Form 6-K

“Domestic Individuals, etc.” includes 662,562 units of treasury stock, and “Shares Representing Less Than One Unit” includes 2 shares of treasury stock. 66,256,202 shares of treasury stock are recorded in the shareholders’ register; the actual number of treasury stock shares at the end of December 31, 2014 was 66,255,902.

“Other Domestic Corporations” includes 147 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.

The number of shareholders who only own shares representing less than one unit is 186,334.

6-K 1 d858081d6k.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 February, 2015

Commission File Number 1-8910

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

(Translation of registrant’s name into English)

OTEMACHI FIRST SQUARE, EAST TOWER

5-1, OTEMACHI 1-CHOME

CHIYODA-KU, TOKYO 100-8116 JAPAN

(Address of principal executive office)

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

Form 20-F x Form 40-F ¨

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

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

ANNOUNCEMENT OF FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2014

On February 6, 2015, 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 nine months ended December 31, 2014. Attached hereto is a copy of the press release and supplementary data relating thereto, both dated February 6, 2015, 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, 2015. 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 nine months ended December 31, 2014 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/ Yasutake Horinouchi
	Name:	Yasutake Horinouchi
	Title:	Vice President
		Investor Relations Office

Date: February 6, 2015


Financial Results Release	February 6, 2015
For the Nine Months Ended December 31, 2014	[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 : Yasutake Horinouchi, Head of IR, Finance and Accounting Department / TEL +81-3-6838-5481

Scheduled filing date of quarterly securities report : February 9, 2015

Scheduled date of dividend payments : -

Supplemental material on quarterly results : Yes

Presentation on quarterly results : Yes (for institutional investors and analysts)

1.	Consolidated Financial Results for the Nine Months Ended December 31, 2014 (April 1, 2014 – December 31, 2014)

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
Nine months ended December 31, 2014		8,182,527	2.0	%		910,947	(7.5	)%		910,182	(11.1	)%		449,941	(7.1	)%
Nine months ended December 31, 2013		8,025,184	1.3	%		985,120	(0.8	)%		1,024,103	3.9	%		484,304	8.4	%

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


	Basic Earnings per Share Attributable to NTT			Diluted Earnings per Share Attributable to NTT
Nine months ended December 31, 2014		407.69	(yen)		—	(yen)
Nine months ended December 31, 2013		418.78	(yen)		—	(yen)


Notes:	Comprehensive income (loss) attributable to NTT:	For the nine months ended December 31, 2014: 507,664 million yen (23.7)%
		For the nine months ended December 31, 2013: 665,709 million yen 35.9%

(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
December 31, 2014		20,642,277		10,999,979		8,578,734		41.6	%		8,014.20	(yen)
March 31, 2014		20,284,949		10,924,806		8,511,354		42.0	%		7,667.57	(yen)

2.	Dividends


	Annual Dividends
	End of the first quarter		End of the second quarter			End of the third quarter		Year-end			Total
Year Ended March 31, 2014		—		80.00	(yen)		—		90.00	(yen)		170.00	(yen)
Year Ending March 31, 2015		—		90.00	(yen)		—		—			—
Year Ending March 31, 2015 (Forecasts)		—		—			—		90.00	(yen)		180.00	(yen)

Note: Change in dividend forecasts during the nine months ended December 31, 2014: None

3.	Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2015 (April 1, 2014 – March 31, 2015)


	(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, 2015		11,010,000	0.8	%		1,095,000	(9.8	)%		1,075,000	(16.9	)%		529,000	(9.6	)%		479.00	(yen)


Notes:	1.	Percentages above represent changes from the previous fiscal year.
	2.	Change in consolidated financial results forecasts for the fiscal year ending March 31, 2015 during the nine months ended December 31, 2014: None

- 1 -

*Notes:

(1)

Change in significant consolidated subsidiaries during the nine months ended December 31, 2014 that resulted in changes in the scope of consolidation: None

(2)

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

(3)

Change of accounting policy

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

ii.

Other change: None

(For further details, please see “Others” on page 9.)

(4)

Number of shares outstanding (common stock)


i. Number of shares outstanding (including treasury stock):

	December 31, 2014 : 1,136,697,235 shares

	March 31, 2014 : 1,136,697,235 shares

ii. Number of shares of treasury stock:

	December 31, 2014 : 66,255,902 shares

	March 31, 2014 : 26,650,807 shares

iii. Weighted average number of shares outstanding:

	For the nine months ended December 31, 2014 :	1,103,621,904 shares

	For the nine months ended December 31, 2013 :	1,156,476,181 shares

The forecast for “Basic Earnings per Share Attributable to NTT” for the fiscal year ending March 31, 2015 is based on the assumption that NTT will repurchase 51 million shares or 350 billion yen of shares from November 10, 2014 through June 30, 2015, as resolved at the board of directors’ meeting held on November 7, 2014 authorizing repurchases up to these amounts, and retain these as treasury stock.

Presentation on the status of quarterly review process:

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

Explanation of earnings forecasts and other notes:

Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently available to NTT and certain assumptions that we regard as reasonable and therefore actual results may differ materially from those contained in or suggested by any forward-looking statements. With regard to the assumptions and other related matters concerning forecasts for the fiscal year ending March 31, 2015, please refer to pages 8 and 24.

On Friday, February 6, 2015, 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

Nine-Month Period Ended December 31, 2014 (April 1, 2014 – December 31, 2014)


	(Billions of yen)
	Nine Months Ended December 31, 2013		Nine Months Ended December 31, 2014		Change			Percent Change
Operating revenues		8,025.2		8,182.5		157.3			2.0	%
Operating expenses		7,040.1		7,271.6		231.5			3.3	%
Operating income		985.1		910.9		(74.2	)		(7.5	)%
Income before income taxes and equity in earnings (losses) of affiliated companies		1,024.1		910.2		(113.9	)		(11.1	)%
Net income attributable to NTT		484.3		449.9		(34.4	)		(7.1	)%

During the nine months ended December 31, 2014, 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 “Value Partner” that customers continue to select.

Expansion of Global Cloud Services:

NTT Group worked to expand its provision of global cloud services by taking advantage of its strengths as a corporate group to provide comprehensive cloud services from the information and telecommunications platforms stage, such as data centers and the IP backbone, to the information and communication technology (ICT) management and applications stage.

Specifically, in order to further promote its cloud business in the United States, NTT Group acquired 100% of the outstanding shares of U.S.-based Symphony Management Consulting, LLC, which has strengths in the cloud solutions business.

Furthermore, NTT Group commenced operations at its “Shanghai Pudong Data Center,” which will not only serve as a major center for colocation services in China, but also as a primary base for cloud services.

Strengthening Network Service Competitiveness:

In the fixed-line communications field, NTT Group continued to work to increase the number of new subscribers and improve long-term customer retention for its “FLET’S Hikari” services. In addition, NTT Group continued to move ahead with its “Hikari Collaboration Model,” the wholesaling of fiber-optic access services, and announced in January 2015 that it will begin providing services in February 2015.

In the mobile communications field, “Kake-hodai & Pake-aeru,” a new billing plan tailored to suit a customer’s stage of life that offer more affordable rates to long-term users, exceeded 13 million subscriptions. Further, NTT Group launched the sale of smartphones and other devices equipped with call functionality for VoLTE*¹ call services, and also announced the development of a data communications handset compatible with “LTE-Advanced,” a mobile communication standard capable of high-speed transmissions of up to 225 Mbps. NTT Group also commenced sales of the “iPad Air 2”*² and “iPad mini 3.”*² In addition, NTT Group announced in January 2015 that it would begin accepting pre-orders in February 2015 for both its “Docomo Hikari” broadband service, which utilizes the “Hikari Collaboration Model,” and “Docomo Hikari Pack,” which provides “Docomo Hikari” in combination with mobile phone service at a reasonable price, and will commence these services in March 2015.

To cut costs in fixed-line and mobile communications services, NTT Group worked to further enhance infrastructure efficiency by introducing high-performance equipment and by making effective use of existing facilities, while cutting the cost of laying optical transmission lines by increasing construction projects that do not require the dispatch of NTT employees and working to further improve the efficiency of its maintenance and operations business.

- 3 -

NTT also entered into a partnership agreement with the Tokyo Organizing Committee of the Olympic and Paralympic Games in January 2015 relating to athletes representing Japan in the Olympics and Paralympics. The agreement has a six-year term, including the Tokyo 2020 Olympics and Paralympics. With this agreement, NTT became the first “Gold Partner,” the highest tier of the domestic corporate sponsorship program.

As a result of these efforts, NTT Group’s consolidated operating revenues for the nine months ended December 31, 2014 were ¥8,182.5 billion (an increase of 2.0% from the same period of the previous fiscal year) and consolidated operating expenses were ¥7,271.6 billion (an increase of 3.3% from the same period of the previous fiscal year). Consolidated operating income was ¥910.9 billion (a decrease of 7.5% from the same period of the previous fiscal year), consolidated income before income taxes and equity in earnings (losses) of affiliated companies was ¥910.2 billion (a decrease of 11.1% from the same period of the previous fiscal year), and net income attributable to NTT was ¥449.9 billion (a decrease of 7.1% 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)				Abbreviation for Voice over LTE, a call service that provides reliable and high-sound quality calls over NTT’s “Xi” service (LTE service) network.
(*2)				TM and ^© 2015 Apple Inc. All rights reserved. iPad is a trademark of Apple Inc., registered in the United States and other countries.

- 4 -

ii.	Segment results

Results by business segment are as follows.

•

Regional Communications Business Segment

Nine-Month Period Ended December 31, 2014 (April 1, 2014 – December 31, 2014)


	(Billions of yen)
	Nine Months Ended December 31, 2013		Nine Months Ended December 31, 2014		Change			Percent Change
Operating revenues		2,626.4		2,579.2		(47.2	)		(1.8	)%
Operating expenses		2,525.9		2,447.7		(78.2	)		(3.1	)%
Operating income		100.5		131.5		31.0			30.9	%

Operating revenues in the regional communications business segment for the nine-month period ended December 31, 2014 decreased 1.8% from the same period of the previous fiscal year to ¥2,579.2 billion due to, among other things, a decrease in fixed voice-related revenues resulting from the decline in fixed-line telephone subscriptions, which was partially offset by an increase in IP/packet communications revenues. On the other hand, operating expenses fell by 3.1% from the same period of the previous fiscal year to ¥2,447.7 billion due to, among other factors, a decrease in personnel expenses and efforts to streamline operating expenses. As a result, segment operating income increased 30.9% from the same period of the previous fiscal year to ¥131.5 billion.

Number of subscriptions


	(Thousands of subscriptions)
	As of March 31, 2014		As of December 31, 2014		Change		Percent Change
FLET’S Hikari⁽¹⁾		18,050		18,617		567		3.1	%
NTT East		10,187		10,397		210		2.1	%
NTT West		7,863		8,220		357		4.5	%
Hikari Denwa⁽²⁾		16,256		16,910		654		4.0	%
NTT East		8,694		8,963		269		3.1	%
NTT West		7,562		7,947		385		5.1	%

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 the number of channels (in thousands).

- 5 -

•

Long Distance and International Communications Business Segment

Nine-Month Period Ended December 31, 2014 (April 1, 2014 – December 31, 2014)


	(Billions of yen)
	Nine Months Ended December 31, 2013		Nine Months Ended December 31, 2014		Change			Percent Change
Operating revenues		1,312.7		1,447.3		134.7			10.3	%
Operating expenses		1,212.3		1,359.4		147.1			12.1	%
Operating income		100.4		88.0		(12.5	)		(12.4	)%

Operating revenues in the long-distance and international communications business segment for the nine-month period ended December 31, 2014 increased 10.3% from the same period of the previous fiscal year to ¥1,447.3 billion. This increase was due to, among other things, an increase in system integration revenues associated with an increase in the number of overseas consolidated subsidiaries, partially offset by a decrease in domestic fixed voice-related revenues. Operating expenses increased 12.1% from the same period of the previous fiscal year to ¥1,359.4 billion due to, among other things, an increase in revenue-linked expenses. As a result, segment operating income for the nine-month period ended December 31, 2014 decreased 12.4% from the same period of the previous fiscal year to ¥88.0 billion.

•

Mobile Communications Business Segment

Nine-Month Period Ended December 31, 2014 (April 1, 2014 – December 31, 2014)


	(Billions of yen)
	Nine Months Ended December 31, 2013		Nine Months Ended December 31, 2014		Change			Percent Change
Operating revenues		3,363.6		3,326.8		(36.8	)		(1.1	)%
Operating expenses		2,677.8		2,741.9		64.1			2.4	%
Operating income		685.7		584.9		(100.9	)		(14.7	)%

Despite an increase in revenues associated with NTT Group’s expanding “Smart Life” business, operating revenues for the mobile communications business segment for the nine-month period ended December 31, 2014 decreased 1.1% from the same period of the previous fiscal year to ¥3,326.8 billion due to, among other things, a decline in mobile voice-related revenues resulting from the impact of its “Monthly Support” discount programs and the new “Kake-hodai & Pake-aeru” billing plan. Further, despite the implementation of measures to reduce costs through structural changes, operating expenses for the nine-month period ended December 31, 2014 increased 2.4% from the same period of the previous fiscal year to ¥2,741.9 billion due to increases in cost of equipment sold and in revenue-linked expenses. As a result, segment operating income for the nine-month period ended December 31, 2014 decreased 14.7% from the same period of the previous fiscal year to ¥584.9 billion.

Number of subscriptions


	(Thousands of subscriptions)
	As of March 31, 2014		As of December 31, 2014		Change			Percent Change
Mobile phone services		63,105		65,274		2,169			3.4	%
Xi		21,965		28,298		6,332			28.8	%
FOMA		41,140		36,976		(4,164	)		(10.1	)%
sp-mode		23,781		26,746		2,964			12.5	%
i-mode		26,415		23,396		(3,019	)		(11.4	)%

Notes:

(1)	Numbers for Mobile phone services subscribers (including Xi and FOMA subscribers) include communication module 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 FOMA service subscribers and, as a result, are also included in the number of Mobile phone services subscribers.

- 6 -

•

Data Communications Business Segment

Nine-Month Period Ended December 31, 2014 (April 1, 2014 – December 31, 2014)


	(Billions of yen)
	Nine Months Ended December 31, 2013		Nine Months Ended December 31, 2014		Change		Percent Change
Operating revenues		943.1		1,066.4		123.4		13.1	%
Operating expenses		908.2		1,009.7		101.5		11.2	%
Operating income		34.9		56.7		21.9		62.7	%

Operating revenues in the data communications business segment for the nine-month period ended December 31, 2014 increased 13.1% from the same period of the previous fiscal year to ¥1,066.4 billion due to, among other things, an increase in the number of overseas consolidated subsidiaries, the cultivation of new customers and an increase in revenues resulting from the expansion of systems for existing customers. On the other hand, operating expenses for the nine-month period ended December 31, 2014 rose 11.2% from the same period of the previous fiscal year to ¥1,009.7 billion due to, among other things, an increase in revenue-linked expenses, despite a reduction in unprofitable transactions. As a result, segment operating income for the nine-month period ended December 31, 2014 increased 62.7% from the same period of the previous fiscal year to ¥56.7 billion.

