RNS Number:8822X
Nippon Telegraph and Telephone Corp
03 February 2006
Outline of Consolidated Financial Results February 3, 2006
For the Nine Months Ended December 31, 2005 (U.S. GAAP)
Name of registrant: Nippon Telegraph and Telephone Corporation
Code No.: 9432
Stock exchanges on which the Company's shares are listed: Tokyo, Osaka,
Nagoya, Fukuoka and Sapporo
Address of principal executive office: Tokyo, Japan
(URL http://www.ntt.co.jp/ir/)
Representative: Norio Wada, President
Contact: Shigehito Katsuki, Head of IR, Department 4/ TEL(03)5205-5581
1. Notes Related to the Preparation of the Quarterly Consolidated Financial
Statements
(1) Adoption of simplified accounting method: Yes
Income taxes are calculated using an estimated annual income tax rate based on the statutory tax rate.
(2) Change in accounting method from the most recent fiscal year: No
(3) Change in number of consolidated subsidiaries and affiliated companies accounted for under the equity method: Yes
Number of consolidated subsidiaries added: 68
Number of companies accounted for under the equity method added: 9
Number of consolidated subsidiaries removed: 46
Number of companies accounted for under the equity method removed: 54
2. Consolidated Financial Results for the Nine Months Ended December 31, 2005
(April 1, 2005 - December 31, 2005)
Amounts are rounded off to nearest million yen throughout this report.
(1) Consolidated Results of (Millions of yen, except per share amounts)
Operations -------------------------------------------------------------------------------
Operating Revenues Operating Income Income (Loss)
------------------------ -----------------------
before Income Taxes
--------------------
Nine months ended December 31, 2005 7,915,531 (0.9 %) 1,017,084 (10.1 %) 1,127,864 (31.1 %)
Nine months ended December 31, 2004 7,987,506 (2.6 %) 1,131,190 - % 1,637,247 - %
Year ended March 31, 2005 10,805,868 1,211,201 1,723,312
Net Income (Loss) Earnings (Loss) per Diluted Earnings per
------------------------ Share Share
----------------------- ---------------------
Nine months ended December 31, 2005 477,766 (31.6 %) 33,003.04 (yen ) - (yen )
Nine months ended December 31, 2004 698,448 - % 44,627.50 (yen ) - (yen )
Year ended March 31, 2005 710,184 45,891.26 (yen ) - (yen )
Notes: 1. Percentages above represent changes from the corresponding previous period. Since the consolidated
financial information (except Operating Revenues) for the nine months ended December 31, 2003 was not
prepared, year-on-year comparisons for the nine months ended December 31, 2004 are not available.
2. Weighted average number of shares outstanding
(consolidated):
For the nine months ended December 31, 2005: 14,476,423 shares
For the nine months ended December 31, 2004: 15,650,618 shares
For the year ended March 31, 2005: 15,475,366 shares
(2) Consolidated Financial (Millions of yen, except per share amounts)
Position ---------------------------------------------------------------------------
Total Shareholders' Equity Ratio Shareholders'
Assets Equity Equity
---------- (Ratio of
------------ Shareholders'
Equity per Share
to Total
Assets)
------------
December 31, 2005 18,837,271 6,712,238 35.6 % 485,616.19 (yen)
December 31, 2004 19,027,011 6,735,092 35.4 % 450,808.74 (yen)
---------- ------------ ------------ ------------ -----
March 31, 2005 19,098,584 6,768,603 35.4 % 453,059.74 (yen)
------
Note: Number of shares outstanding at end of period December 31, 13,822,105 shares
(consolidated): 2005:
December 31, 14,940,021 shares
2004:
March 31, 2005: 14,939,758 shares
(3) Consolidated Cash Flows (Millions of yen)
-------------------------------------------------------------------
Cash flows Cash flows Cash flows Cash and
from from from Cash
Operating Investing Financing Equivalents
Activities Activities Activities
---------- ---------- ---------- at End of
Period
-----------
Nine months ended December 31, 2005 2,052,301 (1,718,874 ) (692,491 ) 1,026,856
Nine months ended December 31, 2004 1,638,636 (1,230,493 ) (862,596 ) 978,697
---------- ---------- - ---------- - -----------
Year ended March 31, 2005 2,829,813 (1,768,361 ) (1,111,963 ) 1,381,959
-1-
--------------------------------------------------------------------------------
3. Consolidated Financial Results Forecasts for the Year Ending March 31, 2006
(April 1, 2005 - March 31, 2006)
(Millions of yen)
----------------------------------------
Operating Income Net
Revenues Income
---------- before -------
Income
Taxes
---------
Year ending March 31, 2006 10,705,000 1,255,000 525,000
(Reference) Expected Earnings per Share (Year ending March 31, 2006): 37,982.64
yen
------
Note: Forecasts for the fiscal year ending March 31, 2006 have never been changed from those announced on November 9,
2005.
With regard to the assumptions and other related matters concerning the above estimated results, please refer
to page 15.
* Consolidated financial statements are unaudited.
-2-
--------------------------------------------------------------------------------
1. Consolidated Balance Sheets
(Millions of yen)
----------------------------------------------
March 31, December Increase
2005 31, 2005
----------- ----------- (Decrease)
----------
ASSETS
Current assets:
Cash and cash equivalents 1,381,959 1,026,856 (355,103 )
Short-term investments 264,455 191,454 (73,001 )
Notes and accounts receivable, trade 1,846,176 2,050,818 204,642
Allowance for doubtful accounts (35,912 ) (33,471 ) 2,441
Inventories 284,826 327,375 42,549
Prepaid expenses and other current assets 453,173 372,131 (81,042 )
Deferred income taxes 321,936 269,037 (52,899 )
Total current assets 4,516,613 4,204,200 (312,413 )
Property, plant and equipment:
Telecommunications equipment 13,945,449 14,270,564 325,115
Telecommunications service lines 12,865,704 13,058,219 192,515
Buildings and structures 5,602,881 5,650,956 48,075
Machinery, vessels and tools 1,918,728 1,875,825 (42,903 )
Land 837,103 846,310 9,207
Construction in progress 258,455 311,592 53,137
Accumulated depreciation (24,947,768 ) (25,597,612 ) (649,844 )
Total property, plant and equipment 10,480,552 10,415,854 (64,698 )
Investments and other assets:
Investments in affiliated companies 178,033 271,594 93,561
Marketable securities and other investments 438,159 572,436 134,277
Goodwill, net 320,536 338,571 18,035
Other intangibles, net 1,329,631 1,330,645 1,014
Other assets 707,543 656,097 (51,446 )
Deferred income taxes 1,127,517 1,047,874 (79,643 )
Total investments and other assets 4,101,419 4,217,217 115,798
----------- - ----------- - ---------- -
TOTAL ASSETS 19,098,584 18,837,271 (261,313 )
----------- - ----------- - ---------- -
-3-
--------------------------------------------------------------------------------
(Millions of yen)
--------------------------------------------
March 31, December Increase
2005 31, 2005 (Decrease)
---------- ---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings 422,886 574,145 151,259
Current portion of long-term debt 779,198 918,230 139,032
Accounts payable, trade 1,465,229 1,273,805 (191,424 )
Accrued payroll 493,935 325,205 (168,730 )
Accrued interest 18,200 19,176 976
Accrued taxes on income 115,084 136,995 21,911
Accrued consumption tax 16,034 44,201 28,167
Advances received 67,389 57,990 (9,399 )
Other 301,624 329,386 27,762
Total current liabilities 3,679,579 3,679,133 (446 )
Long-term liabilities:
Long-term debt 4,323,751 4,125,317 (198,434 )
Obligations under capital leases 187,845 126,100 (61,745 )
Liability for employees' severance payments 1,861,073 1,864,234 3,161
Other 548,464 528,763 (19,701 )
Total long-term liabilities 6,921,133 6,644,414 (276,719 )
---------- - ---------- - ---------- -
Minority interest in consolidated subsidiaries 1,729,269 1,801,486 72,217
---------- - ---------- - ---------- -
SHAREHOLDERS' EQUITY:
Common stock 937,950 937,950 -
Additional paid-in capital 2,799,828 2,843,108 43,280
Retained earnings 3,334,866 3,726,346 391,480
Accumulated other comprehensive income (loss) 63,066 111,788 48,722
Treasury stock, at cost (367,107 ) (906,954 ) (539,847 )
Total shareholders' equity 6,768,603 6,712,238 (56,365 )
---------- - ---------- - ---------- -
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 19,098,584 18,837,271 (261,313 )
---------- - ---------- - ---------- -
-4-
--------------------------------------------------------------------------------
2. Consolidated Statements of Income
(Millions of yen)
