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HOME  News Release  1. Summary of Results for the Fiscal Year Ended March 31, 2018

1. Summary of Results for the Fiscal Year Ended March 31, 2018

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 these goals.

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 communality in telecommunications by, for example, promoting the smooth migration to 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 a wide range of services that match each customer's patterns of usage.

<1> Efforts to Promote 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 promote sales through business alliances, while at the same time also improving on its services and quality.

For Hikari access services, 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 Hikari Collaboration providers while also engaging in support activities for existing Hikari Collaboration providers. As of the fiscal year ended March 31, 2018, the number of Hikari Collaboration providers exceeded 490, and the number of subscriptions exceeded 4.5 million.

In addition, NTT West worked to smoothly transition its customers from “B FLET'S (for 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 of these efforts, the number of subscriptions for Hikari access services as a whole exceeded 9.0 million as of the fiscal year ended March 31, 2018.

In the area of Wi-Fi services, NTT West worked to expand the coverage area of “Free Wi-Fi” in collaboration with local governments. As of March 31, 2018, more than 100 local governments in 30 different prefectures utilized the “Gotouchi Free Wi-Fi” service for tourist spots.

In addition, in September 2017, NTT West began to offer the “High-End Plan,” which provides enhanced functionality for visitors, as part of its corporate Wi-Fi service “Smart Hikari Business Wi-Fi” plan.

<2> Initiatives in the Solutions Business

NTT West continued to proactively offer alliances and solution proposals to companies and local governments, and has undertaken initiatives to deploy “Smart Hikari Solutions” to solve various social problems and satisfy regional customers' needs through the utilization of ICT.

With respect to alliances, NTT West provided an LPWA (low-power, wide area) network test environment to the city of Fukuoka and worked to create usage scenarios for the LPWA network. NTT West also conducted tests in Kyoto prefecture by utilizing LPWA networks with a variety of sensors to make industrial waste collection more efficient. In addition, NTT West also worked to create new businesses through trials of road diagnostic services that utilize AI to establish efficient road maintenance cycles in the city of Sakai, working with Kajima Corporation to create a safe working environment by conducting tests of worker safety support services that utilize vital data and location information, and other initiatives.

NTT West also works to expand its service offerings by, for example, launching “Security Omakase Plan,” which offers comprehensive total support for cybersecurity measures, with an aim to resolve issues caused by cyberattacks and ransomware.

<3> Status of Business Operation Structure

With respect to NTT West's business operation structure, in order to further promote diversity in human resources and in other areas, the “Diversity Promotion Office” adopted the new role of promoting “Workplace Reform” in July 2017, and worked to create a company that is easy to work for and rewarding. Furthermore, from the perspective of clarifying its position as a group responsible for the further strengthening of CRM activities, the name of the “Marketing Department” was changed to “Sales Promotion Department.”

In the area of disaster preparedness, when the heavy storms stuck northern Kyushu in July 2017, 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 establishing special public telephones and special public Wi-Fi, as well as providing disaster message dialing services (171) and disaster message boards (web 171), 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 its facilities, such as planned facility inspections and the planned elimination of unsafe equipment, such as through the removal of service wires and the replacement of telephone poles. 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 procurement costs by utilizing device equipment and reducing costs of materials, and increasing remote operations of construction related work, such as by conducting repair work from remote locations.

In addition, with a view to achieving the goals of developing a pleasant work environment where both work and family can be balanced and creating a region that supports the next generation in accordance with the principle of “child-raising support” included in the Collaboration and Cooperation Agreement entered into with the city of Matsuyama in June 2016, NTT West opened a company-owned nursery school called “Yume Miiyo Nursery School” on the premises of its Ehime branch in October 2017, which local residents can also use.

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

Based on the NTT Group CSR Charter (revised on May 12, 2016) as well as the idea that the ICT services provided by NTT West can play an important role in the resolution of social issues, and also taking into consideration the Sustainable Development Goals (SDGs) movement adopted by the United Nations, NTT West revised its policy on CSR activities in November 2017. Specifically, NTT West adopted the five CSR themes of “creating a safe and secure society that connects people, things and the region,” “creating a prosperous society through the generation of innovation,” “creating a society that coexists with the environment,” “creating a vibrant society,” and “thorough compliance,” and established CSR focus activities based on those themes. NTT West also promoted CSR management, and revised its objectives with respect to the “visualization” benchmark for activities corresponding to these measures. 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,” which is the foundation of CSR management, NTT West has worked to eliminate misconduct and scandals, with particular focus on the five points of “on-the-job misconduct,” “driving while under the influence,” “information security incidents,” “power harassment” and “respect for human rights,” by providing training programs for all employees and other initiatives in order to ensure compliance by fostering awareness and preventing the occurrence of incidents.

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 2017” and the “NTT West Group Environmental Annual Report 2017” to proactively disclose relevant information to its stakeholders.

<5> Financial Standing

As a result of the above, operating revenues totaled 1,432.9 billion yen (a decrease of 3.1% from the previous fiscal year), operating income was 167.4 billion yen (an increase of 75.9% from the previous fiscal year), income before income taxes was 163.7 billion yen (an increase of 85.7% from the previous fiscal year), and net profit was 72.4 billion yen (an increase of 21.2% 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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