<PAGE>
THE TOTAL NUMBER OF PAGES CONTAINED IN THIS DOCUMENT IS 60
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 1999
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
---
<PAGE>
2
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):
82-____________.
<PAGE>
3
ANNOUNCEMENT OF FINANCIAL RESULTS FOR FIRST HALF OF FISCAL YEAR ENDING MARCH 31,
2000
On November 24, 1999, the registrant filed with the Tokyo Stock
Exchange and other stock exchanges in Japan information as to the registrant's
financial condition and results of operations for the first half of the fiscal
year ending March 31, 2000 as well as the financial condition and results of
operation for the same period of the registrant's three wholly-owned
subsidiaries (collectively, the "Subsidiaries"): Nippon Telegraph and Telephone
West Corporation, Nippon Telegraph and Telephone East Corporation and NTT
Communications Corporation. Attached hereto are copies of four press releases
dated November 24, 1999 pertaining to the financial condition and results of
operations of the registrant and such Subsidiaries, as well as forecasts for the
operations of the registrant and such Subsidiaries for the remainder of the
fiscal year ending March 31, 2000. The financial information included in the
press releases was prepared on the basis of accounting principles generally
accepted in Japan and, accordingly, will not be directly comparable to the
financial information to be included in the registrant's Annual Report on Form
20-F for the fiscal year ending March 31, 2000, which information will be
prepared on the basis of accounting principles generally accepted in the United
States.
The earning projections by the registrant and the Subsidiaries for the
fiscal year ending March 31, 2000 included in the attachment contain forward-
looking statements. 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 and Subsidiaries' actual results to
differ materially from those set forth in the attachment.
Such 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 estimates regarding the telecommunications industry
may be affected by the pricing of services, the effects of competition, and the
success of new products, services and new business.
No assurance can be given that the registrant and Subsidiaries' actual
results 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/ KAZUTO TSUBOUCHI
---------------------
Name: Kazuto Tsubouchi
Title: Senior Manager
Investor Relations Group
Department IV
Date: November 24, 1999
<PAGE>
November 24, 1999
FOR IMMEDIATE RELEASE
NTT Announces Results from First-Half of Fiscal Year
Ending March 31, 2000
1. Business Operation Plan
(1) Basic Business Operation Plan
In response to growing competition in the information communication markets and
the changing business environment, Nippon Telegraph and Telephone Corporation
(NTT) was reorganized on July 1, 1999 to form a holding company and three
wholly-owned operating companies consisting of two regional operators (Nippon
Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West
Corporation) and NTT Communications Corporation. Nippon Telegraph and Telephone
East Corporation covers the areas of Hokkaido, Tohoku, Kanto, Tokyo, and
Shinetsu, while Nippon Telegraph and Telephone West Corporation covers the areas
of Tokai, Hokuriku, Kansai, Chugoku, Shikoku, and Kyushu. These two regional
companies are responsible for intra-prefectural communication services, while
NTT Communications Corporation is responsible for inter-prefectural
communication services and has advanced into international communications
businesses.
The following arrangements have been made under the terms of the reorganization.
(1) The holding company owns all shares of the above three companies and other
group subsidiaries. The holding company has been assigned leadership and
coordinating functions for actively promoting the
1
<PAGE>
management of the NTT Group. It is also responsible for promoting basic research
and development and the effective utilization of research and development
results. (2) The holding company provides comprehensive administrative services
for basic research and development and receives compensation from group
companies utilizing these research and development results under a contract
concluded between NTT and the group companies. The holding company also receives
compensation from consolidated group companies for the provision of
comprehensive administrative services pertaining to the management of the NTT
Group, in accordance with a contract between NTT and the consolidated group
companies. (3) Customer services provided by NTT before the reorganization will
be provided by the above three companies which have acquired the operations of
NTT.
We believe this reorganization provides us with an excellent opportunity for
responding to the changing business environment and look forward to maximizing
the advantages of a pure holding company in the promoting the management of the
NTT Group.
The NTT Group will not only provide conventional telephone services, but will
also seek to exploit its digital network by aggressively developing new
information distribution markets, including platforms for distributing content.
Through these strategies, the NTT Group will seek to become a "Global
Information-Sharing Corporate Group."
(2) Basic Principles Concerning Profit Allocation
Nippon Telegraph and Telephone Corporation believes it is very important for it
to reinforce its financial standing and to serve the best interests of
shareholders over the long run. As such, NTT has adopted as its basic principle
the payment
2
<PAGE>
of appropriate dividends while acting to secure necessary levels of internal
reserves.
Such internal reserves will be utilized to reinforce NTT's financial standing.
2. Business Results
(1) Results from First-Half of Fiscal Year Ending March 31, 2000
During the six-month period under review, the Japanese economy showed some signs
of improvement, including a mild recovery in personal consumption. However, a
full-fledged recovery proved elusive as a consequence of the continued bleak
employment outlook and other negative developments.
In the telecommunications markets, the sharp increase in mobile telephone and
Internet users has resulted in a major shift in demand from conventional
telephone services to mobile and digital data transmission services. Along with
this, market conditions have become increasingly competitive with the growing
diversity in services and fee structures, and the entry of foreign firms and new
participants from other industries.
In this business environment, and in response to the growing use of the
Internet, prior to its reorganization, NTT launched various initiatives during
the April-June quarter to offer a more varied menu of services and fees for OCN
services. Specifically, the fixed-rate connection time was lengthened for the
"OCN Dial Access Long" service, and the fixed-rate charge for 128 kb/s "Super
OCN" services was lowered.
NTT also launched a joint experimental program for electronic money. Named
3
<PAGE>
the "Super Cash" program, NTT joined hands with 23 domestic banks to take an
important step toward the promotion of electronic commerce.
As of June 30, 1999, the number of principal installations was as follows.
The total number of subscriber telephone lines installed was at 57.74 million as
of June 30, 1999, representing a decrease of 0.54 million lines over the end of
the previous fiscal year.
In the area of INS-net digital services, the number of INS-net 64 lines
installed totaled 4.47 million as of June 30, 1999, representing an increase of
0.52 million lines over the end of the previous fiscal year.
In the area of leased circuit services, the number of high-speed digital
transmission lines came to 247 thousands as of June 30, 1999, representing an
increase of 19 thousands lines over the end of the previous fiscal year.
Since July 1, 1999, NTT has functioned as a pure holding company in charge of
basic research and development and the active promotion of the management of the
NTT Group. In addition to research and development to develop future networks
with autonomous flexibility, NTT has promoted joint experiments to examine
potentials for telemedicine, information distribution, and information
appliances using high-speed networks. In this new role, NTT has been receiving
payment from group companies in compensation for the comprehensive
administrative services it has provided in support of the management of the
entire NTT Group and for basic research and development activities.
Pursuant to these activities, NTT's results from the first-half of the fiscal
year ending March 31, 2000 were as follows. Operating revenues amounted to
4
<PAGE>
1,528.8 billion yen, down 49.5% from the same period of the previous year.
Recurring profit amounted to 106.3 billion yen, down 13.6% from the same period
of the previous year, while net income for the six-month period came to 149.1
billion yen, up 136.3% from the same period of the previous year.
The sharp decline in business performance reflects the divestiture of NTT East,
NTT West and NTT Communications on July 1, 1999. Eliminating the impact of the
divestiture, NTT's business performance would be as follows: operating revenues
would amount to 2,990.8 billion yen (down 1.3% from the same period of the
previous year), recurring profit would amount to 121.7 billion yen (down 1.1%
from the same period of the previous year), and net income would amount to 117.6
billion yen (up 86.5% from the same period of the previous year).
In accordance with NTT's above-stated basic principle, an interim cash dividend
of (Yen)2,500 per share will be paid to shareholders.
Since July 1, 1999, NTT East and NTT West have been responsible for providing
customer services in their respective areas of coverage. Both companies have
actively pursued the development of new services and business opportunities.
For instance, to promote the use of the Internet in schools, the two companies
have launched the "i-School" program, an experimental service offering
discounted rates to schools. On its part, NTT Communications has lowered the
fixed rates on its "Super Relay FR" system and has been working to reduce
network costs with the introduction of its "Arcstar Value Access" system
enabling the integration of access lines for various types of services.
On a consolidated basis, NTT's results from the first-half of the fiscal year
ending March 31, 2000 were as follows. Operating revenues amounted to 5,009.1
billion yen, up 6.3% from the same period of the previous year.
5
<PAGE>
Recurring profit amounted to 492.2 billion yen, up 21.7% from the same period of
the previous year, while net income for the six-month period came to 240.4
billion yen, down 9.3% from the same period of the previous year.
(2) Projections for Fiscal Year Ending March 31, 2000
Regarding the second half of the current fiscal year, projections indicate that
although the economy will proceed on a mild recovery path, conditions will not
necessarily allow for optimism.
Competition in the information communication markets is expected to become more
severe with the entry of new participants from other industries and the
continued trend toward mergers and affiliations among existing telecommunication
enterprises.
Against this background, NTT is committing itself to promoting the continued
development of the entire NTT Group and to maximizing its value. In this regard,
NTT will seek the optimal allocation of management resources, and will aim to
diversify and to expand the operations of the Group through the formulation and
implementation of Group strategies. In addition, NTT will actively undertake
basic research and development activities which constitute the source of the
competitive advantages of the NTT Group.
Projections for the fiscal year ending March 31, 2000 are as follows. Operating
revenues are projected to reach 1,701 billion yen (down 72.3% from the same
period of the previous year). Recurring profit is projected to amount to 121
billion yen, (down 49.0% from the same period of the previous year), while net
income is expected to reach 99 billion yen (down 74.4% from the same period of
the previous year).
6
<PAGE>
The sharp decline in business performance reflects the divestiture of NTT East,
NTT West and NTT Communications on July 1, 1999. Eliminating the impact of the
divestiture, NTT's projected business performance would be as follows: operating
revenues would amount to 6,063 billion yen (down 1.2% from the same period of
the previous year), recurring profit would amount to 201 billion yen (down 15.3%
from the same period of the previous year), and, with the additional
appropriation of funds at the end of the fiscal year to cover accrued retirement
allowances, loss for the fiscal year would amount to 284 billion yen, and net
change in retained earnings would amount to 304 billion yen (down 21.3% from the
same period of the previous year), taking into cumulative effect for prior
year's tax allocation.
On a consolidated basis, operating revenue is expected to be 10,359 billion yen,
recurring profit is expected to be 730 billion yen, and with the additional
appropriation of funds at the end of the fiscal year to cover accrued retirement
allowances, loss for the fiscal year is estimated to amount to 126 billion yen,
and net change in retained earnings is expected to be 521 billion yen, taking
into cumulative effect for prior year's tax allocation.
For the fiscal year ending March 31, 2000, we expect to offer common dividends
of (Yen)5,000 per share.
All financial information stated in this release was prepared on the basis of
generally accepted accounting principles in Japan.
