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We will now start the briefing of NTT's financial results for fiscal year 2021 third quarter. Thank you for attending. Thank you very much for participating today's session despite your busy schedules. I am Fujiki from the IR office and will be the facilitator today. I would like to introduce today's attending members. Mr. Shimada, representative member of the board, senior executive vice president. Mr. Nakayama, executive officer, senior VP, head of finance and accounting. Mr. Taniyama, executive officer, senior VP, head of corporate strategy planning. Today's briefing session is streamed live. This will also be streamed on our company's website on a later date. Furthermore, NPT DOCOMO will be holding their financial results briefing session after this session, so please attend this also. Today's presentation materials are posted on our company's IR website under the title Presentation Materials. On the first page of the presentation material, points to be considered are stated, so we kindly ask you to please go read through them. After this, Mr. Shimada will explain the outline of the financial results, followed by opening the floor for your questions. Mr. Shimada, please.

Thank you very much, Madam Shimada, the Senior Executive Vice President. Thank you for joining us at this session. Despite your busy schedule, we appreciate your attention. I'd like to start with the financial results for the quarter of fiscal year 2021. I share with you the status of the consolidated results for the third quarter. Please turn to page four of the material. This shows you the consolidated results for the third quarter. We saw year-on-year operating revenue and operating income increase. Operating revenue, operating income, profit all reached record high levels. As for operating revenue, due to increase of revenue at NTT data, this increased 185.2 billion yen year-on-year up to 8,923.2 billion yen. Both this, foreign exchange or currency, had a positive impact of roughly ¥94 billion. Due to the increased revenue at operating companies, including entity data, as well as cost reduction efforts, operating income increased ¥37.3 billion, year-on-year up to ¥1,539.7 billion. Profit increased ¥199.2 billion, year-on-year up to ¥1,030.3 billion. due to profit related to minority shareholders as a result of making Docomo a wholly owned subsidiary firm. Overseas operating income margin improved due to the increase of entity data's revenue as well as structural transformation efforts. As for details, you're probably familiar with the materials, so I would like to page two, page nine. I share with you that the financial results forecast for fiscal year 2021. As I explained, operating revenue, operating income, profit, EPS, and overseas operating income margin forecasts have all been reversed upwards, reflecting strong business results. Operating revenue has been reversed upwards by 180 billion yen, reflecting the announcement of upward revision by Entity Data, which reflect the robust demand for digital services. Operating income was reversed upwards by 15 billion, reflecting the increase in operating revenue. In terms of specific companies, aside from upward revision at Entity Data, we made downward revision for Entity Limited, which I will explain in the following page on page 10 and onwards. Profit will be revised upwards by 15 billion yen due to improved financial profit as a result of decrease in interest payment as well as reduced tax burden. EPS was reversed upwards by 4 yen, reflecting the increase in profit. Overseas operating income margin was reversed upwards by 0.1 point, reflecting the upward revision at NTT data. We believe that the median trust financial target of 7% in fiscal year 2023 is now within the range and within our sight. Please turn to page 13.

As for shareholder returns, as for dividends, it was Approved in today's Board of Directors meeting to increase the year-end dividend by 5 yen over the forecast at the beginning of fiscal year 2021 to 60 yen. Annual dividend per share is 115 yen, an increase of 10 yen over the previous fiscal year. This is a response in lieu of expected increase in income due to a steady progress of this fiscal year's performance against the annual results forecast. As for share buybacks, we have completed the buybacks of 250 billion yen as authorized at the Board of Directors meeting last August. That is all from my side. Thank you very much.

