UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under the

Securities Exchange Act of 1934

For the month of November, 2012

Commission File Number 1-8910

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

(Translation of registrant’s name into English)

3-1, OTEMACHI 2-CHOME

CHIYODA-KU, TOKYO 100-8116 JAPAN

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x    Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):             

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):             

INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED

SEPTEMBER 30, 2012

Attached is the registrant’s unaudited interim consolidated financial statements for the three and six months ended September 30, 2012, including notes thereto, prepared on the basis of accounting principles generally accepted in the United States.

The attached financial statements were included in the registrant’s quarterly report which the registrant filed on November 9, 2012 with the Financial Services Agency of Japan. The registrant’s quarterly report filed with the Financial Services Agency included additional information not included in this report on Form 6-K. Such additional information is either immaterial or has been previously reported by the registrant. Most of the contents of this report on Form 6-K and the registrant’s quarterly report have previously been disclosed by the registrant in the registrant’s press release dated November 8, 2012, a copy of which was furnished under cover of Form 6-K on November 8, 2012.

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

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

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

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

SIGNATURES

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

NIPPON TELEGRAPH AND TELEPHONE CORPORATION
By		/s/ Kazuhiko Nakayama
	Name:	Kazuhiko Nakayama
	Title:	General Manager Investor Relations Office

Date: November 9, 2012

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	Millions of yen
	March 31, 2012			September 30, 2012
ASSETS
Current assets:
Cash and cash equivalents	¥	1,020,143		¥	807,599
Short-term investments		306,921			422,426
Notes and accounts receivable, trade		2,287,986			2,161,022
Allowance for doubtful accounts (Note 7)		(48,356	)		(44,627	)
Accounts receivable, other		277,277			264,144
Inventories (Note 2)		329,373			391,603
Prepaid expenses and other current assets		315,566			430,944
Deferred income taxes		223,021			223,212
Total current assets		4,711,931			4,656,323
Property, plant and equipment:
Telecommunications equipment		14,425,252			14,213,568
Telecommunications service lines		14,830,873			14,972,362
Buildings and structures		5,915,743			5,957,287
Machinery, vessels and tools		1,820,648			1,849,147
Land		1,133,077			1,129,395
Construction in progress		363,201			368,341
		38,488,794			38,490,100
Accumulated depreciation		(28,682,438	)		(28,744,019	)
Net property, plant and equipment		9,806,356			9,746,081
Investments and other assets:
Investments in affiliated companies		543,273			542,966
Marketable securities and other investments		295,254			304,023
Goodwill		771,420			806,665
Software		1,344,356			1,331,205
Other intangibles		263,964			260,219
Other assets		863,852			917,099
Deferred income taxes		789,293			767,405
Total investments and other assets		4,871,412			4,929,582
Total assets	¥	19,389,699		¥	19,331,986

The accompanying notes are an integral part of these financial statements.

1

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

AND ITS SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	Millions of yen
	March 31, 2012			September 30, 2012
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	83,507		¥	169,207
Current portion of long-term debt		656,963			791,749
Accounts payable, trade		1,482,594			1,125,794
Current portion of obligations under capital leases		18,709			17,070
Accrued payroll		476,442			423,281
Accrued interest		9,832			10,149
Accrued taxes on income		198,281			210,668
Accrued consumption tax		46,255			50,812
Advances received		189,007			183,952
Other		332,663			362,412
Total current liabilities		3,494,253			3,345,094
Long-term liabilities:
Long-term debt		3,509,820			3,323,821
Obligations under capital leases		36,919			35,026
Liabilities for employees’ retirement benefits		1,534,885			1,553,689
Accrued liabilities for point programs		187,432			171,201
Deferred income taxes		169,591			169,592
Other		409,070			398,470
Total long-term liabilities		5,847,717			5,651,799
Equity:
Nippon Telegraph and Telephone Corporation (“NTT”) shareholders’ equity
Common stock, no par value (Note 3)
Authorized – 6,192,920,900 shares
Issued – 1,323,197,235 shares at March 31 and September 30, 2012		937,950			937,950
Additional paid-in capital		2,832,165			2,831,753
Retained earnings (Note 3)		4,888,746			5,096,347
Accumulated other comprehensive income (loss)		(357,843	)		(337,007	)
Treasury stock, at cost (Note 3) – 99,431,812 shares at March 31 and 101,436,824 shares at September 30, 2012		(418,431	)		(426,134	)
Total NTT shareholders’ equity		7,882,587			8,102,909
Noncontrolling interests		2,165,142			2,232,184
Total equity		10,047,729			10,335,093
Contingent liabilities (Note 8)
Total liabilities and equity	¥	19,389,699		¥	19,331,986
	Yen
	March 31, 2012			September 30, 2012
Per share of common stock:
NTT shareholders’ equity	¥	6,441.26		¥	6,632.16

