Nippon Telegraph & Telephone (NTT)

From now, we would like to start the press conference on the financial results for the three months ended June 30th, 2026 of NTT Inc. Thank you very much for gathering despite your very busy schedule. I will be serving as MC from Public Relations Department, NTT Inc. My name is Ichihashi. Let me introduce the attendees today. At the beginning, President and CEO, Representative Member of the Board, Akira Shimada, Senior Vice President, Head of Finance and Accounting, Toshihiko Nakamura, Senior Vice President, Head of Corporate Strategy Planning, Akitoshi Hattori. These are the three members. As for the materials for today, they are uploaded on our official website at 1.30 p.m. We will start the conference.

Shimada-san, the floor is yours.

Thank you very much for sparing your precious time. I will be busy scheduled to attend this meeting. This is for Shimada, President. First and foremost, Our deepest sympathies go out to everyone affected by the recent Kumamoto earthquake and their families. We are fully committed to restoring services and supporting recovery efforts as quickly as possible, working in close cooperation with telecom companies and local governments to restore communication infrastructure and assist affected areas. Although mobile services were disrupted in two municipalities, they were restored within approximately two days. During this period, we work to maintain connectivity through measures such as the rapid implementation of Japan Rail Link. We are also continuing to provide support at evacuation shelters through the Tsunagu Kakeru Project, collaborating with telecom companies and battery manufacturers. We remain dedicated to contributing to the earliest possible recovery and risk construction. Now I will proceed with the explanation of our financial results of the first quarter of this fiscal year. Overview of consolidated financial results Increase in both revenues and income year-on-year Operating revenues reached new record high levels Operating revenues increased by ¥355.7 billion to 3 trillion 617.7 billion yen driven by the data group they were overseas and the domestic business group as well as the smart life business were increased centering around the finance of Dokomo. And out of this increase, foreign currency impact positive 75 billion yen. Profit despite the cost related to Dokomo customer base enhancement and network quality improvement Growth in Smart Life Business Profits and Business Growth Updated Group It increased by 34.8 billion yen to 836.2 billion yen. Open profit was up 20 billion yen year-on-year and was 425.1 billion yen. To achieve full-year plan, we are committed to work to expand enterprise business both at home and abroad and expand smart life business. Net profit was driven by the increase in operating profit and others and ¥274.8 billion up ¥15.1 billion by segment. In all of the segments, a deliberate growth both in revenues and profit. Integrated ICT business segment, despite the cost spent for reinforcing customer base and improving network quality, As a result of Customer-Based Enhancement Initiative and others, well, smart light business expansion resulted increase in revenues and profits YOY. And as a result of Customer-Based Enhancement Initiative, MNMP performed strongly and improved from the previous year. Dopamers have been selling well and resulted in upward improvement. and the rate of decline in mobile communication services revenue decreased steadily against the previous year and we aim for the turnaround to increase revenue year-on-year. Global solutions business segment. In addition to business growth in Japan and overseas increased due to foreign exchange impact Both revenues and profit increased in your year. Regional communications segment. And though legacy business revenues declined, increase in Hikari business revenues resulted in increase in revenue in your year and profit remained at almost the same level as that of last year. Net increase in Hikari service was almost at the same level as that of the previous year. and others about real estate and energy. Growth in real estate business of urban solutions led to increase in revenue and profit year on year.

Next, I would like to move on to explain four topics starting from the global expansion of IOWN to further drive IOWN business. With the support of government, we accelerate service deployment globally in Chile,

and many more.

Survey and demonstration to advance remote operations of heavy machinery through ion APN has begun at Kodelco operated copper mines to solve issues such as working environment improvement. In India, A feasibility study aimed at improving energy efficiency of data centers in India through the deployment of switches incorporating photonics electronic convergency by the SPEC-2 has begun to achieve power saving large-scale distributed processing with financial institutions and other partners. Going forward, we will continue to expand use cases in various countries and industries steadily Thank you very much. Thank you very much. experienced the use of distributed GPU resources. Low latency, high volume connectivity, and distributed GPU resources across eight nationwide locations enable verification of advanced AI load, including distributed AI training, distributed AI inference, and high volume data transfer between sites. Through provision of real-world environment, we will accelerate the realization of AI-owned through customer co-creation, generating new use cases and practical expertise. Thirdly, I will explain the initiatives for sustainable operation of social infrastructure. In social infrastructure including water, wastewater, and waste management, Aging infrastructure and labor shortages are getting serious and new mechanisms for sustainable operation is expected. To solve this issue, NTT will promote operational efficiency through DX at water and wastewater treatment plants through business alliance with Meta Water. At this juncture, we acquired MetaWater's shares to build long-term collaborative relationships. Furthermore, Building on this initiative, we will aim for the achievement of cross-sector, wide-area social infrastructure management services through deployment in areas such as renewable energy, roads, and disaster resilience and contribute to building sustainable social infrastructure along with the municipalities and communities. The progress under medium-term management strategy since May is as shown here. That concludes my explanation. Thank you very much for your attention.

We now like to take questions from the members of the press. First of all, we would like to start by inviting questions from the reporters present here at the venue. If you have a question, please raise your hand. Our staff member will bring a microphone to you. Please state your company name, media, and your own name before asking your question. Due to time constraints, we ask that you limit your questions to two per person. If you have two questions, please state them both at the same time. We now like to take questions. And from me on the left side in the second row and the reporter in gray suit, Kobayashi from Yomiuri Shimbun, Dokumo Financial Group, Thank you for the question. As Kobayashi-san has just mentioned, and as of the July the 1st, Dokomo Financial Group was launched. And banking, securities, All these were the so-called across the financial sector comprehensive services are now being well available. And with this making it a very well big starting point and deep point could also be combined together and to really offer a very robust and strong, well, financial services. And so we have come to a stage whereby we will be able to build even a more reinforced distribution platform. And the major one is the banking arm. And, well, Odokumo, well, SMTB is the set of the name. But the law, it is named under the Dokumo. And this will banking function. is drawing much attention and expectation. And so while there are approximately 2,000 dokumu shops, and currently as of the end of August, the 200 shops will be able to really well provide support to the opening of the bank accounts as well as securities. And so other than the dokumu shops, We will have 80 shops which would be able to really offer the support. And by the end of this year, we would like to really have the facilities amounting to 1,000 to really provide the various support for these financial functions. And we are really going to have 50% of them to be were able to provide the support from demand really well outlets. And so that is what we would like to really well see achieved by the end of this fiscal year. Thank you. The next question, please.

The person at the back. Takagi from Sanken Shimbun. I have two questions related to the response to Kamamoto earthquake as for the damage. There seems to be some damage in the gomo business and also in the mobile phone business compared to the past. It was a rather minor damage. It's not possible to have a simple comparison. But what was the factor for mitigating the disaster impact? And now, collaborating with the four companies, I believe you had a good benefit over Japan roaming. And what went smooth? And did you have any challenges? Thank you for the question. This was seismic. There were impacts in two cities. We partially used Starlink, and over two days, we were able to recover at an early stage, just spending two days. Intra-prefectural network and extra-prefectural network, we have operations, and that is related to the cables on the bridges. But the bridge was damaged, and as a result of that, the connection was cut. And now we are diverting to ensure the connectivity. So in terms of the communications, we do not have any issue on the fixed line. So from that perspective, at an early stage, we were able to provide services. Compared to Noto Peninsula earthquake, it was peninsula, so in order to recover, To secure the route for recovery, there were challenges, but this time, in order to recover and restore the environment, the conditions were better. Along with that, Japan Roaming, each company is using Japan Roaming, so we were able to extend support and with the connectivity project, We did a coordinate which areas to support, and we have divided the responsibilities amongst the four companies, which ensure the efficient support. Along with that, mobile battery. With the support of the battery manufacturers, at an early stage, we were able to provide mobile batteries. So from that perspective, Broad area support structure was ensured, which was good for the company. This should work well, and this earthquake, we would like to reflect, and we would like to prepare for the other earthquake that may arise in the future. We would like to move on.

