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 term under review, severe conditions persisted in the Japanese economy with private demand showing continued weakness. However, signs of a mild recovery were seen toward the end of the term as shown in the improvement in corporate earnings and the recovery of plant and equipment investment.

In the information communication field, the ongoing revolution in information technologies (IT) can be expected to make a major contribution to invigorating and raising the general level of efficiency in social and economic activities. This market has been expanding at an accelerated pace in line with the growing sophistication, diversification and globalization of needs and has supported dramatic technological innovations leading to the rapid emergence of the multimedia age.

Dynamic changes in market structure have intensified the level of competition throughout the information communication markets. These changes include the shift from fixed-line to mobile telephones and from voice-based communication to data communication. Globalization and multimedia developments have extended this competitive environment to include the markets for international and mobile communications. Likewise, competition in the regional communication markets has been intensified by the advances made in GC interconnection and the increasing number of enterprises providing high-speed Internet access services using ADSL, wireless and optical fiber technologies.

Given this business environment, NTT West is endeavoring to provide high-quality and stable services while focusing on the achievement of such management goals as "building a profitable structure" and "transformation into a information sharing company." NTT West has been actively working towards stabilizing and reinforcing its management foundations by pursing new sources of revenue and improving customer services.

With regard to new revenue sources, NTT West has started marketing the "i-ai Plan," a discount service for ISDN-based access to the Internet. The company is also offering flat-rate Internet access services, such as the "IP connection service" and the "ADSL Internet access service," on an experimental basis. Further steps are being taken toward upgrading customer services, including the "i-Pack" option which offers fixed-amount discounts to customers subscribing to a multiple number of add-on functions.

NTT West is seeking to secure new sources of income in the solutions business and has launched the "MI-24" service, an outsourcing service for the maintenance and operation of information communication systems.

In a related initiative, NTT SmartConnect Corp. was launched on March 1, 2000 as a wholly owned subsidiary of NTT West. The aim of the new company is to enable the NTT West Group to develop speedy and strategic responses in the field of IP-related businesses.

One of the themes in the improvement of customer services has been the adjustment of service formats to match the needs of increasingly diverse and changing lifestyles, such as the growing number of double-career households. To reach out to such customers, the operating hours of the "dial 116" service has been extended to include Saturdays, Sundays and holidays.

In a similar move, NTT West has launched the "NTT West Net-116" service which allows customers to apply for ISDN and standard telephone lines via the Internet. Customers are now able to go on-line to choose a new telephone number and to designate an installation date.

NTT West is firmly committed to improving management and operational efficiencies. On November 17, 1999, the company announced its "Mid-term Restructuring Plan" covering the three-year period between fiscal years 2000 and 2002. Preparations are now being made for the launch of this plan which features the streamlining of management and operational functions, personnel reduction through reassignment and other measures, cutbacks in plant and equipment investment, and reductions in consignment charges and other expenses.

NTT West is also concerned with environmental issues and has formulated the "NTT West Global Environmental Charter" and a concrete action program to give direction to its environmental protection activities.

With regard to the Y2K problem, NTT West implemented various preventive measures and developed extensive contingency plans. The company spared no efforts in preparation for critical dates (when Y2K problems were most likely to occur) at the end and start of the year and again on February 29, and was in position to take speedy and comprehensive action in case of trouble. As a result of these efforts, no problems occurred with repercussions on the telecommunications field and NTT West was able to maintain stable and uninterrupted services throughout the period.

NTT West's financial performance during the period under review was as follows: operating revenues amounted to 2,071.6 billion yen, and ordinary loss amounted to 43.0 billion yen.

During the period under review, NTT West registered special losses related to a 365.9 billion yen addition to retirement allowance reserves. As a result, net loss came to 239.2 billion yen.



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