FORM 6-K

Percentages above represent changes from the previous period.

Change in consolidated financial results forecasts for the fiscal year ending March 31, 2014 during the six months ended September 30, 2013: None

The percentage changes from the previous period for the forecasts for the fiscal year ending March 31, 2014 for “Income before Income Taxes” and “Net Income Attributable to NTT” have been revised from those disclosed on May 10, 2013 as a result of changes to the figures in NTT’s consolidated financial statements disclosed during the fiscal year ended March 31, 2013, as described in “2. Others (3) Change of accounting policy” on page 8.

6-K 1 d616444d6k.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, 2013

Commission File Number 1-8910

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

(Translation of registrant’s name into English)

3-1, OTEMACHI 2-CHOME

CHIYODA-KU, TOKYO 100-8116 JAPAN

(Address of principal executive office)

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

Form 20-F x Form 40-F ¨

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

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

ANNOUNCEMENT OF FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2013

On November 8, 2013, 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, 2013. Attached hereto is a copy of the press release and supplementary data relating thereto, both dated November 8, 2013, 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, 2014. 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, 2013 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/ Kazuhiko Nakayama
	Name:	Kazuhiko Nakayama
	Title:	General Manager
		Investor Relations Office

Date: November 8, 2013


Financial Results Release	November 8, 2013
For the Six Months Ended September 30, 2013	[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: Kazuhiko Nakayama, Head of IR, Finance and Accounting Department / TEL +81-3-5205-5581

Scheduled filing date of quarterly securities report: November 11, 2013

Scheduled date of dividend payments: December 9, 2013

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, 2013 (April 1, 2013 – September 30, 2013)

Amounts are rounded off 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, 2013		5,266,070	0.5	%		653,027	(1.5	)%		675,778	5.1	%		323,540	10.3	%
Six months ended September 30, 2012		5,237,392	1.6	%		662,969	(3.3	)%		642,803	(5.7	)%		293,415	(1.0	)%

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


	Basic Earnings per Share Attributable to NTT			Diluted Earnings per Share Attributable to NTT
Six months ended September 30, 2013		277.46	(yen)		—	(yen)
Six months ended September 30, 2012		239.78	(yen)		—	(yen)


Notes:	Comprehensive income (loss) attributable to NTT:	For the six months ended September 30, 2013:	398,644 million yen 26.9%
		For the six months ended September 30, 2012:	314,251 million yen 9.4%

(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, 2013		19,542,648		10,666,975		8,311,341		42.5%		7,279.12 (yen)
March 31, 2013		19,549,067		10,522,003		8,231,439		42.1%		6,944.17 (yen)

Notes:

Figures for March 31, 2013 have been revised from those disclosed on May 10, 2013, as described in “2. Others (3) Change of accounting policy” on page 8.

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, 2013

—

80.00 (yen)

—

80.00 (yen)

160.00 (yen)

Year Ending March 31, 2014

—

80.00 (yen)

—

Year Ending March 31, 2014 (Forecasts)

—

90.00 (yen)

170.00 (yen)

Note: Change in forecasts of dividends during the six months ended September 30, 2013: Yes

3.	Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2014 (April 1, 2013 – March 31, 2014)


	(Millions of yen)
	Operating Revenues				Operating Income				Income before Income Taxes				Net Income Attributable to NTT				Basic Earnings per Share Attributable to NTT
Year Ending March 31, 2014		11,000,000	2.8	%		1,230,000	2.3	%		1,280,000	6.9	%		585,000	12.1	%		503.22	(yen)

– 1 –

* Notes

(1)

Change in significant consolidated subsidiaries during the six months ended September 30, 2013, which resulted in changes in the scope of consolidation: None

(2)

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


Note:		This refers to the application of simplified or exceptional accounting for quarterly consolidated financial statements.

(3)

Change of accounting policy

(i)

Change due to revision of accounting standards and other regulations: Yes

(ii)

Others: None

(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, 2013

1,323,197,235 shares

March 31, 2013

1,323,197,235 shares

Number of treasury stock:

September 30, 2013

181,392,161 shares

March 31, 2013

137,822,603 shares

Weighted average number of shares outstanding:

For the six months ended September 30, 2013 : 1,166,074,957 shares

For the six months ended September 30, 2012 : 1,223,705,175 shares

* 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 when this earnings release was issued, the review process on quarterly financial statements as required by the Financial Instruments and Exchange Act is still ongoing.

* Explanation for forecasts of operation and other notes:

Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently available 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, 2014, please refer to pages 7 and 22.

On Friday, November 8, 2013, 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.

– 2 –

1. Qualitative Information

(1) Qualitative Information Relating to Consolidated Business Results

i. Consolidated results

Six-Month Period Ended September 30, 2013 (April 1, 2013 – September 30, 2013)


	(Billions of yen)
	Six Months Ended September 30, 2012		Six Months Ended September 30, 2013		Change			Percent Change
Operating revenues		5,237.4		5,266.1		28.7			0.5	%
Operating expenses		4,574.4		4,613.0		38.6			0.8	%
Operating income		663.0		653.0		(9.9	)		(1.5	)%
Income before income taxes and equity in earnings (losses) of affiliated companies		642.8		675.8		33.0			5.1	%
Net income attributable to NTT		293.4		323.5		30.1			10.3	%

During the six months ended September 30, 2013, pursuant to its Medium-Term Management Strategy, adopted in November 2012, entitled “Towards the Next Stage,” NTT worked to expand its global cloud services and to strengthen its network service competitiveness in order to become a “valued partner” that customers continue to select.

In order to expand its global cloud services, NTT Group will take advantage of its ability as a group company to provide comprehensive and integrated cloud services from the information and telecommunications platform stage, such as providing data centers and an IP backbone, to the ICT management and applications stage.

Specifically, NTT Group established a service delivery center in the U.S. that provides outsourcing services for operating processes and information systems. The first user of these systems will be Yum! Brands, Inc., one of the world’s largest restaurant chains. NTT Group will be providing Yum! Brands, Inc. with outsourcing services for financial, general administrative, personnel and other managerial operations and information systems.

NTT Group has also signed a partnership agreement with the Texas Department of Transportation, under which NTT Group began providing comprehensive IT support, including application development and maintenance, service desk operations, network and communication systems maintenance and end-user support.

In addition, NTT entered into an agreement with the major shareholders of Arkadin International SAS (“Arkadin”) to acquire 91.2% of the outstanding shares of Arkadin, which provides voice, web, teleconference and other services in 32 countries around the world.

In the fixed-line communications field, NTT Group continued to work to increase new subscribers and improve long-term customer retention for its “FLET’S Hikari” services. NTT Group launched the sale of a discount set plan in eastern Japan for “TSUTAYA STICK,” a service that enables users of “FLET’S Hikari” to easily enjoy TSUTAYA TV from their homes. The plan combines “FLET’S Hikari” with TSUTAYA TV viewing points. In western Japan, for customers who simultaneously apply for “FLET’S Hikari” and “Hikari Motto Motto Wari,” NTT Group launched “Donto Wari,” a service that offers a further discount on basic monthly charges after application of the “Hikari Motto Motto Wari” discount.

In the mobile communications field, in order to make NTT DOCOMO’s unique services accessible to as many customers as possible and meet the wide-ranging needs of its customers, NTT Group worked to expand its smartphone user base by, among other things, launching sales of the new iPhone (*1). In addition, NTT Group increased the number of its “Xi” service base stations to 37,000 to further expand its service areas. NTT Group also made progress towards the provision of high-speed communications services with a maximum download speed of 150 Mbps by conducting tests in certain areas in Kanagawa, Osaka and Kyoto prefectures.

NTT Group worked to reduce costs related to fixed-line/mobile communications services in order to strengthen the competitiveness of its existing network services. Specifically, NTT worked to further increase the efficiency of its network facilities through the simplification and effective utilization of its existing network facilities, cost reductions in optical transmission line installation jobs by increasing jobs that do not require the dispatch of NTT employees, and also worked to further increase the efficiency of its maintenance and operational business.

– 3 –

As a result of these efforts, NTT Group’s consolidated operating revenues for the six-month period ended September 30, 2013 were ¥5,266.1 billion (an increase of 0.5% from the same period of the previous fiscal year), consolidated operating expenses were ¥4,613.0 billion (an increase of 0.8% from the same period of the previous fiscal year), consolidated operating income was ¥653.0 billion (a decrease of 1.5% from the same period of the previous fiscal year), consolidated income before income taxes and equity in earnings (losses) of affiliated companies was ¥675.8 billion (an increase of 5.1% from the same period of the previous fiscal year), and consolidated net income attributable to NTT was ¥323.5 billion (an increase of 10.3% from the same period of the previous fiscal year).

Note:

The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States.

(*1) “iPhone” is a registered trademark of Apple Inc. The iPhone trademark is used pursuant to AIPHONE CO., LTD.

ii. Segment results

Results by business segment are as follows.

Regional Communications Business Segment

Six-Month Period Ended September 30, 2013 (April 1, 2013 – September 30, 2013)


	(Billions of yen)
	Six Months Ended September 30, 2012		Six Months Ended September 30, 2013		Change			Percent Change
Operating revenues		1,809.0		1,749.2		(59.9	)		(3.3	)%
Operating expenses		1,758.8		1,673.5		(85.2	)		(4.8	)%
Operating income		50.3		75.6		25.3			50.4	%

Operating revenues in the regional communications segment for the six-month period ended September 30, 2013 were ¥1,749.2 billion (a decrease of 3.3% from the same period of the previous fiscal year) due to the slowdown in the increase in the number of “FLET’S Hikari” subscriptions. As a result, the increase in IP/packet communications revenues was unable to offset the decline in fixed voice related revenues resulting from the decline in fixed-line telephone subscriptions. On the other hand, operating expenses fell to ¥1,673.5 billion (a decrease of 4.8% from the same period of the previous fiscal year) due to a decrease in personnel expenses as a result of a decline in the number of employees, a decrease in depreciation expenses and other factors, including reductions in sales-related expenses. As a result, segment operating income for the six-month period ended September 30, 2013 was ¥75.6 billion (an increase of 50.4% from the same period of the previous fiscal year).

Number of subscriptions


	(Thousands of subscriptions)
	As of March 31, 2013		As of September 30, 2013		Change		Percent Change
FLET’S Hikari ⁽¹⁾		17,300		17,672		372		2.1	%
NTT East		9,750		9,985		235		2.4	%
NTT West		7,550		7,687		137		1.8	%
Hikari Denwa ⁽²⁾		15,169		15,664		495		3.3	%
NTT East		8,085		8,372		287		3.5	%
NTT West		7,084		7,292		208		2.9	%

Notes:

(1)	“FLET’S Hikari” includes “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light” 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.

(2)	The figures for Hikari Denwa indicate number of channels (in thousands).

– 4 –

Long Distance and International Communications Business Segment

Six-Month Period Ended September 30, 2013 (April 1, 2013 – September 30, 2013)


	(Billions of yen)
	Six Months Ended September 30, 2012		Six Months Ended September 30, 2013		Change			Percent Change
Operating revenues		814.4		863.9		49.5			6.1	%
Operating expenses		748.2		802.4		54.2			7.2	%
Operating income		66.2		61.5		(4.7	)		(7.1	)%

Operating revenues in the long distance and international communications business segment for the six-month period ended September 30, 2013 were ¥863.9 billion (an increase of 6.1% from the same period of the previous fiscal year). Although there was a decrease in fixed voice related revenues, operating revenues increased due to, among other things, an increase in system integration revenues and the depreciation of the yen. Operating expenses for the six-month period ended September 30, 2013 increased to ¥802.4 billion (an increase of 7.2% from the same period of the previous fiscal year) due to, among other things, the depreciation of the yen. As a result, segment operating income for the six-month period ended September 30, 2013 was ¥61.5 billion (a decrease of 7.1% from the same period of the previous fiscal year).

Mobile Communications Business Segment

Six-Month Period Ended September 30, 2013 (April 1, 2012 – September 30, 2013)


	(Billions of yen)
	Six Months Ended September 30, 2012		Six Months Ended September 30, 2013		Change			Percent Change
Operating revenues		2,207.3		2,199.0		(8.3	)		(0.4	)%
Operating expenses		1,732.6		1,728.4		(4.2	)		(0.2	)%
Operating income		474.7		470.6		(4.1	)		(0.9	)%

Despite an increase in communications handset sales revenues as a result of robust smartphone sales efforts and a steady increase in revenues associated with operations in new business sectors, operating revenues for the mobile communications business segment for the six-month period ended September 30, 2013 decreased to ¥2,199.0 billion (a decrease of 0.4% from the same period of the previous fiscal year) due to, among other things, a decline in voice revenues due to the impact of “Monthly Support” discount programs and a decrease in billable MOU. The eight new business sectors are media and content, finance and settlement of payments, commerce, medical and healthcare, M2M (machine-to-machine), aggregation and platforms, environment and ecology and safety and security. On the other hand, notwithstanding an increase in depreciation expenses from the expansion of “Xi” service base stations, due to a decrease in revenue-linked expenses and NTT Group’s ongoing cost-cutting efforts, operating expenses for the six-month period ended September 30, 2013 were ¥1,728.4 billion (a decrease of 0.2% from the same period of the previous fiscal year). As a result, segment operating income for the six-month period ended September 30, 2013 was ¥470.6 billion (a decrease of 0.9% from the same period of the previous fiscal year). MOU refers to average monthly minutes of use per subscriber.

Number of subscriptions


	(Thousands of subscriptions)
	As of March 31, 2013		As of September 30, 2013		Change			Percent Change
Mobile phone services		61,536		61,772		236			0.4	%
FOMA		49,970		45,374		(4,596	)		(9.2	)%
Xi		11,566		16,398		4,832			41.8	%
i-mode		32,688		29,228		(3,459	)		(10.6	)%
sp-mode		18,285		21,079		2,794			15.3	%

Notes:

(1)	Number of Mobile service subscribers includes communication module service subscribers, in addition to “FOMA” service and “Xi” service subscribers.

(2)	Effective March 3, 2008, FOMA services became mandatory for subscription to “2in1” services. Such FOMA service subscriptions to “2in1” services are included in the number of Mobile service subscribers and also in the number of FOMA service subscribers.

– 5 –

Data Communications Business Segment

Six-Month Period Ended September 30, 2013 (April 1, 2013 – September 30, 2013)


	(Billions of yen)
	Six Months Ended September 30, 2012		Six Months Ended September 30, 2013		Change			Percent Change
Operating revenues		607.3		613.9		6.5			1.1	%
Operating expenses		576.0		607.5		31.5			5.5	%
Operating income		31.4		6.4		(25.0	)		(79.5	)%

Despite a decrease in revenues caused by the scaling down of existing large-scale systems, operating revenues in the data communications business segment for the six-month period ended September 30, 2013 were ¥613.9 billion (an increase of 1.1% from the same period of the previous fiscal year) due to, among other things, the increase in operating revenues of NTT’s overseas subsidiaries and the depreciation of the yen. Operating expenses for the six-month period ended September 30, 2013 rose to ¥607.5 billion (an increase of 5.5% from the same period of the previous fiscal year) due to, among other things, the effects of an increase in unprofitable transactions and the depreciation of the yen. As a result, segment operating income for the six-month period ended September 30, 2013 was ¥6.4 billion (a decrease of 79.5% from the same period of the previous fiscal year).

Other Business Segment

Six-Month Period Ended September 30, 2013 (April 1, 2013 – September 30, 2013)


	(Billions of yen)
	Six Months Ended September 30, 2012		Six Months Ended September 30, 2013		Change			Percent Change
Operating revenues		562.4		602.6		40.3			7.2	%
Operating expenses		528.1		572.2		44.1			8.3	%
Operating income		34.2		30.5		(3.8	)		(11.1	)%

Operating revenues in the other business segment for the six-month period ended September 30, 2013 were ¥602.6 billion (an increase of 7.2% from the same period of the previous fiscal year) due to, among other things, increased revenues in the finance and construction and power businesses. On the other hand, operating expenses for the six-month period ended September 30, 2013 were ¥572.2 billion (an increase of 8.3% from the same period of the previous fiscal year) due to, among other things, an increase in revenue-linked expenses. As a result, segment operating income for the six-month period ended September 30, 2013 was ¥30.5 billion (a decrease of 11.1% from the same period of the previous fiscal year).

– 6 –

(2) Qualitative Information Relating to Consolidated Financial Position

Consolidated cash flows from operating activities for the six-month period ended September 30, 2013 were ¥1,436.6 billion (an increase of ¥345.1 billion (31.6%) from the same period of the previous fiscal year). This increase in cash flows was due to, among other factors, an increase in the collection of installment receivables from mobile devices in addition to the effect of the last day of the same period of the previous fiscal year being a bank holiday.

Consolidated cash flows from investing activities showed outlays of ¥1,012.0 billion (a decrease in outlays of ¥180.1 billion (15.1%) from the same period of the previous fiscal year). This decrease was due to, among other factors, a decrease in short-term investments associated with cash management activities exceeding three months in duration and a decrease in capital investments.

Consolidated cash flows from financing activities amounted to cash outlays of ¥298.9 billion (an increase in outlays of ¥185.9 billion (164.4%) from the same period of the previous fiscal year). This increase was due to, among other factors, an increase in the amount of stock repurchased.

As a result of the above, NTT Group’s consolidated cash and cash equivalents as of September 30, 2013 were ¥1,098.0 billion, an increase of ¥136.6 billion (14.2%) from the end of the previous fiscal year.


	(Billions of yen)
	Six Months Ended September 30, 2012			Six Months Ended September 30, 2013			Change			Percent Change
Cash flows from operating activities		1,091.5			1,436.6			345.1			31.6	%
Cash flows from investing activities		(1,192.2	)		(1,012.0	)		180.1			15.1	%
Cash flows from financing activities		(113.0	)		(298.9	)		(185.9	)		(164.4	)%

(3) Qualitative Information Relating to Consolidated Results Forecasts

There are no changes to the consolidated results forecasts for the fiscal year ending March 31, 2014 announced on May 10, 2013. For assumptions used in the consolidated results forecasts and other related matters, please see page 22.

– 7 –

2. OTHERS

(1)	Change in significant consolidated subsidiaries during the six months ended September 30, 2013, which 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

i.	Reclassification of accumulated other comprehensive income

Effective April 1, 2013, NTT Group adopted Accounting Standards Update (“ASU”) 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” issued by the Financial Accounting Standards Board (“FASB”).