Just in front of us, Ishimizu from Nikkei. And in July, and well, you are really going to have this, have the issuance of the foreign, what can we say, nominated bonds of 1.6 trillion yen. I think, well, when I really well met in May, and well, we had this, well, the, well, Thank you very much. Thank you very much. and other two rating agencies in Japan. They are maintaining the same rating. Virtually or substantially, there's not much of the impact. The interest rate is 0.1% or so. It's not really up to 0.1%. That is the level of the impact. It's a very moderate impact. And basically speaking, we can say that we are free from the impact. And triple B, even with that, because the outlook is stable, so going forward for the CAPEX in our businesses in the future, and also the equity participation or the investment. There is no particular issues related to this in this context. Did I answer your question? Thank you.

Miyoshi from NHK. I have two questions. The first question Mobile Communication Service Revenues You were able to shorten the level of decrease in revenue and you have announced a new plan with respect to the rate plan A revision of the existing plan. Are you planning to have any plan for revenue increase? That is the first question. Mobile communication service revenue, thanks to your support, consumer communications, last year was roughly 14 billion yen plus reduction in revenue, but this year, This will be explained by Dokomo, but it was 1.4 billion decrease in revenue, about the one-tenth, so we believe that this has bottomed. So from that perspective, ARPU is increasing, and this time we saw the increase by ¥70, and MNP is also working positively, and with 3G suspension, this is impacting, but overall we are seeing the recovery. But on the other hand, as you said, labor costs and expenses, They are increasing overall. So at Dokomo, at certain timing, cost should be borne and also there is still 20% increase and there is a decrease of the capital expenditure for traffic. So we just need to make sure to cover that and that should be reviewed further by Dokomo. Ahamo 30GB and there is addition of 10GB to 30GB and this is from marketing perspective and since there is a heightened need from the perspective of the customers, Once they use, and we wanted to wait and see what the reactions are from the customers, so we would like to make sure to see that in the future. Thank you. And I have another question.

I'm sorry to ask about the competitors.

SoftBank will make the investment. Seven and I and PayPay and ID integration will be promoted. With respect to telecommunication operators, points, payment, strengthening of the collaboration is in progress. And once again, for you to differentiate, what are your strengths? You mentioned about Dokomo Financial Group. But once again, what will be the uniqueness or the differences in order to expand your ecosystem? With respect to the convenience stores, we are, in principle, open to them. With Seven and I, we have a closed Collaboration to do business. So from that perspective, for example, Lawson, when KDDI made investment that this was the case. But if you think about the convenience of the customers, all of a sudden unable to pay in the barai may not be good for the stores. So up to now, Seven and I, Lawson and Family Mart, It's possible to accumulate and also use D-Points, but that was not the case for 7-11. So with the capital partnership with SoftBank, from customers' perspective, it would be helpful if D-Points can continue to be used from the perspective of the customers. From ID and a marketing perspective, Locomall itself has alignment with customers and a marketing company called Karta. So Seven and I collaboration would be SoftBank, PayPay, And other than that, there is even more extensive collaboration, so I don't find any impact. Thank you.

Next, at this point in time, we would like to take questions from journalists participating online. You can submit your questions via voice or chat. And for voice questions, please press the Ask a Question by Voice button on the right side of the screen and select your microphone device, and then press the Raise Hand button and wait, and we will call on you. So please speak when available to ask a question. It's displayed. And for chat questions, please press the Chat button on the right side of the screen, type in your question, and press the Send button. Are there any questions? Well, at this juncture, we don't seem to have questions from journalists participating online, so we would like to go back to the venue. And those of the media reporters at the venue, if you have any questions, please. Nakao from Kyodo Tsushin, thank you very much for your explanation. And I have two questions. The first question, a very detailed question. And earlier, Shimada-san, at the outset, Docomo Financial Group and the Docomo shops, which are going to be able to really support the financial Then you're really going to increase this number up to 1,000 by the end of this year or fiscal year? By the end of fiscal year. And also, I think, well, you are really going to accelerate achievement of this kind of target number. And are there any background factors to support that? And also, what was the sort of leadership being played by the holding side? So that is the very first question. I'd like to really respond to this part. And Dokomo, well, they were not really saying that they are really going to move slowly in any way, but when the press conference was made for the financial group, and they were really talking about what they would like to really achieve. It's not that we have pushed them to really work faster, but that was really well being the case. Sorry. I was not really well confirming very well in the book. And so on a different note, an economic policy promoted by Takaichi administration, and this time around, and in terms of the growth strategy and basic policy and all these were government related policies have been well formulated and so AI and IT and space and so very well practice for investment is going to be made. That was really decided by the government and also I think it's an expansionary monetary policy. It will be adopted. And also, we have seen quite a big movement in terms of the Uyghur Yen. And so that is the movement in the market. And so vis-à-vis the general policy of the administration, what is your take on that? and also in addition to that, because of the rate hike, well, probably the funding might become more difficult. And so as for the interest rate, any request or demand that you have for the current administration? First of all, and what is being promoted by the Takaichi administration and the 17 core areas and so we are to be really engaged and because once again in order for Japan to really revive, I think these are really essential in our view and in that context, and we are really well called and we have given the opportunity to really explain on our part and also mainly AI was the main topic and so the world network to really well connect this world AI through APN and to really well support that Well, you may need to have the distributed authority sort of dual power and supply. And, well, on the other hand, in terms of economic security perspective and marine cables, Well, both in Japan and also the overseas, well, we may have to really pay really much attention and make efforts to do that. And so these are the challenges. And we hope that the government is going to take the leadership and we, on our part, would like to be engaged in a sufficient manner. And so, first of all, from... All the way, we have the APN. Also, between data centers, we do have all these installed. and all the way to the outside of Tokyo in the outlined regions. We may really have to have all these being installed. And so I think something that should be really looked at from the legal perspective and also we have to take care of that and to really provide the sort of system or organization whereby we'll be able to provide the adequate support. And I think that will serve as the platform and foundation for further growth. And so, in terms of the industrial policy, well, I think it is really important for the infrastructure to be developed. Now, as for the monetary policy, I am not in a position to say anything about that, but if the inflation should be well controlled, and then, well, it is a common sense that rates should be well controlled, Thank you for watching. So that inflation would not be more accelerated and also the foreign currency exchange rates were hopefully to be more stabilized and so it would not really be volatile and fluctuating too much. Did it answer your question? Any other questions, please?

The person to the left, the third row, my name is Suzuki, and this is a question about the Dokomo FG, and when I heard from President Hiroi, Securing deposit was difficult and after acquiring a net bank, enterprise sales was required and group assets was required. For example, group employees and sales resources of the group to be utilized. And so, can you speak about the progress around those topics?

Yes.

Yes, competition over deposit. And now we are in the world with interest rates. So not just the net banks, but mega banks and other banks are competing amongst each other to secure deposit. Given the circumstances, Dokomo no Ginko is We are trying to secure deposit in this competition so that there will be another business growth. To all the group employees, we can ask Any other questions?

Thank you.

