Form 6-K

6-K 1 d271546d6k.htm FORM 6-K Form 6-K

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, 2016

Commission File Number 1-8910

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

(Translation of registrant’s name into English)

OTEMACHI FIRST SQUARE, EAST TOWER

5-1, OTEMACHI 1-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):

ANNOUNCEMENT OF FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2016

On November 11, 2016, the registrant filed with the Tokyo Stock Exchange information as to the registrant’s financial condition and results of operations at and for the three and six months ended September 30, 2016. Attached hereto is a copy of the press release and supplementary data relating thereto, both dated November 11, 2016, pertaining to such financial condition and results of operations, as well as forecasts for the registrant’s operations for the fiscal year ending March 31, 2017. The consolidated financial information of the registrant and that of its subsidiary NTT DOCOMO, INC., included in the press release and the supplementary data relating thereto, were prepared on the basis of accounting principles generally accepted in the United States. The non-consolidated financial information of the registrant and that of each of the registrant’s three wholly-owned subsidiaries, Nippon Telegraph and Telephone East Corporation, Nippon Telegraph and Telephone West Corporation and NTT Communications Corporation, as well as the consolidated financial information of its subsidiary NTT DATA CORPORATION, included in the press release and the supplementary data relating thereto, were prepared on the basis of accounting principles generally accepted in Japan. The consolidated financial information of the registrant’s subsidiary Dimension Data Holdings plc, included in the supplementary data related to the press release, was prepared on the basis of International Financial Reporting Standards (“IFRS”). The financial information for the three and six months ended September 30, 2016 in the press release is unaudited.

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 information on any website referenced herein or in the attached material is not incorporated by reference herein or therein.

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/ Takashi Ameshima
	Name:	Takashi Ameshima
	Title:	Vice President
		Investor Relations Office

Date: November 14, 2016


Financial Results Release	November 11, 2016
For the Six Months Ended September 30, 2016	[U.S. GAAP	]


Name of registrant	:	Nippon Telegraph and Telephone Corporation (“NTT”)
Code No.	:	9432 (URL http://www.ntt.co.jp/ir/)
Stock exchanges on which the Company’s shares are listed	:	Tokyo
Representative	:	Hiroo Unoura, President and Chief Executive Officer
Contact	:	Takashi Ameshima, Head of IR, Finance and Accounting Department / TEL +81-3-6838-5481
Scheduled filing date of quarterly securities report	:	November 14, 2016
Scheduled date of dividend payments	:	December 12, 2016
Supplemental material on quarterly results	:	Yes
Presentation on quarterly results	:	Yes (for institutional investors and analysts)

1.	Consolidated Financial Results for the Six Months Ended September 30, 2016 (April 1, 2016 – September 30, 2016)

Amounts are rounded to the nearest million yen.

(1) Consolidated Results of Operations


	(Millions of yen)
	Operating Revenues				Operating Income				Income before Income Taxes				Net Income Attributable to NTT
Six months ended September 30, 2016		5,524,328	(1.2	)%		926,484	26.3	%		896,905	25.0	%		476,096	26.2	%
Six months ended September 30, 2015		5,588,958	4.0	%		733,464	24.1	%		717,419	21.2	%		377,319	30.0	%

Note: Percentages above represent changes from the corresponding period of the previous fiscal year.


	Basic Earnings per Share Attributable to NTT			Diluted Earnings per Share Attributable to NTT
Six months ended September 30, 2016		230.90	(yen)		—	(yen)
Six months ended September 30, 2015		178.37	(yen)		—	(yen)


Notes:	1.	Comprehensive income (loss) attributable to NTT:
		For the three months ended September 30, 2016:	319,189 million yen (3.0)%
		For the three months ended September 30, 2015:	328,955 million yen 25.4%
	2.	NTT conducted a two-for-one stock split of its common stock, with an effective date of July 1, 2015. The figures for Basic Earnings per Share Attributable to NTT have been adjusted to reflect the impact of the stock split as if the stock split had occurred at the beginning of the prior fiscal year.

(2) Consolidated Financial Position


	(Millions of yen, except per share amounts)
	Total Assets		Total Equity		NTT Shareholders’ Equity		Equity Ratio (Ratio of NTT Shareholders’ Equity to Total Assets)		NTT Shareholders’ Equity per Share
September 30, 2016		20,447,251		11,136,390		8,757,222		42.8%		4,298.90 (yen)
March 31, 2016		21,035,931		11,240,082		8,833,806		42.0%		4,214.32 (yen)

2.	Dividends

Annual Dividends

End of the first quarter

End of the second quarter

End of the third quarter

Year-end

Total

Year Ended March 31, 2016

—

50.00 (yen)

—

60.00 (yen)

110.00 (yen)

Year Ending March 31, 2017

—

60.00 (yen)

—

Year Ending March 31, 2017 (Forecasts)

—

60.00 (yen)

120.00 (yen)

Note:

Change in dividend forecasts during the six months ended September 30, 2016: None

3.	Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2017 (April 1, 2016 – March 31, 2017)


	(Millions of yen, except per share amount)
	Operating Revenues				Operating Income				Income before Income Taxes				Net Income Attributable to NTT				Basic Earnings per Share Attributable to NTT
Year Ending March 31, 2017		11,410,000	(1.1	)%		1,470,000	9.0	%		1,440,000	8.3	%		770,000	4.4	%		376.00	(yen)


Notes:	1.	Percentages above represent changes from the previous fiscal year.
	2.	Change in consolidated financial results forecasts for the fiscal year ending March 31, 2017 during the six months ended September 30, 2016: Yes

– 1 –

* Notes:

(1)

Change in significant consolidated subsidiaries during the six months ended September 30, 2016 that resulted in changes in the scope of consolidation: None

(2)

Adoption of accounting which is simplified or exceptional for quarterly consolidated financial statements: None

(3)

Change of accounting policy

Change due to revision of accounting standards and other regulations: None

ii.

Other change: Yes

(For further details, please see “Others” on page 8.)

(4)

Number of shares outstanding (common stock)

Number of shares outstanding (including treasury stock):

September 30, 2016

2,096,394,470 shares

March 31, 2016

2,096,394,470 shares

ii.

Number of shares of treasury stock:

September 30, 2016

59,309,986 shares

March 31, 2016

255,269 shares

iii.

Weighted average number of shares outstanding:

For the six months ended September 30, 2016 : 2,061,934,989 shares

For the six months ended September 30, 2015 : 2,115,360,234 shares

Note:

NTT conducted a two-for-one stock split of its common stock, with an effective date of July 1, 2015. The figures for “Number of shares outstanding (common stock)” have been adjusted to reflect the impact of the stock split as if the stock split had occurred at the beginning of the prior fiscal year.

* Presentation on the status of quarterly review process:

This earnings release is not subject to the quarterly review process as required by the Financial Instruments and Exchange Act of Japan. As of the date of issuance of this earnings release, the review process on quarterly financial statements required by the Financial Instruments and Exchange Act is still ongoing.

* Explanation of earnings forecasts and other notes:

Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently available to NTT and certain assumptions that we regard as reasonable and therefore actual results may differ materially from those contained in or suggested by any forward-looking statements. With regard to the assumptions and other related matters concerning forecasts for the fiscal year ending March 31, 2017, please refer to pages 7 and 23.

On Friday, November 11, 2016, NTT will hold a presentation on its financial results for institutional investors and analysts. Shortly thereafter, NTT plans to post on its website explanatory details, along with the materials used at the presentation.

(Reference)

Non-consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2017 (April 1, 2016 – March 31, 2017)


	(Millions of yen, except per share amount)
	Operating Revenues				Operating Income				Recurring Profit				Net Income				Earnings per Share
Year Ending March 31, 2017		475,000	(9.0	)%		341,000	(11.2	)%		337,000	(11.7	)%		317,000	(52.5	)%		155.00	(yen	)


Note:	1.	Percentages above represent changes from the previous fiscal year.
	2.	Change in non-consolidated financial results forecasts for the fiscal year ending March 31, 2017 during the six months ended September 30, 2016: Yes

– 2 –

1. Qualitative Information

(1) Qualitative Information Relating to Consolidated Business Results

i. Consolidated results

Six-Month Period Ended September 30, 2016 (April 1, 2016 – September 30, 2016)


	(Billions of yen)
	Six Months Ended September 30, 2015		Six Months Ended September 30, 2016		Change			Percent Change
Operating revenues		5,589.0		5,524.3		(64.6	)		(1.2	)%
Operating expenses		4,855.5		4,597.8		(257.7	)		(5.3	)%
Operating income		733.5		926.5		193.0			26.3	%
Income before income taxes and equity in earnings (losses) of affiliated companies		717.4		896.9		179.5			25.0	%
Net income attributable to NTT		377.3		476.1		98.8			26.2	%

During the six months ended September 30, 2016, pursuant to its Medium-Term Management Strategy, adopted in May 2015, entitled “Towards the Next Stage 2.0,” NTT implemented measures to embark on a profit growth track by accelerating its self-transformation towards becoming a “Value Partner.”

<Efforts to Expand NTT’s Global Business and Increase Profit Generation>

NTT Group seeks to expand and establish its global business as a cornerstone of its business operations and to accelerate profit generation through the following initiatives.

Specifically, NTT Group promoted cross-selling through collaboration among its group companies, including businesses related to global networks, cloud migration, and IT outsourcing, and received orders from business operators such as Admin Re, a U.K. insurance company, and Public Transport Victoria , the transportation authority in the Australian state of Victoria.

Furthermore, each NTT Group Company has been resolutely engaged in optimizing services and operations and reducing procurement costs by continuously implementing cost reduction measures.

In addition, in order to support the above measures, NTT Group aims to strengthen its group governance and risk management, by increasing the transparency of information regarding group management, further unifying group accounting standards and practices, bolstering cash management, and enhancing collaboration within NTT Group’s global subsidiaries.

<Efforts to Optimize Domestic Network Businesses and Enhance Profitability>

NTT Group aimed to enhance profit generation of its domestic network businesses by optimizing capital investments and reducing costs. With regard to optimizing capital investments, NTT worked to improve the efficiency of its facility use and reduce procurement costs, in addition to simplifying and streamlining its network systems. A project team formed last year is in the process of reviewing various topics and initiatives aimed at generating profits.

In the regional communications business segment, NTT promoted initiatives for its “Hikari Collaboration Model” and subscriptions for Hikari access services for the “Hikari Collaboration Model” reached 6.9 million. In the mobile communications business segment, NTT worked to enhance profitability by increasing the sales of its “Kake-hodai &Pake-aeru” billing plan with the introduction of “Ultra-Pack,” for which subscriptions reached 33.4 million subscriptions. Through the above efforts, NTT worked to reduce costs beginning with controlling marketing costs.

<Efforts to Achieve Sustainable Growth >

The Japanese government has been developing and implementing a variety of policies centered on the Tokyo 2020 Olympic and Paralympic Games and the Japanese government’s “Vitalization of Local Economies” initiative. NTT Group plans to make use of these opportunities to accelerate migration to the B2B2X model and strengthen measures aimed at creating services that will become the standards of the next generation.

Specifically, NTT entered into a collaboration agreement with J. League and DAZN to promote the utilization of ICT through the “Smart Stadium Project” at J. League stadiums and club hometowns.

In addition, NTT Group entered into a collaboration agreement with FANUC Corporation with respect to Edge Computing Technology and the utilization of ICT infrastructure. Through this collaboration, NTT Group will support FANUC Corporation’s early-stage development and launch of the open platform “FANUC Intelligent Edge Link and Drive system (FIELD system)” service and its de facto standardization.

– 3 –

As a result of these efforts, NTT Group’s consolidated operating revenues for the six months ended September 30, 2016 were ¥5,524.3 billion (a decrease of 1.2% from the same period of the previous fiscal year), consolidated operating expenses were ¥4,597.8 billion (a decrease of 5.3% from the same period of the previous fiscal year), consolidated operating income was ¥926.5 billion (an increase of 26.3% from the same period of the previous fiscal year), consolidated income before income taxes and equity in earnings (losses) of affiliated companies was ¥896.9 billion (an increase of 25.0% from the same period of the previous fiscal year), and net income attributable to NTT was ¥476.1 billion (an increase of 26.2% from the same period of the previous fiscal year).


Notes:	(1)	The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States.
	(2)	NTT, NTT East, NTT West, NTT Communications, and NTT DOCOMO are Gold Partners (Telecommunications Services) for the Tokyo 2020 Olympic and Paralympic Games.

ii. Segment results

Results by business segment are as follows.

Regional Communications Business Segment

Six-Month Period Ended September 30, 2016 (April 1, 2016 – September 30, 2016)


	(Billions of yen)
	Six Months Ended September 30, 2015		Six Months Ended September 30, 2016		Change			Percent Change
Operating revenues		1,680.6		1,620.4		(60.1	)		(3.6	)%
Operating expenses		1,526.0		1,388.2		(137.8	)		(9.0	)%
Operating income		154.6		232.2		77.6			50.2	%

Operating revenues in the regional communications business segment for the six-month period ended September 30, 2016 decreased 3.6% from the same period of the previous fiscal year to ¥1,620.4 billion due to, among other things, a decrease in fixed voice-related revenues. On the other hand, operating expenses for the six-month period ended September 30, 2016 decreased 9.0% from the same period of the previous fiscal year to ¥1,388.2 billion due to efforts to streamline operating expenses, particularly with respect to sales-related expenses in connection with the expansion of the “Hikari Collaboration Model,” in addition to the effect of the change in the depreciation method of property, plant and equipment, among other factors. As a result, segment operating income for the six-month period ended September 30, 2016 increased 50.2% from the same period of the previous fiscal year to ¥232.2 billion.

Number of subscriptions


	(Thousands of subscriptions)
	As of March 31, 2016		As of September 30, 2016		Change		Percent Change
FLET’S Hikari (including Hikari Collaboration Model)⁽¹⁾		19,259		19,704		445		2.3	%
NTT East		10,666		10,958		291		2.7	%
NTT West		8,593		8,746		153		1.8	%
Hikari Collaboration Model		4,691		6,917		2,226		47.5	%
NTT East		3,077		4,337		1,260		41.0	%
NTT West		1,615		2,580		966		59.8	%
Hikari Denwa ⁽²⁾		17,374		17,545		170		1.0	%
NTT East		9,123		9,242		120		1.3	%
NTT West		8,252		8,302		51		0.6	%

– 4 –

Notes:

(1)

Number of FLET’S Hikari (including Hikari Collaboration Model) subscribers includes subscribers to “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, subscribers to “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West, and subscribers to the “Hikari Collaboration Model,” the wholesale provision of services by NTT East and NTT West to service providers.

(2)	Figures for “Hikari Denwa” indicate the number of channels (in thousands), and include wholesale services provided by NTT East and NTT West to service providers.

Long Distance and International Communications Business Segment

Six-Month Period Ended September 30, 2016 (April 1, 2016 – September 30, 2016)


	(Billions of yen)
	Six Months Ended September 30, 2015		Six Months Ended September 30, 2016		Change			Percent Change
Operating revenues		1,097.2		1,038.8		(58.4	)		(5.3	)%
Operating expenses		1,049.6		996.7		(53.0	)		(5.0	)%
Operating income		47.6		42.2		(5.4	)		(11.4	)%

Operating revenues in the long distance and international communications business segment for the six-month period ended September 30, 2016 decreased 5.3% from the same period of the previous fiscal year to ¥1,038.8 billion. This decrease was due to, among other things, a decrease in fixed voice-related revenues and the impact of exchange rate fluctuations on NTT’s overseas businesses, partially offset by an increase in IP/packet communications revenues due to the expansion of “OCN Hikari” and other services. On the other hand, operating expenses for the six-month period ended September 30, 2016 decreased 5.0% from the same period of the previous fiscal year to ¥996.7 billion primarily due to the streamlining of sales-related expenses, among other things. As a result, segment operating income for the six-month period ended September 30, 2016 decreased 11.4% from the same period of the previous fiscal year to ¥42.2 billion.

Mobile Communications Business Segment

Six-Month Period Ended September 30, 2016 (April 1, 2016 – September 30, 2016)


	(Billions of yen)
	Six Months Ended September 30, 2015		Six Months Ended September 30, 2016		Change			Percent Change
Operating revenues		2,215.0		2,288.0		73.0			3.3	%
Operating expenses		1,753.9		1,704.3		(49.6	)		(2.8	)%
Operating income		461.2		583.7		122.6			26.6	%

Despite a decline in revenues from sales of equipment, operating revenues for the mobile communications business segment for the six-month period ended September 30, 2016 increased 3.3% from the same period of the previous fiscal year to ¥2,288.0 billion due to a recovery in IP/packet communications revenues resulting from an increase in the number of subscribers to “Kake-hodai & Pake-aeru” and “docomo Hikari,” as well as an increase in revenues from “dmarket” services and from the Smart Life area. On the other hand, despite an increase in revenue-linked expenses in the “docomo Hikari” and Smart Life areas, operating expenses for the six-month period ended September 30, 2016 decreased 2.8% from the same period of the previous fiscal year to ¥1,704.3 billion due to a decrease in the cost of equipment sold, efforts to streamline costs, and a decrease in depreciation expense resulting from the change of the depreciation method of property, plant and equipment. As a result, segment operating income for the six-month period ended September 30, 2016 increased 26.6% from the same period of the previous fiscal year to ¥583.7 billion.