This new accounting standard requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes thereto, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income (if the amount being reclassified is required to be reclassified in its entirety) or by way of cross-reference (if a partial reclassification). The adoption of this accounting standard did not have any impact on NTT Group’s financial conditions and results of operations.

ii.	Change in accounting estimate

Effective April 1, 2013, NTT Group has revised its estimate of the expected life of metal cables based on actual utilization to reflect an extended expected life. This modification complies with FASB Accounting Standards Codification Topic 250, Accounting Changes and Error Corrections, and will be applied going forward as a change in accounting estimates. The financial impact from this change in accounting estimate on the fiscal year ending March 31, 2014 to “Income before income taxes and equity in earnings (losses) of affiliated companies,” “Net income attributable to NTT” and “Per share of common stock” of “Net income attributable to NTT” is expected to be ¥11,537 million, ¥7,137 million, and ¥6.12, respectively.

iii.	Retrospective application of equity method for an investee

As a result of the application of the equity method for NTT Group’s investment in Philippine Long Distance Telephone Company from the beginning of the three months ended June 30, 2013, the equity method of accounting was applied retrospectively in accordance with Accounting Standards Codification Topic 323, Investments-Equity Method and Joint Ventures, issued by the FASB. Consequently, the reported consolidated financial statements for the fiscal year ended March 31, 2013 have been revised in NTT Group’s consolidated financial statements for this retrospective application.

The impact on major items on the consolidated balance sheet as of March 31, 2013, was a ¥140,512 million increase in “Investments in affiliated companies,” a ¥303,601 million decrease in “Marketable securities and other investments,” a ¥58,467 million increase in “Deferred income taxes” under “Investments and other assets” and a ¥85,456 million decrease in “Accumulated other comprehensive income (loss).”

The impact on major items on the consolidated statement of income for the year ended March 31, 2013, was a ¥3,452 million decrease in “Other, net” under “Other income (expenses),” a ¥1,614 million increase in “Equity in earnings (losses) of affiliated companies” and a ¥2,139 million decrease in “Net income attributable to NTT.”

The impact on “Net income attributable to NTT” under “Per share of common stock” is a decrease of ¥1.77.

iv.	Reclassifications

Effective as of the three month period ended June 30, 2013, in connection with NTT Group’s current state of business and initiatives such as efforts to expand into new business areas in the mobile communications business, NTT has reclassified, among other things, part of its “Mobile Voice Related Services revenues” and “IP/Packet Communications Services revenues” as “Other revenues,” and part of its “Other revenues” as “System Integration revenues.” Results for the six months ended September 30, 2012 reflect such reclassification.

– 8 –

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets


	Millions of yen
	March 31, 2013			September 30, 2013			Increase (Decrease)
ASSETS
Current assets:
Cash and cash equivalents	¥	961,433		¥	1,098,043		¥	136,610
Short-term investments		53,753			63,373			9,620
Notes and accounts receivable, trade		2,428,099			2,053,384			(374,715	)
Allowance for doubtful accounts		(44,961	)		(41,563	)		3,398
Accounts receivable, other		357,255			311,068			(46,187	)
Inventories		350,721			371,495			20,774
Prepaid expenses and other current assets		338,794			470,105			131,311
Deferred income taxes		224,194			231,831			7,637

Total current assets		4,669,288			4,557,736			(111,552	)

Property, plant and equipment:
Telecommunications equipment		13,432,047			13,175,212			(256,835	)
Telecommunications service lines		15,143,239			15,255,677			112,438
Buildings and structures		5,993,215			6,045,005			51,790
Machinery, vessels and tools		1,868,972			1,909,664			40,692
Land		1,139,636			1,155,504			15,868
Construction in progress		334,326			370,871			36,545

		37,911,435			37,911,933			498
Accumulated depreciation		(28,134,748	)		(28,194,283	)		(59,535	)

Net property, plant and equipment		9,776,687			9,717,650			(59,037	)

Investments and other assets:
Investments in affiliated companies		551,883			558,994			7,111
Marketable securities and other investments		357,222			409,063			51,841
Goodwill		824,216			904,875			80,659
Software		1,340,682			1,299,993			(40,689	)
Other intangible assets		278,272			277,375			(897	)
Other assets		997,989			1,066,835			68,846
Deferred income taxes		752,828			750,127			(2,701	)

Total investments and other assets		5,103,092			5,267,262			164,170

Total assets	¥	19,549,067		¥	19,542,648		¥	(6,419	)

– 9 –


	Millions of yen
	March 31, 2013			September 30, 2013			Increase (Decrease)
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	77,455		¥	236,757		¥	159,302
Current portion of long-term debt		703,304			661,698			(41,606	)
Accounts payable, trade		1,436,643			1,102,301			(334,342	)
Current portion of obligations under capital leases		16,368			17,033			665
Accrued payroll		437,609			412,596			(25,013	)
Accrued interest		8,971			8,275			(696	)
Accrued taxes on income		228,736			238,470			9,734
Accrued consumption tax		54,667			45,581			(9,086	)
Advances received		183,723			193,145			9,422
Other		351,913			389,487			37,574

Total current liabilities		3,499,389			3,305,343			(194,046	)

Long-term liabilities:
Long-term debt		3,234,631			3,216,957			(17,674	)
Obligations under capital leases		36,254			35,948			(306	)
Liability for employees’ retirement benefits		1,505,571			1,540,203			34,632
Accrued liabilities for point programs		156,233			144,923			(11,310	)
Deferred income taxes		198,824			205,943			7,119
Other		396,162			426,356			30,194

Total long-term liabilities		5,527,675			5,570,330			42,655

Equity:
NTT shareholders’ equity
Common stock, no par value		937,950			937,950			—
Additional paid-in capital		2,827,612			2,827,009			(603	)
Retained earnings		5,227,268			5,455,978			228,710
Accumulated other comprehensive income (loss)		(192,932	)		(117,828	)		75,104
Treasury stock, at cost		(568,459	)		(791,768	)		(223,309	)

Total NTT shareholders’ equity		8,231,439			8,311,341			79,902

Noncontrolling interests		2,290,564			2,355,634			65,070

Total equity		10,522,003			10,666,975			144,972

Total liabilities and equity	¥	19,549,067		¥	19,542,648		¥	(6,419	)

– 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
	2012			2013			Increase (Decrease)
Operating revenues:
Fixed voice related services	¥	866,851		¥	794,482		¥	(72,369	)
Mobile voice related services		659,295			535,049			(124,246	)
IP / packet communications services		1,850,855			1,863,808			12,953
Sale of telecommunication equipment		402,333			442,229			39,896
System integration		940,272			1,029,127			88,855
Other		517,786			601,375			83,589

		5,237,392			5,266,070			28,678

Operating expenses:
Cost of services (exclusive of items shown separately below)		1,125,265			1,149,202			23,937
Cost of equipment sold (exclusive of items shown separately below)		418,376			370,696			(47,680	)
Cost of system integration (exclusive of items shown separately below)		636,653			736,640			99,987
Depreciation and amortization		930,095			919,120			(10,975	)
Impairment loss		788			162			(626	)
Selling, general and administrative expenses		1,463,246			1,434,234			(29,012	)
Goodwill and other intangible asset impairments		—			2,989			2,989

		4,574,423			4,613,043			38,620

Operating income		662,969			653,027			(9,942	)

Other income (expenses):
Interest and amortization of bond discounts and issue costs		(28,513	)		(24,757	)		3,756
Interest income		8,759			8,772			13
Other, net		(412	)		38,736			39,148

		(20,166	)		22,751			42,917

Income before income taxes and equity in earnings (losses) of affiliated companies		642,803			675,778			32,975

Income tax expense (benefit):
Current		240,343			265,771			25,428
Deferred		10,238			(8,735	)		(18,973	)

		250,581			257,036			6,455

Income before equity in earnings (losses) of affiliated companies		392,222			418,742			26,520

Equity in earnings (losses) of affiliated companies		4,680			5,256			576

Net income		396,902			423,998			27,096

Less – Net income attributable to noncontrolling interests		103,487			100,458			(3,029	)

Net income attributable to NTT	¥	293,415		¥	323,540		¥	30,125


Per share of common stock:
Weighted average number of shares outstanding (Shares)		1,223,705,175			1,166,074,957
Net income attributable to NTT (Yen)	¥	239.78		¥	277.46

Consolidated Statements of Comprehensive Income


	Millions of yen
	2012			2013			Increase (Decrease)
Net income	¥	396,902		¥	423,998		¥	27,096
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities		12,407			17,177			4,770
Unrealized gain (loss) on derivative instruments		(727	)		(3,469	)		(2,742	)
Foreign currency translation adjustments		(458	)		70,840			71,298
Pension liability adjustments		8,091			6,028			(2,063	)
Total other comprehensive income (loss)		19,313			90,576			71,263
Total comprehensive income (loss)		416,215			514,574			98,359
Less – Comprehensive income attributable to noncontrolling interests		101,964			115,930			13,966

Total comprehensive income (loss) attributable to NTT	¥	314,251			398,644		¥	84,393

– 11 –

THREE-MONTH PERIOD ENDED SEPTEMBER 30

Consolidated Statements of Income


	Millions of yen
	2012			2013			Increase (Decrease)
Operating revenues:
Fixed voice related services	¥	433,727		¥	403,510		¥	(30,217	)
Mobile voice related services		321,697			263,798			(57,899	)
IP / packet communications services		924,659			923,301			(1,358	)
Sale of telecommunication equipment		233,914			210,613			(23,301	)
System integration		485,193			541,788			56,595
Other		262,270			313,943			51,673

		2,661,460			2,656,953			(4,507	)

Operating expenses:
Cost of services (exclusive of items shown separately below)		562,831			592,558			29,727
Cost of equipment sold (exclusive of items shown separately below)		238,951			172,612			(66,339	)
Cost of system integration (exclusive of items shown separately below)		333,480			400,039			66,559
Depreciation and amortization		469,812			462,626			(7,186	)
Impairment loss		618			80			(538	)
Selling, general and administrative expenses		745,106			722,012			(23,094	)
Goodwill and other intangible asset impairments		—			2,925			2,925

		2,350,798			2,352,852			2,054

Operating income		310,662			304,101			(6,561	)

Other income (expenses):
Interest and amortization of bond discounts and issue costs		(14,597	)		(12,409	)		2,188
Interest income		4,435			4,411			(24	)
Other, net		(4,270	)		23,591			27,861

		(14,432	)		15,593			30,025

Income before income taxes and equity in earnings (losses) of affiliated companies		296,230			319,694			23,464

Income tax expense (benefit):
Current		128,146			146,053			17,907
Deferred		(10,538	)		(26,578	)		(16,040	)

		117,608			119,475			1,867

Income before equity in earnings (losses) of affiliated companies		178,622			200,219			21,597

Equity in earnings (losses) of affiliated companies		1,762			2,167			405

Net income		180,384			202,386			22,002

Less – Net income attributable to noncontrolling interests		43,529			45,563			2,034

Net income attributable to NTT	¥	136,855		¥	156,823		¥	19,968


Per share of common stock:
Weighted average number of shares outstanding (Shares)		1,223,645,346			1,152,310,900
Net income attributable to NTT (Yen)	¥	111.84		¥	136.09

Consolidated Statements of Comprehensive Income


	Millions of yen
	2012			2013		Increase (Decrease)
Net income	¥	180,384		¥	202,386	¥	22,002
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities		12,602			6,509		(6,093	)
Unrealized gain (loss) on derivative instruments		(2,088	)		316		2,404
Foreign currency translation adjustments		(46,206	)		16,105		62,311
Pension liability adjustments		4,236			3,049		(1,187	)
Total other comprehensive income (loss)		(31,456	)		25,979		57,435
Total comprehensive income (loss)		148,928			228,365		79,437
Less – Comprehensive income attributable to noncontrolling interests		36,692			50,577		13,885

Total comprehensive income (loss) attributable to NTT	¥	112,236			177,788	¥	65,552

– 12 –

(3) Consolidated Statements of Cash Flows

SIX-MONTH PERIOD ENDED SEPTEMBER 30


	Millions of yen
	2012			2013			Increase (Decrease)
Cash flows from operating activities:
Net income	¥	396,902		¥	423,998		¥	27,096
Adjustments to reconcile net income to net cash provided by operating activities –
Depreciation and amortization		930,095			919,120			(10,975	)
Impairment loss		788			162			(626	)
Deferred taxes		10,238			(8,735	)		(18,973	)
Goodwill and other intangible asset impairments		—			2,989			2,989
Loss on disposal of property, plant and equipment		37,718			37,477			(241	)
Equity in (earnings) losses of affiliated companies		(4,680	)		(5,256	)		(576	)
(Increase) decrease in notes and accounts receivable, trade		125,681			386,937			261,256
(Increase) decrease in inventories		(50,442	)		(19,098	)		31,344
(Increase) decrease in other current assets		(88,169	)		(94,214	)		(6,045	)
Increase (decrease) in accounts payable, trade and accrued payroll		(266,644	)		(251,502	)		15,142
Increase (decrease) in accrued consumption tax		3,937			(10,033	)		(13,970	)
Increase (decrease) in accrued interest		111			(728	)		(839	)
Increase (decrease) in advances received		(6,148	)		3,890			10,038
Increase (decrease) in accrued taxes on income		11,311			8,233			(3,078	)
Increase (decrease) in other current liabilities		20,128			15,166			(4,962	)
Increase (decrease) in liability for employees’ retirement benefits		28,975			42,372			13,397
Increase (decrease) in other long-term liabilities		(31,021	)		11,059			42,080
Other		(27,277	)		(25,210	)		2,067

Net cash provided by operating activities	¥	1,091,503		¥	1,436,627		¥	345,124

– 13 –


	Millions of yen
	2012			2013			Increase (Decrease)
Cash flows from investing activities:
Payments for property, plant and equipment	¥	(809,027	)	¥	(750,327	)	¥	58,700
Payments for acquisitions of intangibles		(220,600	)		(193,307	)		27,293
Proceeds from sale of property, plant and equipment		3,343			20,281			16,938
Payments for purchase of non-current investments		(24,099	)		(34,098	)		(9,999	)
Proceeds from sale and redemption of non-current investments		8,823			11,289			2,466
Acquisitions of subsidiaries, net of cash acquired		(35,425	)		(35,063	)		362
Payments for purchase of short-term investments		(501,721	)		(44,544	)		457,177
Proceeds from redemption of short-term investments		390,376			42,675			(347,701	)
Other		(3,856	)		(28,948	)		(25,092	)

Net cash used in investing activities		(1,192,186	)		(1,012,042	)		180,144

Cash flows from financing activities:
Proceeds from issuance of long-term debt		150,162			275,549			125,387
Payments for settlement of long-term debt		(195,949	)		(350,292	)		(154,343	)
Proceeds from issuance of short-term debt		1,348,429			3,373,100			2,024,671
Payments for settlement of short-term debt		(1,263,404	)		(3,222,508	)		(1,959,104	)
Dividends paid		(85,664	)		(94,830	)		(9,166	)
Proceeds from sale of (payments for acquisition of) treasury stock, net		(7,707	)		(223,308	)		(215,601	)
Acquisition of treasury stock by subsidiary		(1,255	)		(5,058	)		(3,803	)
Other		(57,652	)		(51,550	)		6,102

Net cash used in financing activities		(113,040	)		(298,897	)		(185,857	)

Effect of exchange rate changes on cash and cash equivalents		1,179			10,922			9,743

Net increase (decrease) in cash and cash equivalents		(212,544	)		136,610			349,154
Cash and cash equivalents at beginning of period		1,020,143			961,433			(58,710	)

Cash and cash equivalents at end of period	¥	807,599		¥	1,098,043		¥	290,444

Cash paid during the period for:
Interest	¥	28,196		¥	25,453		¥	(2,743	)
Income taxes, net	¥	226,587		¥	258,719		¥	32,132

– 14 –

(4) Going Concern Assumption

None

(5) Business Segments

SIX-MONTH PERIOD ENDED SEPTEMBER 30

1.	Sales and operating revenues


	(Millions of yen)
	Six months ended September 30, 2012			Six months ended September 30, 2013			Increase (Decrease)
Regional communications business
External customers		1,594,504			1,538,409			(56,095	)
Intersegment		214,545			210,743			(3,802	)

Total		1,809,049			1,749,152			(59,897	)

Long-distance and international communications business
External customers		763,260			815,481			52,221
Intersegment		51,159			48,418			(2,741	)

Total		814,419			863,899			49,480

Mobile communications business
External customers		2,188,733			2,179,057			(9,676	)
Intersegment		18,587			19,914			1,327

Total		2,207,320			2,198,971			(8,349	)

Data communications business
External customers		534,131			555,065			20,934
Intersegment		73,214			58,822			(14,392	)

Total		607,345			613,887			6,542

Other business
External customers		156,764			178,058			21,294
Intersegment		405,601			424,575			18,974

Total		562,365			602,633			40,268

Elimination		(763,106	)		(762,472	)		634

Consolidated total		5,237,392			5,266,070			28,678

2.	Segment profit


	(Millions of yen)
	Six months ended September 30, 2012		Six months ended September 30, 2013		Increase (Decrease)
Segment profit
Regional communications business		50,274		75,617		25,343
Long-distance and international communications business		66,210		61,485		(4,725	)
Mobile communications business		474,741		470,620		(4,121	)
Data communications business		31,391		6,431		(24,960	)
Other business		34,249		30,455		(3,794	)

Total segment profit		656,865		644,608		(12,257	)

Elimination		6,104		8,419		2,315

Consolidated total		662,969		653,027		(9,942	)

– 15 –

THREE-MONTH PERIOD ENDED SEPTEMBER 30

1.	Sales and operating revenues


	(Millions of yen)
	Three months ended September 30, 2012			Three months ended September 30, 2013			Increase (Decrease)
Regional communications business
External customers		799,599			775,193			(24,406	)
Intersegment		109,017			107,180			(1,837	)

Total		908,616			882,373			(26,243	)

Long-distance and international communications business
External customers		386,685			423,610			36,925
Intersegment		25,466			24,290			(1,176	)

Total		412,151			447,900			35,749

Mobile communications business
External customers		1,122,921			1,075,186			(47,735	)
Intersegment		12,118			10,212			(1,906	)

Total		1,135,039			1,085,398			(49,641	)

Data communications business
External customers		274,647			286,047			11,400
Intersegment		36,245			34,560			(1,685	)

Total		310,892			320,607			9,715

Other business
External customers		77,608			96,917			19,309
Intersegment		234,043			216,138			(17,905	)

Total		311,651			313,055			1,404

Elimination		(416,889	)		(392,380	)		24,509

Consolidated total		2,661,460			2,656,953			(4,507	)

2.	Segment profit


	(Millions of yen)
	Three months ended September 30, 2012		Three months ended September 30, 2013			Increase (Decrease)
Segment profit
Regional communications business		29,689		32,337			2,648
Long-distance and international communications business		35,683		27,182			(8,501	)
Mobile communications business		206,678		223,977			17,299
Data communications business		16,604		(656	)		(17,260	)
Other business		18,981		16,711			(2,270	)

Total segment profit		307,635		299,551			(8,084	)

Elimination		3,027		4,550			1,523

Consolidated total		310,662		304,101			(6,561	)

– 16 –

(6) NTT Shareholders’ Equity

1. Dividends

Cash dividends paid


Resolution		The shareholders’ meeting on June 25, 2013
Class of shares		Common stock
Source of dividends		Retained earnings
Total cash dividends paid		¥94,830 million
Cash dividends per share		¥80
Date of record		March 31, 2013
Date of payment		June 26, 2013

Cash dividends declared


Resolution		The Board of Directors’ meeting on November 8, 2013
Class of shares		Common stock
Source of dividends		Retained earnings
Total cash dividends declared		¥91,344 million
Cash dividends per share		¥80
Date of record		September 30, 2013
Date of payment		December 9, 2013

2. Significant Changes in NTT Shareholders’ Equity

None.