We have received a question in chat, so I would like to read a question of Mitsushima-san from Nikkan Kogyo. And semiconductors are a procurement, and it will take longer, and also, what is your view as to the selling price of semiconductors? And we are not directly procuring semiconductors, and as to the pricing components of devices, a semiconductor is being used. And so from the device vendors and from the earlier stage, while there is some request for the potential procurement, an innovative device might see some impact and optical-related parts and components. And they are really asking us to really place orders early on, and so we are aware of that. So that we will not really cause any inconveniences to our customers and also to not to lower the quality of services. And so there are some cases whereby we are really well start placing orders and procuring earlier. And so the prolonged sort of the situation and we are going to respond to that. And also as for discerning prices, well, It all depends on the market and so we will be procuring out the market price and so thank you. Thank you.

Kobayashi-san, first, please. I'm sorry to ask for the second time. When you talked about the financial results at the beginning, you mentioned that there was increase of revenue due to the exchange rate. From your management perspective, depreciation or appreciation of the yen by one yen, what is the impact to the management of the company? That's the first question. And I should have asked this question earlier. DoCoMo's domestic share is now 33% or so, and you mentioned that the mobile revenue of DoCoMo is now bottoming, and what is your expectation for DoCoMo? Yes, for the exchange rate impact, I would like to ask the finance responsible person to respond. And speaking about market share, we mentioned 35% as the target, but that was a message for not going any further down. So in other words, We want to increase if possible. So we said that 35 last time, so we hope it will increase. But on the other hand, if we include MVNO, we have been able to secure to certain levels, so we should be able to keep that. And with respect to domestic share, we do not want to go any further down, so we would like to make sure to hold. And please convey this to Maeda-san, the next speaker. So if I may add on the impact of the exchange rate now with NTD Group, overseas revenue is roughly ¥3 trillion per annum, and for example, the exchange rate is between ¥150 to ¥160. With a ¥1 fluctuation, there will be roughly ¥20 billion impact, and the profit is roughly one-tenth of that amount. That is all from me. The person in white shirt.

Question from Kyodo Tsushin. And so I'd like to really ask questions related to Kumamoto. So there has been more much of the impact. And so there is, are you really going to review the BCP? And as for the unwinding of metal, If there are any possible post-movement, and as for the metal, I don't think there is going to be an impact. And as for the BCP, whether we are really going to revisit BCP or not, constantly we are reviewing. And so this time, So, it's affected. And so, war was in shortage because of the war, Kumamoto earthquake. And so, at this point in time, we have not yet really reflect the lesson on ourselves yet. And so, this is something we do every time, constantly, if there is any war disaster. Thank you. In the interest of time, the next question will be the last question. If you have any questions, please raise your hand. Thank you.

Since there is no further questions, with this, we would like to conclude the press conference of NTT Inc. We would like to move on to NTT Docomo Group press conference. Please wait while being seated. Thank you. Thank you for waiting. From now, we would like to start the press conference on the financial results for the three months in the June 3rd year 2026 of NTT Docomo Group. Let me introduce attendees. President and CEO, Representative Member of the Board, Yoshiaki Maeda, NTT Docomo Executive Vice President, General Manager of Corporate Strategy and Planning Department, Shuji Sakamoto, NTD DOCOMO, Senior Vice President, General Manager of Accounts and Finance Department, Jun Fujioka. These are the three members. From President Maeda, overview of the financial results will be explained and entertain questions from those who are on-site and online. The floor is yours, President.

This is Maeda speaking. First of all, we would like to extend our heartfelt sympathies to everyone affected by the Kumamoto earthquake and their families. As the Dokomo Group, we will continue to work toward providing support to the affected areas and ensuring the stable operation of our communications services. Now I will explain the financial results for the first quarter and here are the results of highlights. We achieved increase in both revenues and profit and for the first quarter marking a strong start to the mid to long term growth. Although the increase in earnings is modest, the results of the transformation initiatives we've been implementing are steadily emerging. Progress against the four year plan is proceeding smoothly and we remain committed to achieving our targets. In the consumer communications business, we have seen improvements in customer base and earnings, while the smart life business has grown mainly driven by finance offerings. And the enterprise business is also capturing customer needs for the AI era, expanding its area of growth. I will explain the status of each segment in the following slides. First, the overview of the financial results. Operating revenues increased by 126.9 billion yen to 1 trillion 617 billion yen operating profit grew by 6.5 billion yen to 246.2 billion yen and resulted in increase in both revenues and profit. Operating revenues were driven by smart life and enterprise businesses and increased over 100 billion yen. Smart life grew in its existing business in addition to the consolidation effect of banking and enterprise business expanded in its growth areas. Mobile communication services revenues saw a smaller scale of decline from 14.1 billion the previous year to 1.4 billion yen and performance is improving as planned, heading towards a bottoming out. Group-wide operating income increase was driven by the growth of smart life. Consumer communication still results in declining profit but the rate of drop is almost halved from the previous year and keeps improving. Since promotion expenses stepped up from the previous year, but while expanding in the number of port-ins, it's being controlled within the scope of our plan. For the four-year, we plan to drive efficiencies and achieve year-on-year reduction. I will now start explaining core businesses' actions and results. First, a consumer communication business. MMP recorded net positive performance in three consecutive quarters and remains improving trend. We believe positive growth secured throughout the first quarter demonstrates the improved customer base has started to take root. Also, with enhanced sales capability and increasing the number of loyal users and lower short-term term are leading to lower acquisition costs. In FY2026, not nearly acquiring the number, but we are trying to enhance engagement with our customers and build more robust customer base. The number of loyal users using Docomo Max Finance and Ienaka services has steadily increased from 12.9 million last year to 15.3 million. Also, the port-out rate of loyal users has significantly lowered, and those who are subscribed to two or more services, the rate is about approximately one-third of non-loyal users. We believe the customer-based reinforcement to support mid- to long-term growth is steadily progressing. We will keep committed to expand the loyal users. Docomax topped 4 million subscribers. Towards the year-end target of 5 million, the progress already marked 80%. Furthermore, the number of applications for selectable benefits is expanding in value not just in terms of the rate, but also including that of the content is supported and appreciated by the customers. We will remain committed to achieve the year-end target of 5 million and aim even higher for further uplift. With the Docomo Max expansion, our pool reached 3,990 yen, up 70 yen year-to-year. We are making steady progress toward annual target of 4,010 yen and keep working toward improving our pools. Mobile Communication Services webinar despite the declining impact and from lower utilization habits with the strong recovery improvement momentum is continuing as it is progressing in line with the progress and with the plan and bottoming out is now visible. Also today we announced a new New 15 plan to support child of smartphone debut and Dokomo Oyakowari. This is easy to use adapting to the growth of a child and how it is used by the child. And monthly fee starts at 780 yen for the first year and discount is available for parents too. We intend to be recognized Dokomo as a family brand offering services easy to start by both parent and child and they find easy to keep using. Next is smart life.