Thank you. We'd like to take your questions now. As we have already informed you in advance, we will accept questions to those of you who have registered in advance and who are connected to the phone conference system at this moment. The operator will now explain how you will take questions for the Q&A session. We will now start the Q&A session. For those of you with questions, please push 0 followed by 1. If you wish to withdraw your question, please push 0 followed by 2. We'd like to go into double securities. Mr. Andal, the floor is yours. Mr. Andal, please. Thank you. This is Andal. Can you hear me? Yes, we hear you, Mr. Andal. Thank you very much. I would like to ask two questions. My first question is about Entity Limited. In the supplementary material, page 70, the supplementary data, I see some numbers with Entity Limited. The other services? shows strong progress, it seems. But when it comes to equipment sales, they seem to be struggling. And Antiti's data is showing strong performance. So how do you see the situation? So based on each service lineup, how do you see the situation for each service lineup? I would like to ask for your explanation. And also, This time around, you're talking about structural transformation, even structural reinforcement of structural transformation. So for impact, how about the forecast for the upward, for the upside impact on profit for the next fiscal year? Thank you. This is Shimada here. I would like to respond to your question. So first, with regard to the situation for the service line, as you pointed out, Mr. Ando, in your question as for value-added services, we... The situation is very strong. For example, with regard to Data Center, the $32 billion increase we see, and that represents a 35% increase of managed services. That represents a 36% increase. As for network-related services, and also for cloud-related services, and cloud-related services, yes, we're still struggling. But for value-added services overall, we see an increase of 80% overall for various services category. Now, on the other hand, when it comes to telecommunication equipment sales and maintenance, well, here, because of the impact of COVID-19 and because of the shortage of semiconductor, we see stress on the supply chain. So that may be the case in particular when it comes to Australia and also India and the APEC area overall, we see very strong impact as a result of these factors. So that may be the case 11% to go on 58 billion yen in absolute terms. So without COVID-19, of course, the equipment sales and maintenance business would have done better, I'm sure. You could have taken time and made efforts to shift to value-added services if we had the luxury of time. But because of the prevailing situation, we have to accelerate streamlining efforts as a result. So that's the basis of our decision this time around. Also, on top of that, with regard to overhead, we need to improve efficiency of the overhead. We want to promote that. So that turns the additional 15 billion structural transformation costs increase. That's the mainstay of this cost increase. Also, in other parts, migration to cloud and also recognition of security is all included. So overall, although we were anticipating structural transformation costs of 28 billion yen initially, but We added 15 billion on top of that, which means that we're going to spend 43 billion overall for structural transformation cost. Of course, based on the recent work, it will be 47 billion based on the recent foreign exchange currency. So this is the level of reorganization cost increase which we will spend to improve our efficiency. Now, we're spending cost for the structural transformation. And from the next fiscal year onwards, What impact will this have on profit? We anticipate that this will be able to improve profit by 26 billion as a result of spreading this level of transformation cost. With regard to structural transformation overall, please, as you see in the supplementary data at NTD Limited, we've We've decreased personnel by 1,850 people. And also, we are employing new people for value-added services. So overall, right now, we've been able to implement personnel reduction by 2,000 overall. So to the extent possible, by the year end, although we will not increase this by double fold, but we're hoping that by the year end, we'll be able to realize streamlining and streamlining rationalization to the extent possible. And with regard to unprofitable services, we want to withdraw from unprofitable services. We are considering withdrawing from unprofitable services. For the time being, as far as the NTT Limited is concerned, for Fiscal Year 23 onwards, we're aiming for 7% operating income margin in Fiscal Year 2023. To achieve this in a certain way, we need to respond to the changes in the marketplace in Fiscal Year 2022. So we're aiming for 2030 target and working towards that. That is all. Thank you very much. Thank you very much. My second question relates to page seven and to the communications group. When we take a look at this data on page seven, we see slight decrease in operating profit as for operating revenue. On a quarterly basis, when we take a look at the quarterly basis numbers, there seems to be up and down on a quarterly basis. So that is the situation. If we take a look at the substance, we find that we are not yet seeing a clear upward trend as far as operating revenue for anti-communication group is concerned. So can you explain to us how you see the situation at anti-communications group? Thank you, Sumata here. Let me respond to your question. So we've got operating revenue. Yeah, there's a decline of $12.4 billion in this category. But you remember that last year, in the first quarter of fiscal year 2020, because of COVID-19, conference-related revenue spiked on a temporary basis. So I think this is a reaction of that. As for operating profit, That's our profit. This is going with the building in. Downtown's first building in. So conference relative revenue is on a downward trend. And also, we are building our new data centers. And as a result, the depreciation amortization cost is increasing because of the build of new data centers. And also, we solution-related operations We see some delay in the offering of solution services. We're receiving orders, but we're not able to execute them. So, therefore, we're not able to reflect that revenue. So, we see that reduction in both operating revenue and operating income. As for the fourth quarter, we'll be able to start offering of new data centers for large customers. So, that will have a positive impact. And also, smart healthcare and smart city-related projects is now in the pipeline. So, therefore, we anticipate revenues from those projects as well. And also with regard to network security and operations, we're going to offer them in an integrated manner. We want to expand solutions in all these sectors. We believe that we'll be able to improve revenue from network-related business. So we believe that we can achieve the annual target. Thank you. That is all from my side. Thank you very much for your response.