7
<PAGE>
3. Coping With the Year 2000 Problem
1. Status of Y2K Compliance
(1) Action Policy
As one of the principal supporters of Japan's entire telecommunications system,
NTT believes that the achievement of Y2K compliance represents an extremely
vital management goal. NTT has undertaken all necessary measures to assure Y2K
compliance as part of its continued efforts to provide stable and uninterrupted
telecommunication services.
(2) Action Framework
NTT has consistently taken early action for the achievement of Y2K compliance.
Internal studies were initiated in March 1995 and a company-wide "Y2K Compliance
Project" was launched in November 1995. A further step was taken in December
1997 with the launching of the "Compliance Project" covering the computer
systems sold by NTT to outside customers.
In the process of the corporate reorganization undertaken this year, NTT was
initially divided into four "transition headquarters," each of which included a
Y2K committee placed under the chairmanship of a responsible director. In
addition, a liaison meeting was established to coordinate the compliance
activities of the transition headquarters. This framework for coordinated action
has been retained after the completion of reorganization with the respective
compliance committees of the NTT companies working in cooperation to achieve
complete compliance.
8
<PAGE>
(3) Progress Made in Y2K Compliance
The computer systems used by NTT to support its telecommunications operations
fall into two broad categories: the node system (covering network facilities),
and internal operations systems which cover such administrative functions as
customer response, billing, network design and control.
(a) Node System (Network Facilities)
As a rule, the year is denoted in four digits in all communication-related
systems. Furthermore, no year-related data is processed in the connection,
transmission and exchange of communications. No trouble occurred in trial runs
completed before June 30, leading management to believe that problems leading to
the stoppage of communications as a result of the Y2K issue will not arise.
Because NTT does not exchange dated information (settlement data, etc.) with
other telecommunication carriers, we believe that problems related to inter-
connection will not arise. Furthermore, inter-connection testing conducted with
62 carriers before September 30, 1999 has indicated that no problems will arise
in this area. On June 25, 1999, NTT participated in an NTT-DDI trial run
organized by the Telecommunications Carriers Association.
While systems supporting certain telecommunication services require Y2K
compliance, all compliance requirements in these areas were met before June 30,
1999.
(b) Internal Operations Systems
9
<PAGE>
Regarding internal operations systems requiring Y2K compliance, all compliance
requirements were met before June 30, 1999.
To further ensure compliance and to secure the confidence of the public, NTT has
conducted inter-connection testing between other companies and has implemented
third-party compliance checks and other reinforcement measures.
2. Expenses Related to Y2K Compliance
NTT began using four-digit denotations of the year in all switching and other
equipment when launching its first digital networks in the 1980s. In 1992, NTT
adopted the four-digit denotation as its standard for internal computer systems,
and capital investment has been made to develop new systems that are Y2K
compliant.
The total estimated cost for achieving Y2K compliance in existing systems is
approximately 4 billion yen. These expenses have been included in system
revision costs incurred in connection with NTT's reorganization. Efforts have
been made for optimal allocation of these funds as a part of normal maintenance
and administrative expenses and as a separate item under development expenses.
3. Contingency Planning
As one of the principal supporters of Japan's telecommunications infrastructure,
NTT has constantly endeavored to design its systems with an aim to achieving a
high level of reliability. This has always been NTT's governing principle in
10
<PAGE>
providing customers with communications services and in developing vital and
indispensable facilities and basic operating systems. Similarly, NTT has
established crisis management systems and manuals in preparation of earthquakes
and other disasters.
The Y2K problem is fundamentally different from conventional disasters in that
the date and time of the possible crisis is known in advance, allowing for a
state of alert and emergency preparations. In accordance with the government's
action program, NTT has re-formulated its crisis management systems and manuals
to include provisions pertinent to the Y2K problem. The formulation of these
contingency plans was completed before June 30, 1999.
Since July 1, 1999, each of the reorganized NTT companies has developed its own
detailed contingency and crisis management plans based on the above contingency
plans, encompassing all aspects of customer response and transactions with
related companies. These contingency and crisis management systems will remain
in place until April 2000.
# # #
For further information, Please contact:
Kenya Nakatsuka
Press Relations'
Nippon Telegraph and Telephone Corporation
Telephone: 03-5205-5550
E-mail: [email protected]
11
<PAGE>
(Reference)
The consolidated financial results cover NTT and 29 subsidiaries.
Firms included in consolidated results from the first half of the fiscal
year ending on March 31, 2000 (29 companies)
Nippon Telegraph and Telephone East Corporation
Nippon Telegraph and Telephone West Corporation
NTT Communications Corporation
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 Urban Development Co.
NTT Facilities Corporation
NTT Telecom Engineering Hokkaido Co., Ltd.
NTT Telecom Engineering Tohoku Co., Ltd.
NTT ME Corporation
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.
12
<PAGE>
NTT Telecom Engineering Kyushu Co., Ltd.
NTT-Do Inc.
NTT Teleca Corporation
NTT Communicationware Corporation
NTT Lease Corporation
NTT Auto Lease Corporation
# # #
13
<PAGE>
Attachment 1
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
NON-CONSOLIDATED BALANCE SHEET
------------------------------
(Based on Japanese Accounting Principles)
<TABLE>
<CAPTION>
March 31, 1999 September 30, 1999
-------------- -------------------
Millions Millions Millions
of Yen of Yen of US$
-------------- --------- --------
<S> <C> <C> <C>
ASSETS
- ------
CURRENT ASSETS 2,106,312 1,062,853 10,026
FIXED ASSETS 9,361,082 7,331,608 69,166
TOTAL ASSETS 11,467,394 8,394,462 79,193
========== ========= ======
LIABILITIES
- -----------
CURRENT LIABILITIES:
Current portion of long-term debt 447,562 417,180 3,935
Accounts payable,trade 699,936 3,261 30
Accrued taxes on income 425,924 22,924 216
Accrued consumption tax --- 448,628 4,232
Other 717,208 120,936 1,140
Total current liabilities 2,290,631 1,012,932 9,555
---------- --------- ------
LONG-TERM LIABILITIES:
Long-term debt 2,218,977 2,497,555 23,561
Liability for employees' severance payments 2,030,752 19,633 185
Other 19,444 527 4
Total long-term liabilities 4,269,174 2,517,715 23,752
---------- --------- ------
TOTAL LIABILITIES 6,559,806 3,530,647 33,307
---------- --------- ------
SHAREHOLDERS' EQUITY
- --------------------
Common stock 795,600 795,600 7,505
Additional paid-in capital 2,530,476 2,530,476 23,872
Legal reserve 107,453 119,406 1,126
Special depreciation reserve 64,196 54,259 511
Reserve for buy-back of shares --- 46,653 440
General reserves 895,000 895,000 8,443
Unappropriated retained earnings 514,861 422,419 3,985
TOTAL SHAREHOLDERS' EQUITY 4,907,588 4,863,814 45,885
---------- --------- ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 11,467,394 8,394,462 79,193
========== ========= ======
</TABLE>
Note: Yen amounts have been translated, for convenience only, at
(Yen)106=US$1.00, the approximate exchange rate on September 30, 1999.
Fractions are rounded down.
<PAGE>
Attachment 2
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
NON-CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------
(Based on Japanese Accounting Principles)
<TABLE>
<CAPTION>
Six-months Ended September 30
------------------------------
1998 1999
--------- -------------------
Millions Millions Millions
of Yen of Yen of US$
--------- --------- --------
<S> <C> <C> <C>
OPERATING REVENUES 3,029,568 1,528,871 14,423
OPERATING EXPENSES 2,889,474 1,427,227 13,464
OPERATING INCOME 140,094 101,644 958
NON-OPERATING REVENUES 55,889 68,671 647
NON-OPERATING EXPENSES 72,842 63,946 603
RECURRING PROFIT 123,142 106,368 1,003
EXTRAORDINARY PROFIT --- 71,827 677
EXTRAORDINARY LOSS 31,751 4,293 40
INCOME BEFORE TAXES 91,390 173,902 1,640
CORPORATION, INHABITANT
AND ENTERPRISE TAXES --- 24,800 233
CORPORATION AND INHABITANT TAXES 28,300 --- ---
NET INCOME 63,090 149,102 1,406
--------- --------- ------
</TABLE>
Note: Yen amounts have been translated, for convenience only, at
(Yen)106=US$1.00, the approximate exchange rate on September 30, 1999.
Fractions are rounded down.
<PAGE>
Attachment 3
Business Results (Non-consolidated Operating Revenues)
------------------------------------------------------
(Based on Japanese Accounting Principles)
<TABLE>
<CAPTION> (Millions of Yen)
- ------------------------------------------------------------------------------------------------------------------------------------
Service Six-months Ended Six-months Ended Increase Fiscal Year Ended
September 30, 1998 September 30, 1999 (Decrease) March 31, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Voice Transmission Services 2,320,500 1,090,851 (1,229,648) 4,599,272
Major Items:
ISDN Services 268,880 181,562 (87,318) 596,051
Data Transmission Services 51,894 33,333 (18,560) 111,669
Leased Circuit Services 315,999 162,946 (153,053) 640,020
Telegram Services 40,354 21,531 (18,823) 84,423
Other Services 300,820 220,208 (80,611) 701,616
- ------------------------------------------------------------------------------------------------------------------------------------
Total Operating Revenues 3,029,568 1,528,871 (1,500,697) 6,137,003
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: Fractions are rounded down.
On July 1, 1999, NTT's business activities were transferred to Nippon
Telegraph and Telephone East Corporation, Nippon Telegraph and Telephone
West Corporation, and NTT Communications Co., Ltd. From this six-month
period, the categories of operating revenues have been revised as follows.
"Telephone Services" and part of "Other Services" are indicated as "Voice
Transmission Services" and "Telex Services," "Digital Data Exchange
Services" and part of "Other Services" are indicated as "Data Transmission
Services. To facilitate comparison, the items "Six Months Ended September
30, 1998" and "Fiscal Year Ended March 31, 1999" have been replaced by
"Six Months Ended September 30, 1999."
