Direction of Global Business - NTT · other market . Solutionary ... Leveraging NTT America’s data center, NTT Data provides Private Cloud & BPO ... HQ in Malaysia

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Direction of Global Business


The forward-looking statements and projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding NTT and its subsidiaries and affiliates, the economy and telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere, other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein, as well as other risks included in NTT’s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.


Global business*1 performance track record

USD12B 2008.1

2008.10

2009.10

2010.10

2010.12

2011.6

2010.7

2008/3 2009/3 2010/3 2012/3 2011/3

USD 2B USD 2.6B USD 2.9B USD 4.8B

USD 11.6B ※

2013/3

2012.11 Consolidated sales of NTT Group companies excluding those in Japan

* Month and year as of M&A completion

http://www.itelligence.de/index.php

http://www.keane.com/uk

http://www.intelligroup.com/

http://www.integralis.com/index.html


AMERICAS EMEA APAC

Revenue & number of employees by regions

Revenue $ 3B (FY2012)

Employees 11,000


Employees 18,000


Employees 25,000

Apps

IT infra.

Apps

IT infra.

Apps

IT infra.


Formation of NTT Group global business

Customers

Management Services

Advisory Services

Migration Services

Operational Services

R&D

Applications Solutions Services

Managed ICT

Data Centers Networks

http://www.ntt.com/

http://www.nttdocomo.co.jp/

http://www.ntt.com/


NTT Group at a Glance

$130 billion total revenue

227,000 employed worldwide

World #1 Telco in revenue

160

Network coverage in

countries & regions

80% choose NTT Group

of Fortune Global 100

72 Direct presence in

countries & regions

All facts and figures accurate as of March 2013

No. 2 in Data Center

No. 2 in Global IP Backbone

Top 10 in Marine Cable


Why Dimension Data?

1. Global non-Japanese client basis

4. Profitability (favorable balance)

2. Management capability, entrepreneurship, maintaining / leveraging enterprise culture of management

3. Complementary business with NTT Group (business synergy)

5. Shared vision, mutual confidence and trust


Development of new business model

Opsource (Cloud platform provider)

•NTT invested in Feb. 2009 •DimensionData made an acquisition in July 2011

Vigilent (DC air-conditioning System)

• NTT Facilities Entered into MOU on joint exploration in July 2010

• NTT Facilities complete exclusive contract in Jan 2011

Centerstance (Business process analysis and cloud migration consultation) • Salesforce.com platinum partner. • Acquired by NTT in Sept 2012.

EMEA

Build-up Collaboration model with start-up companies mainly in silicon valley

Development of new business model

Expanding other market

Expanding other market

Solutionary (Managed security service provider)

• Acquired Leader position in Gartner MQ(NA) in 2012. • Acquired by NTT in Aug 2013.

Asia

USA EMEA

Japan


Communication Outsourcing and Professional Services Cloud Infrastructure as a Service

Market evaluation for DiData

[attribution and disclaimers] Gartner, “Magic Quadrant for Communications Outsourcing and Professional Services” Eric Goodness, Christine Tenneson, 20 December 2012. Gartner “Magic Quadrant for Cloud Infrastructure as a Service” by Lydia Leong, et al., 18 October 2012. This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Nippon Telegraph and Telephone corporation. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


MSSPs, North America

Market evaluation for Solutionary

[attribution and disclaimers] Gartner “Magic Quadrant for for MSSPs, North America” by Kelly M. Kavanagh, 15 November 2012. This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Nippon Telegraph and Telephone corporation. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


NTT Group’s Business Strategy


0

200

400

600

800

1000

1200

1400

2012 2016

$1,120B

$1,300B CAGR 3.7%

(USD B)

Cloud Services

Consulting + BPO + ADM

IT Outsourcing

NW integration + DC

Product Support

Network Services

DC systems (servers, routers, etc)

* Cloud Services = IaaS, PaaS, SaaS, Advisory, Migration, Implementation, TaaS (Testing as a Services)

*

ICT services market size (Worldwide)

Source: NTT Corp. based on materials by McKinsey and others

* Those numbers excludes software, end-user devices and telephone service.