3. Others

On May 10, 2013, the board of directors of NTT resolved that NTT may acquire up to 50 million shares of its outstanding common stock for an amount in total not exceeding ¥250 billion from May 13, 2013 through March 31, 2014. Based on this resolution, NTT repurchased 43,556,500 shares of its common stock for a total purchase price of ¥223,242 million between May 2013 and September 2013.

NTT also repurchased 5,180,700 shares of its common stock for a total purchase price of ¥26,757 million in October 2013, and concluded the repurchase of its common stock authorized by the board of directors’ resolution.

On November 8, 2013, the board of directors resolved that NTT will cancel 186,500,000 shares held as treasury stock on November 15, 2013.

(7) Subsequent events

Please see note 6 for details on the resolutions regarding NTT’s repurchase of its common stock and the cancellation of treasury stock.

– 17 –

4. (Reference)

NON-CONSOLIDATED FINANCIAL STATEMENTS

(1) Non-Consolidated Balance Sheets

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	March 31, 2013		September 30, 2013
ASSETS
Current assets:
Cash and bank deposits		20,869		6,579
Accounts receivable, trade		2,769		355
Supplies		227		277
Subsidiary deposits		101,312		77,063
Other		431,032		514,303

Total current assets		556,211		598,579

Fixed assets:
Property, plant and equipment		169,788		165,409
Intangible fixed assets		43,905		38,331
Investments and other assets
Investments in subsidiaries and affiliated companies		5,073,510		5,093,770
Long-term loans receivable to subsidiaries		1,588,072		1,478,972
Other		36,364		41,155

Total investments and other assets		6,697,946		6,613,898

Total fixed assets		6,911,640		6,817,639

TOTAL ASSETS		7,467,851		7,416,218


Notes:	1.	These quarterly financial statements are exempt from auditor’s review in the legal disclosure.
	2.	These quarterly financial statements are prepared based on “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

– 18 –

(Reference)


	Millions of yen
	March 31, 2013			September 30, 2013
LIABILITIES
Current liabilities:
Accounts payable, trade		184			43
Current portion of corporate bonds		120,000			199,997
Current portion of long-term borrowings		223,300			222,500
Short-term borrowings		—			150,000
Accrued taxes on income		19,708			11,514
Deposit received from subsidiaries		89,376			80,307
Other		32,151			23,063

Total current liabilities		484,720			687,427

Long-term liabilities:
Corporate bonds		1,046,258			1,006,245
Long-term borrowings		1,021,530			932,430
Long-term borrowings from subsidiary		240,000			240,000
Liability for employees’ retirement benefits		31,858			32,170
Asset retirement obligations		1,140			1,370
Other		1,171			1,086

Total long-term liabilities		2,341,959			2,213,302

TOTAL LIABILITIES		2,826,680			2,900,729

NET ASSETS
Shareholders’ equity:
Common stock		937,950			937,950
Capital surplus		2,672,826			2,672,827
Earned surplus		1,598,861			1,697,245
Treasury stock		(568,458	)		(791,768	)

Total shareholders’ equity		4,641,179			4,516,255

Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		(7	)		(766	)

Total unrealized gains (losses), translation adjustments, and others		(7	)		(766	)

TOTAL NET ASSETS		4,641,171			4,515,488

TOTAL LIABILITIES AND NET ASSETS		7,467,851			7,416,218


Notes:	1.	These quarterly financial statements are exempt from auditor’s review in the legal disclosure.
	2.	These quarterly financial statements are prepared based on “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

– 19 –

(Reference)

(2) Non-Consolidated Statements of Income

SIX-MONTH PERIOD ENDED SEPTEMBER 30

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	2012		2013
Operating revenues		264,109		264,571
Operating expenses		70,649		66,628

Operating income		193,459		197,943

Non-operating revenues:
Interest income		12,904		10,914
Lease and rental income		5,828		5,671
Miscellaneous income		816		845

Total non-operating revenues		19,549		17,431

Non-operating expenses:
Interest expenses		8,473		7,639
Corporate bond interest expenses		9,357		7,872
Miscellaneous expenses		3,791		6,033

Total non-operating expenses		21,622		21,544

Recurring profit		191,385		193,829

Income before income taxes		191,385		193,829

Income taxes		479		615

Net income		190,906		193,213

(Reference) Major components of operating revenues
Dividends received		190,171		195,031
Revenues from group management		9,500		9,250
Revenues from basic R&D		60,499		57,249


Notes:	1.	These quarterly financial statements are exempt from auditor’s review in the legal disclosure.
	2.	These quarterly financial statements are prepared based on “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

– 20 –

(Reference)

(3) Non-Consolidated Statements of Cash Flows

SIX-MONTH PERIOD ENDED SEPTEMBER 30

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	2012			2013
Cash flows from operating activities:
Income before income taxes		191,385			193,829
Depreciation and amortization		19,145			19,200
Loss on disposal of property, plant and equipment		431			221
Dividends received		(190,171	)		(195,031	)
Increase (decrease) in liability for employees’ retirement benefits		686			311
(Increase) decrease in accounts receivable		5,917			11,124
Increase (decrease) in accounts payable and accrued expenses		(11,998	)		(5,444	)
Increase (decrease) in accrued consumption tax		372			132
(Increase) decrease in other current assets		(42,395	)		(26,873	)
(Increase) decrease in subsidiary deposits		2,000			—
Increase (decrease) in deposit received from subsidiaries		(41,925	)		(9,068	)
Other		3,759			5,665

Sub-total		(62,792	)		(5,932	)

Interest and dividends received		202,892			206,701
Interest paid		(17,607	)		(16,137	)
Income taxes received (paid)		624			(9,012	)

Net cash provided by (used in) operating activities		123,117			175,619

Cash flows from investing activities:
Payments for property, plant and equipment		(16,633	)		(12,821	)
Payments for purchase of investment securities		(3,497	)		(25,624	)
Proceeds from sale of investment securities		1			—
Payments for long-term loans		(59,722	)		(100,000	)
Proceeds from long-term loans receivable		111,807			149,900
Other		(388	)		(3,030	)

Net cash provided by (used in) investing activities		31,567			8,424

Cash flows from financing activities:
Proceeds from issuance of long-term debt		59,641			99,950
Payments for settlement of long-term debt		(111,807	)		(149,900	)
Net increase (decrease) in short-term borrowings		—			150,000
Payments for settlement of lease obligations		(18	)		(21	)
Dividends paid		(85,663	)		(94,829	)
Proceeds from sale of (payments for acquisition of) treasury stock, net		(7,706	)		(223,308	)

Net cash provided by (used in) financing activities		(145,554	)		(218,109	)

Effect of exchange rate changes on cash and cash equivalents		—			80

Net increase (decrease) in cash and cash equivalents		9,130			(33,985	)

Cash and cash equivalents at beginning of period		155,702			123,856

Cash and cash equivalents at end of period		164,832			89,870


Notes:	1.	These quarterly financial statements are exempt from auditor’s review in the legal disclosure.
	2.	These quarterly financial statements are prepared based on “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

– 21 –

[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.

– 22 –

Attachment

Nippon Telegraph and Telephone Corporation

November 8, 2013

NTT’s Shares and Shareholders (as of September 30, 2013)

1.	Classification of Shareholders


Details	NTT’s Shares and Shareholders (1 unit = 100 shares)																Shares Representing Less Than One Unit
	Government and Public Bodies						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		3		265		64		6,848		1,066		936		842,627		851,809		—
Total Shares (Units)		4,312,318		1,928,536		88,468		166,070		2,842,556		5,709		3,871,297		13,214,954		1,701,835
%		32.63		14.59		0.67		1.26		21.51		0.04		29.29		100.00		—

Notes:

(1)

“Domestic Individuals, etc.” includes 1,813,924 units of treasury stock, and “Shares Representing Less Than One Unit” includes 61 shares of treasury stock. 181,392,461 shares of treasury stock are recorded in the shareholders’ register; the actual number of treasury stock shares at the end of September 30, 2013 was 181,392,161.

(2)	“Other Domestic Corporations” includes 157 units under the name of the Japan Securities Depository Center, and “Shares Representing Less Than One Unit” includes 72 shares under the name of the Japan Securities Depository Center.

(3)	The number of shareholders who only own shares representing less than one unit is 227,013.

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		374		157		835		1,000		24,273		55,591		769,579		851,809		—
%		0.04		0.02		0.10		0.12		2.85		6.53		90.35		100.00		—
Total Shares (Units)		10,979,421		104,419		167,024		64,666		373,210		337,801		1,188,413		13,214,954		1,701,835
%		83.08		0.79		1.26		0.49		2.82		2.56		8.99		100.00		—

Notes:

(1)	“At Least 1,000 Units” includes 1,813,924 units of treasury stock, and “Shares Representing Less Than One Unit” includes 61 shares of treasury stock.

(2)	“At Least 100 Units” includes 157 units under the name of the Japan Securities Depository Center, and “Shares Representing Less Than One Unit” includes 72 shares under 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		431,231		32.59
Japan Trustee Services Bank, Ltd. (Trust Account)		47,184		3.57
The Master Trust Bank of Japan, Ltd. (Trust Account)		35,301		2.67
Japan Trustee Services Bank, Ltd. (Trust Account 9)		18,934		1.43
Moxley and Co LLC		15,517		1.17
The Bank of New York, Treaty JASDEC Account		14,744		1.11
The Chase Manhattan Bank, N.A. London Secs Lending Omnibus Account		12,457		0.94
NTT Employee Share-Holding Association		10,317		0.78
State Street Bank and Trust Company 505224		8,477		0.64
State Street Bank and Trust Company 505225		7,942		0.60

Total		602,108		45.50

Note: The Company’s holdings of treasury stock (181,392,161 shares) are not included in the above table.

– 23 –

LOGO

NTT

Financial Results for the Six Months Ended September 30, 2013

November 8, 2013

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.

LOGO

FY2013/2Q Highlights

Consolidated Operating Income

(Billions of yen)

2Q FY

1,230.0

1,202.0 (forecast)

663.0 653.0

FY2012 FY2013

Global Revenues

(Billions of yen)

2Q FY

1,200.0

954.1 (forecast)

556.9 459.7

FY2012 FY2013

Operating Revenues and Operating Income remain mostly unchanged from the previous fiscal year.

Net Income increased 10% year-on-year. Expansion of global cloud services

Promoting M&A

Overseas sales: 97.2 billion yen increase year-on-year, representing over 10% of consolidated net sales.

Percentage of sales to overseas corporations: 36.8% (4.5% increase year-on-year)

Enhanced competitiveness of network services

Expansion of NTT’s user base

Expansion of Wi-Fi platforms iPhone Launch

Sales of 6.32 million smartphones and 16.40 million Xi subscribers (net increase of 4.83 million subscribers) 17.67 million FLET’S Hikari subscribers (net increase of 0.37 million subscribers).

Achieved 10 million subscribers for NTT East (as of October 12, 2013).

3.69 million Hikari TV and FLET’s TV subscribers, 4.46 million “dvideo” subscribers.

Cost reductions

Cost reductions related to fixed line and mobile access services: approx. 70% progress toward its medium-term target of 400 billion yen reduction (by the end of FY2014).

Increased shareholder returns

NTT has completed 250.0 billion yen of stock repurchases in October

LOGO

Consolidated Results and Forecasts (U.S. GAAP)

FY2013/2Q Highlights

Operating Revenues and Operating Income remain relatively unchanged from the previous fiscal year.

Net Income reached 323.5 billion yen (the highest in five years), a 10.3% increase year-on-year.

(Billions of yen)

FY2013/2Q

FY2012/2Q

Change year-on-year

[%]

Operating Revenues

5,266.1 +28.7 +0.5% 5,237.4

Operating Expenses

4,613.0 +38.6 +0.8% 4,574.4

Operating Income

653.0 (9.9) (1.5)% 663.0

Net Income 323.5 +30.1 +10.3% 293.4

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

LOGO

Consolidated Results and Forecasts (U.S. GAAP)

FY2013/2Q Contributing Factors by Segment

Regional communications business: Operating Income increased due to efforts to limit FLET’S Hikari subscription cancellations, the expansion of corporate networking services and cost controls.

Long distance and international communications business: Operating Revenues increased due to an increase in overseas sales. Operating Income was consistent with the level of the previous fiscal year, excluding temporary factors.

Mobile communications business: Operating Income reached the same level as the previous fiscal year due to promotion of “Two Top” strategy and cost reduction efforts.

Data communications business: Operating Income drastically decreased due to unprofitable business deals.

Operating

[year-on-year: +28.7] (Billions of yen)

Revenues

Long distance and Data international Mobile communications 0.6 communications communications business 40.3 business business Elimination of

59.9 49.5 8.3 6.5 Other intersegment/Others 5,266.1 5,237.4 business communications business

FY2012/2Q FY2013/2Q

Operating [year-on-year: +38.6]

Expenses

Regional Long distance and Mobile Data communications international communications communications 1.7 business communications business business 44.1 business Elimination of

4,574.4 85.2 4.2 31.5 Other intersegment/Others 4,613.0 54.2 business

FY2012/2Q FY2013/2Q

Operating [year-on-year: (9.9)]

Income

Regional Long distance and Mobile Data Other business Elimination of communications international communications communications intersegment/

FY2012/2Q communications FY2013/2Q business business business Others business

663.0 25.3 4.7 4.1 25.0 .8 2.3 653.0

LOGO

Consolidated Results and Forecasts (U.S. GAAP)

Consolidated Forecasts for FY2013

The Forecasts for both Consolidated Operating Revenues and Operating Income remain unchanged. NTT Group as a whole worked to increase profits, achieving 1,230.0 billion yen in Operating Income.

(Billions of yen)

FY2013

Forecasts % Progress Compared to Change FY2013/2Q from Initial FY2013 Forecasts

Forecasts

Operating Revenues 11,000.0 0.0 5,266.1 47.9% Operating Expenses 9,770.0 0.0 4,613.0 47.2% Operating Income 1,230.0 0.0 653.0 53.1% Net Income 1 585.0 0.0 323.5 55.3%

EPS 2 503.22

(yen)

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

2 EPS (Earnings per Share) for FY2012 (following the retroactive application of the equity method for NTT’s investment in Philippine Long Distance Telephone Company) was 430.68 yen.

LOGO

Shareholders Returns

Share Cancellation :NTT passed a resolution to cancel 186.5 million shares of its treasury stock Dividends :NTT increased its year-end dividend by 10 yen, resulting in an annual dividend of 170 en per share

Changes of the number of stocks

Repurchase Repurchase

Cancellation from from Repurchase from market Cancellation Cancellation

Japanese Japanese government government

251 (125) (Million shares)

Treasury 125 stock (125)

183

99 138

187 (187) 1,323 1,323 Other 1,266 1,266 1,224

1,185 1,137

1,137

Mar. 2010 Nov. 2010 Jul. 2011 Nov. 2011 Feb. 2012 Mar. 2013 Oct. 2013 Nov. 2013E

Transition of Dividend 160 170 (yen) Per Share 140 160

Pay-out ratio 120 120 33.8%

110

60 32.3% 31.2% 38.2% 37.2% 31.8%

27.5% 17.1% 23.0% 19.5%

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013E

LOGO

Progress of the Medium-Term Management Strategy, “Towards the Next Stage”

LOGO

Progress of the Medium-Term Management Strategy, “Towards the Next Stage”

Expansion of Global Cloud Services

Order volume as a result of cross-selling since October 2010: Total of USD 790 million

Large-scale cloud transactions originating in North America in the first half of 2013: USD 450 million

147 USD

62 112 Million Million USD

Million Million

USD USD USD

– Mar. – Sept. – Mar. – Sept. – March. – Sept. 2011 2011 2012 2012 2013 2013

2012 2016

< Sales > $12B $20B

Applications (Organic, M&A)

IT Infrastructure

Strengthen the total value proposition of NTT Group

M&A activities further strengthened core competencies

Acquisition of everis Group, a European system integration provider (by NTT DATA) ~Will strengthen NTT’s system integration operating base in Europe and Central and South America Acquisition of RagingWire, a U.S. data center provider (by NTT Com) ~Will strengthen NTT’s cloud data center services Acquisition of Virtela, a major U.S. network provider (by NTT Com) ~Will strengthen NTT’s cloud-type network services

LOGO

Progress of the Medium-Term Management Strategy, “Towards the Next Stage”

Strengthening Competitiveness of Network Services

Cost Reductions for Fixed / Mobile Access Services Billion

yen)

FY2012 FY2013/2Q FY2014 E

125.0

275.0

<approx. 30%>

400.0

% in < > shows % progress toward 400.0 billion yen

<approx. 70%>

500.0

(Note) Amounts are year-on-year figures as compared to FY2011

Achieved reduction of 275.0 billion yen* in FY2013/2Q, approximately 70% progress toward medium-term target (for FY2014)

Revised medium-term reduction target from “over 400.0 billion yen*” to “500.0 billion yen*”

*Compared to FY2011

LOGO

Progress of Broadband Services

LOGO

Progress of Broadband Services

Number of Subscribers for Fixed Broadband Services

The number of FLET’S Hikari subscribers increased 0.37 million to 17.67 million due to competitive prices and efforts to retain customers.

NTT Group aims to achieve its annual targets by, among other things, strengthening its efforts to meet the demands of small- to medium-sized businesses and through Wi-Fi use.