<PAGE>
Attachment 4
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
CONSOLIDATED BALANCE SHEET(UNAUDITED)
-------------------------------------
(Based on Japanese Accounting Principles)
<TABLE>
<CAPTION>
March 31, 1999 September 30, 1999
--------------- ----------------------
Millions Millions Millions
of Yen of Yen of US$
--------------- ----------- ---------
<S> <C> <C> <C>
ASSETS
- ------
FIXED ASSETS 13,703,898 13,680,832 129,064
CURRENT ASSETS 3,708,290 3,414,301 32,210
TOTAL ASSETS 17,412,188 17,095,134 161,274
========== ========== =======
LIABILITIES
- -----------
LONG-TERM LIABILITIES:
Long-term debt 4,511,390 4,654,367 43,909
Liability for employees' severance payments 2,193,662 2,233,470 21,070
Other 233,103 225,155 2,124
Total long-term liabilities 6,938,155 7,112,992 67,103
---------- ---------- -------
CURRENT LIABILITIES:
Current portion of long-term debt 854,242 876,454 8,268
Accounts payable, trade 875,987 498,155 4,699
Short-term borrowings 232,159 183,002 1,726
Accrued taxes on income 492,775 221,195 2,086
Other 1,054,407 1,125,364 10,616
Total current liabilities 3,509,572 2,904,172 27,397
---------- ---------- -------
TOTAL LIABILITIES 10,447,728 10,017,165 94,501
---------- ---------- -------
MINORITY INTEREST IN CONSOLIDATED
- ---------------------------------
SUBSIDIARIES 750,538 815,993 7,698
- ------------ ---------- ------- -------
SHAREHOLDERS' EQUITY
- --------------------
Common stock 795,600 795,600 7,505
Additional paid-in capital 2,530,476 2,530,476 23,872
Retained earnings 2,888,757 2,935,951 27,698
Treasury stock (911) (51) (0)
TOTAL SHAREHOLDERS' EQUITY 6,213,922 6,261,975 59,075
---------- ---------- -------
TOTAL LIABILITIES, MINORITY INTEREST IN
CONSOLIDATED SUBSIDIARIES AND
SHAREHOLDERS' EQUITY 17,412,188 17,095,134 161,274
========== ========== =======
</TABLE>
Note: Yen amounts have been translated, for convenience only, at
(Yen)106=US$1.00, the approximate exchange rate on September 30, 1999.
Fractions are rounded down.
<PAGE>
Attachment 5
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME(UNAUDITED)
--------------------------------------------
(Based on Japanese Accounting Principles)
Six-months Ended September 30
------------------------------
1998 1999
--------- -------------------
Millions Millions Millions
of Yen of Yen of US$
--------- --------- --------
OPERATING REVENUES 4,711,693 5,009,196 47,256
OPERATING EXPENSES 4,217,604 4,445,311 41,936
OPERATING INCOME 494,089 563,885 5,319
NON-OPERATING REVENUES 37,731 30,166 284
NON-OPERATING EXPENSES 127,274 101,840 960
RECURRING PROFIT 404,546 492,210 4,643
EXTRAODINARY PROFIT --- 69,253 653
EXTRAODINARY LOSS --- 31,800 300
INCOME BEFORE TAXES 404,546 529,663 4,996
CORPORATION, INHABITANT 132,207 222,263 2,096
AND ENTERPRISE TAXES
MINORITY INTEREST IN CONSOLIDATED
SUBSIDIARIES 7,361 66,994 632
NET INCOME 264,977 240,405 2,267
--------- --------- ------
Note: Yen amounts have been translated, for convenience only, at
(Yen)106=US$1.00, the approximate exchange rate on September 30, 1999.
Fractions are rounded down.
<PAGE>
Attachment
Nippon Telegraph and Telephone Corporation
November 24, 1999
NTT's Shares and Shareholders (as of September 30, 1999)
1. Classification of Shareholders
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
NTT's Shares and Shareholders
-------------------------------------------------------------------------------------------------
Government Other Foreign Domestic Odd-Lot
Details and Public Financial Securities Domestic Corporations, Individuals, Total Shares
Bodies Institutions Firms Corporations etc. etc.
(Individuals)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1,271
Total Holders 4 760 142 14,550 (80) 1,294,748 1,311,475
==================================================================================================================================
1,840,901
Total Shares 9,369,136 1,660,543 42,426 331,706 (325) 2,573,749 15,818,461 44,641
--------------------------------------------------------------------------------------------------------------------------
% 11.64
59.23 10.50 0.27 2.09 (0.00) 16.27 100
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1. "Other Domestic Corporations" includes 2,326 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. "Domestic Individuals, etc." includes 73 shares of treasury stock, and
"Odd-Lot Shares" includes 0.19 shares of treasury stock. The actual
number of treasury stocks at the end of March 31, 1999 was 40.19.
3. The number of shareholders who own only odd-lot shares is 211,991.
2. Classification by Number of Shares
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
NTT's Shares and Shareholders
-------------------------------------------------------------------------------------------------
Details At Least At Least At Least At Least At Least At Least 5 At Least 1 Total Odd-Lot
1,000 500 100 50 10 Shares
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Number of Holders 364 166 1,198 1,246 23,182 57,068 1,228,251 1,311,475
---------------------------------------------------------------------------------------------------------------------------
% 0.03 0.01 0.09 0.10 1.77 4.35 93.65 100.00
===================================================================================================================================
Total Shares 2,935,564 111,843 239,035 80,557 356,090 341,100 1,754,272 5,818,461 44,641
---------------------------------------------------------------------------------------------------------------------------
% 81.77 0.71 1.51 0.51 2.25 2.16 11.09 100.00
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1. "At Least 1,000" includes 2,326 shares under the name of the Japan
Securities Depository Center, and "Odd-Lot Shares" includes 0.72
shares under the name of Japan Securities Depository Center.
2. "At Least 100" includes 73 shares of treasury stock, and "Odd-Lot
Shares" includes 0.19 shares of treasury stock.
3. Principal Shareholders
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Name Share Holdings Percent of Total Shares Issued
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
The Minister of Finance 9,369,082.26 59.06
State Street Bank and Trust Company 205,023.00 1.29
The Sumitomo Trust & Banking Co., Ltd. 177,043.00 1.12
NTT Employee Share-Holding Association 142,690.22 0.90
The Chase Manhattan Bank, N.A. London 133,701.00 0.84
The Mitsubishi Trust and Banking Corporation 127,807.00 0.81
Boston Safe Deposit PSDT, Treaty Clients Omnibus 89,666.00 0.57
The Chase Manhattan Bank, N.A. London SL Omnibus Account 86,212.00 0.54
Nippon Life Insurance Company 85,707.68 0.54
The Chuo Trust & Banking Co., Ltd. 76,656.00 0.48
- -----------------------------------------------------------------------------------------------------------------------------------
Total 10,493,588.16 66.15
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
November 24, 1999
FOR IMMEDIATE RELEASE
Interim Settlement for Fiscal Year Ending March 31, 2000
The results of Nippon Telegraph and Telephone West Corporation (NTT West) for
the interim period of fiscal 1999 are presented in the following order.
1. Summary of Results
2. Non-consolidated Balance Sheet
3. Non-consolidated Statements of Income
4. Business Results (Non-consolidated Operating Revenues)
The interim period was from July 1, the date of the establishment of NTT West,
until September 30.
Inquiries:
Mr. Masaaki Hiroshige or Mr. Shinji Uchida
Accounting Section, Finance Division
NTT West
Tel: 06-4793-3141
E-mail: [email protected]
<PAGE>
Attachment 1
Summary of Results
Nippon Telegraph and Telephone West Corporation (NTT West) was established and
launched its operations on July 1, 1999 following the reorganization of Nippon
Telegraph and Telephone Corporation. NTT West operates as a telecommunications
enterprise in the western Japan region.
During the interim under review, the Japanese economy showed some signs of
improvement, including a mild recovery in personal consumption. However, a full-
fledged recovery proved elusive as plant and equipment investment continued to
decline and employment conditions remained bleak.
In the telecommunications markets, the dramatic increase in mobile telephone and
Internet users has resulted in a sharp increase in demand for digital data
transmission services which are taking the place of conventional voice-based
communication services. Parallel to this development, market conditions have
become increasingly competitive with the growing diversity in services and fee
structures, and the entry of new participants from other industries.
Given this rapid pace of change and increasing competition, NTT West faces an
extremely difficult business environment. Against this background, NTT West has
launched various initiatives aimed at supporting its development into an
information-sharing company.
The principal initiatives launched during the reporting period are as follows.
With the growing number of Internet users, sales of ISDN lines have been
increasing rapidly. For improved customer convenience and the promotion of wider
use, NTT West launched "i. Number," a system allowing INS-Net 64 subscribers to
use two telephone numbers on one line. NTT West also started
<PAGE>
marketing its "Magic Box" for voice mail services which operates when the line
is busy or in the case of an unanswered call. For users subscribing to two or
more services among the "Magic Box," "i. Number," "Number Display" and "Push
Phone" services, NTT West has started offering a discount on the monthly service
charges on the combined services. As an experimental program targeting schools,
NTT West is offering the "i. School" service featuring special telephone rates
for connecting to the Internet. For individual customers connecting to the
Internet, NTT West has decided to launch the "i. ai Plan." NTT West has also
actively entered the solution provider business, marketing the "multi-net debut
mini-server," an all-in-one compact, simple and low-cost Internet server
designed for small- and medium-sized companies, and making a proposal for
"MI-24," a telecommunications system operating and maintenance service. As a
result of the ongoing changes in lifestyles, an increasing number of requests
have been received from customers asking us to maintain certain operations on
Saturdays and holidays. In response to these requests and in order to improve
the quality of our services, NTT West has decided to extend the operating hours
of its "dial 116" services to include Saturdays, Sundays and holidays. The "dial
116" service is responsible for processing inquiries and orders for the
relocation of subscriber telephone lines and various other services.
As of September 30, the number of principal service installations was as
follows: 28.87 million ordinary telephone subscriber lines, 2.35 million INS-Net
64 digital lines, and 183 thousand dedicated high-speed transmission lines.
NTT West's three-months ended September 30, 1999 were as follow: operating
revenues amounted to 679.8 billion yen, ordinary loss amounted to 21.7 billion
yen, and net loss came to 27.1 billion yen.
<PAGE>
Attachment 2
NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION
-----------------------------------------------
NON-CONSOLIDATED BALANCE SHEET
------------------------------
(Based on Japanese Accounting Principles)
September 30, 1999
-------------------
Millions Millions
of Yen of US$
--------- --------
ASSETS
- ------
FIXED ASSETS 3,775,525 35,618
CURRENT ASSETS 1,025,476 9,674
TOTAL ASSETS 4,801,001 45,292
========= ======
LIABILITIES
- -----------
LONG-TERM LIABILITIES:
Long-term debt 979,245 9,238
Liability for employees' severance payments 1,068,124 10,076
Other 11,481 108
Total long-term liabilities 2,058,851 19,423
--------- ------
CURRENT LIABILITIES:
Current portion of long-term debt 12,930 121
Accounts payable, trade 205,082 1,934
Short-term borrowings 348,100 3,283
Accrued taxes on income 5,336 50
Other 322,815 3,045
Total current liabilities 894,266 8,436
--------- ------
TOTAL LIABILITIES 2,953,117 27,859
--------- ------
SHAREHOLDERS' EQUITY
- --------------------
Common stock 312,000 2,943
Additional paid-in capital 1,562,995 14,745
Unappropriated loss 27,111 255
TOTAL SHAREHOLDERS' EQUITY 1,847,884 17,432
--------- ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 4,801,001 45,292
========= ======
Note: Yen amounts have been translated, for convenience only, at
(Yen)106=US$1.00, the approximate exchange rate on September 30, 1999.
Fractions are rounded down.
