Nippon Telegraph and Telephone 6K Current report

Nippon Telegraph and Telephone (NTTYY) 6-KCurrent report (foreign)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM6-K

Report of Foreign Private Issuer

Pursuant to Rule13a-16 or15d-16 under the

Securities Exchange Act of 1934

For the month of February, 2018

Commission File Number1-8910

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

(Translation of registrant’s name into English)

OTEMACHI FIRST SQUARE, EAST TOWER

5-1, OTEMACHI1-CHOME

CHIYODA-KU, TOKYO100-8116 JAPAN

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form20-F or Form40-F.

Form 20-F ☒ Form40-F ☐

Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(7):

ANNOUNCEMENT OF FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2017

On February 9, 2018, the registrant filed with the Tokyo Stock Exchange information as to the registrant’s financial condition and results of operations at and for the three and nine months ended December 31, 2017. Attached hereto is a copy of the press release and supplementary data relating thereto, both dated February 9, 2018, pertaining to such financial condition and results of operations, as well as forecasts for the registrant’s operations for the fiscal year ending March 31, 2018. The consolidated financial information of the registrant and that of its subsidiary NTT DOCOMO, INC., included in the press release and the supplementary data relating thereto, were prepared on the basis of accounting principles generally accepted in the United States. Thenon-consolidated financial information of the registrant and that of each of the registrant’s three wholly-owned subsidiaries, Nippon Telegraph and Telephone East Corporation, Nippon Telegraph and Telephone West Corporation and NTT Communications Corporation, as well as the consolidated financial information of its subsidiary NTT DATA CORPORATION, included in the press release and the supplementary data relating thereto, were prepared on the basis of accounting principles generally accepted in Japan. The consolidated financial information of the registrant’s subsidiary Dimension Data Holdings plc, included in the supplementary data related to the press release, was prepared on the basis of International Financial Reporting Standards (“IFRS”). The financial information for the three and nine months ended December 31, 2017 in the press release is unaudited.

The earnings projections of the registrant and its subsidiaries included in the press release contain forward-looking statements. The registrant desires to qualify for the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995, and consequently is hereby filing cautionary statements identifying important factors that could cause the registrant’s actual results to differ materially from those set forth in the attachment.

The registrant’s forward-looking statements are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of the registrant in light of information currently available to it regarding the registrant and its subsidiaries and affiliates, the economy and the telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of the registrant and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from any future results that may be derived from the forward-looking statements, as well as other risks included in the registrant’s most recent Annual Report on Form20-F and other filings and submissions with the United States Securities and Exchange Commission.

No assurance can be given that the registrant’s actual results will not vary significantly from any expectation of future results that may be derived from the forward-looking statements included herein.

The information on any website referenced herein or in the attached material is not incorporated by reference herein or therein.

The attached material is a translation of the Japanese original. The Japanese original is authoritative.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


NIPPON TELEGRAPH AND TELEPHONE CORPORATION

By	/s/ Takashi Ameshima
	Name:	Takashi Ameshima
	Title:	Vice President
		Investor Relations Office

Date: February 9, 2018


Financial Results Release	February 9, 2018 [U.S. GAAP	]
For the Nine Months Ended December 31, 2017	February 9, 2018 [U.S. GAAP	]


Name of registrant	:	Nippon Telegraph and Telephone Corporation (“NTT”) / URL http://www.ntt.co.jp/ir/
Code No.	:	9432
Stock exchanges on which the Company’s shares are listed	:	Tokyo
Representative	:	Hiroo Unoura, President and Chief Executive Officer
Contact	:	Takashi Ameshima, Head of IR, Finance and Accounting Department / TEL+81-3-6838-5481
Scheduled filing date of quarterly securities report	:	February 13, 2018
Scheduled date of dividend payments	:	–
Supplemental material on quarterly results	:	Yes
Presentation on quarterly results	:	Yes (for institutional investors and analysts)

1.	Consolidated Financial Results for the Nine Months Ended December 31, 2017 (April 1, 2017 – December 31, 2017)

Amounts are rounded to the nearest million yen.

(1) Consolidated Results of Operations


	(Millions of yen)
	Operating Revenues				Operating Income				Income before Income Taxes				Net Income Attributable to NTT
Nine months ended December 31, 2017		8,722,036	4.3	%		1,319,553	0.1	%		1,441,310	10.3	%		736,590	10.1	%
Nine months ended December 31, 2016		8,360,497	(1.6	)%		1,318,554	17.0	%		1,307,197	16.6	%		668,728	10.7	%


	Basic Earnings per Share Attributable to NTT			Diluted Earnings per Share Attributable to NTT
Nine months ended December 31, 2017		367.98	(yen)		—	(yen)
Nine months ended December 31, 2016		325.64	(yen)		—	(yen)

(2) Consolidated Financial Position


	(Millions of yen, except per share amounts)
	Total Assets		Total Equity		NTT Shareholders’ Equity		Equity Ratio (Ratio of NTT Shareholders’ Equity to Total Assets)			NTT Shareholders’ Equity per Share
December 31, 2017		21,528,070		11,993,834		9,376,545		43.6	%		4,736.86	(yen)
March 31, 2017		21,250,325		11,507,756		9,052,479		42.6	%		4,491.73	(yen)

2.	Dividends


	Annual Dividends
	End of the first quarter		End of the second quarter			End of the third quarter		Year-end			Total
Year Ended March 31, 2017		—		60.00	(yen)		—		60.00	(yen)		120.00	(yen)
Year Ending March 31, 2018		—		75.00	(yen)		—		—			—
Year Ending March 31, 2018 (Forecasts)		—		—			—		75.00	(yen)		150.00	(yen)

Note: Change in dividend forecasts during the nine months ended December 31, 2017: None

3.	Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2018 (April 1, 2017 – March 31, 2018)


	(Millions of yen, except per share amount)
	Operating Revenues				Operating Income				Income before Income Taxes				Net Income Attributable to NTT				Basic Earnings per Share Attributable to NTT
Year Ending March 31, 2018		11,750,000	3.2	%		1,590,000	3.3	%		1,695,000	10.9	%		880,000	10.0	%		440.00	(yen)


Notes:	1.	Percentages above represent changes from the previous fiscal year.
	2.	Change in consolidated financial results forecasts for the fiscal year ending March 31, 2018 during the nine months ended December 31, 2017: None

– 1 –

*Notes:


(1)	Change in significant consolidated subsidiaries during the nine months ended December 31, 2017 that resulted in changes in the scope of consolidation: None

(2)	Adoption of accounting which is simplified or exceptional for quarterly consolidated financial statements: None

(3)	Change of accounting policy

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

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

(4)	Number of shares outstanding (common stock)

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

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

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

	ii.	Number of shares of treasury stock:

			December 31, 2017 : 116,908,131 shares

			March 31, 2017 : 81,026,959 shares

	iii.	Weighted average number of shares outstanding:

			For the nine months ended December 31, 2017 : 2,001,718,206 shares

			For the nine months ended December 31, 2016 : 2,053,571,790 shares

*	This financial results release is not subject to the quarterly review.

*	Explanation of earnings forecasts and other notes:

Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently available to NTT and certain assumptions that we regard as reasonable and therefore actual results may differ materially from those contained in or suggested by any forward-looking statements. With regard to the assumptions and other related matters concerning forecasts for the fiscal year ending March 31, 2018, please refer to page 10.

On Friday, February 9, 2018, NTT will hold a presentation on its financial results for institutional investors and analysts. Shortly thereafter, NTT plans to post on its website explanatory details, along with the materials used at the presentation.

– 2 –

1. Summary Information (notes)

(1)	Change in significant consolidated subsidiaries during the nine months ended December 31, 2017, that resulted in changes in the scope of consolidation: None

(2)	Adoption of accounting which is simplified or exceptional for quarterly consolidated financial statements: None

(3)	Change of accounting policy: Yes

Balance Sheet Classification of Deferred Taxes

On November 20, 2015, the FASB issuedASU2015-17 “Balance sheet classification of deferred taxes” which requires that all deferred tax liabilities and assets be classified as noncurrent on the balance sheet.

Effective April 1, 2017, NTT Group adopted this ASU prospectively and prior periods were not retrospectively adjusted.

Simplifying the Test for Goodwill Impairment

On January 26, 2017, the FASB issued ASU2017-04 “Simplifying the Test for Goodwill Impairment,” which replaces thetwo-step goodwill impairment test with theone-step goodwill impairment test. The amendments in this update require that an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value.

The adoption of ASU2017-04 would be permitted for goodwill impairment tests with measurement dates after January 1, 2017. NTT Group adopted this ASU for goodwill impairment test with measurement date on July 1, 2017.

Change in Fiscal Year End of Certain Subsidiaries

As of April 1, 2017, certain of NTT’s consolidated subsidiaries changed their fiscal year ends from December 31 or January 31 to March 31, thereby eliminating a three-month ortwo-month lag between their fiscal year ends and NTT’s fiscal year end in NTT’s quarterly consolidated financial statements. The elimination of this lag was applied as a change in accounting policy. NTT did not make any retrospective adjustments to its financial statements as these changes did not have a material impact on the consolidated financial statements for the nine months ended December 31, 2016 or the year ended March 31, 2017. As a result of this change, NTT’s retained earnings have increased by ¥964 million, and its accumulated other comprehensive income (loss) and noncontrolling interests have decreased by ¥3,351 million and ¥2,012 million, respectively, as of the beginning of the current fiscal year.

– 3 –

2. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets


	Millions of yen
	March 31, 2017			December 31, 2017			Increase (Decrease)
ASSETS
Current assets:
Cash and cash equivalents	¥	925,213		¥	766,581		¥	(158,632	)
Short-term investments		63,844			44,094			(19,750	)
Notes and accounts receivable, trade		2,699,708			2,849,652			149,944
Allowance for doubtful accounts		(48,626	)		(52,835	)		(4,209	)
Accounts receivable, other		505,145			658,418			153,273
Inventories		365,379			459,442			94,063
Prepaid expenses and other current assets		573,170			623,302			50,132
Deferred income taxes		228,590			—			(228,590	)

Total current assets		5,312,423			5,348,654			36,231

Property, plant and equipment:
Telecommunications equipment		11,046,115			10,991,048			(55,067	)
Telecommunications service lines		16,064,732			14,144,223			(1,920,509	)
Buildings and structures		6,147,869			6,236,623			88,754
Machinery, vessels and tools		2,032,389			2,118,915			86,526
Land		1,292,685			1,306,405			13,720
Construction in progress		421,819			475,577			53,758

		37,005,609			35,272,791			(1,732,818	)
Accumulated depreciation		(27,286,588	)		(25,565,588	)		1,721,000

Net property, plant and equipment		9,719,021			9,707,203			(11,818	)


Investments and other assets:
Investments in affiliated companies		484,596			507,216			22,620
Marketable securities and other investments		495,290			552,254			56,964
Goodwill		1,314,645			1,355,737			41,092
Software		1,209,485			1,197,194			(12,291	)
Other intangible assets		453,918			412,118			(41,800	)
Other assets		1,492,076			1,558,670			66,594
Deferred income taxes		768,871			889,024			120,153

Total investments and other assets		6,218,881			6,472,213			253,332

Total assets	¥	21,250,325		¥	21,528,070		¥	277,745

– 4 –


	Millions of yen
	March 31, 2017			December 31, 2017			Increase (Decrease)
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	227,207		¥	377,194		¥	149,987
Current portion of long-term debt		681,904			587,451			(94,453	)
Accounts payable, trade		1,612,996			1,365,246			(247,750	)
Current portion of obligations under capital leases		14,430			13,011			(1,419	)
Accrued payroll		443,308			402,755			(40,553	)
Accrued taxes on income		239,755			163,304			(76,451	)
Accrued consumption tax		75,083			99,517			24,434
Advances received		324,342			389,937			65,595
Other		512,368			516,082			3,714

Total current liabilities		4,131,393			3,914,497			(216,896	)

Long-term liabilities:
Long-term debt (excluding current portion)		3,168,478			3,154,018			(14,460	)
Obligations under capital leases (excluding current portion)		25,568			23,680			(1,888	)
Liability for employees’ retirement benefits		1,599,381			1,645,420			46,039
Accrued liabilities for point programs		103,047			102,115			(932	)
Deferred income taxes		166,751			137,675			(29,076	)
Other		497,132			504,835			7,703

Total long-term liabilities		5,560,357			5,567,743			7,386

Redeemable noncontrolling interests		50,819			51,996			1,177

Equity:
NTT shareholders’ equity
Common stock, no par value		937,950			937,950			—
Additionalpaid-in capital		2,862,035			2,841,567			(20,468	)
Retained earnings		5,626,155			6,092,304			466,149
Accumulated other comprehensive income (loss)		1,562			73,402			71,840
Treasury stock, at cost		(375,223	)		(568,678	)		(193,455	)

Total NTT shareholders’ equity		9,052,479			9,376,545			324,066

Noncontrolling interests		2,455,277			2,617,289			162,012

Total equity		11,507,756			11,993,834			486,078

Total liabilities and equity	¥	21,250,325		¥	21,528,070		¥	277,745

– 5 –

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

NINE-MONTH PERIOD ENDED DECEMBER 31

Consolidated Statements of Income


	Millions of yen
	2016			2017			Increase (Decrease)
Operating revenues:
Fixed voice related services	¥	919,161		¥	858,886		¥	(60,275	)
Mobile voice related services		651,378			706,412			55,034
IP / packet communications services		2,842,376			2,860,996			18,620
Sale of telecommunications equipment		650,100			641,991			(8,109	)
System integration		2,123,736			2,479,868			356,132
Other		1,173,746			1,173,883			137