The accompanying notes are an integral part of these financial statements.

2

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE

INCOME (UNAUDITED)

SIX-MONTH PERIOD ENDED SEPTEMBER 30

Consolidated Statements of Income

	Millions of yen
	2011			2012
Operating revenues:
Fixed voice related services	¥	988,948		¥	895,409
Mobile voice related services		956,023			853,387
IP/packet communications services		1,772,728			1,880,497
Sale of telecommunications equipment		270,715			402,333
System integration		824,804			850,506
Other		341,362			355,260
		5,154,580			5,237,392
Operating expenses (Note 6):
Cost of services (exclusive of items shown separately below)		1,155,019			1,186,037
Cost of equipment sold (exclusive of items shown separately below)		359,200			418,376
Cost of system integration (exclusive of items shown separately below)		556,642			575,881
Depreciation and amortization		932,099			930,095
Impairment loss		98			788
Selling, general and administrative expenses		1,466,050			1,463,246
		4,469,108			4,574,423
Operating income		685,472			662,969
Other income (expenses):
Interest and amortization of bond discounts and issue costs		(28,675	)		(28,513	)
Interest income		10,188			8,759
Other, net		14,730			(412	)
		(3,757	)		(20,166	)
Income before income taxes and equity in earnings (losses) of affiliated companies		681,715			642,803
Income tax expense (benefit):
Current		262,864			240,343
Deferred		10,136			10,238
		273,000			250,581
Income before equity in earnings (losses) of affiliated companies		408,715			392,222
Equity in earnings (losses) of affiliated companies		(1,626	)		4,680
Net income		407,089			396,902
Less – Net income attributable to noncontrolling interests		(110,652	)		(103,487	)
Net income attributable to NTT	¥	296,437		¥	293,415
Per share of common stock:
Weighted average number of shares outstanding (Shares)		1,296,413,064			1,223,705,175
Net income attributable to NTT (Yen)	¥	228.66		¥	239.78

The accompanying notes are an integral part of these financial statements.

3

Consolidated Statements of Comprehensive Income

	Millions of yen
	2011			2012
Net income	¥	407,089		¥	396,902
Other comprehensive income (loss), net of tax (Note 3)
Unrealized gain (loss) on securities		(9,080	)		12,407
Unrealized gain (loss) on derivative instruments		(150	)		(727	)
Foreign currency translation adjustments		(12,271	)		(458	)
Pension liability adjustments		3,112			8,091
Total other comprehensive income (loss)		(18,389	)		19,313
Total comprehensive income (loss)		388,700			416,215
Less – Comprehensive income attributable to noncontrolling interests		(101,386	)		(101,964	)
Total comprehensive income (loss) attributable to NTT	¥	287,314		¥	314,251

The accompanying notes are an integral part of these financial statements.