•

Other Business Segment

Nine-Month Period Ended December 31, 2014 (April 1, 2014 – December 31, 2014)


	(Billions of yen)
	Nine Months Ended December 31, 2013		Nine Months Ended December 31, 2014		Change			Percent Change
Operating revenues		936.4		894.1		(42.3	)		(4.5	)%
Operating expenses		884.8		853.8		(31.0	)		(3.5	)%
Operating income		51.6		40.3		(11.3	)		(21.9	)%

Operating revenues in the other business segment for the nine-month period ended December 31, 2014 decreased 4.5% from the same period of the previous fiscal year to ¥894.1 billion due to, among other things, decreased revenues in NTT’s real estate and systems development businesses. On the other hand, operating expenses for the nine-month period ended December 31, 2014 decreased 3.5% from the same period of the previous fiscal year to ¥853.8 billion due to, among other things, a decrease in revenue-linked expenses in NTT’s real estate business. As a result, segment operating income for the nine-month period ended December 31, 2014 decreased 21.9% from the same period of the previous fiscal year to ¥40.3 billion.

- 7 -

(2) Qualitative Information Relating to Consolidated Financial Position

Net cash provided by operating activities for the nine-month period ended December 31, 2014 decreased ¥223.2 billion (13.8%) from the same period of the previous fiscal year to ¥1,399.7 billion. This decrease was due to, among other factors, a decrease in operating income as well as the effect of bank holidays.

Net cash used in investing activities decreased ¥79.7 billion (5.2%) from the same period of the previous fiscal year to ¥1,453.0 billion. This decrease was due to, among other factors, a decrease in capital investments and in payments for the purchase of non-current investments and other such investments.

Net cash used in financing activities decreased ¥60.9 billion (68.5%) from the same period of the previous fiscal year to ¥28.0 billion. This decrease was due to, among other factors, an increase in borrowings, which offset an increase in the payment of cash dividends.

As a result of the above, NTT Group’s consolidated cash and cash equivalents as of December 31, 2014 totaled ¥905.8 billion, a decrease of ¥78.7 billion (8.0%) from the end of the previous fiscal year.


	(Billions of yen)
	Nine Months Ended December 31, 2013			Nine Months Ended December 31, 2014			Change			Percent Change
Cash flows provided by operating activities		1,623.0			1,399.7			(223.2	)		(13.8	)%
Cash flows used in investing activities		(1,532.7	)		(1,453.0	)		79.7			5.2	%
Cash flows used in financing activities		(88.9	)		(28.0	)		60.9			68.5	%

(3) Qualitative Information Relating to Consolidated Results Forecasts

There are no changes to the consolidated results forecasts for the fiscal year ending March 31, 2015 announced on November 7, 2014. For the assumptions used in the consolidated results forecasts and other related matters, please see page 24.

- 8 -

2. OTHERS

(1)	Change in significant consolidated subsidiaries during the nine months ended December 31, 2014 that resulted in changes in the scope of consolidation: None

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

(3)	Change of accounting policy: None

- 9 -

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets


	Millions of yen
	March 31, 2014			December 31, 2014			Increase (Decrease)
ASSETS
Current assets:
Cash and cash equivalents	¥	984,463		¥	905,796		¥	(78,667	)
Short-term investments		38,949			59,973			21,024
Notes and accounts receivable, trade		2,509,030			2,701,280			192,250
Allowance for doubtful accounts		(46,893	)		(48,390	)		(1,497	)
Accounts receivable, other		345,197			413,843			68,646
Inventories		415,309			446,148			30,839
Prepaid expenses and other current assets		394,294			464,930			70,636
Deferred income taxes		220,662			198,671			(21,991	)

Total current assets		4,861,011			5,142,251			281,240

Property, plant and equipment:
Telecommunications equipment		12,959,564			12,807,435			(152,129	)
Telecommunications service lines		15,408,604			15,567,610			159,006
Buildings and structures		6,060,129			6,101,812			41,683
Machinery, vessels and tools		1,949,903			1,981,584			31,681
Land		1,238,742			1,287,071			48,329
Construction in progress		359,014			381,988			22,974

		37,975,956			38,127,500			151,544
Accumulated depreciation		(28,136,268	)		(28,402,801	)		(266,533	)

Net property, plant and equipment		9,839,688			9,724,699			(114,989	)


Investments and other assets:
Investments in affiliated companies		521,634			521,328			(306	)
Marketable securities and other investments		407,766			496,816			89,050
Goodwill		1,086,636			1,132,968			46,332
Software		1,309,912			1,245,843			(64,069	)
Other intangible assets		401,194			380,456			(20,738	)
Other assets		1,195,608			1,358,164			162,556
Deferred income taxes		661,500			639,752			(21,748	)

Total investments and other assets		5,584,250			5,775,327			191,077

Total assets	¥	20,284,949		¥	20,642,277		¥	357,328

- 10 -


	Millions of yen
	March 31, 2014			December 31, 2014			Increase (Decrease)
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	269,444		¥	760,434		¥	490,990
Current portion of long-term debt		425,351			418,767			(6,584	)
Accounts payable, trade		1,540,249			1,249,304			(290,945	)
Current portion of obligations under capital leases		16,929			17,437			508
Accrued payroll		448,061			381,663			(66,398	)
Accrued taxes on income		256,994			77,195			(179,799	)
Accrued consumption tax		47,376			139,748			92,372
Advances received		266,743			251,460			(15,283	)
Other		405,677			444,652			38,975

Total current liabilities		3,676,824			3,740,660			63,836

Long-term liabilities:
Long-term debt (excluding current portion)		3,483,673			3,653,675			170,002
Obligations under capital leases (excluding current portion)		35,951			34,422			(1,529	)
Liability for employees’ retirement benefits		1,327,873			1,365,851			37,978
Accrued liabilities for point programs		130,466			112,584			(17,882	)
Deferred income taxes		233,151			217,189			(15,962	)
Other		446,293			491,317			45,024

Total long-term liabilities		5,657,407			5,875,038			217,631

Redeemable noncontrolling interests		25,912			26,600			688

Equity:
NTT shareholders’ equity
Common stock, no par value		937,950			937,950			—
Additional paid-in capital		2,827,010			2,845,824			18,814
Retained earnings		4,808,361			5,058,382			250,021
Accumulated other comprehensive income (loss)		94,966			152,689			57,723
Treasury stock, at cost		(156,933	)		(416,111	)		(259,178	)

Total NTT shareholders’ equity		8,511,354			8,578,734			67,380

Noncontrolling interests		2,413,452			2,421,245			7,793

Total equity		10,924,806			10,999,979			75,173

Total liabilities and equity	¥	20,284,949		¥	20,642,277		¥	357,328

- 11 -

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

NINE-MONTH PERIOD ENDED DECEMBER 31

Consolidated Statements of Income


	Millions of yen
	2013			2014			Increase (Decrease)
Operating revenues:
Fixed voice related services	¥	1,184,765		¥	1,087,270		¥	(97,495	)
Mobile voice related services		789,546			660,586			(128,960	)
IP / packet communications services		2,789,563			2,750,096			(39,467	)
Sale of telecommunications equipment		740,095			794,443			54,348
System integration		1,585,561			1,893,468			307,907
Other		935,654			996,664			61,010

		8,025,184			8,182,527			157,343

Operating expenses:
Cost of services (excluding items shown separately below)		1,720,380			1,736,079			15,699
Cost of equipment sold (excluding items shown separately below)		646,856			706,803			59,947
Cost of system integration (excluding items shown separately below)		1,147,150			1,323,731			176,581
Depreciation and amortization		1,394,935			1,365,268			(29,667	)
Impairment loss		166			1,604			1,438
Selling, general and administrative expenses		2,127,588			2,138,095			10,507
Goodwill and other intangible asset impairments		2,989			—			(2,989	)

		7,040,064			7,271,580			231,516

Operating income		985,120			910,947			(74,173	)

Other income (expenses):
Interest and amortization of bond discounts and issue costs		(36,944	)		(33,155	)		3,789
Interest income		13,221			13,821			600
Other, net		62,706			18,569			(44,137	)

		38,983			(765	)		(39,748	)

Income before income taxes and equity in earnings (losses) of affiliated companies		1,024,103			910,182			(113,921	)

Income tax expense (benefit):
Current		389,174			298,193			(90,981	)
Deferred		(6,527	)		17,544			24,071

		382,647			315,737			(66,910	)

Income before equity in earnings (losses) of affiliated companies		641,456			594,445			(47,011	)

Equity in earnings (losses) of affiliated companies		(2,833	)		3,635			6,468

Net income		638,623			598,080			(40,543	)

Less – Net income attributable to noncontrolling interests		154,319			148,139			(6,180	)

Net income attributable to NTT	¥	484,304		¥	449,941		¥	(34,363	)


Per share of common stock:
Weighted average number of shares outstanding (Shares)		1,156,476,181			1,103,621,904
Net income attributable to NTT (Yen)	¥	418.78		¥	407.69

Consolidated Statements of Comprehensive Income


	Millions of yen
	2013			2014			Increase (Decrease)
Net income	¥	638,623		¥	598,080		¥	(40,543	)
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities		28,200			60,413			32,213
Unrealized gain (loss) on derivative instruments		(2,540	)		(301	)		2,239
Foreign currency translation adjustments		83,928			33,626			(50,302	)
Pension liability adjustments		100,677			(2,552	)		(103,229	)
Total other comprehensive income (loss)		210,265			91,186			(119,079	)
Total comprehensive income (loss)		848,888			689,266			(159,622	)
Less – Comprehensive income attributable to noncontrolling interests		183,179			181,602			(1,577	)

Total comprehensive income (loss) attributable to NTT	¥	665,709		¥	507,664		¥	(158,045	)

- 12 -

THREE-MONTH PERIOD ENDED DECEMBER 31

Consolidated Statements of Income


	Millions of yen
	2013			2014			Increase (Decrease)
Operating revenues:
Fixed voice related services	¥	390,283		¥	356,893		¥	(33,390	)
Mobile voice related services		254,497			214,127			(40,370	)
IP / packet communications services		925,755			911,726			(14,029	)
Sale of telecommunications equipment		297,866			309,118			11,252
System integration		556,434			663,850			107,416
Other		334,279			353,145			18,866

		2,759,114			2,808,859			49,745

Operating expenses:
Cost of services (excluding items shown separately below)		571,178			572,454			1,276
Cost of equipment sold (excluding items shown separately below)		276,160			280,122			3,962
Cost of system integration (excluding items shown separately below)		410,510			458,389			47,879
Depreciation and amortization		475,815			454,164			(21,651	)
Impairment loss		4			1,394			1,390
Selling, general and administrative expenses		693,354			722,313			28,959

		2,427,021			2,488,836			61,815

Operating income		332,093			320,023			(12,070	)

Other income (expenses):
Interest and amortization of bond discounts and issue costs		(12,187	)		(10,569	)		1,618
Interest income		4,449			4,695			246
Other, net		23,970			3,876			(20,094	)

		16,232			(1,998	)		(18,230	)

Income before income taxes and equity in earnings (losses) of affiliated companies		348,325			318,025			(30,300	)

Income tax expense (benefit):
Current		123,311			104,222			(19,089	)
Deferred		1,442			3,018			1,576

		124,753			107,240			(17,513	)

Income before equity in earnings (losses) of affiliated companies		223,572			210,785			(12,787	)

Equity in earnings (losses) of affiliated companies		(8,947	)		1,177			10,124

Net income		214,625			211,962			(2,663	)

Less – Net income attributable to noncontrolling interests		53,861			52,353			(1,508	)

Net income attributable to NTT	¥	160,764		¥	159,609		¥	(1,155	)


Per share of common stock:
Weighted average number of shares outstanding (Shares)		1,137,382,961			1,091,484,931
Net income attributable to NTT (Yen)	¥	141.35		¥	146.23

Consolidated Statements of Comprehensive Income


	Millions of yen
	2013		2014			Increase (Decrease)
Net income	¥	214,625	¥	211,962		¥	(2,663	)
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities		11,023		50,947			39,924
Unrealized gain (loss) on derivative instruments		929		(12	)		(941	)
Foreign currency translation adjustments		13,088		68,741			55,653
Pension liability adjustments		94,649		(1,457	)		(96,106	)
Total other comprehensive income (loss)		119,689		118,219			(1,470	)
Total comprehensive income (loss)		334,314		330,181			(4,133	)
Less – Comprehensive income attributable to noncontrolling interests		67,249		84,768			17,519

Total comprehensive income (loss) attributable to NTT	¥	267,065	¥	245,413		¥	(21,652	)

- 13 -

(3) Consolidated Statements of Cash Flows

NINE-MONTH PERIOD ENDED DECEMBER 31


	Millions of yen
	2013			2014			Increase (Decrease)
Cash flows from operating activities:
Net income	¥	638,623		¥	598,080		¥	(40,543	)
Adjustments to reconcile net income to net cash provided by operating activities -
Depreciation and amortization		1,394,935			1,365,268			(29,667	)
Impairment loss		166			1,604			1,438
Deferred taxes		(6,527	)		17,544			24,071
Goodwill and other intangible asset impairments		2,989			—			(2,989	)
Losses on disposal of property, plant and equipment		63,781			63,765			(16	)
Equity in (earnings) losses of affiliated companies		2,833			(3,635	)		(6,468	)
(Increase) decrease in notes and accounts receivable, trade		17,052			(179,956	)		(197,008	)
(Increase) decrease in inventories		(126,609	)		(54,726	)		71,883
(Increase) decrease in other current assets		(91,842	)		(138,769	)		(46,927	)
Increase (decrease) in accounts payable, trade and accrued payroll		(250,095	)		(210,285	)		39,810
Increase (decrease) in accrued consumption tax		3,257			92,034			88,777
Increase (decrease) in advances received		3,861			(18,128	)		(21,989	)
Increase (decrease) in accrued taxes on income		(67,341	)		(180,154	)		(112,813	)
Increase (decrease) in other current liabilities		18,127			28,246			10,119
Increase (decrease) in liability for employees’ retirement benefits		51,638			37,028			(14,610	)
Increase (decrease) in other long-term liabilities		9,724			18,490			8,766
Other		(41,599	)		(36,677	)		4,922

Net cash provided by operating activities	¥	1,622,973		¥	1,399,729		¥	(223,244	)

- 14 -


	Millions of yen
	2013			2014			Increase (Decrease)
Cash flows from investing activities:
Payments for property, plant and equipment	¥	(1,161,716	)	¥	(1,108,674	)	¥	53,042
Payments for intangibles		(310,707	)		(260,862	)		49,845
Proceeds from sales of property, plant and equipment		40,694			19,097			(21,597	)
Payments for purchase of non-current investments		(40,885	)		(18,824	)		22,061
Proceeds from sales and redemptions of non-current investments		12,788			17,897			5,109
Acquisitions of subsidiaries, net of cash acquired		(55,459	)		(21,949	)		33,510
Payments for purchases of short-term investments		(50,004	)		(55,937	)		(5,933	)
Proceeds from redemptions of short-term investments		72,643			38,802			(33,841	)
Other		(40,103	)		(62,580	)		(22,477	)

Net cash used in investing activities		(1,532,749	)		(1,453,030	)		79,719


Cash flows from financing activities:
Proceeds from issuance of long-term debt		404,980			457,143			52,163
Payments for settlement of long-term debt		(582,565	)		(334,309	)		248,256
Proceeds from issuance of short-term debt		4,865,207			4,646,133			(219,074	)
Payments for settlement of short-term debt		(4,255,747	)		(4,167,653	)		88,094
Dividends paid		(186,174	)		(199,769	)		(13,595	)
Proceeds from sale of (payments for acquisition of) treasury stock, net		(250,130	)		(256,797	)		(6,667	)
Acquisition of treasury stock by subsidiaries		(5,215	)		(70,798	)		(65,583	)
Other		(79,277	)		(101,947	)		(22,670	)

Net cash used in financing activities		(88,921	)		(27,997	)		60,924

Effect of exchange rate changes on cash and cash equivalents		10,918			2,631			(8,287	)

Net increase (decrease) in cash and cash equivalents		12,221			(78,667	)		(90,888	)
Cash and cash equivalents at beginning of period		961,433			984,463			23,030

Cash and cash equivalents at end of period	¥	973,654		¥	905,796		¥	(67,858	)


Cash paid during the period for:
Interest	¥	37,430		¥	32,446		¥	(4,984	)
Income taxes, net	¥	458,349		¥	532,984		¥	74,635

- 15 -

(4) Going Concern Assumption

None

(5) Change in Accounting Estimate

Effective July 1, 2014, NTT Group revised its estimate of the expected useful life of a part of the software for telecommunications network and internal-use software based on the actual utilization of the software to reflect an extended expected useful life of up to 7 years. This modification complies with FASB Accounting Standards Codification Topic 250, Accounting Changes and Error Corrections, and will be applied prospectively as a change in accounting estimate. The financial impact from this change in accounting estimate on “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 ¥35,505 million, ¥15,040 million, and ¥13.63, respectively, for the nine months ended December 31, 2014, and ¥17,057 million, ¥7,145 million, and ¥6.55, respectively, for the three months ended December 31, 2014.