-----------------------------------------------------------
Nine Nine Increase Year ended
months months (Decrease) March 31,
ended ended ---------- 2005
December December ----------
31, 2004 31, 2005
--------- ---------
Operating revenues:
Fixed voice related services 2,713,829 2,549,028 (164,801 ) 3,578,092
Mobile voice related services 2,422,220 2,365,571 (56,649 ) 3,216,107
IP/packet communications services 1,314,378 1,440,260 125,882 1,772,737
Sales of telecommunications equipment 510,507 443,059 (67,448 ) 688,083
System integration 578,956 620,989 42,033 910,273
Other 447,616 496,624 49,008 640,576
Total operating revenues 7,987,506 7,915,531 (71,975 ) 10,805,868
Operating expenses:
Cost of services (exclusive of items shown 1,687,657 1,642,990 (44,667 ) 2,349,151
separately below)
Cost of equipment sold (exclusive of items shown 920,552 922,252 1,700 1,260,252
separately below)
Cost of system integration (exclusive of items shown 358,902 381,831 22,929 592,035
separately below)
Depreciation and amortization 1,588,944 1,551,929 (37,015 ) 2,141,720
Impairment loss - 3,746 3,746 44,310
Selling, general and administrative expenses 2,300,261 2,395,699 95,438 3,207,199
Total operating expenses 6,856,316 6,898,447 42,131 9,594,667
Operating income 1,131,190 1,017,084 (114,106 ) 1,211,201
Other income (expenses):
Interest and amortization of bond discounts and (70,952 ) (58,559 ) 12,393 (93,966 )
issue costs
Interest income 19,134 23,569 4,435 26,288
Gains on sales of subsidiary stock 26,984 708 (26,276 ) 26,984
Gains on sales of investments in affiliated company 501,781 61,962 (439,819 ) 508,492
Other, net 29,110 83,100 53,990 44,313
Total other income and expenses 506,057 110,780 (395,277 ) 512,111
Income (loss) before income taxes 1,637,247 1,127,864 (509,383 ) 1,723,312
Income tax expense (benefit) 652,738 426,859 (225,879 ) 713,918
Income (loss) before minority interest and equity in 984,509 701,005 (283,504 ) 1,009,394
earnings (losses) of affiliated companies
Minority interest in consolidated subsidiaries 289,540 203,444 (86,096 ) 290,225
Equity in earnings (losses) of affiliated companies 3,479 (19,795 ) (23,274 ) (8,985 )
Net income (loss) 698,448 477,766 (220,682 ) 710,184
-5-
--------------------------------------------------------------------------------
3. Consolidated Statements of Shareholders' Equity
(Millions of yen)
----------------------------------------------------------
Nine Nine Increase Year
months months ended
ended ended (Decrease)
December December ---------- March 31,
31, 2004 31, 2005 2005
--------- --------- ---------
Common stock:
At beginning of period 937,950 937,950 - 937,950
At end of period 937,950 937,950 - 937,950
Additional paid-in capital:
At beginning of period 2,722,092 2,799,828 77,736 2,722,092
Increase in interest of investee 76,317 43,280 (33,037 ) 77,736
At end of period 2,798,409 2,843,108 44,699 2,799,828
Retained earnings:
At beginning of period 2,710,805 3,334,866 624,061 2,710,805
Appropriations
- Cash dividends (39,353 ) (44,819 ) (5,466 ) (39,353 )
Interim distribution
- Cash dividends (47,222 ) (41,467 ) 5,755 (47,222 )
Net income (loss) 698,448 477,766 (220,682 ) 710,184
Other 452 - (452 ) 452
At end of period 3,323,130 3,726,346 403,216 3,334,866
Accumulated comprehensive income (loss):
At beginning of period 27,129 63,066 35,937 27,129
Other comprehensive income (loss) 15,463 48,722 33,259 35,937
At end of period 42,592 111,788 69,196 63,066
Treasury stock, at cost
At beginning of period (4 ) (367,107 ) (367,103 ) (4 )
Net change in treasury stock (366,985 ) (539,847 ) (172,862 ) (367,103 )
At end of period (366,989 ) (906,954 ) (539,965 ) (367,107 )
Shareholders' equity at end of period 6,735,092 6,712,238 (22,854 ) 6,768,603
Summary of total comprehensive income (loss):
Net income (loss) 698,448 477,766 (220,682 ) 710,184
Other comprehensive income (loss) 15,463 48,722 33,259 35,937
Comprehensive income (loss) 713,911 526,488 (187,423 ) 746,121
-6-
--------------------------------------------------------------------------------
4. Consolidated Statements of Cash Flows
(Millions of yen)
-------------------------------------------------------------
Nine Nine Increase Year ended
months months March 31,
ended ended (Decrease) 2005
December December ---------- ----------
31, 2004 31, 2005
---------- ----------
I Cash flows from operating activities:
Net income (loss) 698,448 477,766 (220,682 ) (710,184 )
Adjustments to reconcile net income (loss) to net
cash provided by operating activities-
Depreciation and amortization 1,588,944 1,551,929 (37,015 ) (2,141,720 )
Impairment loss - 3,746 3,746 44,310
Minority interest in consolidated subsidiaries 289,540 203,444 (86,096 ) 290,225
Loss on disposal of property, plant and equipment 118,344 84,721 (33,623 ) (186,674 )
Gains on sales of subsidiary stock (26,984 ) (708 ) 26,276 (26,984 )
Gains on sales of investments in affiliated company (501,781 ) (61,962 ) 439,819 (508,492 )
Equity in (earnings) losses of affiliated companies (3,479 ) 19,795 23,274 (8,985 )
(Increase) decrease in notes and accounts (214,343 ) (202,865 ) 11,478 (37,130 )
receivable, trade
(Increase) decrease in inventories (94,895 ) (42,460 ) 52,435 (46,771 )
(Increase) decrease in other current assets (133,266 ) (10,592 ) 122,674 (66,897 )
Increase (decrease) in accounts payable, trade and (213,420 ) (240,846 ) (27,426 ) (29,595 )
accrued payroll
Increase (decrease) in accrued consumption tax (16,587 ) 28,011 44,598 (35,483 )
Increase (decrease) in accrued interest 1,493 669 (824 ) (782 )
Increase (decrease) in advances received (1,205 ) (9,906 ) (8,701 ) 8,292
Increase (decrease) in accrued taxes on income (269,140 ) 21,721 290,861 (231,037 )
Increase (decrease) in other current liabilities 33,074 41,003 7,929 65,114
Increase (decrease) in liability for employees' 18,253 7,227 (11,026 ) (95,606 )
severance payments, net of deferred pension costs
Increase (decrease) in other long-term liabilities (4,194 ) (12,308 ) (8,114 ) (49,903 )
Other 369,834 193,916 (175,918 ) 443,799
---------- - ---------- - ---------- - ----------
-
Net cash provided by operating activities 1,638,636 2,052,301 413,665 2,829,813
II Cash flows from investing activities:
Payments for property, plant and equipment (1,263,055 ) (1,419,669 ) (156,614 ) (1,610,991 )
Proceeds from sale of property, plant and equipment 33,637 23,145 (10,492 ) 54,095
Payments for purchase of non-current investments (37,072 ) (240,376 ) (203,304 ) (195,892 )
Proceeds from sale of non-current investments 757,370 54,230 (703,140 ) 776,369
Payments for purchase of short-term investments (361,299 ) (251,854 ) 109,445 (361,850 )
Proceeds from redemption of short-term investments - 366,740 366,740 113,576
Acquisition of intangible and other assets (360,074 ) (251,090 ) 108,984 (543,668 )
---------- - ---------- - ---------- - ---------- -
Net cash used in investing activities (1,230,493 ) (1,718,874 ) (488,381 ) (1,768,361 )
III Cash flows from financing activities:
Proceeds from issuance of long-term debt 283,609 318,398 34,789 343,814
Payments for settlement of long-term debt (622,591 ) (375,037 ) 247,554 (893,682 )
Dividends paid (86,575 ) (86,286 ) 289 (86,575 )
Payments to acquire treasury stock (366,985 ) (539,847 ) (172,862 ) (367,103 )
Payments for acquisition of subsidiary stocks from (65,824 ) (30,321 ) 35,503 (105,363 )
minority shareholders
Net increase (decrease) in short-term borrowings and (4,230 ) 20,602 24,832 (3,054 )
other
---------- - ---------- - ---------- - ---------- -
Net cash provided by (used in) financing activities (862,596 ) (692,491 ) 170,105 (1,111,963 )
IV Effect of exchange rate changes on cash and 1,729 3,961 2,232 1,049
cash equivalents
---------- - ---------- - ---------- - ---------- -
V Net increase (decrease) in cash and cash (452,724 ) (355,103 ) 97,621 (49,462 )
equivalents
VI Cash and cash equivalents at beginning of 1,431,421 1,381,959 (49,462 ) 1,431,421
period
VII Cash and cash equivalents at end of period 978,697 1,026,856 48,159 1,381,959
---------- - ---------- - ---------- - ---------- -
-7-
--------------------------------------------------------------------------------
(Note)
Significant Matters Pertaining to the Preparation of Consolidated Financial
Statements
The consolidated financial statements of NTT have been prepared in conformity
with accounting principles generally accepted in the United States of America
(Accounting Principles Board Opinions, Statements of Financial Accounting
Standards, etc).