<PAGE>
Attachment 3
NIPPON TELEGRAPH AND TELEPHONE WEST CORPORATION
-----------------------------------------------
NON-CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------
(Based on Japanese Accounting Principles)
Three-months Ended September 30
-------------------------------
1999
-------------------------
Millions Millions
of Yen of US$
------ ------
OPERATING REVENUES 679,890 6,414
OPERATING EXPENSES 693,493 6,542
OPERATING LOSS 13,602 128
NON-OPERATING REVENUES 9,093 85
NON-OPERATING EXPENSES 17,262 162
ORDINARY LOSS 21,771 205
LOSS BEFORE TAXES 21,771 205
INCOME TAXES 5,340 50
NET LOSS 27,111 255
------- -----
Note: Yen amounts have been translated, for convenience only, at
(Yen)106=US$1.00, the approximate exchange rate on September 30, 1999.
Fractions are rounded down.
<PAGE>
Attachment 4
Business Results (Non-consolidated Operating Revenues)
------------------------------------------------------
(Based on Japanese Accounting Principles)
(Millions of Yen)
----------------------------------------------------------------
Service Three-months Ended
September 30, 1999
----------------------------------------------------------------
Voice Transmission Services 505,299
Leased Circuit Services 75,173
Telegram Services 8,683
Other Services 39,682
Telecommunications
Total Revenues 628,838
- -----------------------------------------------------------------
Related Business 51,051
Total Revenues
- -----------------------------------------------------------------
Total Operating Revenues 679,890
- -----------------------------------------------------------------
Note: Fractions are rounded down.
<PAGE>
November 24, 1999
FOR IMMEDIATE RELEASE
Interim Settlement for Fiscal Year Ending March 31, 2000
The results of Nippon Telegraph and Telephone East Corporation (NTT East) for
the interim period of fiscal 1999 are presented in the order indicated on the
attachment.
The interim period was from July 1, the date of the establishment of NTT East,
until September 30.
(Attachment)
1. Summary of Results
2. Non-consolidated Balance Sheet
3. Non-consolidated Statements of Income
4. Business Results (Non-consolidated Operating Revenues)
Inquiries:
Susumu Mito
Accounting Section, Finance Division
NTT East
Tel: 03-5359-3331
E-mail: [email protected]
<PAGE>
Attachment 1
SUMMARY OF RESULTS
------------------
Nippon Telegraph and Telephone East Corporation (NTT East) was established and
launched its operations on July 1, 1999 following the reorganization of Nippon
Telegraph and Telephone Corporation. NTT East operates as a telecommunications
enterprise in the eastern Japan region.
During the interim under review, the Japanese economy showed signs of mild
improvement as the effects of various policy measures were felt throughout the
economy. However, a full-fledged recovery proved elusive as plant and equipment
investment continued to decline and employment conditions remained bleak.
In the telecommunications markets, the dramatic increase in mobile telephone and
Internet users has resulted in a sharp increase in demand for digital data
transmission services which are taking the place of conventional voice-based
communication services. In addition to these quantitative changes, the
telecommunications markets are expected to undergo important qualitative changes
as a result of growing digitalization. Competition in all areas of these new
markets is being intensified by the entry of foreign telecommunications carriers
and new participants from other industries.
Given this rapid pace of change and increasing competition, NTT East faces an
extremely difficult business environment. Against this background, NTT East has
adopted as its basic management principle the provision of timely and attractive
services and has launched various initiatives characterized by three key
features: "inexpensive," "easy to use" and "reliable."
The principal initiatives launched during the reporting period are as follows.
With the growing number of Internet users, sales of ISDN lines have been
increasing rapidly. For improved customer convenience and the promotion of
wider use, NTT East launched "i-Number," a system allowing INS-Net 64
subscribers to use two telephone numbers on one line. NTT East also started
marketing its "Magic Box" voice mail services which records messages at a
<PAGE>
processing center when a line is busy or when a call is unanswered. "Magic Box"
can also be used for transferring incoming call to a cellular phone. For users
subscribing to the "Magic Box" service together with either or both of the
"i-Number" and "INS Number Display" services, NTT East is offering a "Package
Discount" on monthly service charges on the combined services, making them even
more attractive. NTT East is also launching various new services to support the
growing use of the Internet. The "i-ai Plan," targeting individuals and small
businesses, provides fixed-rate local-call access to the Internet at discounts
of up to 60%. The "i-school" service, available to schools on an experimental
basis, features flat-rate Internet access at special discounts. As a result of
changing lifestyles, there is a growing need to maintain certain operations on
weekends and holidays. In response to this demand and in order to improve the
quality of our services, NTT East has decided to extend the operating hours of
its "dial 116" services to include Saturdays, Sundays and holidays. The "dial
116" service is responsible for processing inquiries and orders for the
relocation of subscriber telephone lines and various other services.
For its corporate customers, NTT East has developed a management support program
known as "Team Marketing Solution" featuring team collaboration with customers
to meet management challenges. NTT East continues to strengthen its marketing
capabilities through such initiatives.
Sales of principal installations during the interim period under review were as
follows.
Owing to the continued buoyant sales of INS-Net digital services, the total
number of ordinary telephone subscriber lines came to 28.28 million
(representing a decrease of 0.29 million lines since NTT East went into
operation on July 1). In the area of INS-Net services, the number of INS-Net 64
digital lines totaled 2.73 million as of September 30, 1999 (an increase of 0.31
million lines since July 1).
NTT East's three-months ended September 30, 1999 were as follows: operating
revenues amounted to 696.5 billion yen, current profit amounted to 10.9 billion
yen, and net loss came to 7.1 billion yen.
<PAGE>
Attachment 2
NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION
-----------------------------------------------
NON-CONSOLIDATED BALANCE SHEET
------------------------------
(Based on Japanese Accounting Principles)
<TABLE>
<CAPTION>
September 30, 1999
-------------------
Millions Millions
of Yen of US$
--------- --------
<S> <C> <C>
ASSETS
- ------
FIXED ASSETS 4,028,969 38,009
CURRENT ASSETS 1,053,292 9,936
TOTAL ASSETS 5,082,261 47,945
========= ======
LIABILITIES
LONG-TERM LIABILITIES:
Long-term debt 1,130,232 10,662
Liability for employees' severance payments 941,465 8,881
Other 7,546 71
Total long-term liabilities 2,079,243 19,615
--------- ------
CURRENT LIABILITIES:
Current portion of long-term debt 14,924 140
Accounts payable,trade 211,196 1,992
Short-term borrowings 385,237 3,634
Accrued taxes on income 18,097 170
Other 366,419 3,456
Total current liabilities 995,875 9,395
--------- ------
TOTAL LIABILITIES 3,075,118 29,010
--------- ------
SHAREHOLDERS' EQUITY
- --------------------
Common stock 335,000 3,160
Additional paid-in capital 1,679,281 15,842
Unappropriated loss 7,137 67
TOTAL SHAREHOLDERS' EQUITY 2,007,143 18,935
--------- ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 5,082,261 47,945
========= ======
</TABLE>
Note: Yen amounts have been translated, for convenience only, at Yen
106=US$1.00, the approximate exchange rate on September 30, 1999.
Fractions are rounded down.
<PAGE>
Attachment 3
NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION
-----------------------------------------------
NON-CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------
(Based on Japanese Accounting Principles)
<TABLE>
<CAPTION>
Three-months Ended September 30, 1999
-------------------------------------
Millions Millions
of Yen of US$
--------------- -----------
<S> <C> <C>
OPERATING REVENUES 696,563 6,571
OPERATING EXPENSES 681,441 6,428
OPERATING INCOME 15,121 142
NON-OPERATING REVENUES 10,998 103
NON-OPERATING EXPENSES 15,157 142
RECURRING PROFIT 10,962 103
INCOME BEFORE TAXES 10,962 103
INCOME TAXES 18,100 170
NET LOSS 7,137 67
------- -----
</TABLE>
Note: Yen amounts have been translated, for convenience only, at (Yen)
106=US$1.00, the approximate exchange rate on September 30, 1999.
Fractions are rounded down.
<PAGE>
Attachment 4
Business Results (Non-consolidated Operating Revenues)
------------------------------------------------------
(Based on Japanese Accounting Principles)
<TABLE>
<CAPTION>
(Millions of Yen)
- ----------------------------------------------------------------------
Service Three-months Ended
September 30, 1999
- ----------------------------------------------------------------------
<S> <C>
Voice Transmission Services 514,836
Leased Circuit Services 91,346
Telegram Services 8,071
Other Services 35,752
Telecommunications
Total Revenues 650,007
- ----------------------------------------------------------------------
Related Business 46,555
Total Revenues
- ----------------------------------------------------------------------
Total Operating Revenues 696,563
- ----------------------------------------------------------------------
</TABLE>
Note: Fractions are rounded down.
<PAGE>
November 24, 1999
NTT Communications Corporation
NTT Communications' Results For
Fiscal Half-Year Ending March 31, 2000
NTT Communications Corporation ("NTT Com") had operating revenues of 357.6
billion yen, recurring profit of 34.2 billion yen and net income of 17.1 billion
yen, based on Japanese accounting principles, in the new company's first
fiscal-half year from May 28 to September 30.
During the reporting period, the Japanese economy did not show signs of a full-
scale recovery, and a rising rate of unemployment and many other factors were
cause for continued concern, although a slight recovery in consumer spending was
one of a few positive indicators.
Service diversification and cost reductions fueled competition in the domestic
and international telecommunications markets. Also, telecommunication operators
continued to reorganize on a global basis through tie-ups and joint ventures to
create new synergy to meet the challenges of the evolving market.
NTT Com was established by the reorganization of Nippon Telegraph and Telephone
Corporation (NTT) on May 28 to provide international and domestic
(inter-prefectural) telecommunication and Internet access services. NTT Com,
after inheriting operations from NTT, began operating on July 1 to challenge the
global communications market with superior services that meet the diversified
needs of customers on a global scale. The company structured itself to provide a
full menu of services at quality and price levels that accurately meet customer
needs. The company also prepared for entry into the international
telecommunications market through subsidiaries and other arrangements.
NTT Com lowered the fixed charges of its Super Frame-Relay Service, a data
transmission service for corporate users and enhanced the service with the
<PAGE>
addition of Arcstar 21, an Internet-protocol virtual private network (IP-VPN)
service that enables closed group telecommunications with pre-designated
partners. New access services were inaugurated for corporate users, such as the
Arcstar Direct, which connects users directly to the NTT Com inter-prefectural
network for lower telephone charges, and Arcstar Value Access, which integrates
access networks for various services to lower network costs. NTT Com also
expanded its range of discounts for corporate services. Premierplan was
introduced for Members' Net and Free Dial, allowing multi-office corporations
that subscribe to these services under a single, nationwide contract to pay for
communication charges on a discounted lump-sum basis.
