Appendix. June, 2012

Transcription

1 Appendix June, 2012

2 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 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 es, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein, as well as other risks included in NTT s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission. * E in this material represents that the figure is a plan or projection for operation. Appendix (June, 2012) 1

3 Broadband Access Services in Japan Fixed Mobile ~ ~ Access speed DSL 7.1M subs NTT market share 35% ~50Mbps FTTH 21.9M subs NTT market share 74% ~1Gbps CATV 5.9M subs ~160Mbps Mobile etc M subs including NTTDOCOMO LTE subs approx.2.2m NTT market share 46% ~75Mbps Public Wi-Fi ~54Mbps (Note1) Access speeds shown are numbers used for commercial purposes, and are the maximum output speeds achievable within the framework of the respective best effort services. (Note2) Mobile etc. includes subscriptions of data communications services plan, and those of WiMAX. (Source)Fixed accesses are MIC data (as of the end of Dec. 2011), Mobile etc. is TCA data (as of the end of Mar. 2012). (Some figures are based on financial results materials of the companies.) Appendix (June, 2012) 2

4 Broadband Service Monthly Charges -Triple Play- ADSL FTTH CATV Service NTT FLET S ADSL (Max. 47Mbps) [NTT East + Plala + subscriber telephone] NTT FLET S Hikari (Max. 200Mbps) [Plala Hikari mate with FLET S + Hikari Denwa + Hikari TV] For Single-Dwelling Units For Multi-Dwelling Units *6 J:COM (Max. 160Mbps) [J:COM Tokyo] Total Monthly Charge *1 (Breakdown of Total) Multi-Channel VOD 5,890 yen + call charges (no video services available) 9,000 yen + call charges [67 channels] *2 3,000 yen *4 7,600 yen + call charges [67 channels] *2 9,048 yen + call charges [79 channels] *2 High Speed Internet IP Telephony Basic Charge 3,000 yen*4 4,190 yen *3 5,500 yen *5 3,650 yen *7 1,700 yen + call charges 500 yen + call charges 950 yen *8 + call charges 9,048 yen + call charges (Package price) *9 (Reference)Each company s corporate website (as of May 24, 2012) Charges do not include consumption taxes. *1 Lowest monthly charge after applying bulk discount. *2 Option channel is excluded. BS digital broadcasts Include. *3 Modem rental charges (modem + splitter) are included. *4 Charge for multi-channel services. Tuner rental charges are included. Hikari TV also provides VOD flat rate services. *5 In case of a discount plan ( Ninen-wari ). On the condition that the service is used for two consecutive years. *6 In case of VDSL method. *7VDSL rental charges are included. *8 Hikari Denwa router rental charges are included. *9 In case of a discount plan ( Otoku-plan ). On the condition that the service is used for two consecutive years (or one year for apartment type) and paid using a credit card. In other case, 10,790 Yen/month + dialing charge Appendix (June, 2012) 3

5 Penetration of video services Million subscriptions 0.21 mil net-adds/year J:COM Hikari TV + FLET S TV 3.59 Hikari TV Service also available on smartphones and tablet PCs Hikari TV + FLET S TV: approx mil net-adds/year Tuner (STB) TV TV with Built-in tuner Hikari TV: approx mil net-adds/year Smartphones, tablet PCs (Android,iPhone, ipad) PC/NotePC /3 2009/3 2010/3 2011/3 2012/3 2013/3E (End of Year/month) Car Navigation (Planned) (Reference)Jupiter Telecommunications Co., Ltd corporate website Appendix (June, 2012) 4

6 Launch of FLET S Hikari LIGHT Launched FLET S Hikari LIGHT to further expand the use of FTTH broadband services (NTT EAST:June, 2011, NTT WEST: January, 2012) Image of charge structure (NTT EAST) Monthly charges 5,800 yen FLET S Hikari NEXT -Family type- *Charges are before taxes. ISP charges are not included. 5,800 yen 5,200 yen FLET S Hikari LIGHT 2,800 yen Metered charge 30 yen /10MB Minimum charge 2,800 yen 200MB 1GB 1.2GB Communication Volume/month (Note) Image of charge structure (NTT WEST) (When ) : Minimum charge is 2,800 yen (Up to 200MB), metered charge is 28 yen/10mb, and maximum charge is 5,600 yen (When exceeding 1.2GB). Appendix (June, 2012) 5