Application of New Accounting Standard
Accounting for Conditional Asset Retirement Obligations
Effective April 1, 2005, NTT Group adopted the Financial Accounting Standards
Board ("FASB") Interpretation No. 47 ("FIN 47") "Accounting for Conditional
Asset Retirement Obligations - an interpretation of FASB Statement No. 143." FIN
47 provides guidance relating to the identification of and financial reporting
for legal obligations to perform an asset retirement activity. The
Interpretation requires recognition of a liability for the fair value of a
conditional asset retirement obligation when incurred if the liability"s fair
value can be reasonably estimated. The adoption of FIN 47 did not have an impact
on the results of operations or the financial position of NTT Group.
(Reference)
Details of "Operating revenues" classified by the corresponding
previous period's service categories
(Millions of yen)
---------------------------
Nine Nine
months months
ended ended
December December
31, 2004 31, 2005
--------- ---------
Fixed voice transmission services 2,245,015 2,088,118
Mobile voice transmission services 2,375,094 2,340,825
Data transmission services 1,181,745 1,256,169
Leased circuit 323,381 355,805
Sales of telecommunications equipment 510,507 443,059
System integration 578,956 620,989
Other 772,808 810,566
--------- ---------
Total 7,987,506 7,915,531
--------- ---------
-8-
--------------------------------------------------------------------------------
5. Business Segments
(Consolidated)
1. Sales and operating revenues
(Millions of yen)
-------------------------------------------------------------
Nine Nine Increase Year ended
months months (Decrease)
ended ended ---------- March 31,
2005
December December ----------
31, 2004 31, 2005
---------- ----------
Regional communications business
Customers 2,919,445 2,822,202 (97,243 ) 3,937,789
Intersegment 471,209 476,540 5,331 651,772
---------- - ---------- - ---------- - ----------
Total 3,390,654 3,298,742 (91,912 ) 4,589,561
---------- - ---------- - ---------- - ----------
Long distance and international communications
business
Customers 765,119 796,850 31,731 1,045,218
Intersegment 85,264 81,154 (4,110 ) 119,580
---------- - ---------- - ---------- - ----------
Total 850,383 878,004 27,621 1,164,798
---------- - ---------- - ---------- - ----------
Mobile communications business
Customers 3,626,333 3,542,858 (83,475 ) 4,821,941
Intersegment 16,765 39,390 22,625 22,669
---------- - ---------- - ---------- - ----------
Total 3,643,098 3,582,248 (60,850 ) 4,844,610
---------- - ---------- - ---------- - ----------
Data communications business
Customers 481,689 503,670 21,981 721,816
Intersegment 74,307 80,478 6,171 110,804
---------- - ---------- - ---------- - ----------
Total 555,996 584,148 28,152 832,620
---------- - ---------- - ---------- - ----------
Other
Customers 194,920 249,951 55,031 279,104
Intersegment 674,987 667,724 (7,263 ) 946,619
---------- - ---------- - ---------- - ----------
Total 869,907 917,675 47,768 1,225,723
---------- - ---------- - ---------- - ----------
Elimination of intersegment (1,322,532 ) (1,345,286 ) (22,754 ) (1,851,444 )
---------- - ---------- - ---------- - ----------
Consolidated total 7,987,506 7,915,531 (71,975 ) 10,805,868
---------- - ---------- - ---------- - ----------
2. Segment profit or loss
(Millions of yen)
---------------------------------------------------------
Nine Nine Increase Year
months months (Decrease) ended
ended ended ----------
March 31,
December December 2005
31, 2004 31, 2005 ---------
--------- ---------
Operating income
Regional communications business 217,361 169,715 (47,646 ) 246,759
Long distance and international communications business 63,464 59,856 (3,608 ) 62,329
Mobile communications business 751,350 693,480 (57,870 ) 784,166
Data communications business 29,328 23,919 (5,409 ) 36,894
Other 55,268 58,390 3,122 37,554
--------- --------- ---------- - ---------
Total 1,116,771 1,005,360 (111,411 ) 1,167,702
--------- --------- ---------- - ---------
Elimination of intersegment 14,419 11,724 (2,695 ) 43,499
--------- --------- ---------- - ---------
Consolidated total 1,131,190 1,017,084 (114,106 ) 1,211,201
--------- --------- ---------- - ---------
-9-
--------------------------------------------------------------------------------
Outline of Non-consolidated Financial Results February 3, 2006
For the Nine Months Ended December 31, 2005 (Japanese GAAP)
Name of registrant: Nippon Telegraph and Telephone Corporation
Code No.: 9432
Stock exchanges on which the Company's shares are listed: Tokyo, Osaka,
Nagoya, Fukuoka and Sapporo
Address of principal executive office: Tokyo, Japan
(URL http://www.ntt.co.jp/ir/)
Representative: Norio Wada, President
Contact: Shigehito Katsuki, Head of IR, Department 4/ TEL (03) 5205-5581
1. Notes Related to the Preparation of the Quarterly Non-consolidated Financial
Statements
(1) Adoption of simplified accounting method: Yes
Income taxes are calculated using an estimated annual income tax rate based on
the statutory tax rate.
(2) Change in accounting method from the most recent fiscal year: No
2. Non-consolidated Financial Results for the Nine Months Ended December 31,
2005 (April 1, 2005 - December 31, 2005)
Amounts are rounded off per 1 million yen throughout this report.
(1) Non-consolidated Results of Operations (Millions of yen, except per share amounts)
-----------------------------------------------------------------
Operating Operating Income Recurring Profit
Revenues ------------------- ---------------------
--------------
Nine months ended December 31, 2005 291,777 5.7 % 176,607 10.4 % 182,261 9.9 %
Nine months ended December 31, 2004 276,026 36.2 % 160,041 - % 165,908 - %
------- ------- ---------
Year ended March 31, 2005 323,261 143,709 151,700
Net Income Earnings per Share
------------------- ---------------------
Nine months ended December 31, 2005 401,945 (13.4 %) 27,765.55 (yen )
Nine months ended December 31, 2004 464,368 - % 29,670.93 (yen )
------- ---------
Year ended March 31, 2005 455,660 29,439.71 (yen )
------
Notes: 1. Percentages above represent changes from the corresponding previous period. Since the
non-consolidated financial information (except Operating Revenues) for the nine months ended December 31,
2003 was not prepared, year-on-year comparisons for the nine months ended December 31, 2004 are not
available.
