Financial Results for the Fiscal
Year Ended March 31, 2024
(25th Term)
May 10, 2024
Nippon Telegraph and Telephone East Corporation
Copyright © NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION. All rights reserved.
Financial Results
In FY2023, achieved increased revenues and profits; 12th consecutive year of increased profits, setting a new record high In FY2024, plan to increase revenues excluding the impact of the streamlining of non-core assets conducted in FY2023
(Units: Billions of yen, except Hikari Subscriptions)
IFRS
(Consolidated)
Operating Revenues
Operating Profit
Profit*
EBITDA
Capital Investment
Net increase (decrease) in
Hikari Subscriptions
(Number of Subscriptions)
FY2022
Results
1,702.2
285.4
202.4
493.9
248.9
+170,000
(13.33 million subscriptions)
FY2023
Results Year-over-year
1,710.5 +8.3
298.6 +13.2
206.9 +4.5
498.8 +4.9
243.8 (5.0)
+40,000 (130,000)
(13.37 million subscriptions)
FY2024
Forecast
1,655.0
210.0
147.0
414.0
245.0
+50,000
(13.42 million subscriptions)
Year-over-year
(55.5)
(88.6)
(59.9)
(84.8)
+1.2
+10,000
* Represents profit attributable to NTT East.
Copyright © NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION. All rights reserved.
1/9
Initiatives to Restore Earning Ability
298.6 | (Billions of yen) | |||||
285.4 | ||||||
Operating | Streamlining | FY2024 as the | ||||
Non-Core | baseline before | |||||
Assets | profitability | |||||
shifting towards | ||||||
Profit | 210.0 | 1 | ||||
2 | ||||||
3 | ||||||
4 | ||||||
2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
Migrating Legacy Services to Alternative Services,
1 and Improving Customer Engagement through CX×DX
Developing Optical Demand to Capture High-Speed
- Needs
- Turning Regional Customers in Loyal Customers
- Strengthening Networks to Support Increasing Traffic
Copyright © NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION. All rights reserved. | 2/9 |
① -1 Migrating Legacy Services to Alternative Services
Maximizing the approx. ¥200.0 billion Legacy Service Revenues Base
Legacy Services | Alternative Services | ||
Telephone Subscriptions | Hikari Services, Hikari Denwa | ||
INS-Net | Optical Line Phones | ||
FLET'S・ADSL | Maximize | Wireless Landline Phones | |
FLET'S・ISDN | Wireless Services | ||
STM (Dedicated Lines) | Migration | I-WAN and VPN Services | |
Telephone Books | Digital Lead | ||
Minimize Metal Cable Costs
- Avoiding the need to install new metal cables by using wireless landline phones and optical line phones
- Using construction opportunities, such as obstacle removals, to transition to wireless landline phones and optical line phones
- Bulk migration of telephone exchange offices (trial)
Copyright © NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION. All rights reserved. | 3/9 |
① -2 Improving Customer Engagement through CX×DX
Creating a simple business
flow that aims to both improve
customer engagement and optimize business efficiency
- Leveraging generative AI and other cutting-edge technologies
- Redeveloping operations systems
Develop business flow experts, and promote self-sufficiency and in-house development of business systems
• | Migrating outsourced business |
systems to in-house infrastructure | |
(cloud) | |
• | Expanding the scope of in-house |
system development and operation |
Accelerate the early-stage
transition of paper- and people-
based services into digital
services
-
Updating phone books into digital
services((Digital Lead, iTownPage) - Reducing environmental impact by eliminating paper forms
Manual
Shift to Web/ Tech Touch
Automated
Flow-Through
In-House
OperationData-Driven
CX Improvement through DX
Promotion
Cumulative from FY2024~FY2027
approx. 3,000 Positions Created
Third-PartyCompany's
InfrastructureInfrastructure
Cumulative from FY2024~FY2027
approx. ¥30.0 billion in Reductions
Paper Forms | Web-Based |
Cumulative from FY2024~FY2027
approx. ¥10.0 billion in Reductions
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- Developing Optical Demand to Capture High-Speed Needs
Net Change
in Optic
Lines
FY2022
170k
Lines
Hikari 10 Gbps
Apartments
FY2023 | FY2024 | FY | ||
2025 | ||||
Lines Opened | (Year-Over-Year) | |||
approx. 4x | Expanding the Hikari Cross (10Gbps) | Supporting high-speed needs in | ||
collaboration with partner businesses | ||||
(Compared to Time of | coverage area to cover all of eastern Japan | |||
Collaboration Partners | Launch) | (further expanding service areas) | ||
approx. 2x | ||||
for Hikari 10Gbps | * Hikari Cross coverage | |||
rate: 70% | ||||
Apartments | Collaborating with developers to | Accelerating fiber optic installations in | ||
(88,000) | efficiently expand fiber optic | new developments | ||
Net Change | connections to apartments and | ⇒ Expanding installations in existing | ||
redeveloped buildings | properties |
Decline in fiber optic demand and | |||
increase in cancellations due to | Temporary | ||
the end of the COVID-19 | increase in | ||
pandemic | cancellations | ||
from due to end | |||
of Hikari Light | |||
40k | 50k | ||
Lines | |||
30k | Lines | ||
Number of | 120k | ||
Hikari Cross | 4x | ||
Lines | Lines | Lines | |
Opened |
Copyright © NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION. All rights reserved. | 5/9 |
- Turning Regional Customers into Loyal Customers
Operating Revenues from Hikari-
Related Businesses
Supporting the Digitalization of Local Governments and Public Institutions