		8,360,497			8,722,036			361,539

Operating expenses:
Cost of services (excluding items shown separately below)		1,751,417			1,700,865			(50,552	)
Cost of equipment sold (excluding items shown separately below)		654,772			675,388			20,616
Cost of system integration (excluding items shown separately below)		1,496,570			1,774,817			278,247
Depreciation and amortization		1,082,890			995,564			(87,326	)
Impairment losses
Goodwill		53,294			18,864			(34,430	)
Metal cables		—			124,800			124,800
Other		12,698			744			(11,954	)
Selling, general and administrative expenses		1,990,302			2,111,441			121,139

		7,041,943			7,402,483			360,540

Operating income		1,318,554			1,319,553			999

Other income (expenses):
Interest and amortization of bond discounts and issue costs		(28,168	)		(25,276	)		2,892
Interest income		13,176			14,093			917
Income from arbitration award		—			147,646			147,646
Other, net		3,635			(14,706	)		(18,341	)

		(11,357	)		121,757			133,114

Income before income taxes and equity in earnings (losses) of affiliated companies		1,307,197			1,441,310			134,113

Income tax expense (benefit):
Current		369,479			421,822			52,343
Deferred		55,362			35,763			(19,599	)

		424,841			457,585			32,744

Income before equity in earnings (losses) of affiliated companies		882,356			983,725			101,369

Equity in earnings (losses) of affiliated companies		14,247			12,050			(2,197	)

Net income		896,603			995,775			99,172

Less – Net income attributable to noncontrolling interests		227,875			259,185			31,310

Net income attributable to NTT	¥	668,728		¥	736,590		¥	67,862


Per share of common stock:
Weighted average number of shares outstanding (Shares)		2,053,571,790			2,001,718,206
Net income attributable to NTT (Yen)	¥	325.64		¥	367.98

– 6 –

Consolidated Statements of Comprehensive Income


	Millions of yen
	2016			2017		Increase (Decrease)
Net income	¥	896,603		¥	995,775	¥	99,172
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities		1,117			42,466		41,349
Unrealized gain (loss) on derivative instruments		(2,415	)		737		3,152
Foreign currency translation adjustments		(97,527	)		61,778		159,305
Pension liability adjustments		8,173			5,670		(2,503	)

Total other comprehensive income (loss)		(90,652	)		110,651		201,303

Total comprehensive income (loss)		805,951			1,106,426		300,475

Less – Comprehensive income attributable to noncontrolling interests		217,645			294,645		77,000

Total comprehensive income (loss) attributable to NTT	¥	588,306		¥	811,781	¥	223,475

– 7 –

(3) Going Concern Assumption

None

(4) NTT Shareholders’ Equity

1. Dividends

Cash dividends paid during the nine months ended December 31, 2017 were as follows:


Resolution		The shareholders’ meeting held on June 27, 2017
Class of shares		Common stock
Source of dividends		Retained earnings
Total cash dividends paid		¥120,922 million
Cash dividends per share		¥60
Record date		March 31, 2017
Date of payment		June 28, 2017


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

2. Treasury stock

On December 12, 2016, the Board of Directors resolved that NTT may acquire up to 33 million shares of its outstanding common stock for an amount in total not exceeding ¥150 billion from December 13, 2016 through June 30, 2017. Based on this resolution, NTT repurchased 21,693,800 shares of its common stock for a total purchase price of ¥106,763 million between December 2016 and March 2017. NTT also repurchased 8,893,400 shares of its common stock for a total purchase price of ¥43,235 million in April 2017 and concluded the repurchase of its common stock authorized by Board of Directors’ resolution.

On September 25, 2017, the Board of Directors resolved that NTT may acquire up to 30 million shares of its outstanding common stock for an amount in total not exceeding ¥150 billion from September 26, 2017 through March 31, 2018. NTT repurchased 26,946,400 shares of its common stock for a total purchase price of ¥150,000 million between October 2017 and December 2017, and concluded the repurchase of its common stock authorized by Board of Directors’ resolution.

– 8 –

(5) Subsequent Events

NTT DOCOMO’s repurchase of its common stock

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

On December 11, 2017, the Board of Directors of NTT DOCOMO resolved that NTT DOCOMO may acquire up to 93,248,787 shares of its outstanding common stock by way of tender offer at an amount in total not exceeding ¥250,000 million from December 12, 2017 through January 15, 2018. Based on this resolution, NTT DOCOMO repurchased 75,678,037 shares of its common stock at ¥202,893 million on February 6, 2018, 74,599,000 shares of which NTT sold back to NTT DOCOMO at ¥200,000 million. Due to NTT DOCOMO’s repurchase transactions, NTT’s ownership interest in NTT DOCOMO decreased from 66.7% to 66.0%. NTT expects to recognize the difference between the consideration paid to thenon-controlling interest holders and the decrease in the carrying value of suchnon-controlling interests resulting from this transaction as an adjustment to “Additionalpaid-in capital” in the consolidated balance sheet as of March 31, 2018.

The Board of Directors of NTT DOCOMO also resolved that NTT DOCOMO may acquire up to 44,321,963 shares of its outstanding common stock^*by way of repurchases on Tokyo Stock Exchange for an amount in total not exceeding ¥97,107 million^*from the next business day following the expiration of the tender offer through March 31, 2018. NTT DOCOMO did not make repurchase by way of repurchases on the market in January 2018.

The number of shares remaining after subtracting the number of shares acquired by way of tender offer from the maximum limit of 120 million shares and the amount remaining after subtracting the total amount used to repurchase the shares acquired by way of tender offer from the maximum limit of ¥300,000 million.

– 9 –

[Note]

The forward-looking statements and projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein, as well as other risks included in NTT’s most recent Annual Report on Form20-F and other filings and submissions with the United States Securities and Exchange Commission.

– 10 –

Financial Results for the Nine Months Ended December 31, 2017 February 9, 2018

Table of Contents
Highlights
Contributing Factors by Segment Topics (Reference) Major B2B2X Initiatives (Reference) NTT R&D Forum 2018 (Reference) Mobile World Congress 2018 – A Group Exhibition On Display Appendix
Financial Results for the Nine Months Ended December 31, 2017 2 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Highlights
Both Operating Revenues and Operating Income increased.
Financial results are steadily progressing in line with the annual plan.
Status of Consolidated Financial Results
Operating Revenues Ą8,722.0 billion (increase of Ą361.5 billion [4.3%]year-on-year)
Operating Income Ą1,319.6 billion (increase of    Ą1.0 billion [0.1%]year-on-year)    Net Income *1 Ą736.6 billion (increase of Ą67.9 billion [10.1%]year-on-year)
Overseas Sales $14.45 billion (increase of    $2.26 billion [18.6%]year-on-year)
$0.66 billion
Overseas Operating Income *2     $0.78 billion (increase of    $0.24 billion [43.5%]year-on-year)
*1 Net income represents net income attributable to NTT, excluding noncontrolling interests.
*2 Operating Income excludes temporary expenses, such asM&A-related depreciation costs of intangible fixed assets.
Financial Results for the Nine Months Ended December 31, 2017 3 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Contributing Factors by Segment
Increase in Operating Revenues and Operating Income in the Long Distance and International Communications business and the Data Communications business segment.
Operating Revenues(Year-on-year: +361.5) (Billions of yen)
Mobile 66.8 Long distance and communications 296.2 Other Regional international business business * 8,722.0 communications communications business business 126.4 Data 55.6 61.3 communications 8,360.5 business
FY20174-12
2,379.3 1,631.9 3,595.7 1,460.8
FY20164-12 FY20174-12
Operating Income(Year-on-year: +1.0)
Regional Long distance and
Mobile Data communications international Other communications communications business communications business * business business business
5.7 22.1 1.5 74.8 58.0
1,318.6 1,319.6
FY20174-12
255.7 76.6 833.6 89.1
FY20164-12 FY20174-12 *Includes adjustments such as elimination
Financial Results for the Nine Months Ended December 31, 2017 4 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Topics
Increased Profitability of Network Services
Expansion of NTT’s User Base
• Mobile Subscriptions: 75.68 million mobile subscriptions (net increase of 0.80 million)
(Included in the above) Kake-hodai & Pake-aeru: 40.60 million subscriptions (net increase of 3.53 million)
• FTTH Subscriptions: 20.46 million subscribers (net increase of 0.40 million)
(Included in the above) Hikari Collaboration: 10.66 million (net increase of 1.91 million)
Growing number ofWi-Fi area owners*: 681 (net increase of 124)
* Total number of large-scale corporate or local government customers. Excludes small-scale restaurants, etc.
Financial Results for the Nine Months Ended December 31, 2017 5 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Topics
Promotion of the B2B2X Model
Continued to expand collaboration efforts with corporations and local governments by supporting their digital transformation in various fields, such as sports, transportation and manufacturing in an effort towards creating new value and solving social issues and challenges
Expansion of Global Cloud Services
Acquisition ofSecure-24, a provider of managed services in the U.S.
Shareholder returns
Completed share buybacks on December 8, 2017: Ą150.0 billion Aggregate amount of FY2017 share buybacks: Ą193.2 billion
Progress of
“Tokyo 2020 Medal Project: Towards an Innovative Future for All”
Number of used mobile phones and other devices collected (as of the end of December 2017): approximately 2.40 million devices
Financial Results for the Nine Months Ended December 31, 2017 6 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

(Reference) Major B2B2X Initiatives in FY2017 3Q
Demonstrated a pleasant flight experience by monitoring babies’
Aviation
Oct. conditions through the utilization of hitoe®
(Established “Airplane without crying babies!?” project)
Manu- Began the commercial provision of the FIELD system
facturing Oct.
through the utilization of edge computing
Contributed to the further development of Sapporo by Auto Oct. carrying out automated driving on public roads in central city areas
Agri- Demonstrated power-saving efforts in agriculture and water
culture Oct.
environments through the utilization of corevo®
Enter- Produced a new Kabuki experience through the utilization of Kirari! by enabling two tainment Nov. actors to perform together through virtual reality (connected Ponto-cho andMiyakawa-cho in the performance of “Miyako MusubiYume-no Renjishi”)
Sports Initiated collaborative experiments on athletes’ performance Nov. and brain information processing
Tourism Began demonstrations that predict the flow of people through the utilization of AI Nov. and control air conditioning using optimal device control technology
KOBE CHIKAGAI
Financial Results for the Nine Months Ended December 31, 2017 7 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

(Reference) NTT R&D Forum 2018
â– “NTT R&D Forum” (on an invitation basis only) Date and Time Thursday, February 22, 2018 and    Friday, February 23, 2018    10:00 – 17:00 Place NTT Musashino R&D Center    Tokyo, Japan
Exhibits
Introduce the latest research findings, including    research efforts on the B2B2X model, in    each of the categories of Media & UI, corevo, IoT,    Network and Security, and Basic Research
(e.g.) ãƒ»New value creation utilizing corevo (AI)    ãƒ»IoT utilizing edge computing    ãƒ»Immersive Telepresence Technology—Kirari!                (enabling ultra-high presence experiences)
Financial Results for the Nine Months Ended December 31, 2017 8 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

(Reference) Mobile World Congress 2018
– A Group Exhibition On Display
â– Display leading and advanced B2B2X business models utilizing AI, IoT and 5G
Through the
â– exhibition, NTT aims to introduce new value created in collaboration                with a wide range of partners in various business sectors
MWC 2018 Overview
Business Meeting Duration
Area    Monday, February 26, 2018
– Thursday, March 1, 2018    (four days) Venue
B2B2X and 5G
Area    Barcelona, Spain
Number    of companies holding    exhibitions*    2,300
*Based on 2017 data
The exhibition area will be displayed in 5 zones
(1) Sport & Culture    (4) Agriculture    (2) Mobility & Logistics    (5) Life & Environment    (3) Manufacturing
Financial Results for the Nine Months Ended December 31, 2017 9 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Appendix