Mr. Ando, thank you very much. We would like to take the next question. The next question will be from SMBC, Nikko Securities. Mr. Kikuchi, please go ahead with your question. This is Kikuchi speaking. I have two questions. I'll ask about Docomo later on, so I would like to ask about NTT Limited and dividends. Regarding NTT Limited, due to the lack of semiconductors was included in your explanation. So they're handling network equipment, so I thought there was quite an impact on them. As of the end of March, maybe the impact may expand more is what I think. So numerically, what is the impact and what are you planning to do moving forward is what I would like to know in my first question. This is Shimada speaking. As for NTT Limited, the impact of lack of shortage of semiconductors, the equipment delivery is being delivered, and that is one of the causes of the impact, because if we cannot install, we cannot receive the revenue for maintenance work either. So in that sense, in addition to that, in the Asian area, actually the sales people, due to the lockdowns, they cannot conduct their activities, so there are impacts from COVID. So with the overseas business, on the revenue basis, about 20 billion yen is the COVID impact. As for the shortage of semiconductors, the impact from that, we need to examine it from various angles still. However, as of the third quarter, about 30 billion yen impact is what we think has occurred. Of course, we will continue to keep a close eye on the situation. Thank you very much. By the way, the impact of COVID pandemic, for example, in the other businesses, it seems that it's starting to calm down compared to last year. NTT data, as such, of NTT Communications domestic business also. However, the COVID impact to NTT Limited's business, the reason why it is larger, is there a NTT Limited unique reason? Is it because an equipment fails a model? Does it have a larger impact? How do you look at this? This is Shimada speaking. Regarding the domestic business, we have consulted with our customers and used alternative products. So we have responded quite in a flexible manner so that we will not be that behind the actual delivery date towards our customers. However, in the global supply chain, that type of flexible response is difficult to do, therefore, and also the procurement source is specified. And if that specified supply source is impacted, then the impact that we will incur becomes larger. This is same for NTT data also, but NTT communications and NTT data domestic business. The equipment that we originally wanted to deliver our customers, we have sourced that from an alternative source vendor, and that's difficult to do in the overseas business. Okay, understood. Regarding my second question, this time you have increased the dividend. And I think that has a good impression, and I hope that is reflected on the share price. However, on the other hand, the phenomenon that's happening right now, and I do not know if there's an exact link, but NTT data revised upward, and because the profit was revised upward, the dividend increased. But NTT data actually maintained their dividend. the 25% payout ratio according to their original plan. After the revision upward, it was at 20.5%, and it's maintained at quite a low level. I should say it's deteriorated or declined. On the other hand, your company has a dividend income from NTC data. They are virtual, so NTT itself, non-consulted is going to pay it. The income from NTT data is not increasing, but you're increasing your dividend. I wonder if that's going to be aligned. And also, how does it circulate, the money circulate? it seems that they have a different or unique cash management. By increasing the dividend, what kind of impact will it have on the cash management is my second question, given the situation. This is Shweta speaking. Thank you very much for your concern. First of all, regarding NTT data, whether they will increase their dividend or not, that's a decision left up to NTT data, so I'd like to leave that up to them. Having said that, this fiscal year, As for the overall holdings company, we wholly owned NTT Docomo, and due to that, we experienced a cash increase. And this year, due to the timing of wholly owning NTT Docomo, we did not receive the dividend from them. But the next fiscal year, it is already decided that we will be receiving the full dividend from them. Therefore, cash flow-wise, basically our understanding is that there are no problems. Okay, I see. So the increase of a dividend this time and the entity data's upward revisions and your company's consolidated upward revision, are they linked or not? So you're saying they're not linked. Basically, NTT Holdings Company's policy is that within the medium term plan's original policy, we will have a continuous increase in dividend. And that basic policy is incorporated in this medium term plan. Therefore, as much as possible, based on the situation of cash flow, if it is possible to increase the dividend, we would like to continue that. And that is the way of thinking of the management. Therefore, this fund, that thought has been reflected in the dividend. Okay, understood. If I start this discussion here, it may be longer and it may be complicated, but within NTT Group, NTT data puts priority on investment. Therefore, The dividend or the shareholder returns is kept at a lower level compared to their peers in the industry in Japan. And your company gives that mission to entity data within the group. However, you, as a holdings company, is increasing your dividends. Is that the issue of the parent company and the shareholder? subsidiary company both being listed. How the cash is handled or the profit is allocated, it seems that it is not aligned appropriately, but do you have the same understanding as myself? Well, NTT Data is a listed company. Therefore, NTT Data's dividend policy or capital policy, including share buyback, they should think about what they want to do on their own. However, as a shareholder of them, conveying our thoughts to them, we do such a thing. However, at this point, requesting entity data to increase their dividend, we have not done that. Okay, thank you very much. That is all. Mr. Kikuchi, thank you very much.