Number of subscriptions


	(Thousands of subscriptions)
	As of March 31, 2016		As of September 30, 2016		Change			Percent Change
Mobile phone services		70,964		72,943		1,980			2.8	%
“Kake-hodai & Pake-aeru”		29,704		33,416		3,712			12.5	%
LTE(Xi) services		38,679		41,281		2,603			6.7	%
FOMA services		32,285		31,662		(623	)		(1.9	)%

Note:

The number of Mobile phone services subscribers (including LTE (Xi) and FOMA services) includes subscriptions to communication module services.

– 5 –

Data Communications Business Segment

Six-Month Period Ended September 30, 2016 (April 1, 2016 – September 30, 2016)


	(Billions of yen)
	Six Months Ended September 30, 2015		Six Months Ended September 30, 2016		Change			Percent Change
Operating revenues		745.7		762.1		16.3			2.2	%
Operating expenses		707.5		726.2		18.6			2.6	%
Operating income		38.2		35.9		(2.3	)		(6.0	)%

Despite the impact of exchange rate fluctuations on NTT’s overseas businesses, operating revenues in the data communications business segment for the six-month period ended September 30, 2016 increased 2.2% from the same period of the previous fiscal year to ¥762.1 billion due to, among other things, expansion of NTT’s domestic businesses. On the other hand, operating expenses for the six-month period ended September 30, 2016 increased 2.6% from the same period of the previous fiscal year to ¥726.2 billion due to, among other things, an increase in revenue-linked expenses and the temporary effect of M&A related expenses. As a result, segment operating income for the six-month period ended September 30, 2016 decreased 6.0% from the same period of the previous fiscal year to ¥35.9 billion.

Other Business Segment

Six-Month Period Ended September 30, 2016 (April 1, 2016 – September 30, 2016)


	(Billions of yen)
	Six Months Ended September 30, 2015		Six Months Ended September 30, 2016		Change			Percent Change
Operating revenues		567.8		567.6		(0.2	)		(0.0	)%
Operating expenses		540.1		537.9		(2.2	)		(0.4	)%
Operating income		27.6		29.7		2.1			7.4	%

Operating revenues in the other business segment for the six-month period ended September 30, 2016 slightly decreased from the same period of the previous fiscal year to ¥567.6 billion due to a decrease in revenues of NTT Group’s real estate business, partially offset by an increase in revenues of NTT Group’s finance business, among other things. On the other hand, operating expenses for the six-month period ended September 30, 2016 also slightly decreased 0.4% from the same period of the previous fiscal year to ¥537.9 billion as a result of a decrease in revenue-linked expenses. As a result, segment operating income for the six-month period ended September 30, 2016 increased 7.4% from the same period of the previous fiscal year to ¥29.7 billion.

– 6 –

(2) Qualitative Information Relating to Consolidated Financial Position

Net cash provided by operating activities for the six-month period ended September 30, 2016 increased ¥121.1 billion (9.5%) from the same period of the previous fiscal year to ¥1,390.4 billion. This increase was due to, among other factors, an increase in operating income.

Net cash used in investing activities decreased ¥42.9 billion (4.7%) from the same period of the previous fiscal year to ¥876.5 billion. This decrease was due to, among other factors, a decrease in capital investments.

Net cash used in financing activities increased ¥371.4 billion (194.4%) from the same period of the previous fiscal year to ¥562.4 billion. This increase was due to, among other factors, an increase in stock repurchases by NTT and an increase in stock repurchases by NTT’s subsidiaries.

As a result of the above, NTT Group’s consolidated cash and cash equivalents as of September 30, 2016 totaled ¥1,014.5 billion, a decrease of ¥73.8 billion (6.8%) from the end of the previous fiscal year.


	(Billions of yen)
	Six Months Ended September 30, 2015			Six Months Ended September 30, 2016			Change			Percent Change
Cash flows provided by operating activities		1,269.4			1,390.4			121.1			9.5	%
Cash flows used in investing activities		(919.5	)		(876.5	)		42.9			4.7	%
Cash flows used in financing activities		(191.0	)		(562.4	)		(371.4	)		(194.4	)%

(3) Qualitative Information Relating to Consolidated Results Forecasts

In May 2015, NTT Group adopted and announced its Medium-Term Management Strategy, entitled “Towards the Next Stage 2.0,” and implemented measures to embark on a profit growth track by accelerating its self-transformation as a “Value Partner.” At the same time, NTT Group proactively launched efforts to further promote the B2B2X model. As a result, NTT Group has revised the forecasts for its financial results as follows.

The forecast for NTT Group’s operating revenues has been revised downward by ¥40.0 billion from the initial forecast to ¥11,410.0 billion, due to, among other factors, the effects of yen appreciation on foreign exchange rates, partially offset by the increase in revenues expected from the expansion of overseas business.

On the other hand, the forecast for NTT Group’s operating income has been revised upward by ¥40.0 billion from the initial forecast to ¥1,470.0 billion due to, among other factors, first-half results in its domestic business.

For the assumptions used in the consolidated results forecasts and other related matters, please see page 23.

– 7 –

2. OTHERS

(1)	Change in significant consolidated subsidiaries during the six months ended September 30, 2016, that resulted in changes in the scope of consolidation: None

(2)	Adoption of accounting which is simplified or exceptional for quarterly consolidated financial statements: None

(3)	Change of accounting policy: Yes

Change in depreciation method

NTT and its subsidiaries in Japan traditionally used the declining-balance method for calculating depreciation of property, plant, and equipment. Effective April 1, 2016, NTT and its subsidiaries adopted the straight-line method of depreciation.

As NTT Group plans to complete the expansion of its service areas for fiber-optic services and LTE services in the network business, it has been shifting the focus of its capital investments to improving the efficiency in using facilities while maintaining the current functionality. With respect to network services, NTT has started providing the “Hikari Collaboration Model,” the wholesale provision of fiber-optic access services, which can be used by customers of both fixed-line communications services and mobile communications services in the long-term. Through these efforts, NTT expects the stable usage of property, plant, and equipment going forward.

For these reasons, NTT believes that the straight-line depreciation method better reflects the pattern of consumption of the future benefits to be derived from those assets being depreciated.

The effect of the change in the depreciation method is recognized prospectively as a change in the accounting estimate pursuant to FASB ASC-250, “Accounting Changes and Error Corrections.”

In line with the change in the depreciation method, NTT reviewed the residual carrying amount of property, plant, and equipment and other necessary items and made changes where necessary.

As a result of the change in the depreciation method, depreciation expenses on a consolidated basis for the six and three months ended September 30, 2016 decreased by ¥126,663 million and ¥63,039 million, respectively. Consolidated net income attributable to NTT and consolidated basic net income attributable to NTT per share for the six and three months ended September 30, 2016 increased by ¥70,817 million and ¥34,773 million, and ¥34.34 and ¥17.07, respectively.

Change in Fiscal Year End of Certain Subsidiaries

As of April 1, 2016, certain of NTT’s consolidated subsidiaries changed their fiscal year ends from December 31 to March 31, thereby eliminating a three-month discrepancy between their fiscal year ends and NTT’s fiscal year end in NTT’s quarterly financial statements. The elimination of this discrepancy was applied as a change in accounting policy. NTT did not make any retrospective adjustments to its financial statements as these changes did not have a material impact on the consolidated financial statements for the six months ended September 30, 2015 or the year ended March 31, 2016. As a result of this change, NTT’s retained earnings, accumulated other comprehensive income (loss) and noncontrolling interests have decreased by ¥214 million, ¥1,454 million and ¥1,408 million, respectively, in each case as of the beginning of the current fiscal year. In addition, the change in cash and cash equivalents resulting from this change in fiscal year end is presented in the consolidated statements of cash flows under “Increase (decrease) in cash and cash equivalents due to change in fiscal year end of consolidated subsidiaries.”

– 8 –

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets


	Millions of yen
	March 31, 2016			September 30, 2016			Increase (Decrease)
ASSETS
Current assets:
Cash and cash equivalents	¥	1,088,275		¥	1,014,481		¥	(73,794	)
Short-term investments		33,076			86,887			53,811
Notes and accounts receivable, trade		2,733,116			2,421,865			(311,251	)
Allowance for doubtful accounts		(45,236	)		(51,389	)		(6,153	)
Accounts receivable, other		473,192			455,112			(18,080	)
Inventories		414,581			440,509			25,928
Prepaid expenses and other current assets		469,529			604,298			134,769
Deferred income taxes		260,446			244,026			(16,420	)

Total current assets		5,426,979			5,215,789			(211,190	)

Property, plant and equipment:
Telecommunications equipment		11,586,812			11,461,117			(125,695	)
Telecommunications service lines		15,870,097			15,942,341			72,244
Buildings and structures		6,069,437			6,079,447			10,010
Machinery, vessels and tools		1,996,898			1,974,823			(22,075	)
Land		1,273,209			1,271,328			(1,881	)
Construction in progress		382,196			416,130			33,934

		37,178,649			37,145,186			(33,463	)
Accumulated depreciation		(27,626,728	)		(27,687,110	)		(60,382	)

Net property, plant and equipment		9,551,921			9,458,076			(93,845	)

Investments and other assets:
Investments in affiliated companies		515,716			475,081			(40,635	)
Marketable securities and other investments		474,247			442,158			(32,089	)
Goodwill		1,229,208			1,134,735			(94,473	)
Software		1,212,482			1,171,417			(41,065	)
Other intangible assets		391,977			348,156			(43,821	)
Other assets		1,486,840			1,438,190			(48,650	)
Deferred income taxes		746,561			763,649			17,088

Total investments and other assets		6,057,031			5,773,386			(283,645	)

Total assets	¥	21,035,931		¥	20,447,251		¥	(588,680	)

– 9 –


	Millions of yen
	March 31, 2016			September 30, 2016			Increase (Decrease)
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	129,656		¥	172,174		¥	42,518
Current portion of long-term debt		476,777			510,032			33,255
Accounts payable, trade		1,572,797			1,144,216			(428,581	)
Current portion of obligations under capital leases		14,711			14,068			(643	)
Accrued payroll		430,248			419,247			(11,001	)
Accrued taxes on income		249,356			203,537			(45,819	)
Accrued consumption tax		83,481			74,183			(9,298	)
Advances received		290,132			313,326			23,194
Other		493,970			549,578			55,608

Total current liabilities		3,741,128			3,400,361			(340,767	)

Long-term liabilities:
Long-term debt (excluding current portion)		3,546,203			3,390,889			(155,314	)
Obligations under capital leases (excluding current portion)		27,630			25,959			(1,671	)
Liability for employees’ retirement benefits		1,688,611			1,708,783			20,172
Accrued liabilities for point programs		89,003			81,777			(7,226	)
Deferred income taxes		166,547			153,290			(13,257	)
Other		491,630			500,954			9,324

Total long-term liabilities		6,009,624			5,861,652			(147,972	)

Redeemable noncontrolling interests		45,097			48,848			3,751

Equity:
NTT shareholders’ equity
Common stock, no par value		937,950			937,950			—
Additional paid-in capital		2,879,560			2,878,687			(873	)
Retained earnings		5,074,234			5,424,348			350,114
Accumulated other comprehensive income (loss)		(57,055	)		(215,416	)		(158,361	)
Treasury stock, at cost		(883	)		(268,347	)		(267,464	)

Total NTT shareholders’ equity		8,833,806			8,757,222			(76,584	)

Noncontrolling interests		2,406,276			2,379,168			(27,108	)

Total equity		11,240,082			11,136,390			(103,692	)

Total liabilities and equity	¥	21,035,931		¥	20,447,251		¥	(588,680	)

– 10 –

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

SIX-MONTH PERIOD ENDED SEPTEMBER 30

Consolidated Statements of Income


	Millions of yen
	2015			2016			Increase (Decrease)
Operating revenues:
Fixed voice related services	¥	667,569		¥	619,316		¥	(48,253	)
Mobile voice related services		407,732			429,604			21,872
IP / packet communications services		1,875,303			1,901,368			26,065
Sale of telecommunications equipment		463,798			423,074			(40,724	)
System integration		1,437,299			1,397,071			(40,228	)
Other		737,257			753,895			16,638

		5,588,958			5,524,328			(64,630	)

Operating expenses:
Cost of services (excluding items shown separately below)		1,149,106			1,153,397			4,291
Cost of equipment sold (excluding items shown separately below)		431,113			406,441			(24,672	)
Cost of system integration (excluding items shown separately below)		1,034,476			986,249			(48,227	)
Depreciation and amortization		871,639			716,473			(155,166	)
Impairment losses
Goodwill		—			4,471			4,471
Other		3,631			10,197			6,566
Selling, general and administrative expenses		1,365,529			1,320,616			(44,913	)

		4,855,494			4,597,844			(257,650	)

Operating income		733,464			926,484			193,020

Other income (expenses):
Interest and amortization of bond discounts and issue costs		(22,064	)		(19,780	)		2,284
Interest income		8,737			8,621			(116	)
Other, net		(2,718	)		(18,420	)		(15,702	)

		(16,045	)		(29,579	)		(13,534	)

Income before income taxes and equity in earnings (losses) of affiliated companies		717,419			896,905			179,486

Income tax expense (benefit):
Current		239,266			246,678			7,412
Deferred		(11,961	)		34,766			46,727

		227,305			281,444			54,139

Income before equity in earnings (losses) of affiliated companies		490,114			615,461			125,347

Equity in earnings (losses) of affiliated companies		7,512			10,065			2,553

Net income		497,626			625,526			127,900

Less – Net income attributable to noncontrolling interests		120,307			149,430			29,123

Net income attributable to NTT	¥	377,319		¥	476,096		¥	98,777


*Per share of common stock:**
Weighted average number of shares outstanding (Shares)		2,115,360,234			2,061,934,989
Net income attributable to NTT (Yen)	¥	178.37		¥	230.90

*	“Per share of common stock” figures for the six months ended September 30, 2015 have been adjusted to reflect the two-for-one stock split carried out on July 1, 2015.

– 11 –

Consolidated Statements of Comprehensive Income


	Millions of yen
	2015			2016			Increase (Decrease)
Net income	¥	497,626		¥	625,526		¥	127,900
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities		(24,156	)		(18,302	)		5,854
Unrealized gain (loss) on derivative instruments		(849	)		(2,009	)		(1,160	)
Foreign currency translation adjustments		(32,160	)		(178,873	)		(146,713	)
Pension liability adjustments		1,107			5,812			4,705
Total other comprehensive income (loss)		(56,058	)		(193,372	)		(137,314	)
Total comprehensive income (loss)		441,568			432,154			(9,414	)
Less – Comprehensive income attributable to noncontrolling interests		112,613			112,965			352

Total comprehensive income (loss) attributable to NTT	¥	328,955		¥	319,189		¥	(9,766	)

– 12 –

THREE-MONTH PERIOD ENDED SEPTEMBER 30

Consolidated Statements of Income


	Millions of yen
	2015			2016			Increase (Decrease)
Operating revenues:
Fixed voice related services	¥	331,193		¥	307,546		¥	(23,647	)
Mobile voice related services		214,602			216,627			2,025
IP / packet communications services		941,595			953,319			11,724
Sale of telecommunications equipment		240,040			236,358			(3,682	)
System integration		764,256			708,761			(55,495	)
Other		390,815			384,978			(5,837	)

		2,882,501			2,807,589			(74,912	)

Operating expenses:
Cost of services (excluding items shown separately below)		593,062			606,143			13,081
Cost of equipment sold (excluding items shown separately below)		234,501			231,175			(3,326	)
Cost of system integration (excluding items shown separately below)		558,721			484,516			(74,205	)
Depreciation and amortization		439,064			357,275			(81,789	)
Impairment losses
Goodwill		—			4,471			4,471
Other		3,600			9,818			6,218
Selling, general and administrative expenses		678,846			675,102			(3,744	)

		2,507,794			2,368,500			(139,294	)

Operating income		374,707			439,089			64,382

Other income (expenses):
Interest and amortization of bond discounts and issue costs		(11,086	)		(9,774	)		1,312
Interest income		4,372			4,289			(83	)
Other, net		(17,954	)		17,194			35,148

		(24,668	)		11,709			36,377

Income before income taxes and equity in earnings (losses) of affiliated companies		350,039			450,798			100,759

Income tax expense (benefit):
Current		127,160			117,367			(9,793	)
Deferred		(16,449	)		25,152			41,601

		110,711			142,519			31,808

Income before equity in earnings (losses) of affiliated companies		239,328			308,279			68,951

Equity in earnings (losses) of affiliated companies		3,201			5,452			2,251

Net income		242,529			313,731			71,202

Less – Net income attributable to noncontrolling interests		58,383			81,263			22,880

Net income attributable to NTT	¥	184,146		¥	232,468		¥	48,322


Per share of common stock:
Weighted average number of shares outstanding (Shares)		2,113,548,297			2,037,089,579
Net income attributable to NTT (Yen)	¥	87.13		¥	114.12

– 13 –

Consolidated Statements of Comprehensive Income


	Millions of yen
	2015			2016			Increase (Decrease)
Net income	¥	242,529		¥	313,731		¥	71,202
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities		(22,215	)		(3,600	)		18,615
Unrealized gain (loss) on derivative instruments		(1,251	)		(5,387	)		(4,136	)
Foreign currency translation adjustments		(3,875	)		(78,093	)		(74,218	)
Pension liability adjustments		600			3,236			2,636
Total other comprehensive income (loss)		(26,741	)		(83,844	)		(57,103	)
Total comprehensive income (loss)		215,788			229,887			14,099
Less – Comprehensive income attributable to noncontrolling interests		56,486			64,675			8,189