Progress of Broadband Services

Number of Subscribers for Fixed Broadband Services
FLET’S ADSL
Number of Subscribers *1 *2 (Thousands) FLET’S Hikari (including Hikari Collaboration Model)
22,000 Hikari Denwa 21,644 21,175 21,235 21,276 20,858 20,972 20,540 20,691 791
919 881 849 819
955 20,853 20,000 1,019 987 20,457 20,386 [11,894] 20,294 [10,145] [10,655]
19,903 20,053
19,704 [9,574] 19,520 [7,854] [8,744] [5,912] [6,917]
18,000
17,984 18,039 17,924 17,759 17,862 16,000 17,545 17,655 17,451
14,000
~
2016.6 2016.9 2016.12 2017.3 2017.6 2017.9 2017.12 2018.3E
Changes from the Preceding Quarter (Thousands)
FY2016 FY2017
FY2016 FY2017E4-67-910-121-34-67-910-124-12 FLET’S Hikari *1 261 183 199 150 241 92 72 404 794 800 Opened connections *3 786 649 672 750 851 627 625 2,103 2,857 2,900 FLET’S ADSL (34) (32) (32) (36) (38) (32) (31) (100) (134) (128) Hikari Denwa *4 *5 77 93 111 104 104 62 59 225 385 280
*1 Number of FLET’S Hikari (including Hikari Collaboration Model) subscribers includes B FLET’S, FLET’S Hikari Next, FLET’S Hikari Light, FLET’S Hikari Lightplus, and FLET’S Hikari WiFi Access provided by NTT East, B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown, FLET’S Hikari Next, FLET’S Hikari Mytown Next, FLET’S Hikari Light and FLET’S Hikari WiFi Access provided by NTT West, and wholesale services (Hikari Collaboration Model) provided by both NTT East and NTT West.
*2 Figures in [ ] represent the number of subscribers to “Hikari Collaboration Model,” the wholesale provision of services by NTT East and NTT West to service providers.
*3 Number of opened connections excludes openings as a result of relocations.
*4 Numbers for Hikari Denwa include wholesale services provided to service providers by NTT East and NTT West.
*5 Numbers of Hikari Denwa subscribers are presented in thousands of channels.
Financial Results for the Nine Months Ended December 31, 2017 10 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Number of Subscribers for Mobile Broadband Services
Number of Subscribers * (Thousands) LTEXi
80,000 FOMA
74,880 75,114 75,361 75,678 76,200 72,943 73,588 71,614
60,000
39,893 41,281 42,671 44,544 45,659 46,908 48,200
50,000
40,000
20,000
31,721 31,662 30,917 30,336 29,455 28,453
27,478 26,200
0
2016.6 2016.9 2016.12 2017.3 2017.6 2017.9 2017.12 2018.3E
Changes from the Preceding Quarter (Thousands)
FY2016 FY2017
FY2016 FY2017E4-67-910-121-34-67-910-124-12 LTE(Xi)+FOMA 650 1,330 645 1,292 234 247 317 799 3,916 1,300
* Number of subscribers for Mobile Broadband Services includes Communications Module Service subscribers
Financial Results for the Nine Months Ended December 31, 2017 11 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Number of Subscribers for Video Services
Number of Subscribers (Thousands) FLET’S TV Transmission Services * Hikari TV
5,000
4,505 4,521 4,544 4,571 4,588 4,607 4,632 4,492
4,000
1,445 1,464 1,489 1,521 1,551 1,570 1,592 1,602
3,000
2,000
3,047 3,041 3,032 3,023 3,021 3,018 3,015 3,030 1,000
0
2016.6 2016.9 2016.12 2017.3 2017.6 2017.9 2017.12 2018.3E
* Number of subscribers to FLET’S TV Transmission Services includes wholesale services provided to service providers by NTT East and NTT West.
Financial Results for the Nine Months Ended December 31, 2017 12 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Financial Information

Details of Consolidated Statement of Income
Operating Revenues(Year-on-year: +361.5) SI revenues and sale (Billions of yen) of telecommunications Other revenues equipment
0.1
IP/packet 348.0 Voice related communications services revenues services revenues 8,722.0
5.2 18.6
Systems Integration: +356.1 8,360.5 Fixed voice: (60.3) Telecommunications Mobile voice: +55.0 equipment: (8.1)
FY20164-12 FY20174-12
Operating Expenses(Year-on-year: +360.5)
90.1 75.6
249.3 Depreciation
Personnel expenses Other expenses expenses and loss on disposal of assets
125.7 Expenses of goods and for purchase services 7,402.5 and other expenses
7,041.9
FY20164-12 FY20174-12
Financial Results for the Nine Months Ended December 31, 2017 13 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Details of Consolidated Balance Sheet
(Billions of yen)
21,528.1 [+277.7] 21,250.3
Liabilities Liabilities
9,691.8 9,482.2
[(209.5)]
Assets Assets
21,528.1 Other
21,250.3 52.0 [+1.2]
Other [+277.7]
50.8
Equity Equity
11,507.8 11,993.8
[+486.1]
Retained earnings Retained earnings 6,092.3
5,626.2 [+466.1]
Treasury Stock Treasury Stock (568.7) (375.2)
[(193.5)]
March 31, 2017 December 31, 2017
Financial Results for the Nine Months Ended December 31, 2017 14 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Details of Consolidated Cash Flows
Billions of yen
Cash flows from operating Cash flows from activities investing activities FCF Cash flows from (A) (B) (A) + (B) financing activities
2,040.8 *Effect ofnon-business day
1,966.8
2,000
(249.6) (251.1)
+297.0 +223.0
Acquisitions of subsidiaries 1,000 including Dell Services (FY2016)
[+299.4] 632.9 335.9 (249.6)
0 (251.1)
+74.0
(492.9) (539.4)
Increase in (1,000) Net Income
[+99.2] (46.5) Decrease in borrowings
(1,407.9) [(40.9)] (1,630.9)
(2,000)
Increase/Decrease period of the previous from fiscal the year same
FY2016 FY20174-124-12
* The effect of the last day of the nine-month period ended December 31, 2016 and 2017 having been anon-business day, resulting in the increase in accounts receivable because of the due date of a portion of accounts receivable being, instead of the last day of the period, the first business day of the following month.
Including the effect above, Cash flows from operating activities were 1,715.8 billion yen for the nine-month period ended December 31, 2016 and 1,791.2 billion yen for the nine-month period ended December 31, 2017, and the FCF amounts were 84.9 billion yen and 383.3 billion yen, respectively.
Financial Results for the Nine Months Ended December 31, 2017 15 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Details of Capital Investment
Billions of yen
Capital Investment
1,700.0 1,700.0 1,687.2 Other
NTT DATA (Consolidated) NTT Communications NTT West
1,139.9 NTT East
1,092.3 NTT DOCOMO (Consolidated)
1,039.4
199.7 175.3 153.1
88.1 105.6 143.9
83.6 91.5 61.0 164.8 161.6 189.9 155.7 170.1 162.2
362.5 399.4 403.6
FY20154-12 FY20164-12 FY20174-12 FY2015 FY2016 FY2017 E
Financial Results for the Nine Months Ended December 31, 2017 16o Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

Shareholder Returns
Share Buybacks (Billions of yen)
539.4
406.5
366.5 381.7 374.1 338.1 200.0 193.2 120.0 150.0
86.2 100.0 94.4 93.6
FY1999 FY2002 FY2003 FY2004 FY2005 FY2007 FY2008 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017E
Dividends per (Yen)
Share •Pay-out ratio
150
Note: Dividends have been adjusted to reflect thetwo-for-one stock split carried out on July 1, 2015
120 110
85 90 80 70
55 60 60
40 45 38.2% 38.0%
37.2% 34.1%
25 30 30 32.3% 31.2% 33.4% 31.4% 30.7%
23.0% 27.5%
12.3% 13.0% 19.5%
17.1%
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017E
Financial Results for the Nine Months Ended December 31, 2017 17 Copyright (c) 2018 Nippon Telegraph and Telephone Corporation

February 9, 2018

FOR IMMEDIATE RELEASE

Financial Statements for the Nine Months Ended December 31, 2017

The financial results of Nippon Telegraph and Telephone East Corporation (NTT East) for the nine months ended December 31, 2017 are presented in the following attachments.

(Attachments)

1.	Non-Consolidated Comparative Balance Sheets

2.	Non-Consolidated Comparative Statements of Income

3.	Business Results(Non-Consolidated Operating Revenues)

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

For inquiries, please contact:

Mr. Kenkichi Nakata or Mr. Ryou Yamamoto

Accounting Section, Finance Division

Nippon Telegraph and Telephone East Corporation

Tel:+81-3-5359-3331

E-mail:kessan_info-ml@east.ntt.co.jp

1.Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2017			December 31, 2017			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		339,631			334,501			(5,129	)
Antenna facilities		3,604			3,503			(100	)
Terminal equipment		22,947			21,033			(1,913	)
Local line facilities		866,722			817,264			(49,457	)
Long-distance line facilities		2,843			2,758			(84	)
Engineering facilities		588,683			579,727			(8,956	)
Submarine line facilities		732			621			(110	)
Buildings		409,835			403,395			(6,439	)
Construction in progress		19,988			18,536			(1,452	)
Other		266,121			262,811			(3,309	)
Total property, plant and equipment		2,521,110			2,444,156			(76,953	)
Intangible fixed assets		84,120			82,537			(1,582	)
Total fixed assets - telecommunications businesses		2,605,230			2,526,693			(78,536	)
Investments and other assets
Other investments and assets		199,112			215,999			16,887
Allowance for doubtful accounts		(773	)		(760	)		13
Total investments and other assets		198,338			215,239			16,900
Total fixed assets		2,803,569			2,741,933			(61,635	)
Current assets:
Cash and bank deposits		5,605			6,965			1,360
Notes receivable		—			39			39
Accounts receivable, trade		230,736			238,696			7,959
Supplies		26,005			23,017			(2,987	)
Other current assets		435,502			294,391			(141,111	)
Allowance for doubtful accounts		(327	)		(305	)		22
Total current assets		697,521			562,803			(134,718	)

TOTAL ASSETS		3,501,091			3,304,737			(196,353	)

– 1 –


	(Millions of yen)
	March 31, 2017		December 31, 2017		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		225,220		225,220		—
Liability for employees’ retirement benefits		247,366		257,571		10,204
Reserve for point services		4,145		4,435		290
Reserve for unused telephone cards		8,460		8,211		(248	)
Allowance for environmental measures		3,637		3,637		—
Asset retirement obligations		902		904		1
Other long-term liabilities		36,166		43,263		7,097
Total long-term liabilities		525,898		543,244		17,345
Current liabilities:
Current portion of long-term borrowings from parent company		140,615		50,400		(90,215	)
Accounts payable, trade		89,029		40,565		(48,464	)
Accrued taxes on income		14,186		6,455		(7,731	)
Allowance for environmental measures		2,285		269		(2,016	)
Asset retirement obligations		1		—		(1	)
Other current liabilities		442,617		411,573		(31,044	)
Total current liabilities		688,735		509,262		(179,472	)

TOTAL LIABILITIES		1,214,633		1,052,507		(162,126	)

NET ASSETS
Shareholders’ equity:
Common stock		335,000		335,000		—
Capital surplus		1,499,726		1,499,726		—
Earned surplus		447,459		412,703		(34,755	)
Total shareholders’ equity		2,282,186		2,247,430		(34,755	)
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		4,271		4,799		528
Total unrealized gains (losses), translation adjustments, and others		4,271		4,799		528

TOTAL NET ASSETS		2,286,457		2,252,230		(34,227	)

TOTAL LIABILITIES AND NET ASSETS		3,501,091		3,304,737		(196,353	)

Note:

*NTT East participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

– 2 –

2.Non-Consolidated Comparative Statements of Income

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2016		Nine months ended December 31, 2017		Increase (Decrease)			Year ended March 31, 2017
Telecommunications businesses:
Operating revenues		1,149,281		1,133,897		(15,383	)		1,534,745
Operating expenses		989,295		936,138		(53,156	)		1,367,603
Operating income from telecommunications businesses		159,985		197,759		37,773			167,142
Supplementary businesses:
Operating revenues		87,407		86,705		(701	)		137,497
Operating expenses		73,617		72,228		(1,389	)		115,534
Operating income from supplementary businesses		13,790		14,477		687			21,962
Operating income		173,775		212,236		38,460			189,104
Non-operating revenues:
Interest income		20		10		(10	)		26
Dividends received		3,222		6,954		3,731			3,226
Gains on sales of fixed assets		14,403		3,002		(11,401	)		14,363
Miscellaneous income		1,816		1,941		124			2,647
Totalnon-operating revenues		19,464		11,908		(7,555	)		20,263
Non-operating expenses:
Interest expenses		3,547		2,682		(864	)		4,669
Miscellaneous expenses		199		78		(121	)		260
Totalnon-operating expenses		3,747		2,761		(986	)		4,930
Recurring profit		189,492		221,384		31,891			204,438
Special losses		—		60,909		60,909			—
Income before income taxes		189,492		160,474		(29,018	)		204,438
Income taxes		52,947		45,571		(7,375	)		54,774
Net income		136,545		114,902		(21,643	)		149,663

Note:

* NTT East participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

– 3 –

3. Business Results(Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2016		Nine months ended December 31, 2017		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2017
Voice transmission services revenues (excluding IP services revenues)		300,683		279,328		(21,355	)		(7.1	)		396,519
Monthly charge revenues*		226,876		211,616		(15,259	)		(6.7	)		299,992
Call rates revenues*		20,181		17,535		(2,646	)		(13.1	)		26,272
Interconnection call revenues*		34,911		32,561		(2,350	)		(6.7	)		45,606
IP services revenues		637,542		641,058		3,515			0.6			850,388
Leased circuit services revenues (excluding IP services revenues)		70,680		69,547		(1,132	)		(1.6	)		93,307
Telegram services revenues		8,411		7,892		(518	)		(6.2	)		11,422
Other telecommunications services revenues		131,962		136,069		4,107			3.1			183,107

Telecommunications total revenues		1,149,281		1,133,897		(15,383	)		(1.3	)		1,534,745

Supplementary business total revenues		87,407		86,705		(701	)		(0.8	)		137,497

Total operating revenues		1,236,688		1,220,603		(16,085	)		(1.3	)		1,672,243

*	Partial listing only

– 4 –

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

Based on its recent business performance, NTT East has revised its financial results forecasts that were announced in the financial results release filed on November 10, 2017 for the fiscal year ending March 31, 2018, as follows.


	(Billions of yen)
	Year Ending March 31, 2018 (Forecasts Previously Announced on November 10, 2017)		Year Ending March 31, 2018 (Revised Forecasts)			Change
Operating Revenues		1,640.0		1,640.0			—
Operating Income		190.0		251.0			61.0
Recurring Profit		195.0		256.0			61.0
Special Profits (Losses)		—		(61.0	)		(61.0	)
Net Income		135.0		135.0			—

Note:

The financial results forecasts and projected figures concerning the future performance of NTT East contained herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT East and its parent NTT in light of information currently available to them regarding NTT, NTT East and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT, NTT East and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained herein, as well as other risks included in NTT’s most recent Annual Report on Form20-F and other filings and submissions with the United States Securities and Exchange Commission.

– 5 –

February 9, 2018

FOR IMMEDIATE RELEASE

Financial Results for the Nine Months Ended December 31, 2017

The financial results of Nippon Telegraph and Telephone West Corporation (NTT West) for the nine months ended December 31, 2017 are presented in the following attachments.

