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HOME  News Release  1. Summary of Results for the Fiscal Year Ended March 31, 2017

1. Summary of Results for the Fiscal Year Ended March 31, 2017

Information and communications services are expected to make significant contributions to invigorating and increasing the efficiency of social and economic activities, improving lifestyle convenience and vitalizing local economies through advances in the development of new technologies such as AI, Big Data, and IoT. Accordingly, the government and the private sector are working in partnership to achieve the development of a new ICT-oriented society.

Moreover, the information and telecommunications market is undergoing structural changes as a result of the shift to broadband and globalization, as well as the spread of smart devices and social media, leading to increasingly sophisticated and diversified needs and patterns of usage. There have also been changes in market structure, including an increase in the utilization of Big Data and IoT as well as an expansion of platform services and cloud services. Regional telecommunications markets are also undergoing significant changes due to competition between the providers of fiber-optic access-based line services and cable television-based broadband services, competition between the various services made available by faster mobile connections, the convergence of fixed and mobile services and of telecommunications and broadcasting, and the convergence of services through the use of a diverse range of wireless devices.

Within this challenging and dramatically changing business environment, NTT West strove to ensure its reliability and fairness in telecommunications by, for example, promoting the smooth migration to optical, IP-based networks and enhancing the fiber-optic access network that is the base of broadband services, while continuing to provide high-quality, stable universal services.

NTT West also aimed to realize a broadband network environment that enables customers to connect ¥anytime, anywhere, and with anyone or anything, in comfort, safety, and with peace of mind, and to provide various reasonably priced calling plans that match each customer's patterns of usage, and a wide range of services.

<1> Efforts to Promote Fiber-optic and IP services

In relation to the promotion of fiber-optic and IP services, NTT West worked to provide a more comfortable, safer, and more secure next generation network (NGN). NTT West was committed to expanding its services that make use of fiber-optic access lines, such as Hikari Denwa and video distribution services. NTT West also aimed to develop services for businesses, further deliver appropriate and fair provision of the Hikari Collaboration Model to various service providers, and create new services by promoting business alliances, while at the same time also improving on its services and quality.

For Hikari access services, as with the previous period, with respect to the “Hikari Collaboration Model,” the wholesale provision of “FLET’S Hikari” and other services to various service providers, NTT West worked to further expand its services by proactively cultivating new service providers while also engaging in support activities for existing service providers.

As of the fiscal year ended March 31, 2017, the number of service providers of the model exceeded 380, and the number of subscriptions exceeded 3 million.

In addition, NTT West worked to smoothly transition its customers from “B FLET’S (for Condominium Type, Family 100 Type, Business Type, and Basic Type)” and “FLET’S Hikari Premium” to the high-performing “FLET’S Hikari Next” in order to ensure that they are able to have a more comfortable internet experience.

For “FLET’S Hikari” services, NTT West made efforts to improve its membership program, “CLUB NTT-West,” aimed at retaining its customers, by, among other things, providing a wider range of products for which membership program points can be redeemed.

As a result, the number of subscriptions for Hikari access services as a whole exceeded 8.8 million as of the fiscal year ended March 31, 2017.

In the area of optical IP telephone services, the total number of corporate IP telephone customers, which include “Hikari Denwa Office A (Ace)” and “Hikari Denwa Office Type,” exceeded the 2 million channel level on September 5, 2016.

In the area of Wi-Fi services, NTT West worked to expand the coverage area of “Gotouchi Free Wi-Fi” in collaboration with local governments in an effort to contribute to the revitalization of local governments by establishing a foundation for ICT. As of March 31, 2017, more than 80 local governments in 29 different prefectures utilized the Wi-Fi network.

<2> Initiatives in the Solutions Business

NTT West continued to proactively offer alliances and solution proposals to companies and local governments as it did in the previous year, and has been deploying “Smart Hikari Solutions” to satisfy regional customers’ needs through the utilization of ICT.

Some of the new service developments through alliances included collaborating with Sekisui Chemical Co., Ltd, to carry out a field trial of remote operations on water supply management, water levels, and temperature control in agricultural settings to test the utilization of LPWA (low-power, wide area) networks that can cover a wide area at low power consumption, as required for IoT, which aims to connect everything through the internet. In addition, in collaboration with Daikin Industries, Ltd., NTT West conducted a field trial by connecting an air conditioner to an LPWA network in order to constantly monitor the operating status of the air conditioner as well as indoor and outdoor spatial information. Furthermore, through its collaboration with Faith, Inc., NTT West launched the “FaRao PRO Hikari Box+,” an all-in-one service to support store management operations that includes in-store background music services, signage, and security cameras, among other features. In addition, in collaboration with Hyakusenrenma, Inc., NTT worked on the trial version of “Minpaku Support Pack,” a complete support solution package that establishes a communication environment for vacation rentals by owners (VRBO), or minpaku owners, and provides various types of services for lodgers at minpaku, to facilitate a comfortable, convenient and officially authorized minpaku environment, which is an area of expected rapid future growth.

