<PAGE>
THE TOTAL NUMBER OF PAGES CONTAINED IN THIS DOCUMENT IS 14
FORM 6-K
--------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of November 1998
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
(Translation of registrant's name into English)
19-2, NISHI-SHINJUKU 3-CHOME
SHINJUKU-KU, TOKYO 163-19, JAPAN
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-__________.
<PAGE>
2
INTERIM RESULTS:
On November 20, 1998, the registrant filed with the Tokyo Stock Exchange
and other stock exchanges in Japan a press release which included information as
to the registrant's financial condition and results of operations at and for the
six-month period ended September 30, 1998. Enclosed is a copy of an English
translation of the press release. The financial information included in the
press release filed with the stock exchanges in Japan was prepared on the basis
of accounting principles generally accepted in Japan and, accordingly, is not
directly comparable to the financial information included in the registrant's
Annual Report on Form 20-F for the fiscal year ended March 31, 1998 which
information was prepared on the basis of accounting principles generally
accepted in the United States. The financial statements filed with the stock
exchanges in Japan included the non-consolidated balance sheet and statements of
income of the registrant as well as the results of the operations of the
registrant and its subsidiaries on a consolidated basis.
The earning projections for the current fiscal year ending March 31,
1999 contained in the attached press release is a forward-looking statement.
The registrant desires to qualify for the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, and consequently is hereby
filing cautionary statements identifying important factors that could cause the
registrant's actual results to differ materially from those set forth in the
attachment.
The registrant's earning projections are based on a series of
projections and estimates regarding the economy and the telecommunications
industry in Japan in general. The projections and estimate regarding the
telecommunications industry may be affected by pricing of services, the effects
of competition, and the success of new products and services and new businesses.
No assurance can be given that the registrant's actual result will not
vary significantly from the projected earnings.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
NIPPON TELEGRAPH AND TELEPHONE
CORPORATION
By: /s/ Mototane Miyazaki
-----------------------------------
Name: Mototane Miyazaki
Title: Executive Manager
General Affairs Department
Date: November 20, 1998
<PAGE>
NTT
[LOGO]
NIPPON TELEGRAPH AND TELEPHONE
NEWS RELEASE CORPORATION
- ------------ ------------------------------
Telephone 03-5353-5035
20-2 Nishi-Shinjuku 3-Chome Shinjuku-ku
Tokyo 163-1419 Japan
November 20, 1998
FOR IMMEDIATE RELEASE
NTT Announces First-Half Results for Fiscal Year
Ending March 31, 1999
Nippon Telegraph and Telephone Corporation (NTT) announced today its
non-consolidated financial results based on Japanese accounting principles for
the period from April 1 to September 30, 1998. Operating revenue was 3,029.5
billion yen, a 3.9 percent decrease from the same period of the previous fiscal
year. Recurring profit was 123.1 billion yen, a 40.6 percent decrease, and net
income was 63.0 billion yen, a 53.9 percent decrease.
On a consolidated basis, the group posted operating revenue of 4,711.6 billion
yen, up 1.6 percent, recurring profit was 404.5 billion yen, a 15.4 percent
increase, and net income was 264.9 billion yen, up 48.6 percent.
The Japanese economy in the reporting period remained stagnant due to weak
consumer spending and remarkably lower capital investment by small and
middle-size firms.
In the telecommunications industry, a wide range of new services resulted from
rapid progress achieved with digital technology. Full-scale competition in both
the local and long-distance telecommunications markets enabled customers to
select telecommunications operators strictly on the basis of services and fees.
NTT improved the convenience of its services and strengthened its
competitiveness. It inaugurated in December 1996 the Open Computer Network
(OCN), which provides low-cost, 24-hour Internet connection. NTT added to this
service, "Super OCN," a secure, high-quality service designed for high-traffic
<PAGE>
Internet users, such as universities and corporations. Competitiveness was
improved by introducing more "Digital Access" low-priced, reduced-scope leased
circuit services, such as the "Digital Access 1500" for communication within
30 kms and "Digital Reach" for communication exceeding 30 kms. NTT also stepped
up corporate sales activities, mainly by establishing client-server systems, to
capitalize on the increasing number of corporations that reviewed their
telecommunications systems as part of general restructuring.