For individuals, NTT Com added new discounts and enhanced its ability to deal
flexibly with customer requests. In addition to the existing TeleChoice and
TeleWise discount plans, the Shabericchi plan was added to provide discounts on
calls to user-designated telephone numbers.
NTT Com increased its number of dial-up Internet access points to meet the
rising demand for Internet access. As of September 1, OCN Dial Access service
users can connect to the Internet at local-call rates from any location in
Japan. NTT Com is the first company in Japan to provide this level of service.
OCN Dial Access is available through NTT Com's Open Computer Network of Internet
access services.
The company was actively involved with the development of electronic commerce
(e-commerce) services. Super Cash, an e-commerce service being developed in
cooperation with 23 domestic banks, was tested in field trials in the Shinjuku
area of Tokyo and over the Internet.
NTT Com provided total business solutions, comprised mainly of network sales,
but also including consulting, system integration, network integration and
outsourcing. E-commerce platforms were established and network-outsourcing
services were expanded.
As part of launching an international telephone service, using the prefix 0033,
on October 1, NTT Com merged with a subsidiary that had been providing
international telecommunication services since 1997. The merger enables the
company to seamlessly link domestic and international services, thereby
<PAGE>
enhancing its ability to compete with domestic and international carriers.
NTT Com concluded tie-ups with both domestic and international companies during
its first half-year. The company reached a basic agreement to invest in Japan
Satellite Systems Inc. (JSAT), a provider of domestic and international
satellite telecommunications and domestic satellite-broadcasting services. The
aim is to develop satellite-related business by effectively using the two
companies' satellites. Details are still being worked out. NTT Com also invested
in HKNet Company Limited, a major Internet service provider in Hong Kong, to
provide IP services in Hong Kong.
# # #
For further information, please contact:
Megumi Inaji or Fuyuki Natsumeda
Public Relations Office
NTT Communications Corporation
Telephone: (03) 3500-8020
E-mail: [email protected]
------------
<PAGE>
Attachment 1
NTT Communications Corporation
------------------------------
NON-CONSOLIDATED BALANCE SHEET
------------------------------
(Based on Japanese Accounting Principles)
<TABLE>
<CAPTION>
September 30, 1999
-------------------
Millions Millions
of Yen of US$
--------- --------
<S> <C> <C>
ASSETS
- ------
FIXED ASSETS 879,862 8,300
CURRENT ASSETS 346,616 3,269
TOTAL ASSETS 1,226,478 11,570
========= ======
LIABILITIES
- -----------
LONG-TERM LIABILITIES:
Long-term debt 388,077 3,661
Liability for employees' severance payments 45,305 427
Other 1,260 11
Total long-term liabilities 434,643 4,100
--------- ------
CURRENT LIABILITIES:
Current portion of long-term debt 4,596 43
Accounts payable, trade 30,283 285
Short-term borrowings 87,691 827
Accounts payable, other 159,186 1,501
Accrued taxes on income 17,046 160
Other 41,970 395
Total current liabilities 340,774 3,214
--------- ------
TOTAL LIABILITIES 775,418 7,315
--------- ------
SHAREHOLDERS' EQUITY
- --------------------
Common stock 72,000 679
Additional paid-in capital 361,888 3,414
Unappropriated retained earnings 17,172 162
TOTAL SHAREHOLDERS' EQUITY 451,060 4,255
--------- ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 1,226,478 11,570
========= ======
</TABLE>
<PAGE>
Note: Yen amounts have been translated, for convenience only, at
(Yen)106=US$1.00, the approximate exchange rate on September 30, 1999.
Fractions are rounded down.
<PAGE>
Attachment 2
NTT Communications Corporation
-------------------------------
NON-CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------
(Based on Japanese Accounting Principles)
FISCAL HALF-YEAR BEGINNING MAY 28 AND
ENDED SEPTEMBER 30, 1999
------------------------
Millions Millions
of Yen of US$
-------- --------
OPERATING REVENUES 357,601 3,373
OPERATING EXPENSES 324,223 3,058
OPERATING INCOME 33,378 314
NON-OPERATING REVENUES 6,499 61
NON-OPERATING EXPENSES 5,656 53
RECURRING PROFIT 34,222 322
INCOME BEFORE TAXES 34,222 322
INCOME TAXES 17,050 160
NET INCOME 17,172 162
------- -----
Note: Yen amounts have been translated, for convenience only, at
(Yen)106=US$1.00, the approximate exchange rate on September 30, 1999.
Fractions are rounded down.
<PAGE>
Attachment 3
Business Results (Non-consolidated Operating Revenues)
------------------------------------------------------
(Based on Japanese Accounting Principles)
(Millions of Yen)
-------------------------------------------------------------------
Fiscal Half-Year Beginning May 28
Service
And Ended September 30, 1999
-------------------------------------------------------------------
Voice Transmission Services 225,819
Data Transmission Services 52,111
Leased Circuit Services 62,715
Other Services 461
Telecommunications
Total Revenues 341,107
-------------------------------------------------------------------
Related Business 16,494
Total Revenues
-------------------------------------------------------------------
Total Operating Revenues 357,601
-------------------------------------------------------------------
Note: Fractions are rounded down.
<PAGE>
Nippon Telegraph and Telephone Corporation
November 24, 1999
First-Half Results for Fiscal Year Ending March 31, 2000 (Non-Consolidated)
(Based on Japanese Accounting Principles)
[Results of Operations]
<TABLE>
<CAPTION>
(Billions of Yen)
- ----------------------------------------------------------------------------------------------------------------------------------
Six-Months Ended Six-Months Ended Increase Percent Increase
Sept. 30, 1999 Sept. 30, 1998 (Decrease) (Decrease)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operating Revenues 1,528.8 3,029.5 (1,500.6) (49.5)
- ----------------------------------------------------------------------------------------------------------------------------------
Operating Expenses 1,427.2 2,889.4 (1,462.2) (50.6)
- ----------------------------------------------------------------------------------------------------------------------------------
(Operating Income) 101.6 140.0 (38.4) (27.4)
- ----------------------------------------------------------------------------------------------------------------------------------
(Non-Operating Income) 4.7 (16.9) 21.6 -
- ----------------------------------------------------------------------------------------------------------------------------------
(Recurring Profit) 106.3 123.1 (16.7) (13.6)
- ----------------------------------------------------------------------------------------------------------------------------------
Extraordinary Profit 71.8 - 71.8 -
- ----------------------------------------------------------------------------------------------------------------------------------
Extraordinary Loss 4.2 31.7 (27.4) (86.5)
- ----------------------------------------------------------------------------------------------------------------------------------
Income Before Taxes 173.9 91.3 82.5 90.3
- ----------------------------------------------------------------------------------------------------------------------------------
Corporation, Inhabitant
and Enterprise Taxes 24.8 28.3 (3.5) (12.4)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Income 149.1 63.0 86.0 136.3
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1. Beginning in this first-half statement, enterprise taxes have been
included in "Corporation, Inhabitant and Enterprise Taxes."
2. Tax effect accounting has not been used.
[Projection for Fiscal Year Ending March 31, 2000]
<TABLE>
<CAPTION>
(Billions of Yen)
- ----------------------------------------------------------------------------------------------------------------------------------
Fiscal Year Ending Fiscal Year Ended Increase Percent Increase
March 31, 2000 March 31, 1999 (Decrease) (Decrease)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operating Revenues 1,701.0 6,137.0 (4,436.0) (72.3)
- ----------------------------------------------------------------------------------------------------------------------------------
Operating Income 110.0 243.8 (133.8) (54.9)
- ----------------------------------------------------------------------------------------------------------------------------------
Recurring Profit 121.0 237.3 (116.3) (49.0)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Income 99.0 386.2 (287.2) (74.4)
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Cumulative Effect for
Prior Year's Tax Allocation 112.0 - 112.0 -
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in retained earnings * 211.0 386.2 (175.2) (45.4)
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: "Net change in retained earnings" is obtained by adding "Cumulative
Effect for Prior Year's Tax Allocation" to "Net Income."
<PAGE>
[Balance Sheet]
<TABLE>
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Long-Term Debt
Fixed Assets Liabilities 2,517.7
7,331.6 (42.1) (30.0)
(87.3)
--------------------------
Current Liabilities
1,012.9
(12.1)
---------------------- --------------------------
Assets Shares of Newly-Formed Common Stock
Organizations * 795.6
4,323.4 (51.5) (9.5)
----------------------- --------------------------
Shareholders' Legal Reserve
----------------------- Equity 2,649.8
Loans to Newly-Formed (31.5)
Organizations * (57.9) --------------------------
3,350.0 (39.9) Unappropriated Retained
----------------------- Earnings
Current Assets 1,418.3
1,062.8 (16.9)
(12.7)
- ------------------------------------------------------------------------------------------------------
* Listed again
(Total Assets) -------------------------------------
----------------------- Unit: Billions of Yen
8,394.4 Figures in brackets indicate shares.
----------------------- -------------------------------------
</TABLE>
<TABLE>
<CAPTION>
(Billions of Yen)
- ---------------------------------------------------------------------------------------------------------------------------------
Sept. 30, 1999 March 31, 1999 Increase (Decrease) Percent Increase (Decrease)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Fixed Assets 7,331.6 9,361.0 (2,029.4) (21.7)
- ---------------------------------------------------------------------------------------------------------------------------------
Current Assets 1,062.8 2,106.3 (1,043.4) (49.5)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Assets 8,394.4 11,467.3 (3,072.9) (26.8)
- ---------------------------------------------------------------------------------------------------------------------------------
Long-Term Liabilities 2,517.7 4,269.1 (1,751.4) (41.0)
- ---------------------------------------------------------------------------------------------------------------------------------
Current Liabilities 1,012.9 2,290.6 (1,277.6) (55.8)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 3,530.6 6,559.8 (3,029.1) (46.2)
- ---------------------------------------------------------------------------------------------------------------------------------
Interest-Bearing Liabilities * 2,914.7 2,666.5 248.1 9.3
- ---------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity 4,863.8 4,907.5 (43.7) (0.9)
- ---------------------------------------------------------------------------------------------------------------------------------
Total of Liabilities and
- ---------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity 8,394.4 11,467.3 (3,072.9) (26.8)
- ---------------------------------------------------------------------------------------------------------------------------------
* Listed again
</TABLE>
<PAGE>
Nippon Telegraph and Telephone Corporation
November 24,1999
Consolidated Statements of Income
First-Half Results for Fiscal Year Ending March 31, 2000
(Based on Japanese Accounting Principles)
[Results of Operations]
<TABLE>
<CAPTION>
(Billions of Yen)
- ----------------------------------------------------------------------------------------------------------------------------------
Six-Months Ended Six-Months Ended Increase Percent Increase
Sept. 30, 1999 Sept. 30, 1998 (Decrease) (Decrease)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operating Revenues 5,009.1 4,711.6 297.5 6.3
- ----------------------------------------------------------------------------------------------------------------------------------
Operating Expenses 4,445.3 4,217.6 227.7 5.4
- ----------------------------------------------------------------------------------------------------------------------------------
Operating Income 563.8 494.0 69.7 14.1
- ----------------------------------------------------------------------------------------------------------------------------------
Non-Operating Income (71.6) (89.5) 17.8 20.0
- ----------------------------------------------------------------------------------------------------------------------------------
Recurring Profit 492.2 404.5 87.6 21.7
- ----------------------------------------------------------------------------------------------------------------------------------
Extraordinary Profit 69.2 - 69.2 -
- ----------------------------------------------------------------------------------------------------------------------------------
Extraordinary Loss 31.8 - 31.8 -
- ----------------------------------------------------------------------------------------------------------------------------------
Income Before Taxes 529.6 404.5 125.1 30.9
- ----------------------------------------------------------------------------------------------------------------------------------
Corporation,Inhabitant and
Enterprise Taxes 222.2 132.2 90.0 68.1
- ----------------------------------------------------------------------------------------------------------------------------------
Minority Interest in
Consolidated Subsidiaries 66.9 7.3 59.6 810.1
- ----------------------------------------------------------------------------------------------------------------------------------
Net Income 240.4 264.9 (24.5) (9.3)
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: Tax effect accounting has not been used.
