IR Road Show Reference Materials. October 2009

(1)

IR Road Show

Reference Materials

(2)

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, 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.

***

“1Q” in this material represents the 3-month period beginning on April 1 and ending on June 30.

****

“2Q (3m)”in this material represents the 3-month period beginning on July 1 and ending on September 30

*****

“2Q (6m cum.)” in this material represents the 6-month period beginning on April 1 and ending on September 30.

****** “3Q”and “4Q” in this material represent the 3-month periods beginning on October 1 and January 1 and ending on

(3)

1. Broadband Market

1.1 Telecom Service Subscriptions in Japan 1.2 Faster and Diversified Broadband Access

2. NGN

2.1 Hikari/NGN Service Rollout -Expansion of NGN Service Area-2.2 Hikari/NGN Service Rollout –Service Rollout Centering on the NGN-2.3 NGN Reliability and Security

3. Promotion of Optical Access

3.1 Measures to Increase FTTH Demands

3.2 Overview of Optical Service Facilities (Split Branch Method) 3.3 Overview of Direct Fiber Cabling System in Multi-Dwelling Units 3.4 Plans for NGN and FTTx

3.5 Broadband Service Monthly Charges -Triple-play-3.6 Developing the Fiber-Optic Video Service Market 3.7 Hikari TV and FLET’S TV

4. Upper Layer Services

4.1 Expansion of Upper Layer Businesses

4.2 Example of Upper Layer Businesses –e-learning-4.3 Example of Upper Layer Businesses –Home ICT-4.4 Example of Upper Layer Businesses

–Support Functions for Residential User

Services-4.5 Example of Upper Layer Businesses –SaaS and Cloud Computing-4.6 Global Data Center –Providing Standardized Quality and High

Reliability Overseas-4.7 Digital Signage 4.8 Digital Cinema

4.9 Video Communications

4.10 Initiatives towards Business in New Fields 4.11 Advanced Research

5. Mobile Communication Business

5.1 Challenge in Mobile Communications Business –Evolution of Services-5.2 Actions to Strengthen Core Businesses

5.3 Expansion of Packet Usage

5.4 Expansion and Promotion of Video Services 5.5 Service Personalization

-i-concier-5.6 Churn Rate

5.7 Market Share of Net Additions/MNP 5.8 Fixed-Mobile Convergence (FMC)

5.9 Fixed-Mobile Convergence (FMC) –Femto BTS for Service Delivery-5.10 Evolution of Network in Mobile Communications Business

5.11 NTT DOCOMO’s LTE

6. IT Services

6.1 NTT DATA’s Consolidated Net Sales by Sector

7. International Operations

7.1 Global Business Development

8. Environment Related Initiatives

8.1 NTT Group’s Initiatives to Prevent Global Warming

8.2 Expanding Implementation of Natural Energy Generating Systems -Green

NTT-8.3 Expansion of Environmental Businesses Using R&D Achievemnets

9. Corporate Governance

9.1 NTT Corporate Governance ① 9.2 NTT Corporate Governance ②

10. Regulations

10.1 Debate regarding NTT’s Managerial Structure 10.2 NTT’s Views on Telecom Regulation Issues

11. Other Data

11.1 Capital Expenditures

11.2 Consolidated Operating Revenues, Operating Income and Cash Flows 11.3 Employees (NTT Group Consolidated)

11.4 Age Distribution at Regional Operating Companies (As of March 31, 2009） 11.5 Shareholder Returns

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Mobile Phone Telephone/ISDN 3G Mobile Phone Broadband

Source: Ministry of Internal Affairs and Communications（MIC) and the Telecom Carriers Association Note 1 3G mobile phones include W-CDMA and CDMA2000 types.

2 Broadband includes DSL, FTTH and CATV.

Mobile subscribers

113.02 M （June 2009）

（millions of subscribers)

Fixed-line subscribers

have declined since 1998

3G mobile subscribers

102.07 M（June 2009）

Broadband subscribers

30.91M (June 2009)

1.1 Telecom Service Subscriptions in Japan

Telephone/ISDN subscribers

46.27 M (June 2009)

1 2

(5)

1.2 Faster and Diversified Broadband Access

Note: Access speeds shown are numbers used for commercial purposes, and are the maximum output speeds achievable within the framework of the respective best effort services. LTE and Next generation PHS services are at a pre-commercialization phase, and the respective access speeds given are theoretical maximums.

DSL：NTT East FLET’S ADSL etc, FTTH：NTT East B FLET’S Hyper Family Type etc, CATV：J:COM etc, Mobile：NTT DOCOMO FOMA High Speed etc, WiFi：NTT East FLET’S Spot etc,

WiMAX：UQ Communications（commercial service starting July 2009）

ＤＳＬ subscribers

（Approx.11M)

～50Mbps

～100Mbps

～160Mbps

Internet / Broadband Network

ＦＴＴＨ subscribers

（Approx.16M）

3G Mobile

subscribers

（Approx.102M）

ＣＡＴＶ subscribers

（Approx.4M）

Public WiFi

subscribers

（Approx.8M）

WiMAX/

Next Generation

PHS subscribers

～20Mbps

（Next Generation

PHS）

～54Mbps

～100Mbps

（LTE）

～7.2Mbps

～40Mbps

（ＷｉＭＡＸ）

Customers

¾ Total number of fixed and mobile broadband access subscriptions approaching the 150 million mark

¾ Approximately half of the fixed broadband subscriptions are FTTH subscribers

Mobile

Broadband Access

Fixed

Broadband Access

(6)

◆

2.1 Hikari/NGN Service Rollout

Expansion of NGN Service Area

-NGN se

rvice a

re

a

March 2008

Commercial

service launched

Commercial

service launched

Fiscal Year

◆

images of the area deployment plan

End of FY2008

Service available to approx.

60% of households and

businesses in existing

FLET’S Hikari service areas

Service available to approx.