Arcstar-brand global communications services, launched through NTT subsidiaries
in September 1997, were provided in 12 countries and areas as of the end of this
past September. They are being used by domestic and foreign corporate customers.
To expand the functions of these services, NTT formed a strategic partnership by
investing in Verio Inc., a U.S.-based Internet service provider. Starhub, a
consortium formed by NTT, British Telecom and two local corporations, won
licenses from the Singaporean government to provide public basic
telecommunication services, both domestic and international, and public cellular
mobile telephone services, which are expected to start in April 2000 in
Singapore. In China, NTT established Beijing Telecom NTT Engineering Co., Ltd.
with the Beijing Telecommunications Administration and began to provide system-
integration services for customers mainly in the Beijing area.
NTT further strengthened its operational flexibility in July by transferring its
submarine cable engineering business to NTT World Engineering Marine (NTT-WE
Marine), which was established in March 1998.
The corporation actively opened up its network to other telecommunications
carriers and responded quickly to requests for network interconnection, such as
interconnection with local switches for long-distance telecommunications
carriers, who previously could connect with tandem switches only.
NTT also announced today the first-half business results of its major services.
Steady sales of INS-Net services contributed to ordinary telephone subscriber
lines decreasing to 59.46 million, a drop of 0.72 million from the end of March.
Lines for "INS-Net 64" services climbed to 759 thousand up 27.2 percent from a
<PAGE>
year earlier. High-speed digital circuits grew to 195 thousand up 26 thousand
from the end of March.
NTT also announced that an interim cash dividend of 2,500 yen per share will be
paid to shareholders on record as of the close of September 30, 1998. The
interim dividend is scheduled to be paid on December 11, 1998.
NTT's non-consolidated operating revenue, recurring profit and net income for
the current fiscal year ending March 31, 1999 are forecasted to be 6,192 billion
yen, 259 billion yen and 434 billion yen, respectively. Also, NTT's consolidated
operating revenue, recurring profit and net income for the same fiscal year are
expected to be 9,602 billion yen, 616 billion yen and 624 billion yen,
respectively.
The annual cash dividend for the fiscal year ending March 31, 1999 is forecasted
to be 10,000 yen per share, including the above mentioned interim dividend of
2,500 yen per share.
All financial information stated in this release was prepared on the basis of
generally accepted accounting principles in Japan.
# # #
For further information, please contact:
Norihiko Ohkubo or Megumi Inaji
Overseas Public Relations
Global Business Headquarters
Telephone: (03) 5353-5035
e-mail:[email protected]
<PAGE>
(Reference)
The consolidated financial results cover NTT and 40 subsidiaries.
Firms included in consolidated first-half results of the fiscal year
ending on March 31, 1999 (40 companies):
NTT Data Corporation
NTT Mobile Communications Network Inc.
NTT Hokkaido Mobile Communications Network Inc.
NTT Tohoku Mobile Communications Network Inc.
NTT Tokai Mobile Communications Network Inc.
NTT Hokuriku Mobile Communications Network Inc.
NTT Kansai Mobile Communications Network Inc.
NTT Chugoku Mobile Communications Network Inc.
NTT Shikoku Mobile Communications Network Inc.
NTT Kyushu Mobile Communications Network Inc.
NTT Hokkaido Estate Co., Ltd.
NTT Urban Development Co.
NTT Tokai Real Estate Corporation
NTT Kansai Building Co.
NTT Cred Co., Ltd.
NTT Kyushu Real Estate Corporation
NTT Power and Building Facilities Inc.
NTT Telecom Engineering Hokkaido Co., Ltd.
NTT Telecom Engineering Tohoku Co., Ltd.
NTT Telecom Engineering Kanto Co., Ltd.
NTT Telecom Engineering Tokyo Co., Ltd.
NTT Telecom Engineering Shinetsu Co., Ltd.
NTT Telecom Engineering Tokai Co., Ltd.
NTT Telecom Engineering Hokuriku Co., Ltd.
NTT Telecom Engineering Kansai Co., Ltd.
NTT Telecom Engineering Chugoku Co., Ltd.
NTT Telecom Engineering Shikoku Co., Ltd.
NTT Telecom Engineering Kyushu Co., Ltd.
NTT-Do Inc.