Next question, please. Next question from Mitsubishi FJ, Morgan Stanley, Securities, Mr. Tanaka. You have the floor, Tanaka-san. Thank you, Tanaka here. Can you hear my voice? Yes, we hear you, Tanaka-san. Please go ahead. Thank you. I would like to ask two questions one at a time then. The first question is, It goes back to Mr. Ando's earlier question. It's a confirmation of what Mr. Ando asked. At NTD Limited, for this fiscal year, you were anticipating 28 billion yen structural transformation cost, but this reflected foreign exchange could jump up to 47 billion yen. That is what you mentioned. Now, what about next fiscal year onwards? How do you see the situation for next fiscal year onwards? If you talk to the impact of 27 million per annum, if we scrutinize this, so 47 million will be spent this fiscal year. That's the social transmission cost. To what extent we'll be able to reduce the social transmission costs for next fiscal year onwards, and at the same time, what will be the effect of this expenditure? How much impact do you see for the next fiscal year, and what about the year after that? Can you give us those numbers, please? I would appreciate it. Thank you. Thank you, Tanaka-san, for your question. Shimada here. So let me start. 47 million in social transformation costs. This is the temporary cost. So if we spend, let's say that for this fiscal year, let's assume that we withdraw from unprofitable markets and also we suspend unprofitable services. If we don't have to spend cost for that, then we'll be able to recover this amount fully. Now, the 26 billion impact I talked about earlier, So we had the separate measure for this fiscal year, and this is the level of cost which we will no longer have to spend from next year onwards. So that's what we're talking about, $26 billion. $26 billion is the cost we won't have to spend anymore for next fiscal year. So $47 billion plus $26 billion, so that's the added positive impact we anticipate. But at the same time, though, we have the quick change in the market environment, So in response to any changes in the market environment, we'll have to respond at that juncture. So it's not a straightforward calculation. We can't see this as a straightforward return. That is what we think. Okay, I understand. Thank you. So I guess 26 billion impact can be expected. And the forces of leading in this part, I'm sure that you are going to be considering withdrawal from these markets and countries. So the $4,000,000, some costs will have to expense. We can't expect $4,000,000 to have a full positive impact. Yes, that is the case. That is the right assumption. Okay, thank you. I understand. My second question is this. You made a revision. But what about the regional communication segment? You are not revising your forecast for regional communication services. We're going to do the simple calculation for the fourth quarter. Regional communication is going to fall into a negative territory in the fourth quarter, based on your assumption, I guess. Was it too cumbersome for you to make a revision? Or are you ready to spend this level of cost for the fourth quarter in the regional communication segment? That's my second question. Thank you. Shimada here. We'll ask for the fourth quarter. Well, In the second quarter, we reduced the wholesale price for Hikari, so that, in fact, will be solved. And also, systems integration-related revenues. In the second half of 2020, we had telework and online demand. That specified fee will no longer be applicable for the fiscal year. This is very trust-related to remote work-related business. They had additional costs for this segment. And also, they will no longer have the sales proceeds from real estate. So when we take these factors into consideration, we decided not to revise our full year forecast at this juncture. But having said that, so that they can achieve the plan, it's important that these operating companies make the effort. That is our recognition. Okay, thank you. If I could ask about NTTEs. and the zero trust related cost. How much sales proceeds did you have in NTD West last fiscal year? Thank you, Daniela. And with the corporate strategy planning, with regard to the sales proceeds and costs, we're not disclosing that number, but less than 10 billion yen. That is the level that we're talking about. And also, with regard to NTD West real estate property proceeds, it's roughly around Around $5 billion and thereabouts. Thank you. So if it's a zero trust, if you're talking about zero trust, it would be, let me see. Yes, slightly above $5 billion. Okay. So altogether it would be less than $10 billion altogether. Okay, thank you. Got the picture. Thank you very much.