60% of households and

businesses in existing

FLET’S Hikari service areas

End of FY2009

Service will be available

to all existing FLET’S

Hikari service areas

Service will be available

to all existing FLET’S

Hikari service areas

Available to all service areas in Eastern Japan and 80% of service areas in Western Japan

Service will be available to

approx. 90% of households

and businesses in existing

FLET’S Hikari service areas

Service will be available to

approx. 90% of households

and businesses in existing

FLET’S Hikari service areas

End of FY2010

¾ By the end of FY2009, Hikari Next (NGN) service will be available to approximately 90% of households

and businesses in the existing FLET’S Hikari (fiber-optic access) service areas

¾ By the end of FY2010, the service will be available in all existing FLET’S service areas (available to 90%

of households and businesses nationwide)

¾ We introduced an optical wiring system for multi-dwelling units that draw fiber-optic cables to every

residence in the building, thereby promoting the expansion of NGN and fiber-optic access

(7)

¾ For business users: Provide highly reliable services such as FLET’S VPN Wide that can be used throughout

Japan by connecting the networks of NTT East and NTT West. Deploy secure

bandwidth data transmission services and other means to provide a variety of NGN services.

¾ For home users: Increase video services and terminal device lineups that expand the use of fiber-optics. Going

forward, provide convenient services that combine PCs, TVs and mobile phones.

For Business

For Home

Provide highly

reliable corporate

data networks

～ FY2008

FY2009 ～

Present

▼

2.2 Hikari/NGN Service Rollout

Service Rollout Centering on the NGN

-Note: Black: network services, Blue: terminal devices and systems. Green: applications and solutions . Italics: services provided by non-NTT Group service providers and manufacturers.

(Company names are in parentheses)

*1 Fiber-optic (Hikari) based IP telephony service provided by NTT East and NTT West *2 Advanced digital photo frame which automatically updates contents

ICT solutions

that support

business

creation and

efficiency

Provide high

quality triple play

service

Applications

and terminal

devices that

expand the use

of fiber-optics

Secured bandwidth

data transmission

Jul：SaaS common platform

Mar: Business Ether-Wide

Mar: FLET’S VPN Gate

Mar: Hikari Denwa

*1

_{Office Type}

Jun: Ubiquitous Desk

(NEC)

Aug: FLET’S VPN Wide

(Connecting NTT East and NTT West and existing FLET’S service)

Oct: New key telephone system

(compatible with the NGN)

Oct: Tele presence

(Cisco Systems)

Nov: Digital signage

(business model trial)

Jul：Digital Cinema

Mar: FLET’S Hikari Next

Mar: FLET’S Phone

Oct: Session Plus

Aug: Music broadcasting

(USEN)

Jun：Hikari Box

(PC that connects the TV set to access the Internet)

Hikari TV and mobile

seamless service

Mar: Hikari ＴＶ

May: Retransmission of

DTT over IP

(Hikari TV)

Sep: GyaO NEXT

(USEN)

Jul: FLET’S TV

Dec: “NHK On-demand”

(via Hikari TV)

Femtocell

Apr: Earthquake early warning

Feb: Hikari softphone

Feb: Hikari digital

photo frame

Apr: PC equipped with

Hikari TV tuner

Mar: Hikari Denwa

*1

Apr: HD quality video

conference system

(NEC)

Apr: EMR for clinics

Standby display with

communication terminal

*2 (Advanced digital photo frame)

(8)

Security

Reliability

2.3 NGN Reliability and Security

Provide high security network service with countermeasures

against spoofing and unauthorized access

• Management of ID information for each line according to the

service type and monitoring the user’s numbers whenever

accessing to NGN

• Using the edge node, placed at the network entrances, to

block unauthorized access and unwanted traffic according to

the service type.

Network

Control

Server

Edge Node

Voice/Data

Spoofing

(incl. sender-number fraud)

Unauthorized

Access

Control edge nodes

after confirming user ID

such as telephone

numbers for each line

Anti-spoofing

Prevention of

unauthorized

access

Traffic

Control

System

1. Adoption of large-volume and reliable carrier-grade devices

Core Router

Edge Node

User

• Adoption of an architecture assuming large-scale networks

• Reliable network for users through

1. Adoption of large-volume and reliable carrier-grade devices

2. Redundancy in circuits and equipment

3. Controls traffic when a specific area is congested

4. Securing medium for important communications

3. Controls traffic when a specific area is congested

General user (control outgoing traffic at times of congestion) Specific user (communications assured even at times of congestion) 4. Securing important communications at times of disasters

Control Signal

2. Redundancy in circuits and equipment

(9)

3.1 Measures to Increase FTTH Demands

Expand the Business Market

（Enrich services and support towards

corporations of various sizes ）

Expand the Business Market

（Enrich services and support towards

corporations of various sizes ）

Increase Users

and ＡＲＰＵ

+

【

Main Measures】

・

Promote direct fiber

cabling system

・Strengthen cooperation

with local governments

・

Offer customized menus

・

Expand area coverage of

terrestrial digital broadcasting

services（FLET’S TV, Hikari TV)

・

Collaboration with local CATV

companies

Expand FTTH coverage

to customers living

in multi-dwelling units

Promote IRU* in

areas where FTTH is

unavailable

Expand Video

Services

non-Internet Users

Explore

・Expand the Hikari Link series

lineup, which does not require PCs for Internet access

・Create new usage opportunities through alliances with various businesses

【Net increase in FLET’S Hikari Subscriptions】

250

236 270 175 266 83 10/3E 09/3 08/3 07/3 06/3 05/3 (ten thousands)

(10)

3.2 Overview of Optical Service Facilities

(Split Branch Method)

OLT/OSU

Optical Splitter

(outside NTT

building)

Optical Splitters

(inside NTT building)

②

③

①

Other providers’

equipment

NTT building

NTT IP network

OSU

Other providers’ IP networks

Splitter (inside NTT building)

Splitter (outside NTT building)

Fiber–optic cable

8 branches 4 branches

OSU

Customer premises （other providers） Duct

ONU

Customer premises （NTT East or West)

①

②

③

Maximum of 32 subscribers per one fiber line Maximum of 8 subscribers

per one fiber line One subscriber

per one fiber line

OLT (Optical Line Terminal)

OSU (Optical Subscriber Unit)

(11)

3.3 Overview of Direct Fiber Cabling System in Multi-Dwelling Units

¾

Promotion of a high quality and highly sustainable “direct fiber cabling system” and “indoor wiring standardization”,

which requires less common space usage, does not require electric engineering work or electricity fees, is highly

adaptable for future expansion abilities, compared to the former VDSL method (using metal wiring).