- 16 -

(6) Business Segments

NINE-MONTH PERIOD ENDED DECEMBER 31

1.	Operating revenues


	(Millions of yen)
	Nine months ended December 31, 2013			Nine months ended December 31, 2014			Increase (Decrease)
Regional communications business
External customers		2,304,623			2,232,967			(71,656	)
Intersegment		321,751			346,208			24,457

Total		2,626,374			2,579,175			(47,199	)

Long distance and international communications business
External customers		1,241,488			1,382,470			140,982
Intersegment		71,181			64,878			(6,303	)

Total		1,312,669			1,447,348			134,679

Mobile communications business
External customers		3,332,676			3,294,675			(38,001	)
Intersegment		30,888			32,105			1,217

Total		3,363,564			3,326,780			(36,784	)

Data communications business
External customers		853,675			995,658			141,983
Intersegment		89,379			70,789			(18,590	)

Total		943,054			1,066,447			123,393

Other business
External customers		292,722			276,757			(15,965	)
Intersegment		643,709			617,325			(26,384	)

Total		936,431			894,082			(42,349	)

Elimination		(1,156,908	)		(1,131,305	)		25,603

Consolidated total		8,025,184			8,182,527			157,343

2.	Segment profit


	(Millions of yen)
	Nine months ended December 31, 2013		Nine months ended December 31, 2014		Increase (Decrease)
Segment profit
Regional communications business		100,453		131,482		31,029
Long distance and international communications business		100,419		87,954		(12,465	)
Mobile communications business		685,723		584,858		(100,865	)
Data communications business		34,856		56,715		21,859
Other business		51,633		40,302		(11,331	)

Total segment profit		973,084		901,311		(71,773	)

Elimination		12,036		9,636		(2,400	)

Consolidated total		985,120		910,947		(74,173	)

- 17 -

THREE-MONTH PERIOD ENDED DECEMBER 31

1.	Operating revenues


	(Millions of yen)
	Three months ended December 31, 2013			Three months ended December 31, 2014			Increase (Decrease)
Regional communications business
External customers		766,214			747,032			(19,182	)
Intersegment		111,008			117,715			6,707

Total		877,222			864,747			(12,475	)

Long distance and international communications business
External customers		426,007			474,170			48,163
Intersegment		22,763			23,193			430

Total		448,770			497,363			48,593

Mobile communications business
External customers		1,153,619			1,141,218			(12,401	)
Intersegment		10,974			12,586			1,612

Total		1,164,593			1,153,804			(10,789	)

Data communications business
External customers		298,610			350,248			51,638
Intersegment		30,557			20,625			(9,932	)

Total		329,167			370,873			41,706

Other business
External customers		114,664			96,191			(18,473	)
Intersegment		219,134			206,310			(12,824	)

Total		333,798			302,501			(31,297	)

Elimination		(394,436	)		(380,429	)		14,007

Consolidated total		2,759,114			2,808,859			49,745

2.	Segment profit


	(Millions of yen)
	Three months ended December 31, 2013		Three months ended December 31, 2014		Increase (Decrease)
Segment profit
Regional communications business		24,836		53,214		28,378
Long distance and international communications business		38,934		31,561		(7,373	)
Mobile communications business		215,103		187,061		(28,042	)
Data communications business		28,425		29,172		747
Other business		21,178		17,247		(3,931	)

Total segment profit		328,476		318,255		(10,221	)

Elimination		3,617		1,768		(1,849	)

Consolidated total		332,093		320,023		(12,070	)

- 18 -

(7) NTT Shareholders’ Equity

1. Dividends

Cash dividends paid


Resolution		The shareholders’ meeting on June 26, 2014
Class of shares		Common stock
Source of dividends		Retained earnings
Total cash dividends paid		¥99,904 million
Cash dividends per share		¥90
Record date		March 31, 2014
Date of payment		June 27, 2014

Resolution		The Board of Directors’ meeting on November 7, 2014
Class of shares		Common stock
Source of dividends		Retained earnings
Total cash dividends paid		¥99,866 million
Cash dividends per share		¥90
Record date		September 30, 2014
Date of payment		December 8, 2014

2. Treasury stock

On May 13, 2014, the board of directors of NTT resolved that NTT may acquire up to 44 million shares of its outstanding common stock for an amount in total not exceeding ¥250 billion from July 1, 2014 through March 31, 2015.

On November 7, 2014, the board of directors revised its resolution above and resolved that NTT may acquire up to 51 million shares of its outstanding common stock for an amount in total not exceeding ¥350 billion from November 10, 2014 through June 30, 2015. Based on this resolution, NTT repurchased 38,000,000 shares of its common stock at a price of ¥249,166 million and 1,168,100 shares of its common stock at a price of ¥7,429 million on November 14, 2014 and November 28, 2014, respectively, using ToSTNeT-3.

NTT also repurchased 4,619,100 shares of its common stock for a total purchase price of ¥29,614 million in January 2015.

- 19 -

(8) Subsequent Events

Tata Teleservices Limited

Tata Teleservices Limited (“TTSL”) is a telecommunications operator in India and a privately held company.

As of December 31, 2013 and 2014, NTT Group held via NTT DOCOMO approximately 26.5% of the outstanding common shares of TTSL and has accounted for the investment under the equity method.

Under the shareholders agreement (the “Agreement”) entered into among TTSL, Tata Sons Limited (“Tata Sons”), the parent company of TTSL, and NTT DOCOMO, when NTT DOCOMO entered into a business alliance with TTSL in March 2009, NTT DOCOMO shall have certain shareholder rights including the right to require Tata Sons to find a suitable buyer for NTT DOCOMO’s entire stake (1,248,974,378 shares, or approximately 26.5% of outstanding shares) in TTSL for 50% of NTT DOCOMO’s acquisition price, which amounts to 72.5 billion Indian rupees (or ¥138.5 billion*) or at fair value, whichever is higher, in the event that TTSL fails to achieve certain specified performance targets by March 31, 2014. The right became exercisable on May 30, 2014, and NTT DOCOMO exercised the right on July 7, 2014.

The obligation of Tata Sons under the Agreement was not fulfilled, although NTT DOCOMO repeatedly held discussions with Tata Sons in regards to the sale of its entire stake in TTSL, pursuant to the Agreement. Accordingly, NTT DOCOMO submitted its request for arbitration to the London Court of International Arbitration on January 3, 2015.

The sale of NTT DOCOMO’s stake in TTSL has not been completed as Tata Sons has not fulfilled its obligation, and thus NTT DOCOMO has not accounted for the sales transaction for the year ending March 31, 2015. NTT DOCOMO continues to account for the investment in TTSL under the equity method as NTT DOCOMO continues to hold approximately 26.5% of the outstanding voting shares of TTSL and have representation on the board of directors of TTSL even after submitting the request for arbitration. The financial effect of this matter cannot be estimated at this time due to the aforementioned uncertainties surrounding this investment. NTT DOCOMO may recognize a gain or loss upon disposition of its TTSL shares or in the event that it becomes probable that the likelihood of the transaction as described above will not be carried out.

*1 rupee = ¥1.91 as of December 30, 2014

NTT DOCOMO’s repurchase of its common stock

On October 31, 2014, the board of directors of NTT DOCOMO resolved that NTT DOCOMO may repurchase up to 138,469,879 shares of its outstanding common stock for an amount in total not exceeding ¥192,306 million between November 1, 2014 and March 31, 2015.

Based on this resolution, in January 2015, NTT DOCOMO repurchased a total of 13,300,000 shares of its common stock for an aggregate of ¥25,312 million. Due to NTT DOCOMO’s additional repurchase transactions, NTT’s ownership interest in NTT DOCOMO further increased from 65.8% to 66.0%. NTT expects to recognize the difference between the consideration paid to the non-controlling interest holders and the decrease in the carrying value of such non-controlling interests resulting from this transaction as an adjustment to “Additional paid-in capital” in the consolidated balance sheet as of March 31, 2015.

NTT’s repurchase of its common stock

Please see note 7 for details.

- 20 -

4. (Reference)

NON-CONSOLIDATED FINANCIAL STATEMENTS

(1) Non-Consolidated Balance Sheets

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	March 31, 2014		December 31, 2014
ASSETS
Current assets:
Cash and bank deposits		10,308		12,054
Accounts receivable, trade		2,695		759
Supplies		220		216
Subsidiary deposits		2,340		2,384
Other		365,577		378,139

Total current assets		381,143		393,553

Fixed assets:
Property, plant and equipment		166,062		157,824
Intangible fixed assets		37,520		26,792
Investments and other assets
Investments in subsidiaries and affiliated companies		5,094,091		5,095,527
Long-term loans receivable to subsidiaries		1,579,922		1,442,022
Other		43,355		42,018

Total investments and other assets		6,717,369		6,579,568

Total fixed assets		6,920,952		6,764,185

TOTAL ASSETS		7,302,096		7,157,739


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

- 21 -

(Reference)


	Millions of yen
	March 31, 2014			December 31, 2014
LIABILITIES
Current liabilities:
Accounts payable, trade		249			26
Current portion of corporate bonds		139,998			149,993
Current portion of long-term borrowings		138,150			56,950
Current portion of long-term borrowings from subsidiaries		—			80,000
Short-term borrowings		150,000			—
Accrued taxes on income		13,077			951
Deposit received from subsidiaries		82,698			43,124
Other		62,999			85,614

Total current liabilities		587,173			416,660

Long-term liabilities:
Corporate bonds		1,006,277			856,329
Long-term borrowings		1,104,380			1,257,480
Long-term borrowings from subsidiaries		240,000			160,000
Liability for employees’ retirement benefits		32,773			31,028
Asset retirement obligations		1,390			1,378
Other		1,096			3,356

Total long-term liabilities		2,385,918			2,309,572

TOTAL LIABILITIES		2,973,091			2,726,233

NET ASSETS
Shareholders’ equity:
Common stock		937,950			937,950
Capital surplus		2,672,826			2,672,826
Earned surplus		873,705			1,237,556
Treasury stock		(156,932	)		(416,110	)

Total shareholders’ equity		4,327,549			4,432,222

Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		1,455			(716	)

Total unrealized gains (losses), translation adjustments, and others		1,455			(716	)

TOTAL NET ASSETS		4,329,004			4,431,505

TOTAL LIABILITIES AND NET ASSETS		7,302,096			7,157,739


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

- 22 -

(Reference)

(2) Non-Consolidated Statements of Income

NINE-MONTH PERIOD ENDED DECEMBER 31

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	2013		2014
Operating revenues		389,265		372,149
Operating expenses		100,206		95,312

Operating income		289,058		276,837

Non-operating revenues:
Interest income		16,351		14,165
Lease and rental income		8,428		7,981
Miscellaneous income		961		676

Total non-operating revenues		25,740		22,823

Non-operating expenses:
Interest expenses		11,423		10,688
Corporate bond interest expenses		11,842		10,705
Miscellaneous expenses		7,744		4,648

Total non-operating expenses		31,010		26,041

Recurring profit		283,789		273,619

Special profits		—		299,280

Income before income taxes		283,789		572,899

Income taxes		883		11,644

Net income		282,905		561,255


(Reference) Major components of operating revenues
Dividends received		284,394		272,159
Revenues from group management		13,875		13,876
Revenues from basic R&D		85,874		79,874


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

- 23 -

[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.

- 24 -

Attachment

Nippon Telegraph and Telephone Corporation

February 6, 2015

NTT’s Shares and Shareholders (as of December 31, 2014)

1.	Classification of Shareholders


Details	NTT’s Shares and Shareholders (1 unit = 100 shares)																Shares Representing Less Than One Unit
	Government and Public Bodies		Financial Institutions		Securities Firms		Other Domestic Corporations		Foreign Corporations, etc.				Domestic Individuals, etc.		Total
	Government and Public Bodies		Financial Institutions		Securities Firms		Other Domestic Corporations		Non- Individuals		Individuals		Domestic Individuals, etc.		Total
Total Holders		4		253		80		6,208		1,248		837		763,664		772,294		—
Total Shares (Units)		3,690,741		1,645,964		75,135		143,728		3,290,854		5,058		2,500,306		11,351,786		1,518,635
%		32.51		14.50		0.66		1.27		28.99		0.04		22.03		100.00		—

2.	Classification by Number of Shares


Details	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		405		162		828		906		21,372		49,829		698,792		772,294		—
%		0.05		0.02		0.11		0.12		2.77		6.45		90.48		100.00		—
Total Shares (Units)		9,300,223		111,993		174,908		58,845		328,396		302,602		1,074,819		11,351,786		1,518,635
%		81.93		0.99		1.54		0.52		2.89		2.67		9.47		100.00		—


Notes:	(1)	“At Least 1,000 Units” includes 662,562 units of treasury stock, and “Shares Representing Less Than One Unit” includes 2 shares of treasury stock.
	(2)	“At Least 100 Units” includes 147 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	Shareholdings (in thousands of shares)		Percentage of Total Shares Issued (%)
The Minister of Finance		369,063		32.47
Japan Trustee Services Bank, Ltd. (Trust Account)		34,911		3.07
The Master Trust Bank of Japan, Ltd. (Trust Account)		29,319		2.58
Moxley and Co LLC		17,655		1.55
State Street Bank and Trust Company		11,477		1.01
JP Morgan Chase Bank 385632		9,943		0.87
NTT Employee Share-Holding Association		9,241		0.81
Japan Trustee Services Bank, Ltd. (Trust Account 9)		8,774		0.77
The Bank of New York Mellon SA/NV 10		8,231		0.72
Japan Trustee Services Bank, Ltd. (Trust Account 5)		8,037		0.71

Total		506,656		44.57


Note:				The Company’s holdings of treasury stock (66,255,902 shares) are not included in the above table.