Number of subscribers

FLET’S ADSL

(Thousands) FLET’S Hikari 19,746

20,000 19,078 19,118 19,130 19,148 19,271 19,335

1,663 Hikari Denwa 1,446 2,206 2,098 1,968 1,848 1,751 18,300 17,521 17,672 17,020 17,162 17,300

15,000 16,872

15,664 16,419 15,169 15,412 14,557 14,852 14,252

10,000

5,000

2012.6 2012.9 2012.12 2013.3 2013.6 2013.9 2014.3E

Changes from the preceding quarter

(Thousands)

FY2012 FY2013

FY2012 FY2013E

4-6 7-9 10-12 1-3 4-6 7-9 4-9

FLET’S Hikari 1 307 148 143 138 220 152 372 736 1,000

Number of

opened 982 762 750 848 870 707 1,577 3,343 3,450

2 connections

FLET’S ADSL (115) (108) (131) (119) (98) (88) (186) (474) (402) Hikari Denwa 3 351 305 295 318 242 252 495 1,269 1,250

1 Number of FLET’S Hikari subscribers includes B FLET’S, FLET’S Hikari Next, FLET’S Hikari Light 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.

2 Number of opened connections excludes openings due to relocations.

3 Number of Hikari Denwa subscribers is calculated by number of thousand channels.

LOGO

Progress of Broadband Services

Number of Subscribers for Mobile Broadband Services

The number of Xi subscribers grew steadily, reaching 16.4 million.

Further expand user base through the provision of attractive handsets and the strengthening of network quality by adding the iPhone to NTT’s rich Android lineup.

Number of subscribers

(Thousands) Xi 70,000

63,390 60,988 61,536 61,623 61,772 FOMA

60,396 60,787 60,000 3,317

6,198 8,678

11,566 14,198

50,000 16,398 25,000 40,000

30,000

57,079 54,588

52,310 49,970

20,000 47,425 45,374

38,390

10,000

0 2012.6 2012.9 2012.12 2013.3 2013.6 2013.9 2014.3 E

Changes from the preceding quarter

(Thousands)

FY2012 FY2013

FY2012 FY2013E 4-6 7-9 10-12 1-3 4-6 7-9 4-9

FOMA+Xi 266 391 201 548 87 149 236 1,407 1,850

The number of communication module service subscribers is included in FOMA subscribers.

LOGO

Progress of Broadband Services

ARPU of Fixed Broadband Services (FLET’S Hikari)

Optional Service increased year-on-year due to an increase in, among other things, the number of Hikari Basic Monthly Charge decreased year-on-year as a result of increased service discounts.

NTT East Optional Service Basic Monthly Charge

(Yen)

5,890 5,880 5,860 5,800 5,860 5,700 6,000 5,750 5,680 1,670 1,690 1,760 1,740 1,720 1,790 1,760 1,760

4,000

2,000 4,220 4,190 4,100 4,060 3,990 3,920 4,140 3,910

0 FY2012 FY2013

FY2012 FY2013 E

4-6 7-9 10-12 1-3 4-6 7-9

NTT West

(Yen)

5,910 5,900 5,870 5,840 5,840 5,850 5,880 5,770

6,000

1,700 1,720 1,750 1,740 1,770 1,790 1,730 1,750

4,000

2,000 4,210 4,180 4,120 4,100 4,070 4,060 4,150 4,020

FY2012 FY2013

FY2012 FY2013 E 4-6 7-9 10-12 1-3 4-6 7-9

FLET’S Hikari includes B FLET’S, FLET’S Hikari Next, FLET’S Hikari Light 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. Commencing in the fiscal year ending March 31, 2014, NTT East and NTT West began including in their respective FLET’S Hikari ARPU calculations revenues from NTT East’s and NTT West’s “FLET’S VPN WIDE” virtual private network option. NTT East’s and NTT West’s FLET’S Hikari ARPU for the three months ended Jun. 30, 2012, Sept. 30, 2012, Dec. 31, 2012, Jun. 30, 2013 and Mar. 31, 2013 and for the fiscal year ended March 31, 2013 have been revised to include revenues from “FLET’S VPN Wide.” Please see page 26 regarding the calculation of ARPU.

LOGO

Progress of Broadband Services

ARPU of Mobile Broadband Services (FOMA, Xi)

Voice ARPU decreased year-on-year as a result of, among other things, the impact of increased monthly support discounts.

Packet ARPU remain unchanged from the previous year due to, among other things, the impact of monthly support discounts and increased smartphone use.

Smart ARPU increased year-on-year due to, among other things, the expansion of “dmarket” and other new services.

(Yen)

Smart ARPU 6,000 Packet ARPU

Voice ARPU

4,930 4,870 4,850 4,840 5,000 4,670 4,610 4,590

370 390 420 420 4,530 460 460 490 510

4,000

2,660 2,670 2,720 2,690

3,000 2,690

2,680 2,670 2,700

2,000

1,000 1,900 1,810 1,710 1,730

1,520 1,470 1,430 1,320

FY2012 FY2013

FY2012 FY2013 E 4-6 7-9 10-12 1-3 4-6 7-9

Communication module service subscribers and the revenues thereof are not included in the calculation of mobile broadband services ARPU.

Please see page 26 regarding the calculation of ARPU.

LOGO

Progress of Broadband Services

Number of Subscribers for Video Services

The number of Hikari TV and FLET’S TV subscribers increased to 3.69 million.

NTT Group continues to expand its customer base through its initiatives to shift towards multi-devices centered around smart TV and through the development of new business such as music and games.

(Thousands)

FLET’S TV Hikari TV

4,193

4,000

3,692 3,457 3,552 3,500 3,297

3,168 1,193 3,020 1,067 3,000 1,003 1,032 967 933

2,500 898 2,000

1,500

2,625 3,000 2,330 2,453 2,520 2,122 2,235

1,000

500

0 2012.6 2012.9 2012.12 2013.3 2013.6 2013.9 FY2013 E

“FLET’S TV” requires a subscription to “FLET’S TV Transmission Service,” provided by NTT East and NTT West, and a subscription to Opticast Inc.’s broadcast service, “Opticast Facility Use Services.”

LOGO

Financial Information

LOGO

Subsidiaries’ Results (JPN GAAP Non-Consolidated)

NTT East Financial Results

Operating Revenues decreased as a result of lower revenues from Voice Transmission Services. Operating Income increased due to, among other things, streamlined expenses.

The Forecasts for both Operating Revenues and Operating Income remain unchanged.

(Billions of yen)

FY2013/2Q FY2013E

48.7

Operating 29.2 (2.7%) Same as

Initial Forecast

Revenues (3.2)% Progress

49.4%

909.2 879.9 1,831.7 1,783.0

Voice Transmission Services (32.2) Voice Transmission Services (67.1)

IP Services +7.7 IP Services +7.1

Others (4.7) Others +11.3

FY2012/2Q FY2013/2Q FY2012 FY2013E

45.2 48.7

Operating Expenses (5.2)% Progress (2.8)% Same as

48.1% Initial Forecast

872.1 Personnel expenses (0.8) 826.9 1,766.7 Personnel expenses (0.9) 1,718.0

Expenses for purchase of goods Expenses for purchase of goods and

and services and other expenses (30.3) services and other expenses (33.8)

Depreciation expenses and loss Depreciation expenses and loss

on disposal of assets (14.0) on disposal of assets (13.9)

FY2012/2Q FY2013/2Q FY2012 FY2013E

Operating Progress Same as

Income 16.0 81.5% ±0 Initial Forecast

37.0 +43.2% 53.0 65.0 ±0% 65.0

LOGO

Subsidiaries’ Results (JPN GAAP Non-Consolidated)

NTT West Financial Results

Operating Revenues decreased as a result of lower revenues from Voice Transmission Services. Operating Income increased due to, among other things, streamlined expenses.

Forecasts for Operating Revenues have been revised downward by 6.0 billion yen due to, among other things, the impact of increased service discounts, while Forecasts for Operating Income remain unchanged due to cost controls.

(Billions of yen)

FY2013/2Q FY2013E

24.6 41.9

Operating (2.6)% Decrease of 6.0

Revenues (3.1)% Progress from Initial Forecast

49.4%

Voice Transmission Services (58.8)

807.5 782.8 1,627.9 IP Services +17.0 1,586.0

Voice Transmission Services (29.8)

IP Services +6.7 Others (0.2)

Others (1.6)

FY2012/2Q FY2013/2Q FY2012 FY2013E

34.0 42.7

Operating (4.3)% Progress (2.7)% Decrease of 6.0

Expenses 48.8% from Initial Forecast

Personnel expenses (4.4)

797.5 Personnel expenses (3.0) 763.4 1,608.7 1,566.0

Expenses for purchase of goods Expenses for purchase of goods and

and services and other expenses (20.8) services and other expenses (17.1)

Depreciation expenses and loss Depreciation expenses and loss

on disposal of assets (10.2) on disposal of assets (21.1)

FY2012/2Q FY2013/2Q FY2012 FY2013E

Operating Progress Same as

Income 9.3 96.7% 0.7 Initial Forecast

9.9 +94.4% 19.3 19.2 +4.1% 20.0

Financial Results for the Six Months Ended September 30, 2013

–15–

LOGO

Subsidiaries’ Results (JPN GAAP Non-Consolidated)

NTT Communications Financial Results

Although Operating Expenses decreased as a result of improvements in operational efficiency, Operating Income decreased due to the continued downward trend in Operating Revenues. The Forecasts for both Operating Revenues and Operating Income remain unchanged.

(Billions of yen)

FY2013/2Q FY2013E

19.8

Operating 10.5 (2.1)% Same as

Revenues (2.3)% Progress Initial Forecast

49.3%

466.5 455.9 944.8 Voice Transmission Services (24.9) 925.0

Voice Transmission Service (11.8) IP Services +0.1

IP Services (1.1) Others +4.9

Others +2.4

FY2012/2Q FY2013/2Q FY2012 FY2013E

8.5 13.6

Operating Progress (1.7)% Initial Same Forecast as

Expenses (2.1)% 48.7%

404.4 395.8 826.6 813.0

Personnel expenses (4.5) Personnel expenses (5.4)

Expenses for purchase of goods Expenses for purchase of goods and

and services and other expenses (4.4) services and other expenses (6.1)

Depreciation expenses and loss Depreciation expenses and loss

on disposal of assets +0.4 on disposal of assets (2.0)

FY2012/2Q FY2013/2Q FY2012 FY2013E

Operating Progress Same as

Income 2.0 53.6% 6.1 Initial Forecast

62.0 (3.2)% 60.0 118.1 (5.2)% 112.0

Financial Results for the Six Months Ended September 30, 2013

–16–

LOGO

Subsidiaries’ Results (JPN GAAP Consolidated)

NTT DATA Financial Results

Although overseas sales increased, Operating Income decreased due to, among other things, unprofitable business deals.

Although Forecasts for Operating Revenues remain unchanged, Forecasts for Operating Income were revised downward by 30.0 billion yen due to, among other things, unprofitable business deals.

(Billions of yen)

FY2013/2Q FY2013E

28.0 Same as

Operating 8.1 Progress +2.2% Initial Forecast

Revenues 46.1%

+1.4%

604.8 613.0 1,301.9 1,330.0

FY2012/2Q FY2013/2Q FY2012 FY2013E

53.7 Increase of 30.0

Operating 35.6 Progress +4.4% from Initial Forecast

Expenses 48.1%

+6.2%

574.6 610.3 1,216.2 1,270.0

FY2012/2Q FY2013/2Q FY2012 FY2013E

Operating Progress Decrease of 30.0

Income 27.5 4.4% 25.6 from Initial Forecast

30.1 (91.3)% 2.6 85.6 (30.0)% 60.0

Financial Results for the Six Months Ended September 30, 2013

–17–

LOGO

Subsidiaries’ Results (U.S. GAAP Consolidated)

NTT DOCOMO Financial Results

Operating Revenues decreased due to the impact of monthly support discounts. Operating Income increased as a result of improved cost efficiencies.

The Forecasts for both Operating Revenues and Operating Income remain unchanged.

(Billions of yen)

FY2013/2Q FY2013E

169.9 Same as

Operating 8.3 Progress +3.8% Initial Forecast

Revenues (0.4)% 47.4%

2,207.3 2,199.0 4,470.1 4,640.0

FY2012/2Q FY2013/2Q FY2012 FY2013E

167.1 Same as

Initial Forecast

Operating 10.4 Progress +4.6%

Expenses (0.6)% 45.4%

3,632.9 3,800.0

1,736.2 1,725.8

FY2012/2Q FY2013/2Q FY2012 FY2013E

Progress Same as

Operating 2.0 56.3% 2.8 Initial Forecast

Income 471.1 +0.4% 473.2 837.2 +0.3% 840.0

Financial Results for the Six Months Ended September 30, 2013

–18–

LOGO

Details of Difference Between Consolidated Operating Income and Total Operating Income of

5 Major Subsidiaries

FY2012/2Q (Billions of yen)

5.8

58.5

Pension (actuarial difference, etc.): (2.8)

610.3 NTT (Holding Company): 3.2 Depreciation of engineering facilities: (15.0) 663.0

Adjustments between operating and non-

NTT URBAN DEVELOPMENT (Consolidated):17.9 operating items, including eliminations, etc.

NTT COMWARE: 3.3

NTT FINANCE (Consolidated): 11.9

Outsourcing companies (East): 3.2

Outsourcing companies (West): 1.7

Other companies: 16.7

Total operating income Total operating income of subsidiaries other than Elimination and Consolidated operating

of 5 major subsidiaries the 5 major ones (excluding the effect of U.S. GAAP income

(JPN GAAP) dividends received by NTT (Holding Company)) adjustments (U.S. GAAP)

FY2013/2Q

5.6

39.2

Pension (actuarial difference, etc): 9.5

Depreciation of engineering facilities: (13.0)

608.2 NTT (Holding Company): 2.9 Adjustments between operating and non-operating 653.0

NTT URBAN DEVELOPMENT (Consolidated): 17.8 items, including eliminations, etc.

NTT COMWARE: (0.1)

NTT FINANCE (Consolidated): 9.0

Outsourcing companies (East): 3.6

Outsourcing companies (West): (4.4)

Other companies: 10.3

Total operating income Total operating income of subsidiaries other than Elimination and Consolidated operating

of 5 major subsidiaries the 5 major ones (excluding the effect of U.S. GAAP income

(JPN GAAP) dividends received by NTT (Holding Company)) adjustments (U.S. GAAP)

Financial Results for the Six Months Ended September 30, 2013

–19–

LOGO

Details of Consolidated Cash Flows

In addition to the effect of the last day of the same period of the previous fiscal year being a bank holiday, FCF increased by 525.3 billion yen year-on-year as a result of increased collection of handset installment sales receivables and a decrease in capital investment, among other things.

Cash flows from Cash flows from FCF Cash flows from

operating activities investing activities (A) + (B) financing activities

(A) (B)

(Billions of yen)

2,000

1,436.6 FY2012/2Q

FY2013/2Q

1,000 1,091.5 +525.3

+180.1 424.6

(185.9)

+345.1 (100.7) (113.0)

(298.9)

(1,000)

(1,192.2) (1,012.0)

(2,000)

Increase/Decrease from the same period of the previous fiscal year

Financial Results for the Six Months Ended September 30, 2013

–20 –

LOGO

Appendices

LOGO

Appendices

Capital Investment

(Billions of yen)

1,970.0

1,946.6

1,870.0

884.1

100.8

75.9 68.0 824.6 828.2

53.6

67.5 39.3 72.2

61.3 62.9

163.7

154.9 158.4

165.7

157.0 161.3

361.0

311.6 301.8

FY2011/2Q FY2012/2Q FY2013/2Q

FY2011 FY2012 FY2013E

Other

NTT DATA (Consolidated)

NTT Communications

NTT West

NTT East

NTT DOCOMO (Consolidated)

Financial Results for the Six Months Ended September 30, 2013

–21–

LOGO

Appendices

Shareholders Returns

(yen)

200 Dividends per share Pay-out ratio 140 160 170 50%

110 120 120 Pay

Dividends100 27.5% 32.3% 31.2% 38.2% 37.2%* 33.8% 25% out -

per 0 0%

Dividend share FY2008 FY2009 FY2010 FY2011 FY2012 FY2013E ratio

* Figures for FY2012 have been revised to reflect the retroactive application of the equity method of accounting for Philippine Long

Distance Telephone Company.

(Billions of yen)

400 381.7

Share 300 200.0 250.0

buy 200 150.0

100

backs FY2008 FY2009 FY2010 FY2011 FY2012 FY2013E

Financial Results for the Six Months Ended September 30, 2013

–22–

LOGO

FY2013/2Q Appendices Details of Financial Results (Per Item)

Operating Fixed IP/packet : +1.0 (Billions of yen)

Revenues [ year-on-year: +28.7] Mobile IP/packet: +11.6

Other : +0.4 IP/packet

communications Other revenues

Voice related SI revenues and sales services revenues

services revenues of telecommunications 13.0 83.6

196.6 equipment

128.8 Mobile Fixed IP/packet IP/packet

Fixed voice

5,237.4 Systems Integration 5,266.1

Mobile voice Telecommunications

equipment

Systems Integration : +88.9

Fixed voice : (72.4) Telecommunications equipment (Fixed-line): +1.0

Mobile voice : (124.2) Telecommunications equipment (Mobile) : +38.9

FY2012/2Q FY2013/2Q

Operating [year-on-year: +38.6]

Expenses 4.3

4.5 29.4 Other expenses

9.5 Personnel expenses

4,574.4 Depreciation Expenses for purchase 4,613.0

expenses and loss on of goods and services

disposal and other expenses

of assets

FY2012/2Q FY2013/2Q

Beginning with FY2013, NTT Group revised a portion of its breakdown of Operating Revenue components. As a result, each of the components of Operating Revenues for FY2012 have been adjusted to reflect this change.

–23–

Financial Results for the Six Months Ended September 30, 2013

LOGO

Appendices

Details of Consolidated Balance Sheet

March 31, 2013 September 30, 2013

(Billions of yen)

19,549.1 19,542.6

Liabilities 9,027. Assets Liabilities

Assets 1 19,542.6 8,875.7

19,549.1 Interest-Bearing [(6.4)] [(151.4)]

Debt

4,036.0 Interest-Bearing 4,139.4 Debt

[+103.4]

Liability for Employees’

Retirement Benefits Liability for Employees’

Depreciable Assets 1,505.6 Depreciable Assets Retirement Benefits

(property, plant and 1,540.2

(property, plant and equipment) [+34.6]

equipment)

8,191.3

8,302.7 [(111.5)]

Equity Equity

10,522.0 10,667.0

[+145.0]

Deferred Tax Deferred Tax Assets

Assets Treasury Stock (non-current) Treasury Stock

(non-current) (568.5) 750.1 (791.8)

752.8 [(2.7)] [(223.3)]

* Figures for March 31, 2013 have been revised to reflect the retroactive application of equity method accounting for PLDT.