¾

In multi-dwelling units where fiber-optics are yet to be made available, immediate determination of installation dates

simplifies the process and allows for the shortening of the timeframe required for service to begin after the date of a

subscription application.

Legend: fiber cabling LAN cabling coaxial cabling telephone cabling

3F

2F

1F

Sockets

Living Room Bedrooms

Terminal device for video services （All-in-one Hikari

Denwa router）

connector

Indoor optical fiber

Connector

socket

Optical fiber sockets

Low-friction indoor optical

fiber

PT

Optical splitter

splitter

Max. 1Gbps

Sockets Sockets Common Space MDF Room etc. EAST

(12)

3.4 Plans for NGN and FTTx

Country

Carrier

Plan

NGN Transition Plan

FTTx Transition (Result/Plan)

South

Korea

KT

BcN

・ Began migration of backbone network to IP in 2006. ・ Migration of local network to IP during 2010- 2015.

・ 3.4 million fiber-optic based service (apartment LANs, etc.) subscribers as of March 31, 2009.

UK

BT

21CN

・ Mass migration of customers from PSTN to IP based network in 2006.

・ 50% of end users to have access to Next Generation broadband services in 2009.

・ Number of subscribers are not disclosed.

US

Verizon

FiOS

・ 3.1 million fiber-optic based service (FTTP) subscribers as of June 30, 2009.

AT&T

U-verse

・ 1.6 million fiber-optic based service subscribers as of June 30, 2009

Germany

DT

・ Complete migration of PSTN to IP by 2012. ・ Number of subscribers are not disclosed.

France

FT

One IT &

Network

・ Began NGN trials in 2007.

・ Plans to start commercial NGN services in 2008. ・ Complete 50% migration to NGN by 2010.

・ 29 thousand fiber-optic based service subscribers as of June 30, 2009.

（Cover 580 thousand households）

Japan

NTT

FLET’S

Hikari Next

・ Began commercial NGN services in March 2008. ・ Expand NGN services to exiting FTTH service areas

by the end of March, 2011.

・ 11.8 million fiber-optic based subscribers as of June 30, 2009.

・ Approx. 90% area coverage within Japan by the end of March, 2009.

*FTTC: Fiber To The Curb FTTP: Fiber To The Premises FTTN: Fiber To The Node Broadband

Convergence Network

21st_Century Network

Plans to deploy FTTN to cover 30 million households by 2010

Plans to deploy broadband network (FTTN) to cover 50 cities by mid-2009

Plans to cover 18 million households by the end of 2010

¾ Major carriers around the globe are promoting the deployment of NGN and the migration to FTTx.

Plans to deploy FTTC* to cover as many as 10 million households by 2012

(13)

ADSL

（High Speed Internet + telephone）

3.5 Broadband Service Monthly Charges -Triple

Play-（Reference） Each company’s corporate website (as of September 8, 2009) Charges do not include consumption taxes.

*1 Lowest monthly charge after applying bulk discount through one-stop menu. *2 Option channel is excluded. J:COM includes BS digital broadcasts. *3 Charge for multi-channel services. Tuner rental charges are included. Hikari TV also provides VOD flat rate services.

*4 Modem rental charges (modem + splitter) are included. *5 ONU rental charges are included. *6 Hikari Denwa router rental charges are included.

Single-Dwelling

Units

10,890 yen

+ call charges

NTT FLET’S Hikari

（100Mbps）

[OCN Hikari with FLET’S + Hikari TV]

FTTH

CATV

Multi-Channel VOD

Total Monthly Charge

*1

Total Monthly Charge

*1

Service

IP Telephony

Basic Charge

IP Telephony

Basic Charge

High Speed Internet

Multi-Dwelling

Units

Single-Dwelling

Units

J:COM

（160Mbps）

[J:COM Tokyo]

NTT FLET’S ADSL

（47Mbps）

[NTT East + OCN]

9,900 yen

+ call charges

8,300 yen

+ call charges

6,290 yen

+ call charges

（Breakdown of Total）

1,700 yen

+ call charges

950 yen

*6

+ call charges

_{+ call charges}

500 yen

4,590 yen

*4

4,350 yen

*5

6,400 yen

3,000 yen

*3

3,000 yen

*3

10,890 yen

+ call charges

(Package price)

［58 channels］*2 ［58 channels］*2 ［59 channels］*2

(14)

3.6 Developing the Fiber-Optic Video Service Market

－18－

Fiscal year

10/3

09/3

Subscri

b

ers

● 1.4 million

0.63 million

<Future Services>

Karaoke service

“NHK On-demand”

TV set equipped with

Hikari TV tuner

PC equipped with

Hikari TV tuner

Service and features of Hikari TV

Recording function with high technology STB (internal HDD)

ＶＯＤ flat rate plan

¾ The number of subscribers to fiber-optic video services over fiber (Hikari TV and FLET’S TV) has

been increasing rapidly, developing a new video services market such as Video on Demand (VOD).

¾ Further growth in demand will be pursued through service expansion centering around Hikari TV.