(Attachments)

1.	Non-Consolidated Comparative Balance Sheets

2.	Non-Consolidated Comparative Statements of Income

3.	Business Results (Non-Consolidated Operating Revenues)

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

For inquiries, please contact:

Junichiro Maekawa or Kenichi Matsuno

Accounting Section, Finance Division

Nippon Telegraph and Telephone West Corporation

Tel:+81-6-4793-3141

E-mail: kessan-info@west.ntt.co.jp

1.Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2017			December 31, 2017			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		297,757			291,301			(6,455	)
Antenna facilities		5,895			5,897			1
Terminal equipment		11,318			11,388			69
Local line facilities		1,051,300			1,016,371			(34,929	)
Long-distance line facilities		1,693			1,741			47
Engineering facilities		517,724			505,218			(12,506	)
Submarine line facilities		3,131			3,473			341
Buildings		312,924			312,175			(748	)
Construction in progress		31,294			18,411			(12,882	)
Other		219,918			218,987			(931	)
Total property, plant and equipment		2,452,960			2,384,966			(67,993	)
Intangible fixed assets		64,444			60,605			(3,839	)
Total fixed assets - telecommunications businesses		2,517,404			2,445,572			(71,832	)
Investments and other assets
Other investments and assets		187,606			205,330			17,723
Allowance for doubtful accounts		(681	)		(606	)		75
Total investments and other assets		186,924			204,723			17,799
Total fixed assets		2,704,329			2,650,296			(54,033	)
Current assets:
Cash and bank deposits		18,251			5,338			(12,913	)
Notes receivable		—			1			1
Accounts receivable, trade		199,820			197,935			(1,885	)
Supplies		29,950			27,045			(2,904	)
Other current assets		151,715			110,512			(41,203	)
Allowance for doubtful accounts		(339	)		(273	)		66
Total current assets		399,398			340,559			(58,839	)

TOTAL ASSETS		3,103,728			2,990,856			(112,872	)

– 1 –


	(Millions of yen)
	March 31, 2017		December 31, 2017		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		591,000		601,000		10,000
Liability for employees’ retirement benefits		242,251		250,951		8,699
Reserve for point services		3,792		3,006		(786	)
Reserve for unused telephone cards		8,000		7,765		(234	)
Allowance for environmental measures		9,074		8,424		(650	)
Asset retirement obligations		228		89		(139	)
Other long-term liabilities		4,749		99,290		94,540
Total long-term liabilities		859,097		970,526		111,429
Current liabilities:
Current portion of long-term borrowings from parent company		110,707		40,400		(70,307	)
Accounts payable, trade		71,635		34,223		(37,411	)
Short-term borrowings		105,259		126,884		21,624
Accrued taxes on income		8,731	*	4,450		(4,281	)
Allowance for loss on disaster		4,096		3,845		(251	)
Allowance for environmental measures		2,361		1,039		(1,321	)
Asset retirement obligations		133		287		154
Other current liabilities		362,351		210,352		(151,998	)
Total current liabilities		665,277		421,483		(243,794	)

TOTAL LIABILITIES		1,524,374		1,392,010		(132,364	)

NET ASSETS
Shareholders’ equity:
Common stock		312,000		312,000		—
Capital surplus		1,170,054		1,170,054		—
Earned surplus		96,911		116,238		19,327
Total shareholders’ equity		1,578,965		1,598,292		19,327
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		388		553		164
Total unrealized gains (losses), translation adjustments, and others		388		553		164

TOTAL NET ASSETS		1,579,353		1,598,845		19,492

TOTAL LIABILITIES AND NET ASSETS		3,103,728		2,990,856		(112,872	)

Note:

*NTT West participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

– 2 –

2.Non-Consolidated Comparative Statements of Income

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2016		Nine months ended December 31, 2017		Increase (Decrease)			Year ended March 31, 2017
Telecommunications businesses:
Operating revenues		993,893		958,461		(35,431	)		1,325,585
Operating expenses		904,627		832,434		(72,193	)		1,242,485
Operating income from telecommunications businesses		89,265		126,027		36,761			83,099
Supplementary businesses:
Operating revenues		99,331		99,761		429			153,430
Operating expenses		91,339		89,147		(2,191	)		141,343
Operating income from supplementary businesses		7,992		10,613		2,621			12,086
Operating income		97,257		136,640		39,383			95,186

Non-operating revenues:
Interest income		9		9		(0	)		12
Dividends received		613		839		225			615
Miscellaneous income		1,628		1,322		(306	)		2,330
Totalnon-operating revenues		2,252		2,171		(80	)		2,957

Non-operating expenses:
Interest expenses		5,477		4,499		(978	)		7,114
Miscellaneous expenses		132		333		201			2,875
Totalnon-operating expenses		5,609		4,832		(776	)		9,989
Recurring profit		93,900		133,979		40,079			88,154
Special losses		6,055		63,890		57,835			6,915
Income before income taxes		87,844		70,088		(17,755	)		81,239
Income taxes	*	24,201	*	19,561		(4,640	)		21,469
Net income		63,643		50,527		(13,115	)		59,770

Note:

* NTT West participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

– 3 –

3. Business Results(Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2016		Nine months ended December 31, 2017		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2017
Voice transmission services revenues (excluding IP services revenues)		300,613		277,515		(23,097	)		(7.7	)		396,272
Monthly charge revenues*		225,645		209,958		(15,686	)		(7.0	)		298,340
Call rates revenues*		18,877		16,434		(2,442	)		(12.9	)		24,590
Interconnection call revenues*		38,044		34,681		(3,362	)		(8.8	)		49,676
IP services revenues		523,275		517,220		(6,055	)		(1.2	)		697,252
Leased circuit services revenues (excluding IP services revenues)		65,194		65,363		169			0.3			86,362
Telegram services revenues		9,362		8,569		(792	)		(8.5	)		12,625
Other telecommunications services revenues		95,447		89,791		(5,655	)		(5.9	)		133,071

Telecommunications total revenues		993,893		958,461		(35,431	)		(3.6	)		1,325,585

Supplementary business total revenues		99,331		99,761		429			0.4			153,430

Total operating revenues		1,093,224		1,058,223		(35,001	)		(3.2	)		1,479,015

*	Partial listing only

– 4 –

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

Based on its recent business performance, NTT West has revised its financial results forecasts that were announced in the financial results release filed on November 10, 2017 for the fiscal year ending March 31, 2018, as follows.


	(Billions of yen)
	Year Ending March 31, 2018 (Forecasts Previously Announced on November 10, 2017)		Year Ending March 31, 2018 (Revised Forecasts)			Change
Operating Revenues		1,436		1,436			—
Operating Income		100		164			64
Recurring Profit		95		159			64
Special Profits (Losses)		—		(64	)		(64	)
Net Income		70		70			—

Note:

The financial results forecasts and projected figures concerning the future performance of NTT West contained herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT West and its parent NTT in light of information currently available to them regarding NTT, NTT West and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT, NTT West and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained herein, as well as other risks included in NTT’s most recent Annual Report on Form20-F and other filings and submissions with the United States Securities and Exchange Commission.

– 5 –

February 9, 2018

FOR IMMEDIATE RELEASE

NTT Com Announces Financial Results for the Nine Months Ended December 31, 2017

TOKYO, JAPAN — NTT Communications Corporation (NTT Com) announced today its financial results for the nine months ended December 31, 2017. Please see the following attachments for further details:

I.	Financial Results of NTT Communications Group

II.	Non-Consolidated Comparative Balance Sheets

III.	Non-Consolidated Comparative Statements of Income

IV.	Business Results(Non-Consolidated Operating Revenues)

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

# # #

About NTT Communications Corporation

NTT Communications provides consultancy, architecture, security and cloud services to optimize the information and communications technology (ICT) environments of enterprises. These offerings are backed by the company’s worldwide infrastructure, including a leading globaltier-1 IP network, the Arcstar Universal One™ VPN network, reaching over 190 countries/regions, and over 140 secure data centers worldwide. NTT Communications’ solutions leverage the global resources of NTT Group companies, including Dimension Data, NTT DOCOMO and NTT DATA.

www.ntt.com | Twitter@NTT Communications | Facebook@NTT Communications | LinkedIn@NTT

For more information

(Mr.) Akira Ito or (Mr.) Shinichi Shimizu

Accounting and Taxation, Finance, NTT Communications

Tel: +81 3 6700 4311

Email: info-af@ntt.com

I. Financial Results of NTT Communications Group


	(Millions of yen)
	Nine months ended Dec 31, 2016		Nine months ended Dec 31, 2017		Increase (Decrease)			Percent Increase (Decrease)
Operating revenues		937,331		968,629		31,298			3.3
Operating expenses		831,468		882,366		50,898			6.1
Operating income		105,863		86,263		(19,600	)		(18.5	)

– 1 –

II.Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2017			December 31, 2017			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		151,531			129,614			(21,916	)
Antenna facilities		1,674			1,348			(325	)
Terminal equipment		1,963			2,132			169
Local line facilities		1,103			1,085			(18	)
Long-distance line facilities		5,122			5,112			(9	)
Engineering facilities		49,878			48,664			(1,214	)
Submarine line facilities		16,701			15,360			(1,341	)
Buildings		205,475			201,256			(4,218	)
Construction in progress		13,323			16,013			2,690
Other		105,983			119,357			13,374
Total property, plant and equipment		552,757			539,945			(12,812	)
Intangible fixed assets		98,820			100,955			2,134
Total fixed assets - telecommunications businesses		651,578			640,900			(10,677	)
Investments and other assets
Investment securities		108,152			115,989			7,837
Investments in subsidiaries and affiliated companies		387,905			417,772			29,866
Other investments and assets		65,778			66,713			935
Allowance for doubtful accounts		(160	)		(133	)		26
Total investments and other assets		561,675			600,342			38,666
Total fixed assets		1,213,254			1,241,242			27,988

Current assets:
Cash and bank deposits		3,406			6,081			2,674
Notes receivable		8			0			(8	)
Accounts receivable, trade		178,248			190,520			12,272
Supplies		9,643			9,018			(625	)
Other current assets		90,655			55,439			(35,215	)
Allowance for doubtful accounts		(1,367	)		(1,410	)		(43	)
Total current assets		280,595			259,649			(20,946	)

TOTAL ASSETS		1,493,849			1,500,892			7,042

– 2 –


	(Millions of yen)
	March 31, 2017		December 31, 2017		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company and subsidiary		222,333		247,986		25,652
Liability for employees’ retirement benefits		89,994		94,170		4,176
Reserve for point services		407		437		29
Reserve for unused telephone cards		3,540		3,436		(103	)
Asset retirement obligations		4,126		4,547		421
Other long-term liabilities		19,416		22,362		2,946
Total long-term liabilities		339,818		372,940		33,122
Current liabilities:
Accounts payable, trade		29,548		20,209		(9,339	)
Short-term borrowings		—		13,445		13,445
Accrued taxes on income		3,749		*4,856		1,106
Allowance for losses on construction		627		587		(39	)
Asset retirement obligations		56		13		(42	)
Other current liabilities		169,379		150,203		(19,175	)
Total current liabilities		203,360		189,316		(14,044	)

TOTAL LIABILITIES		543,179		562,256		19,077


NET ASSETS
Shareholders’ equity:
Common stock		211,763		211,763		—
Capital surplus		131,615		131,615		—
Earned surplus		563,997		554,432		(9,564	)
Total shareholders’ equity		907,376		897,811		(9,564	)
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		43,080		40,786		(2,293	)
Deferred gains or losses on hedges		213		36		(176	)
Total unrealized gains (losses), translation adjustments, and others		43,293		40,823		(2,470	)

TOTAL NET ASSETS		950,670		938,635		(12,034	)

TOTAL LIABILITIES AND NET ASSETS		1,493,849		1,500,892		7,042

Note:

*NTT Com participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

– 3 –

III.Non-Consolidated Comparative Statements of Income

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2016		Nine months ended December 31, 2017		Increase (Decrease)			Year ended March 31, 2017
Telecommunications businesses:
Operating revenues		522,293		523,642		1,348			697,333
Operating expenses		462,077		450,641		(11,436	)		620,370
Operating income from telecommunications businesses		60,216		73,000		12,784			76,963

Supplementary businesses:
Operating revenues		151,884		170,122		18,237			226,522
Operating expenses		139,001		159,698		20,696			210,936
Operating income from supplementary businesses		12,883		10,424		(2,459	)		15,585
Operating income		73,099		83,424		10,324			92,549

Non-operating revenues:
Interest income		52		25		(27	)		62
Dividends received		8,160		7,148		(1,012	)		8,258
Lease and rental income		8,456		8,032		(423	)		11,204
Miscellaneous income		491		1,657		1,165			1,222
Totalnon-operating revenues		17,162		16,863		(298	)		20,748

Non-operating expenses:
Interest expenses		814		566		(247	)		1,050
Lease and rental expenses		4,111		2,902		(1,208	)		5,712
Miscellaneous expenses		401		110		(290	)		1,072
Totalnon-operating expenses		5,326		3,580		(1,745	)		7,836
Recurring profit		84,935		96,708		11,772			105,461
Special profits		—		2,433		2,433			—
Income before income taxes		84,935		99,141		14,205			105,461
Income taxes	*	23,555	*	29,144		5,588			20,458
Net income		61,380		69,996		8,616			85,003

Note:

– 4 –

IV. Business Results(Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2016		Nine months ended December 31, 2017		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2017
Cloud Computing Platforms		52,435		60,242		7,806			14.9			72,034
Data Networks		286,327		294,738		8,411			2.9			384,804
Voice Communications		190,144		183,054		(7,089	)		(3.7	)		250,794
Applications & Content		28,037		26,891		(1,146	)		(4.1	)		37,732
Solution Services		105,907		114,922		9,015			8.5			163,496
Others		11,326		13,914		2,588			22.8			14,993

Total operating revenues		674,178		693,764		19,585			2.9			923,855

– 5 –

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

Based on the financial results for the nine months ended December 31, 2017, NTT Com revised its forecasts for the fiscal year ending March 31, 2018 which was previously announced on May 15, 2017.