Financial Results for the Six Months Ended September 30, 2013

–24–

LOGO

Appendices

Consolidated and Main Subsidiaries’ Financial Results for FY2013/2Q

(Billions of yen)

(1)

NTT NTT NTT East NTT West NTT Com NTT DATA NTT DOCOMO

Consolidated (Holding Company)

Non-Consolidated Non-Consolidated Non-Consolidated Non-Consolidated Consolidated Consolidated

(U.S. GAAP) (JPN GAAP) (JPN GAAP) (JPN GAAP) (JPN GAAP) (JPN GAAP) (U.S. GAAP)

Operating Revenues 5,266.1 264.5 879.9 782.8 455.9 613.0 2,199.0

Change year-on-year 28.7 0.4 (29.2) (24.6) (10.5) 8.1 (8.3)

(% change) 0.5% 0.2% (3.2)% (3.1)% (2.3)% 1.4% (0.4)%

Forecasts for FY2013 11,000.0 433.0 1,783.0 1,586.0 925.0 1,330.0 4,640.0

(% progress) 47.9% 61.1% 49.4% 49.4% 49.3% 46.1% 47.4%

Operating Expenses 4,613.0 66.6 826.9 763.4 395.8 610.3 1,725.8

Change year-on-year 38.6 (4.0) (45.2) (34.0) (8.5) 35.6 (10.4)

(% change) 0.8% (5.7)% (5.2)% (4.3)% (2.1)% 6.2% (0.6)%

Forecasts for FY2013 9,770.0 149.0 1,718.0 1,566.0 813.0 1,270.0 3,800.0

(% progress) 47.2% 44.7% 48.1% 48.8% 48.7% 48.1% 45.4%

Operating Income 653.0 197.9 53.0 19.3 60.0 2.6 473.2

Change year-on-year (9.9) 4.4 16.0 9.3 (2.0) (27.5) 2.0

(% change) (1.5)% 2.3% 43.2% 94.4% (3.2)% (91.3)% 0.4%

Forecasts for FY2013 1,230.0 284.0 65.0 20.0 112.0 60.0 840.0

(% progress) 53.1% 69.7% 81.5% 96.7% 53.6% 4.4% 56.3%

Income Before (2) 675.8 193.8 66.9 25.5 72.2 1.3 481.8

2 Income Taxes

Change year-on-year 33.0 2.4 18.1 10.9 1.2 (25.4) 16.2

(% change) 5.1% 1.3% 37.1% 75.0% 1.8% (95.0)% 3.5%

Forecasts for FY2013 1,280.0 278.0 83.0 28.0 122.0 49.0 842.0

(% progress) 52.8% 69.7% 80.6% 91.4% 59.2% 2.7% 57.2%

Net Income 323.5(3) 193.2 42.6 16.1 53.4 (3.7) 300.4(4)

Change year-on-year 30.1 2.3 11.0 3.5 8.9 (17.1) 14.5

(% change) 10.3% 1.2% 35.0% 28.4% 20.1%—5.1%

Forecasts for FY2013 585.0 280.0 50.0 19.0 84.0 23.0 510.0

(% progress) 55.3% 69.0% 85.2% 84.7% 63.6%—58.9% (1) (2) (3) (4)

The number of consolidated subsidiaries is 842 and the number of companies accounted for under the equity method is 105.

“Income Before Income Taxes” for NTT (Holding Company), NTT East, NTT West, NTT Communications and NTT DATA represent their recurring profits.

“Net Income” for NTT Consolidated represents “Net income attributable to NTT, excluding noncontrolling interests.”

“Net Income” for NTT DOCOMO represents “Net income attributable to NTT DOCOMO, excluding noncontrolling interests.”

Financial Results for the Six Months Ended September 30, 2013

–25–

LOGO

Appendices

Calculation of ARPU

Average items included monthly in the revenue operating per unit, revenues or ARPU, of NTT is used Group’s to measure regional average communications monthly operating business revenues segment, attributable that is, telephone to each subscriber designated lines, service “INS-NET” on a per and user “FLET’S basis. Hikari,” In the case by the of number NTT Group’s of Active fixed-line Subscribers business, to the ARPU relevant is calculated services. by dividing revenue In mobile the case phone of mobile services, communications that are incurred business, consistently ARPU each is calculated month (i.e. by , basic dividing monthly revenue charges items and included voice/packet in operating transmission revenues charges), from NTT by Group’s the number mobile of communications Active Subscribers business to the relevant segment, services. such as The revenues calculation from of FOMA these mobile figures phone excludes services revenues and Xi that are not representative of monthly average usage, such as telecommunications equipment sales, activation fees and universal service charges.

NTT comprising believes its that U.S. its GAAP ARPU results figures of calculated operations. 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 Notes (1) We compute the following four 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.

Telephone Subscriber Lines ARPU: Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and revenues from “FLET’S ADSL.” INS-NET Subscriber Lines ARPU: Calculated based on revenues from monthly charges and call charges for “INS-NET” Subscriber Lines and revenues from “FLET’S ISDN.”

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” 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.

Commencing option. These in revenues the fiscal are year part ending of NTT Mar. East’s 31, and 2014, NTT NTT West’s East operating and NTT West revenues began from including IP services. in their As respective a result of FLET’S this new Hikari calculation ARPU methodology, calculations revenues NTT East’s from and NTT NTT East’s West’s and FLET’S NTT West’s Hikari “FLET’S ARPU for VPN the WIDE” three months virtual private ended network Jun. 30, 2012, Sept. 30, 2012, Dec. 31, 2012 and Mar. 31, 2013 and for the fiscal year ended Mar. 31, 2013 include revenues from “FLET’S VPN WIDE” as stated below.

FY2012/1Q: NTT East 20yen, NTT West 10yen FY2012/2Q: NTT East 20yen, NTT West 20yen FY2012/3Q: NTT East 20yen, NTT West 20yen FY2012/4Q: NTT East 20yen, NTT West 20yen

(2)Revenues from FY2012 interconnection Results: charges NTT East are 20yen, excluded NTT from West the 20yen calculation of Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), Telephone Subscriber Lines ARPU, INS-NET Subscriber Lines ARPU, and FLET’S Hikari ARPU.

(3)For number purposes of subscriptions of calculating for Aggregate each service. Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), Telephone Subscriber Lines ARPU and INS-NET Subscriber Lines ARPU, the number of subscribers is determined based on the (4)In Subscriber terms of number Lines + of INS-NET channels, Subscriber transmission Lines) rate, and and INS-NET line use Subscriber rate (base Lines rate), ARPU, INS-Net one 1500 INS-Net is in all 1500 cases subscription roughly ten is calculated times greater as ten than INS-Net INS-Net 64 64. subscriptions For this reason, for the purpose of calculating Aggregate Fixed Line ARPU (Telephone (5)For Access” purposes provided of calculating by NTT East, FLET’S and Hikari subscribers ARPU, to number “B FLET’S,” of subscribers “FLET’S Hikari is determined Premium,” based “FLET’S on the Hikari number Mytown,” of “FLET’S “FLET’S Hikari” Hikari subscribers, Next,” “FLET’S including Hikari subscribers Light” and to “FLET’S “B FLET’S,” Hikari “FLET’S WiFi Access” Hikari provided Next,” “FLET’S by NTT Hikari West. Light” and “FLET’S Hikari WiFi (6)The following is the formula we use to compute ARPU for mobile business conducted by NTT DOCOMO.

Mobile Aggregate ARPU (“FOMA”+“Xi”) = Voice ARPU (“FOMA”+“Xi”) + Packet ARPU (“FOMA”+“Xi”) + Smart ARPU (“FOMA”+“Xi”).

NTT (“FOMA”+“Xi”) DOCOMO’s is based Voice ARPU on operating (“FOMA”+“Xi”) revenues is related based on to packet operating services, revenues such related as flat to monthly voice services, fees and such packet as communication basic monthly charges charges and attributable voice communication to our “FOMA” charges and “Xi” attributable services and to our our “FOMA” Smart ARPU and “Xi” (“FOMA”+“Xi”) services, and is based our Packet on operating ARPU revenues revenues, from etc.) .a part of Other Operating Revenues attributable to “FOMA” and “Xi” wireless communications services (content services related revenues, fee collection agency commissions, handset warranty service revenues, advertising (7)NTT were DOCOMO formerly included began using in Packet the Smart ARPU ARPU are now metric classified from the as three Smart months ARPU: ended 90 yen Sept. out of 30, Packet 2012. ARPU As a revenues result, Smart for the ARPU six months is now included ended Sept. in Mobile 30, 2012; Aggregate and 80 ARPU. yen out In of addition, Packet ARPU the following revenues amounts for the (content year ended services Mar. related 31, 2013. revenues) that (8)Communications module service, phone number storage service, mail address storage service and docomo Business Transceiver. subscribers and the revenues therefrom are not included in the calculations of Mobile Aggregate ARPU.

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

1Q Results: Sum of number of active subscribers** for each month from Apr. to Jun.

2Q Results: Sum of number of active subscribers** for each month from Jul. to Sept.

3Q Results: Sum of number of active subscribers** for each month from Oct. to Dec.

4Q Results: Sum of number of active subscribers** for each month from Jan. to Mar.

Six Months Results: Sum of number of active subscribers** for each month from Apr. to Sept. FY Results : Sum of number of active subscribers** for each month from Apr. to Mar.

FY (Forecast when previous annual results were announced): Average expected active number of subscribers ((Number of subscribers at end of previous Mar. + Number of expected subscribers at end of following Mar.)/2)x12

FY end (Revised of Sept. + forecast): number of Sum expected of the sum subscribers of actual at number end of of the active following subscribers Mar.)/2)x6 at the end of each month from Apr. to Sept. and the average expected active number of subscribers during the second half of the fiscal year ((number of subscribers at (10)Number of active subscribers used in the ARPU calculation of NTT DOCOMO are as below.

1Q Results: Sum of number of active subscribers** for each month from Apr. to Jun.

2Q Results: Sum of number of active subscribers** for each month from Jul. to Sept.

3Q Results: Sum of number of active subscribers** for each month from Oct. to Dec.

4Q Results: Sum of number of active subscribers** for each month from Jan. to Mar.

Six Months Results: Sum of number of active subscribers** for each month from Apr. to Sept. FY Results: Sum of number of active subscribers** for each month from Apr. to Mar.

FY (Forecast when previous annual results were announced) and FY (Revised forecast): Sum of expected number of active subscribers** for each month from Apr. to Mar.

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

Financial Results for the Six Months Ended September 30, 2013

–26–

November 8, 2013

FOR IMMEDIATE RELEASE

Financial Statements for the Six Months Ended September 30, 2013

The results of Nippon Telegraph and Telephone East Corporation (NTT East) for the six months ended September 30, 2013 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, 2014

For inquiries, please contact:

Mr. Yasuhiro Kawamori or Mr. Chikashi Sakurai

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, 2013			September 30, 2013			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		484,112			478,928			(5,183	)
Antenna facilities		4,643			4,505			(138	)
Terminal equipment		55,006			50,234			(4,772	)
Local line facilities		846,814			844,573			(2,241	)
Long-distance line facilities		4,608			4,381			(226	)
Engineering facilities		621,339			614,388			(6,951	)
Submarine line facilities		1,520			1,354			(165	)
Buildings		455,586			448,799			(6,786	)
Construction in progress		36,097			35,365			(731	)
Other		268,012			264,326			(3,686	)
Total property, plant and equipment		2,777,740			2,746,857			(30,882	)
Intangible fixed assets		92,108			89,423			(2,685	)
Total fixed assets - telecommunications businesses		2,869,848			2,836,280			(33,568	)
Investments and other assets
Other investments and assets		210,652			216,243			5,591
Allowance for doubtful accounts		(898	)		(811	)		87
Total investments and other assets		209,754			215,432			5,678
Total fixed assets		3,079,602			3,051,713			(27,889	)

Current assets:
Cash and bank deposits		59,223			16,269			(42,953	)
Notes receivable		7			16			9
Accounts receivable, trade		261,400			222,366			(39,033	)
Supplies		36,206			34,907			(1,298	)
Other current assets		215,233			232,213			16,979
Allowance for doubtful accounts		(1,826	)		(1,585	)		241
Total current assets		570,243			504,187			(66,056	)

TOTAL ASSETS		3,649,846			3,555,900			(93,945	)

-1-


	(Millions of yen)
	March 31, 2013		September 30, 2013		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		576,195		552,485		(23,710	)
Liability for employees’ retirement benefits		222,469		230,991		8,521
Reserve for point services		6,658		8,755		2,096
Reserve for unused telephone cards		12,647		11,844		(803	)
Allowance for environmental measures		—		4,523		4,523
Asset retirement obligations		602		1,296		694
Other long-term liabilities		11,856		9,812		(2,044	)
Total long-term liabilities		830,430		819,708		(10,722	)
Current liabilities:
Current portion of long-term borrowings from parent company		168,155		177,787		9,632
Accounts payable, trade		93,597		55,615		(37,981	)
Accrued taxes on income		7,681	*	8,046		364
Asset retirement obligations		—		19		19
Other current liabilities		401,697		336,852		(64,845	)
Total current liabilities		671,132		578,322		(92,810	)

TOTAL LIABILITIES		1,501,563		1,398,030		(103,532	)

NET ASSETS
Shareholders’ equity:
Common stock		335,000		335,000		—
Capital surplus		1,499,726		1,499,726		—
Earned surplus		313,284		322,399		9,114
Total shareholders’ equity		2,148,011		2,157,126		9,114
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		271		744		472
Total unrealized gains (losses), translation adjustments, and others		271		744		472

TOTAL NET ASSETS		2,148,283		2,157,870		9,587

TOTAL LIABILITIES AND NET ASSETS		3,649,846		3,555,900		(93,945	)

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, 2012		Six months ended September 30, 2013		Increase (Decrease)			Year ended March 31, 2013
Telecommunications businesses:
Operating revenues		846,125		818,629		(27,496	)		1,689,238
Operating expenses		815,503		772,282		(43,220	)		1,636,091
Operating income from telecommunications businesses		30,622		46,346		15,724			53,146

Supplementary businesses:
Operating revenues		63,118		61,335		(1,782	)		142,559
Operating expenses		56,686		54,627		(2,059	)		130,634
Operating income from supplementary businesses		6,431		6,708		276			11,924
Operating income		37,053		53,054		16,000			65,071

Non-operating revenues:
Interest income		22		30		8			62
Dividends received		2,462		3,643		1,180			2,494
Lease and rental income		21,822		22,297		474			43,166
Miscellaneous income		2,674		2,643		(30	)		14,467
Total non-operating revenues		26,981		28,614		1,632			60,190

Non-operating expenses:
Interest expenses		4,557		3,687		(870	)		8,792
Lease and rental expenses		9,738		10,481		743			24,063
Miscellaneous expenses		913		565		(347	)		3,512
Total non-operating expenses		15,209		14,734		(475	)		36,368
Recurring profit		48,826		66,935		18,108			88,893
Special losses		2,986		3,382		396			7,980
Income before income taxes		45,839		63,552		17,712			80,912
Income taxes	*	14,282	*	20,937		6,655			28,090
Net income		31,557		42,614		11,056			52,822

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, 2012		Six months ended September 30, 2013		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2013
Voice transmission services revenues (excluding IP services revenues)		297,560		265,303		(32,257	)		(10.8	)		579,196
Monthly charge revenues*		213,761		192,921		(20,840	)		(9.7	)		417,852
Call rates revenues*		24,678		21,748		(2,929	)		(11.9	)		47,939
Interconnection call revenues*		37,315		32,504		(4,811	)		(12.9	)		72,378
IP services revenues		413,027		420,802		7,774			1.9			835,886
Leased circuit services revenues (excluding IP services revenues)		62,607		59,548		(3,059	)		(4.9	)		122,777
Telegram services revenues		7,701		7,323		(377	)		(4.9	)		16,107
Other telecommunications services revenues		65,228		65,651		423			0.6			135,270

Telecommunications total revenues		846,125		818,629		(27,496	)		(3.2	)		1,689,238

Supplementary business total revenues		63,118		61,335		(1,782	)		(2.8	)		142,559

Total operating revenues		909,243		879,964		(29,278	)		(3.2	)		1,831,797

*	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, 2012			Six months ended September 30, 2013			Increase (Decrease)			Year ended March 31, 2013
Cash flows from operating activities:
Income before income taxes		45,839			63,552			17,712			80,912
Depreciation and amortization		195,621			185,210			(10,411	)		386,554
Loss on disposal of property, plant and equipment		10,872			6,616			(4,255	)		26,311
Increase (decrease) in liability for employees’ retirement benefits		(1,333	)		8,521			9,855			(4,994	)
(Increase) decrease in accounts receivable		(48,397	)		27,415			75,813			(48,176	)
(Increase) decrease in inventories		2,311			87			(2,224	)		9,312
Increase (decrease) in accounts payable and accrued expenses		(46,804	)		(68,999	)		(22,194	)		(618	)
Increase (decrease) in accrued consumption tax		5,743			(3,214	)		(8,957	)		7,491
Other		(27,547	)		(22,190	)		5,356			(12,351	)

Sub-total		136,304			196,999			60,694			444,442
Interest and dividends received		2,485			3,672			1,187			2,556
Interest paid		(4,588	)		(4,191	)		396			(8,889	)
Income taxes received (paid)		1,124			(18,122	)		(19,246	)		650

Net cash provided by (used in) operating activities		135,325			178,358			43,033			438,760
Cash flows from investing activities:
Payments for property, plant and equipment		(223,787	)		(195,182	)		28,604			(405,241	)
Proceeds from sale of property, plant and equipment		1,793			1,639			(154	)		10,856
Payments for purchase of investment securities		(120	)		(167	)		(47	)		(510	)
Proceeds from sale of investment securities		337			209			(128	)		506
Other		(1,077	)		(5,107	)		(4,030	)		(5,014	)

Net cash provided by (used in) investing activities		(222,854	)		(198,609	)		24,244			(399,403	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		39,815			100,000			60,185			126,635
Payments for settlement of long-term debt		(44,169	)		(114,077	)		(69,908	)		(148,339	)
Net increase (decrease) in short-term borrowings		(30,000	)		—			30,000			(30,000	)
Payments for settlement of lease obligations		(709	)		(302	)		407			(1,176	)
Dividends paid		(33,500	)		(33,500	)		—			(33,500	)

Net cash provided by (used in) financing activities		(68,564	)		(47,880	)		20,684			(86,381	)
Net increase (decrease) in cash and cash equivalents		(156,093	)		(68,131	)		87,962			(47,024	)
Cash and cash equivalents at beginning of period		185,925			138,901			(47,024	)		185,925

Cash and cash equivalents at end of period		29,832			70,770			40,937			138,901

-5-

5. Revised Forecasts for the Fiscal Year Ending March 31, 2014

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 10, 2013 for the fiscal year ending March 31, 2014, as follows.