Seamless service

with mobile phones

Hikari TV

FLET’S TV

*2_{（682.5yen～/month）} Expansion of HD quality broadcast channels Retransmission of satellite broadcasts over IP*1

VOD + multichannel broadcast

（3,500yen～/month）

Multichannel broadcast

（2,500yen～/month）（2,500yen～/month）

VOD

*1 Service to be provided with broadcasters’ consent for retransmission after deciding method and technology.

*2 FLET’S TV is a service provided to those who subscribe to both FLET’S TV Transmission Service provided by NTT East/West and SKY PerfecTV!HIKARI (Home Type Wide or Multi-Dwelling Units Type Direct Fiber Cabling System) provided by Opticast Inc. The fee includes a service fee for SKY PerfecTV!HIKARI

of 200 yen/month.

● 0.78 million

（１st Quarter）

(15)

Hikari TV

FLET’S TV

Transmission method

IP

RF

Services

Video on Demand

○ （not available）

Multichannel

Broadcast

○ （○）

Retransmission of

DTT

○

○ Retransmission of

Satellite Broadcasts

（launch scheduled）

○ Monthly Charge

(including taxes)

3,000 yen/month～

650 yen/month

Area Coverage

All areas with FLET’S Hikari coverage

_{FLET’S Hikari coverage available in areas within the}

following prefectures:

*1 FLET’S TV is a service provided to those who subscribe to both FLET’S TV Transmission Service provided by NTT East/West and SKY PerfecTV!HIKARI (Home Type Wide) provided by Opticast Inc. The fee includes a service fee for SKY PerfecTV!HIKARI of 200 yen/month. *2 Change of subscription to “SKY PerfecTV!Hikari Pack Course” is required.

*3 3,500 yen/month when subscribing to both Video on Demand and Multichannel broadcast. *4 Includes 500 yen/month STB rental charges.

DTT broadcasting available in NGN coverage areas within the following prefectures:

Tokyo, Kanagawa, Chiba, Saitama, Aichi, Osaka Kyoto, Hyogo

3.7 Hikari TV and FLET’S TV

*2

*3,4

Tokyo, Kanagawa, Chiba, Saitama, Fukushima, Hokkaido, Osaka, Hyogo, Aichi, Tokushima

(16)

4.1 Expansion of Upper Layer Businesses

Next-Generation Services Joint Development Forum, NTT Investment Partners (NTT-IP) and

Comprehensive Commercialization Functions

◆ Promote service/business creation activities among partners, including NGN application development by the “development

community”

◆ Promote capital and business alliances with start-up firms and other partners through NTT-IP

◆ Strategy to effectively link research results to business development

Home ICT

Support safe, secure and convenient lifestyles ・Develop services linking household electronic devices, the network, and other devices

Services linking mobiles, PCs

and other devices

Provide seamless services in a multi-device environment, including mobile phones and PCs ・Mobile/PC linked services for search and e-mail

e-learning

Support functions for residential services

Prepare launch of NTT Single Sign-on (provisional name) and NTT Payment (provisional name)

Revolutionize e-learning through “rich, flexible and fun” exercises using broadband

・・

・

Digital cinema

Digital signage

SaaS and cloud computing

Support functions for business services

Full lineup of SaaS platforms (BiZCity and VANADIS）

Secure NGN-based high-quality cinema content distribution; the distribution network can be used for live events.

・Launched in July 2009 Promote the use of digital signage

・Conduct field studies and consider

commercialization in collaboration with Dentsu and other partners

Promote “SaaS over NGN” and migration of services to cloud computing services

・・

・

Promotion of remote healthcare utilizing NGN ・Trial implementation of remote health care in conjunction with mandatory metabolic

syndrome checkups and preventive care

Remote healthcare

Realization of remote high-quality communication using audio-visual capabilities

(17)

¾ New web based education company (NTT Knowledge Square) was jointly established by NTT Group (NTT

Learning Systems etc.) and Digital Knowledge (September 2009)

¾ Business/capital alliance with Cerego Japan (online learning site ”smart.fm”)） (July 2009)

¾ Plans to develop a learning system tie-up utilizing “3Di Open Sim“ (3D virtual space creation software) by 3Di.

4.2 Example of Upper Layer Businesses elearning

-“Fun”

“web 2.0 + broadband” adds

fun to learning

“Flexible”

Users can design

highly personalized courses

of study

“Rich”

Offers opportunities for

high quality learning

Website image (e-learning class by patissier Hironobu Tsujiguchi

Communication

among lecturers and

students via SNS

Face to face

consulting with

mentor

Learning Forest

(Manabi no Mori)”

A lively learning

environment

Private Lesson Private Lesson

(18)

Printer manufacturers NAS manufacturers Door phone manufacturers Security camera manufacturers

Health care equipment manufacturers

Home appliance manufacturers Audio-visual equipment

manufacturers

Home electronic manufacturers Security service companies

House developers Multi-dwelling unit developers

Gas companies Etc.

Service Venders

NGN

④Home ICT platform services

HGW/SGW

Home & Office

Customers

③BPO services for corporate customers

(Agents for primary trouble support lines and help desks and collection of equipments)

③BPO services for corporate customers

(Agents for primary trouble support lines and help desks and collection of equipments)

②User support services

(One stop support for service, configuration, and maintenance)

②User support services

(One stop support for service, configuration, and maintenance)

①Application services using NTT’s strengths

(SMA, remote access, media sharing, health care, energy mgmt)

①Application services using NTT’s strengths

(SMA, remote access, media sharing, health care, energy mgmt)

NTT’s Scope for Business

Services

Health care

SMA

Remote access

Media sharing

Energy management

ＳＭＡ

（

Security

，

Monitoring

，

Automation), remote access,

media sharing, healthcare, energy management,

contents distribution, TV shopping, etc.