2. Weighted average number of shares outstanding (non-consolidated):
For the nine months ended December 31, 2005: 14,476,423 shares
For the nine months ended December 31, 2004: 15,650,618 shares
For the year ended March 31, 2005: 15,475,366 shares
(2) Non-consolidated Financial (Millions of yen, except per share amounts)
Position --------------------------------------------------------------------------
Total Shareholders Equity Ratio Shareholders'
Assets '
--------- Equity (Ratio of Equity
------------ Shareholders' per Share
------------
Equity
to Total
Assets)
------------
December 31, 2005 8,290,560 4,952,947 59.7 % 358,335.24 (yen)
December 31, 2004 8,507,630 5,179,426 60.9 % 346,681.37 (yen)
--------- ------------ ------------ - ------------ ---
March 31, 2005 8,401,448 5,170,267 61.5 % 346,069.68 (yen)
------
Note: Number of shares outstanding at end of period December 31, 2005: 13,822,105 shares
(non-consolidated): December 31, 2004: 14,940,021 shares
March 31, 2005: 14,939,758 shares
3. Non-consolidated Financial Results Forecasts for the Year Ending March 31,
2006 (April 1, 2005 - March 31, 2006)
(Millions of yen)
---------------------------------------
Operating Recurring Net
Revenues Profit Income
--------- --------- -------
Year ending March 31, 2006 337,000 174,000 395,000
(Reference) Expected Earnings per Share (Year ending March 31, 2006): 28,577.41 yen
------
Note: Forecasts for the fiscal year ending March 31, 2006 have never been changed from those announced on November 9,
2005. With regard to the assumptions and other related matters concerning the above estimated results, please
refer to page 15.
* Non-consolidated financial statements are unaudited.
-10-
--------------------------------------------------------------------------------
1. Non-Consolidated Comparative Balance Sheets
(Millions of yen)
----------------------------------------
March 31, December Increase
2005 31, 2005 (Decrease)
--------- --------- ----------
ASSETS
Current assets:
Cash and bank deposits 115,806 11,495 (104,307 )
Accounts receivable, trade 1,567 329 (1,237 )
Supplies 213 256 42
Short-term loan receivable 426,792 448,426 21,633
Other current assets 124,039 86,954 (37,085 )
Total current assets 668,415 547,462 (120,952 )
Fixed assets:
Property, plant and equipment 217,430 208,044 (9,385 )
Intangible fixed assets 20,892 22,220 1,327
Investments and other assets
Investment securities 4,820,173 4,825,978 5,805
Long-term loan receivable to subsidiaries 2,617,890 2,634,856 16,966
Other investments 55,994 51,262 (4,732 )
Total investments and other assets 7,494,057 7,512,098 18,040
Total fixed assets 7,732,381 7,742,363 9,982
Deferred assets 652 734 82
--------- --------- ---------- -
TOTAL ASSETS 8,401,448 8,290,560 (110,888 )
--------- --------- ---------- -
-11-
--------------------------------------------------------------------------------
(Millions of yen)
--------------------------------------------
March 31, December Increase
2005 31, 2005 (Decrease)
--------- --------- ----------
LIABILITIES
Current liabilities:
Accounts payable, trade 1,135 264 (870 )
Short-term borrowings - 56,000 56,000
Current portion of corporate bonds 162,685 215,528 52,842
Current portion of long-term borrowings 256,244 203,784 (52,460 )
Accrued taxes on income 18,197 5,512 (12,684 )
Other current liabilities 146,807 113,658 (33,149 )
Total current liabilities 585,071 594,748 9,677
Long-term liabilities:
Corporate bonds 1,614,827 1,679,422 64,595
Long-term borrowings 1,001,578 1,033,064 31,485
Liability for employees' severance payments 29,299 29,989 690
Other long-term liabilities 404 388 (16 )
Total long-term liabilities 2,646,110 2,742,864 96,754
--------- - --------- - ---------- -
TOTAL LIABILITIES 3,231,181 3,337,612 106,431
--------- - --------- - ---------- -
SHAREHOLDERS' EQUITY
Common stock 937,950 937,950 -
Capital surplus
Additional paid-in capital 2,672,826 2,672,826 -
Total capital surplus 2,672,826 2,672,826 -
Earned surplus
Legal reserve 135,333 135,333 -
Voluntary reserve
Reserve for special depreciation 2,394 530 (1,863 )
Other reserve 1,131,000 1,131,000 -
Unappropriated retained earnings for the period 651,486 968,939 317,453
Total earned surplus 1,920,214 2,235,803 315,589
Net unrealized gains (losses) on securities 6,384 13,321 6,937
Treasury stock (367,107 ) (906,953 ) (539,846 )
--------- - --------- - ---------- -
TOTAL SHAREHOLDERS' EQUITY 5,170,267 4,952,947 (217,319 )
--------- - --------- - ---------- -
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 8,401,448 8,290,560 (110,888 )
--------- - --------- - ---------- -
-12-
--------------------------------------------------------------------------------
2. Non-Consolidated Comparative Statements of Income
(Millions of yen)
----------------------------------------------------------
Nine Nine Increase Year
months months (Decrease) ended
ended ended ---------- March
December December 31,
31, 2004 31, 2005 2005
--------- --------- -------
Operating revenues 276,026 291,777 15,751 323,261
Operating expenses 115,984 115,170 (813 ) 179,551
Operating income 160,041 176,607 16,565 143,709
Non-operating revenues: 52,780 47,928 (4,852 ) 69,483
Interest income 39,461 35,857 (3,604 ) 51,374
Lease income 10,233 9,109 (1,124 ) 13,636
Miscellaneous income 3,085 2,961 (124 ) 4,472
Non-operating expenses: 46,913 42,274 (4,639 ) 61,492
Interest expenses 13,454 13,333 (121 ) 17,915
Corporate bond interest expenses 28,134 23,055 (5,078 ) 35,794
Lease expenses 4,276 4,158 (117 ) 6,555
Miscellaneous expenses 1,048 1,726 678 1,226
Recurring profit 165,908 182,261 16,352 151,700
Special profits 350,659 250,666 (99,992 ) 350,659
Income before Income taxes 516,568 432,927 (83,640 ) 502,360
Corporation, inhabitant, and enterprise taxes 52,200 30,981 (21,218 ) 53,900
Deferred tax expenses (benefits) - - - (7,200 )
Net income 464,368 401,945 (62,422 ) 455,660
Unappropriated retained earnings brought forward 243,048 608,461 365,412 243,048
Interim dividends 47,222 41,467 (5,754 ) 47,222
Unappropriated retained earnings for the period 660,194 968,939 308,745 651,486
(Reference) Major components of operating revenues
Dividends received 144,067 169,025 24,958 144,067
Revenues from Group management 15,698 15,211 (487 ) 20,931
Revenues from basic R&D 104,426 95,158 (9,267 ) 139,234
-13-
--------------------------------------------------------------------------------
3. Non-Consolidated Comparative Statements of Cash Flows
(Millions of yen)
-------------------------------------------------------------
Nine Nine Increase Year
months months (Decrease) ended
ended ended ---------- March 31,
December December 2005
31, 2004 31, 2005 ---------
--------- ---------
I Cash flows from operating activities:
Income before income taxes 516,568 432,927 (83,640 ) 502,360
Depreciation and amortization 25,277 22,075 (3,201 ) 32,823
Loss on disposal of property, plant and equipment 504 445 (59 ) 1,682
Dividends received (144,067 ) (169,025 ) (24,958 ) (144,067 )
Gains on sales of investments in affiliated (350,659 ) (250,666 ) 99,992 (350,659 )
company
Increase (decrease) in liability for employees 1,306 690 (616 ) (194 )
' severance payments
(Increase) decrease in accounts receivable 56,048 42,224 (13,823 ) 19,011
Increase (decrease) in accounts payable and (86,069 ) (67,844 ) 18,224 (15,866 )
accrued expenses
Increase (decrease) in accrued consumption tax 124 966 842 (990 )
payable
Other (2,023 ) (5,787 ) (3,764 ) (2,981 )
--------- - --------- - ---------- - --------- -
Sub-total 17,009 6,005 (11,004 ) 41,118
Interest and dividends received 183,202 204,738 21,535 196,270
Interest paid (41,087 ) (35,785 ) 5,301 (55,060 )
Income taxes received (paid) 3,156 (57,464 ) (60,621 ) 3,121
--------- - --------- - ---------- - --------- -
Net cash provided by (used in) operating 162,281 117,493 (44,788 ) 185,449
activities
II Cash flows from investing activities:
Payments for property, plant and equipment (15,055 ) (18,220 ) (3,164 ) (22,357 )
Proceeds from sale of property, plant and 2 - (2 ) 617
equipment
Acquisition of investment securities (17,348 ) (229 ) 17,119 (17,348 )
Proceeds from sale of investment securities 355,568 256,107 (99,460 ) 355,623
Payments for long-term loans (176,733 ) (261,896 ) (85,162 ) (216,733 )
Proceeds from long-term loans receivable 267,119 229,684 (37,435 ) 470,058
Other 5,020 (14 ) (5,034 ) 5,011
--------- - --------- - ---------- - --------- -
Net cash provided by (used in) investing 418,572 205,431 (213,140 ) 574,871
activities
III Cash flows from financing activities:
Proceeds from issuance of long-term debt 196,148 311,724 115,575 236,148
Payments for settlement of long-term debt (284,284 ) (221,822 ) 62,461 (486,896 )
Net increase (decrease) in short-term borrowings - 109,000 109,000 -
Dividends paid (86,575 ) (86,286 ) 288 (86,575 )
Payments to acquire treasury stock (366,984 ) (539,846 ) (172,862 ) (367,102 )
--------- - --------- - ---------- - --------- -
Net cash provided by (used in) financing (541,695 ) (427,231 ) 114,464 (704,426 )
activities
IV Net increase (decrease) in cash and cash 39,158 (104,307 ) (143,465 ) 55,894
equivalents
V Cash and cash equivalents at beginning of 59,907 115,802 55,894 59,907
period
--------- - --------- - ---------- - --------- -
VI Cash and cash equivalents at end of period 99,066 11,495 (87,570 ) 115,802
--------- - --------- - ---------- - --------- -
-14-
--------------------------------------------------------------------------------
(Note)
The forward-looking statements and projected figures on the future performance
of NTT contained in this financial report are based on the judgments,
evaluations, recognition of facts, and formulation of plans by the current
management of NTT based on the information at their disposal. The projected
figures in this report were derived using certain assumptions that are
indispensable for making projections in addition to historical facts that have
been ascertained and acknowledged accurately. In view of the element of
uncertainty inherent in future projections, the possibility of fluctuations in
its future business operations, the state of the economy in Japan and abroad,
stock markets, and other circumstances, NTT's actual results could
differ materially from the projected figures contained in this report.