- 25 -

LOGO

Financial Results for the Nine Months

Ended December 31, 2014

February 6, 2015

LOGO

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.

“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.

*** “3Q” in this material represents the 9-month period beginning on April 1 and ending on December 31.

—1—

LOGO

FY2014/3Q Highlights

Operating Revenues increased for the fifth consecutive year

Expansion of global cloud services

Overseas sales: + Ą288.1 billion increase year-on-year; steadily progressing toward its annual target of $15.0 billion

Cross-selling order volume: approximately $146 million

Enhanced competitiveness of network services

Expansion of NTT’s user base

13.54 million new rate plan subscribers

65.27 million mobile phone subscribers (net increase of 2.17 million)

18.62 million FLET’S Hikari subscribers (net increase of 0.57 million)

4.28 million Hikari TV and FLET’S TV subscribers (net increase of 0.29 million)

Cost reductions

Fixed-line and mobile access cost reductions: NTT achieved cost reductions of Ą154.0 billion during FY2014/3Q, out of its annual target of Ą190.0 billion

Shareholder Returns

Completed Ą256.6 billion of share buybacks (mainly from the Japanese government), out of up to Ą350.0 billion in repurchases by the end of FY2015/1Q

Consolidated Operating Income

(Billions of yen)

3Q FY

1,213.7 1,095.0

[forecast]

985.1

910.9

FY2013 FY2014

Global Revenues

(Billions of yen)

3Q FY

1,530.0

($15.0 billion) 1,196.0 [forecast]

($12.2 billion)

1,149.1

861.0 ($11.2 billion)

($8.9 billion)

FY2013 FY2014

—2—

LOGO

FY2FY2014/3Q Highlights

Operating Revenues increased for the fifth consecutive year due to the growth of overseas businesses.

Operating Income decreased but was in line with expectations.

(Billions of yen)

FY2014/3Q % progress

FY2014 compared to

FY2013/3Q Forecasts FY2014

% Year-on-Year

Change Forecasts

Increase

year-on-year (Decrease)

Operating

8,182.5 +157.3 +2.0% 8,025.2 11,010.0 74.3%

Revenues

Operating

7,271.6 +231.5 +3.3% 7,040.1 9,915.0 73.3%

Expenses

Operating

910.9 (74.2) (7.5)% 985.1 1,095.0 83.2%

Income

Net Income* 449.9 (34.4) (7.1)% 484.3 529.0 85.1%

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

—3—

LOGO

Consolidated Results and Forecasts (U.S. GAAP)

FY2014/3Q Contributing Factors by Segment

Regional communications business: Operating Income increased as a result of vastly improved operational efficiency as well as the reduction of marketing costs.

Long distance and international communication business: Although intensifying domestic competition led to a decrease in Operating Income, overseas businesses experienced steady growth.

Mobile communications business: Operating Revenues decreased due to the increased impact of “Monthly Support” discount programs and the effect of new rate plans, which also resulted in a decrease in Operating Income.

Data communications business: Operating Income increased due to an improvement in gross margin in conjunction with an increase in sales, in addition to a reduction in unprofitable transactions.

Operating [year-on-year +157.3] Mobile Data Other (Billions of yen)

Revenues communications communications business

business business

123.4 42.3 25.6

134.7 36.8

47.2 Elimination of

8,025.2 intersegment/Others 8,182.5

Regional Long distance and

communications international

business communications

business

FY2013/3Q FY2014/3Q

Operating [year-on-year +231.5]

Expenses 101.5 31.0 28.0

64.1 Other Elimination of

147.1 Data

78.2 Mobile communications business intersegment/Others

communications business 7,271.6

7,040.1 Regional Long international distance and business

communications

business communications

business

FY2013/3Q FY2014/3Q

Operating

Income [year-on-year (74.2)]

Regional Long distance and Mobile Data Other business Elimination of

communications international communications communications intersegment/

FY2013/3Q business communications business business Others FY2014/3Q

business

985.1 31.0 12.5 100.9 21.9 11.3 2.4 910.9

—4—

LOGO

Progress of Broadband Services

LOGO

Progress of Broadband Services

Number of Subscribers for Fixed Broadband Services

Number of subscribers

FLET’S ADSL

FLET’S Hikari

Hikari Denwa

(Thousands)

Changes from the preceding quarter

* 1

20,000 15,000 10,000 5,000 0

19,271 19,335 19,444 19,534 19,717 19,788 19,892 19,954

1,751 1,663 1,572 1,483 1,398 1,333 1,275 1,203

17,521 17,672 17,873 18,050 18,319 18,455 18,617 18,750

15,412 15,664 15,950 16,256 16,507 16,705 16,910 17,106

2013.6 2013.9 2013.12 2014.3 2014.6 2014.9 2014.12 2015.3E

FLET’S Hikari

Number of opened connections

FLET’S ADSL

Hikari Denwa

FY2013 FY2014 FY2013 FY2014E

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

220 152 200 178 269 136 162 567

870 707 743 811 879 683 684 2,246

(98)

(88) (91) (89) (85) (65) (58) (208)

242 252 287 305 251 199 204 654

* 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.

(Thousands)

750 700 3,131 3,000 (365) (280) 1,087 850

** 3 Number of Hikari Denwa subscribers is presented in thousands of channels.

—5—

LOGO

Progress of Broadband Services

Number of Subscribers for Mobile Broadband Services

70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

61,623 61,772 62,182 63,105 63,566 64,295 65,274 67,000

14,198 16,398 19,021 21,965 24,043 26,215 28,298 29,700

47,425 45,374 43,160 41,140 39,523 38,080 36,976 37,300

2013.6 2013.9 2013.12 2014.3 2014.6 2014.9 2014.12 2015.3E

FY2013 FY2014 FY2013 FY2014E

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

87 149 410 924 461 729 979 2,169 1,569 3,900

Changes from the preceding quarter

* The number of communication module service subscribers is included in mobile broadband subscribers.

Number of subscribers (Thousands) Xi FOMA Xi+FOMA (Thousands)

—6—

LOGO

Progress of Broadband Services

ARPU of Fixed Broadband Services (FLET’S Hikari)*

NTT East (Yen) Optional Service

Basic Monthly Charge

6,000 4,000 2,000 0

5,750 5,680 5,650 5,570 5,460 5,450 5,490 5,660 5,500

1,760 1,760 1,790 1,770 1,770 1,750 1,760 1,770 1,800

3,990 3,920 3,860 3,800 3,690 3,700 3,730 3,890 3,700

FY2013 FY2014 FY2013 FY2014E

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

NTT West (Yen)

6,000 4,000 2,000 0

5,840 5,850 5,850 5,800 5,750 5,700 5,670 5,830 5,720

1,770 1,790 1,820 1,810 1,810 1,800 1,800 1,800 1,830

4,070 4,060 4,030 3,990 3,940 3,900 3,870 4,030 3,890

FY2013 FY2014 FY2013 FY2014E

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

* 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. Please see page 22 regarding the calculation of ARPU.

—7—

LOGO

Progress of Broadband Services

ARPU of Mobile Broadband Services (Xi, FOMA)*

Smart ARPU Packet ARPU Voice ARPU

5,000 4,000 3,000 2,000 1,000 0

4,680 4,680 4,610 4,460 4,450 4,370 4,340 4,610 4,350

470 500 510 520 530 560 620 500 570 (Yen)

2,720 2,720 2,700 2,680 2,670 2,620 2,560 2,700 2,600

1,490 1,460 1,400 1,260 1,250 1,190 1,160 1,410 1,180

FY2013 FY2014

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

FY2013 FY2014E

* NTT DOCOMO’s ARPU calculation methods have been changed from the second quarter of the fiscal year ending March 31, 2015. Accordingly, the ARPU data for the results for the three months ended Jun. 30, 2013 (from Apr. to Jun., 2013), the three months ended Sep. 30, 2013 (from Jul. to Sep., 2013), the three months ended Dec. 31, 2013 (from Oct. to Dec., 2013), the three months ended Mar. 31, 2014 (from Jan. to Mar., 2014), the year ended Mar. 31, 2014 and the three months ended Jun. 30, 2014 (from Apr. to Jun., 2014) presented above have also been changed.

Please see page 22 regarding the calculation of ARPU.

—8—

LOGO

Progress of Broadband Services

Number of Subscribers for Video Services

5,000 4,000 3,000 2,000 1,000 0

3,552 3,692 3,841 3,984 4,086 4,183 4,275 4,546

1,032 1,067 1,113 1,161 1,209 1,256 1,304 1,346

2,520 2,625 2,727 2,823 2,877 2,927 2,971 3,200

2013.6 2013.9 2013.12 2014.3 2014.6 2014.9 2014.12 FY2014E

* “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 “Opticast Facility Use Services” broadcast service.

FLET’S TV* Hikari TV (Thousands)

—9—

LOGO

Financial Information

LOGO

Subsidiaries’ Results (JPN GAAP Non-Consolidated)

NTT East Financial Results

(Billions of yen)

FY2014/3Q FY2014E

2.8

Operating 11.0 (0.2)% Revenues Progress

(0.8)% 73.9%

1,773.8 1,771.0

1,319.5 1,308.5 Voice Transmission Services (54.3) Voice Transmission Services (37.6) IP Services (1.3) IP Services (1.3) Others +52.8 Others +27.8

FY2013/3Q FY2014/3Q FY2013 FY2014E

Operating 36.9 26.0

Expenses (3.0)% (1.5)%

Progress

72.1%

1,707.0 Personnel expenses (4.9) 1,681.0 Personnel expenses (6.0) 1,249.5 1,212.5 Expenses for purchase of goods (24.2) Expenses for purchase of goods (30.7) and services and other expenses and services and other expenses Depreciation expenses and loss +3.1 Depreciation expenses and loss (0.1) on disposal of assets on disposal of assets

FY2013/3Q FY2014/3Q FY2013 FY2014E

Operating

Income Progress

25.9 106.6% 23.2

+37.0% +34.9%

70.0 95.9 66.7 90.0

—10—

LOGO

Subsidiaries’ Results (JPN GAAP Non-Consolidated)

NTT West Financial Results

(Billions of yen)

FY2014/3Q FY2014E

7.6

Operating 8.6 (0.5)%

Progress

Revenues (0.7)%

73.5%

1,589.6 1,582.0

1,172.0 1,163.4 Voice Transmission Services (50.3) Voice Transmission Services (37.9) IP Services +13.3 IP Services +10.4 Others +29.3 Others +18.8

FY2013/3Q FY2014/3Q FY2013 FY2014E

Operating 26.2

20.6

Expenses (1.7)%

(1.8)% Progress

73.2%

1,573.2 Personnel expenses +0.5 1,547.0 Personnel expenses (1.9) Expenses for purchase of goods (27.8) 1,153.0 Expenses for purchase of goods (16.7) 1,132.4 and services and other expenses and services and other expenses Depreciation expenses and loss +1.1 Depreciation expenses and loss (1.9) on disposal of assets on disposal of assets

FY2013/3Q FY2014/3Q FY2013 FY2014E

Operating

Income Progress

11.9 88.5% 18.6

+63.2% +113.7%

18.9 30.9 16.3 35.0

—11—

LOGO

Subsidiaries’ Results (JPN GAAP Non-Consolidated)

NTT Communications Financial Results

(Billions of yen)

FY2014/3Q FY2014E

34.0

Operating 24.7 (3.6)% Revenues (3.6)% Progress

72.6%

944.0 910.0

685.4 Cloud Computing Platforms +9.1 660.6 Cloud Computing Platforms +13.0 Data Networks (16.7) Data Networks (20.5) Voice Communications (19.0) Voice Communications (20.4) Solution Services +0.2 Solution Services (8.6) Others +1.6 Others +2.4

FY2013/3Q FY2014/3Q FY2013 FY2014E

Operating 23.5 Expenses 10.3 Progress (2.8)%

(1.7)% 73.0%

599.3 Personnel expenses (1.5) 589.0 830.5 Personnel expenses (2.3) 807.0 Expenses for purchase of goods (7.9) Expenses for purchase of goods (22.2) and services and other expenses and services and other expenses Depreciation expenses and loss (0.8) Depreciation expenses and loss +1.0 on disposal of assets on disposal of assets

FY2013/3Q FY2014/3Q FY2013 FY2014E

Operating

Income Progress

14.4 69.5% 10.4

(16.8)% (9.2)%

86.0 71.5 113.4 103.0

—12—

LOGO

Subsidiaries’ Results (U.S. GAAP Consolidated)

NTT DOCOMO Financial Results

(Billions of yen)

FY2014/3Q FY2014E

61.2

Operating 36.8 (1.4)% Revenues Progress

(1.1)% 75.6%

4,461.2 4,400.0 3,363.6 3,326.8

FY2013/3Q FY2014/3Q FY2013 FY2014E

Operating 128.0 Expenses +3.5%

64.7 Progress

72.7%

+2.4%

3,642.0 3,770.0 2,674.9 2,739.6

FY2013/3Q FY2014/3Q FY2013 FY2014E

Operating

Income Progress

101.5 93.2% 189.2

(14.7)% (23.1)%

688.7 587.1 819.2 630.0

—13—

LOGO

Subsidiaries’ Results (JPN GAAP Consolidated)

NTT DATA Financial Results

(Billions of yen)

FY2014/3Q FY2014E

116.2

Operating 124.5 Progress +8.6% Revenues 73.1%

+13.2%

1,343.7 1,460.0 942.5 1,067.0

FY2013/3Q FY2014/3Q FY2013 FY2014E

93.8

Operating

Expenses 101.6 Progress +7.3% +11.1% 74.1%

1,018.4 1,281.1 1,375.0 916.8

FY2013/3Q FY2014/3Q FY2013 FY2014E

Operating

Income Progress

22.8 57.2% 22.4

+89.0% +35.8%

25.7 48.5 62.5 85.0

—14—

LOGO

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

5 Major Subsidiaries

FY2013/3Q

(Billions of yen)

19.8 75.8

Pension (actuarial difference, etc.): 22.1

889.4 NTT (Holding Company): 4.6 Depreciation of engineering facilities: (18.7) 985.1 NTT URBAN DEVELOPMENT (Consolidated): 25.9 Adjustments between operating and non-NTT COMWARE: 0.9 operating items, including eliminations, etc.

NTT FINANCE (Consolidated): 14.0 Outsourcing companies (East): 5.3 Outsourcing companies (West): (5.4) Other companies: 30.5

Total operating income Total operating income of subsidiaries other than Elimination and Consolidated operating the 5 major subsidiaries (excluding the effect of income of 5 major subsidiaries U.S. GAAP dividends received by NTT (Holding Company))

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

FY2014/3Q

12.2 88.9

Pension (actuarial difference, etc.): 14.2

Depreciation of engineering facilities: (15.6) 910.9 834.2 NTT (Holding Company): 4.6 NTT URBAN DEVELOPMENT (Consolidated): 17.3 Adjustments between operating and non-operating items, including eliminations, etc.

