NTT DATA Group (9613) Investor Day 2025 summary

Results for the fiscal year ended March 31, 2025

• Net sales rose 6.2% year on year to ¥4,638.7B, surpassing forecasts; operating profit increased 4.6% to ¥323.9B, though below forecast due to overseas segment declines.

• New orders received grew by ¥170.7B, with both Japan and Overseas segments contributing; exchange rates boosted overseas results.

• Japan segment saw increases in new orders, net sales, and operating profit across all business lines, exceeding forecasts.

• Overseas segment's regional units (North America, EMEAL, APAC) saw net sales and profits decrease excluding forex effects, but GTSS unit achieved strong growth in sales and EBITA.

• Data center business investment reached $2,706M, with strong demand and a backlog of $14,974M; net sales rose 30% year on year.

Management policy for the fiscal year ending March 31, 2026

• Focus on "Quality Growth" by strengthening regional businesses and promoting growth investments, especially in generative AI and data centers.

• Overseas business transformation continues, with integration of corporate functions and IT systems, and formation of cross-unit organizations to drive synergies.

• Aggressive global investments planned in M&A, generative AI, and human capital, aiming for ¥300B in generative AI net sales by FY2027.

• Strategic partnership with OpenAI targets ¥100B in cumulative sales by FY2027, with internal and client-focused AI initiatives.

• Data center investments to remain at high levels, leveraging REIT schemes for asset recycling and investment recovery; transfer of six data centers to a Singapore REIT planned.

• ROIC expected to recover above WACC (approx. 6.3%) in FY2025, with net debt-to-EBITDA ratio around 2.9, maintaining financial soundness.

Forecasts for the fiscal year ending March 31, 2026

• Net sales forecast to rise 6.4% to ¥4,936.7B; operating profit to surge 61.2% to ¥522.0B, with margin improving to 10.6%.

• Profit attributable to shareholders projected to increase 40.4% to ¥200.0B.

• Japan segment expects growth in new orders, net sales, and operating profit, with net sales up 1.3% (4.0% excluding accounting changes in Payments business).

• Overseas segment anticipates double-digit growth in net sales and EBITA, driven by expansion and REIT utilization in data centers.

• Dividend per share set at ¥25, with a payout ratio of 24.1%.