4

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE

INCOME (UNAUDITED)

THREE-MONTH PERIOD ENDED SEPTEMBER 30

Consolidated Statements of Income

	Millions of yen
	2011			2012
Operating revenues:
Fixed voice related services	¥	487,763		¥	444,383
Mobile voice related services		473,881			421,129
IP/packet communications services		899,312			944,471
Sale of telecommunications equipment		141,703			233,914
System integration		435,013			438,929
Other		179,556			178,634
		2,617,228			2,661,460
Operating expenses (Note 6):
Cost of services (exclusive of items shown separately below)		577,138			594,631
Cost of equipment sold (exclusive of items shown separately below)		190,612			238,951
Cost of system integration (exclusive of items shown separately below)		297,587			301,680
Depreciation and amortization		470,332			469,812
Impairment loss		9			618
Selling, general and administrative expenses		745,353			745,106
		2,281,031			2,350,798
Operating income		336,197			310,662
Other income (expenses):
Interest and amortization of bond discounts and issue costs		(14,520	)		(14,597	)
Interest income		5,012			4,435
Other, net		3,198			(4,270	)
		(6,310	)		(14,432	)
Income before income taxes and equity in earnings (losses) of affiliated companies		329,887			296,230
Income tax expense (benefit):
Current		138,710			128,146
Deferred		(7,212	)		(10,538	)
		131,498			117,608
Income before equity in earnings (losses) of affiliated companies		198,389			178,622
Equity in earnings (losses) of affiliated companies		(1,547	)		1,762
Net income		196,842			180,384
Less – Net income attributable to noncontrolling interests		(53,475	)		(43,529	)
Net income attributable to NTT	¥	143,367		¥	136,855
Per share of common stock:
Weighted average number of shares outstanding (Shares)		1,269,982,031			1,223,645,346
Net income attributable to NTT (Yen)	¥	112.89		¥	111.84

The accompanying notes are an integral part of these financial statements.

5

Consolidated Statements of Comprehensive Income

	Millions of yen
	2011			2012
Net income	¥	196,842		¥	180,384
Other comprehensive income (loss), net of tax (Note 3)
Unrealized gain (loss) on securities		(17,213	)		12,602
Unrealized gain (loss) on derivative instruments		6,473			(2,088	)
Foreign currency translation adjustments		(25,843	)		(46,206	)
Pension liability adjustments		1,885			4,236
Total other comprehensive income (loss)		(34,698	)		(31,456	)
Total comprehensive income (loss)		162,144			148,928
Less – Comprehensive income attributable to noncontrolling interests		(42,832	)		(36,692	)
Total comprehensive income (loss) attributable to NTT	¥	119,312		¥	112,236

The accompanying notes are an integral part of these financial statements.

6

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

SIX-MONTH PERIOD ENDED SEPTEMBER 30

	Millions of yen
	2011			2012
Cash flows from operating activities:
Net income	¥	407,089		¥	396,902
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation and amortization		932,099			930,095
Impairment loss		98			788
Deferred taxes		10,136			10,238
Loss on disposal of property, plant and equipment		28,266			37,718
Equity in (earnings) losses of affiliated companies		1,626			(4,680	)
(Increase) decrease in notes and accounts receivable, trade		290,775			125,681
(Increase) decrease in inventories (Note 2)		(88,839	)		(50,442	)
(Increase) decrease in other current assets		(56,884	)		(88,169	)
Increase (decrease) in accounts payable, trade and accrued payroll		(312,261	)		(266,644	)
Increase (decrease) in accrued consumption tax		816			3,937
Increase (decrease) in accrued interest		515			111
Increase (decrease) in advances received		8,678			(6,148	)
Increase (decrease) in accrued taxes on income		23,893			11,311
Increase (decrease) in other current liabilities		8,344			20,128
Increase (decrease) in liability for employees’ retirement benefits		24,124			28,975
Increase (decrease) in other long-term liabilities		(16,621	)		(31,021	)
Other		(2,599	)		(27,277	)
Net cash provided by operating activities		1,259,255			1,091,503
Cash flows from investing activities:
Payments for property, plant and equipment		(684,708	)		(809,027	)
Payments for acquisitions of intangibles		(228,012	)		(220,600	)
Proceeds from sale of property, plant and equipment		3,865			3,343
Payments for purchase of non-current investments		(29,155	)		(24,099	)
Proceeds from sale and redemption of non-current investments		6,289			8,823
Acquisitions of subsidiaries, net of cash acquired		(40,219	)		(35,425	)
Payments for purchase of short-term investments		(594,793	)		(501,721	)
Proceeds from redemption of short-term investments		252,288			390,376
Other		37,609			(3,856	)
Net cash used in investing activities	¥	(1,276,836	)	¥	(1,192,186	)

The accompanying notes are an integral part of these financial statements.