NTT COMWARE: 1.2

NTT FINANCE (Consolidated): 15.7 Outsourcing companies (East): 6.4 Outsourcing companies (West): 4.1 Other companies: 39.3

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

—15—

LOGO

Details of Consolidated Cash Flows

Cash flows from Cash flows from FCF Cash flows from operating activities investing activities (A) + (B) financing activities (A) (B)

Billions of yen

(143.5)

+79.7

(223.2)

+60.9

2,000

1000

(1,000)

(2,000)

(1,532.7)

(1,453.0)

1,632.0

1,399.7

90.2

(53.3)

(88.9)

(28.0)

FY2013/3Q

FY2014/3Q

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

—16—

LOGO

Appendices

LOGO

Appendices

Capital Investment

(Billions of yen)

1,907.5

[1,970.0]*

1,795.7

[1,892.8]* 1,750.0 [1,890.0]*

1,301.3

[1,342.2]*

1,235.8

[1,309.0]* 1,113.3 [1,197.3]*

FY2012/3Q FY2013/3Q FY2014/3Q

FY2012 FY2013 FY2014E

118.4

82.9

64.7

245.4

249.5

540.4

66.8

109.2

95.0

246.1

246.4

472.3

98.9

95.8

74.1

213.9

191.3

439.3

Other

NIT DATA (consolidated)

NIT communications

NIT West

NIT East

NIT DOCOMO (Consolidated)

* Figures in [ ] include investments related to real estate and solar power generation operations.

—17—

LOGO

Shareholder Returns

406.5 (Billions of yen)

Share buybacks Up to

381.7 350.0

290.7

200.0

As of 150.0 Jan. 2015

94.4

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 2014.11-2015.6

180 (yen)

Dividends per share

170 160

Payout ratio

140 110 120 120

90 38.2%

37.2% 37.6%

32.3% 33.4%

31.2%

19.5% 27.5%

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014E

—18—

LOGO

Appendices

FY2014/3Q Details of Financial Results (Per Item)

Operating Fixed IP/packet : (11.5) (Billions of yen) Revenues [year-on-year +157.3] Mobile IP/packet : (28.2)

SI revenues and sales

Other : +0.2 of telecommunications equipment

Other revenues Voice related 362.3 services revenues 39.5 61.0 226.5 Systems Integration IP/packet Fixed voice communications Telecommunications services revenues

8,025.2 Mobile voice equipment 8,182.5

Fixed voice : (97.5)

Systems Integration : +307.9 Mobile voice : (129.0) Telecommunications equipment (Fixed-line) : (1.6) Telecommunications equipment (Mobile) : +55.9

FY2013/3Q FY2014/3Q

Operating [year-on-year +231.5]

Expenses

89.8 2.0

Other expenses 177.0 Personnel expenses

33.4

Expenses for purchase Depreciation

7,040.1 of goods and services 7,271.6 expenses and loss on and other expenses disposal of assets

FY2013/3Q FY2014/3Q

—19—

LOGO

Appendices

Details of Consolidated Balance Sheet

March 31, 2014 December 31, 2014

(Billions of yen)

20,284.9 20,642.3

Liabilities Liabilities Assets 9,615.7

Assets 9,334.2 [+281.5]

20,284.9 20,642.3

[+357.3] Interest-Bearing Interest-Bearing Debt Debt 4,862.4

4,200.0 [+662.4]

Liability for Employees’ Liability for Employees’ Depreciable Assets Retirement Benefits

Depreciable Assets Retirement Benefits (property, plant and 1,365.9

(property, plant and 1,327.9 [+38.0]

equipment)

Other 8,055.6 Other

8,241.9 25.9

[(186.3)] 26.6[+0.7]

Equity Equity

11,000.0 10,924.8

[+75.2]

Deferred Tax Assets

Deferred Tax

(non-current) Treasury Stock

Assets Treasury Stock

639.8 (416.1) (non-current) (156.9)

[(21.7)] [(259.2)]

661.5

—20—

LOGO

Appendices

Consolidated and Main Subsidiaries’ Financial Results for FY2014/3Q

(Billions of yen)

NTT (1)

NTT

NTT East NTT West NTT Com NTT DOCOMO NTT DATA Consolidated (Holding Company)

Non-Cons olidated Non-Cons olidate d Non-Consolidated Non-Cons olidate d Consolidated Cons olidate d

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

Operating Revenues 8,182.5 372.1 1,308.5 1,163.4 660.6 3,326.8 1,067.0

Change year-on-year 157.3 (17.1) (11.0) (8.6) (24.7) (36.8) 124.5 (% change) 2.0% (4.4)% (0.8)% (0.7)% (3.6)% (1.1)% 13.2% Forecasts for FY2014 11,010.0 412.0 1,771.0 1,582.0 910.0 4,400.0 1,460.0 (% progress) 74.3% 90.3% 73.9% 73.5% 72.6% 75.6% 73.1%

Operating Expenses 7,271.6 95.3 1,212.5 1,132.4 589.0 2,739.6 1,018.4

Change year-on-year 231.5 (4.8) (36.9) (20.6) (10.3) 64.7 101.6 (% change) 3.3% (4.9)% (3.0)% (1.8)% (1.7)% 2.4% 11.1% Forecasts for FY2014 9,915.0 140.0 1,681.0 1,547.0 807.0 3,770.0 1,375.0 (% progress) 73.3% 68.1% 72.1% 73.2% 73.0% 72.7% 74.1%

Operating Income 910.9 276.8 95.9 30.9 71.5 587.1 48.5

Change year-on-year (74.2) (12.2) 25.9 11.9 (14.4) (101.5) 22.8 (% change) (7.5)% (4.2)% 37.0% 63.2% (16.8)% (14.7)% 89.0% Forecasts for FY2014 1,095.0 272.0 90.0 35.0 103.0 630.0 85.0 (% progress) 83.2% 101.8% 106.6% 88.5% 69.5% 93.2% 57.2%

Income Before (2) 910.2 273.6 110.3 26.8 88.0 595.0 45.3

Income Taxes

Change year-on-year (113.9) (10.1) 20.4 (0.7) (14.3) (108.6) 16.9 (% change) (11.1)% (3.6)% 22.7% (2.8)% (14.0)% (15.4)% 59.5% Forecasts for FY2014 1,075.0 268.0 103.0 28.0 113.0 639.0 75.0 (% progress) 84.7% 102.1% 107.1% 96.0% 77.9% 93.1% 60.5%

(3) (4)

Net Income 449.9 561.2 70.7 16.6 57.6 381.9 21.7

Change year-on-year (34.4) 278.3 12.8 (1.8) (11.4) (48.3) 11.6 (% change) (7.1)% 98.4% 22.2% (9.8)% (16.5)% (11.2)% 114.6% Forecasts for FY2014 529.0 558.0 62.0 19.0 72.0 420.0 37.0 (% progress) 85.1% 100.6% 114.1% 87.6% 80.1% 90.9% 58.8%

(1) NTT has 920 consolidated subsidiaries and accounts for 122 companies under the equity method.

(2) “Income Before Income Taxes” for NTT (Holding Company), NTT East, NTT West, NTT Communications and NTT DATA represents their recurring profits. (3) “Net Income” for NTT Consolidated represents “Net income attributable to NTT, excluding noncontrolling interests.” (4) “Net Income” for NTT DOCOMO represents “Net income attributable to NTT DOCOMO, excluding noncontrolling interests.”

—21—

LOGO

Appendices

Calculation of 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, FLET’S Hikari, by the number of Active Subscribers to the relevant services.

In the case of NTT Group’s mobile communications business, ARPU is calculated by dividing revenue items included in operating revenues from its mobile communications business segment, such as revenues from Xi mobile phone services and FOMA 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.

For a complete discussion on the calculation of ARPU, please see the “Supplementary Data for the Nine Months Ended December 31, 2014.”

Notes:

(1) FLET’S Hikari ARPU of NTT East and NTT West is 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.

(2) 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.

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

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

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

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

(5) NTT DOCOMO‘s ARPU calculation methods have been changed from the second quarter of the fiscal year ending March 31, 2015. Accordingly, the ARPU data for the results for the three months ended Jun. 30, 2013 (from Apr. to Jun., 2013), the three months ended Sep. 30, 2013 (from Jul. to Sep., 2013), the three months ended Dec. 31, 2013 (from Oct. to Dec., 2013), the three months ended Mar. 31, 2014 (from Jan. to Mar., 2014), the year ended Mar. 31, 2014 and the three months ended Jun. 30, 2014 (from Apr. to Jun., 2014) have also been changed.

(6) Numbers 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 April to June

- 2Q Results: Sum of number of active subscribers* for each month from July to September

- 3Q Results: Sum of number of active subscribers* for each month from October to December

- 4Q Results: Sum of number of active subscribers* for each month from January to March

- Nine Month Results: Sum of number of active subscribers* for each month from April to December

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

- FY (Forecast): Sum of the sum of actual number of active subscribers at the end of each month from April to September and the average expected active number of subscribers during the second half of the fiscal year ((number of subscribers at September 30, 2014 + number of expected subscribers at March 31, 2015)/2)x6.

(7)

Numbers 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 April to June

- 2Q Results: Sum of number of active subscribers* for each month from July to September

- 3Q Results: Sum of number of active subscribers* for each month from October to December

- 4Q Results: Sum of number of active subscribers* for each month from January to March

- Nine Month Results: Sum of number of active subscribers* for each month from April to December

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

- FY (Forecast): Sum of expected number of active subscribers* for each month from April to March

(8) Forecasts for the year ending March 31, 2015 have not been changed from those announced in the financial results for the six months ended September 30, 2014.

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

—22—

(Billions of yen)

February 6, 2015

FOR IMMEDIATE RELEASE

Financial Statements for the Nine Months Ended December 31, 2014

The financial results of Nippon Telegraph and Telephone East Corporation (NTT East) for the nine months ended December 31, 2014 are presented in the following attachments.

(Attachments)

Non-Consolidated Comparative Balance Sheets

Non-Consolidated Comparative Statements of Income

Business Results (Non-Consolidated Operating Revenues)

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, 2014			December 31, 2014			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		474,554			439,305			(35,249	)
Antenna facilities		4,325			4,104			(221	)
Terminal equipment		45,756			39,394			(6,362	)
Local line facilities		862,315			845,671			(16,643	)
Long-distance line facilities		4,107			3,772			(335	)
Engineering facilities		612,405			601,418			(10,986	)
Submarine line facilities		1,421			1,186			(234	)
Buildings		438,137			420,973			(17,163	)
Construction in progress		19,885			19,660			(225	)
Other		259,440			250,303			(9,136	)
Total property, plant and equipment		2,722,349			2,625,791			(96,558	)
Intangible fixed assets		88,386			82,491			(5,894	)
Total fixed assets - telecommunications businesses		2,810,736			2,708,282			(102,453	)
Investments and other assets
Other investments and assets		213,889			212,094			(1,795	)
Allowance for doubtful accounts		(1,030	)		(956	)		74
Total investments and other assets		212,859			211,137			(1,721	)
Total fixed assets		3,023,595			2,919,419			(104,175	)
Current assets:
Cash and bank deposits		25,765			19,786			(5,978	)
Notes receivable		171			15			(155	)
Accounts receivable, trade		238,999			245,143			6,144
Supplies		33,852			36,157			2,304
Other current assets		233,804			245,785			11,981
Allowance for doubtful accounts		(622	)		(582	)		40
Total current assets		531,969			546,305			14,335

TOTAL ASSETS		3,555,565			3,465,725			(89,839	)

- 1 -


	(Millions of yen)
	March 31, 2014		December 31, 2014			Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		548,775		545,355			(3,420	)
Liability for employees’ retirement benefits		231,328		236,930			5,601
Reserve for point services		7,074		11,420			4,345
Reserve for unused telephone cards		11,082		10,086			(995	)
Allowance for environmental measures		4,511		10,740			6,228
Asset retirement obligations		1,110		1,130			20
Other long-term liabilities		9,601		9,333			(268	)
Total long-term liabilities		813,483		824,995			11,512
Current liabilities:
Current portion of long-term borrowings from parent company		127,420		7,130			(120,290	)
Accounts payable, trade		77,246		40,496			(36,749	)
Accrued taxes on income		5,746		7,654	*		1,908
Allowance for environmental measures		—		1,701			1,701
Asset retirement obligations		149		—			(149	)
Other current liabilities		362,264		373,050			10,786
Total current liabilities		572,826		430,033			(142,793	)

TOTAL LIABILITIES		1,386,310		1,255,029			(131,281	)


NET ASSETS
Shareholders’ equity:
Common stock		335,000		335,000			—
Capital surplus		1,499,726		1,499,726			—
Earned surplus		333,740		373,082			39,341
Total shareholders’ equity		2,168,467		2,207,809			39,341
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		787		2,887			2,099
Total unrealized gains (losses), translation adjustments, and others		787		2,887			2,099

TOTAL NET ASSETS		2,169,255		2,210,696			41,441

TOTAL LIABILITIES AND NET ASSETS		3,555,565		3,465,725			(89,839	)


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)
	Nine months ended December 31, 2013			Nine months ended December 31, 2014			Increase (Decrease)			Year ended March 31, 2014
Telecommunications businesses:
Operating revenues		1,224,588			1,217,949	*¹		(6,639	)		1,630,523
Operating expenses		1,164,766			1,133,901	*¹		(30,864	)		1,577,823
Operating income from telecommunications businesses		59,822			84,047			24,225			52,699

Supplementary businesses:
Operating revenues		94,987			90,551			(4,436	)		143,286
Operating expenses		84,799			78,669			(6,130	)		129,271
Operating income from supplementary businesses		10,187			11,881			1,693			14,014
Operating income		70,009			95,928			25,919			66,714

Non-operating revenues:
Interest income		52			44			(8	)		77
Dividends received		3,674			6,396			2,722			3,690
Lease and rental income		33,331			—			(33,331	)		44,296
Gains on sales of fixed assets		2,486			8,390			5,904			5,973
Miscellaneous income		2,130			6,805			4,675			3,991
Total non-operating revenues		41,674			21,636			(20,037	)		58,027

Non-operating expenses:
Interest expenses		5,508			4,516			(992	)		7,203
Lease and rental expenses		15,532			—			(15,532	)		23,253
Miscellaneous expenses		724			2,705			1,981			2,536
Total non-operating expenses		21,765			7,221			(14,543	)		32,993
Recurring profit		89,918			110,343			20,425			91,749
Special losses		3,382			7,930			4,547			8,292
Income before income taxes		86,535			102,413			15,878			83,457
Income taxes		28,659	*²		31,664	*²		3,005			29,501
Net income		57,876			70,748			12,872			53,956


Notes:		*1 “Lease and rental income” and “lease and rental expenses,” which were previously included under non-operating revenues and non-operating expenses, respectively, in the fiscal year ended March 31, 2014, have been reclassified as telecommunications businesses operating revenues and operating expenses for the nine months ended December 31, 2014.
		Telecommunications operating revenues attributable to lease and rental income and operating expenses attributable to lease and rental expenses were 32,507 million yen and 13,770 million yen, respectively, for the nine months ended December 31, 2014.
		*2 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)
	Nine months ended December 31, 2013		Nine months ended December 31, 2014		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2014
Voice transmission services revenues (excluding IP services revenues)		393,909		356,307		(37,602	)		(9.5	)		518,346
Monthly charge revenues*		286,725		262,335		(24,390	)		(8.5	)		378,089
Call rates revenues*		32,244		27,410		(4,834	)		(15.0	)		42,044
Interconnection call revenues*		48,354		42,141		(6,213	)		(12.8	)		63,210
IP services revenues		630,705		629,333		(1,372	)		(0.2	)		841,334
Leased circuit services revenues (excluding IP services revenues)		88,803		84,746		(4,057	)		(4.6	)		117,286
Telegram services revenues		11,080		10,433		(647	)		(5.8	)		14,951
Other telecommunications services revenues		100,087		137,128		37,040			37.0			138,604