	(Billions of yen)
	Year Ending March 31, 2014 (Forecasts Previously Announced on May 10, 2013)		Year Ending March 31, 2014 (Revised Forecasts)		Change
Operating Revenues		1,783.0		1,783.0		—
Operating Income		65.0		65.0		—
Recurring Profit		80.0		83.0		3.0
Net Income		50.0		50.0		—


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 8, 2013

FOR IMMEDIATE RELEASE

Financial Statements for the Six Months Ended September 30, 2013

The results of Nippon Telegraph and Telephone West Corporation (NTT West) for the six months ended September 30, 2013 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, 2014

For inquiries, please contact:

Takashi Sasaki or Yusuke Umeda

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, 2013			September 30, 2013			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		468,937			455,702			(13,235	)
Antenna facilities		6,816			6,609			(207	)
Terminal equipment		18,408			18,046			(361	)
Local line facilities		923,767			927,554			3,786
Long-distance line facilities		2,597			2,521			(75	)
Engineering facilities		562,018			554,374			(7,644	)
Submarine line facilities		2,096			3,393			1,297
Buildings		376,023			365,122			(10,901	)
Construction in progress		30,453			31,843			1,390
Other		226,593			224,845			(1,748	)
Total property, plant and equipment		2,617,712			2,590,013			(27,699	)
Intangible fixed assets		71,968			75,455			3,486
Total fixed assets - telecommunications businesses		2,689,681			2,665,469			(24,212	)
Investments and other assets
Other investments and assets		150,915			156,857			5,941
Allowance for doubtful accounts		(249	)		(206	)		42
Total investments and other assets		150,665			156,650			5,984
Total fixed assets		2,840,347			2,822,120			(18,227	)

Current assets:
Cash and bank deposits		29,799			20,354			(9,445	)
Notes receivable		8			158			150
Accounts receivable, trade		219,908			175,189			(44,719	)
Supplies		38,222			34,943			(3,278	)
Other current assets		176,844			156,231			(20,613	)
Allowance for doubtful accounts		(1,362	)		(544	)		817
Total current assets		463,421			386,332			(77,088	)

TOTAL ASSETS		3,303,768			3,208,452			(95,316	)

-1-


	(Millions of yen)
	March 31, 2013		September 30, 2013		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		951,797		868,087		(83,710	)
Liability for employees’ retirement benefits		221,270		228,956		7,686
Reserve for point services		4,882		5,125		242
Reserve for unused telephone cards		11,960		11,200		(760	)
Allowance for environmental measures		—		8,129		8,129
Asset retirement obligations		309		342		32
Other long-term liabilities		10,448		7,463		(2,985	)
Total long-term liabilities		1,200,669		1,129,305		(71,363	)
Current liabilities:
Current portion of long-term borrowings from parent company		182,057		231,738		49,681
Accounts payable, trade		72,315		46,882		(25,433	)
Accrued taxes on income		1,005	*	981		(23	)
Other current liabilities		336,852		300,568		(36,284	)
Total current liabilities		592,231		580,171		(12,059	)

TOTAL LIABILITIES		1,792,900		1,709,476		(83,423	)


NET ASSETS
Shareholders’ equity:
Common stock		312,000		312,000		—
Capital surplus		1,170,054		1,170,054		—
Earned surplus		28,645		16,667		(11,977	)
Total shareholders’ equity		1,510,699		1,498,721		(11,977	)
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		169		254		85
Total unrealized gains (losses), translation adjustments, and others		169		254		85

TOTAL NET ASSETS		1,510,868		1,498,975		(11,892	)

TOTAL LIABILITIES AND NET ASSETS		3,303,768		3,208,452		(95,316	)


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, 2012		Six months ended September 30, 2013		Increase (Decrease)			Year ended March 31, 2013
Telecommunications businesses:
Operating revenues		745,191		715,300		(29,890	)		1,482,982
Operating expenses		740,579		702,875		(37,703	)		1,474,459
Operating income from telecommunications businesses		4,611		12,424		7,812			8,523

Supplementary businesses:
Operating revenues		62,328		67,525		5,197			144,998
Operating expenses		56,994		60,615		3,621			134,317
Operating income from supplementary businesses		5,334		6,910		1,576			10,681
Operating income		9,945		19,334		9,389			19,205

Non-operating revenues:
Interest income		5		11		5			10
Dividends received		843		1,881		1,038			858
Lease and rental income		18,693		18,115		(577	)		37,029
Miscellaneous income		1,188		1,064		(124	)		4,887
Total non-operating revenues		20,730		21,073		342			42,785

Non-operating expenses:
Interest expenses		7,571		6,775		(795	)		14,942
Lease and rental expenses		8,134		7,918		(216	)		16,727
Miscellaneous expenses		343		123		(220	)		1,938
Total non-operating expenses		16,049		14,816		(1,232	)		33,607
Recurring profit		14,627		25,591		10,963			28,382
Special losses		—		6,087		6,087			—
Income before income taxes		14,627		19,503		4,876			28,382
Income taxes	*	2,084	*	3,401		1,317			7,443
Net income		12,543		16,102		3,559			20,939


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, 2012		Six months ended September 30, 2013		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2013
Voice transmission services revenues (excluding IP services revenues)		297,340		267,519		(29,821	)		(10.0	)		579,801
Monthly charge revenues*		212,491		193,424		(19,066	)		(9.0	)		416,088
Call rates revenues*		22,607		20,183		(2,423	)		(10.7	)		43,864
Interconnection call revenues*		41,481		36,320		(5,160	)		(12.4	)		80,143
IP services revenues		327,852		334,598		6,745			2.1			660,902
Leased circuit services revenues (excluding IP services revenues)		57,071		52,539		(4,532	)		(7.9	)		112,172
Telegram services revenues		8,845		8,323		(521	)		(5.9	)		18,484
Other telecommunications services revenues		54,081		52,319		(1,761	)		(3.3	)		111,621

Telecommunications total revenues		745,191		715,300		(29,890	)		(4.0	)		1,482,982

Supplementary business total revenues		62,328		67,525		5,197			8.3			144,998

Total operating revenues		807,519		782,826		(24,693	)		(3.1	)		1,627,981

*	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, 2012			Six months ended September 30, 2013			Increase (Decrease)			Year ended March 31, 2013
Cash flows from operating activities:
Income before income taxes		14,627			19,503			4,876			28,382
Depreciation and amortization		179,073			168,320			(10,753	)		354,981
Loss on disposal of property, plant and equipment		8,864			9,540			676			18,365
Increase (decrease) in liability for employees’ retirement benefits		(614	)		7,686			8,301			(3,424	)
(Increase) decrease in accounts receivable		(9,696	)		46,559			56,256			(10,489	)
(Increase) decrease in inventories		(2,589	)		3,588			6,177			(3,041	)
Increase (decrease) in accounts payable and accrued expenses		(39,110	)		(37,180	)		1,929			(17,279	)
Increase (decrease) in accrued consumption tax		1,040			(1,002	)		(2,043	)		1,384
Other		(22,209	)		(22,829	)		(620	)		653

Sub-total		129,385			194,185			64,800			369,533
Interest and dividends received		848			1,893			1,045			868
Interest paid		(7,354	)		(7,024	)		330			(15,241	)
Income taxes received (paid)		4,905			344			(4,560	)		4,902

Net cash provided by (used in) operating activities		127,783			189,398			61,614			360,061
Cash flows from investing activities:
Payments for property, plant and equipment		(186,202	)		(178,329	)		7,872			(353,694	)
Proceeds from sale of property, plant and equipment		441			303			(138	)		2,650
Payments for purchase of investment securities		(140	)		(167	)		(27	)		(411	)
Proceeds from sale of investment securities		131			6			(124	)		135
Other		(417	)		(5,684	)		(5,267	)		(3,888	)

Net cash provided by (used in) investing activities		(186,187	)		(183,872	)		2,315			(355,207	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		19,907			—			(19,907	)		172,907
Payments for settlement of long-term debt		(25,815	)		(34,028	)		(8,212	)		(133,151	)
Net increase (decrease) in short-term borrowings		15,000			—			(15,000	)		(30,000	)
Payments for settlement of lease obligations		(851	)		(929	)		(77	)		(1,846	)
Dividends paid		(31,200	)		(28,080	)		3,120			(31,200	)

Net cash provided by (used in) financing activities		(22,960	)		(63,038	)		(40,078	)		(23,290	)
Net increase (decrease) in cash and cash equivalents		(81,363	)		(57,511	)		23,851			(18,436	)
Cash and cash equivalents at beginning of period		104,148			85,711			(18,436	)		104,148

Cash and cash equivalents at end of period		22,784			28,199			5,415			85,711

-5-

5. Revised Forecasts for the Fiscal Year Ending March 31, 2014

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 10, 2013 for the fiscal year ending March 31, 2014, as follows.


	(Billions of yen)
	Year Ending March 31, 2014 (Forecasts Previously Announced on May 10, 2013)		Year Ending March 31, 2014 (Revised Forecasts)		Change
Operating Revenues		1,592.0		1,586.0		(6.0	)
Operating Income		20.0		20.0		—
Recurring Profit		28.0		28.0		—
Net Income		23.0		19.0		(4.0	)


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 8, 2013

FOR IMMEDIATE RELEASE

NTT Com Announces Financial Results for the Six Months Ended September 30, 2013

TOKYO, JAPAN – NTT Communications Corporation (NTT Com) announced today its financial results for the six months ended September 30, 2013. Please see the following attachments for further details:

I.	Non-Consolidated Comparative Balance Sheets

II.	Non-Consolidated Comparative Statements of Income

III.	Business Results (Non-Consolidated Operating Revenues)

IV.	Non-Consolidated Comparative Statements of Cash Flows

V.	Revised Forecasts for the Fiscal Year Ending March 31, 2014

VI.	Financial Results of NTT Communications Group

# # #

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 leading global tier-1 IP network, Arcstar Universal One^™ VPN network reaching 160 countries/regions, and over 150 secure data centers. 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.) Masaya Okazaki or (Mr.) Masato Uchiyama

Accounting and Taxation, Finance, NTT Communications

Tel: +81 3 6700 4311

Email: info-af@ntt.com

I. Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2013			September 30, 2013			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		145,637			139,891			(5,746	)
Antenna facilities		1,459			1,650			190
Terminal equipment		764			722			(42	)
Local line facilities		810			769			(41	)
Long-distance line facilities		7,122			6,672			(449	)
Engineering facilities		54,238			53,389			(848	)
Submarine line facilities		20,482			18,107			(2,374	)
Buildings		138,995			170,268			31,273
Construction in progress		8,303			13,162			4,859
Other		85,621			83,773			(1,848	)
Total property, plant and equipment		463,434			488,408			24,973
Intangible fixed assets		82,864			78,724			(4,139	)
Total fixed assets - telecommunications businesses		546,299			567,133			20,833
Investments and other assets
Investment securities		166,291			166,288			(3	)
Investments in subsidiaries and affiliated companies		167,637			164,157			(3,480	)
Other investments and assets		42,591			42,238			(353	)
Allowance for doubtful accounts		(232	)		(227	)		4
Total investments and other assets		376,287			372,456			(3,831	)
Total fixed assets		922,587			939,589			17,002

Current assets:
Cash and bank deposits		9,593			18,074			8,480
Notes receivable		25			168			142
Accounts receivable, trade		181,157			141,822			(39,334	)
Supplies		8,024			9,309			1,284
Other current assets		119,298			115,767			(3,530	)
Allowance for doubtful accounts		(2,148	)		(1,820	)		327
Total current assets		315,951			283,322			(32,629	)

TOTAL ASSETS		1,238,538			1,222,911			(15,627	)

-1-


	(Millions of yen)
	March 31, 2013		September 30, 2013		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		60,080		58,400		(1,680	)
Liability for employees’ retirement benefits		84,126		86,857		2,730
Reserve for point services		3,674		3,325		(348	)
Reserve for unused telephone cards		5,292		4,956		(336	)
Asset retirement obligations		600		1,436		835
Other long-term liabilities		17,609		16,076		(1,533	)
Total long-term liabilities		171,383		171,052		(331	)

Current liabilities:
Current portion of long-term borrowings from parent company		3,586		3,473		(113	)
Accounts payable, trade		25,136		24,894		(241	)
Short-term borrowings		730		5,627		4,897
Accounts payable, other		176,150		139,642		(36,507	)
Accrued taxes on income		15,134	*	11,155		(3,979	)
Allowance for losses on construction		21		6		(14	)
Allowance for loss on disaster		6		—		(6	)
Other current liabilities		34,788		35,694		905
Total current liabilities		255,554		220,494		(35,059	)

TOTAL LIABILITIES		426,938		391,547		(35,390	)


NET ASSETS
Shareholders’ equity:
Common stock		211,763		211,763		—
Capital surplus		131,615		131,615		—
Earned surplus		391,104		411,017		19,912
Total shareholders’ equity		734,483		754,396		19,912
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		77,116		76,967		(148	)
Total unrealized gains (losses), translation adjustments, and others		77,116		76,967		(148	)

TOTAL NET ASSETS		811,600		831,364		19,763

TOTAL LIABILITIES AND NET ASSETS		1,238,538		1,222,911		(15,627	)


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.

-2-

II. Non-Consolidated Comparative Statements of Income

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2012		Six months ended September 30, 2013		Increase (Decrease)			Year ended March 31, 2013
Telecommunications businesses:
Operating revenues		390,698		374,762		(15,935	)		775,217
Operating expenses		331,063		317,382		(13,680	)		664,162
Operating income from telecommunications businesses		59,634		57,379		(2,254	)		111,054

Supplementary businesses:
Operating revenues		75,812		81,180		5,367			169,594
Operating expenses		73,391		78,510		5,118			162,512
Operating income from supplementary businesses		2,421		2,670		249			7,082
Operating income		62,055		60,050		(2,005	)		118,137

Non-operating revenues:
Interest income		99		155		56			227
Dividends received		6,568		8,668		2,099			7,517
Lease and rental income		6,380		6,531		151			13,099
Miscellaneous income		645		1,803		1,157			3,868
Total non-operating revenues		13,693		17,158		3,464			24,712

Non-operating expenses:
Interest expenses		941		778		(163	)		1,690
Lease and rental expenses		3,348		2,809		(538	)		6,967
Miscellaneous expenses		514		1,411		897			4,463
Total non-operating expenses		4,804		4,999		195			13,121
Recurring profit		70,945		72,209		1,263			129,728

Special profits		—		16,169		16,169			24,021
Special losses		—		1,152		1,152			31,895
Income before income taxes		70,945		87,226		16,280			121,853
Income taxes	*	26,481	*	33,812		7,331			56,542
Net income		44,463		53,413		8,949			65,311


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. Business Results (Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2012		Six months ended September 30, 2013		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2013
Voice transmission services revenues (excluding IP services revenues)		150,215		138,332		(11,882	)		(7.9	)		293,931
IP services revenues		185,495		184,345		(1,149	)		(0.6	)		371,860
Open computer network services revenues*		77,949		77,040		(909	)		(1.2	)		155,892
VPN services revenues*		78,864		79,539		674			0.9			158,732
Data communications revenues (excluding IP services revenues)		34,790		31,605		(3,185	)		(9.2	)		67,670
Leased circuit services revenues*		26,011		23,249		(2,762	)		(10.6	)		50,328
Solution services revenues		82,745		88,943		6,197			7.5			183,960
Others		13,263		12,716		(547	)		(4.1	)		27,388

Total operating revenues		466,510		455,943		(10,567	)		(2.3	)		944,812


Note:		VPN services revenues mainly include revenues from services of Arcstar Universal One, Arcstar IP-VPN, Arcstar Global IP-VPN, e-VLAN, Global e-VLAN, Group-VPN and a part of GIGASTREAM. The amounts of “IP-Virtual private network services revenues” (including Arcstar IP-VPN services revenues), and “Wide-Area Ethernet services revenues” (including e-VLAN services revenues), partially listed in the previous fiscal year, for the six months ended September 30, 2013 are 32,305 million yen and 21,862 million yen, respectively.

*	Partial listing only

-4-

IV. Non-Consolidated Comparative Statements of Cash Flows

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Six months ended September 30, 2012			Six months ended September 30, 2013			Increase (Decrease)			Year ended March 31, 2013
Cash flows from operating activities:
Income before income taxes		70,945			87,226			16,280			121,853
Depreciation and amortization		51,958			52,520			561			104,986
Loss on disposal of property, plant and equipment		1,033			934			(99	)		8,189
Gains on sales of fixed assets		(18	)		(16,728	)		(16,709	)		(9,474	)
Increase (decrease) in allowance for doubtful accounts		(232	)		(332	)		(99	)		(133	)
Increase (decrease) in liability for employees’ retirement benefits		2,223			2,730			507			1,593
Write-off of investments in affiliated companies		—			—			—			31,895
(Increase) decrease in accounts receivable		4,113			43,734			39,620			(36,255	)
(Increase) decrease in inventories		(1,734	)		(2,936	)		(1,202	)		1,395
Increase (decrease) in accounts payable and accrued expenses		(29,203	)		(35,548	)		(6,344	)		(1,005	)
Increase (decrease) in accrued consumption tax		955			(1,345	)		(2,301	)		840
Other		(15,845	)		(16,603	)		(757	)		(6,310	)

Sub-total		84,195			113,650			29,455			217,575
Interest and dividends received		6,642			8,863			2,221			7,702
Interest paid		(938	)		(816	)		122			(1,682	)
Income taxes received (paid)		(41,868	)		(53,447	)		(11,578	)		(45,932	)

Net cash provided by (used in) operating activities		48,029			68,250			20,220			177,662
Cash flows from investing activities:
Payments for property, plant and equipment		(49,500	)		(46,767	)		2,733			(111,263	)
Proceeds from sale of property, plant and equipment		31			17,182			17,150			17,845
Payments for purchase of investment securities		(16,203	)		(9,440	)		6,763			(21,967	)
Proceeds from sale of investment securities		312			41			(271	)		4,726
Payments for long-term loans		—			—			—			(1,725	)
Net increase (decrease) in short-term loans		(539	)		6,994			7,534			(3,345	)
Other		188			2,724			2,536			(3,932	)

Net cash provided by (used in) investing activities		(65,711	)		(29,264	)		36,447			(119,661	)
Cash flows from financing activities:
Payments for settlement of long-term debt		(41,821	)		(1,793	)		40,028			(43,643	)
Net increase (decrease) in short-term borrowings		34,425			4,897			(29,528	)		730
Payments for settlement of lease obligations		(2,042	)		(2,467	)		(425	)		(4,249	)
Dividends paid		(30,500	)		(33,500	)		(3,000	)		(30,500	)

Net cash provided by (used in) financing activities		(39,937	)		(32,863	)		7,074			(77,663	)
Effect of exchange rate changes on cash and cash equivalents		521			863			342			1,327
Net increase (decrease) in cash and cash equivalents		(57,098	)		6,986			64,084			(18,334	)
Cash and cash equivalents at beginning of period		70,459			52,124			(18,334	)		70,459

Cash and cash equivalents at end of period		13,361			59,111			45,749			52,124

-5-

V. Revised Forecasts for the Fiscal Year Ending March 31, 2014

Special profits were recorded in the six-month period ended September 30, 2013. As a result, NTT Com has revised its financial results forecasts that were announced in the financial results release filed on May 10, 2013 for the fiscal year ending March 31, 2014, as follows.


