NTT (9432) Investor Day 2024 summary

Consumer and Enterprise Business Growth Strategy

• Targeting a reversal in ARPU trend, aiming for JPY 4,200 by FY2027, with this year as the bottom.

• Expanding customer base among young and middle-aged users, aiming for over 30% DOCOMO retail subscribers by FY2027.

• Growth strategies focus on expanding enterprise network business, recapturing fiber optic market share, and reforming cost structures.

• Upselling initiatives like Bakuage Selection and Poikatsu are driving migration to higher-value plans, with eximo migration rate targeted above 60% by Q4 2024.

• Smart Life business (entertainment, finance, marketing solutions) and enterprise services are expected to drive revenue growth, offsetting declines in traditional telecom.

Financial Guidance and Targets

• Consumer business revenue targeted to increase by at least JPY 350 billion by FY2027.

• Entertainment business revenue goal set at over JPY 310 billion in FY2027.

• Finance business aims for JPY 630 billion revenue in FY2027, leveraging d CARD, d Payment, and new partnerships.

• Marketing solutions business targets JPY 270 billion revenue in FY2027, with data-driven offerings for partners.

• Operating profit is projected to rise by ¥45B by FY2027, driven by FTTH, enterprise, and new business growth.

Fiber Optic, Network, and Regional Initiatives

• Plans to expand FLET's Hikari Cross service area and improve apartment building offerings, targeting 24M contracts and ¥40B profit by FY2027.

• Migration to alternative PSTN services is underway to maintain a ¥350B revenue base as legacy infrastructure is phased out.

• FTTH maintenance and social infrastructure businesses are expanding in Southeast Asia, leveraging population growth trends.

• Regional telecom profit targeted at JPY 360 billion by FY2027, with a V-shaped recovery expected from 2027 onward.

• Regional business direction includes supporting local communities, urban development, disaster prevention, and digital infrastructure.