Telecommunications total revenues		1,224,588		1,217,949		(6,639	)		(0.5	)		1,630,523

Supplementary business total revenues		94,987		90,551		(4,436	)		(4.7	)		143,286

Total operating revenues		1,319,575		1,308,500		(11,075	)		(0.8	)		1,773,809

*	Partial listing only

- 4 -

February 6, 2015

FOR IMMEDIATE RELEASE

Financial Statements for the Nine Months Ended December 31, 2014

The financial results of Nippon Telegraph and Telephone West Corporation (NTT West) for the nine months ended December 31, 2014 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)

For inquiries, please contact:

Takashi Sasaki or Ryosuke Yamashita

Accounting Section, Finance Division

Nippon Telegraph and Telephone West Corporation

Tel: +81-6-4793-3141

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

1. Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2014			December 31, 2014			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		446,003			415,061			(30,942	)
Antenna facilities		6,212			6,158			(54	)
Terminal equipment		18,194			17,833			(361	)
Local line facilities		956,384			967,615			11,231
Long-distance line facilities		2,432			2,231			(201	)
Engineering facilities		551,357			541,589			(9,768	)
Submarine line facilities		3,067			3,427			359
Buildings		363,292			347,913			(15,378	)
Construction in progress		17,498			18,419			920
Other		224,347			218,982			(5,365	)
Total property, plant and equipment		2,588,791			2,539,231			(49,560	)
Intangible fixed assets		74,244			69,690			(4,554	)
Total fixed assets - telecommunications businesses		2,663,036			2,608,921			(54,114	)
Investments and other assets
Other investments and assets		161,563			154,987			(6,576	)
Allowance for doubtful accounts		(551	)		(575	)		(24	)
Total investments and other assets		161,012			154,411			(6,600	)
Total fixed assets		2,824,048			2,763,333			(60,715	)

Current assets:
Cash and bank deposits		33,273			23,902			(9,371	)
Notes receivable		443			126			(317	)
Accounts receivable, trade		201,606			193,464			(8,141	)
Supplies		35,234			32,766			(2,467	)
Other current assets		170,958			146,697			(24,261	)
Allowance for doubtful accounts		(518	)		(469	)		48
Total current assets		440,998			396,487			(44,510	)

TOTAL ASSETS		3,265,047			3,159,820			(105,226	)

– 1 –


	(Millions of yen)
	March 31, 2014		December 31, 2014			Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		884,427		801,627			(82,800	)
Liability for employees’ retirement benefits		228,337		234,201			5,863
Reserve for point services		7,178		7,123			(54	)
Reserve for unused telephone cards		10,480		9,538			(941	)
Allowance for environmental measures		5,721		13,694			7,972
Asset retirement obligations		342		344			2
Other long-term liabilities		7,425		6,415			(1,009	)
Total long-term liabilities		1,143,913		1,072,945			(70,967	)
Current liabilities:
Current portion of long-term borrowings from parent company		157,370		176,460			19,090
Accounts payable, trade		61,883		43,651			(18,232	)
Short-term borrowings		72,000		62,000			(10,000	)
Accrued taxes on income		1,133		380	*		(753	)
Allowance for environmental measures		2,370		642			(1,727	)
Asset retirement obligations		4		—			(4	)
Other current liabilities		324,630		302,426			(22,204	)
Total current liabilities		619,391		585,559			(33,832	)

TOTAL LIABILITIES		1,763,305		1,658,505			(104,799	)


NET ASSETS
Shareholders’ equity:
Common stock		312,000		312,000			—
Capital surplus		1,170,054		1,170,054			—
Earned surplus		19,272		18,649			(623	)
Total shareholders’ equity		1,501,326		1,500,703			(623	)
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		415		611			196
Total unrealized gains (losses), translation adjustments, and others		415		611			196

TOTAL NET ASSETS		1,501,742		1,501,315			(426	)

TOTAL LIABILITIES AND NET ASSETS		3,265,047		3,159,820			(105,226	)


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)
	Nine months ended December 31, 2013			Nine months ended December 31, 2014			Increase (Decrease)			Year ended March 31, 2014
Telecommunications businesses:
Operating revenues		1,070,392			1,062,975	*¹		(7,416	)		1,425,666
Operating expenses		1,061,231			1,042,326	*¹		(18,904	)		1,423,424
Operating income from telecommunications businesses		9,160			20,648			11,487			2,241

Supplementary businesses:
Operating revenues		101,681			100,443			(1,238	)		163,934
Operating expenses		91,862			90,124			(1,738	)		149,795
Operating income from supplementary businesses		9,818			10,318			500			14,138
Operating income		18,978			30,967			11,988			16,379

Non-operating revenues:
Interest income		16			3			(12	)		17
Dividends received		1,900			1,353			(547	)		1,902
Lease and rental income		27,055			—			(27,055	)		35,907
Gains on sales of fixed assets		1,378			2,355			977			1,456
Miscellaneous income		1,493			1,475			(18	)		2,397

Total non-operating revenues		31,844			5,188			(26,655	)		41,680
Non-operating expenses:
Interest expenses		10,147			8,805			(1,342	)		13,212
Lease and rental expenses		11,647			—			(11,647	)		16,755
Miscellaneous expenses		1,381			464			(917	)		2,030
Total non-operating expenses		23,176			9,269			(13,906	)		31,998
Recurring profit		27,646			26,886			(760	)		26,061
Special losses		6,087			7,972			1,885			6,087
Income before income taxes		21,559			18,913			(2,646	)		19,973
Income taxes		3,109	*²		2,275	*²		(833	)		1,266
Net income		18,450			16,637			(1,812	)		18,707

Notes:

*1 “Lease and rental income” and “lease and rental expenses,” which were previously included under non-operating revenues and non-operating expenses, respectively, in the fiscal year ended March 31, 2014, have been reclassified as telecommunications businesses operating revenues and operating expenses for the nine months ended December 31, 2014. Telecommunications operating revenues attributable to lease and rental income and operating expenses attributable to lease and rental expenses were 26,417 million yen and 11,861 million yen, respectively, for the nine months ended December 31, 2014.

*2 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)
	Nine months ended December 31, 2013		Nine months ended December 31, 2014		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2014
Voice transmission services revenues (excluding IP services revenues)		397,504		359,546		(37,958	)		(9.5	)		523,300
Monthly charge revenues*		287,690		263,574		(24,116	)		(8.4	)		379,607
Call rates revenues*		29,876		25,586		(4,289	)		(14.4	)		38,890
Interconnection call revenues*		53,972		46,999		(6,973	)		(12.9	)		70,441
IP services revenues		502,053		512,546		10,492			2.1			671,614
Leased circuit services revenues (excluding IP services revenues)		78,617		77,779		(838	)		(1.1	)		104,361
Telegram services revenues		12,751		11,477		(1,274	)		(10.0	)		17,121
Other telecommunications services revenues		79,465		101,626		22,161			27.9			109,269

Telecommunications total revenues		1,070,392		1,062,975		(7,416	)		(0.7	)		1,425,666

Supplementary business total revenues		101,681		100,443		(1,238	)		(1.2	)		163,934

Total operating revenues		1,172,073		1,163,418		(8,654	)		(0.7	)		1,589,600

*	Partial listing only

– 4 –

February 6, 2015

FOR IMMEDIATE RELEASE

NTT Com Announces Financial Results for the Nine Months Ended December 31, 2014

TOKYO, JAPAN — NTT Communications Corporation (NTT Com) announced today its financial results for the nine months ended December 31, 2014. 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.	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 the leading global tier-1 IP network, the Arcstar Universal One™ VPN network reaching 196 countries/regions, and 130 secure data centers worldwide. NTT Communications’ solutions leverage the global resources of NTT Group companies including Dimension Data, NTT DOCOMO and NTT DATA.

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

For more information

(Mr.) 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, 2014			December 31, 2014			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		139,476			139,514			37
Antenna facilities		1,682			1,608			(73	)
Terminal equipment		736			845			109
Local line facilities		748			695			(52	)
Long-distance line facilities		6,778			6,111			(666	)
Engineering facilities		53,122			51,958			(1,163	)
Submarine line facilities		16,018			14,054			(1,964	)
Buildings		177,326			179,481			2,155
Construction in progress		24,265			21,649			(2,616	)
Other		84,762			80,848			(3,913	)
Total property, plant and equipment		504,916			496,768			(8,147	)
Intangible fixed assets		87,002			88,835			1,832
Total fixed assets - telecommunications businesses		591,918			585,603			(6,314	)
Investments and other assets
Investment securities		162,857			192,992			30,134
Investments in subsidiaries and affiliated companies		277,600			294,461			16,861
Other investments and assets		40,997			42,658			1,661
Allowance for doubtful accounts		(218	)		(199	)		19
Total investments and other assets		481,237			529,913			48,676
Total fixed assets		1,073,156			1,115,517			42,361

Current assets:
Cash and bank deposits		17,218			19,400			2,181
Notes receivable		266			22			(244	)
Accounts receivable, trade		163,644			167,073			3,429
Supplies		10,201			10,926			725
Other current assets		102,455			79,306			(23,149	)
Allowance for doubtful accounts		(1,582	)		(1,420	)		161
Total current assets		292,204			275,308			(16,896	)

TOTAL ASSETS		1,365,361			1,390,826			25,464

– 1 –


	(Millions of yen)
	March 31, 2014		December 31, 2014			Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		146,720		95,040			(51,680	)
Liability for employees’ retirement benefits		86,833		86,773			(59	)
Reserve for point services		3,063		2,513			(550	)
Reserve for unused telephone cards		4,637		4,220			(416	)
Asset retirement obligations		1,467		1,514			46
Other long-term liabilities		17,175		26,423			9,247
Total long-term liabilities		259,897		216,484			(43,412	)
Current liabilities:
Current portion of long-term borrowings from parent company		3,360		53,360			50,000
Accounts payable, trade		37,246		20,434			(16,812	)
Short-term borrowings		8,736		23,423			14,686
Accrued taxes on income		6,190		2,813	*		(3,376	)
Allowance for losses on construction		1,188		823			(365	)
Asset retirement obligations		—		27			27
Other current liabilities		184,394		167,335			(17,058	)
Total current liabilities		241,116		268,217			27,101

TOTAL LIABILITIES		501,014		484,702			(16,311	)


NET ASSETS
Shareholders’ equity:
Common stock		211,763		211,763			—
Capital surplus		131,615		131,615			—
Earned surplus		446,563		468,568			22,005
Total shareholders’ equity		789,942		811,947			22,005
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		74,404		94,175			19,771
Total unrealized gains (losses), translation adjustments, and others		74,404		94,175			19,771

TOTAL NET ASSETS		864,347		906,123			41,776

TOTAL LIABILITIES AND NET ASSETS		1,365,361		1,390,826			25,464

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)
	Nine months ended December 31, 2013			Nine months ended December 31, 2014			Increase (Decrease)			Year ended March 31, 2014
Telecommunications businesses:
Operating revenues		560,547			527,103			(33,443	)		742,669
Operating expenses		477,337			463,180			(14,156	)		636,374
Operating income from telecommunications businesses		83,209			63,922			(19,287	)		106,295

Supplementary businesses:
Operating revenues		124,883			133,534			8,650			201,359
Operating expenses		122,045			125,858			3,813			194,188
Operating income from supplementary businesses		2,838			7,675			4,837			7,171
Operating income		86,048			71,598			(14,450	)		113,466

Non-operating revenues:
Interest income		221			166			(55	)		280
Dividends received		10,091			12,933			2,841			10,244
Lease and rental income		9,688			9,006			(681	)		12,987
Miscellaneous income		3,342			373			(2,968	)		3,987
Total non-operating revenues		23,343			22,479			(864	)		27,499

Non-operating expenses:
Interest expenses		1,158			1,206			47			1,569
Lease and rental expenses		4,237			4,452			214			5,731
Miscellaneous expenses		1,641			416			(1,225	)		1,081
Total non-operating expenses		7,038			6,074			(963	)		8,382
Recurring profit		102,353			88,002			(14,351	)		132,583
Special profits		16,169			—			(16,169	)		16,169
Special losses		4,927			—			(4,927	)		6,019
Income before income taxes		113,595			88,002			(25,593	)		142,733
Income taxes		44,507	*		30,324	*		(14,183	)		53,774
Net income		69,087			57,677			(11,410	)		88,959

Note:

– 3 –

III. Business Results (Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2013		Nine months ended December 31, 2014		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2014
Cloud Computing Platforms		36,663		45,799		9,135			24.9			52,922
Data Networks		295,277		278,477		(16,799	)		(5.7	)		391,505
Voice Communications		224,543		205,502		(19,041	)		(8.5	)		296,438
Applications & Content		27,100		28,662		1,562			5.8			36,906
Solution Services		90,228		90,514		285			0.3			150,651
Others		11,616		11,681		64			0.6			15,604

Total operating revenues		685,430		660,637		(24,793	)		(3.6	)		944,028

* Details of business results are represented by business line from the fiscal year ended March 31, 2014. Business results per item are shown below. (Reference) Business Results (Per item) (Based on accounting principles generally accepted in Japan)
	(Millions of yen)
	Nine months ended December 31, 2013		Nine months ended December 31, 2014		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2014
Voice transmission services revenues (excluding IP services revenues)		206,625		187,091		(19,533	)		(9.5	)		272,179
IP services revenues		276,276		267,238		(9,038	)		(3.3	)		367,015
Open computer network services revenues*		115,371		114,436		(934	)		(0.8	)		153,580
VPN services revenues*		119,790		114,049		(5,741	)		(4.8	)		159,024
Data communications revenues (excluding IP services revenues)		46,569		40,051		(6,517	)		(14.0	)		61,232
Leased circuit services revenues*		34,032		27,880		(6,151	)		(18.1	)		44,628
Solution services revenues		136,902		148,142		11,239			8.2			217,746
Others		19,056		18,113		(943	)		(4.9	)		25,854

Total operating revenues		685,430		660,637		(24,793	)		(3.6	)		944,028

*	Partial listing only

– 4 –

IV. Financial Results of NTT Communications Group


	(Millions of yen)
	Nine months ended December 31, 2013		Nine months ended December 31, 2014		Increase (Decrease)			Percent Increase (Decrease)
Operating revenues		888,444		912,051		23,607			2.7
Operating expenses		791,342		823,344		32,002			4.0
Operating income		97,102		88,707		(8,395	)		(8.6	)