	(Billions of yen)
	Year Ending March 31, 2014 (Forecasts Previously Announced on May 10, 2013)		Year Ending March 31, 2014 (Revised Forecasts)		Change
Operating Revenues		925.0		925.0		—
Operating Income		112.0		112.0		—
Recurring Profit		122.0		122.0		—
Net Income		75.0		84.0		+9.0


Note :		The financial results forecasts and projected figures concerning the future performance of NTT Communications contained herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT Communications and its parent NTT in light of information currently available to them regarding NTT, NTT Communications 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 Communications 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-

VI. Financial Results of NTT Communications Group


	(Millions of yen)
	Six months ended September 30, 2012		Six months ended September 30, 2013		Increase (Decrease)			Percent Increase (Decrease)
Operating revenues		587,535		589,526		1,991			0.3
Operating expenses		522,721		527,229		4,508			0.9
Operating income		64,814		62,297		(2,517	)		(3.9	)

-7-

November 8, 2013

Nippon Telegraph and Telephone Corporation

Supplementary Data for

the Six Months Ended September 30, 2013

Contents


	pages
1. Number of Subscribers		1

2. Number of Employees		2

3. Capital Investment		2

4. Financial Results and Projections		3~6

5. Average Monthly Revenue per Unit (ARPU)		7

6. Interest-Bearing Liabilities (Consolidated)		8

7. Indices (Consolidated)		8

8. Reconciliation of Financial Indices (Consolidated)		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.	Number of Subscribers


	(in thousands except for Public Telephones)
	A As of Mar. 31, 2013		B As of Jun. 30, 2013		C As of Sept. 30, 2013								D As of Mar. 31, 2014 (Revised Forecast)					[Ref.] As of Mar. 31, 2014 (Forecast when previous annual results were announced)
					E								F
							*Change*			*Progress*					*Change*
							*C-A*			*E/F*					*D-A*
Telephone Subscriber Lines⁽¹⁾		25,042		24,497		24,002		(1,041	)		46.9	%		22,823		(2,220	)		22,823
NTT East		12,289		12,008		11,762		(528	)		45.0	%		11,117		(1,172	)		11,117
NTT West		12,753		12,489		12,240		(513	)		49.0	%		11,706		(1,048	)		11,706
INS-Net⁽²⁾		3,724		3,632		3,539		(185	)		43.5	%		3,299		(425	)		3,299
NTT East		1,914		1,864		1,815		(99	)		43.6	%		1,686		(228	)		1,686
NTT West		1,810		1,768		1,724		(86	)		43.4	%		1,613		(197	)		1,613
Telephone Subscriber Lines + INS-Net		28,766		28,129		27,541		(1,226	)		46.3	%		26,121		(2,645	)		26,121
NTT East		14,203		13,872		13,576		(627	)		44.8	%		12,803		(1,400	)		12,803
NTT West		14,563		14,256		13,964		(599	)		48.1	%		13,318		(1,245	)		13,318
Public Telephones		210,448		207,184		203,120		(7,328	)		42.9	%		193,348		(17,100	)		193,348
NTT East		100,564		99,049		97,285		(3,279	)		45.5	%		93,364		(7,200	)		93,364
NTT West		109,884		108,135		105,835		(4,049	)		40.9	%		99,984		(9,900	)		99,984
FLET’S ISDN		127		122		118		(9	)		56.9	%		110		(17	)		110
NTT East		58		55		53		(5	)		48.9	%		48		(10	)		48
NTT West		69		67		65		(5	)		69.1	%		62		(7	)		62
FLET’S ADSL		1,848		1,751		1,663		(186	)		46.2	%		1,446		(402	)		1,446
NTT East		858		803		756		(101	)		40.5	%		608		(250	)		608
NTT West		990		948		906		(84	)		55.4	%		838		(152	)		838
FLET’S Hikari⁽³⁾		17,300		17,521		17,672		372			37.2	%		18,300		1,000			18,300
NTT East		9,750		9,902		9,985		235			47.0	%		10,250		500			10,250
NTT West		7,550		7,619		7,687		137			27.4	%		8,050		500			8,050
FLET’S Hikari LIGHT		661		715		763		102			29.1	%		1,011		350			1,011
NTT East		437		459		481		44			29.0	%		587		150			587
NTT West		224		257		283		58			29.2	%		424		200			424
Hikari Denwa		15,169		15,412		15,664		495			39.6	%		16,419		1,250			16,419
NTT East		8,085		8,233		8,372		287			41.0	%		8,785		700			8,785
NTT West		7,084		7,178		7,292		208			37.8	%		7,634		550			7,634
Conventional Leased Circuit Services		260		257		255		(5	)		39.2	%		247		(13	)		247
NTT East		128		127		125		(3	)		44.3	%		122		(6	)		122
NTT West		132		130		129		(2	)		34.5	%		125		(7	)		125
High Speed Digital Services		152		149		148		(3	)		43.0	%		144		(7	)		144
NTT East		80		78		78		(2	)		52.4	%		76		(4	)		76
NTT West		72		71		71		(1	)		31.5	%		69		(3	)		69
NTT Group Major ISPs⁽⁴⁾		11,611		11,531		11,511		(100	)		34.2	%		11,318		(293	)		11,318
OCN		8,207		8,165		8,165		(43	)		18.4	%		7,975		(232	)		7,975
Plala		3,071		3,031		3,011		(60	)		87.1	%		3,002		(69	)		3,002
Hikari TV		2,453		2,520		2,625		172			31.4	%		3,000		547			3,000
FLET’S TV Transmission Services		1,003		1,032		1,067		64			33.7	%		1,193		190			1,193
NTT East		714		731		750		36			35.7	%		814		100			814
NTT West		289		302		318		28			31.6	%		379		90			379
Mobile⁽⁵⁾		61,536		61,623		61,772		236			12.7	%		63,390		1,854			63,390
FOMA⁽⁶⁾		49,970		47,425		45,374		(4,596	)		39.7	%		38,390		(11,580	)		38,090
Xi		11,566		14,198		16,398		4,832			36.0	%		25,000		13,434			25,300
i-mode		32,688		30,689		29,228		(3,459	)		40.0	%		24,030		(8,658	)		24,030
sp-mode		18,285		19,921		21,079		2,794			31.5	%		27,160		8,875			27,160


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 (“INS-Net 64 Lite Plan” is included).

	(3)	Number of FLET’S Hikari subscribers includes subscribers to “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT East, and 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.

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

	(5)	Number of Mobile service subscribers includes communication module service subscribers, in addition to “FOMA” service and “Xi” service subscribers.

	(6)	Effective March 3, 2008, FOMA services became mandatory for subscription to “2in1” services. Such FOMA service subscriptions to “2in1” services are included in the number of Mobile service subscribers and also in the number of FOMA service subscribers.

-1-

2.	Number of Employees


	(Person)
	A As of Sept. 30, 2012		B As of Sept. 30, 2013					C As of Mar. 31, 2014 (Revised Forecast)		[Ref.] As of Mar. 31, 2014 (Forecast when previous annual results were announced)
					*Change*
					*B-A*
NTT Consolidated		235,600		231,300		(4,300	)		225,750		226,750
Core Group Companies
NTT (Holding Company)		2,950		2,900		(50	)		2,900		2,900
NTT East		6,250		6,100		(150	)		5,700		5,700
NTT West		5,250		5,150		(100	)		4,950		5,050
NTT Communications		7,950		6,950		(1,000	)		6,900		6,900
NTT DATA (Consolidated)		61,250		62,450		1,200			64,300		64,350
NTT DOCOMO (Consolidated)		24,550		24,600		50			24,250		24,150
(Reference) Outsourcing Companies
East Outsourcing Companies⁽¹⁾		33,450		30,650		(2,800	)		27,800		27,750
West Outsourcing Companies⁽²⁾		34,550		31,800		(2,750	)		28,650		28,400

3.	Capital Investment


	(Billions of yen)
	A Six Months Ended Sept. 30, 2012		B Six Months Ended Sept. 30, 2013								C Year Ending Mar. 31, 2014 (Revised Forecast)		[Ref.] Year Ending Mar. 31, 2014 (Forecast when previous annual results were announced)
					*Change*			*Progress*
					*B-A*			*B/C*
NTT Consolidated		884.1		824.6		(59.5	)		44.1	%		1,870.0		1,870.0
Core Group Companies
NTT (Holding Company)		13.9		9.5		(4.3	)		32.9	%		29.0		29.0
NTT East⁽¹⁾⁽²⁾		165.7		161.3		(4.4	)		46.1	%		350.0		350.0
NTT West⁽¹⁾⁽²⁾		163.7		158.4		(5.2	)		46.6	%		340.0		340.0
NTT Communications⁽¹⁾		39.3		62.9		23.5			44.9	%		140.0		110.0
NTT DATA (Consolidated)		53.6		72.2		18.5			48.8	%		148.0		148.0
NTT DOCOMO (Consolidated)		361.0		301.8		(59.2	)		43.1	%		700.0		700.0

-2-

4.	Financial Results and Projections (NTT Consolidated, NTT (Holding Company))


	(Billions of yen)
	A Six Months Ended Sept. 30, 2012		B Six Months Ended Sept. 30, 2013								C Year Ending Mar. 31, 2014 (Revised Forecast)		[Ref.] Year Ending Mar. 31, 2014 (Forecast when previous annual results were announced)
					*Change*			*Progress*
					*B-A*			*B/C*
NTT Consolidated (US GAAP)
Operating Revenues^(*)		5,237.4		5,266.1		28.7			47.9	%		11,000.0		11,000.0
Fixed Voice Related Services		866.9		794.5		(72.4	)		—			—		—
Mobile Voice Related Services		659.3		535.0		(124.2	)		—			—		—
IP/Packet Communications Services		1,850.9		1,863.8		13.0			—			—		—
Sales of Telecommunications Equipment		402.3		442.2		39.9			—			—		—
System Integration		940.3		1,029.1		88.9			—			—		—
Other		517.8		601.4		83.6			—			—		—
Operating Expenses^(*)		4,574.4		4,613.0		38.6			47.2	%		9,770.0		9,770.0
Cost of Services (exclusive of items shown separately below)		1,125.3		1,149.2		23.9			—			—		—
Cost of Equipment Sold (exclusive of items shown separately below)		418.4		370.7		(47.7	)		—			—		—
Cost of System Integration (exclusive of items shown separately below)		636.7		736.6		100.0			—			—		—
Depreciation and Amortization		930.1		919.1		(11.0	)		—			—		—
Impairment Loss		0.8		0.2		(0.6	)		—			—		—
Selling, General and Administrative Expenses		1,463.2		1,434.2		(29.0	)		—			—		—
Write-Down of Goodwill and Other Intangible Assets		—		3.0		3.0			—			—		—
Operating Income		663.0		653.0		(9.9	)		53.1	%		1,230.0		1,230.0
Income Before Income Taxes		642.8		675.8		33.0			52.8	%		1,280.0		1,280.0
Net Income Attributable to NTT		293.4		323.5		30.1			55.3	%		585.0		585.0
(Ref.) Details of “Cost of Services,” “Cost of Equipment Sold,” “Cost of System Integration” and “Selling, General and Administrative Expenses”
Personnel		1,047.2		1,076.6		29.4			—			—		—
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		2,418.4		2,427.9		9.5			—			—		—
Loss on Disposal of Property, Plant and Equipment		66.5		72.9		6.4			—			—		—
Other Expenses		111.4		113.4		2.0			—			—		—
Total		3,643.5		3,690.8		47.2			—			—		—
NTT (Holding Company) (JPN GAAP)
Operating Revenues		264.1		264.5		0.4			61.1	%		433.0		433.0
Operating Expenses		70.6		66.6		(4.0	)		44.7	%		149.0		149.0
Operating Income		193.4		197.9		4.4			69.7	%		284.0		284.0
Non-Operating Revenues		19.5		17.4		(2.1	)		51.3	%		34.0		35.0
Non-Operating Expenses		21.6		21.5		(0.0	)		53.9	%		40.0		39.0
Recurring Profit		191.3		193.8		2.4			69.7	%		278.0		280.0
Net Income		190.9		193.2		2.3			69.0	%		280.0		282.0


Note:		(*)		Effective as of three months ended Jun. 30, 2013, in conjunction with NTT Group’s current state of business and initiatives such as efforts to expand into new business areas in the mobile communications business, NTT has reclassified, among other things, part of its “Mobile Voice Related Services revenues” and “IP/Packet Communications Services revenues” as “Other revenues,” and part of its “Other revenues” as “System Integration revenues.” Results for the six months ended Sept. 30, 2012 reflect such reclassification.

-3-

4.	Financial Results and Projections (NTT East, NTT West)


	(Billions of yen)
	A Six Months Ended Sept. 30, 2012		B Six Months Ended Sept. 30, 2013								C Year Ending Mar. 31, 2014 (Revised Forecast)⁽³⁾		[Ref.] Year Ending Mar. 31, 2014 (Forecast when previous annual results were announced)
					*Change*			*Progress*
					*B-A*			*B/C*
NTT East (JPN GAAP)
Operating Revenues		909.2		879.9		(29.2	)		49.4	%		1,783.0		1,783.0
Voice Transmission Services (excluding IP)⁽¹⁾		297.5		265.3		(32.2	)		51.8	%		512.0		512.0
IP Services⁽²⁾		413.0		420.8		7.7			49.9	%		843.0		843.0
Leased Circuit (excluding IP)		62.6		59.5		(3.0	)		50.9	%		117.0		117.0
Telegraph		7.7		7.3		(0.3	)		48.8	%		15.0		15.0
Other		65.2		65.6		0.4			42.9	%		296.0		296.0
Supplementary Business		63.1		61.3		(1.7	)
Operating Expenses		872.1		826.9		(45.2	)		48.1	%		1,718.0		1,718.0
Personnel		54.6		53.7		(0.8	)		49.8	%		108.0		108.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		570.6		540.2		(30.3	)		47.9	%		1,129.0		1,135.0
Depreciation and Amortization		192.2		181.1		(11.0	)		49.5	%		366.0		361.0
Loss on Disposal of Property, Plant and Equipment		18.5		15.1		(3.4	)		35.2	%		43.0		42.0
Taxes and Public Dues		36.1		36.5		0.4			50.8	%		72.0		72.0
Operating Income		37.0		53.0		16.0			81.5	%		65.0		65.0
Non-Operating Revenues		26.9		28.6		1.6			59.6	%		48.0		45.0
Non-Operating Expenses		15.2		14.7		(0.4	)		49.1	%		30.0		30.0
Recurring Profit		48.8		66.9		18.1			80.6	%		83.0		80.0
Net Income		31.5		42.6		11.0			85.2	%		50.0		50.0
NTT West (JPN GAAP)
Operating Revenues		807.5		782.8		(24.6	)		49.4	%		1,586.0		1,592.0
Voice Transmission Services (excluding IP)⁽¹⁾		297.3		267.5		(29.8	)		51.3	%		521.0		521.0
IP Services⁽²⁾		327.8		334.5		6.7			49.4	%		678.0		684.0
Leased Circuit (excluding IP)		57.0		52.5		(4.5	)		49.6	%		106.0		106.0
Telegraph		8.8		8.3		(0.5	)		52.0	%		16.0		16.0
Other		54.0		52.3		(1.7	)		45.2	%		265.0		265.0
Supplementary Business		62.3		67.5		5.1
Operating Expenses		797.5		763.4		(34.0	)		48.8	%		1,566.0		1,572.0
Personnel		52.7		49.6		(3.0	)		49.2	%		101.0		101.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		515.3		494.5		(20.8	)		48.2	%		1,027.0		1,033.0
Depreciation and Amortization		176.1		165.4		(10.7	)		50.6	%		327.0		327.0
Loss on Disposal of Property, Plant and Equipment		19.8		20.5		0.7			45.7	%		45.0		45.0
Taxes and Public Dues		33.4		33.2		(0.2	)		50.4	%		66.0		66.0
Operating Income		9.9		19.3		9.3			96.7	%		20.0		20.0
Non-Operating Revenues		20.7		21.0		0.3			54.0	%		39.0		39.0
Non-Operating Expenses		16.0		14.8		(1.2	)		47.8	%		31.0		31.0
Recurring Profit		14.6		25.5		10.9			91.4	%		28.0		28.0
Net Income		12.5		16.1		3.5			84.7	%		19.0		23.0

-4-

4.	Financial Results and Projections (NTT Communications, Dimension Data)


	(Billions of yen)
	A Six Months Ended Sept. 30, 2012		B Six Months Ended Sept. 30, 2013								C Year Ending Mar. 31, 2014 (Revised Forecast)		[Ref.] Year Ending Mar. 31, 2014 (Forecast when previous annual results were announced)
					*Change*			*Progress*
					*B-A*			*B/C*
NTT Communications (JPN GAAP)
Operating Revenues		466.5		455.9		(10.5	)		49.3	%		925.0		925.0
Voice Transmission Services (excluding IP)⁽¹⁾		150.2		138.3		(11.8	)		51.4	%		269.0		269.0
IP Services⁽¹⁾		185.4		184.3		(1.1	)		49.6	%		372.0		372.0
Data Transmission Services (excluding IP)⁽¹⁾		34.7		31.6		(3.1	)		52.7	%		60.0		60.0
Leased Circuit⁽¹⁾		26.0		23.2		(2.7	)		51.7	%		45.0		45.0
Solutions Business		82.7		88.9		6.1			44.7	%		199.0		199.0
Other		13.2		12.7		(0.5	)		50.9	%		25.0		25.0
Operating Expenses		404.4		395.8		(8.5	)		48.7	%		813.0		813.0
Personnel		45.2		40.6		(4.5	)		49.6	%		82.0		82.0
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses		189.1		192.2		3.0			48.7	%		608.0		608.0
Communication Network Charges		111.4		103.9		(7.5	)
Depreciation and Amortization		50.7		51.5		0.7			49.1	%		105.0		105.0
Loss on Disposal of Property, Plant and Equipment		1.8		1.4		(0.3	)		24.4	%		6.0		6.0
Taxes and Public Dues		5.9		6.0		0.0			50.2	%		12.0		12.0
Operating Income		62.0		60.0		(2.0	)		53.6	%		112.0		112.0
Non-Operating Revenues		13.6		17.1		3.4			78.0	%		22.0		22.0
Non-Operating Expenses		4.8		4.9		0.1			41.7	%		12.0		12.0
Recurring Profit		70.9		72.2		1.2			59.2	%		122.0		122.0
Net Income		44.4		53.4		8.9			63.6	%		84.0		75.0
Dimension Data (IFRS)⁽²⁾⁽³⁾
Operating Revenues		228.5		275.2		46.7			48.2	%		571.0		571.0
Operating Expenses⁽⁴⁾		222.3		270.0		47.8			48.7	%		554.0		554.0
Operating Income⁽⁵⁾		6.2		5.1		(1.1	)		30.1	%		17.0		17.0
Net Income Attributable to NTT		3.7		2.6		(1.2	)		—			—		—


Notes:	(1)	Beginning with the three months ended Jun. 30, 2013, NTT consolidated IP-VPN and Wide-area Ethernet operating revenues into VPN operating revenues. Operating Revenues from Voice Transmission Services (excluding IP) of NTT Communications for the six months ended Sept. 30, 2013 include revenues from telephone subscriber lines (70.4 billion yen). Operating Revenues from IP Services include revenues from OCN (77.0 billion yen) and VPN (79.5 billion yen). Operating Revenues from Leased Circuit include conventional leased circuits (1.3 billion yen) and high-speed digital (9.1 billion yen). IP-VPN and Wide-area Ethernet operating revenues for the six months ended Sept. 30, 2013 were 32.3 billion yen and 21.8 billion yen, respectively.