Mr. Tanaka, thank you very much. We would like to take the next question. Next question will be B and A, securities. Mr. Kinoshita, please go ahead. Hello, this is Kinoshita. Can you hear me? Yes, we can hear you. I have two questions also. It seems that the question concentrates on NTT Limited. Very sorry about that. However, this fiscal year, the effect of the structural reforms that is added What kind of a positive effect has come out from the reforms is what I would like to know. That is my first question. The accelerated positive effect, is that going to come out earlier than planned or within the conventional initiatives that you have implemented, is there something that came out with more positive effect? If so, please explain. Are you talking about the effect coming out from the additional cost that we have spent or overall? There's a 3 billion yen of structural reform. It seems that it has a positive impact in the beginning of the fiscal year, so can you please explain the reason behind that? Simply speaking, it's the reduction of personnel cost, meaning that due to streamlining the business, We no longer have to pay the personnel cost. You're saying that at earlier timing you were able to let go of a certain number of people, so it came out this way? We started around December, and that positive effect is starting to show. So earlier than what you have originally planned, then the personnel cost went down by $3 billion. Earlier than what you had planned, yes. So my second question is regarding, this is all about the structural reform too, but accelerating that, you have accumulated the cost required for that. Conventionally, what kind of a structural reform plan you had, I don't know in detail. However, in order to achieve the midterm management strategy, Within the outlook towards that, the structural reforms that required overall cost, did it increase this time, or is it just front-loaded? Can you share what your thoughts about this? This is Shimada speaking. It's not that if we were achieving this earlier than planned, then we should spend time more on stream mining and the existing product sales business, downsizing it. We did originally have that plan. However, as mentioned before, due to the COVID pandemic and due to the shortage of semiconductors, accelerating the process and moving that forward is one thing we are doing. But other than that, regarding the services, For example, the cloud migration and others compared to the conventional timing, we are accelerating it more. Of course, other than this, the IT system integration is done. And, of course, if there's streamlining, we can integrate the officers. and others, and that can be accelerated also. Therefore, in that sense, within those factors, the major one is the streamlining. Sorry, I just want to confirm. Instead of the cost outlook, it's that you have started implementing these measures earlier than planned. Yes. So it's not that additional something has come up that you have to implement the structural reform measures. Correct. There's nothing new that has occurred. It's just that what we have originally thought, it is done earlier than planned and also accelerated. I would like you to understand that in that way. Thank you very much.

Thank you very much. Next question, please. Next question is from City Group Securities, Tsuruhosa. Please go ahead with your question. Thank you for this opportunity. Sudo from City Security. So I'm going to ask two questions. My first question is this. We're going to take a look at the communications and synergy, integration synergy in the last three months. Have there been any updates in the synergy from the integration of NTT Docomo and NTT Comware and NTT Communications? Thank you. Shimada here. I'm sure that Docomo... I would appreciate you directing your question to Docomo in the following session, but as far as the integration between Docomo and entity communication is concerned, although we see, for example, OSE Mobile One being offered at Docomo shops, so that type of sales was launched at Docomo shop. So we see some small progress in a very steadfast manner and they're translating into results. That is our expectation going forward. Now, of course, as far as some major policies are concerned, after this summer, for example, from entity communications, network operation and construction team will be shifting to Docomo. In actuality, already they're working together on the ground, and they're drawing up a plan for the future. So that being the case, in terms of efficiency as a result of integration of communications and entities, and also with regard to sales strategy for the sales group, what was separate in the past are now being brought together as a result of this integration. So study is being considered together as a result of this integration. This represents an update in progress in the last three months. Thank you, I'm looking forward to that. My second question, William, I might be premature, but what about the forecast for the next fiscal year onwards? I'm sure that in the full year session, in the full year presentation, you'll give us number, but can you share with us, to the extent possible, the projections and forecasts for the next fiscal year? We talked about entities limited, so what about other operating companies? To the extent possible, can you share with us your outlook for the performance for the Next is clear. Okay, for one thing, we talked about the impact and effect of the integration of entity communications, Docomo, and Comware. It's important that we translate them into concrete results. For example, this is clear. We had rate reductions through AHAMO. You've seen the impact of that already. This is translating the positive impact for ARPU. And inclusive of the competition, there has been impact. So it's important that we embrace these changes. It's important that we absorb an impact through cost reduction efforts. At the same time, though, it's important that we prepare for such situation, and that is going to be one of the important issues for the company in the next 50 years onwards. In turning to regional communication, we see very strong progress as a result of the streamlining efforts. So that being the case, They're launching new businesses. It's important that these new businesses be nurtured so that they can grow further. Aside from that, at NTD Anode Energy, power business will be integrated, and also real estate business at NT Airbus Solutions. For these businesses as well, it's important that we encourage steadfast growth in these business segments as well. Turning to NTD Limited, If I were to explain a bit further about NTD Limited, we talked about the data center business. We mentioned that there is a 35% increase in revenue for data center business. We see a very robust demand for data center outside the Japanese market. So it's important that we accelerate the growth in this area through our responses. Thank you. That is all. Thank you. That's all.