The operating revenues increased from 301.1 billion yen to 418.4 billion yen, up 29% year-on-year. In addition to consolidation, effect of the bank existing areas including finance, entertainment and marketing have also increased. Finance payment transactions increased over 500 billion yen from last year with the expanded use of D-Card and D-Barai. Through daily payment, our contact with customers' daily monetary use is expanding. This is the solid strength of Docomo Group. Going forward, placing banks as origin, we will expand this daily point of contact even further. The nexus of the strengthening is Dokomonoginko. Setting Dokomonoginko as a payment account for D-card will increase reward rate of shopping. If it is paid in D-card, It is subject to cashback, and in the initial year, it will be the maximum of 3%, even by touch payment, or D-barai. Further, if securities or brokerage are combined, maximum will increase to 4.5%, depending on terms, even higher. The tripartite collaboration among NTT Dokomo Financial Group, Dokomo no Ginko, and Monix Securities enabled this. The foundation built by communications will expand from banks as origin to payments and asset formations. To ensure use of financial services to more customers, reassuring support structure is essential. The nationwide Docomo shop is our strength, and we will expand the support capabilities cultivated by smartphone classes to financial services. Already, some Docomo shops support opening brokerage and NISA accounts. Also, support for bank account openings and initial settings will roll out shortly. We will expand the number of Zoukomo shops capable of ushering and supporting financial services to 1,000 early to strengthen engagement with customers. Next is enterprise business. The growth area integration and platform grew 8.4%, driving increase in revenue. It also covers security demand of large enterprises and continues to accelerate the expansion of growth area. Our focus area AI business increase 12% in revenue year-on-year driving growth of enterprise business. and its core AI-centric ICT platform materializes AI-owned promoted by NTD Group and accelerates deployment as platform to achieve social implementation. Furthermore, security expected in the era of AI is strengthened such as threat information sharing of Docomo Business Ring AI, S.O.C. NTD Data Alliance Services are strengthened and we will support customers' AI use and secure business operation together. The number of AI-centric ICT platforms increased by fivefold. Docomo Business Now, Docomo Business Ring is expanding as a platform to provide enterprise network on-demand and with flexibility. Going forward, we will enrich services catering to the needs of the customers and evolve as AI-native infrastructure in the era of AI network. We will continue to build base stations at the same pace from the second half last year To improve network communication quality, in Q1 FY2026, we built approximately 2,500 base stations, of which 1,500 are 5G base stations, which is the same level as the first half of FY2025. Establishment of base stations is making steady progress. Although we see annual increase in traffic, the average download throughput It's the center of major cities nationwide is improving to achieve more nationwide connectivity and offer comfortable communication environment to customers. We will further drive building of base stations, further expansion of Hashi area in subway stations is steadily making progress. As of July, 303 subway stations have been completed across Japan and over 70%, 206 subway stations We will continue to promote this. Actions for further improvement of experience quality cannot be measured by the number of base stations. We started to introduce latest equipment. Let me share two points today. Firstly, the commercial introduction of the latest base station equipment first in Japan, the new Ericsson Toshihiko Nakamura Toshihiko Nakamura Maximum three-fold speed compared to conventional communication. Through the introduction of the latest equipment, we will ensure comfortable communication environment in areas with usage concentration of customers such as congested urban centers and event venues. Docomo Starlink Direct launched on April 27 topped 6.5 million users within approximately three months. In September, we will launch international roaming and deliver reliable connectivity when sky is in sight. In addition, we are promoting demonstrations of balloon-type haps. From September, as MIC project, we plan for three demonstrations in NOTO, combination of air-to-ground communication and high-resolution image capture, primary industry labor saving, and infrastructure monitoring, including dams, to be applied in grasping disaster situations. Delivered the peace of mind of having reliable connectivity in mountains on remote islands and at sea in emergencies. Q1 started with increasing both revenues and profits. We will improve consumer communications, further promote growth in smart lives, and enterprise the steadfastly achieved full-year plan. Thank you for your attention.

We will now take questions from the members of the press. We would like to start by inviting questions from the reporters present here at the venue. And then we would have the questions coming from those journalists joining online. And then we would once again would like to come back to the venue. Well, as we wish to entertain questions from as many reporters as possible, so, well, please, well, limit your questions to two per person. I will call you on you, and when you are called, well, please state your company name and the media and your own name. So, please raise your hand. And from me on the left-hand side in the second row. Sano, a freelance writer, and two questions. Firstly, well, this is not directly related to financial results, but there has been some failures in the Docomo bike share, and what are the sort of reasons, and how long would it take to really restore these services? Well, sorry if we're accusing inconveniences, and the Thank you very much. and so on tomorrow in Tokyo and outside of Tokyo eventually. Very sorry for inconveniences we have been causing. Have you identified the specific causes? This is sort of the shift or switching over to the new system and the issues were caused by that. Second question related to HAPS. In your company, and also you have engaged in the H-type, and this time you are really well going to use the balloon type. And so LT type of soap bag, is it similar or is there any difference? And why are you going to use this for balloon type HAPS? And so what is the sort of rationale behind choosing this?

And so we are really well, trying to really well.

We have been using the conventional type, but this was the balloon type from a little before we started, we're considering the use of it, and balloon type. And so compared to that of the soft bank, it is smaller in its scale, relatively speaking. You can really fly that from within the sites in Japan. And also, I think it has more flexibility. And also, with the winged ones, you have to make the device or aircraft or air sort of your body lighter. But as you have really was, as you have said, and cameras could be more installed on this balloon type. It is more suitable to really install these devices. And of course, we are really working with this for Starlink. And so in order to have the wider coverage, but vis-a-vis different industrial sectors, we would like to really offer more solutions. And also at the time of the disaster, Well, many people might use the communication from the air, and so if we have diversified a set of methods, that would be more, really more preferable, and so we would like to really expand these types of possibilities. Thank you.

Moving on to the next question, the person in the second row to the left, left. Takagi from Sankei Shimbun. The first question is related to Kamamoto earthquake. In terms of the status of use of Starlink, do you have any case of using communication through Starlink? At the time of Kumamoto earthquake, I do not have any material of how many people access, so as soon as we know, we would like to inform you. And the second one is me, and you mentioned that you're going to have a full-scale Thank you very much. Thank you very much. We did mention that it is planned for summer, but we would like to improve further functionality and we would like to enhance the capabilities. So we would like to now shift the timing and now adjusting for fall for SyncMe. From the past, we heard your reactions. and we would like to use data and to provide AI services so even without entering you will be able to obtain enormous information and we have seen positive reactions. So we will add further functionalities to make it even more convenient. Thank you.

and the very front row on the right-hand side, Ishikawa Freelance Road. And 40 Giga campaign started in August. And when I really want to go to our site, there is not much of the information, and so 30 Giga. And there is not much of the sort of strong promotion or appetite and also at the previous financial results for briefing, well, if you could update us as to how you are really thinking about the rates and so digital capacity and as for Shimada-san mentioned earlier, basically speaking, the way Diva customers are using and so we would like to really well look at how this is being used and the traffic volume. is increasing about 20% every year, and that's what we have been sharing with you in AHAMO. There were so many opinions, and so we have been offering 30GB from two years ago or so. Per session, data volume is increasing. So data volume itself of the content is increasing. And this is not something the customers can control. So in this way, and so the environment in which the customers are using is really well changing. And so at what level should we really offer services in their daily life? If they are, well, thinking that they are short for the capacity, and even if there is a sort of limit imposed, then that might not be so good for the customer. So if we really would like to really increase this capacity, and then to verify. Thank you very much. Having said that, the traffic is increasing, and so making investment and to really provide the highest quality service to the customers, and if that is really essential, then we have to secure the fund. And so we are in the same situation as our competitors, and so despite the fact that I Thank you. The person to the right, behind.

Sekiguchi from Keitai Watch. This is a follow-up.

AHAMO is now increasing, and this is just for verification, but if you think about it, this is a substantive reduction of price. And to you, it is not leading to upsell, so according to what was explained, there is an increase in cost. And it seems like there is inconsistency in your explanation, but can you elaborate on that? Yes, so as I said, in principle, What we do as an increase of gigabytes is just for demonstration purpose, and rate is separate. So we are not trying to make sure that this is going to be the permanent plan as a service plan. So if you connect all of those factors, it may seem inconsistent, but we are considering this as something independent. And as for the rates to customers, we will balance at service level and cost.

