Nippon Telegraph and Telephone : Financial Results Release

Financial Results Release	February 7, 2022
For the Nine Months Ended December 31, 2021	[IFRS]
Name of registrant	: Nippon Telegraph and Telephone Corporation ("NTT") / URL https://group.ntt/en/ir/
Code No.	: 9432
Stock exchanges on which the Company's shares are listed	: Tokyo
Representative	: Jun Sawada, President and Chief Executive Officer
Contact	: Natsuko Fujiki, Head of IR, Finance and Accounting Department
	URL https://group.ntt/en/ir/contact
Scheduled filing date of quarterly securities report	: February 8, 2022
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, 2021 (April 1, 2021 - December 31, 2021)

Amounts are rounded to the nearest million yen.

(1) Consolidated Results of Operations								(Millions of yen)
	Operating Revenues	Operating Profit		Profit before Taxes	Profit Attributable to NTT
Nine months ended December 31, 2021	8,923,226	2.1%	1,539,668	2.5%		1,553,958	3.9%	1,030,347	24.0%
Nine months ended December 31, 2020	8,738,006	(1.4)%	1,502,326	3.6%		1,495,097	1.9%	831,174	4.3%
Notes: 1. Comprehensive income (loss) attributable to NTT: For the Nine months	ended December 31, 2021: 1,090,787 million yen	7.5%
	For the Nine months ended December 31, 2020: 1,014,803 million yen	27.2%

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

Basic Earnings per

Diluted Earnings

Share Attributable

per Share

to NTT

Attributable to NTT

Nine months ended December 31, 2021

286.08

(yen)

-

(yen)

Nine months ended December 31, 2020

224.07

(yen)

-

(yen)

(2) Consolidated Financial Position

(Millions of yen, except equity ratio and per share amounts)

Total Assets

Total Equity

Shareholders'

Equity Ratio

Shareholders'

(Net Assets)

Equity

(Ratio of Shareholders'

Equity per Share

Equity to Total Assets)

December 31, 2021

23,544,353

8,700,970

7,997,766

34.0％

2,258.31

(yen)

March 31, 2021

22,965,492

8,203,043

7,562,707

32.9％

2,087.98

(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, 2021

-

50.00

(yen)

-

55.00

(yen)

105.00

(yen)

Year Ending March 31, 2022

-

55.00

(yen)

-

Year Ending March 31, 2022

60.00

(yen)

115.00

(yen)

(Forecasts)

Note: Revision to the dividend forecasts from the latest announcement: Yes

3. Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(Millions of yen, except per share amount)

	Operating Revenues	Operating Profit	Profit before Taxes	Profit Attributable to NTT	Basic Earnings per Share
									Attributable to NTT
Year Ending	12,180,000	2.0%	1,745,000	4.4%	1,736,000	5.0%	1,100,000	20.1%	306.00	(yen)
March 31, 2022

Note: 1. Percentages above represent changes from the previous fiscal year.

2. Revision to the consolidated financial results forecasts from the latest announcement: Yes

Reflecting strong business results, compared to the consolidated financial results forecasts announced on August 6, 2021, the forecast for operating revenues has been revised upwards by 180,000 million yen (+1.5%), the forecast for operating profit has been revised upwards by 15,000 million yen (+0.9%), the forecast for profit before taxes has been revised upwards by 20,000 million yen (+1.2%), the forecast for profit attributable to NTT has been revised upwards by 15,000 million yen (+1.4%), and the forecast for basic earnings per share attributable to NTT has been revised upwards by 4 yen (+1.3%) (with percentages in parentheses representing changes from the time of the previous forecast announcement).