• One-stop provider of regional problem-solving and |
(Billions of yen)
336.0
Income from ancillary contract services
Income from high value added services
Income from Hikari Denwa
(Basic fees + call charges)
Annual revenue increases | Loyal Customer |
of approximately | Creation |
¥10.0 billion | |
+5.5 | |
342.0 | |
+9.5 |
+2.5
(5.5)
value creation, AI and digitalization needs from wide- |
ranging perspectives |
Local Development / Renewable Energy / Smart Agriculture
Ministries | Local Government | Education | Medical |
Government | Cloud | GIGA | National Medical |
Solutions Services Integration Platform | School | Information Platform | |
5th Generation |
LGWAN
Network / | Disaster Prevention / | BPO |
Delivery | Operation and Maintenance | Zero Trust |
Total Support for Small and Medium-Sized Enterprises
- Proactive and total support for office ICT environments through multi-channel collaboration
2022 | 2023 | 2024 | 2025 | Total support for the home environment | Multi-channel | |
Copyright © NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION. All rights reserved. | customer support | 6/9 |
④-1 Updating Existing Assets (to Profitable Assets for the AI Era)
IOWN×REIWA | ||||||||
5,000 Digital | 300 R&D Personnel | 400 Urban | ||||||
Development | ||||||||
Human | World-Leading | |||||||
Consultants | ||||||||
Resources | ||||||||
11,000 | Information Superhighway | 3,000 Regional | ||||||
Communications | ||||||||
Consultants | ||||||||
Engineers | ||||||||
Region-Supporting | Existing Assets | Community-Based | ||||||
Engineering Groups | Urban Development | |||||||
Experts |
Sharing
Updating to Next-Generation | Leveraging Assets to |
Create New Businesses and | |
Digital Infrastructure | Diverse Services |
Copyright © NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION. All rights reserved. | 7/9 |
④-2 Strengthening Networks To Support Increased Traffic
Network Infrastructure to Handle Increased Traffic
Attracting IX Operators | DC Exchange and |
Connection Point for | |
the Kanto Area | |
IX | |
CDN | |
Ikebukuro | |
Kuramae | |
DC Connectivity | |
Marunouchi | |
NTT East's DCs | Kayaba-Kabuto |
Other Companies' | DC Operators to be Connected |
DCs |
Kanagawa
Optimizing connectivity by
connecting a variety of operators
Future (Making Japan Asia's Data Hub)
Europe
North
AsiaAmerica
Australia
Leveraging IOWN-APN to increase connectivity
with landing stations and local operators
Copyright © NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION. All rights reserved. | 8/9 |
Major Topics and Collaborations
- 【National Agriculture and Food Research Organization and Mirai Co-Creation Farm Akita】Launched the data-drivenRemote Farming Support Project (June)
- 【Plantio and Tanita】Entered into collaboration for new urban farming business (July)
- 【Ichii and Okayama University of Science】Conducted demonstration experiments for the commercialization of land-based aquaculture
Smart Agriculture | of sockeye salmon in a complete closed-circuit system using optimal environmental water© (July) |
- 【Osaka University】Launched a freshness preservation consulting service to establish optimal preservation methods for local products (December)
- 【Tsuno in Miyazaki Prefecture, and Okayama University of Science】Successfully bred high-endfish Kue-Tamaand Tamakai in the world's first completely closed-circuit land-basedaquaculture system (February)
- 【NEC and Kajima】Completed the world's first successful demonstration experiment for construction vibration detection using communication optical fibers (August)
IOWN | • 【TV Tokyo】Conducted the world's first live broadcast using APN IOWN 1.0. on TV Tokyo and BS TV Tokyo for the "Tokyu Silvester | |||
Concert 2023-2024" (December) | ||||
• 【Mitsubishi Electric and NEC】Opened the "IOWN Lab" to create use cases using IOWN technology (January) | ||||
• 【18 5G Vendors】Launched a new co-creation project to accelerate social implementation of local 5G systems (November) | ||||
Local 5G and | • | 【JIG-SAW】Became the first Japanese telecommunications company to join the Connectivity Standards Alliance (CSA) and entered into | ||
a business alliance for the development of services to encourage widespread adoption of smart homes using the "Matter" standard | ||||
Wireless | ||||
(November) | ||||
• Opened the "Local 5G Smart Factory and Logistics Lab" (January) | ||||
Creating a | • 【Yokohama】Signed an agreement related to promoting "urban development aimed at creating a city where people want to live, continue | |||
Recycling-Oriented | living, and is chosen by others" (September) | |||
• 【University of Tokyo】Signed an industry-academia collaboration agreement with the aim of creating a next-generation digital network | ||||
Society | infrastructure and social entrepreneurs in order to achieve a regional recycling-oriented society (FY24, April) | |||
Other | • | To prevent fraud, number display and number request services were made free for senior citizens (May) | ||
• Bulk banning of phone numbers owned by scam call-forwarding companies (July) | ||||
9/9 | ||||
Copyright © NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION. All rights reserved. | ||||
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NTT - Nippon Telegraph & Telephone Corporation published this content on 10 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2024 04:28:08 UTC.