NIPPON TELEGRAPH AND TELEPHONE CORPORATION

As of the end of March 2026, NTT DOCOMO's Mobile Phone Service (5G/LTE) subscriptions totaled 93,065 thousand (up 1.8% year on year), of which 5G service subscriptions were 43,893 thousand (up 17.6% year on year). With a mobile phone market share of 39.9%, the company holds the largest customer base in Japan, and mobile communication ARPU also showed a slight upward trend at ¥3,960 (up 0.5% year on year). This customer base also functions as a platform for expanding the Smart Life Business and financial services business.

Through NTT DATA Group, the company holds a global data center network with total power receiving capacity of approximately 2,000MW (with plans to expand to 3,000MW by fiscal year 2030). In FY2026 (ending March 2026), the Global Solutions Business posted operating profit of ¥4,882 million (up 50.7% year on year) and EBITDA of ¥8,037 million (up 29.1% year on year), showing rapid expansion, with the scale of physical infrastructure serving as a source of competitive advantage.

As of the end of March 2026, the combined number of FLET'S Hikari (including Collabo Hikari) subscriptions for NTT East and NTT West totaled 23,985 thousand (up 0.8% year on year). FLET'S Hikari ARPU showed an improving trend, at ¥4,480 (up 1.6% year on year) for NTT East and ¥4,510 (up 1.3% year on year) for NTT West. The nationwide fiber-optic infrastructure is a unique asset that is difficult to replicate in a short period of time, and it underpins the revenue base for both enterprise and consumer segments.

Completed full subsidiarization in September 2025, accelerating decision-making in the enterprise and global domains. Operating income in the Global Solutions Business rose 50.7% year on year to ¥488,211 million, with benefits materializing at an early stage. Established a framework to advance data center and AI investment on a unified group basis.

Plans to expand total power reception capacity from approximately 2,000MW (No. 1 in Japan, No. 3 globally) to 3,000MW by FY2030. The listing of NTT DC REIT on the Singapore Exchange (July 2025) resulted in a gain on sale of ¥129,451 million, establishing a capital recycling model for investment funds. Capital expenditure increased 11.4% year on year to ¥2,326,004 million.

Made SBI Sumishin Net Bank a consolidated subsidiary in October 2025 and launched "d NEOBANK." In March 2026, announced a transition to the "NTT Docomo Financial Group" structure and the planned transfer of the Finance Business to that group (scheduled for July 2026). Acquisition consideration was ¥420.0 billion, with revenue of ¥92,378 million and net income of ¥12,010 million recorded since the acquisition date.

Plans to commercially offer the optical-electrical convergence device "PEC-2" during FY2026. Built a collaborative framework with supply chain partners including Broadcom and Accton, and strengthened production capabilities at NTT Innovative Devices. "PEC-3" is under development with a target of providing commercial samples in 2028. Also launched an IOWN APN service for Hong Kong's financial industry.

Began offering "tsuzumi 2" in October 2025 (world's top Japanese-language performance in its size class). Deploying high-value-added AI solutions combining multiple LLMs, including a contract making it the first authorized reseller of OpenAI's "ChatGPT Enterprise" in Japan, and development of industry-specific AI agents through a global partnership with Google Cloud.

At the Board of Directors meeting on May 8, 2026, resolved a share buyback program covering up to 1.4 billion common shares and a total acquisition amount of ¥200,000 million, to be executed between May 11, 2026 and March 31, 2027. Annual dividends are planned to increase from ¥5.30 (FY2026, ending March 2026) to ¥5.40 (forecast for FY2027, ending March 2027). The payout ratio is expected to rise from 42.0% to 44.6%.