	(2)	Since 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 Jun 30, 2012 are stated under “A. Six Months Ended Sept. 30, 2012,” Dimension Data’s financial results for the six months ended Jun 30, 2013 is stated under “B. Six Months Ended Sept. 30, 2013” and Dimension Data’s forecast for the twelve months ending December 31, 2013 are stated under “C. Year Ending Mar. 31, 2014 (Revised Forecast).”

	(3)	Conversion Rate for Dimension Data figures: USD1.00 = JPY95.73

	(4)	Operating Expenses include costs associated with the acquisition of Dimension Data by NTT.

	(5)	Operating Income for the six months ended Sept. 30, 2013 under US GAAP was (0.3) billion yen.

-5-

4.	Financial Results and Projections (NTT DATA, NTT DOCOMO)


	(Billions of yen)
	A Six Months Ended Sept. 30, 2012			B Six Months Ended Sept. 30, 2013									C Year Ending Mar. 31, 2014 (Revised Forecast)			[Ref.] Year Ending Mar. 31, 2014 (Forecast when previous annual results were announced)
							*Change*			*Progress*
							*B-A*			*B/C*
NTT DATA Consolidated (JPN GAAP)
Operating Revenues		604.8			613.0			8.1			46.1	%		1,330.0			1,330.0
Public & Financial IT Services		334.2			323.7			(10.5	)		44.8	%		723.0			730.0
Enterprise IT Services		141.7			127.0			(14.7	)		44.1	%		288.0			304.0
Solutions & Technologies		79.2			85.0			5.7			47.8	%		178.0			175.0
Global Business		115.3			148.2			32.8			51.1	%		290.0			270.0
Elimination or Corporate		(65.8	)		(70.9	)		(5.1	)		47.6	%		(149.0	)		(149.0	)
Cost of Sales		459.4			488.1			28.7			47.4	%		1,029.0			1,000.0
Gross Profit		145.3			124.8			(20.5	)		41.5	%		301.0			330.0
Selling, General and Administrative Expenses		115.2			122.1			6.9			50.7	%		241.0			240.0
Operating Income		30.1			2.6			(27.5	)		4.4	%		60.0			90.0
Non-Operating Income (Loss)		(3.3	)		(1.2	)		2.0			11.7	%		(11.0	)		(8.0	)
Recurring Profit		26.8			1.3			(25.4	)		2.7	%		49.0			82.0
Net Income		13.4			(3.7	)		(17.1	)		—			23.0			45.0
NTT DOCOMO Consolidated (US GAAP)
Operating Revenues⁽¹⁾		2,207.3			2,199.0			(8.3	)		47.4	%		4,640.0			4,640.0
Mobile Communications Services		1,606.3			1,491.7			(114.5	)		50.4	%		2,961.0			2,990.0
Voice Revenues		668.5			542.4			(126.1	)		52.6	%		1,032.0			1,034.0
Packet Communications Revenues		937.8			949.3			11.6			49.2	%		1,929.0			1,956.0
Equipment Sales		362.4			399.4			37.1			39.7	%		1,007.0			986.0
Other Operating Revenues		238.7			307.8			69.1			45.8	%		672.0			664.0
Operating Expenses		1,736.2			1,725.8			(10.4	)		45.4	%		3,800.0			3,800.0
Personnel		138.0			142.7			4.7			49.9	%		286.0			292.0
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses		1,123.5			1,085.1			(38.4	)		43.3	%		2,507.0			2,500.0
Depreciation and Amortization		324.2			339.1			14.9			47.6	%		713.0			725.0
Loss on Disposal of Property, Plant and Equipment		22.5			32.1			9.6			49.4	%		65.0			60.0
Communication Network Charges		108.5			107.2			(1.2	)		56.1	%		191.0			185.0
Taxes and Public Dues		19.5			19.6			0.1			51.5	%		38.0			38.0
Operating Income		471.1			473.2			2.0			56.3	%		840.0			840.0
Non-Operating Income (Loss)		(5.5	)		8.6			14.1			430.9	%		2.0			10.0
Income Before Income Taxes		465.6			481.8			16.2			57.2	%		842.0			850.0
Net Income Attributable to NTT DOCOMO		285.9			300.4			14.5			58.9	%		510.0			510.0


Note:			(1	)		Certain reclassifications have been made to “Operating Revenues” for the same period of the previous fiscal year to conform to the presentation used for the six months ended Sept. 30, 2013.

-6-

5.	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, telephone subscriber lines, INS-NET and FLET’S Hikari, by the number of Active Subscribers to the relevant services.

In the case of mobile communications business, ARPU is calculated by dividing revenue items included in operating revenues from NTT Group’s mobile communications business segment, such as revenues from FOMA mobile phone services and Xi mobile phone services, that are incurred consistently each month (i.e., basic monthly charges and voice/packet transmission charges), by the number of Active Subscribers 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 Jun. 30, 2013 (From Apr. to Jun., 2013)		Three Months Ended Sept. 30, 2013 (From Jul. to Sept., 2013)		Six Months Ended Sept. 30, 2012 (From Apr. to Sept., 2012)		Six Months Ended Sept. 30, 2013 (From Apr. to Sept., 2013)		Year Ended Mar. 31, 2013		Year Ending Mar. 31, 2014 (Revised forecast)		Year Ending Mar. 31, 2014 (Forecast when previous annual results were announced)
NTT East
Aggregate Fixed Line ARPU (Telephone Subscriber Line + INS-NET Subscriber Line)		2,760		2,760		2,810		2,760		2,810		2,750		2,750
Telephone Subscriber Lines ARPU		2,410		2,410		2,460		2,410		2,450		2,400		2,400
INS-NET Subscriber Lines ARPU		5,030		5,030		5,050		5,030		5,060		5,030		5,030
FLET’S Hikari ARPU		5,750		5,680		5,890		5,720		5,860		5,700		5,700
NTT West
Aggregate Fixed Line ARPU (Telephone Subscriber Line + INS-NET Subscriber Line)		2,690		2,700		2,730		2,700		2,720		2,690		2,690
Telephone Subscriber Lines ARPU		2,380		2,390		2,420		2,390		2,410		2,380		2,380
INS-NET Subscriber Lines ARPU		4,880		4,890		4,890		4,890		4,890		4,850		4,850
FLET’S Hikari ARPU		5,840		5,850		5,910		5,850		5,880		5,770		5,770
NTT DOCOMO
Mobile Aggregate ARPU (FOMA+Xi)		4,610		4,590		4,900		4,600		4,840		4,530		4,570
Voice ARPU (FOMA+Xi)		1,470		1,430		1,850		1,450		1,730		1,320		1,340
Packet ARPU (FOMA+Xi)		2,680		2,670		2,660		2,670		2,690		2,700		2,720
Smart ARPU (FOMA+Xi)		460		490		390		480		420		510		510


Notes :	(1)	We compute the following four 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.

		•		Telephone Subscriber Lines ARPU: Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and revenues from “FLET’S ADSL.”

		•		INS-NET Subscriber Lines ARPU: Calculated based on revenues from monthly charges and call charges for “INS-NET” Subscriber Lines and revenues from “FLET’S ISDN.”

		•		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” 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.

		—		Commencing in the fiscal year ending Mar. 31, 2014, NTT East and NTT West began including in their respective FLET’S Hikari ARPU calculations revenues from NTT East’s and NTT West’s “FLET’S VPN WIDE” virtual private network option. These revenues are part of NTT East’s and NTT West’s operating revenues from IP services. As a result of this new calculation methodology, NTT East’s and NTT West’s FLET’S Hikari ARPU for the three months ended Jun. 30, 2012, Sept. 30, 2012, Dec. 31, 2012 and Mar. 31, 2013 and for the fiscal year ended Mar. 31, 2013 include revenues from “FLET’S VPN WIDE” as stated below.

				• FY2012/1Q: NTT East 20yen, NTT West 10yen • FY2012/2Q: NTT East 20yen, NTT West 20yen • FY2012/3Q: NTT East 20yen, NTT West 20yen • FY2012/4Q: NTT East 20yen, NTT West 20yen • FY2012 Results: NTT East 20yen, NTT West 20yen

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

	(3)	For purposes of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), Telephone Subscriber Lines ARPU and INS-NET Subscriber Lines ARPU, the number of subscribers is determined based on the number of subscriptions for each service.

	(4)	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) and INS-NET Subscriber Lines ARPU, one INS-Net 1500 subscription is calculated as ten INS-Net 64 subscriptions.

	(5)	For purposes of calculating FLET’S Hikari ARPU, number of subscribers is determined based on the number of “FLET’S Hikari” subscribers, including subscribers to “B FLET’S,” “FLET’S Hikari Next,” “FLET’S Hikari Light” and “FLET’S Hikari WiFi Access” provided by NTT East, and 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.

	(6)	The following is the formula we use to compute ARPU for mobile business conducted by NTT DOCOMO.

		•		Mobile Aggregate ARPU (“FOMA”+“Xi”) = Voice ARPU (“FOMA”+“Xi”) + Packet ARPU (“FOMA”+“Xi”) + Smart ARPU (“FOMA”+“Xi”).

				— NTT DOCOMO’s Voice ARPU (“FOMA”+“Xi”) is based on operating revenues related to voice services, such as basic monthly charges and voice communication charges attributable to our “FOMA” and “Xi” services, and our Packet ARPU (“FOMA”+“Xi”) is based on operating revenues related to packet services, such as flat monthly fees and packet communication charges attributable to our “FOMA” and “Xi” services and our Smart ARPU (“FOMA”+“Xi”) is based on operating revenues from a part of Other Operating Revenues attributable to “FOMA” and “Xi” wireless communications services (content services related revenues, fee collection agency commissions, handset warranty service revenues, advertising revenues, etc.).

	(7)	NTT DOCOMO began using the Smart ARPU metric from the three months ended Sept. 30, 2012. As a result, Smart ARPU is now included in Mobile Aggregate ARPU. In addition, the following amounts (content services related revenues) that were formerly included in Packet ARPU are now classified as Smart ARPU: 90 yen out of Packet ARPU revenues for the six months ended Sept. 30, 2012; and 80 yen out of Packet ARPU revenues for the year ended Mar. 31, 2013.

	(8)	Communications module service, phone number storage service, mail address storage service and docomo Business Transceiver. subscribers and the revenues therefrom are not included in the calculations of Mobile Aggregate ARPU.

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

			—	1Q Results: Sum of number of active subscribers** for each month from Apr. to Jun.

			—	2Q Results: Sum of number of active subscribers** for each month from Jul. to Sept.

			—	3Q Results: Sum of number of active subscribers** for each month from Oct. to Dec.

			—	4Q Results: Sum of number of active subscribers** for each month from Jan. to Mar.

			—	Six Months Results: Sum of number of active subscribers** for each month from Apr. to Sept.

			—	FY Results : Sum of number of active subscribers** for each month from Apr. to Mar.

			—	FY (Forecast when previous annual results were announced): Average expected active number of subscribers ((Number of subscribers at end of previous Mar. + Number of expected subscribers at end of following Mar.)/2)x12

			—	FY (Revised forecast): Sum of the sum of actual number of active subscribers at the end of each month from Apr. to Sept. and the average expected active number of subscribers during the second half of the fiscal year ((number of subscribers at end of Sept. + number of expected subscribers at end of the following Mar.)/2)x6

	(10)	Number of active subscribers used in the ARPU calculation of NTT DOCOMO are as below.

			—	1Q Results: Sum of number of active subscribers** for each month from Apr. to Jun.

			—	2Q Results: Sum of number of active subscribers** for each month from Jul. to Sept.

			—	3Q Results: Sum of number of active subscribers** for each month from Oct. to Dec.

			—	4Q Results: Sum of number of active subscribers** for each month from Jan. to Mar.

			—	Six Months Results: Sum of number of active subscribers** for each month from Apr. to Sept.

			—	FY Results: Sum of number of active subscribers** for each month from Apr. to Mar.

			—	FY (Forecast when previous annual results were announced) and FY (Revised forecast): Sum of expected number of active subscribers** for each month from Apr. to Mar.

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

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6.	Interest-Bearing Liabilities (Consolidated)

(Billions of yen)

As of Mar. 31, 2013

As of Sept. 30, 2013

As of Mar. 31, 2014
(Revised Forecast)

[Ref.]
As of
Mar. 31, 2014
(Forecast when
previous annual
results were announced)

Interest-Bearing Liabilities

4,036.0

4,139.4

4,100.0

4,000.0

7. Indices (Consolidated)

Year Ended
Mar. 31, 2013

Six months Ended
Sept. 30, 2013

Year Ending
Mar. 31, 2014
(Revised Forecast)

[Ref.]
Year Ending
Mar. 31, 2014
(Forecast when
previous annual
results were announced)

EBITDA

3,207.4 billion yen

1,609.6 billion yen

3,215.0 billion yen

EBITDA Margin

30.0 %

30.6 %

29.2 %

Operating FCF

1,237.5 billion yen

785.0 billion yen

1,345.0 billion yen

ROCE

6.1 %

—

6.1 %

Note :

Reconciliation of Indices are as follows.

8. Reconciliation of Financial Indices (Consolidated)

Year Ended
Mar. 31, 2013

Six Months Ended
Sept. 30, 2013

Year Ending
Mar. 31, 2014
(Revised Forecast)

[Ref.]
Year Ending
Mar. 31, 2014
(Forecast when
previous annual
results were announced)

EBITDA (a+b)

3,207.4 billion yen

1,609.6 billion yen

3,215.0 billion yen

Operating Income

1,202.0 billion yen

653.0 billion yen

1,230.0 billion yen

Depreciation and Amortization, and Loss on Disposal of Property, Plant and Equipment

2,005.5 billion yen

956.6 billion yen

1,985.0 billion yen

EBITDA Margin [(c/d)X100]

30.0 %

30.6 %

29.2 %

Operating Income

1,202.0 billion yen

653.0 billion yen

1,230.0 billion yen

Depreciation and Amortization, and Loss on Disposal of Property, Plant and Equipment

2,005.5 billion yen

956.6 billion yen

1,985.0 billion yen

EBITDA (a+b)

3,207.4 billion yen

1,609.6 billion yen

3,215.0 billion yen

Operating Revenues

10,700.7 billion yen

5,266.1 billion yen

11,000.0 billion yen

Operating FCF [(c-d)]

1,237.5 billion yen

785.0 billion yen

1,345.0 billion yen

Operating Income

1,202.0 billion yen

653.0 billion yen

1,230.0 billion yen

Depreciation and Amortization, and Loss on Disposal of Property, Plant and Equipment

2,005.5 billion yen

956.6 billion yen

1,985.0 billion yen

EBITDA (a+b)

3,207.4 billion yen

1,609.6 billion yen

3,215.0 billion yen

Capital Investment

1,970.0 billion yen

824.6 billion yen

1,870.0 billion yen

ROCE [(b/c)X100]

6.1 %

—

6.1 %

Operating Income

1,202.0 billion yen

—

1,230.0 billion yen

(Normal Statutory Tax Rate)

38 %

—

38 %

Operating Income X
(1 - Normal Statutory Tax Rate)

742.1 billion yen

—

759.4 billion yen

Operating Capital Employed

12,255.8 billion yen

—

12,460.6 billion yen

12,410.6 billion yen

Note :

Figures for capital investment are the accrual-based amounts required for acquisition of Property, Plant and Equipment and Intangible Assets. The differences from the figures for “Payments for Property, Plant and Equipment” and “Payments for Acquisition of Intangible Assets” in the consolidated statements of cash flows are as described in the reconciliation below.



	(Billions of yen)
	Year Ended Mar. 31, 2013		Six Months Ended Sept. 30, 2013
Payments for Property, Plant and Equipment		1,538.1		750.3
Payments for Acquisition of Intangible Assets		446.6		193.3
Total		1,984.7		943.6
Difference from Capital Investment		14.7		119.0

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