Thank you.

I have one more question on communication quality. At the end of the presentation, you talked about base station construction, and you mentioned that the throughput is also improving. And this kind of outcome, it's very difficult to provide a numerical outcome. Thank you very much. Thank you. Well, I might have mentioned that this is quite favorable against our plan, but we will implement what we are supposed to do to ensure high-quality communication to our customers, and that is the background for building base stations. As we have been explaining, this fiscal year, we would like to make sure to have There are causes. We had a shortage of We are slightly behind our schedule on a nationwide basis, but including 23 wars where the population is concentrated, we are prioritizing versus our plan. It is overachieving our plan at the moment. So as to which level and which step are we reaching, it's difficult to say, but as I said, we need to expand the number of base stations. Not only that, we also need to do the tuning as well. As a result, we are trying to enhance our quality. Thank you.

Next, just in yellow, and after that, we would like to take questions from online. And so, my name is Tanaka from SyncMe, and also the cross-use in finance. And you are really talking about the collaboration within the group, but the other competitors are trying to really combine. The purchase data and various other data. And so you really go in to really have your common ID and integrate ID with others by partnering with somebody else. And ID, we do have 100 million worth of ID and we cannot really increase to that number just by and so we have really worked together with our partners and reached this far. And deep point merchants and payment merchants and we have worked together with them not just in terms of the number of members but the data we need to understand how the customers are using this is being available and also the payment itself as I have really shared with you on slide earlier. Just in this one first quarter already and almost 5 trillion yen were the transaction amount was achieved and also the payment amount of 19 trillion yen is being aimed at. And our strength and D-Point itself has D-Point merchants and then we have been working together with them and then well we have more than 700 companies inclusive of them and what are the payment transactions? What would be the potentials of growth in its transaction volume? And not just for limited to decon, but the point, and I think for annually, we have far more than 23 million worth of it. And so the lifestyle of customers should be understood very well. And then on top of that, we are going to make use of the data related to customers. And by utilizing various different types of data, we are really going to really well create customers and more of the offerings. And so, well, I think, well, the relationship with the partners are really supporting this. And also, amongst the partners, and by the linkage of ID, have already been established with some of the partners. And over 10 million IDs have been, well, linked together with some of the partners. So, with this, well, our partners, ID and data, and also, well, exactly, this is where AI comes in. And with the AI, well, we are to really, well, have the better understanding of customers and trying to really improve our corporate value. And so, as one way of achieving that, we have Binance, and on the same platform as Binance, To support the daily life of customers, we are to really offer SyncMe as well. And so we believe that we are able to really broaden this area. And so that's something we would like to further pursue. Thank you.

Next is a question from online. You may speak up or you may... If you would like to speak up, please use the raise hand function. If you would like to submit your question through chat, please enter in the chat and ascend button. If you have any questions, please. We have a question in chat. I will read Mitsushima from Nikkan Kogyo Shinbun. MIC has demonstrated a policy to have the split for the maximum of one year as a benefit for switch over for hopping a measure. What is your view? From last year, this is becoming a challenge, and not for only us but other operators as well. In order to have the countermeasures against the hopping, The view in the last council meeting is that there is a progress which we welcome, and by implementing measures, we will ensure measures against hopping and to secure customers with high quality. In the presentation, I did mention how to increase loyal user and spending promotional expenses. How are we going to ensure efficiency? In order to do that, we need to suppress the number of churned customers. So we would like to implement our measures and once again how to control a handset at price. And we were taking measures that are not so many customers will be included, but if we have Thank you for your application of numerous or multiple benefits to customers. We are trying to prevent that so that customers will not adjourn at an early stage. We would like to ensure to have such measures. Thank you. One more question we received in chat.

and Kaneko-san of IT Media. AHA mode 10GB is being offered and also SNS. Well, there are some complaints with respect to the communication qualities vis-à-vis users. Well, when would the communication quality could be improved? And also, what are the issues that you need to really address at this point in time? And as I said earlier, still, It's been improving, but we are still on our journey. And also particularly while the population are densely populated areas, we really have to really well do more. And from the user's perspective, well, of course, for inclusive SNS, we are tracking the customers' voices, and also B2B, these were challenges, how we will be able to implement measures as quickly as possible, and so just while this boils down to that, and so in terms of the process, We hope that we will be able to share with you the progress made to that point in time. And once again, we would like to go back to the venue in the middle, in the front row, where the blue shirt. Again, on Ahama questions, in June,

JAL Mobile powered by AHAMO started and what is the reaction and what is the actual and what is your plan going forward from President Maeda? We do have positive reaction. Those customers who are fans of JAL Many of them are travelers. When they go overseas, they can be assured to use a data volume. So it is a service that provides assurance, and we are catering to such needs. And the sales are in progress according to plan. So as I explained, This is a kind of ecosystem, and we are providing functionalities, and of course, to such partners, it will be useful, and from our perspective, we are able to capture new customers, not only limited to JAL, but to other customers. We would like to continue with our efforts. Understood. My second question is what you announced today, this parent and child discount. And for parent, there will be one-year discount, and ahamo will be significantly low in terms of rate. And I think this is opposite to your plan of increasing rate. So, originally we had a strong image that the family equals the dokumo, but do you think that this image is weakening? Yes, in the past there was impression that the family is dokumo, but now this perception is getting lower. This is what we recognize as the challenge. Of course. Depending on services, we are expecting that the payment will be made, but at the same time, we would like to have customers with long-term use. Not only about the MNP, but the net increase of handset is also important. We also consider this important. In the past, because the share was very high, Those in senior population, when they die, they churn, and against that, there are customers who use smartphones newly, so we need to make sure to have Thank you. On my left, and the person in the first row, please.

and Football World Cup. And the Zoom had broadcasted the games. And so it was monopolized by the Zoom. And because of the Docomo Max for the subscription, was there any positive impact from that? And that's the very first part of my question. And just the other day, the Miri was a wave. It has been auctioned in Yuan. Thank you very much. Well, from the end of the year to the first quarter, I think that was one of the factors as the increase in the number of, well, an increase in subscription. And also I think it was really conducive to activate the market, and particularly, well, June, July, and the active usage of the zone was really high, and I think there have been a positive impact in different ways, and also the millimeter weight and the 25 giga. It's not that we would be able to really install these world-based stations in a short period of time, but as we are seeing, it's such a growth in the world data volume, and also the way the quartet is being consumed, and also with the AI, And from IoT devices as well, and also the traffic increase, which will be caused by the use of AI, well, we can really anticipate a such volume increase. So we would like to make sure that we will be able to take advantage of the millimeter wave, and so 28 giga. And also we have the other, well, the millimeter wave, And we would like to take advantage of our strength so that we will be able to really offer higher quality service to customers. So we would like to really well get ready for such upcoming trend.

The person in the middle row and at the front, Koyama from freelance. It's been just one month I read a Docomo SG and Is there any trend of the users? Is there activation or is there outflow? Is there any unique activity of the users, although it has just begun? Yes, we have just begun this service. As we explained, the first major initiative is the collaborative campaign with the bank. and we would like to have a good reputation so that we can acquire more customers. In order to promote financial services, it is important to have increasing number of bank accounts and deposits in order to improve our profitability. So the biggest scale is D-card and we hope that this will be used for the accounts for payment of D-card and that will be one of the measures to expand our sales. So we would like to start from there and if possible we would like to expand to other financial services. The second question is exchange rate and you have the strength In enterprise and business, have you seen any progress? To be specific, with the sales trend of enterprise business, there isn't anything that we can explain, but there are inquiries as far as I know, but this is more related to a financial group. We have some projects with Taimi, and once again, there are This is a novel service, so this is becoming one of the weapons for our differentiation. Thank you.

