<PAGE>
THE TOTAL NUMBER OF PAGES CONTAINED IN THIS DOCUMENT IS 14
FORM 6-K
--------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of January 2000
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
(Translation of registrant's name into English)
3-1, OTEMACHI 2-CHOME
CHIYODA-KU, TOKYO 100-8116, JAPAN
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ____ No X
---
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-____________.
<PAGE>
2
INTERIM RESULTS:
Enclosed is information as to the registrant's financial condition and
results of operations at and for the six-month period ended September 30, 1999.
The financial information included in the enclosed discussion and analysis was
prepared on the basis of accounting principles generally accepted in the United
States.
<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: January 21, 2000
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED BALANCE SHEET (UNAUDITED)
--------------------------------------
<TABLE>
<CAPTION>
Millions of
U.S. dollars
Millions of yen (Note 2)
------------------------------------ -------------
March 31, September 30, September 30,
1999 1999 1999
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents (Yen) 1,656,672 (Yen) 1,371,936 $ 12,822
Notes and accounts receivable, trade 1,463,777 1,538,189 14,376
Allowance for doubtful accounts (40,287) (34,134) (319)
Inventories 195,843 240,751 2,250
Prepaid expenses and other current assets 641,745 427,151 3,992
- ---------------------------------------------------------------------------------------------------------------------
Total current assets 3,917,750 3,543,893 33,121
- ---------------------------------------------------------------------------------------------------------------------
Property, plant and equipment:
Telecommunications equipment 11,843,092 12,198,051 114,000
Telecommunications service lines 11,823,529 11,919,711 111,399
Buildings and structures 5,000,443 5,111,516 47,771
Machinery, vessels and tools 2,140,526 1,835,963 17,159
Land 697,938 702,572 6,566
Construction in progress 859,526 640,560 5,987
- ---------------------------------------------------------------------------------------------------------------------
32,365,054 32,408,373 302,882
Accumulated depreciation (20,203,236) (20,501,798) (191,606)
- ---------------------------------------------------------------------------------------------------------------------
12,161,818 11,906,575 111,276
- ---------------------------------------------------------------------------------------------------------------------
Investments and other assets:
Investments in affiliated companies 300,420 343,171 3,207
Marketable securities and other investments 163,754 229,737 2,147
Intangible and other assets 1,527,113 1,783,450 16,668
Deferred income taxes 502,393 557,010 5,206
- ---------------------------------------------------------------------------------------------------------------------
2,493,680 2,913,368 27,228
- ---------------------------------------------------------------------------------------------------------------------
(Yen)18,573,248 (Yen)18,363,836 $171,625
=====================================================================================================================
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED BALANCE SHEET (UNAUDITED)
--------------------------------------
<TABLE>
<CAPTION>
Millions of
U.S. dollars
Millions of yen (Note 2)
------------------------------------ -------------
March 31, September 30, September 30,
1999 1999 1999
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Short-term borrowings (Yen) 235,180 (Yen) 245,017 $ 2,290
Current portion of long-term debt 848,546 872,845 8,158
Accounts payable, trade 1,416,615 1,029,433 9,621
Accrued payroll 516,188 378,186 3,535
Accrued interest 44,586 50,403 471
Accrued taxes on income 491,803 221,193 2,067
Accrued consumption tax 22,370 63,701 595
Advances received 72,008 89,796 839
Other 96,684 129,833 1,213
- ----------------------------------------------------------------------------------------------------------------------
Total current liabilities 3,743,980 3,080,407 28,789
- ----------------------------------------------------------------------------------------------------------------------
Long-term liabilities:
Long-term debt 4,558,358 4,633,468 43,303
Obligations under capital leases 378,083 383,110 3,581
Liability for employees' severance payments 2,977,403 3,086,693 28,848
Other 211,635 296,197 2,768
- ----------------------------------------------------------------------------------------------------------------------
8,125,479 8,399,468 78,500
- ----------------------------------------------------------------------------------------------------------------------
Minority interest in consolidated subsidiaries 793,019 892,829 8,344
- ----------------------------------------------------------------------------------------------------------------------
Shareholders' equity (Notes 6 and 7):
Common stock, (Yen)50,000 par value -
Authorized - 62,400,000 shares Issued and outstanding:
- 15,912,000 shares at March 31, 1999 795,600 - -