<PAGE>
NTT Teleca Corporation
NTT Hokkaido Personal Communications Network Inc.
NTT Tohoku Personal Communications Network Inc.
NTT Central Personal Communications Network Inc.
NTT Tokai Personal Communications Network Inc.
NTT Hokuriku Personal Communications Network Inc.
NTT Kansai Personal Communications Network Inc.
NTT Chugoku Personal Communications Network Inc.
NTT Shikoku Personal Communications Network Inc.
NTT Kyushu Personal Communications Network Inc.
NTT Communicationware Corporation
# # #
<PAGE>
Attachment 1
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
NON-CONSOLIDATED BALANCE SHEET
------------------------------
(Based on Japanese Accounting Principles)
<TABLE>
<CAPTION>
March 31, 1998 September 30, 1998
------------- -------------------------
Millions Millions Millions
of Yen of Yen of US$
------ ------ ------
<S> <C> <C> <C>
ASSETS
- ------
FIXED ASSETS 9,404,747 9,243,679 68,471
CURRENT ASSETS 1,433,898 1,346,733 9,975
TOTAL ASSETS 10,838,646 10,590,413 78,447
---------- ---------- ------
LIABILITIES
- -----------
LONG-TERM LIABILITIES:
Long-term debt 2,315,090 2,406,761 17,827
Liability for employees' severance payments 2,059,139 2,102,429 15,573
Other 74,916 18,840 139
Total long-term liabilities 4,449,146 4,528,030 33,540
---------- ---------- ------
CURRENT LIABILITIES:
Current portion of long-term debt 403,823 300,674 2,227
Accounts payable, trade 520,734 422,885 3,132
Accrued taxes on income 30,122 35,952 266
Other 833,685 678,623 5,026
Total current liabilities 1,788,365 1,438,135 10,652
---------- ---------- ------
TOTAL LIABILITIES 6,237,512 5,966,166 44,193
========== ========== ======
SHAREHOLDERS' EQUITY
- --------------------
Common stock 795,600 795,600 5,893
Additional paid-in capital 2,530,476 2,530,476 18,744
Legal reserve 99,477 103,475 766
Special depreciation reserve 59,507 64,196 475
General reserves 895,000 895,000 6,629
Unappropriated retained earnings 221,072 235,498 1,744
---------- ---------- ------
TOTAL SHAREHOLDERS' EQUITY 4,601,133 4,624,247 34,253
---------- ---------- ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 10,838,646 10,590,413 78,447
========== ========== ======
</TABLE>
Note: Yen amounts have been translated, for convenience only, at
(Yen)135=US$1.00, the approximate exchange rate on September 30, 1998.
Fractions are rounded down.
<PAGE>
Attachment 2
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
NON-CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------
(Based on Japanese Accounting Principles)
Six-months Ended September 30
-----------------------------------
1997 1998
-------- -------------------
Millions Millions Millions
of Yen of Yen of US$
------ ------ ------
OPERATING REVENUES 3,153,292 3,029,568 22,441
OPERATING EXPENSES 2,911,287 2,889,474 21,403
OPERATING INCOME 242,005 140,094 1,037
NON-OPERATING REVENUES 44,109 55,889 413
NON-OPERATING EXPENSES 78,847 72,842 539
RECURRING PROFIT 207,266 123,142 912
EXTRAORDINARY LOSS -- 31,751 235
INCOME BEFORE TAXES 207,266 91,390 676
CORPORATION AND
INHABITANT TAXES 70,500 28,300 209
NET INCOME 136,766 63,090 467
------- ------ ---
Note: Yen amounts have been translated, for convenience only, at
(Yen)135=US$1.00, the approximate exchange rate on September 30, 1998.
Fractions are rounded down.