7

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

SIX-MONTH PERIOD ENDED SEPTEMBER 30

	Millions of yen
	2011			2012
Cash flows from financing activities:
Proceeds from issuance of long-term debt	¥	429,306		¥	150,162
Payments for settlement of long-term debt		(310,418	)		(195,949	)
Proceeds from issuance of short-term debt		860,152			1,348,429
Payments for settlement of short-term debt		(1,085,188	)		(1,263,404	)
Dividends paid (Note 3)		(79,388	)		(85,664	)
Proceeds from sale of (payments for acquisition of) treasury stock, net (Note 3)		(223,506	)		(7,707	)
Acquisition of treasury stock by subsidiary		(2,168	)		(1,255	)
Other		(51,602	)		(57,652	)
Net cash used in financing activities		(462,812	)		(113,040	)
Effect of exchange rate changes on cash and cash equivalents		(250	)		1,179
Net increase (decrease) in cash and cash equivalents		(480,643	)		(212,544	)
Cash and cash equivalents at beginning of period		1,435,158			1,020,143
Cash and cash equivalents at end of period	¥	954,515		¥	807,599
Cash paid during the period for:
Interest	¥	29,534		¥	28,196
Income taxes, net	¥	228,671		¥	226,587

The accompanying notes are an integral part of these financial statements.

8

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

AND ITS SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Summary of significant accounting policies:

As permitted by the “Regulation Concerning the Terminology, Forms and Preparation Methods of Quarterly Consolidated Financial Statements” (Japanese Cabinet Office Ordinance No. 64 of 2007), the accompanying consolidated balance sheets at March 31 and September 30, 2012, and the consolidated statements of income and consolidated statements of comprehensive income for the three and six months ended September 30, 2011 and 2012 and cash flows for the six months ended September 30, 2011 and 2012 of NTT and its subsidiaries (“NTT Group”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain disclosures required by U.S. GAAP have been omitted.

(1) Application of New Accounting Standards

Presentation of Comprehensive Income

Effective April 1, 2012, NTT Group adopted Accounting Standards Update (“ASU”) 2011-05 “Presentation of Comprehensive Income.” This ASU requires comprehensive income to be reported in either a single continuous statement or in two separate but consecutive statements reporting net income and other comprehensive income, and eliminates the option to report other comprehensive income and its components in the statement of changes in stockholder’s equity. In adopting the ASU, NTT Group implemented the two separate but consecutive statements reporting method.

(2) Earnings per Share

Basic earnings per share (“EPS”) is computed based on the average number of shares outstanding during the period and is appropriately adjusted for any free distribution of common stock. Diluted EPS assumes the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock. Since NTT did not issue dilutive securities for the six months ended September 30, 2011 and 2012, there is no difference between basic EPS and diluted EPS.

(3) Reclassifications

Certain items for prior periods’ financial statements have been reclassified to conform to the presentation for the three and six months ended September 30, 2012.

9

2. Inventories:

Inventories at March 31 and September 30, 2012 comprised the following:

	Millions of yen
	March 31, 2012		September 30, 2012
Telecommunications equipment to be sold and materials	¥	160,482	¥	190,270
Projects in progress		101,052		122,573
Supplies		67,839		78,760
Total	¥	329,373	¥	391,603

10

3. Equity:

Outstanding shares and treasury stock –

Changes in NTT’s shares of common stock and treasury stock for the fiscal year ended March 31, 2012 and for the six months ended September 30, 2012 are as follows:

	Change in shares
	Issued shares			Treasury stock
Balance at March 31, 2011		1,448,659,067			125,524,000
Acquisition of treasury stock under resolution of the board of directors		—			99,334,200
Acquisition of treasury stock through purchase of less-than-one-unit shares		—			64,112
Resale of treasury stock to holders of less-than-one-unit shares		—			(28,668	)
Cancellation of treasury stock under resolution of the board of directors		(125,461,832	)		(125,461,832	)
Balance at March 31, 2012		1,323,197,235			99,431,812
Acquisition of treasury stock under resolution of the board of directors		—			2,003,400
Acquisition of treasury stock through purchase of less-than-one-unit shares		—			8,394
Resale of treasury stock to holders of less-than-one-unit shares		—			(6,782	)
Balance at September 30, 2012		1,323,197,235			101,436,824

On May 13, 2011, the board of directors resolved that NTT may acquire up to a total not exceeding 60 million outstanding shares of its common stock at an amount in total not exceeding ¥280 billion from May 16, 2011 through September 30, 2011. Based on this resolution, NTT repurchased 57,513,600 shares of its common stock at ¥223,440 million on July 5, 2011 using the Tokyo Stock Exchange Trading Network Off-Auction Own Share Repurchase Trading System (“ToSTNeT-3”).

On November 9, 2011, the board of directors resolved that NTT will cancel 125,461,832 shares held as treasury stock on November 15, 2011, and that NTT may acquire up to a total not exceeding 44 million outstanding shares of its common stock at an amount in total not exceeding ¥220 billion from November 16, 2011 through March 30, 2012. As a result of this cancellation, “Retained earnings” decreased by ¥566,551 million. NTT repurchased 41,820,600 shares of its common stock at ¥158,291 million on February 8, 2012 using ToSTNeT-3.

On September 19, 2012, the board of directors resolved that NTT may acquire up to a total not exceeding 42 million outstanding shares of its common stock at an amount in total not exceeding ¥150 billion from September 20, 2012 through March 29, 2013. Based on this resolution, NTT repurchased 2,003,400 shares of its common stock for a total purchase price of ¥7,701 million in September 2012. NTT also repurchased 11,038,700 shares of its common stock for a total purchase price of ¥42,299 million in October 2012.

11

Dividend –

(1) Cash dividends paid

Resolution	The shareholders’ meeting on June 22, 2012
Class of shares	Common stock
Source of dividends	Retained earnings
Total cash dividends paid	¥85,664 million
Cash dividends per share	¥70
Date of record	March 31, 2012
Date of payment	June 25, 2012

(2) Cash dividends declared

Resolution	The board of directors’ meeting on November 8, 2012
Class of shares	Common stock
Source of dividends	Retained earnings
Total cash dividends declared	¥97,741 million
Cash dividends per share	¥80
Date of record	September 30, 2012
Date of payment	December 10, 2012

12

Changes in equity –

Changes in total equity, NTT shareholders’ equity and equity attributable to noncontrolling interests for the six months ended September 30, 2011 and 2012 are as follows:

	Millions of yen
	NTT  shareholders’ equity			Noncontrolling interests			Total equity
Balance at March 31, 2011	¥	8,020,734		¥	2,060,198		¥	10,080,932
Dividends paid to NTT Shareholders		(79,388	)		—			(79,388	)
Dividends paid to noncontrolling interests		—			(43,213	)		(43,213	)
Acquisition of treasury stock		(223,571	)		—			(223,571	)
Resale of treasury stock		65			—			65
Other equity transactions		(1,193	)		6,017			4,824
Net income		296,437			110,652			407,089
Other comprehensive income (loss)		(9,123	)		(9,266	)		(18,389	)
Unrealized gain (loss) on securities		(5,070	)		(4,010	)		(9,080	)
Unrealized gain (loss) on derivative instruments		54			(204	)		(150	)
Foreign currency translation adjustments		(7,440	)		(4,831	)		(12,271	)
Pension liability adjustments		3,333			(221	)		3,112
Balance at September 30, 2011	¥	8,003,961		¥	2,124,388		¥	10,128,349