-15-
--------------------------------------------------------------------------------
February 3, 2006
FOR IMMEDIATE RELEASE
Financial Statements for the Third Quarter Ended December 31, 2005
The results of Nippon Telegraph and Telephone East Corporation (NTT East) for
the Third Quarter ended December 31, 2005 are presented in the following
attachments.
(Attachments)
1. Non-consolidated Comparative Balance Sheets
2. Non-consolidated Comparative Statements of Income
3. Business Results (Non-consolidated Operating Revenues)
4. Non-consolidated Comparative Statements of Cash Flows
Inquiries:
Hiroshi Niitsu and Kenkichi Nakata
Accounting Section, Finance Division
NTT East
Tel: (03) 5359-3331
E-mail: kessan@sinoa.east.ntt.co.jp
--------------------------------------------------------------------------------
1. Non-Consolidated Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
--------------------------------------------
March 31, December Increase
2005 31, 2005
--------- --------- (Decrease)
----------
ASSETS
Fixed assets:
Fixed assets-telecommunications businesses
Property, plant and equipment 2,968,134 2,933,412 (34,722 )
Machinery and equipment 580,807 558,542 (22,265 )
Antenna facilities 8,158 7,880 (277 )
Terminal equipment 30,769 43,489 12,719
Local line facilities 655,890 669,684 13,793
Long-distance line facilities 11,901 10,375 (1,525 )
Engineering facilities 766,392 740,267 (26,124 )
Submarine line facilities 1,050 885 (164 )
Buildings 622,535 620,665 (1,870 )
Construction in progress 28,245 28,873 628
Other 262,382 252,747 (9,634 )
Intangible fixed assets 105,746 97,978 (7,767 )
Total fixed assets-telecommunications businesses 3,073,880 3,031,391 (42,489 )
Investments and other assets
Deferred income taxes 347,781 344, 574 (3,206 )
Other investments 84,291 83,784 (506 )
Allowance for doubtful accounts (2,122 ) (2,780 ) (657 )
Total investments and other assets 429,950 425,578 (4,371 )
Total fixed assets 3,503,830 3,456,970 (46,860 )
Current assets:
Cash and bank deposits 107,637 91,568 (16,069 )
Notes receivable 131 30 (100 )
Accounts receivable, trade 370,104 369,522 (581 )
Supplies 29,475 32,599 3,123
Other current assets 81,202 70,486 (10,716 )
Allowance for doubtful accounts (4,082 ) (3,644 ) 438
Total current assets 584,469 560,563 (23,905 )
--------- - --------- - ---------- -
TOTAL ASSETS 4,088,300 4,017,533 (70,766 )
--------- - --------- - ---------- -
- 1 -
--------------------------------------------------------------------------------
(Millions of yen)
----------------------------------------
March 31, December Increase
2005 31, 2005
--------- --------- (Decrease)
----------
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company 883,881 842,045 (41,836 )
Liability for employees' severance payments 656,004 636,497 (19,506 )
Other long-term liabilities 7,359 7,374 15
Total long-term liabilities 1,547,245 1,485,917 (61,328 )
Current liabilities:
Current portion of long-term borrowings from parent company 144,171 142,454 (1,717 )
Accounts payable, trade 118,372 77,081 (41,290 )
Short-term borrowings - 40,000 40,000
Accounts payable, other 273,517 233,071 (40,446 )
Accrued taxes on income 2,676 *10,791 8,115
Other current liabilities 83,266 88,994 5,727
Total current liabilities 622,004 592,393 (29,610 )
--------- --------- ---------- -
TOTAL LIABILITIES 2,169,249 2,078,310 (90,938 )
--------- --------- ---------- -
SHAREHOLDERS' EQUITY
Common stock 335,000 335,000 -
Capital surplus
Additional paid-in capital 1,499,726 1,499,726 -
Total capital surplus 1,499,726 1,499,726 -
Earned surplus
Unappropriated retained earnings for the period 83,563 99,033 15,470
Total earned surplus 83,563 99,033 15,470
Net unrealized gains (losses) on securities 760 5,462 4,701
--------- --------- ---------- -
TOTAL SHAREHOLDERS' EQUITY 1,919,050 1,939,222 20,172
--------- --------- ---------- -
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,088,300 4,017,533 (70,766 )
--------- --------- ---------- -
------
Note: * NTT East participates in a consolidated tax return system which has been adopted by NTT (Holding company)
and its wholly-owned subsidiaries in Japan, however, income taxes have not been calculated on a consolidated
basis in the quarterly financial statements.
- 2 -
--------------------------------------------------------------------------------
2. Non-Consolidated Comparative Statements of Income
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
--------------------------------------------------------
Nine Nine Increase Year
months months ended
ended ended (Decrease) March 31,
December December ---------- 2005
31, 2004 31, 2005 ---------
--------- ---------
Recurring profits and losses
Operating revenues and expenses
Telecommunications businesses
Operating revenues 1,519,319 1,478,135 (41,183 ) 2,024,629
Operating expenses 1,436,761 1,412,755 (24,005 ) 1,937,555
Operating income from telecommunications 82,557 65,380 (17,177 ) 87,073
Related businesses
Operating revenues 104,165 100,793 (3,372 ) 156,298
Operating expenses 101,159 99,416 (1,743 ) 155,638
Operating income from related businesses 3,005 1,376 (1,629 ) 660
Operating income 85,563 66,756 (18,807 ) 87,733
Non-Operating revenues and expenses
Non-operating revenues: 42,092 46,926 4,833 61,006
Interest income 49 38 (10 ) 63
Lease income 36,850 41,597 4,746 53,563
Miscellaneous income 5,192 5,290 97 7,379
Non-operating expenses: 33,999 31,931 (2,067 ) 51,124
Interest expenses 13,425 12,417 (1,007 ) 17,628
Lease expenses 18,236 15,642 (2,594 ) 26,497
Miscellaneous expenses 2,337 3,871 1,534 6,997
Recurring profit 93,656 81,751 (11,905 ) 97,615
Special profits and losses
Special profits 4,750 1,358 (3,391 ) 8,397
Special losses 5,052 - (5,052 ) 6,736
Income before Income taxes 93,354 83,109 (10,244 ) 99,276
Corporation, inhabitant, and enterprise taxes *38,200 *34,083 (4,116 ) (21,153 )
Deferred tax expenses (benefits) * - * - - 62,300
Net income 55,154 49,025 (6,128 ) 58,129
Unappropriated retained earnings brought forward 25,433 50,008 24,574 25,433
Unappropriated retained earnings for the period 80,587 99,033 18,445 83,563
------
Note: * NTT East participates in a consolidated tax return system which has been adopted by NTT (Holding company)
and its wholly-owned subsidiaries in Japan, however, income taxes have not been calculated on a consolidated
basis in the quarterly financial statements.