<PAGE>
Attachment 3
Business Results (Non-consolidated Operating Revenues)
------------------------------------------------------
<TABLE>
<CAPTION>
(Millions of Yen)
- ------------------------------------------------------------------------------------------------------------------------
Six-months Ended Six-months Ended Increase Fiscal Year Ended
Service September 30, 1997 September 30, 1998 (Decrease) March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Telephone Services 2,284,382 2,050,377 (234,005) 4,453,799
Telex Services 778 611 (166) 1,428
Telegram Services 44,044 40,354 (3,689) 90,781
Leased Circuit Services 292,242 315,999 23,757 605,761
Digital Data Exchange Services 26,262 31,857 5,594 54,641
ISDN Services 178,477 268,880 90,403 411,568
Other Services 164,912 169,049 4,136 344,104
Telecommunications
Total Revenues 2,991,100 2,877,131 (113,969) 5,962,085
- ----------------------------------------------------------------------------------------------------------------------
Related Business
Total Revenues 162,191 152,437 (9,754) 360,258
- ----------------------------------------------------------------------------------------------------------------------
Total Operating Revenues 3,153,292 3,029,568 (123,723) 6,322,344
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
Notes: Fractions are rounded down.
<PAGE>
Attachment 4
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
CONSOLIDATED BALANCE SHEET (UNAUDITIED)
---------------------------------------
(Based on Japanese Accounting Principles)
<TABLE>
<CAPTION>
March 31, 1998 September 30, 1998
------------- -------------------------
Millions Millions Millions
of Yen of Yen of US$
-------- -------- --------
<S> <C> <C> <C>
ASSETS
- ------
FIXED ASSETS 12,751,322 12,823,367 94,987
CURRENT ASSETS 2,371,958 2,199,656 16,293
---------- ---------- -------
TOTAL ASSETS 15,123,280 15,023,023 111,281
========== ========== =======
LIABILITIES
- -----------
LONG-TERM LIABILITIES:
Long-term debt 4,671,113 4,672,140 34,608
Liability for employees' severance payments 2,197,599 2,252,384 16,684
Other 180,878 181,340 1,343
Total long-term liabilities 7,049,592 7,105,865 52,636
---------- ---------- ------
CURRENT LIABILITIES:
Current portion of long-term debt 811,781 692,244 5,127
Accounts payable, trade 635,523 506,459 3,751
Short-term borowings 341,995 334,689 2,479
Accrued taxes on income 192,553 134,603 997
Other 1,173,748 949,188 7,031
Total current liabilities 3,155,601 2,617,185 19,386
---------- ---------- ------
TOTAL LIABILITIES 10,205,193 9,723,050 72,022
========== ========== ======
MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES 118,826 206,552 1,530
SHAREHOLDERS' EQUITY
- --------------------
Common stock 795,600 795,600 5,893
Additional paid-in capital 2,530,476 2,530,476 18,744
Legal reserve 99,477 -- --
Retained earnings 1,373,748 1,767,367 13,091
Treasury stock (42) (22) (0)
---------- ---------- ------
TOTAL SHAREHOLDERS' EQUITY 4,799,260 5,093,420 37,729
---------- ---------- ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 15,123,280 15,023,023 111,281
========== ========== =======
</TABLE>
Note: Yen amounts have been translated, for convenience only, at
(yen)135=US$1.00, the approximate exchange rate on September 30, 1998.
Fractions are rounded down. Pursuant to an amendment of the Regulations
Concerning Terminology, Forms and Preparation Method of Consolidated
Financial Statements. "Legal reserve" as of September 30, 1998 has been
reclassified and included in "Retained earnings."
<PAGE>
Attachment 5
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
CONSOLIDATED BALANCE SHEET (UNAUDITED)
--------------------------------------
(Based on Japanese Accounting Principles)
Six-months Ended September 30
-----------------------------------
1997 1998
----------- -------------------
Millions Millions Millions
of Yen of Yen of US$
------ ------ ------
OPERATING REVENUES 4,637,146 4,711,693 34,901
OPERATING EXPENSES 4,184,909 4,217,604 31,241
OPERATING INCOME 452,236 494,089 3,659
NON-OPERATING REVENUES 29,319 37,731 279
NON-OPERATING EXPENSES 130,972 127,274 942
RECURRING PROFIT 350,583 404,546 2,996
INCOME BEFORE TAXES 350,583 404,546 2,996
CORPORATION AND 159,234 -- --
INHABITANT TAXES
CORPORATION, INHABITANT
AND ENTERPRISE TAXES -- 132,207 979
MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES 13,036 7,361 54
NET INCOME 178,312 264,977 1,962
-------- ------- -----
Note: Yen amounts have been translated, for convenience only, at
(yen)135-US$1.00, the appropriate exchange rate on September 30, 1998.