- 15,863,102 shares at September 30, 1999 - 795,600 7,436
Additional paid-in capital 2,530,476 2,530,476 23,649
Retained earnings 2,628,272 2,668,390 24,938
Accumulated other comprehensive loss (43,578) (3,334) (31)
- ----------------------------------------------------------------------------------------------------------------------
5,910,770 5,991,132 55,992
- ----------------------------------------------------------------------------------------------------------------------
Commitments and contingent liabilities
- ----------------------------------------------------------------------------------------------------------------------
(Yen)18,573,248 (Yen)18,363,836 $171,625
======================================================================================================================
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
--------------------------------------------
SIX-MONTH PERIOD ENDED SEPTEMBER 30
-----------------------------------
<TABLE>
<CAPTION>
Millions of
U.S. dollars
Millions of yen (Note 2)
------------------------------------ -------------
1998 1999 1999
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operating revenues:
Telephone (Yen)3,161,571 (Yen)3,222,582 $30,118
Telegraph 40,966 38,812 363
Leased circuit 250,785 261,870 2,447
Data communication facility 187,256 201,721 1,885
ISDN services 247,961 373,433 3,490
Sale of telecommunication equipment 460,077 502,656 4,698
Miscellaneous 363,078 420,832 3,933
- ---------------------------------------------------------------------------------------------------------------------
4,711,694 5,021,906 46,934
- ---------------------------------------------------------------------------------------------------------------------
Operating expenses:
Personnel 1,103,619 1,169,891 10,934
Depreciation, amortization and
maintenance costs 1,541,795 1,611,871 15,064
Other 1,473,223 1,622,381 15,163
- ---------------------------------------------------------------------------------------------------------------------
4,118,637 4,404,143 41,161
- ---------------------------------------------------------------------------------------------------------------------
Operating income 593,057 617,763 5,773
- ---------------------------------------------------------------------------------------------------------------------
Other expenses (income):
Interest and amortization of bond discounts and issue
costs 108,979 94,981 888
Interest income (1,471) (16,631) (156)
Gain on sales of subsidiary stock (Note 5) (69,106) - -
Other, net (18,292) 7,380 69
- ---------------------------------------------------------------------------------------------------------------------
20,110 85,730 801
- ---------------------------------------------------------------------------------------------------------------------
Income before income taxes 572,947 532,033 4,972
- ---------------------------------------------------------------------------------------------------------------------
Income taxes:
Current 210,476 229,801 2,148
Deferred 74,327 (60) (1)
- ---------------------------------------------------------------------------------------------------------------------
284,803 229,741 2,147
- ---------------------------------------------------------------------------------------------------------------------
Income before extraordinary loss, minority interest and
equity in earnings of affiliated companies 288,144 302,292 2,825
Extraordinary loss for discontinuance of regulatory
accounting principles, net of taxes (Note 4)
(462,508) - -
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) before minority interest and
equity in earnings of affiliated companies (174,364) 302,292 2,825
Minority interest in consolidated subsidiaries (3,261) (81,645) (763)
Equity in earnings of affiliated companies 4,732 12,157 114
- ---------------------------------------------------------------------------------------------------------------------
Net income (loss) ((Yen) 172,893) (Yen) 232,804 $ 2,176
========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
U.S. dollars
Yen (Note 2)
--------------------------------------- ------------------
<S> <C> <C> <C>
Per share of common stock:
Extraordinary loss ((Yen)29,067) - -
- --------------------------------------------------------------------------------------------------------------------------
Net income (loss) ((Yen)10,866) (Yen)14,676 $137
- --------------------------------------------------------------------------------------------------------------------------
Cash dividends (Note 7) (Yen) 2,500 (Yen) 7,500 $ 70
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)
----------------------------------------------------------
SIX-MONTH PERIOD ENDED SEPTEMBER 30
-----------------------------------
<TABLE>
<CAPTION>
Millions of yen
----------------------------------------------------------------------------------------------------
Accumulated
Additional other Total Total
Common paid-in Retained comprehensive shareholder's comprehensive
stock capital earnings income (loss) equity income (loss)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance at March 31, 1998 (Yen)795,600 (Yen)2,530,476 (Yen)2,153,883 ((Yen)16,031) (Yen)5,463,928