Thank you very much. We would like to take the next question. Next question will be from Goldman Sachs Securities. Mr. Tanaka, please go ahead with your question. Hello. This is Tanaka from Goldman Sachs Securities. Can you hear me? Yes, we can hear you well. Thank you very much. I only have one question. the structural reform in NTT Limited. Next fiscal year, how much is going to be spent is probably not clear at this point. However, originally in the midterm plan, this structural reform, by accelerating it this fiscal year, to what level have you reached in terms of progress? and how much more you need to do, image-wise is fine, so can you please share that? To what level of the mountain have we climbed? To express that will be difficult, but we have climbed quite a bit, is our understanding. And as I have mentioned before, what entity limited has been covering in business? The area of that is over 80 countries globally. We have been conducting businesses in these number of countries. And within that, of course, there are areas that are profitable. However, business-wise, unprofitable areas that do exist, I cannot specifically name them, but they do exist. Therefore, what are we going to do about these unprofitable businesses is an urgent issue that we need to tackle. And at the same time, Regarding the unprofitable businesses, the area and the unprofitable business needs to be considered as a set, and to where we need to withdraw, we will withdraw, and the areas that we need to take an offensive stance, we will. And therefore, next fiscal year, the issue for us to tackle is to do these things. So I think next fiscal year will be the grand final, finale, of the structural reforms. Okay, thank you very much. Thank you. Next question, please.

Next question is from Limited Securities. Masano-san, you have the floor. Mr. Masano, please. Thank you. Masano from Limited Securities. I've asked several questions. The first question is about domestic enterprise network-related business and the market environment for this business. When you look at the industry, there's very strong demand. and we see an increase in both revenue and income. When it comes to entity communications, that is not the case. I'm sure there are various factors behind this. So that is why you're integrating entity communications with entity Docomo, because of that situation. So after the integration of the functions for the next July onwards, what is lacking in entity communications? And how this will change after the integration in July 2022? How do you see the outlook? So what is missing, and how do you intend to fulfill the missing piece? Thank you, Shimada here. Well, turning to entity communications business. I think entity communications is at a turning point in terms of their business. That is how we take a look at it. Now, if it be a smart data platform, they're working on a smart data platform. So individually, it will not be a straightforward network. They want to combine cloud and AI on top of the network and translate that into platform. And they deliver the services on top of this platform. That is what the customers are demanding already. We already have this smart data platform already. And we want to increase the actual use cases of the customers on top of this new platform. So it's important that we enrich the product lineup. And the product lineup will be changing at this juncture. We are at that juncture. Naturally, as far as legacy services are concerned, they will begin to shrink, which means that we have to add new services on top of the shrinking legacy business and try to pave the way for growth and revenue going forward. And what is important at that time is that we utilize Tokomo's network service, in particular, 5G. The standalone service was launched back in December. So therefore, network slicing and that type of network-related new services will be delivered. So it's important that anti-communications incorporate that in their sales. We believe that This will allow them to shift away from business centered on dedicated lines, switching to new mobile network-based service. So as I mentioned earlier, they'll be able to use the data-driven platform and also combine that with mobile cloud. So they're now at a transition period where the shift is taking place. Okay, thank you. If that is the case, Cloud and mobile will now be integrated. I think that's a natural outcome of this integration. So at last, these services are now in sight. So the issue is more or less how you can actually reinforce your marketing and sales team in order to deliver those services. So that mechanism is going to be within sight. As a result, is that the case? Or do you believe that you have to work further to deliver corporate services together with Docomo? Is that going to take Is that going to take years? How do you see that? How do you see the timeline? Well, already, as far as Togoma is concerned, they already have 5G services, and I believe that they have some 40 projects on the go already in the 5G area. And they want to combine that with solution services offered by NGD Communications, which means that they'll be able to enhance their service and their delivery capability. Okay, thank you. My second question, it's about NTT East and West and the telephony services at NTT East and West, the Home Dela. What retention impact will this have on NTT East and West subscriber customers? If customers shifted to this new service, this should help the cost. So