BPO: Business Process Outsourcing

4.3 Example of Upper Layer Businesses Home ICT

-¾ Through use of the Home ICT Platform developed by NTT R&D, various home ICT services will be

made available by collaboration with equipment manufacturers and service venders.

(19)

4.4 Example of Upper Layer Businesses

Support Functions for Residential User Services

-Credit cards Direct debits Credit cards Direct debits NTT DOCOMO Settlement Service NTT DOCOMO Settlement Service NTT Communications Settlement service NTT Communications Settlement service

Serviced by Partner companies

Serviced by NTT Group

・・・

customer

Simple, secure and convenient

When using

“NTT Single Sign-on” (tentative name) …

When using

“NTT Payment” (tentative name)…

Enables customers to use services by partner

companies using IDs they currently use for

services by NTT Group companies (compatible

with Open ID)

Enables use of NTT Group settlement services

for services by partner companies

(20)

4.5 Example of Upper Layer Businesses

- SaaS and Cloud

Computing-National and Local Governments、etc

Corporations

Green Data Center

［SOHO］［Offices］［Factories］

Electronic

Applications

Education

CRM

ERP

Medicine

・・・

Applications that can be achieved with SaaS/Cloud Computing

［Schools］

［National and Local

Governments］［Hospitals］

Network (ＮＧＮ/Mobile)

GIS

・High voltage direct current power feeds ・Solar power cells, etc

¾ Launch high-quality and secure SaaS platforms, implemented with cloud computing technology and

environmental technology. (NTT Communications, NTT Data)

¾ Provide various applications through collaboration with partner companies such as Microsoft and

Salesforce.com (150 applications by 50 companies in schedule)

Personnel

/Payrolls

・virtualized operations management technology ・large- scale dispersive data

processing, etc.

National and Local

Governments

Corporations

Individual Systems

Cloud Computing

Environmental technology

Polycom

Salesforce.com

ＳａａＳ Platform

(BizCITY/VANADIS collaboration)

Microsoft

_・・・

_{NTT Group}

Cloud Computing

(21)

4.6 Global Data Center

Providing Standardized Quality and High Reliability Overseas

-¾ Deployment of highly reliable data centers providing globally standardized high-quality services

(currently data centers are located in 29 cities)

*As of August 2009

■Dusseldorf

Paris■

■ Connecticut

■Hong Kong

■ New York

■ Manila

■Bangkok

Sao Paulo ■

■Sydney

Beijing

■

Seoul■

■Taipei

■Jakarta

■ Amsterdam

Singapore ■

■Shanghai

Guangzhou

■

San Jose

■

■ Virginia

Mumbai

■

■Frankfurt

New Delhi

■

Madrid■

London■

Los Angeles

■

Suzhou■

Hanoi

■

■Kuala Lumpur

The data center was established

through a tie-up with a local

Vietnamese telecommunications

carrier.

(Commenced Services in April 2009)

Acquired Hong Kong based APT Satellite Telecommunications Limited

■

(22)

Location

National

Client

Regional

Client

Digital Signage

Advertising Platform

Digital Signage

Advertising Platform

Content

Optimization of content distribution based on location,

time, etc.

Consolidation of distribution management for varied and

multiple signage Assessment of the effectiveness of advertisement through image processing Cross-media promotion with mobile phones and

other media

Local

Client

Location

Advertising

Agencies

Company A distribution system

Audience

Advertising data Media information Distribution instructions Media information Distribution instructions Advertising data

NGN

Company B distribution system

To resolve issues faced by the digital signage industry and to create a new market, a consortium

was established among NTT, Dentsu, Hakuhodo, Panasonic, Fujitsu, Hitachi and other 160

participating companies (as of September 2009).

Example of installation: At Seibu Railway’s

Ikebukuro Station

4.7 Digital Signage

¾ Develop platforms which integrate different distribution systems and conduct network distribution

trials (Commercialization under consideration).

(23)

Master

film

・・・

Degradation of film due

to repetitive playing

Digitalization

& Encryption

Master

film

NGN

Ethernet

Theft of films

Illegal copying

Illegal copying is close to impossible

Simultaneous

Delivery

Degradation

free

Deterioration of image

due to repetitive copying

Film

Digital Cinema

Distribution of the movie “Knowing” distributed by Toho Towa, in July 2009

Distribute to each location

4.8 Digital Cinema

¾ NTT Smart Connect started “PURE CINEMA”, a digital cinema delivery service using NTT East/West

Ethernet services, in Toho Cinemas and Kadokawa Cineplex movie theaters.

- Safely distribute movie files of the same quality as its digitalized and encrypted master image, along

with its decryption key.

- Provides the digital cinema distribution network as the distribution network for live ODS* programs

such as movie premier speeches and live theater works.

*Online Digital Source: Digital contents other than movies

Movies and live events

can be distributed using

the same distribution

network

(24)

4.9 Video Communications

¾ Given changes to social conditions such as world recession and environmental problems, NTT will aim

to revitalize the video communications market and increase the market penetration rate

-

Resolve problems in the video communication market and promote the development and expansion of the market

- Achieve highly realistic communications through low delay, high-sound-quality and full high-definition images

- Expand the market for video teleconferencing, further expand the NGN service through creation of new video

communication services, thereby increasing profit

Expand video communications customers and

NGN services with a focus on business market

Diversification of individuals Aging society Heightening of environmental regulations Advance of world recession

Deployment of video

communication

services taking into

consideration

changes in the

business

environment

Realize low-price and stable high-definition

video using NGN

Develop technology for high-definition video

conference which allows realistic two-way

communications

Standardization of devices among video

communications device vendors to allow

inter-connections (especially for NGN)

Creation of new video communications

services through alliances with service

providers

Web

Conference

Video Conf.

<SD Quality>

Tele-presence

High quality Highly real General and diverse use

Scenes of

use

Video Conf.