Cloud Services Over $120B

(CAGR 33%)


$2B

$11B

$20B

FY2016 Target FY2007 FY2011

Global business is the “Growth Driver” of NTT Group Aggressively invest for the coming 5 years in order to develop sustainable business model

Customer needs

Industry trends

NTT Group strength

Business model transformation

Footprint in emerging countries

Accelerated investment

Apps NW/ DC Mobility + Managed

service + + R&D +

M&A Partnering Enhancing HR

IP Dev Organic


NTT Group’s global business development

Security

Applications

Mobile Network Wi-Fi

Infrastructure

Global Network

Suggest combined business analysis and ICT services

Business A

nalysis

Cloud

Mobility

Big D

ata M

2M

Mobile Network Wi-Fi

Global DC/ Network

On-premise Off-premise

Developed Countries ICT Services

Developing Countries

Advisory Services

Total system visualization from applications to devices

Appealing to Customers

Support customers’ business transformations as an ICT strategic partner

Provide end-to-end and secure ICT management

Provide flexible and high-quality ICT services, including services of other companies

ICT Management

Security Management

Existing IT Systems

Cloud Platform

PF

Migration of business applications to cloud Standardized

Cloud, etc.

Security Cross-industrial platform


2 1

4

3

5 6

Promote cross-selling from IT infrastructure to applications, leveraging cloud as trigger

▪ Acquire new customers ▪ Strengthen service proposal for existing customer base

Customer Experience Center

IP Development (NTT I3)

Strategic partnership

M&A to build new business model

Brand awareness (NTT Group, NTT Clouds)

2016

$20B $12B

2012

$8B

$3B (Organic, M&A)

(Organic, M&A)

Action plans for NTT global business growth

IT Outsourcing

Network integration

DC

NW

BPO

ADM Enterprise Mobility

Cloud / Security

Strengthen value proposition of NTT group


2

4

3

5 6 Customer Experience Center




Brand awareness (NTT Group, NTT Clouds)

1

2016

$20B $12B

2012

$3B (Organic, M&A)

$8B (Organic, M&A)


IT Outsourcing

Network integration

DC

NW

BPO

ADM

Enterprise Mobility

Cloud / Security





0

100

200

300

400

500

600

2010 4Q 2011 1Q 2011 2Q 2011 3Q 2011 4Q 2012 1Q 2012 2Q 2012 3Q 2012 4Q 2013 1Q2010 3-4Q

240

210

60

30

0

45

15

Cross-Selling Contract Value

US$280M (4Q, 2010 ～ 4Q, 2012)

US$560M (4Q, 2010 ～ 1Q, 2013)

+$280M in 3 months

Accumulated Contract Value

Quarterly Contract Value

(Acc Contract Value：US$M) (Q contract Value：US$M)


Promotion of cross-selling

Cross selling between DiData and NTT Com in global IT infrastructure area. Business opportunities not covered previously.

Proactively propose “Application + IT Infrastructure” projects leveraging cloud as trigger, and won several new large customers.

Promote Global Account Management for existing large customers.

$280M for 2 years (2010/10-2013/3)

Texas Department of Transportation

$***M AMO + ITO + Security (won in May 2013)

Yum! Brands Inc. $***M Cloud + ERP + BPO (won in July 2013)

Moreover, +$280M for recent 3 more months, $560M in total (2010/10-2013/6)


Yum! Brands, Inc

Advisory Migration Operation & management

Background

Solution

World's largest restaurant company with 500,000 employees across 39,000 restaurants in 130 countries. Brands includes KFC, Pizza Hut, and Taco Bell. Business challenge was high cost structure, slow adoption of innovation, and the need for better IT services. Needed a partner to support their global business by injecting innovation into their Kentucky operations center.

Migrated on-premises based operation center to Cloud.

Leveraging NTT America’s data center, NTT Data provides Private Cloud & BPO of full technology stack and full lifecycle.

Optimized roadmap and architecture through NTT’s proprietary cloud analysis tools powered by NTT I3.

Managed services delivered from NTT DATA’s U.S. Service Delivery Center

Cloud DirectSM assessments

Migrate mainframe & 1000+ servers to Cloud

• 24/7 Service Desk • Management and

operations of NTT Data Cloud Centers

Oracle PeopleSoft ERP

Private Cloud with DR

BPO

Applications

Infrastructure

North America Service Delivery Center

Data Center


Texas Department of Transportation (TxDOT) Background

Solution

Governmental agency responsible for supporting Texas’s aviation/rail/public transportation infrastructure and maintaining 80,000 miles of roadway. Business challenge was transforming its IT organization to be interconnected, dynamic, fast, and reliable. Needed a partner who excelled at managing complex infrastructure and application environments with documented and repeatable best practices.