	Millions of yen
	NTT  shareholders’ equity			Noncontrolling interests			Total equity
Balance at March 31, 2012	¥	7,882,587		¥	2,165,142		¥	10,047,729
Dividends paid to NTT Shareholders		(85,664	)		—			(85,664	)
Dividends paid to noncontrolling interests		—			(44,856	)		(44,856	)
Acquisition of treasury stock		(7,731	)		—			(7,731	)
Resale of treasury stock		24			—			24
Other equity transactions		(558	)		9,934			9,376
Net income		293,415			103,487			396,902
Other comprehensive income (loss)		20,836			(1,523	)		19,313
Unrealized gain (loss) on securities		9,443			2,964			12,407
Unrealized gain (loss) on derivative instruments		(788	)		61			(727	)
Foreign currency translation adjustments		4,079			(4,537	)		(458	)
Pension liability adjustments		8,102			(11	)		8,091
Balance at September 30, 2012	¥	8,102,909		¥	2,232,184		¥	10,335,093

13

4. Fair value measurements:

The inputs to valuation techniques used to measure fair value are required to be categorized by the fair value hierarchy. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

• Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

• Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3 - Inputs are unobservable inputs for the asset or liability.

Assets and liabilities measured at fair value on a recurring basis as of March 31 and September 30, 2012 are as follows:

	Millions of yen
	March 31, 2012
	Fair value measurements using
	Total		Level  1(*1)		Level  2(*2)		Level  3(*3)
Assets
Available-for-sale securities:
Domestic equity securities	¥	81,850	¥	81,747	¥	103	¥	—
Foreign equity securities		98,917		98,917		—		—
Domestic debt securities		32,516		6,272		23,516		2,728
Foreign debt securities		12,069		419		11,650		—
Derivatives:
Forward exchange contracts		920		—		920		—
Interest rate swap agreements		153		—		153		—
Currency swap agreements		2,160		—		2,160		—
Liabilities
Derivatives:
Forward exchange contracts		995		—		995		—
Interest rate swap agreements		1,676		—		1,676		—
Currency swap agreements		1,769		—		1,769		—
Currency option agreements	¥	1,096	¥	—	¥	1,096	¥	—

There were no transfers between Level 1 and Level 2.

Level 3 reconciliation is not disclosed, since the amounts in Level 3 are immaterial.

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	Millions of yen
	September 30, 2012
	Fair value measurements using
	Total		Level  1(*1)		Level  2(*2)		Level  3(*3)
Assets
Available-for-sale securities:
Domestic equity securities	¥	76,316	¥	76,219	¥	97	¥	—
Foreign equity securities		109,028		109,028		—		—
Domestic debt securities		35,423		5,958		26,134		3,331
Foreign debt securities		12,220		8		12,212		—
Derivatives:
Forward exchange contracts		664		—		664		—
Currency swap agreements		108		—		108		—
Liabilities
Derivatives:
Forward exchange contracts		554		—		554		—
Interest rate swap agreements		2,221		—		2,221		—
Currency swap agreements		6,644		—		6,664		—
Currency option agreements	¥	903	¥	—	¥	903	¥	—

(*1) Quoted prices for identical assets or liabilities in active markets

(*2) Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs derived principally from observable market data

(*3) Unobservable inputs

There were no transfers between Level 1 and Level 2.

Level 3 reconciliation is not disclosed, since the amounts in Level 3 are immaterial.

Available-for-sale securities –

Available-for-sale securities comprises marketable equity securities and debt securities, and financial instruments classified as available-for-sale securities. If active market prices are available, fair value is measured by quoted prices for identical assets in active markets, which classified to Level 1. If active market prices are not available, fair value is measured by inputs derived principally from observable market data provided by financial institutions, which is classified to Level 2. In case fair value is measured by inputs derived from unobservable data, it is classified to Level 3.

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Derivatives –

Derivatives comprises forward exchange contracts, interest rate swap agreements, currency swap agreements and currency option agreements. Fair value of derivatives is measured by inputs derived principally from observable market data provided by financial institutions, which is classified to Level 2.