<HD Quality>

Audio/visual bandwidth guaranteed by quality guaranteed services

ＮＧＮ

HD terminal

HD video conference

over NGN

①Realization of realistic video

communications

②Expand target users by

lowering prices

Inter-connection with terminals of

other providers

HD terminal

③ Creation of new

markets due to

change in work style

(25)

4.10 Initiatives towards Business in New Fields

¾ Expand products developed for communication purposes into other fields

- Embed “H.264 real time encode chips” developed for IPTV services, into broadcasting materials and inter-station

transmission equipment, for commercialization by manufacturers (Approximately 18% global market share and 5.5

billion yen sales in encoder equipment for material transmissions for SARA and VASA combined)

- Develop electrically engineered “KTN crystals” which have the ability to freely bend light, to be used in super high speed

3D scanners and laser radars.

- Utilize tangible communication technologies of “Red Tacton”, which uses the human body surface as a communication

transmission route, in room entrance security management systems.

- After putting the world’s first technology to remove reverberations from its original sound to practical use, commercialize

the technology into a plug-in software for “Pro tools” which is a standardized system for music and audio engineering.

H.264 real time encoder chip “SARA”

_{“KTN crystal” which is the}

world’s first crystal to be

grown into a size of

practical use, successfully

MPEG2 real time HD concoder chip “VASA”

reverberations

Reverberation removing software “NML RevCon-RR”

“RedTacton”, a

communication technology

using the human surface and

subject surface as a

electrical field

Original sound

(26)

4.11 Advanced Research

¾Carrying on with the most advanced fiber access/devices quantum related research in the world

- Technology to transmit high volume data over long distances (13.2Tbps/7200km), in view of a coming era of high

volume data transmission.

- Fiber electron integrated routers which greatly decrease electric consumption and dissolution by routing information itself

as light, and transfer only routing information to electric signals

- Two quantum bit calculation elements, which is the first in the world to make multi-function basic calculations using only

one element, created in view of creating a quantum computer.

- Development of a new semiconductor element based on new motion principles, which has the ability to make

calculations using less power compared to currently available semiconductor ICs, by vibration of tiny plate springs.

New semiconductor

element which makes

calculations by small

vibrations of plate

springs

Electric Pulse

Two quantum bit

calculation element able

to make control reversal

calculations and

exchange calculations

using only one element

SPC SPC SPC SPC IP packet l1 l2 l3 l4 AWG AWG Add Drop PSC PSC PSC PSC High-speed non-synchronized photo-packet CMOS l1 l2 l3 l 4 l1 l2 l3 l4 l1 l2 l3 l4 Photo-buffer memory

Photo-electron integrated routers

Photo-switch

Photo-label processing unit to separate routing information with the main information

OFDM modulation mechanism with the ability to make

transmissions at a rate of 13.2Tbps/7200km

Quantum bit #1 Quantum bit #2 Electric pole A Electric pole B Electric pole C Plate spring

(27)

5.1 Challenge in Mobile Communications Business

Evolution of Services

-R

o

les of m

obile phones

Advancement of IT

Transformation into

lifestyle infrastructure

Time/evolution

Advancement of

communication

Communication

Information

access

Life

assistance

Behavior

assistance

・Music

・Videophone

・Inter-national

dialing

・Telephone

・Internet access

・Gaming

・Video

・e-mail

・Push-to-talk ・2 in 1

・Comic

・One-seg TV

・Security

・Auction

・Osaifu-keitai e-wallet

・Locating

・Filtering

・Search engine

・Deco-mail

DOCOMO

’

_s

s

Challenge

Personalization of

services

Continual evolution of mobile phones and network

¾

In addition to providing the means for communication, access to information and support for daily life

activities, mobile phones will also assume the role of assisting customers based on their individual

behavior. DOCOMO will take on the challenge of advancing each of these roles.

(28)

5.2 Actions to Strengthen Core Businesses

Increase ARPU

◆ Boost packet ARPU by expanding the uptake of

video services and flat-rate plans for packet access

◆ Facilitate smooth migration of customers from mova

to FOMA

◆ Expand the uptake and usage of smart phones and

data cards, etc., which are expected to see a growth

in demand in line with the expansion of the market

for second-phones used mainly for data access, etc.

◆ Expand enterprise business by increasing the

number of corporate users and providing optimal

solutions

◆ Strengthen credit card business by growing the

number of DCMX subscribers and boosting their

usage

Principal areas to strengthen

Aggregate

ARPU ((1) +(2))

(1) Voice ARPU

(2) Packet ARPU

Packet ARPU to

overtake voice ARPU

Halt the decline in

aggregate ARPU

(target for 2012)

2009 2013 4,000 0 2,000 6,000 (Full year forecast) 2008 (Results) (Yen)

¾

As the market matures in line with the increasing rate of mobile-phone penetration, DOCOMO will

strengthen ties with existing customers, cultivate new markets and continue to provide convenient,

attractive services with the aim of reinforcing its revenue base.

Years ended /ing March 31,

(29)

5.3 Expansion of Packet Usage

¾

Lowered minimum rate of “Pake-hodai double” to ¥390/month to allow customers to use our services

more easily without worrying about their phone bill

¾

Enrich video content aiming to establish our reputation for outstanding video content services

1,761 1,761 ０９/６ 1,340 1,340 ０８/１２ 1,575 1,575 ０９/３ 1,958 1,958 1,395 1,395 ０８/９０８/６

“Pake-hodai*

1

_{” subscriptions}

2,240 2,240 １０/３（当初計画）

FY2010 Pake-hodai subscription rate target: 47%

Aim to further

grow flat-rate subs

ＰａｃｋｅｔＡＲＰＵ

2,330 2,410 2,390 2,420 2,430 2,420 0 500 1,000 1,500 2,000 2,500 1Q 2Q 3Q 4Q 1Q 4Q （当初計画）（yen） FY2008 FY2009

Pake-hodai subscription rate*2

43 %

(As of June 30, 2009)

(Million subs)

*1 Inclusive of “Pake-hodai full” and “Pake-hodai double” subscriptions

*2 Pake-hodai subscription rate= No. of Pake-hodai subscriptions/Total FOMA i-mode subscriptions

Initial Forecast

(30)

Medical

service

Navigation

Tourist

info.