NTT West also works to expand its service offerings by, for example, launching “Hikari Cloud PBX,” which aims to use cloud services to provide fundamental private branch exchange (PBX) functions, including extension number and group call functions for telephone systems.

<3> Status of Business Operation Structure

As part of its efforts to “create a safe and secure society,” NTT West established a summit task force for the Ise-Shima G7 Summit held in Mie Prefecture in May 2016. NTT West contributed to the smooth operation of the Summit by setting up a Summit Response Headquarters, coordinating with local branches to reinforce its maintenance capabilities, and strengthening its security systems against cyber-attacks.

In the area of disaster preparedness, when the Kumamoto earthquakes occurred in April 2016, NTT West quickly established a wide-area support system which included various other regions, thereby enabling the early recovery of services and the restoration of its facilities. Furthermore, NTT West worked to provide means of communication, such as disaster message dialing services, special public Wi-Fi, special public telephones and portable satellite telephones, for customers to use to confirm their safety and for the communication of disaster information in afflicted areas.

In addition, NTT West entered into an “Agreement on the Installation and Usage of Special Public Telephones” with various local governments, and pre-installed special public telephones, in order to provide immediate means of communication to people who have been evacuated when evacuation centers are established after large-scale disasters occur in the future.

NTT West also implemented measures to prevent accidents involving facilities, such as planned facility inspections, with the goal of eliminating third-party accidents caused by fallen lines. To prevent site accidents involving physical injury, NTT West worked to expand its safety measures by establishing a timeframe for improving safety promotion initiatives.

As part of its efforts to further enhance its management efficiency, NTT West worked to reduce material costs by utilizing device equipment and streamlining procurement operations for materials, and improving the efficiency of fiber optic service installations.

<4> Corporate Social Responsibility (“CSR”) Activities

In the area of CSR promotion, the “NTT Group CSR Charter” (revised on May 12, 2016) provides that, as a “Value Partner” for customers, NTT Group companies will provide services of the highest quality and reliability and contribute to the development of a safe, secure and prosperous society in which people, society and the earth are connected through “communications.” Based on the NTT Group CSR Charter, NTT West established three core CSR principles – “thorough compliance,” “development of a safe and secure society,” and “creation of value through business activities” – as well as a “visualization” benchmark for activities that support these principles. Each NTT West employee takes part in CSR activities, including working to maintain legal compliance, providing safe and reliable communication services, and reducing the burden on the environment.

To ensure “thorough compliance,” NTT West Group has focused on promoting group-wide initiatives in high-risk areas that have the potential to erode the trust of the general public and of consumers in NTT West group companies, namely eradicating “on-the-job misconduct,” “driving while under the influence,” “information security incidents” and “power harassment” as well as observing “respect for human rights,” by making posters to promote awareness and providing training programs for all employees in order to ensure compliance by increasing knowledge and preventing recurrence.

In the area of activities to give back to the community, since 1983, NTT West has continued to publish "Denwa Onegai Techo (Telephone Request Handbook) (Pamphlet Version)" as a communication tool that allows people with hearing or speech difficulties to write out their matters of concern or contacts in order to assist them in seeking help from those around them when they are away from home. In recent years, given that mobile devices with internet connectivity (such as smartphones and feature phones) have become widespread, NTT West developed the "Denwa Onegai Techo (Telephone Request Handbook) (Web/App Version)" in order to enhance user convenience, and launched the service on December 21, 2016.

Based on the “Green NTT West Strategy” established in June 2012, in order to “achieve its environmental grand design,” NTT West has been working to decrease its environmental burden by decreasing power usage, the amount of paper it uses, and the volume of its waste products. In addition, NTT West also worked on protecting the earth’s environment by undertaking community-based activities centered around tree-planting and plant growing, grass-cutting and cleaning activities pursuant to the “NTT West Midori Ippai Project” in order to “promote biodiversity preservation activities.”

NTT West has been promoting its group-wide CSR activities and enhancing its environmental management while instilling the principles of the NTT Group CSR Charter. NTT West also issued the “NTT West Group CSR Report 2016” and the “NTT West Group Environmental Annual Report 2016” to proactively disclose relevant information to its stakeholders.

<5> Financial Standing

As a result of the above, operating revenues totaled 1,479.0 billion yen (a decrease of 3.2% from the previous fiscal year), operating income was 95.1 billion yen (an increase of 28.5% from the previous fiscal year), income before income taxes was 88.1 billion yen (an increase of 31.3% from the previous fiscal year), and net profit was 59.7 billion yen (a decrease of 17.5% from the previous fiscal year).

* Information is current as of the date of issue of the individual press release.
Please be advised that information may be outdated after that point.

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