Well, then, in each of time, well, we have three journalists who are raising their hands, and so we would like to really take their questions. Well, the person at the very back of this room, Kawashima, from Kyodo Tsushin, and going back to HAPS. And by the end of this fiscal year, 2026, you are to start your service. And is it going to be just on a trial basis? and also well how many what apps are you going to have and also for the disaster prevention and also some well usage in industry what are the possible application and also if you really have well some plans for AD in Oto. So commercialization by the end of FY2026 but we have not well made any firm decisions yet and the reason why we have shared this Because there is, well, we can confirm this kind of needs and the needs for the companies as well as the municipalities and rather than the individual, but relatively speaking, within the smaller areas, if this kind of solutions can be offered, I think that could be possible. And what kind of helps will be required? And by having this demonstration, what are the, We would like to really confirm these specific needs. And approximately, we are going to do this until the end of September.

Thank you.

The person at the front, Eguchi from Asahi Shimbun, again on HAP's question. This is demonstration and above was another area selected. Yes, originally we had collaborative agreement with Ishikawa prefecture two years ago. Using CAPS, what kind of a solution could be possible? That is what we have worked together, so we are now demonstrating and coming to this stage. Thank you. And another question is about competitor. SoftBank has said and made announcement that this will be after August, so in the industry, This kind of development is becoming quite competitive, but what is your take on that? Yes, rather than competition, what could be the possible approaches and what can be delivered as values through social implementation that is still at the exploration stage? There are different technologies and there are different choices, and for them to become the real value, it is important. So not only us, but the other players to address this will be good for the society. Thank you. The last question.

The reporter in the middle. Ishii Free Rants for journalists. And as for the acquisition of the smartphone handset, I think this was also mentioned as being the world critical. And also, the smartphone price is rising, and Miyagawa-san has thought that in high-end world handset model, price is going to increase. And what is your view from the NTT Docomo? And also, how you're really going to really well acquire Thank you very much. Thank you very much. Thank you very much. Thank you very much. To the extent possible, we would like to really lower the burden placed on the customers. And so there are a lot of different ways that we need to really explore. And in order for the customers to use it for a longer term, and also if they are to really buy a new handset and come to us, We need to really make sure that we will take the adequate and appropriate approach. That might be very important. And lastly, if I can just say something. Earlier, as for the Kumamoto earthquake in 2026, and also there was this usage of Starlink. On the same day of the previous week, the usage was increased by three-fold or three times. And so with this, the financial results briefing of NTT Takumo is concluded. And so we are really going to have the first conference of NTT Data Group for financial results briefing. And so we thank you very much for your attendance and you are requested to remain in your seats for a short period of time. Thank you for watching!

The calculation of NTT data will start at 3.10pm. Please give us a moment. Thank you for watching! Thank you for watching!

Thank you for waiting. Thank you for your attendance despite your very busy schedule. From now, we would like to start the press conference on the financial results for the three-month-ended June 30, 2026 of NTT Data Group. Let me introduce the speakers today. Representative Director, President and CEO, Kazuhiko Nakayama. Senior Vice President, Head of Corporate Strategy Office, Corporate Planning General Headquarters, Eiji Yoshida Senior Vice President, Head of Finance Headquarters, Keisuke Kusakabe These are the speakers. The MC is Sasaki from Public Relations. As for the presentation materials, we only have the materials for financial results. The materials are uploaded on RR information of our official website. Please download as necessary. Now, Nakayama will provide explanation on the financial results for first quarter of 2026.

I'm Nakayama, NCT Data Group. Thank you for taking the time out of your busy schedule to attend today's financial results briefing. Before I begin my presentation, I'd like to express my heartfelt sympathies to all those affected by the Raya 8 Kumamoto earthquake. I now will present the financial results for the first quarter of FY2026. This is today's agenda. I will explain the Q1 results of FY2026. Please turn to page 4. Here is a summary of our first quarter year-on-year changes. Net sales increased by 174.6 billion yen worldwide. Operating profit increased by 5.7 billion yen year-on-year, net income decreased by 0.8 billion yen year-on-year, and new orders received increased by 334.6 billion yen year-on-year. This marks a solid start into the fiscal year in line with our earnings forecast. Please turn to page 5. First, new orders received, as I said, increased by In Japan's segment, it increased by ¥88.6 billion nearly by large-scale projects run in public and social infrastructure and financial businesses. Overseas segments saw an overall increase of ¥249.3 billion by data center business and large-scale deals won in In EMEAL and APAC where we aim for performance recovery, new orders received increased year-on-year. Please turn to page 6. Next, net sales increased by 174.6 billion yen year-on-year. Jump-down segment grew in all the businesses by ¥43.6 billion year-on-year in total. Overseas segment increased in all the units and segment, and segment total increased by ¥136.9 billion. Just as we saw in the orders received, net sales was also very strong. Please return to page 7. Offering profit rose overall by 5.7 billion yen EON. Japan segment posted an increase in all the businesses with EON growth of 9.8 billion yen in the total segment. Overseas segment declined due to the 4.7 billion yen impact from the absence of usage fee income of the data center sold to Singapore REIT in July 2025, which was included in the first quarter last year. In addition, non-recurring revenue in data center business decreased in a year. However, excluding these impacts, the profit recorded grew, and we believe operating profit was generally in line with the expectations as well. In the first quarter, no gain on sale of data center was recognized. Please turn to page 9.

This shows the breakdown of Japan's segment results. In all three businesses, new orders received net sales and operating profit increased year-on-year. Public and social infrastructures increased in both net sales and profit primarily due to favorable business for central government-related agencies. Financial increased both in net sales and profit chiefly supported by insurance industry businesses and banking businesses. Enterprise increased both in net sales and profit thanks to entertainment industry businesses, a steady start for the entire segment. Going forward, based on the recent solid order, we will strive to achieve our target. Please turn to page 10. I will explain the breakdown of overseas segment results. In North America, The expansion of scale in network equipment related business resulted in increase in both net sales and profit. MER increased in both net sales and profit overall driven by growth in IT services in Spain and Latin America, efficient operation in direct segments, and impact on transfer in some segments. APAC decreased in profit due to gross profit reduction in Australia, but it is strengthening consulting segment and others to recover performance. Global technology and solution services decrease profit on constant currency basis, varying impact from the earlier mentioned data center business It is viewed as effective increase in profit. We will continue our efforts to improve profitability and aim for the achievement of the overall performance target of the overseas segment. Please turn to page 11. This shows the status of the data center business. I will skip the details, but the investments are growing steadily, and the total power capacity and operating results are in line with our plan. Please turn to page 13. From here, let me share key business topics to achieve quality growth strategy. We aim to advance AI-driven client value creation and reliability enhancement in two focus areas, AI-empowered new value and productivity, and next-gen infrastructure. In addition, we are strengthening our capability to implement and deploy AI solutions in Japan and abroad through collaboration with NTT group companies and M&A. From the next page onward, I will talk about each initiative. Please turn to page 14. First, AI-driven client value creation and reliability enhancement. NTT DATA AI VISTA has launched core AI platform to achieve industry-specific AI. It has proven high-level accuracy in early adoption for insurance BPO business and won orders in Europe and the US. Domestically, we promote deployment in the banking and insurance industries. Furthermore, Leveraging Frontier AI, we launch comprehensive cyber risk management service supporting vulnerability detection, recovery, and continuous response. Based on our development capabilities and experience in critical system operation, and by combining NTT Docomo business network area security expertise, we will contribute to the achievement of secure digital society. Please turn to page 15. Let me now turn to the enhancement of capability to drive client-business transformation with AI. In Japan, NTT Marketing Act Box will become joint venture between NTT West Japan targeting October 2026. Thank you very much. 1,000 Microsoft, Azure, and AI specialized talent from the acquisition of Wien Wire technologies. By combining companies' AI data and cloud implementation capabilities and our industry knowledge and customer base, we will accelerate our AI business growth primarily in North America. That concludes my explanation. Thank you.