[Operating Performance of NTT and its Subsidiaries]
<TABLE>
<CAPTION>
(Billions of Yen)
- ----------------------------------------------------------------------------------------------------------------------------------
NTT NTT East NTT West NTT NTT Data NTT Others
(Holding Corp. Corp. Communications DoCoMo
Company) Group
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues 1,528.8 696.5 679.8 357.6 305.8 1,842.1 889.6
-----------------------------------------------------------------------------------------------------------------------------
(Change from previous year) (-38.7) (1.3) (232.4) (214.2)
(% Change) (-1.3%) (0.4%) (14.4%) (31.7%)
- ----------------------------------------------------------------------------------------------------------------------------------
Recurring Profit 106.3 10.9 (21.7) 34.2 20.6 327.4 17.1
-----------------------------------------------------------------------------------------------------------------------------
(Change from previous year) (-1.4) (7.6) (99.6) (8.1)
(% Change) (-1.1%) (59.1%) (43.8%) (89.8%)
- ----------------------------------------------------------------------------------------------------------------------------------
Extraordinary Profit 71.8 - - - - - -
- ----------------------------------------------------------------------------------------------------------------------------------
Extraordinary Loss 4.2 - - - 23.7 - -
- ----------------------------------------------------------------------------------------------------------------------------------
Net Income 149.1 (7.1) (27.1) 17.1 (1.9) 189.8 8.5
-----------------------------------------------------------------------------------------------------------------------------
(Change from previous year) (54.5) (-9.2) (81.2) (6.4)
(% Change) (86.5%) ( - ) (74.7%) (308.3%)
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1. Individual figures for NTT (Holding Company) and its subsidiaries are
on a non-consolidated basis and exclude adjustments for elimination of
cross-transactions.
2. Figures for the nine companies of the DoCoMo Group are simple
aggregations. Comparisons with previous year include the business
results of the nine companies of the NTT Personal Group.
<PAGE>
[Projection for Consolidated Operating Performance for Fiscal Year Ending
March 31, 2000]
<TABLE>
<CAPTION>
(Billions of Yen)
- --------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
NTT
Consolidated (Holding NTT East NTT West NTT NTT Data NTT DoCoMo Others
Basis Company) Corp. Corp. Communications Group
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues 10,359.0 1,701.0 2,140.0 2,048.0 1,067.0 725.0 3,866.0 1,903.0
- --------------------------------------------------------------------------------------------------------------------------------
(Change from previous year) (629.3) (-74.0) (19.5) (509.8) (428.0)
(% Change) (6.5%) (-1.2%) (2.8%) (15.2%) (29.0%)
- --------------------------------------------------------------------------------------------------------------------------------
Recurring Profit 730.0 121.0 29.0 (70.0) 118.0 43.0 479.0 34.0
- --------------------------------------------------------------------------------------------------------------------------------
(Change from previous year) (81.3) (-36.3) (5.8) (125.1) (1.7)
(% Change) (12.5%) (-15.3%) (15.6%) (35.4%) (5.4%)
- --------------------------------------------------------------------------------------------------------------------------------
Extraordinary Profit 69.0 72.0 - - - - - -
- --------------------------------------------------------------------------------------------------------------------------------
Extraordinary Loss 790.0 11.0 328.0 372.0 16.0 63.0 - -
- --------------------------------------------------------------------------------------------------------------------------------
Net Income (126.0) 99.0 (175.0) (269.0) 61 (12.0) 273.0 18.0
- --------------------------------------------------------------------------------------------------------------------------------
(Change from previous year) (-728.6) (-670.2) (-28.2) (109.8) (12.0)
(% Change) (-) (-) (-) (67.3%) (211.7%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cumulative effect for prior year's 647.0 112.0 217.0 247.0 12.0 23.0 44.0 20.0
tax allocation
- --------------------------------------------------------------------------------------------------------------------------------
Net change in retained earnings 521.0 211.0 42.0 -22.0 73.0 11.0 317.0 38.0
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1. Individual figures for NTT (Holding Company) and its subsidiaries are
on a non-consolidated basis and exclude adjustments for elimination of
cross-transactions.
2. Figures for the nine companies of the DoCoMo Group are simple
aggregations. Comparisons with previous year include the business
results of the nine companies of the NTT Personal Group.
3. "Net change in retained earnings" is obtained by adding "Cumulative
effect for prior year's tax allocation" to "Net Income."
<PAGE>
[Assets, Liabilities and Shareholders' Equity]
<TABLE>
<CAPTION>
(Billions of Yen)
- -----------------------------------------------------------------------------------------------------------------------------------
Six-Months Increase Percent Increase
Ended Sept. 30, March 31,1999 (Decrease) (Decrease)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Fixed Assets 13,680.8 13,703.8 (23.0) (0.2)
--------------------------------------------------------------------------------------------------------------------------------
Current Assets 3,414.3 3,708.2 (293.9) (7.9)
--------------------------------------------------------------------------------------------------------------------------------
Total Assets 17,095.1 17,412.1 (317.0) (1.8)
===================================================================================================================================
Long-Term Liabilities 7,112.9 6,938.1 174.8 2.5
--------------------------------------------------------------------------------------------------------------------------------
Current Liabilities 2,904.1 3,509.5 (605.3) (17.2)
--------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 10,017.1 10,447.7 (430.5) (4.1)
--------------------------------------------------------------------------------------------------------------------------------
Interest Bearing Liabilities 5,775.8 5,624.6 151.2 2.7
- -----------------------------------------------------------------------------------------------------------------------------------
Minority Interest in Consolidated
Subsidiaries 815.9 750.5 65.4 8.7
- -----------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity 6,261.9 6,213.9 48.0 0.8
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities and
Shareholders' Equity 17,095.1 17,412.1 (317.0) (1.8)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
[Reference]
<TABLE>
<CAPTION>
1. Number of Employees (Employees)
- -----------------------------------------------------------------------------------------------------------------------------------
Sept. 30, 1999 Sept. 30, 1998 Increase (Decrease) Percent Increase
(Decrease)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Number of Employees 224,700 229,800 (5,100) (2.2)
- -----------------------------------------------------------------------------------------------------------------------------------
2. Capital Expenditures (Billions of Yen)
- -----------------------------------------------------------------------------------------------------------------------------------
Sept. 30, 1999 Sept. 30, 1998 Increase (Decrease) Percent Increase
(Decrease)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Expenditures 1,202.9 1,289.1 (86.2) (6.7)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: Exclude the Capital Expenditures of the NTT Lease Corporation and NTT Auto
Lease Corporation.
<PAGE>
(Reference)
Nippon Telegraph and Telephone Corporation
November 24,1999
Non-Consolidated Statements of Income
Figures Based on Former Single-Company System(Pre-Reorganization System)
Half-Year Results for Fiscal Year Ending March 31, 2000
(Based on Japanese Accounting Principles)
[Results of Operations]
<TABLE>
<CAPTION>
(Unit: Billions of Yen)
- ---------------------------------------------------------------------------------------------------------------------------
Six-Months Ended Six-Months Ended Increase Percent Increase
Sept. 30, 1999 Sept. 30, 1998 (Decrease) (Decrease)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operating Revenues 2,990.8 3,029.5 (38.7) (1.3)
- ---------------------------------------------------------------------------------------------------------------------------
Operating Expenses 2,861.0 2,889.4 (28.4) (1.0)
- ---------------------------------------------------------------------------------------------------------------------------
Operating Income 129.7 140.0 (10.3) (7.4)
- ---------------------------------------------------------------------------------------------------------------------------
Non-Operating Income (8.0) (16.9) 8.9 52.6
- ---------------------------------------------------------------------------------------------------------------------------
Recurring Profit 121.7 123.1 (1.4) (1.1)
- ---------------------------------------------------------------------------------------------------------------------------
Extraordinary Profit 69.2 - 69.2 -
- ---------------------------------------------------------------------------------------------------------------------------
Extraordinary Loss 8.0 31.7 (23.7) (74.7)
- ---------------------------------------------------------------------------------------------------------------------------
Income Before Taxes 182.9 91.3 91.5 100.2
- ---------------------------------------------------------------------------------------------------------------------------
Corporation,Inhabitant and
Enterprise Taxes 65.2 28.3 36.9 130.7
- ---------------------------------------------------------------------------------------------------------------------------
Net Income 117.6 63.0 54.5 86.5
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1. Beginning in this first-half statement, enterprise taxes have been
included in "Corporation, Inhabitant and Enterprise Taxes."
2. Tax effect accounting has not been used.
[Projection for Fiscal Year Ending March 31, 2000]
<TABLE>
<CAPTION>
(Billions of Yen)
- ---------------------------------------------------------------------------------------------------------------------------
Six-Months Ended Six-Months Ended Increase Percent Increase
Sept. 30, 1999 Sept. 30, 1998 (Decrease) (Decrease)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operating Revenues 6,063.0 6,137.0 (74.0) (1.2)
- ---------------------------------------------------------------------------------------------------------------------------
Operating Income 230.0 243.8 (13.8) (5.7)
- ---------------------------------------------------------------------------------------------------------------------------
Recurring Profit 201.0 237.3 (36.3) (15.3)
- ---------------------------------------------------------------------------------------------------------------------------
Net Income (284.0) 386.2 (670.2) -
- ---------------------------------------------------------------------------------------------------------------------------
Cumulative effect for prior year's
tax allocation 588.0 - 588.0 -
- ---------------------------------------------------------------------------------------------------------------------------
Net change in retained earnings 304.0 386.2 (82.2) (21.3)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: "Net change in retained earnings" is obtained by adding "Cumulative
effect for prior year's tax allocation" to "Net Income."