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*Notes:

1. Change in significant subsidiaries during the nine months ended December 31, 2021 (change in specific subsidiaries involving changes in the scope of consolidation): None
2. Change of accounting policy and accounting estimates
3. 1. Changes in accounting policy required by IFRS: None
   2. Changes other than (i): None
   3. Changes in accounting estimates: None
4. Number of shares outstanding (common stock)
5. 1. Number of shares outstanding (including treasury stock):

December 31, 2021	: 3,622,012,656 shares
March 31, 2021	: 3,900,788,940 shares
ii. Number of shares of treasury stock:
December 31, 2021	: 80,537,372 shares
March 31, 2021	: 278,776,284 shares
iii. Weighted average number of shares outstanding:

For the nine months ended December 31, 2021 : 3,601,626,894 shares

For the nine months ended December 31, 2020 : 3,709,485,902 shares

• This Financial Results Release is not subject to the quarterly review by a certified public accountant or audit firm.
• Explanation for the appropriate use of earnings forecasts and other notes:

This document is a translation of the authoritative Japanese original. The forward-looking statements and projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained or referred to herein and in other materials being released on TDnet concurrently with these documents, 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 and in such other materials.

On Monday, February 7, 2022, 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.

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1. Summary Information (notes)

1. Change in significant consolidated subsidiaries during the nine months ended December 31, 2021, that resulted in changes in the scope of consolidation: None
2. Changes in Accounting Policies and Estimates: None

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2. Condensed Quarterly Consolidated Financial Statements

1. Condensed Quarterly Consolidated Statements of Financial Position

		Millions of yen
	As of March 31,	As of December 31,	Increase
	2021	2021	(Decrease)
ASSETS
Current assets
Cash and cash equivalents	¥935,727	¥826,367	¥(109,360)
Trade and other receivables	3,534,555	3,590,822	56,267
Other financial assets	41,732	51,241	9,509
Inventories	315,437	351,673	36,236
Other current assets	498,106	624,118	126,012
Subtotal	5,325,557	5,444,221	118,664
Assets held for sale	816	97,769	96,953
Total current assets	5,326,373	5,541,990	215,617
Non-current assets
Property, plant and equipment	9,282,286	9,385,290	103,004
Right-of-use asset	639,627	625,277	(14,350)
Goodwill	1,056,187	1,214,464	158,277
Intangible assets	1,765,858	1,821,870	56,012
Investment property	1,182,713	1,225,090	42,377
Investments accounted for using the equity method	411,033	469,477	58,444
Other financial assets	1,515,922	1,505,106	(10,816)
Deferred tax assets	993,858	908,826	(85,032)
Other non-current assets	791,635	846,963	55,328
Total non-current assets	17,639,119	18,002,363	363,244
Total assets	¥22,965,492	¥23,544,353	¥578,861

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		Millions of yen
	As of March 31,	As of December 31,	Increase
	2021	2021	(Decrease)
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings	¥ 3,168,613	¥ 1,976,744	¥ (1,191,869)
Trade and other payables	2,356,705	2,121,551	(235,154)
Lease liabilities	193,915	166,462	(27,453)
Other financial liabilities	28,334	27,574	(760)
Accrued payroll	509,416	446,211	(63,205)
Income taxes payables	115,965	118,184	2,219
Other current liabilities	1,053,196	974,826	(78,370)
Sub Total	7,426,144	5,831,552	(1,594,592)
Liabilities directly associated with assets held for sale	18	20,855	20,837
Total current liabilities	7,426,162	5,852,407	(1,573,755)
Non-current liabilities
Long-term borrowings	4,455,724	6,036,199	1,580,475
Lease liabilities	553,836	569,850	16,014
Other financial liabilities	137,620	137,749	129
Defined benefit liabilities	1,731,645	1,765,976	34,331
Deferred tax liabilities	81,420	110,689	29,269
Other non-current liabilities	376,042	370,513	(5,529)
Total non-current liabilities	7,336,287	8,990,976	1,654,689
Total liabilities	14,762,449	14,843,383	80,934
Equity
Nippon Telegraph and Telephone Corporation ("NTT")
shareholders' equity
Common stock	937,950	937,950	－
Retained earnings	7,068,008	6,973,861	(94,147)
Treasury stock	(704,793)	(226,311)	478,482
Other components of equity	261,542	312,266	50,724
Total NTT shareholders' equity	7,562,707	7,997,766	435,059
Non-controlling interests	640,336	703,204	62,868
Total equity	8,203,043	8,700,970	497,927
Total liabilities and equity	¥ 22,965,492	¥ 23,544,353	¥ 578,861

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