribers = (No. of subscribers at end of
previous month + No. of subscriber at end of current
month)/2
* Partial listing only.
-6-
--------------------------------------------------------------------------------
6. Interest-Bearing Liabilities (Consolidated)
(billions of yen)
--------------------------------------------------------------------------------
As of As of As of (Ref.)
Mar. 31, 2005 Sept. 30, 2005 Mar. 31, 2006 As of
------------------ ----------------- ------------------ Mar. 31, 2006
------------------
(Revised Forecast) (Forecast when
------------------ previous annual
results
were announced)
------------------
Interest-Bearing Liabilities 5,525.8 5,628.1 5,470.0 5,430.0
7. Indices (Consolidated)
Fiscal Year ended Six months ended Fiscal Year ending (Ref.)
Mar. 31, 2005 Sept. 30, 2005 Mar. 31, 2006 Fiscal Year ending
------------------ ----------------- ------------------ Mar. 31, 2006
------------------
(Revised Forecast) (Forecast when
------------------ previous annual
results
were announced)
------------------
Operating Income 1,211.2 billion 763.4 billion 1,160.0 billion 1,050.0 billion
yen yen yen yen
EBITDA Margin 32.8 % 35.0 % 31.7 % 30.9 %
Operating FCF 1,482.2 billion 810.2 billion 1,261.0 billion 1,219.0 billion
yen yen yen yen
ROCE 5.8 % - 5.6 % 5.0 %
---------
Note : The reconciliation of Indices are as follows.
Fiscal Year ended Six months ended Fiscal Year ending (Ref.)
Mar. 31, 2005 Sept 30, 2005 Mar. 31, 2006 Fiscal Year ending
------------------ ----------------- ------------------ Mar. 31, 2006
------------------
(Revised Forecast) (Forecast when
------------------ previous annual
results
were announced)
------------------
EBITDA Margin ((c/d)X100) 32.8 % 35.0 % 31.7 % 30.9 %
a Operating Income 1,211.2 billion 763.4 billion 1,160.0 billion 1,050.0 billion
yen yen yen yen
b Depreciation, Amortization, and 2,328.4 billion 1,066.4 billion 2,231.0 billion 2,219.0 billion
Loss on disposal of property, plant yen yen yen yen
and equipment
c EBITDA (a+b) 3,539.6 billion 1,829.8 billion 3,391.0 billion 3,269.0 billion
yen yen yen yen
d Operating Revenues 10,805.9 billion 5,231.5 billion 10,705.0 billion 10,590.0 billion
yen yen yen yen
Operating FCF ((c-d)) 1,482.2 billion 810.2 billion 1,261.0 billion 1,219.0 billion
yen yen yen yen
a Operating Income 1,211.2 billion 763.4 billion 1,160.0 billion 1,050.0 billion
yen yen yen yen
b Depreciation, Amortization, and 2,328.4 billion 1,066.4 billion 2,231.0 billion 2,219.0 billion
Loss on disposal of property, plant yen yen yen yen
and equipment
c EBITDA (a+b) 3,539.6 billion 1,829.8 billion 3,391.0 billion 3,269.0 billion
yen yen yen yen
d Capital Investment 2,057.4 billion 1,019.6 billion 2,130.0 billion 2,050.0 billion
yen yen yen yen
ROCE ((b/c)X100) 5.8 % - 5.6 % 5.0 %
a Operating Income 1,211.2 billion - 1,160.0 billion 1,050.0 billion
yen yen yen
(Normal Statutory Tax Rate) 41 % - 41 % 41 %
b Operating Income X(1-Normal 715.7 billion - 684.4 billion 619.5 billion
Statutory Tax Rate) yen yen yen
c Operating Capital Employed 12,307.0 billion - 12,217.7 billion 12,421.7 billion
yen yen yen
------
Note : Figures for consolidated capital investment is the accrual-based
amounts required for acquisition of fixed assets and intangibles. The
differences from the figures for "Payments for property, plant and
equipment" and "Acquisition of intangible and other assets" in the
consolidated statements of cash flows are as described in
reconciliation below.
(billions of yen)
----------------------------
Year Six
Ended Months
Mar. Ended
31, Sept.
2005 30,
------- 2005
(From
Apr. to
Sept.,
2005)
-------
NTT Consolidated Capital Investment 2,057.4 1,019.6
Payments for property, plant and equipment 1,611.0 909.9
Acquisition of intangible and other assets 543.7 187.5
Other differences (97.3 ) (77.8 )
-7-
This information is provided by RNS
The company news service from the London Stock Exchange
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