<PAGE>
[Breakdown of Operating Revenues and Operating Expenses]
(1) Operating Revenues
<TABLE>
<CAPTION>
(Unit: Billions of Yen)
- -------------------------------------------------------------------------------------------------------------------------------
Six-Months Ended Six-Months Ended Increase Percent Increase
Sept. 30, 1999 Sept. 30, 1998 (Decrease) (Decrease)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Voice Transmission Services 2,227.1 2,320.5 (93.3) (4.0)
Major Items:
Telephone Services Revenues 1,845.8 2,050.3 (204.5) (10.0)
Monthly Charge Revenues 811.2 846.5 (35.2) (4.2)
Call Rates Revenues 852.5 1,002.2 (149.6) (14.9)
Interconnection Call Revenues 167.8 198.9 (31.0) (15.6)
ISDN Services Revenues 380.0 268.8 111.1 41.4
Data Transmission Services Revenues 75.3 51.8 23.4 45.2
Major Items:
OCN Services Revenues 19.8 9.4 10.3 109.6
Leased Circuit Services 328.5 315.9 12.5 4.0
Major Items:
High-Speed Digital Circuits 117.4 109.9 7.5 6.8
Services Revenues
Telegram Services Revenues 37.1 40.3 (3.1) (7.9)
Other Services Revenues 150.6 148.3 2.3 1.6
Related Business Revenues 171.9 152.4 19.4 12.8
Major Items:
System Integration Service 49.6 33.9 15.6 46.2
Revenue
- -------------------------------------------------------------------------------------------------------------------------------
Total 2,990.8 3,029.5 (38.7) (1.3)
- -------------------------------------------------------------------------------------------------------------------------------
(Reference) Information Network
Services Revenues 543.3 399.2 144.1 36.1
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: Operating revenues classifications were changed this year acccording to
the revised Accounting Regulation of the Telecommunications Business Laws
(2) Operating Expenses
<TABLE>
<CAPTION>
(Unit: Billions of Yen)
- -------------------------------------------------------------------------------------------------------------------------------
Six-Months Ended Six-Months Ended Increase Percent Increase
Sept. 30, 1999 Sept. 30, 1998 (Decrease) (Decrease)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Personnel 725.4 762.4 (37.0) (4.9)
Cost of Supplies 1,207.5 1,108.6 98.8 8.9
Service Fees for Subcontractors 35.5 41.5 (5.9) (14.4)
Depreciation 704.7 750.7 (45.9) (6.1)
Retirement of Fixed Assets 98.2 127.6 (29.3) (23.0)
Miscellaneous Taxes 89.5 98.5 (9.0) (9.2)
- -------------------------------------------------------------------------------------------------------------------------------
Total 2,861.0 2,889.4 (28.4) (1.0)
- -------------------------------------------------------------------------------------------------------------------------------
(Reference) Non-Operating Expenses 70.4 72.8 (2.3) (3.3)
Major Items:
Financial Expenses 47.5 52.0 (4.4) (8.6)
Loss on Securities Revaluation - 17.2 (17.2) -
Administrative expenses of Leased
property 18.9 - 18.9 -
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
[Assets, Liabilities and Shareholders' Equity]
<TABLE>
<CAPTION>
(Billions of Yen)
- -------------------------------------------------------------------------------------------------------------------------
Six-Months Ended March 31,1999 Increase Percent Increase
Sept. 30, 1999 (Decrease) (Decrease)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Fixed Assets 9,185.9 9,361.0 (175.1) (1.9)
------------------------------------------------------------------------------------------------------------------
Current Assets 1,906.0 2,106.3 (200.2) (9.5)
------------------------------------------------------------------------------------------------------------------
Total Assets 11,092.0 11,467.3 (375.3) (3.3)
- -------------------------------------------------------------------------------------------------------------------------
Long-Term Liabilities 4,589.8 4,269.1 320.6 7.5
------------------------------------------------------------------------------------------------------------------
Current Liabilities 1,669.8 2,290.6 (620.8) (27.1)
------------------------------------------------------------------------------------------------------------------
Total Liabilities 6,259.6 6,559.8 (300.1) (4.6)
- -------------------------------------------------------------------------------------------------------------------------
Interest-Bearing Liabilities 2,915.7 2,666.5 249.1 9.3
- -------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity 4,832.3 4,907.5 (75.2) (1.5)
- -------------------------------------------------------------------------------------------------------------------------
Total of Liabilities and Shareholders'
Equity 11,092.0 11,467.3 (375.3) (3.3)
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
[Reference]
1. Number of Subscriber Lines
<TABLE>
<CAPTION>
(Thousands)
- -------------------------------------------------------------------------------------------------------------------------
Sept. 30, 1999 Sept. 30, 1998 Increase Percent Increase
(Decrease) (Decrease)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Number of Telephone Subscriber
Lines 57,287 59,642 (2,355) (3.9)
------------------------------------------------------------------------------------------------------------------
Number of ISDN Subscriber Lines 5,701 3,438 2,263 65.8
------------------------------------------------------------------------------------------------------------------
Number of Subscriber Lines 62,989 63,080 (91) (0.1)
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: 1. "Number of Telephone Subscriber Lines" is the total of individual
lines, central station lines.
2. "Number of ISDN Subscriber Lines" (consisting of INS-Net 64, INS-Net
1500, INS-Net 64 Light ) is calculated in terms of INS-Net64.
2. Number of Employees
<TABLE>
<CAPTION>
(Employees)
- -------------------------------------------------------------------------------------------------------------------------
Sept. 30, 1999 Sept. 30, 1998 Increase Percent Increase
(Decrease) (Decrease)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Number of Employees 137,200 146,700 (9,500) (6.5)
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
3. Capital Expenditures
<TABLE>
<CAPTION>
(Billions of Yen)
- -------------------------------------------------------------------------------------------------------------------------
Sept. 30, 1999 Sept. 30, 1998 Increase Percent Increase
(Decrease) (Decrease)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital Expenditures 623.9 686.5 (62.5) (9.1)
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Nippon Telegraph and Telephone West
Corporation
November 24, 1999
Non-Consolidated Statements of Income
Interim Results for Fiscal Year Ending March 31, 2000
(Based on Japanese Accounting Principles)
[Profit and Loss]
(Unit: Billions of Yen)
- --------------------------------------------------------------------------------
Details Three-Months Ended Sept. 30, 1999
- --------------------------------------------------------------------------------
Operating Revenues 679.8
- --------------------------------------------------------------------------------
Operating Expenses 693.4
- --------------------------------------------------------------------------------
(Operating Income) (13.6)
- --------------------------------------------------------------------------------
(Non-Operating Income) (8.1
- --------------------------------------------------------------------------------
(Recurring Profit) (21.7)
- --------------------------------------------------------------------------------
Income Taxes 5.3
- --------------------------------------------------------------------------------
Net Income (27.1)
- --------------------------------------------------------------------------------
Note: Tax effect accounting has not been used.
[Projection for Fiscal Year Ending March 31, 2000]
(Unit: Billions of Yen)
- --------------------------------------------------------------------------------
Details Fiscal Year Ending March 31, 2000
- --------------------------------------------------------------------------------
Operating Revenues 2,048.0
- --------------------------------------------------------------------------------
Operating Income (54.0)
- --------------------------------------------------------------------------------
Recurring Profit (70.0)
- --------------------------------------------------------------------------------
Extraordinary Loss 372.0
- --------------------------------------------------------------------------------
Net Income (269.0)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Cumulative Effect for Prior Year's Tax Allocation 247.0
- --------------------------------------------------------------------------------
Net change in retained earnings * (22.0)
- --------------------------------------------------------------------------------
Note: "Net change in retained earnings" is obtained by adding "Cumulative
Effect for Prior Year's Tax Allocation" to "Net Income."
<PAGE>
[Breakdown of Operating Revenues and Operating Expenses]
<TABLE>
<CAPTION>
(1) Operating Revenues (Unit: Billions of Yen)
- -----------------------------------------------------------------------------------------------
Service Three-Months Ended -------------------
Sept. 30, 1999 Percentage of Total
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Voice Transmission Services Revenues 505.2 74.3
Telephone Services Revenues* 427.4 62.9
Monthly Charge Revenues* 199.5 29.4
Call Rates Revenues* 170.7 25.1
Interconnection Call Revenues* 69.7 10.3
ISDN Services Revenues* 77.4 11.4
Leased Circuit Services Revenues 75.1 11.1
High-Speed Digital Circuits Services Revenues* 28.4 4.2
Telegram Service Revenues 8.6 1.3
Other Services Revenues 39.6 5.8
Related Business Revenues 51.0 7.5
System Integration Service Revenue and Other* 15.1 2.2
- -----------------------------------------------------------------------------------------------
Total 679.8 100.0
- -----------------------------------------------------------------------------------------------
(Reference) Information Network Services Revenues 102.2 15.0
- -----------------------------------------------------------------------------------------------
</TABLE>
* Listed again
<TABLE>
<CAPTION>
(2) Operating Expenses (Unit: Billions of Yen)
- -----------------------------------------------------------------------------------------------
Details Three-Months Ended -------------------
Sept. 30, 1999 Percentage of Total
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Personnel 174.2 25.1
Cost of Supplies 316.1 45.6
Service Fees for Subcontractors 6.7 1.0
Depreciation 152.3 22.0
Retirement of Fixed Assets 24.6 3.5
Miscellaneous Taxes 19.2 2.8
- -----------------------------------------------------------------------------------------------
Total Operating Expenses 693.4 100.0
- -----------------------------------------------------------------------------------------------
(Reference) Non-Operating Expenses 17.2 -
- -----------------------------------------------------------------------------------------------
Financial Expenses* 9.4 -
- -----------------------------------------------------------------------------------------------
</TABLE>
* Listed again
<PAGE>
[Assets, Liabilities and Shareholders' Equity]
<TABLE>
<CAPTION>
(Unit: Billions of Yen)
- -----------------------------------------------------------------------------------------
Details Sept. 30, 1999 ----------------------
Percentage of Total
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Fixed Assets 3,775.5 78.6
------------------------------------------------------------------------------------
Current Assets 1,025.4 21.4
------------------------------------------------------------------------------------
Total Assets 4,801.0 100.0
- -----------------------------------------------------------------------------------------
Long-Term Liabilities 2,058.8 42.9
------------------------------------------------------------------------------------
Current Liabilities 894.2 18.6
------------------------------------------------------------------------------------
Total Liabilities 2,953.1 61.5
- -----------------------------------------------------------------------------------------
Interest-Bearing Liabilities* 1,340.2 27.9
- -----------------------------------------------------------------------------------------
Shareholders' Equity 1,847.8 38.5
- -----------------------------------------------------------------------------------------
Total of Liabilities and Shareholders' Equity 4,801.0 100.0
- -----------------------------------------------------------------------------------------
</TABLE>
* Listed again
[Reference]
1. Number of Subscriber Lines
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Details Sept. 30, 1999
- -----------------------------------------------------------------------------------------
<S> <C>
Number of Telephone Subscriber Lines (1,000) 28,929
-------------------------------------------------------------------------------------
Number of ISDN Subscriber Lines (1,000) 2,602
-------------------------------------------------------------------------------------
Number of Subscriber Lines 31,531
- -----------------------------------------------------------------------------------------
</TABLE>
Note: 1. "Number of Telephone Subscriber Lines" is the total of individual
lines and central station lines.