how do you see the last one mile for NTD-Sumos? Can you talk about the long-term outlook for the last one mile for NTD-Sumos services? Masano-san, might I say that that is a very difficult question you have raised? You have raised a very difficult question. Of course. We want to migrate from PSDN to IP network. We already have the plans for shifting from PSDN to IP network. So at the next stage, how are we going to translate or transfer from IP network to the next generation network? That's something that we have to consider. It's a very important issue which we have to consider in the future, shifting from IP to the next generation network. Now, Dokomo is going to be launching HomeDewa. This is more or less... in response to what the competition is offering. We are offering this service because it's whether we counter the services delivered by our competition. So Home Den Law does not represent something that will cover the existing fixed telephony network. That is not how we characterize this product, but as we look into the future, The STNN will be shifting to Appy Network. And what will happen to Appy Network and the services? What will happen to the services with Appy Network? That is an important issue that we need to consider. It's important that we scrutinize this matter. Okay, thank you very much. If I could ask just one more question. It's about your overseas business. You've been spending 10 years. You have been spending labor and cost for the last 10 years in this segment. And you've been pursuing social transformation repeatedly. Are you saying that this will be the last effort for the next fiscal year? Maybe. Wouldn't that be better for the management of a company to just focus on data center? Wouldn't that translate into better returns rather than focus on overseas business? So do you believe that you'll be able to restructure the overseas business as a result of the structural transformation cost? Well, as far as entity limited is concerned. And so combining... Well, we are competing on a full-stack basis by combining anti-limited services with anti-data services. Of course, as far as anti-limited is concerned, it's for data center business. They're now positioned as number three player. So it's important that we expand and reinforce that position. At the same time, with the Garciati backbone network, it's important that we be able to maybe among the Tier 1 players, Tier 1 members are very small in number. We have that strength. So it's important that we reinforce the strength that we have. At the same time, it's important that we provide services that the customers require. That's very important. So Mr. Masano, you pointed out about the need to focus on specific service in your comment, but But we have to fully respond to any requirements which the customers ask of us. We have to fully respond to the customers. So we continue to reinforce our services going forward. At the same time, it's important that we also want to tackle new challenges as well. Thank you. So anti-limited. Will the work with anti-limited be completed for next fiscal year, during next fiscal year? I do think it's... His efforts for the transformation will be completed. We'll do our best. Thank you.

Thank you very much. We would like to take the next question. Okasan Security, Mr. Okumura, go ahead with your question. Thank you very much. My name is Okumura from Okasan Securities. Can you hear me? Yes, we can hear you. Thank you very much. I'd like to know about two things about NPT Limited briefly. Sorry, I was not joining from the beginning, so sorry for the overlap. The high added value of products for the three quarters, can you share with me that impact on the profit? And without that, it is increasing from the second quarter is my understanding, but even though there's a shortage of semiconductors, you did talk about the data-centered, but data center and managed services. Can you elaborate more in detail? That's my first question. Regarding the high value added service increase was 52.3 billion and out of that, the foreign exchange impact is about 20 billion. Thank you very much. The two quarters accumulated is $15 billion, so the third quarter is $5 billion. So even though years have trapped that, the profit did increase quite a bit. Is that understanding correct? Yes, thank you very much. And also, another point I would like to ask, the high-value added services of NTT Limited, Order received amount, you probably know money amount, you know that. I would like to know about that situation. NTT data, through the structural reforms, they have a positive impact in terms of the orders received. So for NTT Limited, are you seeing any signs of changes in the positive way moving forward looking at the orders received? This is Taniyama from Corporate Strategy and Planning. Regarding the order received situation for NTD Limited, as explained, the data centers are performing strongly and increasing. And as for managed services, ear-on-ear basis, they're experiencing an increase. As for network, unfortunately, ear-on-ear, it is showing a decline. So the overall value-added services due to The data thinking being the driver overall, it is increasing. Thank you very much. Thank you very much for the detailed explanation.

Thank you. That seems to be all the questions. As we are running out of time, I'm afraid we will have to conclude the session. So that completes the process of the third quarter results for fiscal 2022 entity holding company.