We will now take questions from the members of the press in the venue. If you have questions, please raise your hand. And to my right, and the reporter in the second row, Shimizu Uframbo, Nihon Keizai Shinpu. And I'd like to ask questions related to external environment. and Big Tech AI Investment Outlook and Hyperscalers will have been increasing the third of the world issuance of the corporate bonds. And so I don't think there is much of the immediate change, but they are really doubling all these and going forward. The growth of the investment, if there is any potential risk of the declining Thank you. Thank you. Thank you. As you see the emergence of these AI models in China, what could be the potential impact on your business? The first question, big tech issuance of the corporate bonds is being done in a very active manner, and they are increasing their investment size, and going forward, depending on the circumstances, if they are not able to recover the investment, Could be possible that they may withdraw from the sector. Well, got it. First of all, AI, big tech, and in the financial market, they are really issuing the corporate bonds in a massive manner, and also the equity-wise IPO is ongoing. and AI-related as well as data center-related areas. Well, there are a decent circulation of the investment amount, and then there is, well, the increase in terms of the demand. On our part, well, data center business is In order to really well capture such a demand. And so what we can do with our own fund or our own money at hand, and also in order to secure the future cash flow, we are to establish a bid. And so wherever we have the increased demand, in order to address that development type, The joint venture is going to be established during the course of this year and to really capture the very robust demand. And so big tech and other funds are allocating much fund to these and so we would like to really work Thank you very much. In case of data centers, 10-year or 15-year contracts are being signed with the customers. And only after receiving orders, we are to really well build. And so in the immediate future, where there is no such risks and also Lately, everything is becoming data-driven, and it's not that we are pre-empting the market demand early on, but we are kind of trying to really well catch up with the demand, and even if there are any more events in the future, Well, we would be able to really manage by controlling the adequate size of the business. And the next question is Chinese or LLM are emerging and how are we going to really respond and address such emergence. And as we have explained earlier today, LLM and others, Not really we're deciding on which of the model we are going to use, but we are trying to figure out what should be the best, depending on each circumstances. Not just limited to Japan, but overseas, APAC region particularly, Well, they are really affected more strongly by the Chinese players. If there is any request from the customers to use them, then we would like to be forthcoming in trying to accommodate their risk. So depending on the circumstances prevailing in each of the countries and what models should be chosen as the best choice, What it differs from one country to another, and so we would like to really well make the adequate choices depending on the situation.

Thank you.

So we are taking the questions from the video first, and then we will take questions from the journalists who are joining online.

If you have any questions, please raise your hand. The person who is second, from my view. My name is Takagi from Sankei Shimbun. You mentioned... There's a lot about using touch for security and that is done as one-stop service and SoftBank is also appealing on that and they are quite aggressive in their sales activities. And this service business, what kind of competitive landscape are you expecting and where is the strength of the NTG data? Thank you for the question. This service, on July 7th, we announced that we will implement, and this will start from the end of July, and it has been just a while since we started, so we need to have more services. But now we have inquiries from over 50 companies. So to your question, We have been managing system operation of many important customers and as to how to promote cyber risk response, we do have the know-how and internally and the so-called frontier AI. On the frontier AI, we have Thank you very much. Thank you very much. Only limited number of customers who are able to respond to this internally. So through the system building and our expertise, and there is a team to oversee this development. So I don't know how I can compare this team with the others, but I think we have the strength. Another point is related to the entire NTD group. After TOB, especially collaboration with dokomo business is progressing, and from the maintenance of network perspective, they have the knowledge and they have the know-how. which is the unique strength of us and we would like to focus on that. Thank you. As a follow-up, within the patching service, you have mentioned the use of multiple frontier AIs with the access right issue Is it possible to continue to use the latest model? We do have concerns looking from outside. So how are you going to do the relationship with big techs? What is your view on that? The so-called big techs, with them, Not only limited to frontier AI, but more broadly, we are collaborating and especially data group is now having a certain level of scale, so we are able to have direct communication with the top management of such players, which is good for us. So as you pointed out, the latest model, for example, Some can be received with our offer, or sometimes it is regulated and it is not possible for us to use, so we need to respond steadfastly. On the other hand, although there are ones that we are able to use, Some have higher levels of attacks and there are several of them. So we are trying to combine and we are trying to adapt as much as we can. So we would like to look at this more comprehensively. Thank you.

For me, the women reporter in the very first row, please. I have two questions. First question related to FDE. Overseas, particularly, we're centering in the U.S. where there is a need for the upgrading of the FDE. And how are you looking into that and also the changes in the organization and also related to that? Well, how many talent do you need to secure? If you have any concrete information, well, please, well, let us know. And also, the FDA, well, there is a sort of target to increase, well, by 50%, well, in five years. And so what is your outlook of achieving this? And firstly, I'd like to really respond to the question related to FDA. Satomi-san. I was expecting that you're really going to ask how many people, but well, today I am afraid I will not be able to really well answer to your question. And so, well, how to define FTE? And also, well, those of the employees who are resident and customers and also ask for the big picture. They are going to really introduce AI and how to take the lead in introducing AI and also the actual implementation of AI. And so that is how we should define them in the first place. They do services and to deploy the AI-related services and So, in actually implementing them, they are to really upgrade or reinforce FTE. And also, in domestic business of ours, we do have a long-standing relationship with customers. And on the customer's site, we have a decent number of resident engineers. And as for the legacy type of businesses, they are really well, the resident engineers were in the customer's side, and then they were to pick up the customers who are the ones in need, and then address that. But in the last few years, that will not be sufficient enough, and so the consulting type Well, the SI should be promoted and to really have the good understanding of the customer's business and from us. Well, to really offer proposals for their business transformation and what kind of systems need to be introduced. And so, in terms of the direction, if the EU definition and consulting type of the services will be offered and to promote the implementation on the part of the customer. So we have been doing it. And so how to really combine AI internally, the so-called FDE, and how many employees are qualified for that. And so we need to really start defining Thank you very much. Thank you very much. In December last year, we have set up the World AI Vista on the west coast of the U.S., and as we have well explained it a little bit, a core AI platform is to be built, and By utilizing this, well, there is going to be the switchover shift of the system on the customer side. And so we are to really offer proposals for doing that. And which page was it? And the information deck. And on the left-hand side, you find that, first of all, well, the U.S. and European type. And also we are promoting this well in Japan as well. and the point is on the customer's premise and we ought to really modify the core system to the customer's system and that kind of job Thank you very much. Hope that we will be able to promote while introducing this for FDE type of DE personnel. And so EBITDA related question. When we announced the financial results in May as a company in 2030, EBITDA and 800 billion yen of EBITDA in 2025. And it will be an increase too for 1,200,000,000 yen, which is the third of the increase we aim for. And as to the feasibility, we have just begun this. And so quantitatively, I have nothing to share with you at this point. But we have this for five-year plan. and we are to really execute the annual plan so that we will be able to achieve others. And so this was a 50% increase. And 50% increase in five years and so 10% growth per annum. And so the profit level needs to be increased 10% in revenue and profit. And, well, I think that this is the kind of the industry standard for the industry in which we are operating. And also, well, the mid-term, so the growth target of the similar size is being more indicated in Japan as well as in overseas markets. As for the data center business growth rate, We have been saying that the water growth rate ranges between 15% to 20%, and also 25% per annum growth is sometimes indicated. And so, though it is challenging, but in terms of feasibility, we believe it is quite achievable, but qualitatively. Thank you very much. Thank you very much. and quite a large part of the jobs will be seen the sort of labor saving achieved and so per project. But in terms of the volume, we are not so much concerned. But AI Vista and asset type or the recurring type business should be increased in its proportion. And we are oftentimes talking about full-stack model You have data center on top of that GPU service and also on top of that cloud and submarine cloud could be put on. And then we have the AI application. And I have referred to this in our strategy and also where the AI empowered something, something. And so this for the lower layer is more of the asset-based business. and two will make the sort of the adequate investment and the time horizon is five years. So we are to really increase generating, profit generating capability. That's it from me, thank you. And the two persons who have raised their hand and then we will go to the online journalists.