7 Measures taken for retaining FLET S Hikari subscribers (NTT EAST) Measures taken in 2012/3 Measures to be taken in 2013/3 onwards Launched FLET S Hikari Light for single-dwelling units. (June 2011) Effective in increasing the number of new subscriptions and in retaining current subscribers. Plan to introduce new FLET S Hikari Light Apartment Type for residents of multi-dwelling unit apartment complexes. (Autumn, 2012) Monthly charge FLET S Hikari Apartment Type (fixed-price service)* FLET S Hikari Light Apartment Type Volume of data communication/month *Charges may vary depending on the size of subscription in each multi-unit apartment complex. Launched Ninen-wari, a monthly charge discount service (Mar, 2012) Monthly charges * (excl. tax) 6,900 yen 6,200 yen 6,100 yen 5,960 yen Ninen-wari: 700 yen discount Automatic renewal 100P /month 200P /month FLET S Hikari Member s Club Points 1 st year Ninen-wari renewal points 1000P 2 nd year 300P /month 3 rd year Family Type Automatic renewal Ninen-wari renewal points 1000P 400P /month 4 th year 500P /month 5 th year FLET S ADSL More Ⅲ 6 th year onwards *Includes Hikari Denwa (500 yen) and ISP (1,200 yen) usage charges No. of years of subscription Aiming to achieve 50% penetration of Ninen-wari by the end of March Charging of FLET S Hikari installation fees in full amount. (Prior fees had been discounted to campaign prices) Offering both a single payment option and installment payment option (24 installments) for installation fees. Implemented a discount campaign for new customers, offering discounts on monthly charges for 24 months. Image of Campaign Implementation(For FLET S Hikari Next Family (5,200 yen)) (excl. tax) 1 st month 2 nd to 25 th month 26 th month onward Ninen wari yen discount 700 yen discount Installation Fee (installments) - 1,000 yen - One month free campaign 2 year discount campaign: 1,000 yen discount Achieved charges on par with ADSL charges by combining Campaign - Ninen-wari and FLET s Hikari Member Club Points Total charge 0 yen 4,500 yen 4,500 yen (Customer loyalty program). (Note) Installation fee when indoor wiring work is required (24,000 yen) Appendix (June, 2012) 6

8 Overview of Optical Service Facilities (Split Branch Method) One subscriber per one fiber line Maximum of 8 subscribers per one fiber line Maximum of 32 subscribers per one fiber line NTT building 1 8 branches 2 4 branches 3 OSU NTT IP network Customer premises (NTT East or West) ONU Duct OSU Other providers IP networks Customer premises (other providers) Optical Splitter (outside NTT building) Optical Splitters Fiber optic cable (inside NTT building) OLT/OSU Other providers equipment Splitter (outside NTT building) Splitter (inside NTT building) OLT (Optical Line Terminal) OSU (Optical Subscriber Unit) Appendix (June, 2012) 7

9 Schedule for PSTN (Core Network) Migration Services to be terminated in conjunction with the migration will be phased out sequentially after providing adequate notice to users and efforts to promote a shift to alternative services during the period from now until around Services to be terminated prior to the migration will be phased out by around 2020 after providing adequate notice to users and encouraging a shift to alternative services in conjunction with the timing of service termination. IP network interconnection will be implemented in stages upon coordination with other es circa 2015 circa 2020 circa 2025 Services Interconnection Broadband services Services to be terminated in conjunction with migration Services to be terminated prior to migration Notify users about services to be terminated Shift to alternative services Notify users about services to be terminated Shift to alternative services Promote the use of broadband services Phase out services Coordinate with other involved es Concerning IP network interconnectivity Implement IP network interconnection in stages Phase out services Migration from PSTN (core network) to IP network End of useful life of PSTN switchboards Appendix (June, 2012) 8

10 Smartphones and Tablets (Product Lineup for summer 2012) F-09D F-11D P-06D SH-07D docomo tablet docomo Raku-Raku PHONE Raku-Raku Smartphone F-12D Appendix (June, 2012) 9