Assets and liabilities measured at fair value on a nonrecurring basis for the six months ended September 30, 2011 and 2012 were immaterial.

5. Segment and geographic information:

The operating segments reported below are those for which segment-specific financial information is available. NTT Group’s chief operating decision maker uses this financial information to make decisions on the allocation of financial resources and to evaluate business performance. Accounting policies used to determine segment profit/loss are consistent with those used to prepare the consolidated financial statements in accordance with accounting principles generally accepted in the United States.

The regional communications business segment principally comprises revenues from fixed voice related services, IP/packet communications services, sales of telecommunications equipment, and other operating revenues.

The long distance and international communications business segment principally comprises revenues from fixed voice related services, IP/packet communications services, system integration services, and other operating revenues.

The mobile communications business segment principally comprises revenues from mobile voice related services, IP/packet communications services, and sales of telecommunications equipment.

The data communications business segment principally comprises revenues from system integration services.

The other segment principally comprises operating revenues from such activities as building maintenance, real estate rental, systems development, leasing, and research and development.

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Business segments –

Sales and operating revenue:

	Millions of yen
For the six months ended September 30	2011			2012
Sales and operating revenue:
Regional communications business -
External customers	¥	1,636,358		¥	1,594,338
Intersegment		224,174			213,907
Total		1,860,532			1,808,245
Long distance and international communications business -
External customers		772,268			763,260
Intersegment		50,496			51,159
Total		822,764			814,419
Mobile communications business -
External customers		2,096,775			2,188,733
Intersegment		16,207			18,587
Total		2,112,982			2,207,320
Data communications business -
External customers		507,144			534,131
Intersegment		64,275			73,214
Total		571,419			607,345
Other -
External customers		142,035			156,930
Intersegment		357,825			408,313
Total		499,860			565,243
Elimination		(712,977	)		(765,180	)
Consolidated total	¥	5,154,580		¥	5,237,392

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	Millions of yen
For the three months ended September 30	2011			2012
Sales and operating revenue:
Regional communications business -
External customers	¥	823,073		¥	799,515
Intersegment		112,881			108,262
Total		935,954			907,777
Long distance and international communications business -
External customers		393,102			386,685
Intersegment		24,224			25,466
Total		417,326			412,151
Mobile communications business -
External customers		1,056,676			1,122,921
Intersegment		9,017			12,118
Total		1,065,693			1,135,039
Data communications business -
External customers		266,572			274,647
Intersegment		33,779			36,245
Total		300,351			310,892
Other -
External customers		77,805			77,692
Intersegment		190,377			235,390
Total		268,182			313,082
Elimination		(370,278	)		(417,481	)
Consolidated total	¥	2,617,228		¥	2,661,460

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Segment profit:

	Millions of yen
For the six months ended September 30	2011		2012
Segment profit:
Regional communications business	¥	53,157	¥	49,992
Long distance and international communications business		60,273		66,210
Mobile communications business		506,278		474,741
Data communications business		34,877		31,391
Other		23,628		34,465
Total segment profit		678,213		656,799
Elimination		7,259		6,170
Consolidated operating income	¥	685,472	¥	662,969
	Millions of yen
For the three months ended September 30	2011		2012
Segment profit:
Regional communications business	¥	28,517	¥	29,122
Long distance and international communications business		29,248		35,683
Mobile communications business		239,677		206,678
Data communications business		20,964		16,604
Other		14,469		19,097
Total segment profit		332,875		307,184
Elimination		3,322		3,478
Consolidated operating income	¥	336,197	¥	310,662

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Transfers between operating segments are made at arms-length prices. Operating income is sales and operating revenues less costs and operating expenses.

Geographic information is not presented due to the immateriality of revenue attributable to customers and operations outside of Japan.

There have been no sales and operating revenue from transactions with a single external customer amounting to 10% or more of NTT’s revenues for the six months ended September 30, 2011 and 2012.