[Billions of yen]

Year Ending March 31,
2018
[Forecasts]

Year Ending March 31,
2018
[Revised Forecasts]

Change

Operating Revenues

1,330

[940

]

1,330

[940

]

—

Operating Income

135

[93

]

135

[110

]

—

[+17

]

Recurring Profit

—

[103

]

—

[120

]

—

[+17

]

Net Income

—

[73

]

—

[85

]

—

[+12

]

*	The figures in the upper rows are for NTT Communications Group. The figures in square brackets are for NTT Communications only.

Forward-looking statements and projected figures concerning the future performance of NTT Com, NTT and their respective subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT Com in light of information currently available to it regarding NTT Com, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT Com, NTT and their respective subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein, as well as other risks included in NTT’s most recent Annual Report on Form20-F and other filings and submissions with the United States Securities and Exchange Commission.

– 6 –

February 9, 2018

Nippon Telegraph and Telephone Corporation

Supplementary Data for

the Nine Months Ended December 31, 2017

Contents



1. Financial Results Summary (Consolidated)			pages 1-2

2. Financial Results (Business Segments)			page 3

3. Financial Results (Holding Company and Subsidiaries)			pages 4-6

4. Operating Data			pages 7-9

Disclaimers

The projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained herein, as well as other risks included in NTT’s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.

*	“E” in this material represents that the figure is a plan or projection for operation.

**	“FY” in this material indicates the fiscal year ending March 31 of the succeeding year.

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

NTT Consolidated Financial Results


	(Billions of yen)
	FY 2016																		FY 2017																FY 2017 (E)
	Three Months Ended June 30			Three Months Ended September 30			Three Months Ended December 31			Nine Months Ended December 31			Three Months Ended March 31			Year Ended March 31			Three Months Ended June 30			Three Months Ended September 30			Three Months Ended December 31			Nine Months Ended December 31			Three Months Ended March 31		Year Ended March 31		Year Ending March 31 (Forecast)⁽²⁾
Consolidated (US GAAP)
Operating Revenues		2,716.7			2,807.6			2,836.2			8,360.5			3,030.5			11,391.0			2,809.8			2,855.0			3,057.2			8,722.0			—		—		11,750.0
Fixed Voice Related Services		311.8			307.5			299.8			919.2			314.7			1,233.9			290.2			280.8			287.8			858.9			—		—		—
Mobile Voice Related Services		213.0			216.6			221.8			651.4			213.9			865.3			228.7			238.9			238.7			706.4			—		—		—
IP/Packet Communications Services		948.0			953.3			941.0			2,842.4			966.6			3,809.0			949.2			959.7			952.1			2,861.0			—		—		—
Sales of Telecommunications Equipment		186.7			236.4			227.0			650.1		��	156.4			806.5			173.4			175.1			293.5			642.0			—		—		—
System Integration		688.3			708.8			726.7			2,123.7			917.9			3,041.6			782.5			817.3			880.0			2,479.9			—		—		—
Other		368.9			385.0			419.9			1,173.7			461.0			1,634.8			385.8			383.1			405.0			1,173.9			—		—		—
Operating Expenses		2,229.3			2,368.5			2,444.1			7,041.9			2,809.3			9,851.2			2,318.2			2,371.4			2,712.9			7,402.5			—		—		10,160.0
Cost of Services (excluding items shown separately below)		547.3			606.1			598.0			1,751.4			736.2			2,487.6			554.9			565.6			580.4			1,700.9			—		—		—
Cost of Equipment Sold (excluding items shown separately below)		175.3			231.2			248.3			654.8			225.0			879.7			184.5			195.4			295.5			675.4			—		—		—
Cost of System Integration (excluding items shown separately below)		501.7			484.5			510.3			1,496.6			664.4			2,161.0			561.1			580.0			633.7			1,774.8			—		—		—
Depreciation and Amortization		359.2			357.3			366.4			1,082.9			379.3			1,462.2			332.3			327.7			335.6			995.6			—		—		1,359.0
Impairment Losses		0.4			14.3			51.3			66.0			7.9			73.9			—			0.6			143.9			144.4			—		—		—
Goodwill		—			4.5			48.8			53.3			—			53.3			—			—			18.9			18.9			—		—		—
Metal cables		—			—			—			—			—			—			—			—			124.8			124.8			—		—		—
Other		0.4			9.8			2.5			12.7			7.9			20.6			—			0.6			0.2			0.7			—		—		—
Selling, General and Administrative Expenses		645.5			675.1			669.7			1,990.3			796.5			2,786.8			685.4			702.2			723.8			2,111.4			—		—		—
Operating Income		487.4			439.1			392.1			1,318.6			221.2			1,539.8			491.6			483.6			344.4			1,319.6			—		—		1,590.0
Income Before Income Taxes		446.1			450.8			410.3			1,307.2			220.6			1,527.8			496.2			485.8			459.3			1,441.3			—		—		1,695.0
Net Income Attributable to NTT		243.6			232.5			192.6			668.7			131.4			800.1			271.5			256.0			209.1			736.6			—		—		880.0
(Ref.) Details of “Cost of Services,” “Cost of Equipment Sold,” “Cost of System Integration” and “Selling, General and Administrative Expenses”
Personnel		557.7			569.7			547.5			1,674.9			601.9			2,276.8			593.1			594.7			612.8			1,800.5			—		—		—
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		1,227.9			1,335.4			1,384.4			3,947.8			1,664.2			5,612.0			1,308.2			1,358.2			1,530.7			4,197.1			—		—		—
Loss on Disposal of Property, Plant and Equipment		24.2			36.3			39.8			100.2			96.8			197.0			27.3			35.4			34.8			97.4			—		—		—
Other Expenses		60.0			55.6			54.7			170.3			59.1			229.4			57.3			55.0			55.2			167.5			—		—		—
Total		1,869.8			1,996.9			2,026.4			5,893.1			2,422.1			8,315.1			1,985.9			2,043.2			2,233.4			6,262.5			—		—		—
EBITDA and EBITDA Margin with Reconciliation
EBITDA [a+b+c+d]⁽¹⁾		860.0			830.7			829.8			2,520.5			662.9			3,183.3			837.4			827.7			839.3			2,504.4			—		—		3,190.0
a Operating Income		487.4			439.1			392.1			1,318.6			221.2			1,539.8			491.6			483.6			344.4			1,319.6			—		—		1,590.0
b Depreciation and Amortization		359.2			357.3			366.4			1,082.9			379.3			1,462.2			332.3			327.7			335.6			995.6			—		—		1,359.0
c Loss on Sales and Disposal of Property, Plant and Equipment		13.0			20.0			20.0			53.0			54.4			107.4			13.5			15.9			15.5			44.9			—		—		241.0
d Impairment Losses		0.4			14.3			51.3			66.0			7.9			73.9			—			0.6			143.9			144.4			—		—		—
EBITDA Margin [(e/f)*100]⁽¹⁾		31.7	%		29.6	%		29.3	%		30.1	%		21.9	%		27.9	%		29.8	%		29.0	%		27.5	%		28.7	%		—		—		27.1	%
e EBITDA [a+b+c+d]		860.0			830.7			829.8			2,520.5			662.9			3,183.3			837.4			827.7			839.3			2,504.4			—		—		3,190.0
f Operating Revenues		2,716.7			2,807.6			2,836.2			8,360.5			3,030.5			11,391.0			2,809.8			2,855.0			3,057.2			8,722.0			—		—		11,750.0
Interest-Bearing Liabilities

	FY 2016																		FY 2017																FY 2017 (E)
	As of June 30			As of September 30			As of December 31			As of March 31									As of June 30			As of September 30			As of December 31			As of March 31							As of March 31 (Forecast)
Interest-Bearing Liabilities		4,353.6			4,091.8			4,497.1			4,088.2									4,419.3			4,172.2			4,127.7			—							3,900.0


Notes :	(1)	Beginning with the three months ended March 31, 2017, the method for calculating EBITDA has been revised to add Loss on Sales of Property, Plant and Equipment and Impairment Losses. EBITDA and EBITDA Margin, as calculated using the previous method including only Operating Income and Depreciation and Amortization, and Loss on Disposal of Property, Plant and Equipment, would have been 695.3 billion yen and 22.7%, respectively, for the three months ended December 31, 2017 and 2,359.3 billion yen and 27.0%, respectively, for the nine months ended December 31, 2017. EBITDA and EBITDA Margin figures presented in the table above have been retroactively recalculated using the new calculation method.
	(2)	Forecasts for the year ending March 31, 2018 have not been changed from those announced in the financial results for the six months ended September 30, 2017.

– 1 –

1. Financial Results Summary (Capital Investment)

Capital Investment


	(Billions of yen)
	FY 2016												FY 2017												FY 2017 (E)
	Three Months Ended June 30		Three Months Ended September 30		Three Months Ended December 31		Nine Months Ended December 31		Three Months Ended March 31		Year Ended March 31		Three Months Ended June 30		Three Months Ended September 30		Three Months Ended December 31		Nine Months Ended December 31		Three Months Ended March 31		Year Ended March 31		Year Ending March 31 (Forecast)⁽³⁾
Capital Investment⁽¹⁾		284.4		381.5		426.5		1,092.3		607.8		1,700.0		356.0		402.3		381.6		1,139.9		—		—		1,700.0
Regional communications business		96.3		118.7		130.6		345.6		237.7		583.4		106.4		126.2		123.6		356.3		—		—		555.0
Long distance and international communications business		44.8		56.6		67.0		168.3		76.5		244.9		52.1		57.9		47.8		157.8		—		—		249.0
Mobile communications business		97.1		148.9		153.3		399.4		197.7		597.1		120.9		146.7		135.9		403.6		—		—		570.0
Data communications business		28.5		39.1		37.9		105.6		52.5		158.1		44.4		53.5		41.3		139.3		—		—		192.0
Other business		17.6		18.1		37.6		73.3		43.3		116.6		32.1		17.9		32.9		82.9		—		—		134.0
(Ref.) Core Group Companies
NTT (Holding Company)		1.0		2.6		3.8		7.6		8.1		15.7		1.9		2.1		2.8		6.9		—		—		18.0
R&D Facilities		—		—		—		—		—		12.9		—		—		—		—		—		—		15.0
Joint Facilities		—		—		—		—		—		2.8		—		—		—		—		—		—		3.0
NTT East⁽²⁾		42.1		52.4		61.0		155.7		118.0		273.8		58.5		56.8		54.7		170.1		—		—		250.0
Service Expansion and Improvement		—		—		—		—		—		249.6		—		—		—		—		—		—		231.0
Voice Transmission		—		—		—		—		—		142.6		—		—		—		—		—		—		133.0
Data Transmission		—		—		—		—		—		17.8		—		—		—		—		—		—		14.0
Leased Circuit		—		—		—		—		—		88.2		—		—		—		—		—		—		83.0
Telegraph		—		—		—		—		—		0.9		—		—		—		—		—		—		1.0
R&D Facilities		—		—		—		—		—		2.7		—		—		—		—		—		—		2.0
Joint Facilities		—		—		—		—		—		21.3		—		—		—		—		—		—		17.0
NTT West⁽²⁾		46.2		56.8		61.7		164.8		109.3		274.1		42.1		60.9		58.5		161.6		—		—		260.0
Service Expansion and Improvement		—		—		—		—		—		256.0		—		—		—		—		—		—		239.0
Voice Transmission		—		—		—		—		—		157.7		—		—		—		—		—		—		144.0
Data Transmission		—		—		—		—		—		22.9		—		—		—		—		—		—		17.0
Leased Circuit		—		—		—		—		—		74.9		—		—		—		—		—		—		77.0
Telegraph		—		—		—		—		—		0.3		—		—		—		—		—		—		1.0
R&D Facilities		—		—		—		—		—		1.9		—		—		—		—		—		—		2.0
Joint Facilities		—		—		—		—		—		16.0		—		—		—		—		—		—		19.0
NTT Communications		25.1		32.2		34.1		91.5		43.6		135.1		18.1		22.3		20.5		61.0		—		—		111.0
Cloud Computing Platforms		—		—		—		—		—		39.6		—		—		—		—		—		—		23.0
Data Networks		—		—		—		—		—		26.3		—		—		—		—		—		—		22.1
Voice Communications		—		—		—		—		—		10.2		—		—		—		—		—		—		8.2
Applications & Content		—		—		—		—		—		1.9		—		—		—		—		—		—		4.1
Solution Services		—		—		—		—		—		6.3		—		—		—		—		—		—		5.3
Infrastructure and Joint Facilities, etc.		—		—		—		—		—		50.5		—		—		—		—		—		—		48.0
NTT DOCOMO (Consolidated)		97.1		148.9		153.3		399.4		197.7		597.1		120.9		146.7		135.9		403.6		—		—		570.0
NTT DATA (Consolidated)		28.5		39.1		37.9		105.6		52.5		158.1		49.0		53.5		41.3		143.9		—		—		192.0
(Ref.) Optical Access Network Investment
NTT East		—		—		—		—		—		85.0		—		—		—		—		—		—		80.0
NTT West		—		—		—		—		—		71.0		—		—		—		—		—		—		73.0


Notes :	(1)	Capital Investment figures for domestic access network businesses for the nine months ended December 31, 2016, the nine months ended December 31, 2017 and the year ending March 31, 2018 (Forecast) are 800.8 billion yen, 795.8 billion yen and 1,193.0 billion yen, respectively.
	(2)	Figures for NTT East and NTT West include figures for Optical Access Network Investment.
	(3)	Forecasts for the year ending March 31, 2018 have not been changed from those announced in the financial results for the six months ended September 30, 2017.