11 NTT DOCOMO s Market Share of Smartphone Sales Changes in market share of smartphones sold at mass retailers (Source:GfK Japan) Market share comparison by OS Market share comparison by carrier 100% :DOCOMO :Other carriers 80% Other OSs 29.1% 60% Android 70.9% 40% 45% 53% 35% 50% 20% Fiscal year ended 2012/3 (Apr.2011~Mar.2012) 0% DOCOMO s market share Full year : 46% 1Q 2Q 3Q 4Q Fiscal year ended 2012/3 (Apr.2011~Mar.2012) (Note) Market share distribution among devices carrying any of the 4OSs (Android/iOS/WindowsMobile/BlackBerry) in the mobile phone category. Based on survey of track record of sales at major mass retailers across Japan by Gfk japan (Tablet devices not included) Appendix (June, 2012) 10

12 Xi crossy (LTE) Area Expansion Plans Population coverage : 30% at the end of Mar, Expand to approx. 70% by the end of Mar, 2013 Start providing Mbps download service in limited areas within 2013/3 Area expansion 2013/3E No. of of base stations: 21,000 Population coverage: 70% CAPEX: billion yen 2013/3E 70% Population coverage 2014/3E 80% 2015/3E 98% Bring forward/accelerate area deployment 2012/3 30% Initial Plan at service launch: 40% Major cities Prefectural capital-size cities Local cities All municipalities Max. Throughput 75Mbps 112.5Mbps * (Fiscal year ended/ing March 31) 2012/3 Appendix (June, 2012) /3E 2014/3E 2015/3E 2016/3E * Nationwide support of 112.5Mbps planned to start in FY2015/3 or thereafter.

13 ARPU of Mobile Broadband Services 2012/3 aggregate ARPU: 4,870 yen (-3.9% year-on-year) Packet ARPU: +130 yen (+5.1% year-on-year) (Yen) 8, /3 Aggregate ARPU 5,070 yen ( 5.2% YoY) Voice 2,530 yen ( 12.8% YoY) Packet 2,540 yen (+3.7% YoY) 2012/3 Aggregate ARPU 4,870 yen (-3.9% YoY) Voice 2, yen (-13.0% YoY) Packet 2,670 yen (+5.1% YoY) 6,000 5,190 5,200 5,130 4,760 4,960 (4,970) 4,970 (5,010) 4,880 (4,940) 4,680 (4,790) 4,570 (4,910) 4,000 2,680 2,660 2,590 2,190 2,340 (2,350) 2,280 (2,320) 2,190 (2,250) 1,980 (2,070) 1,690 (1,990) 2,000 2,510 2,540 2,540 2,570 2,620 (2,620) 2,690 (2,690) 2,690 (2,690) 2,700 (2,720) 2,880 (2,920) 0 Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar. 2013/3E 2011/3 2012/3 (Note) Numbers in parentheses indicate the ARPU amounts excluding the impact of Monthly Support discounts. Appendix (June, 2012) 12

14 Changes in Consolidated Operating Revenue Consolidated Operating Revenue 10, , , , , ,750.0 (billion yen) Regional communications 10,000 4, , , , ,764.8 Long distance and international communications Mobile communications 1, , , , ,678.7 Data communications Other 5,000 4, , , , , , , , , , (Fiscal year ended/ing March 31) 1, , , , , /3 2009/3 2010/3 2011/3 2012/3 2013/3E (Note) Business segment operating revenues include intersegment transactions Appendix (June, 2012) 13

15 Changes in Consolidated Operating Income Consolidated Operating Income 1,500 1, , , , , ,280.0 (billion yen) , Regional communications Long distance and international communications Mobile communications Data communications Other 0 (Fiscal year ended/ing March 31) /3 2009/3 2010/3 2011/3 2012/3 2013/3E (Note) Business segment operating revenues include intersegment transactions Appendix (June, 2012) 14

