NTT (9432) Investor Day 2024 summary

Consumer and Business Growth Strategy

• Targeting a reversal in ARPU trend to reach JPY 4,200 by FY2027, with upselling and new service offerings.

• Aims to increase consumer business revenue by at least JPY 350 billion by FY2027, focusing on Smart Life, entertainment, finance, and marketing solutions.

• Plans to expand loyal young and middle-aged user share to over 30% of retail subscribers by FY2027 through targeted marketing.

• Entertainment, finance, and marketing businesses target JPY 310B, JPY 630B, and JPY 270B revenue respectively in FY2027.

• Portfolio adjustments include investing ¥300B in new businesses, strengthening enterprise (¥750B) and fiber optic (¥1,400B) segments, and exiting unprofitable services.

Network, Fiber Optic, and Operational Efficiency Initiatives

• Aggressively expanding Sub-6 5G areas by 30% by end of FY2024, with full vRAN introduction in FY2025.

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

• DX and AI will automate front- and back-office operations, targeting a ¥18B profit improvement and halving headcount by FY2027.

• Facility operations workforce to be reduced by 25%, aiming for JPY 11B profit improvement, with automation and zero-touch operations.

• Exiting unprofitable consumer line services and promoting digital invoicing are expected to add JPY 13.5B profit by FY2027.

Regional, Enterprise, and New Business Development

• Regional fiber optic business faces slowing growth, but enterprise and network demand is rising due to digitalization and AI.

• Enterprise network business aims for a ¥25B profit increase by FY2027, leveraging regional connections and cloud integration.

• Comic C'MOA and original content production target sales growth from ¥80B (FY2023) to ¥100B (FY2027), including global expansion.

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

• New business initiatives include expanding Solmare’s digital content and NTT e-Asia’s overseas infrastructure projects, with strict KPI and profitability monitoring.