Total comprehensive income (loss) attributable to NTT	¥	159,302		¥	165,212		¥	5,910

– 14 –

(3) Consolidated Statements of Cash Flows

SIX-MONTH PERIOD ENDED SEPTEMBER 30


	Millions of yen
	2015			2016			Increase (Decrease)
Cash flows from operating activities:
Net income	¥	497,626		¥	625,526		¥	127,900
Adjustments to reconcile net income to net cash provided by operating activities –
Depreciation and amortization		871,639			716,473			(155,166	)
Impairment losses		3,631			14,668			11,037
Deferred taxes		(11,961	)		34,766			46,727
Losses on disposals of property, plant and equipment		32,595			32,753			158
Gains on sales of property, plant and equipment		(10,620	)		(14,188	)		(3,568	)
Equity in (earnings) losses of affiliated companies		(7,512	)		(10,065	)		(2,553	)
(Increase) decrease in notes and accounts receivable, trade		178,611			263,040			84,429
(Increase) decrease in inventories		(86,458	)		(42,369	)		44,089
(Increase) decrease in other current assets		(77,437	)		(84,175	)		(6,738	)
Increase (decrease) in accounts payable, trade and accrued payroll		(260,930	)		(254,909	)		6,021
Increase (decrease) in accrued consumption tax		(71,141	)		(6,511	)		64,630
Increase (decrease) in advances received		53,104			34,708			(18,396	)
Increase (decrease) in accrued taxes on income		85,711			(43,784	)		(129,495	)
Increase (decrease) in other current liabilities		28,703			22,656			(6,047	)
Increase (decrease) in liability for employees’ retirement benefits		30,928			20,592			(10,336	)
Increase (decrease) in other long-term liabilities		3,330			15,576			12,246
Other		9,541			65,685			56,144

Net cash provided by operating activities	¥	1,269,360		¥	1,390,442		¥	121,082

– 15 –


	Millions of yen
	2015			2016			Increase (Decrease)
Cash flows from investing activities:
Payments for property, plant and equipment	¥	(634,850	)	¥	(638,891	)	¥	(4,041	)
Payments for intangibles		(180,705	)		(196,713	)		(16,008	)
Proceeds from sales of property, plant and equipment		33,159			21,480			(11,679	)
Payments for purchases of non-current investments		(26,287	)		(23,484	)		2,803
Proceeds from sales and redemptions of non-current investments		20,845			42,097			21,252
Acquisitions of subsidiaries, net of cash acquired		(109,540	)		(10,474	)		99,066
Payments for purchases of short-term investments		(13,828	)		(79,097	)		(65,269	)
Proceeds from redemptions of short-term investments		12,691			24,462			11,771
Other		(20,959	)		(15,909	)		5,050

Net cash used in investing activities		(919,474	)		(876,529	)		42,945

Cash flows from financing activities:
Proceeds from issuance of long-term debt		297,062			149,354			(147,708	)
Payments for settlement of long-term debt		(339,832	)		(201,187	)		138,645
Proceeds from issuance of short-term debt		2,943,685			1,987,414			(956,271	)
Payments for settlement of short-term debt		(2,919,457	)		(1,936,943	)		982,514
Dividends paid		(95,274	)		(125,768	)		(30,494	)
Proceeds from sale of (payments for acquisition of) treasury stock, net		(85,126	)		(267,514	)		(182,388	)
Acquisitions of shares of subsidiaries from noncontrolling interests		(4,202	)		(113,838	)		(109,636	)
Other		12,118			(53,917	)		(66,035	)

Net cash used in financing activities		(191,026	)		(562,399	)		(371,373	)

Effect of exchange rate changes on cash and cash equivalents		1,382			(22,670	)		(24,052	)

Net increase (decrease) in cash and cash equivalents		160,242			(71,156	)		(231,398	)

Cash and cash equivalents at beginning of period		849,174			1,088,275			239,101

Increase (decrease) in cash and cash equivalents due to change in fiscal year end of consolidated subsidiaries		2,028			(2,638	)		(4,666	)

Cash and cash equivalents at end of period	¥	1,011,444		¥	1,014,481		¥	3,037

– 16 –

(4) Going Concern Assumption

None

(5) Business Segments

SIX-MONTH PERIOD ENDED SEPTEMBER 30

1.	Operating revenues


	(Millions of yen)
	2015			2016			Increase (Decrease)
Regional communications business
External customers	¥	1,441,150		¥	1,352,117		¥	(89,033	)
Intersegment		239,420			268,316			28,896

Total		1,680,570			1,620,433			(60,137	)

Long distance and international communications business
External customers		1,056,567			995,603			(60,964	)
Intersegment		40,673			43,242			2,569

Total		1,097,240			1,038,845			(58,395	)

Mobile communications business
External customers		2,193,723			2,264,457			70,734
Intersegment		21,305			23,579			2,274

Total		2,215,028			2,288,036			73,008

Data communications business
External customers		700,644			713,590			12,946
Intersegment		45,069			48,466			3,397

Total		745,713			762,056			16,343

Other business
External customers		196,874			198,561			1,687
Intersegment		370,886			369,047			(1,839	)

Total		567,760			567,608			(152	)

Elimination		(717,353	)		(752,650	)		(35,297	)

Consolidated total	¥	5,588,958		¥	5,524,328		¥	(64,630	)


2. Segment profit
	(Millions of yen)
	2015			2016			Increase (Decrease)
Segment profit
Regional communications business	¥	154,611		¥	232,247		¥	77,636
Long distance and international communications business		47,600			42,180			(5,420	)
Mobile communications business		461,166			583,738			122,572
Data communications business		38,185			35,888			(2,297	)
Other business		27,635			29,691			2,056

Total segment profit		729,197			923,744			194,547

Elimination		4,267			2,740			(1,527	)

Consolidated total	¥	733,464		¥	926,484		¥	193,020

– 17 –

THREE-MONTH PERIOD ENDED SEPTEMBER 30

1.	Operating revenues


	(Millions of yen)
	2015			2016			Increase (Decrease)
Regional communications business
External customers	¥	723,170		¥	678,741		¥	(44,429	)
Intersegment		120,897			138,799			17,902

Total		844,067			817,540			(26,527	)

Long distance and international communications business
External customers		558,374			496,925			(61,449	)
Intersegment		20,731			22,900			2,169

Total		579,105			519,825			(59,280	)

Mobile communications business
External customers		1,127,354			1,167,395			40,041
Intersegment		10,810			11,971			1,161

Total		1,138,164			1,179,366			41,202

Data communications business
External customers		361,826			362,963			1,137
Intersegment		23,652			25,611			1,959

Total		385,478			388,574			3,096

Other business
External customers		111,777			101,565			(10,212	)
Intersegment		188,819			193,895			5,076

Total		300,596			295,460			(5,136	)

Elimination		(364,909	)		(393,176	)		(28,267	)

Consolidated total	¥	2,882,501		¥	2,807,589		¥	(74,912	)


2. Segment profit
	(Millions of yen)
	2015			2016			Increase (Decrease)
Segment profit
Regional communications business	¥	83,480		¥	104,456		¥	20,976
Long distance and international communications business		26,380			15,162			(11,218	)
Mobile communications business		226,400			285,425			59,025
Data communications business		19,327			14,020			(5,307	)
Other business		17,320			17,361			41

Total segment profit		372,907			436,424			63,517

Elimination		1,800			2,665			865

Consolidated total	¥	374,707		¥	439,089		¥	64,382

As indicated in “2(3) Change of accounting policy,” effective April 1, 2016, NTT and its subsidiaries in Japan adopted the straight-line method of depreciation and made changes to the residual carrying amount of property, plant, and equipment where necessary.

As a result of the change in depreciation method, segment profit on a consolidated basis for the six months ended September 30, 2016 increased by ¥51,221 million for “Regional communications business,” ¥4,354 million for “Long distance and international communications business,” ¥69,430 million for “Mobile communications business,” ¥2,187 million for “Other,” decreased by ¥529 million for “Data communications business,” and increased by ¥126,663 million for “total.” Segment profit on a consolidated basis for the three months ended September 30, 2016 increased by ¥23,621 million for “Regional communications business,” ¥1,812 million for “Long distance and international communications business,” ¥36,049 million for “Mobile communications business,” ¥297 million for “Data communications business,” ¥1,261 million for “Other,” and ¥63,039 million for “total.”

– 18 –

(6) NTT Shareholders’ Equity

1. Dividends

Cash dividends paid


Resolution		The shareholders’ meeting on June 24, 2016
Class of shares		Common stock
Source of dividends		Retained earnings
Total cash dividends paid		¥125,768 million
Cash dividends per share		¥60
Record date		March 31, 2016
Date of payment		June 27, 2016

Cash dividends declared


Resolution		The Board of Directors’ meeting on November 11, 2016
Class of shares		Common stock
Source of dividends		Retained earnings
Total cash dividends declared		¥122,225 million
Cash dividends per share		¥60
Record date		September 30, 2016
Date of payment		December 12, 2016

2. Treasury stock

On May 13, 2016, the board of directors resolved that NTT may acquire up to 68 million shares of its outstanding common stock for an amount in total not exceeding ¥350 billion from May 16, 2016 through March 31, 2017. Based on this resolution, NTT repurchased 59,038,100 shares of its common stock at ¥267,384 million on June 14, 2016 using the ToSTNeT-3, and concluded the repurchase of its common stock authorized by board of directors’ resolution.

(7) Subsequent events

Acquisitions of Dell Systems Corporation and Other Companies, and IT Services-Related Assets

On November 2, 2016 (U.S. time), NTT DATA, a subsidiary of NTT, acquired 100% of the outstanding shares of Dell Systems Corporation, Dell Technology & Solutions Limited, and Dell Services Pte. Ltd., and 100% of the equity interests of U.S. Services L.L.C., from Dell Inc., through three of its subsidiaries including NTT DATA, Inc., and such companies became its consolidated subsidiaries. In addition, NTT DATA acquired Dell Group’s IT services-related assets, mainly located in North America, through three of its subsidiaries including NTT DATA, Inc. The total acquisition cost for these acquisitions was US$2,999 million.

Through these acquisitions, NTT DATA intends to expand its business in various industries in North America and enhance its cloud services and BPO services using cutting-edge technology.

These acquisitions will be recorded in accordance with the acquisition method. However, as the initial accounting for the business combination has not been completed at the time of the announcement of these consolidated financial results, further details have not yet been disclosed.

NTT DOCOMO’s repurchase of its common stock

On April 28, 2016, the board of directors of NTT DOCOMO resolved that NTT DOCOMO may acquire up to 99,132,938 shares of its outstanding common stock for an amount in total not exceeding ¥192,514 million from May 2, 2016 through December 31, 2016. Based on this resolution, NTT DOCOMO repurchased 2,006,600 shares of its common stock at ¥5,113 million by way of market purchases based on the discretionary dealing contract in October 2016. As a result, NTT’s ownership interest in NTT DOCOMO slightly increased. NTT expects to recognize the difference between the consideration paid to the non-controlling interest holders and the decrease in the carrying value of such non-controlling interests resulting from this transaction as an adjustment to “Additional paid-in capital” in the consolidated balance sheet as of December 31, 2016.

– 19 –

4. (Reference)

NON-CONSOLIDATED FINANCIAL STATEMENTS

(1) Non-Consolidated Balance Sheets

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	March 31, 2016		September 30, 2016
ASSETS
Current assets:
Cash and bank deposits		119		592
Accounts receivable, trade		1,573		218
Supplies		337		387
Subsidiary deposits		177,796		56,874
Other		371,541		312,058

Total current assets		551,369		370,130

Fixed assets:
Property, plant and equipment		150,044		144,967
Intangible fixed assets		16,609		12,590
Investments and other assets
Investments in subsidiaries and affiliated companies		5,083,451		5,096,927
Long-term loans receivable to subsidiaries		1,211,416		1,200,894
Other		39,171		37,077

Total investments and other assets		6,334,039		6,334,899

Total fixed assets		6,500,693		6,492,457

TOTAL ASSETS		7,052,062		6,862,588


Notes:	1.	The above non-consolidated quarterly financial statements are exempt from auditor review for purposes of legal disclosure.
	2.	The above non-consolidated quarterly financial statements are prepared based on the “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

– 20 –

(Reference)


	Millions of yen
	March 31, 2016			September 30, 2016
LIABILITIES
Current liabilities:
Accounts payable, trade		709			74
Current portion of corporate bonds		170,000			159,722
Current portion of long-term borrowings		106,600			100,600
Accrued taxes on income		601			9,855
Deposits received from subsidiaries		54,113			57,786
Other		24,669			25,512

Total current liabilities		356,693			353,551

Long-term liabilities:
Corporate bonds		686,391			626,693
Long-term borrowings		1,205,874			1,205,074
Long-term borrowings from subsidiaries		50,000			100,000
Liability for employees’ retirement benefits		31,233			31,936
Asset retirement obligations		1,405			1,419
Other		2,540			2,476

Total long-term liabilities		1,977,445			1,967,600

TOTAL LIABILITIES		2,334,138			2,321,152

NET ASSETS
Shareholders’ equity:
Common stock		937,950			937,950
Capital surplus		2,672,826			2,672,826
Earned surplus		1,108,698			1,200,727
Treasury stock		(883	)		(268,347	)

Total shareholders’ equity		4,718,591			4,543,156

Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		(666	)		(1,721	)

Total unrealized gains (losses), translation adjustments, and others		(666	)		(1,721	)

TOTAL NET ASSETS		4,717,924			4,541,435

TOTAL LIABILITIES AND NET ASSETS		7,052,062			6,862,588


Notes:	1.	The above non-consolidated quarterly financial statements are exempt from auditor review for purposes of legal disclosure.
	2.	The above non-consolidated quarterly financial statements are prepared based on the “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

– 21 –

(Reference)

(2) Non-Consolidated Statements of Income

SIX-MONTH PERIOD ENDED SEPTEMBER 30

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	2015		2016
Operating revenues		256,587		301,930
Operating expenses		61,348		60,251

Operating income		195,239		241,678

Non-operating revenues:
Interest income		8,105		6,410
Lease and rental income		5,243		5,200
Miscellaneous income		824		752

Total non-operating revenues		14,173		12,363

Non-operating expenses:
Interest expenses		6,354		5,945
Corporate bond interest expenses		6,573		5,108
Miscellaneous expenses		2,683		3,592

Total non-operating expenses		15,611		14,646

Recurring profit		193,801		239,395

Special losses		—		21,063

Income before income taxes		193,801		218,332

Income taxes		619		534

Net income		193,181		217,797

(Reference) Major components of operating revenues
Dividends received		191,745		237,421
Revenues from group management		9,252		10,546
Revenues from basic R&D		50,999		50,000


Notes:	1.	The above non-consolidated quarterly financial statements are exempt from auditor review for purposes of legal disclosure.
	2.	The above non-consolidated quarterly financial statements are prepared based on the “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

– 22 –

[Note]

The forward-looking statements and projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new 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 the forecasts contained or referred to herein, as well as other risks included in NTT’s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.

– 23 –

Attachment

Nippon Telegraph and Telephone Corporation

November 11, 2016

NTT’s Shares and Shareholders (as of September 30, 2016)

1.	Classification of Shareholders


Details	NTT’s Shares and Shareholders (1 unit = 100 shares)																Shares Representing Less Than One Unit
	Government and Public Bodies		Financial Institutions		Securities Firms		Other Domestic Corporations		Foreign Corporations, etc.				Domestic Individuals, etc.		Total
	Government and Public Bodies		Financial Institutions		Securities Firms		Other Domestic Corporations		Non- Individuals		Individuals		Domestic Individuals, etc.		Total
Total Holders		4		259		69		5,638		1,491		759		689,599		697,819		—
Total Shares (Units)		6,791,447		3,645,577		191,743		240,076		6,313,765		8,822		3,745,673		20,937,103		2,684,170
%		32.44		17.41		0.92		1.15		30.16		0.04		17.89		100.00		—

Notes:

(1)

The total number of units held by “Domestic Individuals, etc.” includes 593,105 units of treasury stock, and the number of “Shares Representing Less Than One Unit” includes 86 shares of treasury stock. 59,310,586 shares of treasury stock are recorded in the shareholders’ register; the actual number of shares of treasury stock as of September 30, 2016 was 59,309,986.

(2)	The total number of units held by “Other Domestic Corporations” includes 295 units held in the name of the Japan Securities Depository Center, and the number of “Shares Representing Less Than One Unit” includes 44 shares held in the name of the Japan Securities Depository Center.

(3)	There were 186,322 shareholders who only own shares representing less than one unit.

2.	Classification by Number of Shares


	NTT’s Shares and Shareholders (1 unit = 100 shares)																Shares Representing Less Than One Unit
Details	At Least 1,000 Units		At Least 500 Units		At Least 100 Units		At Least 50 Units		At Least 10 Units		At Least 5 Units		At Least 1 Unit		Total		Shares Representing Less Than One Unit
Number of Holders		569		269		1,321		2,067		58,745		83,621		551,227		697,819		—
%		0.08		0.04		0.19		0.30		8.42		11.98		78.99		100.00		—
Total Shares (Units)		17,510,173		187,263		262,301		133,169		932,207		553,251		1,358,739		20,937,103		2,684,170
%		83.63		0.89		1.25		0.64		4.45		2.64		6.49		100.00		—

Notes:

(1)	“At Least 1,000 Units” includes 593,105 units of treasury stock, and the number of “Shares Representing Less Than One Unit” includes 86 shares of treasury stock.