Triggered by cloud services, NTT group provides wide range of ICT solutions such as application modernization and end-user support, ensuring security.

NTT DATA provides service integration and DR/BCP

Dimension Data provides communication/security solution.

Solutionary provides managed security services with their ActiveGuard (under discussion).

Application management

Customer relations services

Communi-cations

Engineering services

IT security management

• 24/7 Helpdesk support • Device support for end user • DR/BCP via Cloud

• Unified communication platform (migrate, operate and manage)

• LAN migration and management

• IT Support for ＣＡＤ, ＧＩＳ, ＧＰＳ, etc (research applications and related system)

• IT security services including anti-threat (FW, anti-virus mgt) and intrusion incident handling

• Managed security services (under discussion)

• Application development/maintenance/ quality assurance using DynAMO methodology

1

2

3

4

5


Maybank 背景および顧客要望

The Business Times（September 30, 2013）

Background HQ in Malaysia. Over 2,200 offices in 17 countries with over 46,000 employees serving more than 22 million customers worldwide. Maybank wanted a more efficient and better way to deliver improved end-user experience and wanted to do so by migrating to a new DC that could also facilitate the business’ expansion. In addition, the customer wanted to prepare backup DC. Needed a partner to support solving customer’s issues such as scalability of the servers.

Solution

High quality DC NW in DC Relocation support for DC Building infrastructure inside DC utilizing Cloud Smooth delivery through collaboration between NTT Com and DiData

PJ total size：S$55M (US$44M)

This PJ is introduced by local media

http://www.ntt.com/


5 6 Customer Experience Center Brand awareness (NTT Group, NTT Clouds)

1

2016

$20B $12B

2012

$3B (Organic, M&A)

$8B (Organic, M&A)


IT Outsourcing

Network integration

DC

NW

BPO

ADM

Enterprise Mobility

Cloud / Security




2

4

3





Established NTT I3 in Silicon Valley Accelerate R&D from North America by market-in approach, starting from cloud and security areas

(1) Deploy developed IP

(2) Deploy standardised service

Mid/small enterprises

Large enterprises

Emerging market

Developed market Communicate

internally and externally

Analyst

Partner

Customer (2)Security

(1) Cloud


1

2016

$20B $12B

2012

$3B (Organic, M&A)

$8B (Organic, M&A)


IT Outsourcing

Network integration

DC

NW

BPO

ADM

Enterprise Mobility

Cloud / Security




2

4

3




5 6 Customer Experience Center Brand awareness (NTT Group, NTT Clouds)


Images of CXC


Customer eXperience Center

Test bed

CXC (Customer Experience Center) initiatives

(1) Appeal entire NTT Group value proposition

(2) Build and strengthen relationships with customer CXOs

Customer

(3) Identify customers' market needs

(4) Build and strengthen relationships with stakeholders such as analysts

Stakeholders (analysts, etc.)

NTT Group OpCos

Joint Solutions

Joint Development

Partners

http://www.ntt.com/


NTT clouds

(November @ San Francisco） (October @Orlando,

November @ Barcelona)

Operational Services

Advisory Services

Migration Services

Management Services

Application

Infrastructure

dream force

http://www.ntt.com/

http://www.nttdocomo.co.jp/


Strategic options to build sustainable global businesses

1. Sharpen core competences in the area of cloud services 2. Further enhancement of strong IT infrastructure 3. Strengthen total capability to offer from infrastructure to SI services

Network

Datacenter

Network integration

ADM

BPO

ＩＴ outsourcing IT infrastructure SI services

Strengthen total capability of service offering

Further enhancement of strong IT infrastructure


FY2012A (2013.3)

FY2016 (2017.3)

FY2017～

$12B

$20B

●

●

Mid-term forecast of operating income

Sales

Sales

Increase top line by organic growth and M&A

Operating income to sales

Operating income

Operating income

・Upfront investment for building new business models

・Contribution to profit by new business models ・Further streamlining by

expanding business scale

Documents

Direction of Global Business - NTT · other market . Solutionary ... Leveraging NTT America’s data center, NTT Data provides Private Cloud & BPO ... HQ in Malaysia