Net income (loss) - - (172,893) - (172,893) ((Yen)172,893)
Cash dividends
(Yen)2,500 per share) - - (39,780) - (39,780)
Unrealized loss on
securities - - - (14,386) (14,386) (14,386)
Foreign currency
translation adjustments - - - 1,084 1,084 1,084
Other - - 105 - 105
- ------------------------------------------------------------------------------------------------------------------------------------
Balance at September 30,
1998 (Yen)795,600 (Yen)2,530,476 (Yen)1,941,315 ((Yen)29,333) (Yen)5,238,058 ((Yen)186,195)
====================================================================================================================================
Balance at March 31, 1999 (Yen)795,600 (Yen)2,530,476 (Yen)2,628,272 ((Yen)43,578) (Yen)5,910,770
Net income (loss) - - 232,804 - 232,804 (Yen)232,804
Cash dividends
((Yen)7,500 per share) - - (119,339) - (119,339)
Unrealized gain on
securities - - - 45,591 45,591 45,591
Foreign currency
translation adjustments - - - (6,270) (6,270) (6,270)
Minimum pension liability
adjustments - - - 923 923 923
Purchase and retirement
of common stock (Note 6) - - (73,347) - (73,347)
- ------------------------------------------------------------------------------------------------------------------------------------
Balance at September 30,
1999 (Yen)795,600 (Yen)2,530,476 (Yen)2,668,390 ((Yen)3,334) (Yen)5,991,132 (Yen)273,048
====================================================================================================================================
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)
---------------------------------------------------------
SIX-MONTH PERIOD ENDED SEPTEMBER 30
-----------------------------------
<TABLE>
<CAPTION>
Millions of U.S. dollars (Notes 2)
------------------------------------------------------------------------------------------------
Accumulated
Additional other Total Total
Common paid-in Retained comprehensive shareholder's comprehensive
stock capital earnings income (loss) equity income (loss)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance at March 31, 1999 $7,436 $23,649 $24,563 ($407) $55,241
Net income (loss) - - 2,176 - 2,176 $2,176
Cash dividends
((Yen)7,500 per share) - - (1,116) - (1,116)
Unrealized gain on
securities - - - 426 426 426
Foreign currency
translation adjustments - - - (59) (59) (59)
Minimum pension liability
adjustments - - - 9 9 9
Purchase and retirement of
common stock (Note 6) - - (685) - (685)
- --------------------------------------------------------------------------------------------------------------------------------
Balance at September 30,
1999 $7,436 $23,649 $24,938 ($ 31) $55,992 $2,552
================================================================================================================================
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
------------------------------------------------
SIX-MONTH PERIOD ENDED SEPTEMBER 30
-----------------------------------
<TABLE>
<CAPTION>
Millions of
U.S. dollars
Millions of yen (Note 2)
--------------------------------------- ------------------
1998 1999 1999
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) (Yen)(172,893) (Yen)232,804 $2,176
Adjustments to reconcile net income to
net cash provided by operating activities -
Extraordinary loss, net of taxes (Note 4) 462,508 - -
Depreciation and amortization 1,074,063 1,108,343 10,358
Deferred taxes 74,327 (60) (1)
Minority interests 3,261 81,645 763
Loss on sale or disposal of property, plant and
equipment 66,501 81,005 757
Gains on sales of subsidiary stock (Note 5) (69,106) - -
(Increase) decrease in notes and
accounts receivable, trade 52,878 (80,565) (753)
Increase in inventories (65,143) (44,908) (420)
(Increase) decrease in other current assets (9,451) 145,356 1,359
Decrease in accounts payable, trade and accrued
payroll (268,781) (177,740) (1,661)
Increase (decrease) in accrued
consumption tax (51,922) 41,331 386
Increase in accrued interest 1,854 5,817 55
Increase in advances received 3,737 17,788 166
Increase (decrease) in accrued taxes on income 22,191 (270,610) (2,529)
Increase in liability for employees' severance
payments,net of deferred pension costs 47,862 111,913 1,046
Increase in other long-term liabilities 1,848 62,483 584
Other 10,307 (14,838) (139)
- -----------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 1,184,041 1,299,764 12,147
- -----------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Payments for property, plant and equipment (1,253,879) (1,242,374) (11,611)
Proceeds from sale of property, plant and equipment 6,374 4,741 44
Acquisition of investments in affiliates and
intangible and other assets (86,944) (319,308) (2,984)
Proceeds from sales of subsidiary stock
(Note 5) 150,370 - -
- -----------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (1,184,079) (1,556,941) (14,551)
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
------------------------------------------------
SIX-MONTH PERIOD ENDED SEPTEMBER 30
-----------------------------------
<TABLE>
<CAPTION>
Millions of
U.S. dollars
Millions of yen (Note 2)