2. "Number of ISDN Subscriber Lines" (consisting of INS-Net 64, INS-Net
1500 and INS-Net 64 Light) is calculated in terms of INS-Net 64.
2. Number of Employees
<TABLE>
<CAPTION>
(Employees)
- -----------------------------------------------------------------------------------------
Details Sept. 30, 1999
- -----------------------------------------------------------------------------------------
<S> <C>
Number of Employees 67,200
- -----------------------------------------------------------------------------------------
</TABLE>
3. Capital Expenditures
<TABLE>
<CAPTION>
(Unit: Billions of Yen)
- -----------------------------------------------------------------------------------------
Details Three-Months Ended Sept. 30, 1999
- -----------------------------------------------------------------------------------------
<S> <C>
Capital Expenditures 141.2
- -----------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Nippon Telegraph and Telephone East Corporation
November 24, 1999
Non-Consolidated Statements of Income
Interim Results for Fiscal Year Ending March 31, 2000
(Based on Japanese Accounting Principles)
[Profit and Loss]
(Unit: Billions of Yen)
- --------------------------------------------------------------------------------
Details Three-Months Ended Sept. 30, 1999
- --------------------------------------------------------------------------------
Operating Revenues 696.5
- --------------------------------------------------------------------------------
Operating Expenses 681.4
- --------------------------------------------------------------------------------
(Operating Income) 15.1
- --------------------------------------------------------------------------------
(Non-Operating Income) (4.1)
- --------------------------------------------------------------------------------
(Recurring Profit) 10.9
- --------------------------------------------------------------------------------
Income Taxes 18.1
- --------------------------------------------------------------------------------
Net Income (7.1)
- --------------------------------------------------------------------------------
Note: Tax effect accounting has not been used.
[Projection for Fiscal Year Ending March 31, 2000]
(Billions of Yen)
- --------------------------------------------------------------------------------
Details Fiscal Year Ending March 31, 2000
- --------------------------------------------------------------------------------
Operating Revenues 2,140.0
- --------------------------------------------------------------------------------
Operating Income 44.0
- --------------------------------------------------------------------------------
Recurring Profit 29.0
- --------------------------------------------------------------------------------
Extraordinary Loss 328.0
- --------------------------------------------------------------------------------
Net Income (175.0)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Cumulative Effect for Prior Year's Tax Allocation 217.0
- --------------------------------------------------------------------------------
Net change in retained earnings * 42.0
- --------------------------------------------------------------------------------
Note: "Net change in retained earnings" is obtained by adding "Cumulative Effect
for Prior Year's Tax Allocation" to "Net Income."
<PAGE>
[Breakdown of Operating Revenues and Operating Expenses]
<TABLE>
<CAPTION>
(1) Operating Revenues (Unit: Billions of Yen)
- --------------------------------------------------------------------------------------------------
Three-Months
Service Ended Sept. 30, --------------------
1999 Percentage of Total
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Voice Transmission Services Revenues 514.8 73.9
Telephone Services Revenues* 420.0 60.3
Monthly Charge Revenues* 202.7 29.1
Call Rates Revenues* 168.4 24.2
Interconnection Call Revenues* 74.4 10.7
ISDN Services Revenues* 94.5 13.6
Leased Circuit Services Revenues 91.3 13.1
High-Speed Digital Circuits Services Revenues* 36.7 5.3
Telegram Service Revenues 8.0 1.2
Other Services Revenues 35.7 5.1
Related Business Revenues 46.5 6.7
System Integration Service Revenue and Other* 13.8 2.0
- --------------------------------------------------------------------------------------------------
Total 696.5 100.0
- --------------------------------------------------------------------------------------------------
(Reference) Information Network Services Revenues 126.8 18.2
- --------------------------------------------------------------------------------------------------
</TABLE>
* Listed again
<TABLE>
<CAPTION>
(2) Operating Expenses
- --------------------------------------------------------------------------------------------------
Three-Months
Details Ended Sept. 30, --------------------
1999 Percentage of Total
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Personnel 156.5 23.0
Cost of Supplies 313.9 46.1
Service Fees for Subcontractors 7.2 1.0
Depreciation 160.5 23.6
Retirement of Fixed Assets 22.5 3.3
Miscellaneous Taxes 20.5 3.0
- --------------------------------------------------------------------------------------------------
Total 681.4 100.0
- --------------------------------------------------------------------------------------------------
(Reference) Non-Operating Expenses 15.1 -
- --------------------------------------------------------------------------------------------------
Financial Expenses* 10.8 -
- --------------------------------------------------------------------------------------------------
</TABLE>
* Listed again
<PAGE>
[Assets, Liabilities and Shareholders' Equity]
<TABLE>
<CAPTION>
(Billions of Yen)
- ------------------------------------------------------------------------------------------------------
Details Sept. 30, 1999 --------------------
Percentage of Total
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
Fixed Assets 4,028.9 79.3
-----------------------------------------------------------------------------------------------
Current Assets 1,053.2 20.7
-----------------------------------------------------------------------------------------------
Total Assets 5,082.2 100.0
- ------------------------------------------------------------------------------------------------------
Long-Term Liabilities 2,079.2 40.9
-----------------------------------------------------------------------------------------------
Current Liabilities 995.8 19.6
-----------------------------------------------------------------------------------------------
Total Liabilities 3,075.1 60.5
- ------------------------------------------------------------------------------------------------------
Interest-Bearing Liabilities* 1,530.3 30.1
- ------------------------------------------------------------------------------------------------------
Shareholders' Equity 2,007.1 39.5
- ------------------------------------------------------------------------------------------------------
Total of Liabilities and Shareholders' Equity 5,082.2 100.0
- ------------------------------------------------------------------------------------------------------
</TABLE>
* Listed again
[Reference]
1. Number of Subscriber Lines
- --------------------------------------------------------------------------------
Details Sept. 30, 1999
- --------------------------------------------------------------------------------
Number of Telephone Subscriber Lines (1,000) 28,359
----------------------------------------------------------------------------
Number of ISDN Subscriber Lines (1,000) 3,099
----------------------------------------------------------------------------
Number of Subscriber Lines 31,458
- --------------------------------------------------------------------------------
Note: 1. "Number of Telephone Subscriber Lines" is the total of individual lines
and central station lines.
2. "Number of ISDN Subscriber Lines" (consisting of INS-Net 64, INS-Net
1500 and INS-Net 64 Light) is calculated in terms of INS-Net 64.
2. Number of Employees
(Employees)
- --------------------------------------------------------------------------------
Details Sept. 30, 1999
- --------------------------------------------------------------------------------
Number of Employees 59,550
- --------------------------------------------------------------------------------
3. Capital Expenditures
(Billions of Yen)
- --------------------------------------------------------------------------------
Details Three-Months Ended Sept. 30, 1999
- --------------------------------------------------------------------------------
Capital Expenditures 157.7
- --------------------------------------------------------------------------------
<PAGE>
November 24, 1999
NTT Communications Corporation
NON-CONSOLIDATED STATEMENTS OF INCOME
FOR FISCAL HALF-YEAR BEGINNING MAY 28 AND ENDED SEPTEMBER 30, 1999
(based on Japanese accounting principles)
Billions
of Yen
--------
Operating Revenues 357.6
Operating Expenses 324.2
Operating Income 33.3
Non-Operating Income 0.8
Recurring Profit 34.2
Income Taxes 17.0
Net Income 17.1
Note: Fractions are rounded down. Tax effect accounting not applied.
PROJECTION FOR YEAR ENDING MARCH 31, 2000
(based on Japanese accounting principles)
Billions
of Yen
--------
Operating Revenues 1,067.0
Operating Income 118.0
Recurring Profit 118.0
Extraordinary Loss 16.0
Net Income 61.0
Cumulative Effect for Prior Year's Tax Allocation 12.0
<PAGE>
November 24, 1999
NTT Communications Corporation
Net change in retained earnings * 73.0
* " Net change in retained earnings " is obtained by adding "Cumulative Effect
for Prior Year's Tax Allocation" to "Net Income."
Note: Fractions are rounded down.
<PAGE>
BREAKDOWN OF OPERATING REVENUES AND OPERATING EXPENSES
FOR FISCAL HALF-YEAR BEGINNING MAY 28 AND ENDED SEPTEMBER 30, 1999
(based on Japanese accounting principles)
Billions
of Yen % of Total
--------
OPERATING REVENUES
Voice Transmission Services 225.8 63.2
Major Items:
Telephone Services Revenues 172.1 48.1
Call Rates Revenues 155.7 43.5
ISDN Services Revenues 53.6 15.0
Data Transmission Services Revenues 52.1 14.6
Major Item:
Packet Exchange Services Revenues 25.2 7.0
Frame-Relay Services Revenues 11.2 3.1
Open Computer Network Services Revenues 10.9 3.1
Leased-Circuit Services Revenues 62.7 17.5
Major Item:
Conventional Leased-Circuit Services Revenues 11.9 3.3
High-Speed Digital Circuits Services Revenues 24.4 6.8
Other Services Revenues 0.4 0.1
Related-Business Revenues 16.4 4.6
Total 357.6 100.0
Reference: Information Network Services Revenues 122.2 34.2
OPERATING EXPENSES
Personnel 19.1 5.9
Cost of Supplies 102.0 31.5
Service Fees for Subcontractors 1.5 0.5
Depreciation 31.9 9.8
Retirement of Fixed Assets 2.2 0.7
Communication Network Charges 163.8 50.5
Miscellaneous Taxes 3.5 1.1
Total 324.2 100.0
Reference: Non-Operating Expenses 5.6
Major Item:
Financial Expenses 3.5
Note: Fractions are rounded down.
<PAGE>
BALANCE SHEET
FOR FISCAL HALF-YEAR BEGINNING MAY 28 AND ENDED SEPTEMBER 30, 1999
(based on Japanese accounting principles)
Billions
of Yen % of Total
--------
ASSETS
Fixed Assets 879.8 71.7
Current Assets 346.6 28.3
Total Assets 1,226.4 100.0
LIABILITIES
Long-Term Liabilities 434.6 35.4
Current Liabilities 340.7 27.8
Total Liabilities 775.4 63.2
Major Item:
Interest-Bearing Liabilities 480.3 39.2
SHAREHOLDERS' EQUITY 451.0 36.8
TOTAL OF LIABILITIES AND 1,226.4 100.0
SHAREHOLDERS' EQUITY
Note: Fractions are rounded down.
Reference
1. Employees (as of September 30, 1999)
6,750
2. Capital Expenditures
(for fiscal half-year beginning May 28 and ended September 30, 1999)
17.6 billion yen