(2)	“At Least 100 Units” includes 295 units held in the name of the Japan Securities Depository Center, and the number of “Shares Representing Less Than One Unit” includes 44 shares held in the name of the Japan Securities Depository Center.

3.	Principal Shareholders


Name	Share Holdings (in thousands of shares)		Percentage of Total Shares Issued (%)
The Minister of Finance		679,123		32.39
Japan Trustee Services Bank, Ltd. (Trust Account)		88,809		4.24
The Master Trust Bank of Japan, Ltd. (Trust Account)		64,695		3.09
JP Morgan Chase Bank 380055		35,584		1.70
Moxley and Co LLC		30,813		1.47
State Street Bank and Trust Company		29,666		1.42
Japan Trustee Services Bank, Ltd. (Trust Account 9)		26,076		1.24
JP Morgan Chase Bank 385632		19,599		0.93
State Street Bank and Trust Company 505202		19,427		0.93
The Bank of New York Mellon SA/NV 10		17,623		0.84

Total		1,011,420		48.25

Notes:

(1)	Shareholdings is rounded down to the nearest thousand.

(2)	NTT’s holdings of treasury stock (59,309,986 shares) are not included in the above table.

(3)	Percentage of Total Shares Issued includes treasury stock.

– 24 –

LOGO

Financial Results for the Six Months Ended September 30, 2016

November 11, 2016

LOGO

“E” in this material represents that the figure is a plan or projection for operation.

“FY” in this material indicates the fiscal year ending March 31 of the succeeding year.

“2Q” in this material represents the 6-month period beginning on April 1 and ending on September 30.

Financial Results for the Six Months Ended September 30, 2016

—1—

LOGO

Consolidated Results and Forecasts (U.S. GAAP)

FY2016/2Q Highlights

Consolidated Results of Operations

Operating Revenues

Operating Income

Net Income *1

¥5,524.3 billion

(¥64.6 billion [1.2%] decrease year-on-year)

¥926.5 billion

(¥193.0 billion [26.3%] increase year-on-year)

¥476.1 billion

(¥98.8 billion [26.2%] increase year-on-year)

Overseas Results of Operations

Overseas Sales:

Yen-based : ¥868.4 billion (¥61.2 billion [6.6%] decrease year-on-year)

US dollar-based : US$7.98 billion (US$0.25 billion [3.2%] increase year-on-year)

Overseas Operating Income*2:

Yen-based : ¥36.9 billion (¥1.8 billion [4.7%] decrease year-on-year)

US dollar-based : US$0.34 billion (US$0.02 billion [5.3%] increase year-on-year)

*1 Net income represents net income attributable to NTT, excluding noncontrolling interests.

*2 Operating Income excludes M&A-related temporary expenses, such as depreciation costs of intangible fixed assets.

*3 In this document, unless otherwise noted, listed numbers are totals for the first half of the fiscal year (from April 1 to September 30).

Financial Results for the Six Months Ended September 30, 2016

—2—

LOGO

FY2016/2Q Topics

Expansion of Global Cloud Services

Cross-selling Order Volume : US$0.73 billion

Enhanced Operating Revenues from Network Services

Expansion of NTT’s user base

72.94 million mobile phone subscribers (net increase of 1.98 million subscribers), including 33.42 million subscribers to “Kake-hodai & Pake-aeru” (net increase of 3.71 million subscribers)

19.70 million FTTH subscribers (net increase of 0.44 million subscribers), including 6.92 million subscribers to the “Hikari Collaboration Model” (opened connections of 2.50 million subscribers (0.95 million new subscribers and 1.54 million subscribers who switched subscriptions from FLET’S Hikari to the Hikari Collaboration Model))

Growing number of Wi-Fi area owners*: 488

(+95 increase compared to end of FY2015)

* Total number of large-scale corporate or local government customers. Excludes small-scale restaurants, etc.

Financial Results for the Six Months Ended September 30, 2016

—3—

LOGO

Consolidated Results and Forecasts (U.S. GAAP)

FY2016 Contributing Factors by Segment

Regional communications business: Operating income increased due to an improvement in balance between revenues and expenses resulting from a shift to the Hikari Collaboration Model, among other factors.

Long distance and international communications business: Operating income decreased due to impairment loss and other temporary expenses; subsidiary growth and cost efficiency improvement continued to make progress.

Mobile communications business: Operating income increased due to an increase of revenues in the mobile communications and “Smart Life” areas and cost efficiency improvement.

Data communications business: Operating income decreased due to temporary M&A-related expenses; sales increased and cost rate improved.

Operating Revenues (Year-on-year: (64.6)) (Billions of yen)

Regional Long distance andData

communications international MobilecommunicationsOther

business communicationscommunicationsbusinessbusiness *

60.1 businessbusiness35.4

5,589.0 58.473.016.35,524.3

[FY2016 4-9]

[1,620.4] [1,038.8] [2,288.0] [762.1]

FY2015 4-9 FY2016 4-9

Operating Income (Year-on-year : +193.0) MobileData

communicationscommunicationsOther

Regional Long international distance andbusinessbusinessbusiness *

communications communications

business business122.62.30.5

77.6 5.4926.5

733.5

[FY2016 4-9]

[232.2] [42.2] [583.7] [35.9]

FY2015 4-9 FY2016 4-9

*Includes adjustments such as elimination

Consolidated Results and Forecasts (U.S. GAAP)

LOGO

FY2016 Consolidated Forecasts

Consolidated Revenues and Income Plan

Operating Revenues :¥11,410.0 billion

(¥40.0billion decrease from initial forecast)

Operating Income :¥1,470.0 billion

(¥40.0billion increase from initial forecast)

Net Income* : ¥770.0 billion

(¥20.0billion increase from initial forecast)

EPS (FY2016) : ¥376

(¥13 increase from initial forecast)

Net income represents net income attributable to NTT, excluding noncontrolling interests.

Financial Results for the Six Months Ended September 30, 2016

—5—

LOGO

Consolidated Results and Forecasts (U.S. GAAP)

FY2016 Forecast Summary by Segment (compared to Initial Forecasts)

Regional communications business: Operating income is expected to increase due to cost efficiency improvement.

Long distance and international communications business: Operating income is expected to decrease due to impairment loss and other temporary expenses; subsidiary growth and cost efficiency improvement are expected to continue to make progress.

Mobile communications business: Operating income is expected to increase due to increased revenues in mobile communications and further cost efficiency improvement.

Data communications business: Operating income is expected to decrease due to temporary M&A-related expenses; sales are expected to increase.

Operating Revenues (Compared to Initial Forecast: (40.0)) (Billions of yen)

RegionalLong distance and

communications international

businesscommunications business

10.060.0Mobile communications Data communications Other

businessbusinessbusiness *

11,450.0 10.020.00.011,410.0

FY2016E

(Revised Forecast)

[3,280.0] [2,160.0] [4,610.0] [1,650.0]

FY2016E FY2016E

(Initial Forecast) (Revised Forecast)

Operating Income Compared to Initial Forecast: +40.0)

RegionalLong distance andMobile communicationsData communicationsOther

communications internationalbusinessbusinessbusiness *

businesscommunications business

30.010.030.020.010.01,470.0

1,430.0 FY2016E

(Revised Forecast)

[320.0] [100.0] [935.0] [100.0]

FY2016E FY2016E

(Initial Forecast) (Revised Forecast)

*Includes adjustments such as elimination

LOGO

Progress on

Medium-Term Management Strategy “Towards the Next Stage 2.0”

LOGO

Progress toward Financial Targets (FY2017)

Results Medium Term

Forecasts Targets

(FY2016 ending March 31, 2017) (FY2017 ending March 31, 2018)

EPS Growth ¥376 At least ¥400

Original target at the announcement

of “2.0”(May 2015):

At least ¥350

(¥1.4 trillion in consolidated profits)

(Domestic Network Business*) ¥150 billion At least ¥200 billion

Cost Reductions** ¥650 billion t least ¥800 billion

(in fixed-line/mobile access networks) Original target at the announcement

of “2.0”(May 2015):

At least ¥600 billion

Overseas Sales/Operating Income*** $17.6B/$0.9B $22B/$1.5B

Excludes NTT Com’s data centers and certain other assets.

Does not reflect the impact of the change in depreciation method.

Operating Income excludes M&A-related temporary expenses, such as depreciation costs of intangible fixed assets

Financial Results for the Six Months Ended September 30, 2016

LOGO

Progress of Global Business Initiatives

Accomplishments of Working Group Initiatives

Enhanced sales capabilities to promote customers’ digital transformation

Organized GTM* Achieved record TCV**

Established sales

account support team of cross-selling

collaboration platform

across NTT Group in first half of FY2016

Sales/Marketing * Go-to-market ** Total contract value

Enriched NTT Group’s total value proposition

Packaged services across Accelerate an aligned

Established Group-wide cloud

OpCo’s to deliver stronger

NTT Security strategy

joint value proposition for

to strengthen service Coordinate delivery

customers (e.g. networks

capabilities processes for common

Service/Operation and data centers)services across OpCo’s

Reduced costs by leveraging NTT Group’s total purchase volume

Refined common Leveraged volume to

Procurements specifications obtain better discounts

LOGO

Progress of B2B2X Initiatives

April 2015 June 2015

July 2016

Optimization of

Manufacturing/Production

Sept. 2015 July 2016 DAZNProcesses with IoT

Cooperation on

Oct. 2015 Smart Stadium Project Sept. 2016

Safe Driving Control

April 2016 Solutions Integrating

Biometric Information

Integration of Kabuki and

the cutting-edge ICT

June 2016

ICT Solutions for Agriculture and

Water Infrastructure Combining

AI and IoT Technologies

—9—

LOGO

Direction of Initiatives for the B2B2X Model

Support business model transformation for service providers to create

new value, which leads to lifestyle transformations of service users

Enrich User

Experiences

Individual

NTT

Provide New

Service

consumers

Tools with

Resolve

Group

Partners

Providers

Social

Issues

(Cross-Industry

Viewers

Collaboration)

Visitors

AI, IoT

Create New

Companies

Partners

Services through

Manufacturer

Cross-Industry

Shops

Collaboration

Financial Results for the Six Months Ended September 30, 2016

—10—

LOGO

Tokyo 2020 Legacy

- Making Medals from “Urban Mines” through Public Participation -

As a Gold Partner* of the Tokyo 2020 Olympic and Paralympic Games (“Tokyo 2020”), in order to contribute to the Tokyo 2020 legacy, NTT proposes the “Public Participation Medal Making Plan,” which promotes the creation of environment-friendly society through the recycling of rare resources (“urban mines”) and growing levels of environmental awareness.

* NTT is the Tokyo 2020 Gold Partner(Telecommunications Services).

The Tokyo Organising Committee of the Olympic and Paralympic Games plans to collect old mobile phones, smartphones and tablets from people nationwide to make gold, silver and bronze medals for Tokyo 2020.

Under a mutual agreement with the Organising Committee, NTT will collect those devices across Japan through NTT DOCOMO’s existing collection channels (such as docomo Shops), will facilitate the transportation and refining of such devices, and will deliver the material of medals to the Organising Committee.

(Note) NTT DOCOMO has been recycling devices on a consistent basis through its 2,400 stores nationwide.

NTOrganising

Committee

Used Devices Collection TransportationRefinementMedal

(At docomo Shops, etc.) (Ensuring traceability)(Separating, processing,production,

refining, etc.)etc.

LOGO

Progress of Broadband Services

LOGO

Progress of Broadband Services

Number of Subscribers for Fixed Broadband Services

FLET’S ADSL

Number of Subscribers *1*2

Collaboration FLET’S Hikari Model) (including Hikari

(Thousands)

Hikari Denwa

22,000

20,540

20,691

20,855

20,113

20,161

20,248

20,312

896

20,000

1,019

987

1,162

1,125

1,090

1,053

19,704

19,959

19,520

18,951

19,036

19,157

19,259

[6,917]

[8,541]

18,000

[1,322]

[2,348]

[3,478]

[4,691]

[5,912]

16,000 17,545

17,243 17,29317,33517,37417,451

14,000

12,000

2015.6 2015.92015.122016.32016.62016.9

Changes from the Preceding Quarter

FY2015FY2016

4-6 7-910-121-34-67-94-9

FLET’S Hikari *1 235 85121102261183445

Number of

opened * 3 810 5595806697866491,435

connections

FLET’S ADSL (58) (37)(35)(37)(34)(32)(66)

Hikari Denwa *4 *5 135 5042397793170

17,574

*1 Number of FLET’S Hikari (including Hikari Collaboration Model) subscribers includes B FLET’S, FLET’S Hikari Next, FLET’S Hikari Light, FLET’S Access provided by NTT East, B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown, FLET’S Hikari Next, FLET’S Hikari Light and FLET’S

2017.3E

(Thousands)

FY2015 FY2016E

543 700

2,619 2,700

(167) (157)

267 200

Hikari Lightplus, and FLET’S Hikari WiFi

Hikari WiFi Access provided by NTT West,

and

wholesale services (Hikari Collaboration Model) provided by both NTT East and NTT West.

*2 Figures in [ ] represent the number of subscribers to “Hikari Collaboration Model,” the wholesale provision of services by NTT East and NTT West to service providers.

*3 Number of opened connections excludes openings as a result of relocations.

*4 Numbers for Hikari Denwa include wholesale services provided to service providers by NTT East and NTT West.

*5 Numbers of Hikari Denwa subscribers are presented in thousands of channels.

Financial Results for the Six Months Ended September 30, 2016

—12—

LOGO

Progress of Broadband Services

Number of Subscribers for Mobile Broadband Services

Number of Subscribers *

(Thousands) LTE(“Xi”)

FOMA

80,000

74,800

70,000 67,532 68,49469,60270,96471,61472,943

60,000

50,000 32,609 34,50436,29338,67939,89341,28145,100

40,000

30,000

20,000

34,923 33,98933,30932,28531,72131,66229,700

10,000

2015.6 2015.92015.122016.32016.62016.92017.3E

Changes from the Preceding Quarter

(Thousands)

FY2015FY2016

4-6 7-910-121-34-67-94-9FY2015FY2016E

LTE(“Xi”)+FOMA 936 9621,1081,3626501,3301,9804,3683,800

* The number of subscribers for Mobile Broadband Services includes communications module service subscribers

Financial Results for the Six Months Ended September 30, 2016

—13—

LOGO

Progress of Broadband Services

Number of Subscribers for Video Services

FLET’S TV *1 *2

(Thousands) Hikari TV

5,000

4,416 4,4424,4644,4844,4924,5054,516

4,000

1,378 1,3981,4171,4321,4451,4641,456

3,000

2,000

3,038 3,0433,0473,0523,0473,0413,060

1,000

2015.6 2015.92015.122016.32016.62016.92017.3E

* 1 “FLET’S TV” requires a subscription to “FLET’S TV Transmission Services” provided by NTT East and NTT West, and a subscription to SKY Perfect JSAT’s “SKY Perfect JSAT

Facility Use Services” broadcast service.

* 2 Numbers of subscribers to “FLET’S TV Transmission Services” include wholesale services provided to service providers by NTT East and NTT West.