Online

shopping

Security

Deliver

personalized

services

Enrich lineup of content

accessible only from

mobile phones

Mainly

entertainment

Entertainment

5.4 Expansion and Promotion of Video Services

¾ Expand and promote video services to grow packet usage and establish DOCOMO’S reputation for

outstanding video services.

Present

Future

ＢｅｅＴＶ

【Expand usage &

user segments 】

Cultivate broad

user segments,

e.g., senior users, etc.

【

Expand usage &

user segments

】

Cultivate broad

user segments

e.g., senior users

Delivers video content

optimized for mobile

phones

Percentage of subscribers who have joined paid service after free trial period:

Over 75%

Total subscribers:

Topped 650,000

(As of Aug 15, 2009)

Launched:

May 1, 2009

(31)

5.5 Service Personalization “iconcier”

-¾

Deliver personalized information at the most appropriate times and occasions by linking “i-concier”

with location data

Provide notice of limited-time offers of a supermarket to people in the neighborhood

Remind users of time of last train from nearest train station even if they are in different locations than usual

Service examples (conceptual)

Future plans

Growing uptake of “i-concier”

No. of content

At service launch As of Aug 17, 2009

172

381 A mobile service providing customers with various life

support based on individual needs

like a “butler” or a “concierge”

Aim to develop ultimate mobile phones like

“Aladdin’s magic lamp”

Advancement from “Phone capable of X”

to “Phone that will do X for you”

No. of subs

Topped 2.0 million

(As of Aug 17, 2009)

Functional enhancement by linking

“i-concier” with location data

Planned for FY2009/2H

Enrichment of community information

content

Also aim to adopt B-to-B-to-C* model for delivery of information

(32)

5.6 Churn Rate

¾

FY2009/1Q churn rate was 0.44%

0.00 0.50 1.00

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

(％)

0.51 ％

0.44 ％

New discount services (Aug. 07)

New handset purchase method (Nov. 07)

FY2007

FY2008

FY2010

■ Cellular (FOMA + mova) Churn Rate

0.52 ％

0.44 ％

0.52 ％

Dropped further in July and

August 09

Dropped further in July and

August 09

Full

(33)

5.7 Market Share of Net Additions / MNP

¾

DOCOMO’s market share of net additions in FY2009/1Q was 26.3%

(Acquired No.1 share of net additions in July 2009)

¾

MNP subscriber acquisition/loss performance continued to improve

Source: TCA -20 -15 -10 -5 0 06/10 12 07/2 4 6 8 ₁₀ ₁₂ 08/2 4 6 8 ₁₀ ₁₂ 09/2 4 6 8

-20

0

20

40

60

80

100

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

■ Market Share of Net Additions

FY2007 net adds

share : 12.8％

FY

FY20

2007 net adds

07 net adds

share : 12.8

share : 12.8％

％

FY2008 net adds

share : 25.5％

FY

FY20

2008 net adds

08 net adds

share : 25.5

share : 25.5％

％

FY2009FY2009FY2009

au

SoftBank

EMOBILE

docomo

26.3%

FY2009

FY2008

FY2007

■ Monthly net acquisitions/losses of

MNP subscribers

（10,000subs）

Significant decrease in MNP outflows

No.1 share of net adds

in July 09

No.1 share of net adds

in July 09

(34)

5.8 Fixed-Mobile Convergence (FMC)

One Billing for fixed and mobile

(consolidated billing)

“Hikari Mobile myPC Pro”

(remotely access and handle applications on an office PC from the outside through a FOMA handset)

Video telephony communication between FOMA

and fixed-line (IP phone)

“Business mopera IP Centrex”

（IP Centrex to provide mobile phone service outside the office and IP phone service within the office using dual

FOMA/Wireless LAN mobile terminal）

“IP Centrex One Number”

(single phone-number (090) for both inside and outside the office for incoming and outgoing calls)

For Business Users

Content

Application

Network

Services

“goo One Billing”

(single screen display for fixed and mobile billing)

Seamless Mobile-PC services

(advanced search, e-mail services, etc.)

“Pocket U”

(remotely handle videos, images, music, and documents

stored in a home PC from the outside through a FOMA handset)

“FLET’S Home Security”

(remotely monitor homes with network cameras and control home appliances using FOMA handsets)

Video telephony communication between FOMA

and fixed-line (IP phone)

“Home U”

(enable mobile phone service outside the home and high-speed i-mode service and IP phone service at home

by connecting to home broadband network using dual FOMA/Wireless LAN mobile terminal)

“One Number”

(single phone-number (090) for both inside and outside one’s home for incoming and outgoing calls)

Femtocell

(connect to broadband networks subscribed individually by customers）

For Home and Consumers

Billing

Video

Communi-cations

(Planning)

(35)

¾

Create new values by constructing “areas” through installation of Femto BTS

Internet

DOCOMO

network

Content/service provider Broadband network

Femto BTS

Developed high-performance Femto BTS

Converged services

HSPA

*

_-enabled

To be introduced from

Autumn 2009

or beyond

To be introduced from

Autumn 2009

or beyond

* HSPA (High Speed Packet Access) is a general term for HSDPA and HSUPA

Delivery of information and services linked with user

location (inside or outside Femto area)

【Notice】 Steve has returned home 【Notice】 Steve has returned home

Ex) Return to home notice between family members Limited-time sale from 15:00-17:00 today. With a ¥500 discount coupon! ABC Supermarket Limited-time sale from 15:00-17:00 today. With a ¥500 discount coupon! ABC Supermarket Ex) Delivery of flyer/coupon