- 3 -
--------------------------------------------------------------------------------
3. Business Results (Non-Consolidated Operating Revenues)
(Based on accounting principles generally accepted in Japan)
(Millions of Yen)
----------------------------------------------------------------------
Nine Nine Increase Percent Year
months months (Decrease) Increase ended
ended ended ---------- (Decrease)
December December ---------- March 31,
31, 31, 2005
-------
2004 2005
--------- ---------
Voice transmission services revenues 1,065,846 983,303 (82,542 ) (7.7 %) 1,401,433
(excluding the amounts of IP services
revenues)
Monthly charge revenues* 694,333 606,335 (87,998 ) (12.7 %) 903,629
Call rates revenues* 146,719 141,789 (4,929 ) (3.4 %) 190,405
Interconnection call revenues* 153,324 161,890 8,565 5.6 % 215,128
IP services revenues 153,080 197,423 44,343 29.0 % 211,357
Leased circuit services revenues (excluding 156,911 148,218 (8,692 ) (5.5 %) 208,730
the amounts of IP services revenues)
Telegram services revenues 20,240 19,526 (713 ) (3.5 %) 27,201
Other telecommunications services revenues 123,240 129,663 6,422 5.2 % 175,907
--------- --------- ---------- - ------- -- ---------
Telecommunications total revenues 1,519,319 1,478,135 (41,183 ) (2.7 %) 2,024,629
--------- --------- ---------- - -------- -- ---------
Related business total revenues 104,165 100,793 (3,372 ) (3.2 %) 156,298
--------- --------- ---------- - ------- -- ---------
Total operating revenues 1,623,485 1,578,929 (44,556 ) (2.7 %) 2,180,928
--------- --------- ---------- - ------- -- ---------
------
* Partial listing only
- 4 -
--------------------------------------------------------------------------------
4. Non-Consolidated Comparative Statements of Cash Flows
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
-----------------------------------------------------------
Nine Nine Increase Year
months months (Decrease) ended
ended ended ---------- March 31,
December December 2005
31, 31, ---------
2004 2005
-------- --------
I Cash flows from operating activities:
Income before income taxes 93,354 83,109 (10,244 ) 99,276
Depreciation and amortization 355,550 362,537 6,986 483,027
Loss on disposal of property, plant and equipment 25,996 15,542 (10,453 ) 40,136
Increase (decrease) in liability for employees (15,894 ) (19,506 ) (3,612 ) (72,575 )
' severance payments
(Increase) decrease in accounts receivable (20,349 ) 2,302 22,652 12,725
(Increase) decrease in inventories (604 ) (3,123 ) (2,519 ) 1,171
Increase (decrease) in accounts payable and accrued (170,191 ) (98,090 ) 72,101 (83,952 )
expenses
Increase (decrease) in accrued consumption tax 1,549 (164 ) (1,714 ) (158 )
payable
Other (14,884 ) (55,000 ) (40,115 ) (13,159 )
-------- - -------- - ---------- - --------- -
Sub-total 254,525 287,606 33,080 466,490
-------- - -------- - ---------- - --------- -
Interest and dividends received 287 383 95 297
Interest paid (12,654 ) (11,938 ) 715 (17,771 )
Income taxes received (paid) (16,051 ) 21,195 37,247 (16,095 )
-------- - -------- - ---------- - --------- -
Net cash provided by (used in) operating activities 226,107 297,246 71,139 432,922
-------- - -------- - ---------- - --------- -
II Cash flows from investing activities:
Payments for property, plant and equipment (299,320 ) (298,732 ) 587 (401,013 )
Proceeds from sale of property, plant and equipment 7,032 3,249 (3,782 ) 11,624
Acquisition of investment securities (6,360 ) (549 ) 5,810 (7,353 )
Proceeds from sale of investment securities 417 438 20 417
Other (3,803 ) 8,270 12,074 8,273
-------- - -------- - ---------- - --------- -
Net cash provided by (used in) investing activities (302,034 ) (287,324 ) 14,710 (388,050 )
-------- - -------- - ---------- - --------- -
III Cash flows from financing activities:
Proceeds from issuance of long-term debt 17,950 35,000 17,050 17,950
Payments for settlement of long-term debt (73,907 ) (78,553 ) (4,646 ) (95,559 )
Net increase (decrease) in short-term borrowings 47,000 40,000 (7,000 ) -
Dividends paid (32,495 ) (33,500 ) (1,005 ) (32,495 )
-------- - -------- - ---------- - --------- -
Net cash provided by (used in) financing activities (41,452 ) (37,053 ) 4,398 (110,104 )
-------- - -------- - ---------- - --------- -
IV Net increase (decrease) in cash and cash (117,380 ) (27,131 ) 90,249 (65,232 )
equivalents
V Cash and cash equivalents at beginning of 186,287 121,055 (65,232 ) 186,287
period
-------- - -------- - ---------- - --------- -
VI Cash and cash equivalents at end of period 68,907 93,923 25,016 121,055
-------- - -------- - ---------- - --------- -
- 5 -
--------------------------------------------------------------------------------
February 3, 2006
FOR IMMEDIATE RELEASE
Financial Statements for the Third Quarter Ended December 31, 2005
The results of Nippon Telegraph and Telephone West Corporation (NTT West) for
the Third Quarter ended December 31, 2005 are presented in the following
attachments.
(Attachments)
1. Non-consolidated Comparative Balance Sheets
2. Non-consolidated Comparative Statements of Income
3. Business Results (Non-consolidated Operating Revenues)
4. Non-consolidated Comparative Statements of Cash Flows
5. Revision of the business forecasts for the fiscal year ending March 31, 2006
Inquiries:
Mr. Shinji Uchida or Mr. Kazunori Oonishi
Accounting Section, Finance Division
NTT West
Tel: 06-4793-3141
E-mail: kessan-info@west.ntt.co.jp
--------------------------------------------------------------------------------
1. Non-Consolidated Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
--------------------------------------------
March 31, December Increase
2005 31, 2005 (Decrease)
--------- --------- ----------
ASSETS
Fixed assets:
Fixed assets-telecommunications businesses
Property, plant and equipment 2,920,524 2,915,660 (4,864 )
Machinery and equipment 550,458 593,448 42,990
Antenna facilities 11,407 10,809 (597 )
Terminal equipment 27,847 30,495 2,647
Local line facilities 826,738 820,445 (6,293 )
Long-distance line facilities 8,497 7,567 (929 )
Engineering facilities 647,060 634,146 (12,913 )
Submarine line facilities 5,177 4,769 (407 )
Buildings 555,067 529,056 (26,011 )
Construction in progress 38,253 40,175 1,922
Other 250,017 244,746 (5,271 )
Intangible fixed assets 94,823 95,175 351
Total fixed assets-telecommunications businesses 3,015,348 3,010,835 (4,512 )
Investments and other assets
Deferred income taxes 391,488 391,230 (257 )
Other investments 34,376 34,226 (150 )
Allowance for doubtful accounts (713 ) (1,683 ) (970 )
Total investments and other assets 425,151 423,772 (1,378 )
Total fixed assets 3,440,499 3,434,608 (5,891 )
Current assets:
Cash and bank deposits 111,479 88,211 (23,268 )
Notes receivable 14 26 11
Accounts receivable, trade 379,119 373,117 (6,002 )
Supplies 34,833 37,421 2,587
Other current assets 118,116 79,506 (38,610 )
Allowance for doubtful accounts (3,233 ) (2,562 ) 670
Total current assets 640,329 575,719 (64,610 )
--------- - --------- - ---------- -
TOTAL ASSETS 4,080,829 4,010,327 (70,501 )
--------- - --------- - ---------- -
- 1 -
--------------------------------------------------------------------------------
(Millions of yen)
----------------------------------------
March 31, December Increase
2005 31, 2005 (Decrease)
--------- --------- ----------
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company 1,055,194 1,102,252 47,057
Liability for employees' severance payments 710,090 689,986 (20,104 )
Other long-term liabilities 10,112 12,310 2,198
Total long-term liabilities 1,775,397 1,804,549 29,152
Current liabilities:
Current portion of long-term borrowings from parent company 200,090 210,908 10,817
Accounts payable, trade 167,218 116,499 (50,719 )
Accrued taxes on income 2,481 8,042 5,560
Other current liabilities 384,900 302,268 (82,631 )
Total current liabilities 754,690 637,718 (116,972 )
--------- --------- ---------- -
TOTAL LIABILITIES 2,530,087 2,442,267 (87,820 )
--------- --------- ---------- -
SHAREHOLDERS' EQUITY
Common stock 312,000 312,000 -
Capital surplus
Additional paid-in capital 1,170,054 1,170,054 -
Total capital surplus 1,170,054 1,170,054 -
Earned surplus
Unappropriated retained earnings for the period 68,670 85,610 16,939
Total earned surplus 68,670 85,610 16,939
Net unrealized gains (losses) on securities 17 396 378
--------- --------- ---------- -
TOTAL SHAREHOLDERS' EQUITY 1,550,741 1,568,060 17,318
--------- --------- ---------- -
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,080,829 4,010,327 (70,501 )
--------- --------- ---------- -
------
Note: * NTT West participates in a consolidated tax return system, which has been adopted by NTT(Holding company)
and its wholly-owned subsidiaries in Japan, however, income taxes have not been calculated on a consolidated
basis in the quarterly financial statements.