– 2 –

2. Financial Results (Business Segments)


	(Billions of yen)
	FY 2016													FY 2017												FY 2017 (E)
	Three Months Ended June 30		Three Months Ended September 30		Three Months Ended December 31			Nine Months Ended December 31		Three Months Ended March 31		Year Ended March 31		Three Months Ended June 30		Three Months Ended September 30		Three Months Ended December 31		Nine Months Ended December 31		Three Months Ended March 31		Year Ended March 31		Year Ending March 31 (Forecast)⁽²⁾
Business segments⁽¹⁾
Regional communications business
Operating Revenues		802.9		817.5		814.4			2,434.8		873.4		3,308.2		787.8		792.8		798.7		2,379.3		—		—		3,230.0
Operating Expenses		675.1		713.1		716.2			2,104.4		844.3		2,948.7		654.2		673.3		796.1		2,123.6		—		—		2,900.0
Operating Income		127.8		104.5		98.2			330.5		29.0		359.5		133.6		119.5		2.5		255.7		—		—		330.0
Long distance and international communications business
Operating Revenues		519.0		519.8		531.8			1,570.6		558.6		2,129.3		529.7		535.1		567.1		1,631.9		—		—		2,230.0
Operating Expenses		492.0		504.7		555.3			1,551.9		536.5		2,088.4		494.9		499.5		560.9		1,555.3		—		—		2,110.0
Operating Income		27.0		15.2		(23.5	)		18.7		22.1		40.8		34.8		35.6		6.3		76.6		—		—		120.0
Mobile communications business
Operating Revenues		1,108.7		1,179.4		1,181.2			3,469.2		1,115.3		4,584.6		1,136.7		1,163.4		1,295.5		3,595.7		—		—		4,750.0
Operating Expenses		810.4		893.9		925.6			2,629.9		1,003.0		3,632.9		859.1		893.7		1,009.2		2,762.1		—		—		3,795.0
Operating Income		298.3		285.4		255.6			839.3		112.3		951.6		277.6		269.7		286.3		833.6		—		—		955.0
Data communications business
Operating Revenues		373.5		388.6		402.6			1,164.6		554.1		1,718.7		462.3		482.1		516.3		1,460.8		—		—		1,970.0
Operating Expenses		351.6		374.6		371.4			1,097.6		513.3		1,610.8		437.0		448.4		486.2		1,371.6		—		—		1,840.0
Operating Income		21.9		14.0		31.2			67.1		40.8		107.9		25.3		33.7		30.1		89.1		—		—		130.0
Other business
Operating Revenues		272.1		295.5		322.3			889.9		392.4		1,282.3		281.4		283.0		297.2		861.5		—		—		1,260.0
Operating Expenses		259.8		278.1		292.7			830.6		374.4		1,205.0		262.3		262.7		279.2		804.1		—		—		1,185.0
Operating Income		12.3		17.4		29.6			59.3		18.0		77.3		19.0		20.4		18.0		57.4		—		—		75.0


Notes :	(1)	Figures for each segment include inter-segment transactions.
	(2)	Forecasts for the year ending March 31, 2018 have not been changed from those announced in the financial results for the six months ended September 30, 2017.

– 3 –

3. Financial Results (Holding Company and Subsidiaries)


	(Billions of yen)
	FY 2016												FY 2017																FY 2017 (E)		[Ref.] FY 2017 (E)
	Three Months Ended June 30		Three Months Ended September 30			Three Months Ended December 31		Nine Months Ended December 31		Three Months Ended March 31			Year Ended March 31		Three Months Ended June 30		Three Months Ended September 30			Three Months Ended December 31			Nine Months Ended December 31		Three Months Ended March 31		Year Ended March 31		Year Ending March 31 (Revised Forecast)⁽²⁾		Year Ending March 31 (Forecast when previous 2Q results were announced)
NTT (Holding Company) (JPN GAAP)
Operating Revenues		269.1		32.7			138.6		440.6		33.7			474.3		436.7		30.9			162.3			630.1		—		—		662.0		662.0
Operating Expenses		29.4		30.7			31.1		91.3		43.3			134.6		30.0		29.4			30.8			90.2		—		—		130.0		130.0
Operating Income		239.6		2.0			107.5		349.2		(9.5	)		339.6		406.6		1.5			131.5			539.8		—		—		532.0		532.0
Non-Operating Revenues		6.0		6.2			5.7		18.1		6.0			24.1		5.1		6.2			5.1			16.5		—		—		22.0		22.0
Non-Operating Expenses		7.7		6.8			6.7		21.3		7.6			28.9		6.1		6.3			6.7			19.2		—		—		25.0		25.0
Recurring Profit		237.9		1.4			106.5		345.9		(11.0	)		334.9		405.6		1.4			130.0			537.1		—		—		529.0		529.0
Net Income		237.5		(19.7	)		79.2		297.0		(8.9	)		288.1		405.3		(0.6	)		130.3			535.1		—		—		727.0		530.0
NTT East (JPN GAAP)
Operating Revenues		410.1		413.3			413.1		1,236.6		435.5			1,672.2		405.5		407.1			407.8			1,220.6		—		—		1,640.0		1,640.0
Voice Transmission Services (excluding IP)⁽¹⁾		101.4		99.9			99.2		300.6		95.8			396.5		94.2		92.7			92.2			279.3		—		—		370.0		370.0
IP Services		213.3		211.7			212.4		637.5		212.8			850.3		213.4		213.7			213.8			641.0		—		—		850.0		850.0
Leased Circuit (excluding IP)		24.0		23.6			23.0		70.6		22.6			93.3		23.2		23.1			23.0			69.5		—		—		93.0		93.0
Other		46.1		46.0			48.1		140.3		54.1			194.5		47.6		46.8			49.4			143.9		—		—		193.0		193.0
Supplementary Business		25.0		31.9			30.3		87.4		50.0			137.4		26.8		30.6			29.1			86.7		—		—		134.0		134.0
Operating Expenses		346.0		353.6			363.1		1,062.9		420.2			1,483.1		329.9		341.0			337.4			1,008.3		—		—		1,389.0		1,450.0
Personnel		23.6		23.6			23.2		70.5		24.0			94.6		21.4		20.8			20.6			63.0		—		—		85.0		85.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		224.3		230.9			236.1		691.4		270.7			962.1		222.9		232.6			231.3			686.9		—		—		947.0		947.0
Depreciation and Amortization		72.2		72.5			76.0		220.8		74.2			295.0		58.7		59.1			59.5			177.3		—		—		234.0		234.0
Loss on Disposal of Property, Plant and Equipment		6.1		8.4			9.7		24.3		31.5			55.9		7.6		10.4			8.1			26.1		—		—		49.0		110.0
Taxes and Public Dues		19.5		18.1			17.9		55.6		19.6			75.3		19.1		18.0			17.6			54.8		—		—		74.0		74.0
Operating Income		64.1		59.6			49.9		173.7		15.3			189.1		75.6		66.1			70.4			212.2		—		—		251.0		190.0
Non-Operating Revenues		17.3		0.5			1.5		19.4		0.7			20.2		8.1		0.8			2.9			11.9		—		—		9.0		9.0
Non-Operating Expenses		1.2		1.2			1.2		3.7		1.1			4.9		0.9		0.9			0.9			2.7		—		—		4.0		4.0
Recurring Profit		80.2		58.9			50.2		189.4		14.9			204.4		82.8		66.0			72.4			221.3		—		—		256.0		195.0
Net Income		57.8		42.1			36.5		136.5		13.1			149.6		60.0		46.3			8.5			114.9		—		—		135.0		135.0
NTT West (JPN GAAP)
Operating Revenues		362.0		368.4			362.7		1,093.2		385.7			1,479.0		351.0		354.1			353.0			1,058.2		—		—		1,436.0		1,436.0
Voice Transmission Services (excluding IP)⁽¹⁾		101.6		99.9			99.0		300.6		95.6			396.2		93.7		92.2			91.4			277.5		—		—		370.0		370.0
IP Services		175.5		173.6			174.0		523.2		173.9			697.2		173.5		171.8			171.8			517.2		—		—		689.0		689.0
Leased Circuit (excluding IP)		22.0		21.7			21.3		65.1		21.1			86.3		22.0		21.7			21.6			65.3		—		—		87.0		87.0
Other		33.8		35.0			35.9		104.8		40.8			145.6		32.5		31.8			34.0			98.3		—		—		138.0		138.0
Supplementary Business		29.0		38.0			32.2		99.3		54.0			153.4		29.1		36.4			34.1			99.7		—		—		152.0		152.0
Operating Expenses		323.3		335.9			336.6		995.9		387.8			1,383.8		301.4		310.6			309.5			921.5		—		—		1,272.0		1,336.0
Personnel		20.3		20.0			19.9		60.3		20.2			80.5		18.9		17.6			17.8			54.4		—		—		74.0		74.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		206.3		219.1			215.4		640.9		254.4			895.4		206.0		215.4			212.6			634.2		—		—		863.0		863.0
Depreciation and Amortization		70.4		70.8			74.1		215.4		72.1			287.6		52.2		52.7			53.8			158.9		—		—		213.0		213.0
Loss on Disposal of Property, Plant and Equipment		8.6		9.4			10.9		29.1		24.1			53.2		6.6		8.4			9.2			24.4		—		—		55.0		119.0
Taxes and Public Dues		17.5		16.3			16.2		50.0		16.8			66.9		17.4		16.1			15.8			49.4		—		—		67.0		67.0
Operating Income		38.7		32.5			26.0		97.2		(2.0	)		95.1		49.5		43.5			43.5			136.6		—		—		164.0		100.0
Non-Operating Revenues		1.2		0.4			0.5		2.2		0.7			2.9		1.3		0.4			0.3			2.1		—		—		4.0		4.0
Non-Operating Expenses		2.0		1.7			1.7		5.6		4.3			9.9		1.5		1.7			1.5			4.8		—		—		9.0		9.0
Recurring Profit		37.8		31.1			24.8		93.9		(5.7	)		88.1		49.3		42.1			42.4			133.9		—		—		159.0		95.0

Net Income		23.3		22.2			18.0		63.6		(3.8	)		59.7		35.0		29.8			(14.3	)		50.5		—		—		70.0		70.0


Note:	(1)	Operating Revenues from Voice Transmission Services (excluding IP) of NTT East and NTT West for the nine months ended December 31, 2017 include monthly charges, call charges and interconnection charges of 211.6 billion yen, 17.5 billion yen and 32.5 billion yen for NTT East, and 209.9 billion yen, 16.4 billion yen and 34.6 billion yen for NTT West, respectively.
	(2)	NTT (Holding Company) Forecasts for the year ending March 31, 2018 have not been changed from those announced on December 11, 2017.

-4-

3. Financial Results (Holding Company and Subsidiaries)


	(Billions of yen)
	FY 2016																		FY 2017													FY 2017 (E)		[Ref.] FY 2017 (E)
	Three Months Ended June 30			Three Months Ended September 30			Three Months Ended December 31			Nine Months Ended December 31			Three Months Ended March 31			Year Ended March 31			Three Months Ended June 30			Three Months Ended September 30		Three Months Ended December 31		Nine Months Ended December 31		Three Months Ended March 31		Year Ended March 31		Year Ending March 31 (Revised Forecast)		Year Ending March 31 (Forecast when previous 2Q results were announced)
NTT Communications (JPN GAAP)
Operating Revenues⁽¹⁾		220.2			226.9			227.0			674.1			249.6			923.8			230.3			231.9		231.3		693.7		—		—		940.0		940.0
Cloud Computing Platforms		17.1			17.6			17.6			52.4			19.5			72.0			20.2			19.3		20.6		60.2		—		—		87.0		87.0
Data Networks		94.8			95.1			96.3			286.3			98.4			384.8			97.2			98.6		98.8		294.7		—		—		393.0		393.0
Voice Communications		63.0			63.3			63.7			190.1			60.6			250.7			60.0			60.7		62.2		183.0		—		—		244.0		244.0
Applications & Content		9.4			9.2			9.3			28.0			9.6			37.7			8.7			9.3		8.7		26.8		—		—		37.0		37.0
Solution Services		31.9			37.7			36.1			105.9			57.5			163.4			37.3			40.3		37.2		114.9		—		—		159.0		159.0
Others		3.7			3.7			3.8			11.3			3.6			14.9			6.8			3.4		3.6		13.9		—		—		20.0		20.0
Operating Expenses		194.3			202.5			204.1			601.0			230.2			831.3			198.9			204.8		206.4		610.3		—		—		830.0		847.0
Personnel		19.2			18.9			19.0			57.2			19.7			77.0			19.1			18.9		18.9		57.1		—		—		77.0		77.0
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses		90.8			98.8			95.1			284.8			121.6			406.4			94.8			99.5		97.0		291.4		—		—		639.0		639.0
Communication Network Charges		54.7			54.6			59.2			168.6			54.4			223.1			57.6			58.8		62.0		178.4		—		—
Depreciation and Amortization		25.4			25.6			26.2			77.4			27.0			104.4			22.7			23.3		23.7		69.8		—		—		96.0		96.0
Loss on Disposal of Property, Plant and Equipment		0.5			1.0			0.9			2.5			4.1			6.7			0.8			0.6		1.2		2.8		—		—		5.0		22.0
Taxes and Public Dues		3.5			3.2			3.4			10.2			3.2			13.4			3.6			3.4		3.4		10.5		—		—		13.0		13.0
Operating Income		25.8			24.3			22.9			73.0			19.4			92.5			31.4			27.1		24.9		83.4		—		—		110.0		93.0
Non-Operating Revenues		7.4			5.6			4.0			17.1			3.5			20.7			6.7			6.4		3.5		16.8		—		—		18.0		18.0
Non-Operating Expenses		2.3			1.6			1.3			5.3			2.5			7.8			1.4			0.9		1.1		3.5		—		—		8.0		8.0
Recurring Profit		30.9			28.3			25.6			84.9			20.5			105.4			36.7			32.6		27.3		96.7		—		—		120.0		103.0
Net Income		22.3			20.4			18.5			61.3			23.6			85.0			27.6			23.1		19.2		69.9		—		—		85.0		73.0
Dimension Data (IFRS)⁽²⁾⁽³⁾
Operating Revenues		206.6			198.6			196.4			601.7			207.4			809.0			207.0			208.5		233.1		648.6		—		—		890.0		890.0
Operating Expenses		207.9			205.7			197.9			611.5			207.4			818.9			207.2			205.2		229.8		642.1		—		—		881.0		881.0
Operating Income⁽⁴⁾		(1.3	)		(7.0	)		(1.5	)		(9.9	)		(0	)		(9.9	)		(0.2	)		3.3		3.3		6.5		—		—		9.0		9.0
Net Income Attributable to Dimension Data		(2.4	)		(9.6	)		(14.6	)		(26.5	)		(1.4	)		(27.9	)		(1.8	)		0.2		2.3		0.7		—		—		—		—