Fractions are rounded down. Pursuant to an amendment of the Regulations
Concerning Terminology, Forms and Preparation Method of Consolidated
Financial Statements, enterprise tax of (yen)28,055 million for the six-
month period ended September 30, 1998 has been reclassified and included
in "Corporation, Inhabitant and Enterprise Tax," though enterprise tax,
for the six-month period ended September 30, 1997 was included in
"Operating Expenses." As a result, both "Operating Income" and "Recurring
Profit" for the six-month period ended September 30, 1998 increased by
(yen)28,055 million as compared with results determined prior to
reclassification of enterprise tax.
<PAGE>
Attachment 6
NTT's Shares and Shareholders (as of September 30, 1998)
--------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Classification by Holders
- --------------------------------------------------------------------------------------------------------------------------------
Details
-------------------------------------------------------------------------------------------------------- Odd-lot
Government Other Foreign Domestic Shares
and public Financial Securities Domestic Corporations, etc. Individuals, Total
bodies Institutions Firms Corporations (Individuals) etc.
- --------------------------------------------------------------------------------------------------------------------------------
1,128
Total Holders 4 723 161 14,733 (72) 1,273,603 1,290,352
- ---------------------------------------------------------------------------------------------------------------------------------
Total 1,195,033
Shares 10,419,343 1,389,265 14,413 361,318 (305) 2,485,226 15,864,598 47,402
----------------------------------------------------------------------------------------------------------------------------
% % 7.53
65.68 8.76 0.09 2.28 (0.00) 15.66 100
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. "Other Domestic Corporations" includes 3,285 shares under the name of Japan
Securities Depository Center and "Odd-lot Shares" includes 0.72 shares also
under the name of Japan Securities Depository Center.
2. "Domestic Individuals, etc." includes 32 shares of treasury stock and "Odd-
lot Shares" includes 0.94 shares of treasury stock. The actual number of
treasury stocks at the end of March 31, 1998 was 22.94.
3. The number of shareholders who own only odd-lot shares is 201,052.
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2. Classification by Number of Shares
- --------------------------------------------------------------------------------------------------------------------------------
Details
------------------------------------------------------------------------------------------------------- Odd-lot
At Least At Least At Least Shares
1,000 500 100 At Least 50 At Least 10 At Least 5 At Least 1 Total
- --------------------------------------------------------------------------------------------------------------------------------
Number of
Holders 281 171 1,162 1,167 21,595 52,720 1,213,256 1,290,352
----------------------------------------------------------------------------------------------------------------------------
%
0.02 0.01 0.09 0.09 1.67 4.09 94.03 100
- ---------------------------------------------------------------------------------------------------------------------------------
Total
Shares 13,072,091 118,307 229,737 76,221 332,351 314,370 1,721,521 15,864,598 47,402
----------------------------------------------------------------------------------------------------------------------------
%
82.40 0.75 1.45 0.48 2.09 1.98 10.85 100
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. "At Least 1,000" includes 3,285 shares under the name of Japan Securities
Depository Center and "Odd-lot Shares" includes 0.72 shares under the name
of Japan Securities Depository Center.
2. "At Least 10" includes 32 shares of treasury stock and "Odd-lot Shares"
includes 0.94 shares of treasury stock.
<TABLE>
<CAPTION>
3. Principal Shareholders
- ----------------------------------------------------------------------------------------------------------------------------
Name Share Holdings Percent of Total Shares issued
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
The Minister of Finance 10,419,289.24 65.48%
State Street Bank and Trust Company 208,917.00 1.31
NTT Employee Share-Holding Association 150,675.22 0.95
The Sumitomo Trust & Banking Co., Ltd. 131,083.00 0.82
The Mitsubishi Trust and Banking Corporation 107,634.00 0.68
The Chase Manhattan Bank, N.A. London 89,695.00 0.56
Nippon Life Insurance Company 85,120.68 0.53
The Toyo Trust & Banking Co., Ltd. 81,103.00 0.51
Morgan Stanley Trust Company--Taxable Client Account 73,762.00 0.46
The Chuo Trust & Banking Co., Ltd. 69,046.00 0.43
- ----------------------------------------------------------------------------------------------------------------------------
Total 11,416,325.14 71.75
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