-2-
--------------------------------------------------------------------------------
2. Non-Consolidated Comparative Statements of Income
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
----------------------------------------------------------
Nine Nine Increase Year
months months ended
ended ended (Decrease)
December December ---------- March 31,
31, 2004 31, 2005 2005
--------- --------- ---------
Recurring profits and losses
Operating revenues and expenses
Telecommunications businesses
Operating revenues 1,445,925 1,401,541 (44,384 ) 1,921,025
Operating expenses 1,366,125 1,352,470 (13,654 ) 1,846,367
Operating income from telecommunications businesses 79,800 49,070 (30,729 ) 74,657
Related businesses
Operating revenues 111,479 110,698 (780 ) 177,022
Operating expenses 112,413 113,241 828 181,531
Operating losses from related businesses (934 ) (2,543 ) (1,608 ) (4,508 )
Operating income 78,866 46,527 (32,338 ) 70,148
Non-Operating revenues and expenses
Non-operating revenues: 41,088 53,766 12,678 56,074
Interest income 4 3 (1 ) 6
Dividends received 277 14,260 13,983 277
Lease income 35,520 35,015 (504 ) 47,648
Miscellaneous income 5,285 4,486 (799 ) 8,142
Non-operating expenses: 30,891 31,360 469 46,135
Interest expenses 14,931 12,829 (2,101 ) 19,264
Lease expenses 14,233 15,349 1,116 21,858
Miscellaneous expenses 1,727 3,181 1,454 5,012
Recurring profit 89,062 68,933 (20,128 ) 80,087
Special profits and losses
Special profits 7,022 4,097 (2,924 ) 10,170
Special losses 5,385 - (5,385 ) 7,181
Income before Income taxes 90,699 73,031 (17,668 ) 83,077
Corporation, inhabitant, and enterprise taxes *37,000 *24,836 (12,163 ) (57,120 )
Deferred tax expenses (benefits) * - * - - 99,100
Net income 53,699 48,194 (5,504 ) 41,097
Unappropriated retained earnings brought forward 27,572 37,415 9,842 27,572
Unappropriated retained earnings for the period 81,272 85,610 4,337 68,670
------
Note: * NTT West participates in a consolidated tax return system, which has been adopted by NTT (Holding company)
and its wholly-owned subsidiaries in Japan, however, income taxes have not been calculated on a consolidated
basis in the quarterly financial statements.
-3-
--------------------------------------------------------------------------------
3. Business Results (Non-Consolidated Operating Revenues)
(Based on accounting principles generally accepted in Japan)
(Millions of Yen)
----------------------------------------------------------------------
Nine Nine Increase Percent Year
months months (Decrease) Increase ended
ended ended ---------- (Decrease) March 31,
December December ---------- 2005
31, 31, -------
--
2004 2005
--------- ---------
Voice transmission services revenues 1,040,954 956,700 (84,254 ) (8.1 %) 1,369,195
(excluding the amounts of IP services
revenues)
Monthly charge revenues* 669,602 589,839 (79,763 ) (11.9 %) 872,886
Call rates revenues* 153,414 137,844 (15,570 ) (10.1 %) 198,733
Interconnection call revenues* 150,469 160,072 9,602 6.4 % 209,544
IP services revenues 129,328 167,315 37,986 29.4 % 180,326
Leased circuit services revenues (excluding 131,164 128,409 (2,755 ) (2.1 %) 174,392
the amounts of IP services revenues)
Telegram services revenues 22,883 22,248 (634 ) (2.8 %) 31,180
Other telecommunications services revenues 121,594 126,866 5,272 4.3 % 165,929
--------- --------- ---------- - -------- -- ---------
Telecommunications total revenues 1,445,925 1,401,541 (44,384 ) (3.1 %) 1,921,025
--------- --------- ---------- - -------- -- ---------
Related business total revenues 111,479 110,698 (780 ) (0.7 %) 177,022
--------- --------- ---------- - ---------- ---------
Total operating revenues 1,557,405 1,512,239 (45,165 ) (2.9 %) 2,098,048
--------- --------- ---------- - -------- -- ---------
------
* Partial listing only
-4-
--------------------------------------------------------------------------------
4. Non-Consolidated Comparative Statements of Cash Flows
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
--------------------------------------------------------
Nine Nine Increase Year
months months ended
ended ended (Decrease) March
---------- 31,
December December 2005
31, 31, --------
2004 2005
--------- --------
I Cash flows from operating activities:
Income before income taxes 90,699 73,031 (17,668 ) 83,077
Depreciation and amortization 324,716 324,486 (229 ) 435,060
Loss on disposal of property, plant and equipment 24,108 21,405 (2,703 ) 33,319
Increase (decrease) in liability for employees' (19,245 ) (20,104 ) (858 ) (80,346 )
severance payments
(Increase) decrease in accounts receivable (17,679 ) 9,660 27,339 1,956
(Increase) decrease in inventories 2,334 (2,587 ) (4,922 ) 4,606
Increase (decrease) in accounts payable and accrued (122,181 ) (138,292 ) (16,111 ) (6,390 )
expenses
(increase) decrease in accrued consumption tax - 62 62 (62 )
receivable
Increase (decrease) in accrued consumption tax payable 3,712 2,124 (1,587 ) (2,652 )
Other (14,398 ) (24,225 ) (9,827 ) (3,381 )
--------- - -------- - ---------- - -------- -
Sub-total 272,066 245,561 (26,505 ) 465,187
--------- - -------- - ---------- - -------- -
Interest and dividends received 281 14,263 13,982 283
Interest paid (14,338 ) (12,300 ) 2,037 (19,698 )
Income taxes received (paid) 52,491 54,406 1,914 52,439
--------- - -------- - ---------- - -------- -
Net cash provided by (used in) operating 310,501 301,931 (8,570 ) 498,212
activities
--------- - -------- - ---------- - -------- -
II Cash flows from investing activities:
Payments for property, plant and equipment (278,710 ) (358,115 ) (79,405 ) (381,332 )
Proceeds from sale of property, plant and equipment 8,459 6,180 (2,279 ) 13,567
Acquisition of investments securities (3,620 ) (1,165 ) 2,454 (3,678 )
Proceeds from sale of investments securities 327 2,150 1,822 2,239
Other (869 ) (1,893 ) (1,023 ) (197 )
--------- - -------- - ---------- - -------- -
Net cash provided by (used in) investing activities (274,413 ) (352,844 ) (78,431 ) (369,401 )
--------- - -------- - ---------- - -------- -
III Cash flows from financing activities:
Proceeds from issuance of long-term debt 150,000 146,707 (3,292 ) 190,000
Payments for settlement of long-term debt (127,628 ) (88,832 ) 38,795 (276,201 )
Net increase (decrease) in short-term borrowings (30,000 ) (2,000 ) 28,000 2,000
Dividends paid (34,494 ) (31,200 ) 3,294 (34,494 )
--------- - -------- - ---------- - -------- -
Net cash provided by (used in) financing activities (42,122 ) 24,674 66,797 (118,696 )
--------- - -------- - ---------- - -------- -
IV Net increase (decrease) in cash and cash (6,034 ) (26,238 ) (20,204 ) 10,114
equivalents
V Cash and cash equivalents at beginning of period 118,806 128,920 10,114 118,806
--------- - -------- - ---------- - -------- -
VI Cash and cash equivalents at end of period 112,772 102,682 (10,090 ) 128,920
--------- - -------- - ---------- - -------- -
-5-
--------------------------------------------------------------------------------
5. Revision of the business forecasts for the fiscal year ending March 31, 2006
NTT West has revised its business forecasts for the fiscal year ending March 31,
2006, which were announced together with the half-year business results on
November 9, 2005, as follows.