Notes:	(1)	The following are the main services included in each line item:
		- Cloud Computing Platforms: “Data center services” and “Private Cloud (Enterprise Cloud, etc.)”
		- Data Networks: “Closed network services (Arcstar Universal One, etc.)” and “Open network service (OCN, etc.)”
		- Voice Communications: “Telephone services” and “VoIP services (050 plus, etc.)”
		- Applications & Content: “Application services (Mail services, etc.)”
		- Solution Services: “System integration services”
	(2)	Because Dimension Data’s statements of income from January 1 to September 30, 2017 are consolidated into NTT’s consolidated statements of income from April 1 to December 31, 2017, Dimension Data’s financial results for the nine months ended September 30, 2017 are included under the nine months ended December 31, 2017 and Dimension Data’s forecast for the twelve months ending December 31, 2017 is included under Year Ending March 31, 2018 (Forecast).
	(3)	The conversion rate used for Dimension Data figures for the nine months ended December 31, 2017 is USD1.00 = JPY111.89.
	(4)	Operating Income for the nine months ended December 31, 2017 under US GAAP was (0.5) billion yen.

– 5 –

3. Financial Results (Holding Company and Subsidiaries)


	(Billions of yen)
	FY 2016																		FY 2017																FY 2017 (E)
	Three Months Ended June 30			Three Months Ended September 30			Three Months Ended December 31			Nine Months Ended December 31			Three Months Ended March 31			Year Ended March 31			Three Months Ended June 30			Three Months Ended September 30			Three Months Ended December 31			Nine Months Ended December 31			Three Months Ended March 31		Year Ended March 31		Year Ending March 31 (Forecast)⁽²⁾
NTT DOCOMO Consolidated (US GAAP)
Operating Revenues		1,108.7			1,179.7			1,181.3			3,469.6			1,115.0			4,584.6			1,136.7			1,163.4			1,295.6			3,595.7			—		—		4,750.0
Telecommunications Services		729.7			744.8			750.7			2,225.2			759.9			2,985.1			774.9			793.9			793.4			2,362.2			—		—		3,114.0
Mobile Communications Services		704.2			712.8			712.1			2,129.1			714.8			2,844.0			723.1			736.5			732.0			2,191.6			—		—		2,878.0
Voice Revenues		215.9			219.6			224.8			660.2			215.0			875.2			231.2			241.4			241.3			713.9			—		—		932.0
Packet Communications Revenues		488.3			493.3			487.4			1,468.9			499.8			1,968.8			491.9			495.1			490.6			1,477.6			—		—		1,946.0
Optical-fiber Broadband Services and Other Telecommunications Services		25.5			31.9			38.6			96.1			45.1			141.1			51.8			57.4			61.4			170.6			—		—		236.0
Equipment Sales		165.8			214.4			206.2			586.3			132.9			719.2			150.6			152.9			274.1			577.6			—		—		759.0
Other Operating Revenues		213.2			220.5			224.4			658.1			222.2			880.3			211.2			216.7			228.0			655.9			—		—		877.0
Operating Expenses		809.4			893.4			924.5			2,627.3			1,012.6			3,639.8			858.4			893.0			1,009.0			2,760.3			—		—		3,790.0
Personnel		72.3			72.8			72.2			217.3			74.5			291.8			72.9			71.6			72.5			216.9			—		—		290.0
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses		531.5			600.6			622.8			1,754.8			677.3			2,432.1			553.3			577.5			688.2			1,819.0			—		—		2,506.0
Depreciation and Amortization		109.7			110.8			113.9			334.4			117.9			452.3			119.0			121.0			121.5			361.5			—		—		489.0
Impairment Loss		—			—			—			—			12.2			12.2			—			—			—			—			—		—		—
Loss on Disposal of Property, Plant and Equipment		7.9			16.8			16.5			41.3			38.3			79.6			12.4			16.0			15.4			43.9			—		—		69.0
Communication Network Charges		76.7			82.1			88.8			247.6			81.8			329.4			90.9			96.6			100.8			288.3			—		—		395.0
Taxes and Public Dues		11.2			10.3			10.3			31.8			10.5			42.4			9.9			10.2			10.6			30.7			—		—		41.0
Operating Income		299.3			286.3			256.7			842.3			102.4			944.7			278.3			270.5			286.6			835.3			—		—		960.0
Non-Operating Income (Loss)		(4.0	)		(0.4	)		8.3			3.8			1.0			4.8			3.5			2.2			116.9			122.6			—		—		121.0
Income Before Income Taxes		295.3			285.9			265.0			846.2			103.4			949.6			281.8			272.7			403.5			958.0			—		—		1,081.0
Net Income Attributable to NTT DOCOMO		206.9			198.6			184.0			589.4			63.1			652.5			189.9			184.0			280.4			654.3			—		—		740.0
NTT DATA Consolidated (JPN GAAP)
Net sales		392.2			387.4			401.2			1,180.8			551.5			1,732.4			540.4			480.5			515.2			1,536.2			—		—		2,060.0
Public & Social Infrastructure		89.1			97.6			109.5			296.3			159.1			455.4			85.9			—			103.6			286.7			—		—		447.0
Financial		118.6			127.7			124.3			370.7			147.2			518.0			127.5			—			140.8			400.0			—		—		539.0
Enterprise & Solutions		97.7			103.1			103.0			304.0			121.6			425.6			105.2			—			120.7			339.7			—		—		442.0
New
North America⁽¹⁾		—			—			—			—			—			—			—			—			107.2			370.4			—		—		513.0
EMEA & LATAM⁽¹⁾		—			—			—			—			—			—			—			—			104.5			317.3			—		—		362.0
Elimination or Corporate⁽¹⁾		—			—			—			—			—			—			—			—			(61.8	)		(178.1	)		—		—		(243.0	)
Old
Global		145.2			122.8			128.7			396.7			206.5			603.3			284.7			—			—			—			—		—		—
Elimination or Corporate		(58.5	)		(63.9	)		(64.5	)		(186.9	)		(83.0	)		(269.9	)		(63.0	)		—			—			—			—		—		—
Cost of Sales		294.5			286.7			293.7			874.9			418.6			1,293.6			413.5			354.4			388.0			1,156.0			—		—		1,548.0
Gross Profit		97.6			100.6			107.5			305.8			132.9			438.8			126.9			126.0			127.2			380.2			—		—		512.0
Selling, General and Administrative Expenses		80.3			72.7			78.3			231.3			90.4			321.7			104.7			96.2			97.2			298.2			—		—		392.0
Operating Income		17.3			27.9			29.1			74.5			42.5			117.1			22.1			29.8			29.9			82.0			—		—		120.0
Non-Operating Income (Loss)		(0	)		(0.1	)		(1.1	)		(1.3	)		(2.7	)		(4.1	)		0.2			(2.0	)		(0.2	)		(2.0	)		—		—		(4.0	)
Ordinary income		17.3			27.7			28.0			73.1			39.8			112.9			22.4			27.8			29.7			80.0			—		—		116.0
Net Income Attributable to Owners of Parent		10.0			18.9			16.0			45.0			20.6			65.6			8.1			13.7			14.1			36.0			—		—		59.0


Note:	(1)	Due to the revision of NTT DATA’s global management structure on July 1, 2017, NTT DATA changed the method of classification and disclosure of segment information starting from the six months ended September 30, 2017. Under the new segments, the results for the nine months ended December 31, 2016 were 130.2 billion for North America, 249.4 billion yen for EMEA & LATAM, and (169.9) billion yen for Elimination or Corporate, and the results for the year ended March 31, 2017 were 246.3 billion for North America, 330.8 billion yen for EMEA & LATAM, and (243.9) billion yen for Elimination or Corporate. The new Elimination or Corporate segment includes certain figures that would have been included in former segment areas such as China/APAC.
	(2)	Forecasts for the year ending March 31, 2018 have not been changed from those announced in the financial results for the six months ended September 30, 2017.

– 6 –

4. Operating Data

Number of Subscribers


	(in thousands except for Public Telephones)
	FY 2016								FY 2017								FY 2017 (E)
	As of June 30		As of September 30		As of December 31		As of March 31		As of June 30		As of September 30		As of December 31		As of March 31		As of March 31 (Forecast)⁽⁹⁾
Telephone Subscriber Lines⁽¹⁾		19,671		19,413		19,117		18,797		18,482		18,168		17,860		—		17,785
NTT East		9,740		9,617		9,471		9,315		9,166		9,014		8,864		—		8,865
NTT West		9,931		9,796		9,647		9,482		9,316		9,154		8,996		—		8,920
INS-Net⁽²⁾		2,719		2,661		2,602		2,539		2,488		2,440		2,386		—		2,326
NTT East		1,384		1,356		1,325		1,293		1,269		1,244		1,217		—		1,193
NTT West		1,334		1,305		1,276		1,246		1,219		1,196		1,170		—		1,133
Telephone Subscriber Lines + INS-Net		22,390		22,074		21,719		21,336		20,970		20,609		20,246		—		20,111
NTT East		11,125		10,973		10,796		10,609		10,434		10,258		10,081		—		10,059
NTT West		11,265		11,102		10,923		10,727		10,535		10,350		10,166		—		10,052
Public Telephones		168,673		166,120		163,921		161,375		160,396		159,485		158,693		—		157,972
NTT East		76,511		74,846		73,357		71,434		71,037		70,763		70,617		—		70,434
NTT West		92,162		91,274		90,564		89,941		89,359		88,722		88,076		—		87,538
FLET’S ISDN		83		81		79		77		75		73		72		—		70
NTT East		36		35		34		33		33		32		31		—		30
NTT West		47		46		45		44		43		42		41		—		39
FLET’S ADSL		1,019		987		955		919		881		849		819		—		791
NTT East		459		444		428		411		394		379		365		—		351
NTT West		560		543		527		508		487		470		454		—		440
FLET’S Hikari (including Hikari Collaboration Model)^(3)(4)(5)		19,520		19,704		19,903		20,053		20,294		20,386		20,457		—		20,853
NTT East		10,839		10,958		11,078		11,173		11,318		11,381		11,439		—		11,673
NTT West		8,681		8,746		8,825		8,880		8,976		9,005		9,018		—		9,180
(incl.) Hikari Collaboration Model		5,912		6,917		7,854		8,744		9,574		10,145		10,655		—		11,894
NTT East		3,781		4,337		4,846		5,328		5,770		6,077		6,351		—		7,028
NTT West		2,131		2,580		3,008		3,416		3,804		4,069		4,304		—		4,866
Hikari Denwa⁽⁶⁾		17,451		17,545		17,655		17,759		17,862		17,924		17,984		—		18,039
NTT East		9,180		9,242		9,311		9,369		9,433		9,478		9,520		—		9,569
NTT West		8,271		8,302		8,344		8,390		8,430		8,447		8,464		—		8,470
Conventional Leased Circuit Services		231		229		227		225		224		222		220		—		218
NTT East		112		111		110		109		109		108		106		—		105
NTT West		118		118		117		116		115		115		114		—		113
High Speed Digital Services		114		112		110		108		106		105		103		—		100
NTT East		58		57		56		55		54		53		52		—		52
NTT West		56		55		54		53		52		52		51		—		48
NTT Group Major ISPs⁽⁷⁾		11,360		11,328		11,303		11,231		11,189		11,157		11,110		—		11,015
(incl.) OCN		7,969		7,905		7,847		7,739		7,678		7,637		7,595		—		7,496
(incl.) Plala		3,024		3,047		3,075		3,106		3,124		3,135		3,129		—		3,130
Hikari TV		3,047		3,041		3,032		3,023		3,021		3,018		3,015		—		3,030
FLET’S TV Transmission Services⁽⁶⁾		1,445		1,464		1,489		1,521		1,551		1,570		1,592		—		1,602
NTT East		917		926		939		951		963		972		983		—		981
NTT West		528		538		551		570		587		597		609		—		621
Mobile Telecommunications Services⁽⁸⁾		71,614		72,943		73,588		74,880		75,114		75,361		75,678		—		76,200
(incl.) “Kake-hodai & Pake-aeru” billing plan		31,586		33,416		35,198		37,066		38,342		39,617		40,598		—		—
Telecommunications Services (LTE (Xi))		39,893		41,281		42,671		44,544		45,659		46,908		48,200		—		50,000
Telecommunications Services (FOMA (3G))		31,721		31,662		30,917		30,336		29,455		28,453		27,478		—		26,200
sp-mode		33,082		33,809		34,749		35,921		36,671		37,418		37,979		—		39,300
i-mode		18,136		17,416		16,503		15,493		14,662		13,809		13,030		—		11,900