LOGO

Financial Information

LOGO

Details of Consolidated Statement of Income

Operating

Revenues (Year-on-year: (64.6)) (Billions of yen)

Voice related SI revenues and sales

services revenues of telecommunications

26.4 equipmentcommunications IP/packetOther revenues

Fixed voice : (48.3)81.0services revenues16.6

Mobile voice : + 21.926.1

5,589.0 Systems Integration:(40.2)5,524.3

Telecommunications

equipment:(40.7)

FY2015 4-9 FY2016 4-9

Operating

Expenses (Year-on-year: (257.7))

156.0 Expenses of goods and for purchase services

and other expenses

4,855.5 expenses Depreciation and loss on 96.0Personnel expensesOther

expenses

disposal of assets 19.53.94,597.8

FY2015 4-9 FY2016 4-9

LOGO

Details of Consolidated Balance Sheet

March 31, 2016

(Billions of yen)

21,035.9

Assets

21,035.9

Cash and Cash Equivalents 1,088.3

Notes and accounts receivable, trade 2,733.1

Depreciable Assets

(property, plant and equipment)

7,896.5

September 30, 2016

20,447.3

Assets

20,447.3

[(588.7)]

Cash and Cash Equivalents 1,014.5

[(73.8)]

Notes and accounts receivable, trade 2,421.9

[(311.3)]

Depreciable Assets

(property, plant and equipment)

7,770.6

[(125.9)]

Liabilities

9,262.0

[(488.7)]

Interest 4,091 -Bearing .8 Debt [(71.5)]

Accounts 1,144 payable, .2 trade [(428.6)] Other

48.8 [+3.8]

Equity

11,136.4

[(103.7)]

Treasury Stock (268.3)

[(267.5)]

Financial Results for the Six Months Ended September 30, 2016

—16—

LOGO

Details of Consolidated Cash Flows

Cash flows from Cash flows from FCFCash flows from

operating investing (A) + (B)financing

activities activities activities

(A) (B)

(Billions of yen)

2,000

1,390.4 +42.9

1,269.4 Acquisitions/Sales of

1,000 property, plant, equipment +164.0

and intangibles

[(31.7)]

Acquisitions of subsidiaries 513.9

[+99.1] 349.9

+121.1 (191.0)

Increase in net income (562.4)

[+ 127.9]

(1,000) (919.5) (876.5)(371.4)

Increase/Decrease in debt [+17.2]

Acquisition of treasury stock [(182.4)]

Acquisition of shares of subsidiaries [(109.6)]

(2,000)

Increase/Decrease from the same

period of the previous fiscal year

FY2015 4-9 FY2016 4-9

Financial Results for the Six Months Ended September 30, 2016

—17—

LOGO

Details of Capital Investment

(Billions of yen) 1,817.5

(10.0)1,720.0

1,687.21,710.0

753.5

85.2

58.1

Other 49.0 88.897.1

NTT DATA

(Consolidated) 58.267.6

NTT Communications 140.0 55.057.4

NTT West

NTT East 121.4103.0

NTT DOCOMO 128.7

(Consolidated)

102.794.6

292.5

219.5246.1

FY2014 4-9 FY2015 4-9FY2016 4-9

FY2014 FY2015FY2016EFY2016E

(Initial Forecast)

LOGO

Shareholder Returns

Share Buybacks (Billions of yen)

539.4

406.5

366.5 381.7267.4

338.1

200.0

120.0 150.0

86.2 100.0 94.493.6

FY 1999 FY 2002 FY 2003 FY 2004 FY 2005 FY 2007FY 2008FY 2011FY 2012FY 2013FY 2014FY 2015FY 2016 E

Dividends per

Share Pay-out ratio110120 (Yen)

Note: Dividends have been adjusted to reflect the two-for-one stock split carried out on July 1, 2015 90

708085

6060

5538.2%37.2%38.0%

404532.3%31.2%33.4%31.4% 31.9%

25 30 3023.27.5%

13.0% 0%

12.3% 19.5%

17.1%

FY 2003 FY 2004 FY 2005FY 2006FY 2007 FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014FY 2015 FY 2016 E

Financial Results for the Six Months Ended September 30, 2016 —19—

November 11, 2016

FOR IMMEDIATE RELEASE

Financial Statements for the Six Months Ended September 30, 2016

The financial results of Nippon Telegraph and Telephone East Corporation (NTT East) for the six months ended September 30, 2016 are presented in the following attachments.

(Attachments)

1.	Non-Consolidated Comparative Balance Sheets

2.	Non-Consolidated Comparative Statements of Income

3.	Business Results (Non-Consolidated Operating Revenues)

4.	Non-Consolidated Comparative Statements of Cash Flows

5.	Revised Forecasts for the Fiscal Year Ending March 31, 2017

For inquiries, please contact:

Mr. Kenkichi Nakata or Mr. Masaki Akutsu

Accounting Section, Finance Division

Nippon Telegraph and Telephone East Corporation

Tel: +81-3-5359-3331

E-mail: kessan_info@sinoa.east.ntt.co.jp

1. Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2016			September 30, 2016			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		395,419			363,366			(32,052	)
Antenna facilities		3,791			3,724			(67	)
Terminal equipment		31,807			27,074			(4,733	)
Local line facilities		835,446			841,575			6,128
Long-distance line facilities		3,353			2,978			(375	)
Engineering facilities		595,052			586,320			(8,731	)
Submarine line facilities		872			802			(70	)
Buildings		420,792			410,991			(9,800	)
Construction in progress		17,626			18,169			543
Other		263,272			260,228			(3,043	)
Total property, plant and equipment		2,567,433			2,515,230			(52,203	)
Intangible fixed assets		84,019			78,623			(5,396	)
Total fixed assets - telecommunications businesses		2,651,453			2,593,853			(57,600	)
Investments and other assets
Other investments and assets		187,503			186,651			(851	)
Allowance for doubtful accounts		(913	)		(865	)		48
Total investments and other assets		186,589			185,786			(803	)
Total fixed assets		2,838,043			2,779,640			(58,403	)

Current assets:
Cash and bank deposits		8,675			6,880			(1,794	)
Accounts receivable, trade		224,181			211,330			(12,851	)
Supplies		26,221			24,983			(1,238	)
Other current assets		341,341			360,518			19,176
Allowance for doubtful accounts		(442	)		(396	)		46
Total current assets		599,977			603,316			3,338

TOTAL ASSETS		3,438,021			3,382,956			(55,064	)

-1-


	(Millions of yen)
	March 31, 2016		September 30, 2016		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		365,835		325,620		(40,215	)
Liability for employees’ retirement benefits		235,919		243,994		8,074
Reserve for point services		8,574		10,006		1,431
Reserve for unused telephone cards		8,671		8,290		(380	)
Allowance for environmental measures		5,289		5,289		—
Asset retirement obligations		1,092		919		(173	)
Other long-term liabilities		23,092		31,087		7,994
Total long-term liabilities		648,475		625,207		(23,267	)
Current liabilities:
Current portion of long-term borrowings from parent company		65,120		102,775		37,655
Accounts payable, trade		85,229		38,900		(46,328	)
Accrued taxes on income		11,793	*	12,998		1,205
Allowance for environmental measures		2,601		2,600		(0	)
Asset retirement obligations		—		28		28
Other current liabilities		428,764		364,433		(64,331	)
Total current liabilities		593,508		521,736		(71,771	)

TOTAL LIABILITIES		1,241,983		1,146,944		(95,039	)

NET ASSETS
Shareholders’ equity:
Common stock		335,000		335,000		—
Capital surplus		1,499,726		1,499,726		—
Earned surplus		357,191		397,782		40,590
Total shareholders’ equity		2,191,918		2,232,509		40,590
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		4,119		3,502		(616	)
Total unrealized gains (losses), translation adjustments, and others		4,119		3,502		(616	)

TOTAL NET ASSETS		2,196,037		2,236,011		39,974

TOTAL LIABILITIES AND NET ASSETS		3,438,021		3,382,956		(55,064	)

Note:

*NTT East participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan.

However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

-2-

2. Non-Consolidated Comparative Statements of Income

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2015		Six months ended September 30, 2016		Increase (Decrease)			Year ended March 31, 2016
Telecommunications businesses:
Operating revenues		800,323		766,449		(33,873	)		1,585,580
Operating expenses		707,797		650,977		(56,820	)		1,444,775
Operating income from telecommunications businesses		92,525		115,471		22,946			140,804

Supplementary businesses:
Operating revenues		59,191		57,056		(2,134	)		136,726
Operating expenses		49,739		48,736		(1,002	)		115,702
Operating income from supplementary businesses		9,451		8,319		(1,132	)		21,024
Operating income		101,977		123,791		21,814			161,828

Non-operating revenues:
Interest income		51		10		(40	)		138
Dividends received		3,086		3,171		84			3,169
Gains on sales of fixed assets		7,437		13,571		6,134			7,789
Miscellaneous income		1,520		1,188		(332	)		6,415
Total non-operating revenues		12,095		17,941		5,845			17,512

Non-operating expenses:
Interest expenses		2,500		2,357		(142	)		4,987
Miscellaneous expenses		381		174		(207	)		914
Total non-operating expenses		2,882		2,532		(350	)		5,901
Recurring profit		111,190		139,200		28,010			173,439
Special losses		3,758		—		(3,758	)		3,758
Income before income taxes		107,432		139,200		31,768			169,681
Income taxes	*	29,315	*	39,214		9,899			50,895
Net income		78,116		99,986		21,869			118,786

Note:

* NTT East participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan.

However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

-3-

3. Business Results (Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2015		Six months ended September 30, 2016		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2016
Voice transmission services revenues (excluding IP services revenues)		218,262		201,403		(16,858	)		(7.7	)		427,802
Monthly charge revenues*		163,065		152,177		(10,887	)		(6.7	)		321,137
Call rates revenues*		15,733		13,613		(2,119	)		(13.5	)		30,319
Interconnection call revenues*		26,333		23,378		(2,954	)		(11.2	)		51,118
IP services revenues		431,474		425,116		(6,358	)		(1.5	)		855,444
Leased circuit services revenues (excluding IP services revenues)		55,156		47,677		(7,478	)		(13.6	)		103,761
Telegram services revenues		6,297		5,561		(736	)		(11.7	)		12,812
Other telecommunications services revenues		89,131		86,690		(2,440	)		(2.7	)		185,759

Telecommunications total revenues		800,323		766,449		(33,873	)		(4.2	)		1,585,580

Supplementary business total revenues		59,191		57,056		(2,134	)		(3.6	)		136,726

Total operating revenues		859,514		823,505		(36,008	)		(4.2	)		1,722,307

*Partial

listing only

-4-

4. Non-Consolidated Comparative Statements of Cash Flows

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2015			Six months ended September 30, 2016			Increase (Decrease)			Year ended March 31, 2016
Cash flows from operating activities:
Income before income taxes		107,432			139,200			31,768			169,681
Depreciation and amortization		173,953			144,939			(29,014	)		342,744
Loss on disposal of property, plant and equipment		6,091			6,056			(34	)		20,330
Increase (decrease) in liability for employees’ retirement benefits		5,822			8,074			2,252			3,300
(Increase) decrease in accounts receivable		17,242			16,569			(672	)		14,232
(Increase) decrease in inventories		1,459			949			(510	)		4,671
Increase (decrease) in accounts payable and accrued expenses		(61,571	)		(74,751	)		(13,180	)		19,826
Increase (decrease) in accrued consumption tax		(4,461	)		281			4,743			(5,860	)
Other		(14,397	)		(27,619	)		(13,222	)		15,479

Sub-total		231,571			213,700			(17,870	)		584,406
Interest and dividends received		3,137			3,179			42			3,276
Interest paid		(2,509	)		(2,366	)		143			(4,997	)
Income taxes received (paid)		(30,545	)		(40,027	)		(9,481	)		(36,236	)

Net cash provided by (used in) operating activities		201,653			174,486			(27,167	)		546,449
Cash flows from investing activities:
Payments for property, plant and equipment		(146,347	)		(139,013	)		7,334			(288,142	)
Proceeds from sale of property, plant and equipment		8,147			14,530			6,382			8,886
Payments for purchase of investment securities		(250	)		—			250			(385	)
Proceeds from sale of investment securities		215			632			417			1,429
Other		292			93			(199	)		633

Net cash provided by (used in) investing activities		(137,941	)		(123,756	)		14,185			(277,578	)
Cash flows from financing activities:
Payments for settlement of long-term debt		(3,420	)		(2,560	)		860			(66,220	)
Payments for settlement of lease obligations		(245	)		(292	)		(47	)		(541	)
Dividends paid		(33,500	)		(59,395	)		(25,895	)		(133,500	)

Net cash provided by (used in) financing activities		(37,165	)		(62,248	)		(25,082	)		(200,261	)
Net increase (decrease) in cash and cash equivalents		26,547			(11,517	)		(38,064	)		68,609
Cash and cash equivalents at beginning of period		138,672			207,281			68,609			138,672

Cash and cash equivalents at end of period		165,219			195,764			30,544			207,281

-5-

5. Revised Forecasts for the Fiscal Year Ending March 31, 2017

Based on its recent business performance, NTT East has revised its financial results forecasts that were announced in the financial results release filed on May 13, 2016 for the fiscal year ending March 31, 2017, as follows.


	(Billions of yen)
	Year Ending March 31, 2017 (Forecasts Previously Announced on May 13, 2016)		Year Ending March 31, 2017 (Revised Forecasts)		Change
Operating Revenues		1,650		1,653		3
Operating Income		165		175		10
Recurring Profit		165		188		23
Net Income		114		130		16


Note:		The financial results forecasts and projected figures concerning the future performance of NTT East contained herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT East and its parent NTT in light of information currently available to them regarding NTT, NTT East and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT, NTT East 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 the forecasts contained herein, as well as other risks included in NTT’s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.

-6-

November 11, 2016

FOR IMMEDIATE RELEASE

Financial Results for the Six Months Ended September 30, 2016

The financial results of Nippon Telegraph and Telephone West Corporation (NTT West) for the six months ended September 30, 2016 are presented in the following attachments.

(Attachments)

1.	Non-Consolidated Comparative Balance Sheets

2.	Non-Consolidated Comparative Statements of Income

3.	Business Results (Non-Consolidated Operating Revenues)

4.	Non-Consolidated Comparative Statements of Cash Flows

5.	Revised Forecasts for the Fiscal Year Ending March 31, 2017

For inquiries, please contact:

Junichiro Maekawa or Ryosuke Yamashita

Accounting Section, Finance Division

Nippon Telegraph and Telephone West Corporation

Tel: +81-6-4793-3141

E-mail: kessan-info@west.ntt.co.jp

1. Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2016			September 30, 2016			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		371,004			334,384			(36,620	)
Antenna facilities		6,224			6,133			(91	)
Terminal equipment		17,166			14,467			(2,698	)
Local line facilities		993,040			1,006,996			13,955
Long-distance line facilities		2,138			1,898			(240	)
Engineering facilities		530,501			521,786			(8,714	)
Submarine line facilities		3,587			3,359			(228	)
Buildings		327,911			318,151			(9,760	)
Construction in progress		18,488			19,201			712
Other		220,696			218,917			(1,779	)
Total property, plant and equipment		2,490,761			2,445,296			(45,465	)
Intangible fixed assets		65,914			63,520			(2,394	)
Total fixed assets - telecommunications businesses		2,556,676			2,508,816			(47,859	)
Investments and other assets
Other investments and assets		170,251			171,390			1,138
Allowance for doubtful accounts		(638	)		(619	)		18
Total investments and other assets		169,613			170,770			1,156
Total fixed assets		2,726,289			2,679,587			(46,702	)

Current assets:
Cash and bank deposits		21,765			14,345			(7,420	)
Notes receivable		—			5			5
Accounts receivable, trade		201,155			180,676			(20,478	)
Supplies		34,656			31,716			(2,939	)
Other current assets		163,910			133,142			(30,768	)
Allowance for doubtful accounts		(514	)		(499	)		14
Total current assets		420,973			359,386			(61,586	)

TOTAL ASSETS		3,147,263			3,038,973			(108,289	)

-1-


	(Millions of yen)
	March 31, 2016		September 30, 2016		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		651,707		681,400		29,692
Liability for employees’ retirement benefits		233,574		238,551		4,976
Reserve for point services		4,672		2,617		(2,054	)
Reserve for unused telephone cards		8,200		7,840		(360	)
Allowance for environmental measures		9,074		9,074		—
Asset retirement obligations		361		359		(1	)
Other long-term liabilities		5,544		5,226		(317	)
Total long-term liabilities		913,134		945,069		31,935
Current liabilities:
Current portion of long-term borrowings from parent company		127,120		74,867		(52,252	)
Accounts payable, trade		70,067		37,164		(32,903	)
Short-term borrowings		142,465		104,043		(38,422	)
Accrued taxes on income		8,102	*	6,817		(1,284	)
Allowance for loss on disaster		—		4,418		4,418
Allowance for environmental measures		2,467		2,456		(11	)
Asset retirement obligations		—		5		5
Other current liabilities		327,940		299,011		(28,929	)
Total current liabilities		678,163		528,783		(149,380	)

TOTAL LIABILITIES		1,591,297		1,473,853		(117,444	)


NET ASSETS
Shareholders’ equity:
Common stock		312,000		312,000		—
Capital surplus		1,170,054		1,170,054		—
Earned surplus		73,358		82,717		9,358
Total shareholders’ equity		1,555,412		1,564,771		9,358
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		553		349		(204	)
Total unrealized gains (losses), translation adjustments, and others		553		349		(204	)

TOTAL NET ASSETS		1,555,965		1,565,120		9,154

TOTAL LIABILITIES AND NET ASSETS		3,147,263		3,038,973		(108,289	)


Note:		*NTT West participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan.

		However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

-2-

2. Non-Consolidated Comparative Statements of Income

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2015		Six months ended September 30, 2016		Increase (Decrease)			Year ended March 31, 2016
Telecommunications businesses:
Operating revenues		688,635		663,429		(25,205	)		1,372,571
Operating expenses		658,456		598,349		(60,107	)		1,312,941
Operating income from telecommunications businesses		30,178		65,080		34,902			59,630

Supplementary businesses:
Operating revenues		66,043		67,091		1,048			155,452
Operating expenses		58,702		60,954		2,252			141,010
Operating income from supplementary businesses		7,340		6,136		(1,204	)		14,442
Operating income		37,519		71,217		33,697			74,072

Non-operating revenues:
Interest income		2		6		3			3
Dividends received		1,551		597		(954	)		1,568
Miscellaneous income		1,896		1,059		(836	)		4,203
Total non-operating revenues		3,450		1,663		(1,787	)		5,775

Non-operating expenses:
Interest expenses		5,069		3,761		(1,308	)		9,410
Miscellaneous expenses		1,554		95		(1,459	)		3,290
Total non-operating expenses		6,624		3,856		(2,768	)		12,701
Recurring profit		34,344		69,023		34,678			67,146
Special losses		—		5,975		5,975			—
Income before income taxes		34,344		63,048		28,703			67,146
Income taxes	*	8,027	*	17,472		9,444			(5,278	)
Net income		26,317		45,575		19,258			72,425


Note:		* NTT West participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan.