16 Financial Impact of the Great East Japan Earthquake Close to previously forecasted figures, NTT Group s consolidated loss due to the effects of the earthquake in 2012/3 was 33.0 billion yen and CAPEX was 30.0 billion yen. (Billion yen) Profit/Loss CAPEX 2012/3 (Full year) Forecast 2012/3 (Full year) Forecast NTT EAST NTT DOCOMO Others NTT Consolidated Appendix (June, 2012) 15

17 Share Buy back Cancellation 1 Buy back 1 Cancellation 2 Buy back 2 Treasury Stocks 251mil. shares <15.9%> (*1) Gov t Owned Shares 530mil. shares Cancellation -125 mil. shares 125mil. shares 125mil. shares 58mil. shares 58mil. shares Excess Minimum Gov t Holdings Excess for Gov t Owned Minimum 58mil. shares Owning <37%> Holdings Shares for Gov t 42mil. shares <36%> (*2) Owning 473mil. shares 431mil. shares <33%> <33%> 473mil. Shares <33%> Cancellation -125 mil. shares <>:share holding ratio 99mil. Shares <7.5%> Gov t Owned Shares 431mil. shares <33%> Mar. 31, 2010 Nov. 15, 2010 Jul. 5, 2011 Nov. 15, 2011 Total number of shares issued (million shares) 1,574 1,449 1,323 Feb. 8, 2012 (Note 1) The basic policy on cancellation of all treasury stock owned by NTT as of March 31, 2010 (approx. 250 million shares) was resolved in May 2010, and one-half of such shares was cancelled in November The remaining half was cancelled in November (Note 2) Mandatory (minimum) number of shares to be held by the Government under the NTT Law = (total number of shares issued-30 million shares issued at the IPO in 2000) 1/3 *The number of shares issued after the initial listing are not to be included in the calculations. (NTT Law, supplementary provision 13) Appendix (June, 2012) 16

18 Changes in Number of Employees Consolidated no. of employees 193, , , , , , , ,000 91,566 85,876 78,700 Regional communications 150, ,000 50, ,679 13,177 22,100 22, ,236 98,697 13,923 14,176 21,831 22,297 31,238 34,543 29,330 22,954 49,991 31,162 23,289 58,668 32,800 22,800 61,050 Long distance and international communications Mobile communications Data communications Other 0 (End of year/month) 25,283 25,068 25,269 25,502 25,244 27, /3 2009/3 2010/3 2011/3 2012/3 2013/3E Appendix (June, 2012) 17

19 Age Distribution of Employees at NTT East, NTT West and Outsourcing Companies (As of March 31, 2012) 8, years old Number of Employees 6,000 4,000 2, Age (Note) Figures for East Outsourcing Companies include the consolidated prefectural outsourcing companies (incl. NTT EAST-TOKYOMINAMI), NTT-ME and NTT EAST SOLUTIONS, while figures for West Outsourcing Companies include the consolidated regional outsourcing companies (incl. NTT WEST-KANSAI), NTT MARKETING ACT (outsourcing company in the management and marketing field), NTT NEOMEIT (outsourcing company in the facilities and equipment field). Figures for those companies include the number of employees who retired or will retire at the end of a fiscal year and who were rehired or will be rehired at the beginning of next fiscal year. Appendix (June, 2012) 18

20 Highlights by Segment (Finance and Operation Data) Operating revenues (consolidated):10,507.4 billion yen Operating income (consolidated): 1,223.0 billion yen No. of employees: 224,239 No. of subsidiary companies: 772 * Percentage figures show the percentage of voting rights (March 31, 2012) 100%* 100% * 100% * 100% * 66.6% * 54.2% * NTT East NTT West NTT Communications Dimension Data NTT DOCOMO NTT DATA Other group companies Regional communications Long distance and international communications Mobile communications Data communications real estate, finance, construction and power Other Operating Revenue: Operating Income: No. of Employees: No. of Subsidiaries: 3,764.8 billion yen 86.9 billion yen 86, ,678.7 billion yen billion yen 31, ,240.0 billion yen billion yen 23,000 (Note) Financial year ended March Operating revenue and operating income of each segment include intersegment transactions ,251.8 billion yen 71.5 billion yen 59, ,089.0 billion yen 56.9 billion yen 25, Appendix (June, 2012) 19