Notes :	(1)	Number of Telephone Subscriber Lines is the total of individual lines and central station lines (Subscriber Telephone Light Plan is included).
	(2)	“INS-Net” includes “INS-Net 64” and “INS-Net 1500.” In terms of number of channels, transmission rate, and line use rate (base rate), “INS-Net 1500” is in all cases roughly ten times greater than “INS-Net 64.” For this reason, one “INS-Net 1500” subscription is calculated as ten “INS-Net 64” subscriptions (including subscriptions to the “INS-Net 64 Lite Plan”).
	(3)	Number of “FLET’S Hikari (including Hikari Collaboration Model)” subscribers includes subscribers to “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, subscribers to “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Mytown Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West and subscribers to the “Hikari Collaboration Model,” the wholesale provision of services to service providers by NTT East and NTT West.
	(4)	The comparative results for the nine months ended December 31, 2017 compared to the year ended March 31, 2017 for “FLET’S Hikari (including Hikari Collaboration Model)” are as follows: the numbers of new subscribers for NTT East and NTT West were 1,184 thousand lines and 919 thousand lines, respectively, for a total of 2,103 thousand lines; the numbers of new subscribers (excluding switchover lines) for the “Hikari Collaboration Model” for NTT East and NTT West were 840 thousand lines and 602 thousand lines, respectively, for a total of 1,441 thousand lines; and the numbers of switchover lines for NTT East and NTT West were 712 thousand lines and 635 thousand lines, respectively, for a total of 1,348 thousand lines.
	(5)	The comparative forecast for the year ending March 31, 2018 (Forecast) compared to the results for the year ended March 31, 2017 for “FLET’S Hikari (including Hikari Collaboration Model)” are as follows: the numbers of new subscribers for NTT East and NTT West are expected to be 1,700 thousand lines and 1,200 thousand lines, respectively, for a total of 2,900 thousand lines; the numbers of new subscribers (excluding switchover lines) for the “Hikari Collaboration Model” for NTT East and NTT West are expected to be 1,250 thousand lines and 850 thousand lines, respectively, for a total of 2,100 thousand lines; and the numbers of switchover lines for NTT East and NTT West are expected to be 1,100 thousand lines and 1,000 thousand lines, respectively, for a total of 2,100 thousand lines.
	(6)	Numbers of subscribers for “Hikari Denwa” and “FLET’S TV Transmission Services” include wholesale services provided to service providers by NTT East and NTT West.
	(7)	“NTT Group Major ISPs” includes “WAKWAK” and “InfoSphere,” in addition to “OCN” and “Plala.”
	(8)	Number of Mobile Telecommunications Services (including “Telecommunications Services (LTE (Xi))” and “Telecommunications Services (FOMA (3G))”) includes Communication Module Services.
	(9)	Forecasts for the year ending March 31, 2018 have not been changed from those announced in the financial results for the six months ended September 30, 2017.

– 7 –

4. Operating Data

Average Monthly Revenue per Unit (ARPU)

Average monthly revenue per unit, or ARPU, is used to measure average monthly operating revenues attributable to each designated service on a per user basis. In the case of NTT Group’s fixed-line business, ARPU is calculated by dividing revenue items included in the operating revenues of NTT Group’s regional communications business segment, that is, fixed-line (telephone subscriber lines and INS-NET) and FLET’S Hikari, by the number of active subscribers to the relevant services.

In the case of NTT Group’s mobile communications business, ARPU is calculated by dividing revenue items included in operating revenues from its mobile communications business segment, such as revenues from LTE (Xi) mobile phone services, FOMA (3G) mobile phone services and “docomo Hikari” services, that are incurred consistently each month, by the number of active users to the relevant services. The calculation of these figures excludes revenues that are not representative of monthly average usage, such as telecommunications equipment sales, activation fees and universal service charges.

NTT believes that its ARPU figures calculated in this way provide useful information regarding the monthly average usage of its subscribers. The revenue items included in the numerators of NTT Group’s ARPU figures are based on its financial results comprising its U.S. GAAP results of operations.


	(Yen)
	FY 2016												FY 2017												FY 2017 (E)
	Three Months Ended June 30		Three Months Ended September 30		Three Months Ended December 31		Nine Months Ended December 31		Three Months Ended March 31		Year Ended March 31		Three Months Ended June 30		Three Months Ended September 30		Three Months Ended December 31		Nine Months Ended December 31		Three Months Ended March 31		Year Ended March 31		Year Ending March 31 (Forecast)⁽¹⁰⁾
NTT East^{(1)(2)(3)(4)(5)}
Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines)		2,620		2,620		2,620		2,620		2,590		2,610		2,580		2,580		2,590		2,580		—		—		2,570
FLET’S Hikari ARPU⁽⁶⁾		5,340		5,280		5,230		5,280		5,170		5,250		5,120		5,090		5,080		5,100		—		—		5,050
Basic Monthly Charge		3,750		3,720		3,690		3,710		3,670		3,700		3,640		3,640		3,620		3,640		—		—		3,600
Optional Services		1,590		1,560		1,540		1,570		1,500		1,550		1,480		1,450		1,460		1,460		—		—		1,450
NTT West^{(1)(2)(3)(4)(5)}
Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines)		2,580		2,580		2,580		2,580		2,560		2,580		2,540		2,550		2,550		2,550		—		—		2,550
FLET’S Hikari ARPU⁽⁶⁾		5,350		5,300		5,260		5,310		5,210		5,280		5,160		5,110		5,100		5,120		—		—		5,080
Basic Monthly Charge		3,640		3,620		3,590		3,620		3,570		3,610		3,550		3,510		3,490		3,510		—		—		3,490
Optional Services		1,710		1,680		1,670		1,690		1,640		1,670		1,610		1,600		1,610		1,610		—		—		1,590
NTT DOCOMO^(7)(8)(9)
Aggregate ARPU		4,330		4,420		4,450		4,400		4,550		4,430		4,600		4,710		4,720		4,680		—		—		4,670
Voice ARPU (LTE (Xi) + FOMA (3G))		1,240		1,250		1,280		1,250		1,220		1,250		1,330		1,390		1,390		1,360		—		—		1,360
Data ARPU		3,090		3,170		3,170		3,150		3,330		3,180		3,270		3,320		3,330		3,320		—		—		3,310
Packet ARPU (LTE (Xi) + FOMA (3G))		2,960		2,990		2,960		2,970		3,080		2,990		2,970		2,990		2,970		2,990		—		—		2,970
“docomo Hikari” ARPU		130		180		210		180		250		190		300		330		360		330		—		—		340


Notes :	(1)	We compute the following two categories of ARPU for business conducted by each of NTT East and NTT West.
		a. Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines): Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and INS-NET Subscriber Lines, which are included in operating revenues from Voice Transmission Services (excluding IP Services), and revenues from “FLET’S ADSL” and “FLET’S ISDN,” which are included in operating revenues from IP Services.
		b. FLET’S Hikari ARPU: Calculated based on revenues from “FLET’S Hikari” (including “FLET’S Hikari” optional services), which are included in operating revenues from IP Services, revenues from monthly charges, call charges and connection device charges for “Hikari Denwa,” and revenues from “FLET’S Hikari” optional services, which are included in Supplementary Business revenues.
		- “FLET’S Hikari” includes “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, and “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Mytown Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West. In addition, “FLET’S Hikari” also includes the “Hikari Collaboration Model,” the wholesale provision of services to service providers by NTT East and NTT West.
		- “FLET’S Hikari” Optional Services includes wholesale services provided to service providers by NTT East and NTT West.
	(2)	Revenues from interconnection charges are excluded from the calculation of Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines) and FLET’S Hikari ARPU.
	(3)	Numbers of active subscribers used in the ARPU calculation of NTT East and NTT West are as below.
		- Quarterly Results: Sum of number of active subscribers* for each month in the relevant quarter
		- Nine-month Results (from April to December): Sum of number of active subscribers* for each month from April to December
		- FY Results: Sum of number of active subscribers* for each month from April to March
		- FY Forecast : Sum of number of active subscribers* for each month from April to September and sum of the average expected active number of subscribers* from October to March ((number of subscribers at September 30, 2017 + number of expected subscribers at March 31, 2018)/2)x6
		*active subscribers = (number of subscribers at end of previous month + number of subscribers at end of the current month)/2
	(4)	For purposes of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), the number of subscribers is determined based on the number of subscriptions for fixed-line services (Telephone Subscriber Lines + INS-NET Subscriber Lines).
	(5)	In terms of number of channels, transmission rate, and line use rate (base rate), INS-Net 1500 is in all cases roughly ten times greater than INS-Net 64. For this reason, for the purpose of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), one INS-Net 1500 subscription is calculated as ten INS-Net 64 subscriptions.
	(6)	For purposes of calculating FLET’S Hikari ARPU, the number of subscribers is determined based on the number of FLET’S Hikari subscribers, which includes subscribers to “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, subscribers to “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Mytown Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West, and the “Hikari Collaboration Model,” the wholesale provision of services to service providers by NTT East and NTT West.
	(7)	The following is the formula we use to compute ARPU for NTT DOCOMO. a. Aggregate ARPU = Voice ARPU + Packet ARPU + “docomo Hikari” ARPU b. Data ARPU = Packet ARPU + “docomo Hikari” ARPU
		- Voice ARPU: Voice ARPU Related Revenues (basic monthly charges, voice communication charges) / No. of active users
		- Packet ARPU: Packet ARPU Related Revenues (basic monthly charges, packet communication charges) / No. of active users
		- “docomo Hikari” ARPU: “docomo Hikari” ARPU Related Revenues (basic monthly charges, voice communication charges) / No. of active users
	(8)	Numbers of active users used in the ARPU calculation of NTT DOCOMO are as below.
		- Quarterly Results: Sum of number of active users* for each month in the relevant quarter
		- Nine-month Results (from April to December): Sum of number of active users* for each month from April to December
		- FY Results/FY Forecast : Sum of number of active users/expected number of active users for each month from April to March
		*active users = (number of users at end of previous month + number of users at end of current month)/2
	(9)	The number of “users” used to calculate ARPU is the total number of subscriptions, excluding the subscriptions listed below:
		a. Subscriptions of communication modules services, “Phone Number Storage,” “Mail Address Storage,” “docomo Business Transceiver” and wholesale telecommunications services and interconnecting telecommunications facilities that are provided to Mobile Virtual Network Operators (MVNOs); and
		b. Data Plan subscriptions in the case where the customer contracting for such subscription in his/her name also has a subscription for “Xi” or “FOMA” services in his/her name.
		Note that revenues from communication module services, “Phone Number Storage,” “Mail Address Storage,” “docomo Business Transceiver” and wholesale telecommunications services and interconnecting telecommunications facilities that are provided to Mobile Virtual Network Operators (MVNOs) are not included in ARPU calculations.
	(10)	Forecasts for the year ending March 31, 2018 have not been changed from those announced in the financial results for the six months ended September 30, 2017.

– 8 –

4. Operating Data

Number of Employees


	(Persons)
	FY 2016								FY 2017								FY 2017 (E)
	As of June 30		As of September 30		As of December 31		As of March 31		As of June 30		As of September 30		As of December 31		As of March 31		As of March 31 (Forecast)⁽²⁾
NTT Consolidated⁽¹⁾		248,650		248,650		280,600		274,850		280,850		283,400		286,350		—		281,750
Regional communications business		67,400		67,300		73,700		68,250		70,000		70,300		71,450		—		68,250
Long distance and international communications business		45,150		44,450		44,050		43,850		43,850		44,200		44,650		—		44,500
Mobile communications business		27,500		27,450		27,400		26,750		28,150		28,050		27,950		—		27,750
Data communications business		83,200		84,000		109,950		111,650		113,950		115,900		117,350		—		117,000
Other business		25,400		25,450		25,500		24,350		24,900		24,950		24,950		—		24,250
Core Group Companies⁽¹⁾
NTT (Holding Company)		2,800		2,800		2,750		2,700		2,750		2,700		2,700		—		2,650
NTT East		5,200		4,950		4,950		4,850		5,200		4,800		4,750		—		4,650
NTT West		4,600		4,450		4,450		4,400		4,550		4,000		4,000		—		3,900
NTT Communications		6,550		6,450		6,450		6,350		6,400		6,400		6,350		—		6,300
NTT DOCOMO (Consolidated)		27,500		27,450		27,400		26,750		28,150		28,050		27,950		—		27,750
NTT DATA (Consolidated)		83,200		84,000		109,950		111,650		113,950		115,900		117,350		—		117,000


Notes :	(1)	Starting from the nine-month period ended December 31, 2016, “Number of Employees” includes employees whose contracts were changed from fixed-term contracts to open-ended contracts.
	(2)	Forecasts for the year ending March 31, 2018 have not been changed from those announced in the financial results for the six months ended September 30, 2017.

– 9 –

Comprehensive income (loss) attributable to NTT:

For the nine months ended December 31, 2017: 811,781 million yen 38.0%

For the nine months ended December 31, 2016: 588,306 million yen 12.3%

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