		However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

-3-

3. Business Results (Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2015		Six months ended September 30, 2016		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2016
Voice transmission services revenues (excluding IP services revenues)		218,937		201,536		(17,401	)		(7.9	)		428,645
Monthly charge revenues*		162,446		151,366		(11,079	)		(6.8	)		319,687
Call rates revenues*		14,723		12,764		(1,959	)		(13.3	)		28,259
Interconnection call revenues*		28,841		25,565		(3,276	)		(11.4	)		55,840
IP services revenues		350,749		349,188		(1,560	)		(0.4	)		702,712
Leased circuit services revenues (excluding IP services revenues)		48,474		43,855		(4,618	)		(9.5	)		93,383
Telegram services revenues		6,938		6,176		(762	)		(11.0	)		14,088
Other telecommunications services revenues		63,534		62,672		(861	)		(1.4	)		133,741

Telecommunications total revenues		688,635		663,429		(25,205	)		(3.7	)		1,372,571

Supplementary business total revenues		66,043		67,091		1,048			1.6			155,452

Total operating revenues		754,678		730,521		(24,157	)		(3.2	)		1,528,023

*	Partial listing only

-4-

4. Non-Consolidated Comparative Statements of Cash Flows

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2015			Six months ended September 30, 2016			Increase (Decrease)			Year ended March 31, 2016
Cash flows from operating activities:
Income before income taxes		34,344			63,048			28,703			67,146
Depreciation and amortization		159,788			141,301			(18,487	)		317,082
Loss on disposal of property, plant and equipment		7,875			7,287			(587	)		26,641
Increase (decrease) in liability for employees’ retirement benefits		5,552			4,976			(575	)		3,621
(Increase) decrease in accounts receivable		27,395			27,620			224			5,852
(Increase) decrease in inventories		(1,781	)		1,397			3,179			(902	)
Increase (decrease) in accounts payable and accrued expenses		(45,213	)		(40,737	)		4,475			(8,759	)
Increase (decrease) in accrued consumption tax		(4,836	)		303			5,140			(4,085	)
Other		(30,172	)		(13,084	)		17,088			(5,957	)

Sub-total		152,953			192,114			39,161			400,637
Interest and dividends received		1,554			604			(950	)		1,571
Interest paid		(5,124	)		(4,179	)		944			(9,477	)
Income taxes received (paid)		(5,227	)		(20,999	)		(15,771	)		(5,528	)

Net cash provided by (used in) operating activities		144,155			167,540			23,384			387,203
Cash flows from investing activities:
Payments for property, plant and equipment		(145,063	)		(128,429	)		16,633			(284,746	)
Proceeds from sale of property, plant and equipment		1,061			447			(614	)		2,275
Payments for purchase of investment securities		(250	)		—			250			(865	)
Proceeds from sale of investment securities		168			509			340			462
Other		191			(70	)		(261	)		265

Net cash provided by (used in) investing activities		(143,891	)		(127,543	)		16,348			(282,607	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		—			50,000			50,000			—
Payments for settlement of long-term debt		(102,800	)		(72,560	)		30,240			(175,600	)
Net increase (decrease) in short-term borrowings		43,970			(38,422	)		(82,393	)		67,462
Payments for settlement of lease obligations		(123	)		(102	)		20			(227	)
Dividends paid		(15,000	)		(36,216	)		(21,216	)		(15,000	)

Net cash provided by (used in) financing activities		(73,953	)		(97,302	)		(23,348	)		(123,365	)
Net increase (decrease) in cash and cash equivalents		(73,690	)		(57,304	)		16,385			(18,769	)
Cash and cash equivalents at beginning of period		90,535			71,765			—			90,535

Cash and cash equivalents at end of period		16,845			14,461			—			71,765

-5-

5. Revised Forecasts for the Fiscal Year Ending March 31, 2017

Based on its recent business performance, NTT West has revised its financial results forecasts that were announced in the financial results release filed on May 13, 2016 for the fiscal year ending March 31, 2017, as follows.


	(Billions of yen)
	Year Ending March 31, 2017 (Forecasts Previously Announced on May 13, 2016)		Year Ending March 31, 2017 (Revised Forecasts)		Change
Operating Revenues		1,477		1,481		4
Operating Income		75		85		10
Recurring Profit		70		80		10
Net Income		50		52		2


Note :		The financial results forecasts and projected figures concerning the future performance of NTT West contained herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT West and its parent NTT in light of information currently available to them regarding NTT, NTT West and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT, NTT West 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 the forecasts contained herein, as well as other risks included in NTT’s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.

-6-

November 11, 2016

FOR IMMEDIATE RELEASE

NTT Com Announces Financial Results for the Six Months Ended September 30, 2016

TOKYO, JAPAN – NTT Communications Corporation (NTT Com) announced today its financial results for the six months ended September 30, 2016. Please see the following attachments for further details:

I.	Financial Results of NTT Communications Group

II.	Non-Consolidated Comparative Balance Sheets

III.	Non-Consolidated Comparative Statements of Income

IV.	Business Results (Non-Consolidated Operating Revenues)

V.	Non-Consolidated Comparative Statements of Cash Flows

VI.	Revised Forecasts for the Fiscal Year Ending March 31, 2017

# # #

About NTT Communications Corporation

NTT Communications provides consultancy, architecture, security and cloud services to optimize the information and communications technology (ICT) environments of enterprises. These offerings are backed by the company’s worldwide infrastructure, including a leading global tier-1 IP network, the Arcstar Universal One™ VPN network, reaching 196 countries/regions, and 140 secure data centers worldwide. NTT Communications’ solutions leverage the global resources of NTT Group companies, including Dimension Data, NTT DOCOMO and NTT DATA.

www.ntt.com | Twitter@NTT Communications | Facebook@NTT Communications | LinkedIn@NTT

For more information

(Mr.) Akira Ito or (Mr.) Shinichi Shimizu

Accounting and Taxation, Finance, NTT Communications

Tel: +81 3 6700 4311

Email: info-af@ntt.com

I. Financial Results of NTT Communications Group


	(Millions of yen)
	Six months ended September 30, 2015		Six months ended September 30, 2016		Increase (Decrease)			Percent Increase (Decrease)
Operating revenues		639,398		617,702		(21,696	)		(3.4	)
Operating expenses		582,568		546,054		(36,514	)		(6.3	)
Operating income		56,830		71,648		14,818			26.1

-1-

II. Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2016			September 30, 2016			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		134,315			139,342			5,026
Antenna facilities		1,707			1,668			(39	)
Terminal equipment		1,397			1,636			238
Local line facilities		730			1,039			309
Long-distance line facilities		5,759			5,410			(349	)
Engineering facilities		51,789			50,836			(953	)
Submarine line facilities		13,408			12,034			(1,373	)
Buildings		199,178			196,424			(2,753	)
Construction in progress		28,085			31,944			3,859
Other		91,332			93,902			2,569
Total property, plant and equipment		527,706			534,241			6,534
Intangible fixed assets		101,766			95,835			(5,930	)
Total fixed assets - telecommunications businesses		629,472			630,076			604
Investments and other assets
Investment securities		135,291			109,591			(25,700	)
Investments in subsidiaries and affiliated companies		381,949			382,179			230
Other investments and assets		53,283			61,231			7,947
Allowance for doubtful accounts		(207	)		(221	)		(13	)
Total investments and other assets		570,316			552,780			(17,536	)
Total fixed assets		1,199,789			1,182,857			(16,931	)

Current assets:
Cash and bank deposits		12,607			6,145			(6,462	)
Accounts receivable, trade		179,839			152,084			(27,755	)
Supplies		9,806			11,480			1,673
Other current assets		94,874			80,747			(14,127	)
Allowance for doubtful accounts		(1,017	)		(1,196	)		(179	)
Total current assets		296,110			249,260			(46,850	)

TOTAL ASSETS		1,495,899			1,432,117			(63,781	)

-2-


	(Millions of yen)
	March 31, 2016		September 30, 2016			Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company and subsidiary		199,504		198,927			(577	)
Liability for employees’ retirement benefits		86,722		89,684			2,962
Reserve for point services		547		451			(96	)
Reserve for unused telephone cards		3,628		3,469			(159	)
Asset retirement obligations		3,296		3,331			35
Other long-term liabilities		10,354		18,773			8,419
Total long-term liabilities		304,053		314,637			10,584

Current liabilities:
Current portion of long-term borrowings from parent company		43,360		41,680			(1,680	)
Accounts payable, trade		31,894		23,777			(8,117	)
Short-term borrowings		7,766		760			(7,006	)
Accrued taxes on income		6,968	*	5,821			(1,146	)
Allowance for losses on construction		13		27			13
Other current liabilities		179,304		136,608			(42,695	)
Total current liabilities		269,307		208,676			(60,630	)

TOTAL LIABILITIES		573,360		523,314			(50,046	)


NET ASSETS
Shareholders’ equity:
Common stock		211,763		211,763			—
Capital surplus		131,615		131,615			—
Earned surplus		517,436		521,779			4,343
Total shareholders’ equity		860,815		865,158			4,343
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		61,723		43,993			(17,730	)
Deferred gains or losses on hedges		—		(348	)		(348	)
Total unrealized gains (losses), translation adjustments, and others		61,723		43,644			(18,078	)

TOTAL NET ASSETS		922,538		908,803			(13,735	)

TOTAL LIABILITIES AND NET ASSETS		1,495,899		1,432,117			(63,781	)


Note:		*NTT Com participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan.

		However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

-3-

III. Non-Consolidated Comparative Statements of Income

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2015		Six months ended September 30, 2016		Increase (Decrease)			Year ended March 31, 2016
Telecommunications businesses:
Operating revenues		341,303		346,629		5,326			691,290
Operating expenses		306,623		305,692		(931	)		613,093
Operating income from telecommunications businesses		34,679		40,937		6,257			78,196

Supplementary businesses:
Operating revenues		100,644		100,482		(161	)		227,018
Operating expenses		95,321		91,265		(4,055	)		214,072
Operating income from supplementary businesses		5,322		9,217		3,894			12,946
Operating income		40,002		50,154		10,152			91,143

Non-operating revenues:
Interest income		123		41		(81	)		272
Dividends received		9,343		7,249		(2,094	)		12,486
Lease and rental income		5,827		5,692		(135	)		11,581
Miscellaneous income		636		154		(482	)		2,822
Total non-operating revenues		15,930		13,137		(2,792	)		27,163

Non-operating expenses:
Interest expenses		902		549		(353	)		1,514
Lease and rental expenses		2,756		2,762		5			5,551
Miscellaneous expenses		444		646		201			1,034
Total non-operating expenses		4,104		3,957		(146	)		8,100
Recurring profit		51,828		59,334		7,506			110,206

Special losses		—		—		—			5,847
Income before income taxes		51,828		59,334		7,506			104,359
Income taxes	*	15,274	*	16,549		1,274			32,046
Net income		36,553		42,785		6,231			72,312


Note:		*NTT Com participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan.

		However, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

-4-

IV. Business Results (Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2015		Six months ended September 30, 2016		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2016
Cloud Computing Platforms		33,803		34,779		975			2.9			70,029
Data Networks		182,796		190,005		7,209			3.9			369,871
Voice Communications		128,908		126,392		(2,516	)		(2.0	)		260,329
Applications & Content		19,440		18,666		(774	)		(4.0	)		38,729
Solution Services		69,279		69,743		464			0.7			162,352
Others		7,718		7,524		(193	)		(2.5	)		16,997

Total operating revenues		441,947		447,112		5,164			1.2			918,309

-5-

V. Non-Consolidated Comparative Statements of Cash Flows

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2015			Six months ended September 30, 2016			Increase (Decrease)			Year ended March 31, 2016
Cash flows from operating activities:
Income before income taxes		51,828			59,334			7,506			104,359
Depreciation and amortization		53,055			52,375			(680	)		106,837
Loss on disposal of property, plant and equipment		573			940			366			4,075
Gains on sales of fixed assets		(0	)		(58	)		(58	)		(3	)
Increase (decrease) in allowance for doubtful accounts		(82	)		192			274			(117	)
Increase (decrease) in liability for employees’ retirement benefits		1,963			2,962			999			1,140
Write-off of investments in affiliated companies		—			—			—			5,847
(Increase) decrease in accounts receivable		29,300			32,240			2,939			(3,413	)
(Increase) decrease in inventories		(4,944	)		(1,901	)		3,043			(3,015	)
Increase (decrease) in accounts payable and accrued expenses		(20,666	)		(24,274	)		(3,607	)		432
Increase (decrease) in accrued consumption tax		(3,843	)		1,864			5,708			(4,850	)
Other		(22,332	)		(19,208	)		3,123			(23,183	)

Sub-total		84,851			104,467			19,616			188,108
Interest and dividends received		9,464			7,312			(2,152	)		12,752
Interest paid		(852	)		(614	)		238			(1,418	)
Income taxes received (paid)		(18,117	)		(24,846	)		(6,729	)		(22,436	)

Net cash provided by (used in) operating activities		75,346			86,319			10,972			177,004
Cash flows from investing activities:
Payments for property, plant and equipment		(62,888	)		(69,246	)		(6,358	)		(124,453	)
Proceeds from sale of property, plant and equipment		14			223			208			18
Payments for purchase of investment securities		(93,800	)		(230	)		93,570			(105,792	)
Proceeds from sale of investment securities		116			1,500			1,383			152
Payments for long-term loans		—			—			—			(5,852	)
Other		(863	)		(17	)		846			(1,720	)

Net cash provided by (used in) investing activities		(157,420	)		(67,770	)		89,650			(237,648	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		149,857			—			(149,857	)		149,857
Payments for settlement of long-term debt		(51,680	)		(1,680	)		50,000			(53,360	)
Net increase (decrease) in short-term borrowings		23,958			(7,006	)		(30,964	)		(2,647	)
Payments for settlement of lease obligations		(1,719	)		(1,595	)		123			(7,470	)
Dividends paid		(36,001	)		(33,000	)		3,000			(36,001	)

Net cash provided by (used in) financing activities		84,415			(43,282	)		(127,697	)		50,378
Effect of exchange rate changes on cash and cash equivalents		166			(752	)		(918	)		(2,147	)
Net increase (decrease) in cash and cash equivalents		2,507			(25,485	)		(27,993	)		(12,412	)
Cash and cash equivalents at beginning of period		44,042			31,630			(12,412	)		44,042

Cash and cash equivalents at end of period		46,550			6,145			(40,405	)		31,630

-6-

VI. Revised Forecasts for the Fiscal Year Ending March 31, 2017

Based on the 2Q Financial Results, NTT Com has revised forecasts for fiscal year ending March 31, 2017, which the Company announced on May 13,2016.


	(Billions of yen)
	Year Ending March 31, 2017 (Forecasts)			Year Ending March 31, 2017 (Revised Forecasts)			Change
Operating Revenues		1,290.0 (910.0	)		1,280.0 (920.0	)		- 10.0 (+ 10.0	)
Operating Income		120.0 (88.0	)		120.0 (88.0	)		—
Recurring Profit		— (102.0	)		— (102.0	)		—
Net Income		— (72.0	)		— (72.0	)		—

*	The top line figures in each cell are for NTT Communications Group. The figures in parentheses are for NTT Communications only.

Forward-looking statements and projected figures concerning the future performance of NTT Com, NTT and their respective subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT Com in light of information currently available to it regarding NTT Com, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT Com, NTT and their respective 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 the forecasts contained or referred to herein, as well as other risks included in NTT’s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.

-7-

November 11, 2016

Nippon Telegraph and Telephone Corporation

Supplementary Data for

the Six Months Ended September 30, 2016

Contents


	pages
1. Financial Results Summary (Consolidated)		1

2. Financial Results (Business Segments)		2

3. Financial Results (Holding Company and Subsidiaries)		3-5

4. Operating Data		6-8

The projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new 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 the forecasts contained herein, as well as other risks included in NTT’s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.