– 5 –

February 6, 2015

Nippon Telegraph and Telephone Corporation

Supplementary Data for

the Nine Months Ended December 31, 2014

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, 2014		B As of Jun. 30, 2014		C As of Sept. 30, 2014		D As of Dec. 31, 2014								E As of Mar. 31, 2015 (Forecast)⁽⁷⁾
							F										G
									*Change*			*Progress*					*Change*
									*D-A*			*F/G*					*E-A*
Telephone Subscriber Lines⁽¹⁾		23,000		22,535		22,108		21,697		(1,302	)		69.3	%		21,120		(1,880	)
NTT East		11,272		11,057		10,860		10,673		(600	)		64.5	%		10,342		(930	)
NTT West		11,727		11,478		11,248		11,025		(702	)		73.9	%		10,777		(950	)
INS-Net⁽²⁾		3,366		3,283		3,203		3,133		(233	)		72.8	%		3,046		(320	)
NTT East		1,719		1,675		1,633		1,597		(122	)		71.8	%		1,549		(170	)
NTT West		1,647		1,608		1,570		1,536		(111	)		74.0	%		1,497		(150	)
Telephone Subscriber Lines + INS-Net		26,366		25,818		25,311		24,831		(1,535	)		69.8	%		24,166		(2,200	)
NTT East		12,992		12,732		12,493		12,270		(722	)		65.6	%		11,892		(1,100	)
NTT West		13,374		13,086		12,819		12,561		(813	)		74.0	%		12,274		(1,100	)
Public Telephones		195,514		193,152		189,965		187,238		(8,276	)		71.3	%		183,914		(11,600	)
NTT East		93,424		92,445		91,223		89,889		(3,535	)		62.0	%		87,724		(5,700	)
NTT West		102,090		100,707		98,742		97,349		(4,741	)		80.4	%		96,190		(5,900	)
FLET’S ISDN		109		105		101		98		(11	)		82.2	%		96		(13	)
NTT East		48		46		44		43		(5	)		73.5	%		41		(7	)
NTT West		61		59		57		55		(6	)		92.4	%		55		(6	)
FLET’S ADSL		1,483		1,398		1,333		1,275		(208	)		74.2	%		1,203		(280	)
NTT East		667		628		601		574		(92	)		61.7	%		517		(150	)
NTT West		816		770		732		701		(115	)		88.7	%		686		(130	)
FLET’S Hikari⁽³⁾		18,050		18,319		18,455		18,617		567			81.0	%		18,750		700
NTT East		10,187		10,316		10,347		10,397		210			69.8	%		10,487		300
NTT West		7,863		8,003		8,108		8,220		357			89.3	%		8,263		400
FLET’S Hikari LIGHT		875		955		1,020		1,073		198			88.0	%		1,100		225
NTT East		542		587		618		643		101			134.6	%		617		75
NTT West		333		369		402		430		97			64.7	%		483		150
Hikari Denwa		16,256		16,507		16,705		16,910		654			76.9	%		17,106		850
NTT East		8,694		8,811		8,884		8,963		269			59.7	%		9,144		450
NTT West		7,562		7,695		7,821		7,947		385			96.3	%		7,962		400
Conventional Leased Circuit Services		250		248		246		244		(6	)		53.5	%		239		(11	)
NTT East		122		121		120		119		(3	)		67.9	%		117		(5	)
NTT West		128		127		126		125		(2	)		41.6	%		122		(6	)
High Speed Digital Services		144		139		135		133		(11	)		274.1	%		140		(4	)
NTT East		74		72		70		69		(5	)		178.0	%		71		(3	)
NTT West		69		67		65		64		(6	)		562.3	%		68		(1	)
NTT Group Major ISPs⁽⁴⁾		11,466		11,495		11,521		11,561		95			43.7	%		11,683		217
OCN		8,155		8,196		8,222		8,259		105			57.4	%		8,337		182
Plala		2,974		2,960		2,957		2,960		(14	)		—			3,000		26
Hikari TV		2,823		2,877		2,927		2,971		148			39.3	%		3,200		377
FLET’S TV Transmission Services		1,161		1,209		1,256		1,304		143			77.2	%		1,346		185
NTT East		802		825		844		864		62			69.0	%		892		90
NTT West		359		384		412		440		81			85.0	%		454		95
Mobile⁽⁵⁾		63,105		63,566		64,295		65,274		2,169			55.7	%		67,000		3,895
Xi		21,965		24,043		26,215		28,298		6,332			81.9	%		29,700		7,735
FOMA⁽⁶⁾		41,140		39,523		38,080		36,976		(4,164	)		108.4	%		37,300		(3,840	)
sp-mode		23,781		24,685		25,742		26,746		2,964			70.3	%		28,000		4,219
i-mode		26,415		25,362		24,320		23,396		(3,019	)		81.3	%		22,700		(3,715	)


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 (including “Xi” and “FOMA”) service subscribers includes communication module 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 FOMA service subscribers and, as a result, are also included in the number of Mobile service subscribers.

	(7)	Forecasts for the year ending March 31, 2015 have not been changed from those announced in the financial results for the six months ended September 30, 2014.

- 1 -

2.	Number of Employees


	(Persons)
	A As of Dec. 31, 2013		B As of Dec. 31, 2014					C As of Mar. 31, 2015 (Forecast)⁽⁴⁾
					*Change*
					*B-A*
NTT Consolidated		233,950		248,450		14,500			243,200
Core Group Companies
NTT (Holding Company)		2,900		2,900		0			2,850
NTT East		5,800		5,150		(650	)		5,050
NTT West		5,000		4,700		(300	)		4,600
NTT Communications		6,950		6,750		(200	)		6,600
NTT DOCOMO (Consolidated)		24,600		26,150		1,550			26,150
NTT DATA (Consolidated)		64,700		76,550		11,850			77,750
(Reference) Outsourcing Companies
East Outsourcing Companies⁽¹⁾⁽²⁾		30,850		29,600		(1,250	)		26,850
West Outsourcing Companies⁽³⁾		31,950		29,200		(2,750	)		26,550


Notes:	(1	)	Figures for East Outsourcing Companies under “A. As of Dec. 31, 2013” include employees from the consolidated prefectural outsourcing companies (NTT EAST-TOKYO and others), NTT-ME and NTT EAST SOLUTIONS.

	(2	)	NTT revised the scope of the term “East Outsourcing Companies” as of July 1, 2014, due to a reorganization within NTT East Group. As a result of this change, figures for East Outsourcing Companies under “B. As of Dec. 31, 2014” and “C. As of Mar. 31, 2015 (Forecast)” include employees from the consolidated regional subsidiaries (NTT EAST-MINAMIKANTO and others), NTT-ME and NTT EAST SERVICE. Further, the number of employees of NTT EAST SERVICE includes 750 employees who were transferred from NTT SOLCO, NTT HOKKAIDO TELEMART and Telwel East Japan, in addition to the employees who were transferred from the consolidated prefectural outsourcing companies. In addition, NTT EAST SOLUTIONS has since merged into NTT EAST-MINAMIKANTO.

	(3	)	Figures for West Outsourcing Companies under “A. As of Dec. 31, 2013”, “B. As of Dec. 31, 2014” and “C. As of Mar. 31, 2015 (Forecast)” include employees from NTT BUSINESS SOLUTIONS, NTT MARKETING ACT, NTT NEOMEIT, NTT FIELDTECHNO and NTT BUSINESS ASSOCIE WEST.

	(4	)	Forecasts for the year ending March 31, 2015 have not been changed from those announced in the financial results for the six months ended September 30, 2014.

3.	Capital Investment


	(Billions of yen)
	A Nine Months Ended Dec. 31, 2013		B Nine Months Ended Dec. 31, 2014								C Year Ending Mar. 31, 2015 (Forecast)⁽²⁾
					*Change*			*Progress*
					*B-A*			*B/C*
NTT Consolidated⁽¹⁾		1,309.0		1,197.3		(111.7	)		63.4	%		1,890.0
Core Group Companies
NTT (Holding Company)		15.7		8.1		(7.5	)		37.1	%		22.0
NTT East		246.1		191.3		(54.7	)		59.8	%		320.0
NTT West		246.4		213.9		(32.5	)		66.8	%		320.0
NTT Communications		95.0		74.1		(20.8	)		61.8	%		120.0
NTT DOCOMO (Consolidated)		472.3		439.3		(33.0	)		63.7	%		690.0
NTT DATA (Consolidated)		109.2		95.8		(13.3	)		68.5	%		140.0

- 2 -

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


	(Billions of yen)
	A Nine Months Ended Dec. 31, 2013		B Nine Months Ended Dec. 31, 2014								C Year Ending Mar. 31, 2015 (Forecast)⁽¹⁾
					*Change*			*Progress*
					*B-A*			*B/C*
NTT Consolidated (US GAAP)
Operating Revenues		8,025.2		8,182.5		157.3			74.3	%		11,010.0
Fixed Voice Related Services		1,184.8		1,087.3		(97.5	)		—			—
Mobile Voice Related Services		789.5		660.6		(129.0	)		—			—
IP/Packet Communications Services		2,789.6		2,750.1		(39.5	)		—			—
Sales of Telecommunications Equipment		740.1		794.4		54.3			—			—
System Integration		1,585.6		1,893.5		307.9			—			—
Other		935.7		996.7		61.0			—			—
Operating Expenses		7,040.1		7,271.6		231.5			73.3	%		9,915.0
Cost of Services (excluding items shown separately below)		1,720.4		1,736.1		15.7			—			—
Cost of Equipment Sold (excluding items shown separately below)		646.9		706.8		59.9			—			—
Cost of System Integration (excluding items shown separately below)		1,147.2		1,323.7		176.6			—			—
Depreciation and Amortization		1,394.9		1,365.3		(29.7	)		—			—
Impairment Loss		0.2		1.6		1.4			—			—
Selling, General and Administrative Expenses		2,127.6		2,138.1		10.5			—			—
Write-Down of Goodwill and Other Intangible Assets		3.0		—		(3.0	)		—			—
Operating Income		985.1		910.9		(74.2	)		83.2	%		1,095.0
Income Before Income Taxes		1,024.1		910.2		(113.9	)		84.7	%		1,075.0
Net Income Attributable to NTT		484.3		449.9		(34.4	)		85.1	%		529.0
(Ref.) Details of “Cost of Services,” “Cost of Equipment Sold,” “Cost of System Integration” and “Selling, General and Administrative Expenses”
Personnel		1,603.2		1,693.0		89.8			—			—
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		3,753.2		3,930.2		177.0			—			—
Loss on Disposal of Property, Plant and Equipment		117.0		113.3		(3.7	)		—			—
Other Expenses		168.6		168.2		(0.4	)		—			—
Total		5,642.0		5,904.7		262.7			—			—
NTT (Holding Company) (JPN GAAP)
Operating Revenues		389.2		372.1		(17.1	)		90.3	%		412.0
Operating Expenses		100.2		95.3		(4.8	)		68.1	%		140.0
Operating Income		289.0		276.8		(12.2	)		101.8	%		272.0
Non-Operating Revenues		25.7		22.8		(2.9	)		71.3	%		32.0
Non-Operating Expenses		31.0		26.0		(4.9	)		72.3	%		36.0
Recurring Profit		283.7		273.6		(10.1	)		102.1	%		268.0
Net Income		282.9		561.2		278.3			100.6	%		558.0


Note:			(1	)		Forecasts for the year ending March 31, 2015 have not been changed from those announced in the financial results for the six months ended September 30, 2014.

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


	(Billions of yen)
	A Nine Months Ended Dec. 31, 2013		B Nine Months Ended Dec. 31, 2014								C Year Ending Mar. 31, 2015 (Forecast)⁽⁴⁾
					*Change*			*Progress*
					*B-A*			*B/C*
NTT East (JPN GAAP)
Operating Revenues⁽³⁾		1,319.5		1,308.5		(11.0	)		73.9	%		1,771.0
Voice Transmission Services (excluding IP)⁽¹⁾		393.9		356.3		(37.6	)		76.8	%		464.0
IP Services⁽²⁾		630.7		629.3		(1.3	)		74.9	%		840.0
Leased Circuit (excluding IP)		88.8		84.7		(4.0	)		73.1	%		116.0
Telegraph		11.0		10.4		(0.6	)		74.5	%		14.0
Other		100.0		137.1		37.0			67.6	%		337.0
Supplementary Business		94.9		90.5		(4.4	)
Operating Expenses⁽³⁾		1,249.5		1,212.5		(36.9	)		72.1	%		1,681.0
Personnel		80.1		74.0		(6.0	)		72.6	%		102.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		813.5		782.7		(30.7	)		71.6	%		1,093.0
Depreciation and Amortization		273.6		275.1		1.5			75.8	%		363.0
Loss on Disposal of Property, Plant and Equipment		28.0		25.8		(2.1	)		52.8	%		49.0
Taxes and Public Dues		54.2		54.7		0.5			73.9	%		74.0
Operating Income		70.0		95.9		25.9			106.6	%		90.0
Non-Operating Revenues		41.6		21.6		(20.0	)		98.3	%		22.0
Non-Operating Expenses		21.7		7.2		(14.5	)		80.2	%		9.0
Recurring Profit		89.9		110.3		20.4			107.1	%		103.0
Net Income		57.8		70.7		12.8			114.1	%		62.0
NTT West (JPN GAAP)
Operating Revenues⁽³⁾		1,172.0		1,163.4		(8.6	)		73.5	%		1,582.0
Voice Transmission Services (excluding IP)⁽¹⁾		397.5		359.5		(37.9	)		76.0	%		473.0
IP Services⁽²⁾		502.0		512.5		10.4			74.8	%		685.0
Leased Circuit (excluding IP)		78.6		77.7		(0.8	)		72.7	%		107.0
Telegraph		12.7		11.4		(1.2	)		76.5	%		15.0
Other		79.4		101.6		22.1			66.9	%		302.0
Supplementary Business		101.6		100.4		(1.2	)
Operating Expenses⁽³⁾		1,153.0		1,132.4		(20.6	)		73.2	%		1,547.0
Personnel		73.9		72.0		(1.9	)		72.8	%		99.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		748.2		731.4		(16.7	)		72.8	%		1,005.0
Depreciation and Amortization		248.9		248.0		(0.9	)		75.4	%		329.0
Loss on Disposal of Property, Plant and Equipment		32.6		30.8		(1.7	)		65.7	%		47.0
Taxes and Public Dues		49.2		49.9		0.7			74.6	%		67.0
Operating Income		18.9		30.9		11.9			88.5	%		35.0
Non-Operating Revenues		31.8		5.1		(26.6	)		74.1	%		7.0
Non-Operating Expenses		23.1		9.2		(13.9	)		66.2	%		14.0
Recurring Profit		27.6		26.8		(0.7	)		96.0	%		28.0
Net Income		18.4		16.6		(1.8	)		87.6	%		19.0


Notes:	(1)	Operating Revenues from Voice Transmission Services (excluding IP) of NTT East and NTT West for the nine months ended December 31, 2014 include monthly charges, call charges and interconnection charges of 262.3 billion yen, 27.4 billion yen and 42.1 billion yen for NTT East, and 263.5 billion yen, 25.5 billion yen and 46.9 billion yen for NTT West, respectively.

	(2)	Operating Revenues from IP Services of NTT East and NTT West for the nine months ended December 31, 2014 include “FLET’S Hikari” and “Hikari Denwa” charges (including monthly charges, call charges and connection device charges) of 348.7 billion yen and 138.4 billion yen for NTT East, and 287.3 billion yen and 115.5 billion yen for NTT West, respectively. “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.

	(3)	NTT East and NTT West revised their respective allocations of revenues and expenses from real estate leases from Non-Operating Revenues and Non-Operating Expenses to Operating Revenues and Operating Expenses, respectively, as of the beginning of the fiscal year ending March 31, 2015. As a result, Operating Revenues from real estate leases of 44.0 billion yen and 32.0 billion yen are included in NTT East’s and NTT West’s forecast figures, respectively, for the fiscal year ending March 31, 2015, and Operating Expenses from real estate leases of 24.0 billion yen and 17.0 billion yen are included in NTT East’s and NTT West’s forecast figures, respectively, for the fiscal year ending March 31, 2015. Further, Operating Revenues from real estate leases of 32.5 billion yen and 26.4 billion yen are included in NTT East’s and NTT West’s figures, respectively, for the nine months ended December 31, 2014, and Operating Expenses from real estate leases of 13.7 billion yen and 11.8 billion yen are included in NTT East’s and NTT West’s figures, respectively, for the nine months ended December 31, 2014.