High-quality & large-capacity content e.g., video and music

Remote control of home appliances

Home

From outside Viewing of high-resolution video

【Planned launch】

Autumn 2009

【Planned launch】

Autumn 2009

(1) Stable communications environment

(dedicated use of bandwidth)

(2) Life/behavior support

(3) Convergence with home appliances

(for future)

5.9 Fixed-Mobile Convergence (FMC)

(36)

5.10 Evolution of Network in

Mobile Communications Business

¾

Steadily advanced the network that sustains DOCOMO’s video and various other services, to

provide “higher speeds” and “larger capacity”

Uplink rate(bps)

HSPA

Launched June 2009

1G

100M

10M

1M

100K

W

-

CDMA

HSDPA

2001

2006

2008

2009

2010

【Planned】

1G

100M

10M

1M

100K

Completed

100% population coverage

Downlinks rate (bps)

Standard spec DL: Max 300M

Standard spec UL: Max75M

DL: 384K

UL: 384K

DL: 3.6M

UL: 384K

DL: 7.2M

UL:384K

DL:7.2M

UL:5.7M

LTE

(Long Term Evolution)

Plan to introduce LTE in 2010

as one of the world’s early adopters

Progressive evolution of radio network

(37)

5.11 NTT DOCOMO’s LTE

¾ Plan to launch LTE in December 2010 as one of the first adopters in the world with 3G/LTE dual-mode

devices. LTE areas to be expanded gradually using an overlay approach to existing 3G coverage.

3G area

LTE area

・ Roll-out first from areas where demand for

high-speed access is high

Introduce LTE using 2GHz band spectrum first,

And then expand to 1.5Ghz band

・ Start service with card-type devices

・ Handset type to be offered from

2011 or beyond

High -speed access within LTE areas

+ benefits of nationwide 3G coverage

Spectrum

・Aim to achieve by the end of FY2014

…

Area coverage:

Approx. 20,000 base stations covering

approx. 50% of populated area s in Japan

Total capital expenditures for next 5 years

(up to FY 2014) estimated to be ¥300-400

billion

Coverage

_{Devices/Handsets}

3G/LTE dual-mode devices

CAPEX Plan

Spectrum

(38)

6.1 NTT DATA’s Consolidated Net Sales by Sector

0

2

4

6

8

10 NTT DATA

NTT DATA’

’s Consolidated

s Consolidated

Net Sales by Sector

<FY200

8

8 >

>

42％

22％

33％

3％

（¥ Trillion）

16％

24％

60％

NTT DATA’s share of

Public Administration

sector market holding

steady at about 15%

¥1.1390 trillion

¥10.4829 trillion

Public

Administration

sector

Financial

sector

Industrial

sector

Others

Public

Administration

sector *

Financial

sector

Industrial

sector

*Others: maintenance and operations, etc.

NTT DATA’s

share of Industrial

sector market

holding steady at

about 6%

IT Services Market in Japan

［

Moderate

_Moderate

_Case

Case

］

<2008>

【Source：Gartner ” Japan IT Services Market Forecast by Industry, June 2009”, Chiaki Morikawa, 20 August 2009 】

[ ]:2007-2008 market growth rate

[1.4％]

[2.4％]

[1.0％]

NTT DATA’s share of

Financial sector

market holding steady

at about 19%

*Public Administration sector

(39)

¾ The comprehensive strengths of NTT Group will be utilized and the total services line-up and service

areas will be expanded so that revenues from global businesses in FY2010 will be double the level of

FY2007.

7.1 Global Business Development

Only major subsidiaries and investment targets are listed

US

Europe

Asia

Emerging nations

Network services

Managed services

(performance / security

monitoring, etc.)

Data centers /

Hosting

Mobile

Application development

Consulting

Increased roaming revenue

NTT-WT

Data center Data center Data center Security operations Center (Japan, Singapore) (

NTT America

NTT Europe

Subsidiaries in Asia

Provision of global network integration

TTSL

TMIB

PLDT

Enhancement for managed services and data center businesses, standardization of global operation

IR Road Show Reference Materials. October 2009

IR Road Show

Reference Materials

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, 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.

***

“1Q” in this material represents the 3-month period beginning on April 1 and ending on June 30.

****

“2Q (3m)”in this material represents the 3-month period beginning on July 1 and ending on September 30

*****

“2Q (6m cum.)” in this material represents the 6-month period beginning on April 1 and ending on September 30.

****** “3Q”and “4Q” in this material represent the 3-month periods beginning on October 1 and January 1 and ending on

Table of Contents

1. Broadband Market

2. NGN

3. Promotion of Optical Access

4. Upper Layer Services

5. Mobile Communication Business

6. IT Services

7. International Operations

8. Environment Related Initiatives

9. Corporate Governance

10. Regulations

11. Other Data

Mobile subscribers

113.02 M （June 2009）

Fixed-line subscribers

have declined since 1998

3G mobile subscribers

102.07 M（June 2009）

Broadband subscribers

30.91M (June 2009)

1.1 Telecom Service Subscriptions in Japan

Telephone/ISDN subscribers

46.27 M (June 2009)

1.2 Faster and Diversified Broadband Access

ＤＳＬ subscribers

（Approx.11M)

～50Mbps

～100Mbps

～160Mbps

Internet / Broadband Network

Internet / Broadband Network

ＦＴＴＨ subscribers

（Approx.16M）

3G Mobile

subscribers

（Approx.102M）

ＣＡＴＶ subscribers

（Approx.4M）

Public WiFi

subscribers

（Approx.8M）

WiMAX/

Next Generation

PHS subscribers

～20Mbps

（Next Generation

PHS）

～54Mbps

～100Mbps

（LTE）

～7.2Mbps

～40Mbps