Nippon Telegraph & Telephone (NTT)

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.