--------------------------------------- ------------------
1998 1999 1999
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from financing activities:
Proceeds from issuance of long-term debt (Yen)317,993 (Yen)439,310 $4,106
Payments for settlement of long-term debt (446,503) (274,688) (2,567)
Purchase and retirement of common stock (Note 6) - (73,347) (685)
Dividends paid (39,779) (119,339) (1,115)
Increase (decrease) in short-term borrowings and other (58,159) 505 4
- -----------------------------------------------------------------------------------------------------------------------
Net cash used in financing activities (226,448) (27,559) (257)
- -----------------------------------------------------------------------------------------------------------------------
Decrease in cash and cash equivalents (226,486) (284,736) (2,661)
Cash and cash equivalents at beginning of period 913,236 1,656,672 15,483
- -----------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period (Yen)686,750 (Yen)1,371,936 $12,822
=======================================================================================================================
Cash paid during the period for:
Interest (Yen)107,125 (Yen)61,484 $575
=======================================================================================================================
Income taxes (Yen)186,798 (Yen)488,740 $4,568
=======================================================================================================================
Capital lease obligations incurred during
the period (Yen)17,632 (Yen)16,673 $156
=======================================================================================================================
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
------------------------------------------
AND ITS SUBSIDIARIES
--------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)
-----------------------------------------------------
1. These consolidated financial statements have been prepared in accordance
with generally accepted accounting principles in the United States for
interim financial information and in accordance with the instructions to
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles in the United States for annual financial statements. In the
opinion of management, all adjustments (consisting only of normal recurring
adjustments) considered necessary for a fair presentation have been
included. Operating results for the six-month period ended September 30,
1999 are not necessarily indicative of the results that may be expected for
the year ending March 31, 2000. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
NTT's consolidated financial statements which is included in its Form 20-F
for the fiscal year ended March 31, 1999.
2. U.S. dollar amounts are included solely for convenience. These translations
should not be construed as representations that the yen amounts actually
represent, or have been or could be converted into, U.S. dollars. The rate
of (Yen)107= US$1, the approximate current rate at September 30, 1999, has
been used for the purpose of presentation of the U.S. dollar amounts in the
accompanying consolidated financial statements.
3. On May 10, 1999, NTT applied for approval from the Minister of Posts and
Telecommunications for "the Implementation Plans Concerning the Transfer of
the Business Activities and Succession of the Rights and Obligations of
Nippon Telegraph and Telephone Corporation", which were prepared in
accordance with "the Basic Principles Concerning the Transfer of the
Business Activities and Succession of the Rights and Obligations of Nippon
Telegraph and Telephone Corporation" as drawn up in accordance with the
provisions of the aforementioned legislation. On May 21, 1999, NTT received
the Minister of Posts and Telecommunications' approval for the plans. In
conjunction with these approved implementation plans that set out how the
business transfer would occur, reorganization was implemented in which NTT
became the holding company holding all the shares in two regional companies
(Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and
Telephone West Corporation) and one long-distance company (NTT
Communications Corporation).
<PAGE>
-2-
The transfers of businesses were accomplished by transferring on July 1,
1999, NTT's relevant business activities to the respective wholly owned
subsidiaries, Nippon Telegraph and Telephone East Corporation, Nippon
Telegraph and Telephone West Corporation, and NTT Communications
Corporation.
Nippon Telegraph and Telephone East Corporation inherited the intra-
prefectural telecommunications services in the Hokkaido, Tohoku, Kanto,
Tokyo and Shinetsu regions and related services. Nippon Telegraph and
Telephone West Corporation inherited the intra-prefectural
telecommunications services in the Tokai, Hokuriku, Kansai, Chugoku,
Shikoku and Kyushu regions and related services.
NTT Communications Corporation inherited all the business activities
comprising the domestic inter-prefecture telecommunications and multimedia
network services and related services and is allowed to enter the
international market.
