NTT, Inc.

Q3 FY2025 performance: revenue & profit strong, FX was a headwind - Operating revenue +JPY 371.3bn YoY to JPY 10,421bn (Q3 record high operating revenue). - Operating profit +JPY 57.9bn YoY to JPY 1,457.1bn; profit to JPY 926.1bn (+JPY 75.4bn YoY). - EBITDA +JPY 104.8bn YoY to JPY 2,657.3bn. - Key negative: operating revenue impacted by about JPY 55bn due to FX (driven by enterprise expansion across group companies and data-center transfers for REIT).

Full-year guidance: NTT forecast revised downward (DOCOMO + NTT DATA items) - Management says the consolidated FY2025 forecast was revised downward to reflect revisions in DOCOMO and NTT DATA Group. - DOCOMO: competitive environment has required greater-than-expected investment (customer base reinforcement + network quality). Operating profit revised down by JPY 83bn. - NTT DATA (especially related item): operating profit revised down to JPY 26bn, citing realization of REIT data-center transfer gains now lower due to FX/market environment exchange-rate fluctuations. - Investors should treat this as not a demand collapse, but margin pressure from spending needs + FX-related timing/realization effects.

DOCOMO outlook: customer share & retention efforts continue; “bottoming out” expected but competition risk remains - For the 3G sunset milestone: DOCOMO is recommending 4G/5G migration and using device discounts; management believes ~2m subscriptions remain (many likely IoT), with emphasis on meticulous migration support. - DOCOMO’s mission: maintain/expand customer base and improve quality; management stated next fiscal year efforts will continue. - Competitive environment is expected to persist; management explicitly framed that the messaging is not to reduce share below 35% (maintain value-added services ecosystem). - Capital expenditure: base-station/quality capex expected to continue increasing; management suggested venue-related investment is large this year, implying smart-life/venue-related spend drops next year. - Cost driver clarification (why worse than initial plan): - Network quality investment mainly about JPY 50bn/year type of incremental spend. - Sales promotion costs exceeded expectations: competitors kept pushing; docomo also faced handset return provisioning when customer churn/returns were higher than expected.