The person in blue shirt to my right, please. My name is Murai from Diamond. I have two questions. The first question is the full-stack business you pointed out. With respect to that business, asset-type business is something you would like to increase. And on that point, Thank you very much. Thank you very much. The investment to GPU is still unclear as a policy. If you are going to work on GPU as a service, would there be investment required for GPU? Or even without investment to GPU, would it be possible to have lighter assets? And can you talk about the investment policy for GPU? Yes, thank you. For data center business, This fiscal year, 500 billion yen as an investment, and last year the actual was 400 billion yen, and in the upcoming five years, roughly 400 to 500 billion per annum, so in total, roughly 2 trillion yen or above that amount. But on the other hand, GPU as a service, what is the level of investment at this point in time? It's not clear to indicate what is the level of investment and how we plan to invest. Having said that, for us to grow over the next five years, if you take a look at the total cash flow, considerable amount of investment We will be invested. That is our plan. And this is what we are going to consider looking at the total budget. So we do not have the specific figures, but if we make the investment, if it is high amount, if we buy one unit, it can be Thank you very much. and making investment and we need to move forward and that is something that is required so as an answer to your question we do not have any plan of how much that would be and we will not be able to respond today but even if there is a scale of 10 billion level investment we should be able to manage that within our budget That is the only point I want to explain. If I may ask further, the latest GPU system, are you planning to access to the latest GPU system of NVIDIA? Yes. Thank you very much. Thank you very much. What will be the case if we introduce the latest ones? That is what we are studying. If there is a need, it worth introduction. Thank you. There's one more question. Cyber risk response service. Maybe I'm not understanding the explanation, but to be specific, Frontier AI, the latest one, If you are to introduce the latest one, OpenAI or Anthropic, we'll respond to that model, but are you in a position to introduce the latest versions? Yes, as I explained earlier, there are cases where we can use the latest versions and not. Then, Do we need to have the latest versions in order to respond? I don't think that is the case. If it is a decent level, there are some products which are at that level, so we are now trying to combine them in order to provide the services to our customers. If we are able to use the latest products, Of course, we will include that in order to proceed, so what can be used and what cannot be used. If possible, we would like to have the latest versions, and that would be best. But we will respond with the best possible combination we have, and we should be able to deliver a certain level of results. And do you have any target of how many companies you are going to introduce this service This is Yoshida speaking. No, we have not set any target as a figure, but as was mentioned, we have inquiries of over 500, and since the start of the service, it has increased with momentum, and so we would like to consider that going forward. Thank you. The last question.

Yes, the burning white shirt. And so, well, I would like to ask questions related to really what AI is this stuff. And also, currently, well, both in domestic market and overseas, and you are really trying to consider how you're really remove that. And what is the progress you've made? And also, you are in the process of removing that. And also, in terms of BPL... You are to really refine the solution so that it could be offered to the market. What is the current status of this particular service? In December last year, we have established a company, and then, We are gathering the personnel, and it's just about 20 to 30 headcounts. But in this universe, the critical key is speed. So in around June, July, first of all, as shown here, insurance-related core AI platform was already established. And then, well, While having the interaction with the customers, we ought to introduce it into the customers. In terms of the number of the customers, it says for several customers in the U.S. or Europe. As for the starting point, the number itself is not that big, and so just multiple customers. Well, within this one single handful of the customers in the other areas, meaning that manufacturing sector, and here again, we have some visibility and control and management of supply chain, and that is the area of the application of this. And so as shown here in the domestic market, In Japan, and we are promoting the deployment in the banking and insurance industries. It's not that how we are going to change the business processes of the customers with AI. That's not the concept we are going to apply, but we ought to really start from the very scratch, how to really establish the flow of the jobs Thank you very much. So we are going to use the agent and to automate all these processes and to really well reduce the human intervention. And so if you use the typical L&M, accuracy is just about 50% to 60%, and the remaining part should be adjusted by the human beings. And so what we are trying to achieve is to really have the higher accuracy rate. The ones with the, well, 90% or higher sort of proportion will not require the human intervention. And also, on top of that, higher efficiency as well as a new product offering could be achieved. And so the new services could be launched more easily. And so that's what we are really promoting. In terms of the number of the customers we are working with together, well, it's not that big, but this is quite a scalable business. Initially, we are to really do it very carefully and then to really establish the track record and to deploy it more widely. And the last question. And when we all have the discussion with the entity group people, and then, well, AI Vista is often talked about. And so, if I am wrong, well, please, forgive me. But, well, within the group, are you going to deploy AI Vista more widely? Well, what I have explained today, this is something we are to deploy vis-à-vis our customers. But, of course, Within NTT group, the use of AI VISTA is within our vision. In terms of the timeline, do you have any specific timeline for this to be used in the group companies? We have not explicitly decided on the timeline, but this kind of activities Unlike the conventional systems, which would be based upon the 2 to 3 year or 5 year plans, but we will be able to do it more quickly compared to the conventional system. And so we hope that we will be able to promote that within the shorter time frame.

Now we would like to take questions from online. If you would like to Thank you very much. Thank you very much. From Nikkan Kogyo Shinbun, we have a question in the chat from Mr. Mizuhishima. I will read this. There are two questions. The first one is NTG Data AI Vista. For AI platform supervision, is there any reaction and what are being evaluated from the customers and what is the development going forward? Yes, let me go one by one. And starting from AI Vista, personally, I have a regular contact once a month. He comes to Japan every two months, and due to various reasons, I go to the U.S. Last week, I was in the States, and I had a half-day discussion with the members. In terms of the reaction from the users, Thank you very much. Thank you very much. What kind of impact would that pose to the enterprise value? And we did have a quite extensive discussion on that topic as well. So this was set up in December and it is about six months plus old, but it is on track with our plan. and we are also in a position to discuss the outlook. So I think we have sufficient level of reaction. And as for the response to customers, we are still premature. I would like to state clearly at this stage that we create system and we show the system and as I explained, the accuracy is improving and there is possibility for deploying new business. So for those customers who have placed orders, They are now quite satisfied with the current status. Did I answer your question? Thank you very much for sending many questions and asking many questions today. With this, we would like to conclude the press conference on Q1 FY2026 A Briefing Thank you very much for your attendance.