	(4)	Forecasts for the year ending March 31, 2015 have not been changed from those announced in the financial results for the six months ended September 30, 2014.

- 4 -

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


	(Billions of yen)
	A Nine Months Ended Dec. 31, 2013		B Nine Months Ended Dec. 31, 2014								C Year Ending Mar. 31, 2015 (Forecast)⁽⁶⁾
					*Change*			*Progress*
					*B-A*			*B/C*
NTT Communications (JPN GAAP)
Operating Revenues⁽¹⁾		685.4		660.6		(24.7	)		72.6	%		910.0
Cloud Computing Platforms		36.6		45.7		9.1			69.4	%		66.0
Data Networks		295.2		278.4		(16.7	)		75.1	%		371.0
Voice Communications		224.5		205.5		(19.0	)		74.5	%		276.0
Applications & Content		27.1		28.6		1.5			71.7	%		40.0
Solution Services		90.2		90.5		0.2			63.7	%		142.0
Others		11.6		11.6		0.0			77.9	%		15.0
Operating Expenses		599.3		589.0		(10.3	)		73.0	%		807.0
Personnel		60.8		59.3		(1.5	)		75.1	%		79.0
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses		294.0		296.0		1.9			72.7	%		608.0
Communication Network Charges		155.7		145.7		(9.9	)
Depreciation and Amortization		77.4		77.0		(0.3	)		75.5	%		102.0
Loss on Disposal of Property, Plant and Equipment		2.3		2.1		(0.2	)		35.5	%		6.0
Taxes and Public Dues		8.9		8.7		(0.1	)		72.7	%		12.0
Operating Income		86.0		71.5		(14.4	)		69.5	%		103.0
Non-Operating Revenues		23.3		22.4		(0.8	)		97.7	%		23.0
Non-Operating Expenses		7.0		6.0		(0.9	)		46.7	%		13.0
Recurring Profit		102.3		88.0		(14.3	)		77.9	%		113.0
Net Income		69.0		57.6		(11.4	)		80.1	%		72.0
Reference (Operating Revenues)⁽¹⁾		685.4		660.6		(24.7	)		72.6	%		910.0
Voice Transmission Services (excluding IP)		206.6		187.0		(19.5	)		—			—
IP Services		276.2		267.2		(9.0	)		—			—
Data Transmission Services (excluding IP)		46.5		40.0		(6.5	)		—			—
Leased Circuit		34.0		27.8		(6.1	)		—			—
Solutions Business		136.9		148.1		11.2			—			—
Other		19.0		18.1		(0.9	)		—			—
Dimension Data (IFRS)⁽²⁾⁽³⁾
Operating Revenues		425.6		534.8		109.2			72.8	%		735.0
Operating Expenses⁽⁴⁾		413.5		525.6		112.2			72.9	%		721.5
Operating Income⁽⁵⁾		12.1		9.2		(3.0	)		67.9	%		13.5
Net Income Attributable to Dimension Data		8.1		6.1		(2.0	)		—			—


Notes:	(1)	NTT Communications has revised certain of its line items from the year ended March 31, 2014. Operating Revenues figures for “A. Nine Months Ended Dec. 31, 2013” and “B. Nine Months Ended Dec. 31, 2014” using line items used prior to the year ended March 31, 2014 are also provided for reference under “Reference (Operating Revenues).” The following are the main services included in each of the new line items: — Cloud Computing Platforms: “Data center service” and “Private Cloud (Enterprise Cloud, etc.)” — Data Networks: “Closed network service (Arcstar Universal One, etc.)” and “Open network service (OCN, etc.)” — Voice Communications: “Telephone service” and “VoIP service (050 plus, etc.)” — Applications & Content: “Application service (Mail service, etc.)” — Solution Services: “System integration service”

	(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 nine months ended September 30, 2013 are stated under “A. Nine Months Ended Dec. 30, 2013,” Dimension Data’s financial results for the nine months ended September 30, 2014 are stated under “B. Nine Months Ended Dec. 31, 2014” and Dimension Data’s forecasts for the twelve months ended December 31, 2014 are stated under “C. Year Ending Mar. 31, 2015 (Forecast).”

	(3)	The conversion rate used for Dimension Data figures for the nine months ended December 31, 2014 is USD1.00 = JPY102.93.

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

	(5)	Operating Income for the nine months ended December 31, 2014 under US GAAP was 2.8 billion yen.

	(6)	Forecasts for the year ending March 31, 2015 have not been changed from those announced in the financial results for the six months ended September 30, 2014.

- 5 -

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


	(Billions of yen)
	A Nine Months Ended Dec. 31, 2013			B Nine Months Ended Dec. 31, 2014									C Year Ending Mar. 31, 2015 (Forecast)⁽¹⁾
							*Change*			*Progress*
							*B-A*			*B/C*
NTT DOCOMO Consolidated (US GAAP)
Operating Revenues		3,363.6			3,326.8			(36.8	)		75.6	%		4,400.0
Mobile Communications Services		2,220.2			2,061.2			(159.0	)		75.5	%		2,731.0
Voice Revenues		800.6			669.8			(130.8	)		76.0	%		881.0
Packet Communications Revenues		1,419.6			1,391.4			(28.2	)		75.2	%		1,850.0
Equipment Sales		675.8			731.2			55.4			81.7	%		895.0
Other Operating Revenues		467.6			534.4			66.8			69.0	%		774.0
Operating Expenses		2,674.9			2,739.6			64.7			72.7	%		3,770.0
Personnel		207.8			215.5			7.7			74.8	%		288.0
Cost of Services, Cost of Equipment Sold, and Selling, General and Administrative Expenses		1,710.4			1,780.4			70.0			71.9	%		2,476.0
Depreciation and Amortization		521.8			486.9			(34.9	)		73.9	%		659.0
Loss on Disposal of Property, Plant and Equipment		47.6			49.2			1.6			72.3	%		68.0
Communication Network Charges		158.0			177.5			19.5			74.3	%		239.0
Taxes and Public Dues		29.4			30.1			0.7			75.3	%		40.0
Operating Income		688.7			587.1			(101.5	)		93.2	%		630.0
Non-Operating Income (Loss)		14.9			7.8			(7.1	)		87.1	%		9.0
Income Before Income Taxes		703.6			595.0			(108.6	)		93.1	%		639.0
Net Income Attributable to NTT DOCOMO		430.2			381.9			(48.3	)		90.9	%		420.0
NTT DATA Consolidated (JPN GAAP)
Operating Revenues		942.5			1,067.0			124.5			73.1	%		1,460.0
Public & Financial IT Services		497.8			507.8			10.0			69.8	%		728.0
Enterprise IT Services		194.1			199.5			5.3			70.8	%		282.0
Solutions & Technologies		127.1			125.5			(1.6	)		67.9	%		185.0
Global Business		228.2			340.5			112.2			80.7	%		422.0
Elimination or Corporate		(104.9	)		(106.4	)		(1.5	)		67.8	%		(157.0	)
Cost of Sales		733.8			810.0			76.2			73.6	%		1,100.0
Gross Profit		208.7			256.9			48.2			71.4	%		360.0
Selling, General and Administrative Expenses		182.9			208.3			25.4			75.8	%		275.0
Operating Income		25.7			48.5			22.8			57.2	%		85.0
Non-Operating Income (Loss)		2.7			(3.2	)		(5.9	)		32.5	%		(10.0	)
Recurring Profit		28.4			45.3			16.9			60.5	%		75.0
Net Income (Loss)		10.1			21.7			11.6			58.8	%		37.0


Note:		(1)		Forecasts for the year ending March 31, 2015 have not been changed from those announced in the financial results for the six months ended September 30, 2014.

- 6 -

5.	Average Monthly Revenue per Unit (ARPU)


	(Yen)
	Three Months Ended Jun. 30, 2014 (From Apr. to Jun., 2014)		Three Months Ended Sept. 30, 2014 (From Jul. to Sept., 2014)		Three Months Ended Dec. 31, 2014 (From Oct. to Dec., 2014)		Nine Months Ended Dec. 31, 2013 (From Apr. to Dec., 2013)		Nine Months Ended Dec. 31, 2014 (From Apr. to Dec., 2014)		Year Ended Mar. 31, 2014		Year Ending Mar. 31, 2015 (Forecast)
NTT East
Aggregate Fixed Line ARPU (Telephone Subscriber Line + INS-NET Subscriber Line)		2,710		2,710		2,710		2,760		2,710		2,760		2,700
Telephone Subscriber Lines ARPU		2,370		2,360		2,370		2,410		2,370		2,400		2,360
INS-NET Subscriber Lines ARPU		4,980		4,970		4,980		5,040		4,980		5,030		5,010
FLET’S Hikari ARPU		5,460		5,450		5,490		5,690		5,470		5,660		5,500
NTT West
Aggregate Fixed Line ARPU (Telephone Subscriber Line + INS-NET Subscriber Line)		2,660		2,660		2,660		2,700		2,660		2,690		2,660
Telephone Subscriber Lines ARPU		2,350		2,350		2,350		2,390		2,350		2,380		2,350
INS-NET Subscriber Lines ARPU		4,850		4,850		4,860		4,890		4,850		4,890		4,860
FLET’S Hikari ARPU		5,750		5,700		5,670		5,850		5,710		5,830		5,720
NTT DOCOMO
Mobile Aggregate ARPU (Xi+FOMA)		4,450		4,370		4,340		4,660		4,390		4,610		4,350
Voice ARPU (Xi+FOMA)		1,250		1,190		1,160		1,450		1,210		1,410		1,180
Packet ARPU (Xi+FOMA)		2,670		2,620		2,560		2,710		2,610		2,700		2,600
Smart ARPU (Xi+FOMA)		530		560		620		500		570		500		570


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.

	(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, the 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 NTT DOCOMO.

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

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

	(7)	Subscriptions for and revenues from communication module services, “Phone Number Storage,” “Mail Address Storage,” “docomo Business Transceiver” and wholesale telecommunications services and interconnecting telecommunications facilities that are provided to Mobile Virtual Network Operators (MVNOs) are not included in NTT DOCOMO’s ARPU calculation.

	(8)	NTT DOCOMO’s ARPU calculation methods have been changed from the second quarter of the fiscal year ending March 31, 2015. Accordingly, the ARPU data for the results for “Nine Months Ended Dec. 31, 2013 (from Apr. to Dec., 2013),” “Year Ended Mar. 31, 2014” and “Three Months Ended Jun. 30, 2014 (from Apr. to Jun., 2014)” have also been changed.

	(9)	Numbers 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 April to June

			—	2Q Results: Sum of number of active subscribers* for each month from July to September

			—	3Q Results: Sum of number of active subscribers* for each month from October to December

			—	4Q Results: Sum of number of active subscribers* for each month from January to March

			—	Nine Month Results: Sum of number of active subscribers* for each month from April to December

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

			—	FY Forecast: Sum of the sum of actual number of active subscribers at the end of each month from April to September and the average expected active number of subscribers during the second half of the fiscal year ((number of subscribers at September 30, 2014 + number of expected subscribers at March 31, 2015)/2)x6

	(10)	Numbers 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 April to June

			—	2Q Results: Sum of number of active subscribers* for each month from July to September

			—	3Q Results: Sum of number of active subscribers* for each month from October to December

			—	4Q Results: Sum of number of active subscribers* for each month from January to March

			—	Nine Month Results: Sum of number of active subscribers* for each month from April to December

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

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

	(11)	Forecasts for the year ending March 31, 2015 have not been changed from those announced in the financial results for the six months ended September 30, 2014.

				*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, 2014

As of
Dec. 31, 2014

As of
Mar. 31, 2015
(Forecast)⁽¹⁾

Interest-Bearing Liabilities

4,200.0

4,862.4

4,400.0


Note:		(1)		Forecasts for the year ending March 31, 2015 have not been changed from those announced in the financial results for the six months ended September 30, 2014.

7.	Indices (Consolidated)⁽¹⁾

Year Ended
Mar. 31, 2014

Nine Months Ended
Dec. 31, 2014

Year Ending
Mar. 31, 2015
(Forecast)⁽²⁾

EBITDA

3,192.3 billion yen

2,340.0 billion yen

3,025.0 billion yen

EBITDA Margin

29.2 %

28.6 %

27.5 %

Operating FCF

1,299.5 billion yen

1,142.7 billion yen

1,135.0 billion yen

ROCE

6.0 %

—

5.5 %


Notes:	(1)	Reconciliation of Indices is as follows in “8. Reconciliation of Financial Indices (Consolidated)” below.

	(2)	Forecasts for the year ending March 31, 2015 have not been changed from those announced in the financial results for the six months ended September 30, 2014.

8.	Reconciliation of Financial Indices (Consolidated)

Year Ended
Mar. 31, 2014

Nine Months Ended
Dec. 31, 2014

Year Ending
Mar. 31, 2015
(Forecast)

EBITDA (a+b)

3,192.3 billion yen

2,340.0 billion yen

3,025.0 billion yen

Operating Income

1,213.7 billion yen

910.9 billion yen

1,095.0 billion yen

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

1,978.6 billion yen

1,429.0 billion yen

1,930.0 billion yen

EBITDA Margin [(c/d)X100]

29.2 %

28.6 %

27.5 %

Operating Income

1,213.7 billion yen

910.9 billion yen

1,095.0 billion yen

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

1,978.6 billion yen

1,429.0 billion yen

1,930.0 billion yen

EBITDA (a+b)

3,192.3 billion yen

2,340.0 billion yen

3,025.0 billion yen

Operating Revenues

10,925.2 billion yen

8,182.5 billion yen

11,010.0 billion yen

Operating FCF [(c-d)]

1,299.5 billion yen

1,142.7 billion yen

1,135.0 billion yen

Operating Income

1,213.7 billion yen

910.9 billion yen

1,095.0 billion yen

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

1,978.6 billion yen

1,429.0 billion yen

1,930.0 billion yen

EBITDA (a+b)

3,192.3 billion yen

2,340.0 billion yen

3,025.0 billion yen

Capital Investment⁽¹⁾

1,892.8 billion yen

1,197.3 billion yen

1,890.0 billion yen

ROCE [(b/c)X100]

6.0 %

—

5.5 %

Operating Income

1,213.7 billion yen

—

1,095.0 billion yen

(Normal Statutory Tax Rate)

38 %

—

36 %

Operating Income X (1 - Normal Statutory Tax Rate)

749.3 billion yen

—

701.9 billion yen

Operating Capital Employed

12,489.4 billion yen

—

12,870.9 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 Intangibles” in the consolidated statements of cash flows are as described in the reconciliation below.


	(Billions of yen)
	Year Ended Mar. 31, 2014		Nine Months Ended Dec. 31, 2014
Payments for Property, Plant and Equipment		1,486.7		1,108.7
Payments for Acquisition of Intangible Assets		416.6		260.9
Total		1,903.2		1,369.5
Difference from Capital Investment		10.5		172.2

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