4. In its financial statements as of and for the six-month period ended
September 30, 1998, NTT has discontinued the application of the provisions
of Statement of Financial Accounting Standards No. 71, "Accounting for the
Effects of Certain Types of Regulation" ("SFAS 71") for all of its
operations. Under SFAS 71, NTT had accounted for the effects of rate-making
process by establishing certain regulatory assets, including the deferral
of certain costs. Pursuant to the requirements of Statement of Financial
Accounting Standards No. 101, "Regulated Enterprises - Accounting for the
Discontinuation of Application of FASB Statement No. 71" ("SFAS 101"), NTT
recorded an extraordinary non-cash charge of (Yen)462 billion
($4,322million), net of income taxes of (Yen)427 billion ($3,990 million)
during the six-month period ended September 30, 1998 and has eliminated
(Yen)889 billion ($8,312 million) of regulatory assets from its balance
sheet as of September 30, 1998.
The major components of the eliminated regulatory assets were as follows:
<TABLE>
<CAPTION>
Pretax After-tax
------------------------------------- -------------------------------------
Millions of Millions of Millions of Millions of
yen U.S. dollars yen U.S. dollars
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Deferred compensated absences (Yen)105,693 $ 987 (Yen) 54,960 $ 513
Deferred pension costs 679,722 6,353 353,456 3,303
Unamortized purchases of the leased assets 104,024 972 54,092 506
- -------------------------------------------------------------------------------------------------------------------------------
Total (Yen)889,439 $8,312 (Yen)462,508 $4,322
===============================================================================================================================
</TABLE>
<PAGE>
-3-
5. On May 12, 1998, NTT Data Corporation ("NTT DATA"), a consolidated
subsidiary, issued 27,500 shares of common stock in a public offering to
third parties at a price of (Yen)5,468 thousand ($51,102) per share, which
was in excess of NTT's average per share carrying value. The issuance of
these shares of (Yen)150,370 million ($1,405 million) is regarded as a sale
of a part of the Company's interest in NTT DATA. As a result of the
issuance, the Company's shareholding in NTT DATA declined from 60 percent
to 54 percent. The resulting pretax gain on the sale of subsidiary stocks
in the aggregate amount of approximately (Yen)69,106 million ($646 million)
is recognized in the consolidated financial statements for the six-month
period ended September 30, 1998, as well as applicable deferred taxes
thereon. In the consolidated statement of cash flows for the six-month
period ended September 30, 1998, the gain on sale of subsidiary stocks is
excluded from the cash flows from operating activities and the related cash
proceeds of (Yen)150,370 million ($1,405 million) are included in the cash
flows from investing activities.
6. In accordance with the Commercial Law of Japan, the Board of Directors has
obtained the approval of shareholders to acquire and retire stock of NTT
during the period beginning from June 29, 1999 and continuing to the
conclusion of the next Ordinary General Meeting of Shareholders at a cost
not to exceed (Yen)120,000 million ($1,121 million) with funds derived from
retained profits of NTT. On July 13, 1999, NTT repurchased 48,898 shares
through transaction executed on the Tokyo Stock Exchange at the price of
(Yen)1,500,000 per share. As a result of the repurchase, the number of
outstanding shares was reduced to 15,863,102 and retained earnings were
reduced by (Yen)73,347 million ($685 million). Repurchases of common stock
are accounted for in accordance with Japanese Commercial Code and customary
practices in Japan as a reduction to retained earnings for the cost of the
repurchase.
7. The year-end dividend for the fiscal year ended March 31, 1999 was
(Yen)2,500 per share, to which a special dividend of (Yen)5,000 per share
was added for a total dividend of (Yen)7,500 per share in commemoration of
the successful listing of NTT subsidiary, NTT Mobile Communications Network
Inc. (NTT DoCoMo) on the First Section of the Tokyo Stock Exchange.
8. Certain items for the six-month period ended September 30, 1998 and at that
date have been reclassified to conform to the 1999 presentation.
<PAGE>
-4-
9. At September 30, 1999 there were no material litigation or claims
outstanding, pending or threatened against the Company.
Subsequent events
- -----------------
Subsequent to September 30, 1999, NTT issued (Yen)80,000 million ($748 million)
coupon yen-denominated bonds, and NTT DATA issued (Yen)30,000 million ($280
million) coupon bonds.