6. Research and development expenses:

Research and development expenses are charged to income as incurred and such amounts charged to income for the six months ended September 30, 2011 and 2012 were ¥121,349 million and ¥127,163 million, respectively. Such amounts charged to income for the three months ended September 30, 2011 and 2012 were ¥63,821 million and ¥67,409 million, respectively.

7. Financing receivables:

NTT Group has certain “Financing receivables” including loans and lease receivables. These financing receivables are mainly held by the financial subsidiaries of NTT. NTT manages these financing receivables by classifying them into “Installment sales receivable,” “Lease receivable,” “Loans receivable,” “Credit receivable” and “Others.”

The allowance for doubtful accounts against financing receivables collectively evaluated for impairment is computed based on each historical bad debt experience. The allowance for doubtful accounts against financing receivables individually evaluated for impairment is computed based on the estimated uncollectible amount based on an analysis of certain individual accounts. In addition, financing receivables that are determined to be uncollectible due to, among other factors, the condition of the debtor are written off at the time of determination.

Rollforward of allowance for credit losses and recorded investment in financing receivables at September 30, 2011 and 2012 are as follows:

	Millions of yen
	Installment sales receivable			Lease receivable			Loans receivable			Credit receivable			Others			Total
Allowance for doubtful accounts:
Balance at March 31, 2011		7,593			26,391			12,091			4,877			73			51,025
Provision		1,156			(988	)		(50	)		2,502			14			2,634
Charge off		(1,822	)		(1,301	)		(1,599	)		(2,453	)		(66	)		(7,241	)
Balance at September 30, 2011		6,927			24,102			10,442			4,926			21			46,418
Collectively evaluated for impairment		5,092			12,992			5,508			4,926			17			28,535
Individually evaluated for impairment		1,835			11,110			4,934			—			4			17,883
Financing receivable:
Balance at September 30, 2011		322,068			397,957			62,898			212,819			571			996,313
Collectively evaluated for impairment		319,857			383,810			54,040			212,819			496			971,022
Individually evaluated for impairment		2,211			14,147			8,858			—			75			25,291

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	Millions of yen
	Installment sales receivable			Lease receivable			Loans receivable			Credit receivable			Others			Total
Allowance for doubtful accounts:
Balance at March 31, 2012		7,473			16,794			8,372			4,683			78			37,400
Provision		1,586			(841	)		34			2,176			(4	)		2,951
Charge off		(1,822	)		(1,182	)		(198	)		(2,880	)		—			(6,082	)
Recovery		4			86			17			1			—			108
Balance at September 30, 2012		7,241			14,857			8,225			3,980			74			34,377
Collectively evaluated for impairment		6,330			6,955			4,050			3,980			20			21,335
Individually evaluated for impairment		911			7,902			4,175			—			54			13,042
Financing receivable:
Balance at September 30, 2012		458,657			348,585			71,997			232,946			1,006			1,113,191
Collectively evaluated for impairment		457,447			338,155			64,105			232,946			917			1,093,570
Individually evaluated for impairment		1,210			10,430			7,892			—			89			19,621

8. Contingent liabilities:

Contingent liabilities at September 30, 2012 for loans guaranteed amounted to ¥47,174 million.

At September 30, 2012, NTT Group had no material litigation or claims outstanding, pending or threatened against it, which would be expected to have a material adverse effect on NTT’s consolidated financial position or results of operations.

9. Subsequent events:

Please see note 3 regarding NTT’s repurchase of its common stock.

In October 2012, in response to the decision of the Supreme Court of the Philippines regarding the Filipino-alien equity requirement applicable to public utilities companies, Philippine Long Distance Telephone Company (“PLDT”), which is partially owned by NTT, newly issued voting preferred stock. As a result, the percentage of NTT’s voting rights in PLDT decreased to approximately 12%, and NTT could not exercise significant influence over PLDT. Accordingly, NTT plans to cease the application of the equity method in accounting for its investment in PLDT beginning with the three-month period ending December 31, 2012.

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