1.	Financial Results Summary (Consolidated)


	(Billions of yen)
	A Six Months Ended September 30, 2015			B Six Months Ended September 30, 2016									C Year Ending March 31, 2017 (Revised Forecast)			[Ref.] Year Ending March 31, 2017 (Previously Announced Forecast)
							*Change*			*Progress*
							*B-A*			*B/C*
Consolidated (US GAAP)
Operating Revenues		5,589.0			5,524.3			(64.6	)		48.4	%		11,410.0			11,450.0
Fixed Voice Related Services		667.6			619.3			(48.3	)		—			—			—
Mobile Voice Related Services		407.7			429.6			21.9			—			—			—
IP/Packet Communications Services		1,875.3			1,901.4			26.1			—			—			—
Sales of Telecommunications Equipment		463.8			423.1			(40.7	)		—			—			—
System Integration		1,437.3			1,397.1			(40.2	)		—			—			—
Other		737.3			753.9			16.6			—			—			—
Operating Expenses		4,855.5			4,597.8			(257.7	)		46.3	%		9,940.0			10,020.0
Cost of Services (excluding items shown separately below)		1,149.1			1,153.4			4.3			—			—			—
Cost of Equipment Sold (excluding items shown separately below)		431.1			406.4			(24.7	)		—			—			—
Cost of System Integration (excluding items shown separately below)		1,034.5			986.2			(48.2	)		—			—			—
Depreciation and Amortization		871.6			716.5			(155.2	)		—			—			—
Impairment Losses		3.6			14.7			11.0			—			—			—
Goodwill		—			4.5			4.5			—			—			—
Other		3.6			10.2			6.6			—			—			—
Selling, General and Administrative Expenses		1,365.5			1,320.6			(44.9	)		—			—			—
Operating Income		733.5			926.5			193.0			63.0	%		1,470.0			1,430.0
Income Before Income Taxes		717.4			896.9			179.5			62.3	%		1,440.0			1,410.0
Net Income Attributable to NTT		377.3			476.1			98.8			61.8	%		770.0			750.0
(Ref.) Details of “Cost of Services,” “Cost of Equipment Sold,” “Cost of System Integration” and “Selling, General and Administrative Expenses”
Personnel		1,146.9			1,127.4			(19.5	)		—			—			—
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		2,659.4			2,563.3			(96.0	)		—			—			—
Loss on Disposal of Property, Plant and Equipment		61.2			60.4			(0.8	)		—			—			—
Other Expenses		112.7			115.6			2.8			—			—			—
Total		3,980.2			3,866.7			(113.5	)		—			—			—
EBITDA and EBITDA Margin with Reconciliation
EBITDA (a+b)		1,637.7			1,675.7			38.0			53.9	%		3,108.0			3,068.0
a Operating Income		733.5			926.5			193.0			63.0	%		1,470.0			1,430.0
b Depreciation and Amortization, and Loss on Disposal of Property, Plant and Equipment		904.2			749.2			(155.0	)		45.7	%		1,638.0			1,638.0
EBITDA Margin [(c/d)X100]		29.3	%		30.3	%		1.0 points			—			27.2	%		26.8	%
c EBITDA (a+b)		1,637.7			1,675.7			38.0			53.9	%		3,108.0			3,068.0
d Operating Revenues		5,589.0			5,524.3			(64.6	)		48.4	%		11,410.0			11,450.0
Capital Investment^(1)(2)(3)
Capital Investment		645.6			665.8			20.2			38.9	%		1,710.0			1,720.0
Regional communications business		234.7			215.0			(19.6	)		36.6	%		587.0			589.0
Long distance and international communications business		96.4			101.3			4.9			41.5	%		244.0			239.0
Mobile communications business		219.5			246.1			26.6			42.1	%		585.0			585.0
Data communications business		58.2			67.7			9.4			44.2	%		153.0			150.0
Other business		36.8			35.7			(1.1	)		25.3	%		141.0			157.0
(Ref.) Core Group Companies
NTT (Holding Company)		3.3			3.7			0.3			20.8	%		18.0			18.0
NTT East		102.7			94.6			(8.1	)		35.0	%		270.0			270.0
NTT West		121.4			103.0			(18.3	)		37.5	%		275.0			275.0
NTT Communications		55.0			57.4			2.3			44.5	%		129.0			129.0
NTT DOCOMO (Consolidated)		219.5			246.1			26.6			42.1	%		585.0			585.0
NTT DATA (Consolidated)		58.2			67.6			9.4			44.2	%		153.0			150.0

Interest-Bearing Liabilities
	As of March 31, 2016			As of September 30, 2016			As of March 31, 2017 (Revised Forecast)			As of March 31, 2017 (Previously Announced Forecast)
Interest-Bearing Liabilities		4,163.3			4,091.8			4,300.0			4,300.0


Notes:	(1)	Capital Investment figures for domestic access network businesses for “A. Six Months Ended September, 2015” and “B. Six Months Ended September 30, 2016” and “C. Year Ending March 31, 2017 (Revised Forecast)” are 494.6 billion yen and 496.3 billion yen and 1,253.0 billion yen respectively.

	(2)	Capital Investments of NTT East, NTT West, and NTT Communications for “C. Year Ending March 31, 2017 (Revised Forecast)” include: 139.0 billion yen for voice transmission, 18.0 billion yen for data transmission, 93.0 billion yen for leased circuits, 1.0 billion yen for telegraph, 2.0 billion yen for R&D facilities, and 17.0 billion yen for joint facilities and others for NTT East; 150.0 billion yen for voice transmission, 28.0 billion yen for data transmission, 80.0 billion yen for leased circuits, 1.0 billion yen for telegraph, 2.0 billion yen for R&D facilities, and 14.0 billion yen for joint facilities and others for NTT West; and 33.0 billion yen for cloud computing platforms, 22.3 billion yen for data networks, 11.7 billion yen for voice communications, 2.1 billion yen for applications & content, 7.9 billion yen for solution services, and 51.7 billion yen for joint facilities and others for NTT Communications.

	(3)	Capital Investments of NTT East and NTT West for “C. Year Ending March 31, 2017 (Revised Forecast)” include approximately 90.0 billion yen and 75.0 billion yen in optical fiber-related investments for NTT East and NTT West, respectively. Coverage rates of optical fiber are expected to be 95% for NTT East and 93% for NTT West as of March 31, 2017.

-1-

2.	Financial Results (Business Segments)


	(Billions of yen)
	A Six Months Ended September 30, 2015		B Six Months Ended September 30, 2016								C Year Ending March 31, 2017 (Revised Forecast)		[Ref.] Year Ending March 31, 2017 (Previously Announced Forecast)
					*Change*			*Progress*
					*B-A*			*B/C*
Business segments⁽¹⁾
Regional communications business
Operating Revenues		1,680.6		1,620.4		(60.1	)		49.4	%		3,280.0		3,270.0
Operating Expenses		1,526.0		1,388.2		(137.8	)		46.9	%		2,960.0		2,980.0
Operating Income		154.6		232.2		77.6			72.6	%		320.0		290.0
Long distance and international communications business
Operating Revenues		1,097.2		1,038.8		(58.4	)		48.1	%		2,160.0		2,220.0
Operating Expenses		1,049.6		996.7		(53.0	)		48.4	%		2,060.0		2,110.0
Operating Income		47.6		42.2		(5.4	)		42.2	%		100.0		110.0
Mobile communications business
Operating Revenues		2,215.0		2,288.0		73.0			49.6	%		4,610.0		4,620.0
Operating Expenses		1,753.9		1,704.3		(49.6	)		46.4	%		3,675.0		3,715.0
Operating Income		461.2		583.7		122.6			62.4	%		935.0		905.0
Data communications business
Operating Revenues		745.7		762.1		16.3			46.2	%		1,650.0		1,630.0
Operating Expenses		707.5		726.2		18.6			46.8	%		1,550.0		1,510.0
Operating Income		38.2		35.9		(2.3	)		35.9	%		100.0		120.0
Other business
Operating Revenues		567.8		567.6		(0.2	)		43.0	%		1,320.0		1,320.0
Operating Expenses		540.1		537.9		(2.2	)		42.9	%		1,255.0		1,255.0
Operating Income		27.6		29.7		2.1			45.7	%		65.0		65.0


Note:			(1	)		Figures for each segment include inter-segment transactions.

-2-

3.	Financial Results (Holding Company and Subsidiaries)


	(Billions of yen)
	A Six Months Ended September 30, 2015		B Six Months Ended September 30, 2016								C Year Ending March 31, 2017 (Revised Forecast)		[Ref.] Year Ending March 31, 2017 (Previously Announced Forecast)
					*Change*			*Progress*
					*B-A*			*B/C*
NTT (Holding Company) (JPN GAAP)
Operating Revenues		256.5		301.9		45.3			63.6	%		475.0		473.0
Operating Expenses		61.3		60.2		(1.0	)		45.0	%		134.0		134.0
Operating Income		195.2		241.6		46.4			70.9	%		341.0		339.0
Non-Operating Revenues		14.1		12.3		(1.8	)		49.5	%		25.0		25.0
Non-Operating Expenses		15.6		14.6		(0.9	)		50.5	%		29.0		29.0
Recurring Profit		193.8		239.3		45.5			71.0	%		337.0		335.0
Net Income		193.1		217.7		24.6			68.7	%		317.0		336.0
NTT East (JPN GAAP)
Operating Revenues		859.5		823.5		(36.0)			49.8	%		1,653.0		1,650.0
Voice Transmission Services (excluding IP)⁽¹⁾		218.2		201.4		(16.8	)		51.2	%		393.0		393.0
IP Services		431.4		425.1		(6.3	)		50.7	%		839.0		836.0
Leased Circuit (excluding IP)		55.1		47.6		(7.4	)		49.2	%		97.0		97.0
Other		95.4		92.2		(3.1	)		46.1	%		324.0		324.0
Supplementary Business		59.1		57.0		(2.1	)		46.1	%		324.0		324.0
Operating Expenses		757.5		699.7		(57.8	)		47.3	%		1,478.0		1,485.0
Personnel		48.1		47.2		(0.8	)		49.8	%		95.0		95.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		483.8		455.2		(28.5	)		47.2	%		964.0		971.0
Depreciation and Amortization		173.9		144.8		(29.1	)		49.1	%		295.0		295.0
Loss on Disposal of Property, Plant and Equipment		15.1		14.5		(0.5	)		28.6	%		51.0		51.0
Taxes and Public Dues		36.4		37.7		1.2			51.7	%		73.0		73.0
Operating Income		101.9		123.7		21.8			70.7	%		175.0		165.0
Non-Operating Revenues		12.0		17.9		5.8			99.7	%		18.0		5.0
Non-Operating Expenses		2.8		2.5		(0.3	)		50.6	%		5.0		5.0
Recurring Profit		111.1		139.2		28.0			74.0	%		188.0		165.0
Net Income		78.1		99.9		21.8			76.9	%		130.0		114.0
NTT West (JPN GAAP)
Operating Revenues		754.6		730.5		(24.1	)		49.3	%		1,481.0		1,477.0
Voice Transmission Services (excluding IP)⁽¹⁾		218.9		201.5		(17.4	)		51.2	%		394.0		394.0
IP Services		350.7		349.1		(1.5	)		50.2	%		695.0		695.0
Leased Circuit (excluding IP)		48.4		43.8		(4.6	)		52.2	%		84.0		84.0
Other		70.4		68.8		(1.6	)		44.1	%		308.0		304.0
Supplementary Business		66.0		67.0		1.0			44.1	%		308.0		304.0
Operating Expenses		717.1		659.3		(57.8	)		47.2	%		1,396.0		1,402.0
Personnel		44.9		40.4		(4.5	)		49.9	%		81.0		81.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		460.2		425.5		(34.7	)		47.2	%		902.0		904.0
Depreciation and Amortization		159.7		141.3		(18.4	)		48.9	%		289.0		293.0
Loss on Disposal of Property, Plant and Equipment		18.7		18.1		(0.6	)		31.9	%		57.0		57.0
Taxes and Public Dues		33.3		33.8		0.5			50.5	%		67.0		67.0
Operating Income		37.5		71.2		33.6			83.8	%		85.0		75.0
Non-Operating Revenues		3.4		1.6		(1.7	)		27.7	%		6.0		6.0
Non-Operating Expenses		6.6		3.8		(2.7	)		35.1	%		11.0		11.0
Recurring Profit		34.3		69.0		34.6			86.3	%		80.0		70.0
Net Income		26.3		45.5		19.2			87.6	%		52.0		50.0


Note:			(1	)		Operating Revenues from Voice Transmission Services (excluding IP) of NTT East and NTT West for the six months ended September 30, 2016 include monthly charges, call charges and interconnection charges of 152.1 billion yen, 13.6 billion yen and 23.3 billion yen for NTT East, and 151.3 billion yen, 12.7 billion yen and 25.5 billion yen for NTT West, respectively.

-3-

3.	Financial Results (Holding Company and Subsidiaries)


	(Billions of yen)
	A Six Months Ended September 30, 2015			B Six Months Ended September 30, 2016									C Year Ending March 31, 2017 (Revised Forecast)		[Ref.] Year Ending March 31, 2017 (Previously Announced Forecast)
							*Change*			*Progress*
							*B-A*			*B/C*
NTT Communications (JPN GAAP)
Operating Revenues⁽¹⁾		441.9			447.1			5.1			48.6	%		920.0		910.0
Cloud Computing Platforms		33.8			34.7			0.9			41.4	%		84.0		88.0
Data Networks		182.7			190.0			7.2			49.7	%		382.0		375.0
Voice Communications		128.9			126.3			(2.5	)		51.4	%		246.0		243.0
Applications & Content		19.4			18.6			(0.7	)		49.1	%		38.0		38.0
Solution Services		69.2			69.7			0.4			45.3	%		154.0		151.0
Others		7.7			7.5			(0.1	)		47.0	%		16.0		15.0
Operating Expenses		401.9			396.9			(4.9	)		47.7	%		832.0		822.0
Personnel		38.3			38.2			(0.0	)		49.0	%		78.0		79.0
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses		203.8			189.6			(14.2	)		47.6	%		628.0		618.0
Communication Network Charges		100.5			109.4			8.9			47.6	%		628.0		618.0
Depreciation and Amortization		51.8			51.1			(0.7	)		48.7	%		105.0		105.0
Loss on Disposal of Property, Plant and Equipment		1.0			1.6			0.6			23.6	%		7.0		8.0
Taxes and Public Dues		6.3			6.8			0.5			48.9	%		14.0		12.0
Operating Income		40.0			50.1			10.1			57.0	%		88.0		88.0
Non-Operating Revenues		15.9			13.1			(2.7	)		59.7	%		22.0		22.0
Non-Operating Expenses		4.1			3.9			(0.1	)		49.5	%		8.0		8.0
Recurring Profit		51.8			59.3			7.5			58.2	%		102.0		102.0
Net Income		36.5			42.7			6.2			59.4	%		72.0		72.0
Dimension Data (IFRS)⁽²⁾⁽³⁾
Operating Revenues		454.0			405.2			(48.7	)		48.5	%		835.0		890.0
Operating Expenses		454.3			413.6			(40.7	)		49.8	%		831.0		886.0
Operating Income⁽⁴⁾		(0.3	)		(8.3	)		(8.0	)		—			4.0		4.0
Net Income Attributable to Dimension Data		(4.1	)		(11.9	)		(7.8	)		—			—		—


Notes:	(1)	The following are the main services included in each line item:

		—	Cloud Computing Platforms: “Data center services” and “Cloud Services (Enterprise Cloud, etc.)”

		—	Data Networks: “Closed network services (Arcstar Universal One, etc.)” and “Open network service (OCN, etc.)”

		—	Voice Communications: “Telephone services” and “VoIP services (050 plus, etc.)”

		—	Applications & Content: “Application services (Mail services, etc.)”

		—	Solution Services: “System integration services”

	(2)	Because Dimension Data’s statements of income from January 1 to December 31 are consolidated into NTT’s consolidated statements of income from April 1 to March 31, Dimension Data's financial results for the six months ended June 30, 2015 are stated under “A. Six Months Ended September 30, 2015,” its financial results for the six months ended June 30, 2016 are stated under “B. Six Months Ended September 30, 2016” and its forecasts for the twelve months ending December 31, 2016 are stated under “C. Year Ending March 31, 2017 (Forecast).”

	(3)	The conversion rate used for Dimension Data figures for the six months ended September 30, 2016 is USD1.00 = JPY111.70

	(4)	Operating Income for the six months ended September 30, 2016 under US GAAP was (13.1) billion yen.

-4-

3.	Financial Results (Holding Company and Subsidiaries)


	(Billions of yen)
	A Six Months Ended September 30, 2015			B Six Months Ended September 30, 2016									C Year Ending March 31, 2017 (Revised Forecast)			[Ref.] Year Ending March 31, 2017 (Previously Announced Forecast)
							*Change*			*Progress*
							*B-A*			*B/C*
NTT DOCOMO Consolidated (US GAAP)
Operating Revenues		2,215.0			2,288.3			73.4			49.6	%		4,610.0			4,620.0
Telecommunications Services		1,382.3			1,474.5			92.2			49.3	%		2,989.0			2,974.0
Mobile Communications Services		1,366.5			1,417.0			50.5			49.7	%		2,850.0			2,844.0
Voice Revenues		413.6			435.4			21.8			49.6	%		878.0			868.0
Packet Communications Revenues		952.9			981.6			28.6			49.8	%		1,972.0			1,976.0
Optical-fiber broadband services and other telecommunications services		15.8			57.5			41.7			41.4	%		139.0			130.0
Equipment Sales		416.8			380.1			(36.7	)		52.6	%		722.0			745.0
Other Operating Revenues		415.8			433.7			17.9			48.2	%		899.0			901.0
Operating Expenses		1,752.4			1,702.7			(49.7	)		46.4	%		3,670.0			3,710.0
Personnel		144.3			145.1			0.8			49.9	%		291.0			293.0
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses		1,135.3			1,132.1			(3.3	)		46.0	%		2,463.0			2,497.0
Depreciation and Amortization		297.1			220.5			(76.6	)		49.1	%		449.0			448.0
Loss on Disposal of Property, Plant and Equipment		22.5			24.8			2.2			29.5	%		84.0			81.0
Communication Network Charges		132.9			158.7			25.8			46.4	%		342.0			351.0
Taxes and Public Dues		20.2			21.5			1.3			52.5	%		41.0			40.0
Operating Income		462.6			585.6			123.0			62.3	%		940.0			910.0
Non-Operating Income (Loss)		(10.0	)		(4.4	)		5.6			110.8	%		(4.0	)		4.0
Income Before Income Taxes		452.6			581.2			128.6			62.1	%		936.0			914.0
Net Income Attributable to NTT DOCOMO		317.1			405.4			88.3			61.9	%		655.0			640.0
NTT DATA Consolidated (JPN GAAP)
Operating Revenues		743.2			779.6			36.4			46.7	%		1,670.0			1,650.0
Public & Social Infrastructure		176.7			186.7			10.0			43.8	%		426.0			426.0
Financial		236.6			246.3			9.7			47.4	%		520.0			520.0
Enterprise & Solutions		186.5			200.9			14.3			49.5	%		406.0			406.0
Global		252.6			268.0			15.3			47.1	%		569.0			549.0
Elimination or Corporate		(109.3	)		(122.4	)		(13.1	)		48.8	%		(251.0	)		(251.0	)
Cost of Sales		566.6			581.2			14.6			46.4	%		1,253.0			1,236.0
Gross Profit		176.6			198.3			21.7			47.6	%		417.0			414.0
Selling, General and Administrative Expenses		145.5			153.0			7.5			49.1	%		312.0			309.0
Operating Income		31.1			45.3			14.2			43.2	%		105.0			105.0
Non-Operating Income (Loss)		0.1			(0.2	)		(0.3	)		3.6	%		(7.0	)		(6.0	)
Recurring Profit		31.2			45.0			13.8			46.0	%		98.0			99.0
Net Income Attributable to Owners of Parent		15.7			29.0			13.3			59.3	%		49.0			58.0

-5-

4.	Operating Data


Number of Subscribers	(in thousands except for Public Telephones)
	A As of March 31, 2016		B As of June 30, 2016		C As of September 30, 2016								D As of March 31, 2017 (Revised Forecast)					[Ref.] As of March 31, 2017 (Previously Announced Forecast)
							E Change			*Progress*					F Change
							*C-A*			*E/F*					*D-A*
Telephone Subscriber Lines⁽¹⁾		19,943		19,671		19,413		(529	)		47.7	%		18,833		(1,110	)		18,833
NTT East		9,875		9,740		9,617		(258	)		59.9	%		9,445		(430	)		9,445
NTT West		10,068		9,931		9,796		(272	)		40.0	%		9,388		(680	)		9,388
INS-Net⁽²⁾		2,776		2,719		2,661		(115	)		46.9	%		2,531		(245	)		2,531
NTT East		1,414		1,384		1,356		(59	)		49.0	%		1,294		(120	)		1,294
NTT West		1,361		1,334		1,305		(56	)		44.8	%		1,236		(125	)		1,236
Telephone Subscriber Lines + INS-Net		22,718		22,390		22,074		(644	)		47.5	%		21,363		(1,355	)		21,363
NTT East		11,289		11,125		10,973		(316	)		57.5	%		10,739		(550	)		10,739
NTT West		11,429		11,265		11,102		(328	)		40.7	%		10,624		(805	)		10,624
Public Telephones		171,179		168,673		166,120		(5,059	)		58.9	%		162,589		(8,590	)		162,589
NTT East		78,199		76,511		74,846		(3,353	)		47.9	%		71,199		(7,000	)		71,199
NTT West		92,980		92,162		91,274		(1,706	)		107.3	%		91,390		(1,590	)		91,390
FLET’S ISDN		85		83		81		(4	)		72.1	%		79		(6	)		79
NTT East		37		36		35		(2	)		197.1	%		36		(1	)		36
NTT West		48		47		46		(2	)		47.0	%		43		(5	)		43
FLET’S ADSL		1,053		1,019		987		(66	)		41.9	%		896		(157	)		896
NTT East		475		459		444		(31	)		52.4	%		415		(60	)		415
NTT West		577		560		543		(34	)		35.5	%		480		(97	)		480
FLET’S Hikari (including Hikari Collaboration Model)^(3)(4)(5)		19,259		19,520		19,704		445			63.5	%		19,959		700			19,859
NTT East		10,666		10,839		10,958		291			72.8	%		11,066		400			10,966
NTT West		8,593		8,681		8,746		153			51.2	%		8,893		300			8,893
(incl.) Hikari Collaboration Model		4,691		5,912		6,917		2,226			57.8	%		8,541		3,850			8,241
NTT East		3,077		3,781		4,337		1,260			58.6	%		5,227		2,150			5,127
NTT West		1,615		2,131		2,580		966			56.8	%		3,315		1,700			3,115
Hikari Denwa⁽⁶⁾		17,374		17,451		17,545		170			85.2	%		17,574		200			17,474
NTT East		9,123		9,180		9,242		120			59.8	%		9,323		200			9,223
NTT West		8,252		8,271		8,302		51			—			8,252		—			8,252
Conventional Leased Circuit Services		232		231		229		(4	)		48.0	%		224		(8	)		224
NTT East		113		112		111		(2	)		50.1	%		109		(4	)		109
NTT West		120		118		118		(2	)		46.0	%		116		(4	)		116
High Speed Digital Services		115		114		112		(3	)		21.2	%		99		(16	)		99
NTT East		59		58		57		(2	)		38.5	%		54		(5	)		54
NTT West		56		56		55		(1	)		13.4	%		45		(11	)		45
NTT Group Major ISPs⁽⁷⁾		11,411		11,360		11,328		(82	)		57.0	%		11,266		(145	)		10,951
(incl.) OCN		8,046		7,969		7,905		(141	)		61.5	%		7,817		(229	)		7,544
(incl.) Plala		3,005		3,024		3,047		42			76.2	%		3,060		55			3,030
Hikari TV		3,052		3,047		3,041		(11	)		—			3,060		8			3,060
FLET’S TV Transmission Services⁽⁶⁾		1,432		1,445		1,464		32			132.8	%		1,456		24			1,456
NTT East		910		917		926		16			163.5	%		920		10			920
NTT West		522		528		538		16			110.8	%		536		14			536
Mobile⁽⁸⁾		70,964		71,614		72,943		1,980			51.6	%		74,800		3,836			75,300
(incl.) “Kake-hodai & Pake-aeru” billing plan		29,704		31,586		33,416		3,712			—			—		—			—
LTE (“Xi”)		38,679		39,893		41,281		2,603			40.5	%		45,100		6,421			44,600
FOMA		32,285		31,721		31,662		(623	)		24.1	%		29,700		(2,585	)		30,700
sp-mode		32,463		33,082		33,809		1,346			39.2	%		35,900		3,437			35,100
i-mode		18,770		18,136		17,416		(1,354	)		40.2	%		15,400		(3,370	)		16,500


Notes:	(1	)	Number of Telephone Subscriber Lines is the total of individual lines and central station lines (Subscriber Telephone Light Plan is included).

	(2	)	“INS-Net” includes “INS-Net 64” and “INS-Net 1500.” In terms of number of channels, transmission rate, and line use rate (base rate), “INS-Net 1500” is in all cases roughly ten times greater than “INS-Net 64.” For this reason, one “INS-Net 1500” subscription is calculated as ten “INS-Net 64” subscriptions (including subscriptions to the “INS-Net 64 Lite Plan”).

	(3	)	Number of “FLET’S Hikari (including Hikari Collaboration Model)” subscribers includes subscribers to “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, subscribers to “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West and subscribers to the “Hikari Collaboration Model,” the wholesale provision of services to service providers by NTT East and NTT West.

	(4	)	The comparative results for the six months ended September 30, 2016 compared to the year ended March 31, 2016 for “FLET’S Hikari (including Hikari Collaboration Model)” are as follows: the numbers of new subscribers for NTT East and NTT West were 836 thousand lines and 599 thousand lines, respectively, for a total of 1,435 thousand lines; the numbers of new subscribers (excluding switchover lines) for the “Hikari Collaboration Model” for NTT East and NTT West were 565 thousand lines and 390 thousand lines, respectively, for a total of 954 thousand lines; and the numbers of switchover lines for NTT East and NTT West were 872 thousand lines and 669 thousand lines, respectively, for a total of 1,541 thousand lines.

	(5	)	The comparative forecast “As of March 31, 2017 (Revised Forecast)” for the year ending March 31, 2017 compared to the results for the year ended March 31, 2016 for “FLET’S Hikari (including Hikari Collaboration Model)” are as follows: the numbers of new subscribers for NTT East and NTT West are expected to be 1,550 thousand lines and 1,150 thousand lines, respectively, for a total of 2,700 thousand lines; the numbers of new subscribers (excluding switchover lines) for the “Hikari Collaboration Model” for NTT East and NTT West are expected to be 1,000 thousand lines and 700 thousand lines, respectively, for a total of 1,700 thousand lines; and the numbers of switchover lines for NTT East and NTT West are expected to be 1,500 thousand lines and 1,200 thousand lines, respectively, for a total of 2,700 thousand lines.

	(6	)	Numbers of subscribers for “Hikari Denwa” and “FLET’S TV Transmission Services” include wholesale services provided to service providers by NTT East and NTT West.

	(7	)	“NTT Group Major ISPs” includes “WAKWAK” and “InfoSphere,” in addition to “OCN” and “Plala.”

	(8	)	Number of Mobile (including “LTE (‘Xi’)” and “FOMA”) telecommunications service subscribers includes communication module service subscribers.

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4.	Operating Data

Average Monthly Revenue per Unit (ARPU)

Average monthly revenue per unit, or ARPU, is used to measure average monthly operating revenues attributable to each designated service on a per user basis. In the case of NTT Group’s fixed-line business, ARPU is calculated by dividing revenue items included in the operating revenues of NTT Group’s regional communications business segment, that is, fixed-line (telephone subscriber lines and INS-NET) and FLET’S Hikari, by the number of active subscribers to the relevant services.

In the case of NTT Group’s mobile communications business, ARPU is calculated by dividing revenue items included in operating revenues from its mobile communications business segment, such as revenues from LTE(“Xi”) mobile phone services, FOMA mobile phone services and “docomo Hikari” services, that are incurred consistently each month, by the number of active users to the relevant services. The calculation of these figures excludes revenues that are not representative of monthly average usage, such as telecommunications equipment sales, activation fees and universal service charges.

NTT believes that its ARPU figures calculated in this way provide useful information regarding the monthly average usage of its subscribers. The revenue items included in the numerators of NTT Group’s ARPU figures are based on its financial results comprising its U.S. GAAP results of operations.


	(Yen)
	Three Months Ended June 30, 2016 (From April to June 2016)		Three Months Ended September 30, 2016 (From July to September 2016)		Six Months Ended September 30, 2015 (From April to September 2015)		Six Months Ended September 30, 2016 (From April to September 2016)		Year Ended March 31, 2016		Year Ending March 31, 2017 (Revised Forecast)		[Ref.] Year Ending March 31, 2017 (Previously Announced Forecast)
NTT East^{(1)(2)(3)(4)(5)}
Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines)		2,620		2,620		2,660		2,620		2,650		2,600		2,600
FLET’S Hikari ARPU⁽⁶⁾		5,340		5,280		5,570		5,310		5,510		5,270		5,270
Basic Monthly Charge		3,750		3,720		3,860		3,730		3,830		3,700		3,700
Optional Services		1,590		1,560		1,710		1,580		1,680		1,570		1,570
NTT West^{(1)(2)(3)(4)(5)}
Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines)		2,580		2,580		2,610		2,580		2,610		2,570		2,570
FLET’S Hikari ARPU⁽⁶⁾		5,350		5,300		5,520		5,330		5,470		5,250		5,250
Basic Monthly Charge		3,640		3,620		3,750		3,640		3,720		3,580		3,580
Optional Services		1,710		1,680		1,770		1,690		1,750		1,670		1,670
NTT DOCOMO^(7)(8)(9)
Aggregate ARPU		4,330		4,420		4,100		4,380		4,170		4,430		4,390
Voice ARPU (LTE(“Xi”)+FOMA)		1,240		1,250		1,180		1,240		1,210		1,250		1,240
Data ARPU		3,090		3,170		2,920		3,140		2,960		3,180		3,150
Packet ARPU (LTE(“Xi”)+FOMA)		2,960		2,990		2,890		2,980		2,910		2,980		2,980
“docomo Hikari” ARPU		130		180		30		160		50		200		170


Notes :	(1)	We compute the following two categories of ARPU for business conducted by each of NTT East and NTT West.

		•	Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines): Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and INS-NET Subscriber Lines, which are included in operating revenues from Voice Transmission Services (excluding IP Services), and revenues from “FLET’S ADSL” and “FLET’S ISDN,” which are included in operating revenues from IP Services.

		•	FLET’S Hikari ARPU: Calculated based on revenues from “FLET’S Hikari” (including “FLET’S Hikari” optional services), which are included in operating revenues from IP Services, revenues from monthly charges, call charges and connection device charges for “Hikari Denwa,” and revenues from “FLET’S Hikari” optional services, which are included in Supplementary Business revenues.

		—	“FLET’S Hikari” includes “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, and “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West. In addition, “FLET’S Hikari” also includes the “Hikari Collaboration Model,” the wholesale provision of services to service providers by NTT East and NTT West.

		—	“FLET’S Hikari” Optional Services includes wholesale services provided to service providers by NTT East and NTT West.

	(2)	Revenues from interconnection charges are excluded from the calculation of Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines) and FLET’S Hikari ARPU.

	(3)	Numbers of active subscribers used in the ARPU calculation of NTT East and NTT West are as below.

		—	Quarterly Results: Sum of number of active subscribers* for each month in the relevant quarter

		—	Six-month Results (from April to September): Sum of number of active subscribers* for each month from April to September

		—	FY Results: Sum of number of active subscribers* for each month from April to March

		—	FY Forecast (Previously Announced Forecast): Sum of the average expected active number of subscribers during the fiscal year {(number of subscribers at March 31, 2016 + number of expected subscribers at March 31, 2017)/2}x12

		—	FY Forecast (Revised Forecast): Sum of number of active subscribers* for each month from April to September and sum of the average expected active number of subscribers* for each month from October to March

			*active subscribers = (number of subscribers at end of previous month + number of subscribers at end of the current month)/2

	(4)	For purposes of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), the number of subscribers is determined based on the number of subscriptions for fixed-line services (Telephone Subscriber Lines + INS-NET Subscriber Lines).

	(5)	In terms of number of channels, transmission rate, and line use rate (base rate), INS-Net 1500 is in all cases roughly ten times greater than INS-Net 64. For this reason, for the purpose of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), one INS-Net 1500 subscription is calculated as ten INS-Net 64 subscriptions.

	(6)	For purposes of calculating FLET’S Hikari ARPU, the number of subscribers is determined based on the number of FLET’S Hikari subscribers, which includes subscribers to “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light,” “FLET’S Hikari Lightplus” and “FLET’S Hikari WiFi Access” provided by NTT East, subscribers to “B FLET’S,” “FLET’S Hikari Premium,” “FLET’S Hikari Mytown,” “FLET’S Hikari Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT West, and the “Hikari Collaboration Model,” the wholesale provision of services to service providers by NTT East and NTT West.

	(7)	The following is the formula we use to compute ARPU for NTT DOCOMO.

		•	Aggregate ARPU = Voice ARPU + Packet ARPU + “docomo Hikari” ARPU

		—	Voice ARPU: Voice ARPU Related Revenues (basic monthly charges, voice communication charges) / No. of active users

		—	Packet ARPU: Packet ARPU Related Revenues (basic monthly charges, packet communication charges) / No. of active users

		—	“docomo Hikari” ARPU: “docomo Hikari” ARPU Related Revenues (basic monthly charges, voice communication charges) / No. of active users

	(8)	Numbers of active users used in the ARPU calculation of NTT DOCOMO are as below.

		—	Quarterly Results: Sum of number of active users* for each month in the relevant quarter

		—	Six-month Results (from April to September): Sum of number of active users* for each month from April to September

		—	FY Results/FY Forecast (Previously Announced Forecast/Revised Forecast): Sum of number of active users/ expected number of active users for each month from April to March

			*active users = (number of users at end of previous month + number of users at end of current month)/2

	(9)	The number of “users” used to calculate ARPU is the total number of subscriptions, excluding the subscriptions listed below:

		a.	Subscriptions to communication module services, “Phone Number Storage,” “Mail Address Storage,” “docomo Business Transceiver” and wholesale telecommunications services and interconnecting telecommunications facilities that are provided to Mobile Virtual Network Operators (MVNOs); and

		b.	Data Plan subscriptions which the customer contracting for such subscription in his/her name also has a subscription for “Xi” services in his/her name.

			Note that revenues from communication module services, “Phone Number Storage,” “Mail Address Storage,” “docomo Business Transceiver” and wholesale telecommunications services and interconnecting telecommunications facilities that are provided to Mobile Virtual Network Operators (MVNOs) are not included in ARPU calculations.

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4.	Operating Data


Number of Employees										(Persons)
	A As of September 30, 2015		B As of September 30, 2016					C As of March 31, 2017 (Revised Forecast)		[Ref.] As of March 31, 2017 (Previously Announced Forecast)
					*Change*
					*B-A*
NTT Consolidated		249,450		248,650		(800	)		271,600		245,950
Regional communications business		72,500		67,300		(5,200	)		62,250		62,300
Long distance and international communications business		44,450		44,450		0			44,600		47,000
Mobile communications business		26,500		27,450		950			26,900		27,050
Data communications business		80,150		84,000		3,850			113,050		84,950
Other business		25,850		25,450		(400	)		24,800		24,650
Core Group Companies
NTT (Holding Company)		2,850		2,800		(50	)		2,750		2,750
NTT East		5,150		4,950		(200	)		4,750		4,700
NTT West		4,600		4,450		(150	)		4,400		4,400
NTT Communications		6,550		6,450		(100	)		6,350		6,450
NTT DOCOMO (Consolidated)		26,500		27,450		950			26,900		27,050
NTT DATA (Consolidated)		80,150		84,000		3,850			113,050		84,950

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