Unit Operating Operating Recurring Net
-------- revenues income profits income
--------- --------- --------- ------
Previous forecasts (A) Millions 2,020,000 31,000 40,000 25,000
of yen
Revised forecasts (B) Millions 2,020,000 31,000 50,000 37,000
of yen
Increase/decrease (B-A) Millions 0 0 10,000 12,000
of yen
Increase/decrease ratio % 0.0 % 0.0 % 25.0 % 48.0 %
(Ref.) Millions 2,098,000 70,100 80,000 41,000
of yen
Results for the year ended March 31, 2005
* Non-operating income was revised from 9,000 million yen to 19,000 million yen, because interim dividends from group
companies were reported for the three months ended December 31, 2005.
-6-
--------------------------------------------------------------------------------
February 3, 2006
NTT Com Announces Financial Results for the Nine Months Ended December 31, 2005
TOKYO, JAPAN - NTT Communications (NTT Com) announced today its fiscal
results for the nine months ended December 31, 2005. Please see the following
attachments for further details:
1. Non-consolidated Comparative Balance Sheets
2. Non-consolidated Comparative Statements of Income
3. Business Results (Non-consolidated Operating Revenues)
4. Non-consolidated Comparative Statements of Cash Flows
# # #
About NTT Com
NTT Communications is a subsidiary of Nippon Telegraph and Telephone Corporation
(NTT) (NYSE: NTT) - one of the world's largest telecommunications
companies. NTT Com provides high-quality, technologically advanced network
management, security and solution services to consumers, corporations and
governments on a global basis, with a special focus on the Asia-Pacific region.
Its world-class backbone networks, combined with the networks of partner
companies around the world, offer access to more than 200 countries. NTT Com
Group has more than 30 companies in the Asia-Pacific region, Europe and the
Americas. The company has garnered several awards for its leading edge
technologies, outstanding performance and customer service, including "
World Communication Awards Best Customer Care - 2005." For more
information, please visit http://www.ntt.com
For more information
(Mr.) Noboru Takeuchi or (Mr.) Makoto Inoue
Accounts and Finance Department, NTT Communications
Tel. +81 3 6700 4311
--------------------------------------------------------------------------------
I. Non-Consolidated Comparative Balance Sheets
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
--------------------------------------------
March 31, December Increase
2005 31, 2005 (Decrease)
--------- --------- ----------
ASSETS
Fixed assets:
Fixed assets for telecommunications
Property, plant and equipment 515,409 495,924 (19,484 )
Machinery and equipment 169,185 171,218 2,032
Antenna facilities 7,669 7,306 (362 )
Terminal equipment 3,680 3,250 (429 )
Local line facilities 440 979 538
Long-distance line facilities 14,846 13,227 (1,619 )
Engineering facilities 78,693 75,673 (3,020 )
Submarine line facilities 10,084 7,840 (2,244 )
Buildings 141,234 135,865 (5,368 )
Construction in progress 10,370 7,757 (2,613 )
Other 79,202 72,805 (6,396 )
Intangible fixed assets 125,321 159,415 34,093
Total fixed assets for telecommunications businesses 640,730 655,340 14,609
Investments and other assets
Investment securities 77,394 149,694 72,299
Investments in subsidiaries and affiliated companies 152,220 108,151 (44,068 )
Deferred income taxes 305,557 289,201 (16,355 )
Other investments 58,896 93,717 34,821
Allowance for doubtful accounts (363 ) (539 ) (176 )
Total investments and other assets 593,705 640,225 46,520
Total fixed assets 1,234,435 1,295,566 61,130
Current assets:
Cash and bank deposits 61,084 34,425 (26,658 )
Notes receivable 256 248 (8 )
Accounts receivable, trade 176,443 175,304 (1,138 )
Supplies 10,669 10,343 (325 )
Other current assets 60,039 35,915 (24,123 )
Allowance for doubtful accounts (1,716 ) (2,042 ) (326 )
Total current assets 306,776 254,194 (52,581 )
--------- - --------- - ---------- -
TOTAL ASSETS 1,541,212 1,549,760 8,548
--------- - --------- - ---------- -
-1-
--------------------------------------------------------------------------------
(Millions of yen)
----------------------------------------
March 31, December Increase
2005 31, 2005
--------- --------- (Decrease)
----------
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company 678,813 690,559 11,746
Liability for employees' severance payments 73,380 74,126 745
Other long-term liabilities 3,965 4,298 333
Total long-term liabilities 756,159 768,985 12,825
Current liabilities:
Current portion of long-term borrowings from parent company 82,530 95,063 12,533
Accounts payable, trade 60,265 32,425 (27,840 )
Accounts payable, other 178,524 143,591 (34,933 )
Accrued taxes on income 12,007 *6,015 (5,992 )
Other current liabilities 46,619 67,490 20,871
Total current liabilities 379,947 344,586 (35,361 )
--------- --------- ---------- -
TOTAL LIABILITIES 1,136,107 1,113,571 (22,535 )
--------- --------- ---------- -
SHAREHOLDERS' EQUITY
Common stock 211,650 211,650 -
Capital surplus
Additional paid-in capital 119,149 119,149 -
Total capital surplus 119,149 119,149 -
Earned surplus
Unappropriated retained earnings for the period 41,231 48,426 7,195
Total earned surplus 41,231 48,426 7,195
Net unrealized gains (losses) on securities 33,074 56,963 23,889
--------- --------- ---------- -
TOTAL SHAREHOLDERS' EQUITY 405,105 436,189 31,084
--------- --------- ---------- -
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,541,212 1,549,760 8,548
--------- --------- ---------- -
------
Note: * The Company participates in a consolidated tax return system, which is adopted by NTT (Holding company) and
its wholly-owned subsidiaries in Japan, but did not calculate income taxes on a consolidated basis in the
quarterly financial statements.
-2-
--------------------------------------------------------------------------------
II. Non-Consolidated Comparative Statements of Income
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
--------------------------------------------------------------
Nine Nine Increase Year
months months (Decrease) ended
ended ended ---------- March
December December 31,
31, 2004 31,2005 2005
--------- --------- -------
Recurring profits and losses
Operating revenues and expenses
Telecommunications businesses
Operating revenues 723,901 748,457 24,555 968,438
Operating expenses 651,141 687,737 36,596 895,223
Operating income from telecommunications 72,760 60,719 (12,040 ) 73,214
businesses
Related businesses
Operating revenues 70,300 78,157 7,857 121,634
Operating expenses 73,282 81,045 7,762 124,972
Operating losses from related businesses (2,982 ) (2,888 ) 94 (3,338
)
Operating income 69,778 57,831 (11,946 ) 69,876
Non-operating revenues and expenses
Non-operating revenues: 19,158 23,286 4,128 26,166
Interest income 1,046 2,000 954 1,539
Dividends received 981 4,264 3,283 982
Lease income 14,098 13,815 (282 ) 18,945
Miscellaneous income 3,032 3,206 174 4,699
Non-operating expenses: 19,822 18,723 (1,098 ) 28,082
Interest expenses 11,108 10,634 (473 ) 14,468
Lease expenses 5,925 6,270 344 9,024
Miscellaneous expenses 2,787 1,818 (969 ) 4,589
Recurring profit 69,114 62,395 (6,719 ) 67,959
Special profits and losses
Special profits - 22,327 22,327 4,094
Special losses - 38,606 38,606 25,022
Income before Income taxes 69,114 46,116 (22,997 ) 47,032
Corporation, inhabitant, and enterprise taxes *28,800 *30,159 1,359 37,420
Deferred tax expenses (benefits) * - * - - (15,000 )
Net income 40,314 15,956 (24,357 ) 24,612
Unappropriated retained earnings brought forward 16,618 32,469 15,851 16,618
Unappropriated retained earnings for the period 56,932 48,426 (8,506 ) 41,231
------
Note: * The Company participates in a consolidated tax return system, which is adopted by NTT (Holding company) and
its wholly-owned subsidiaries in Japan, but did not calculate income taxes on a consolidated basis in the
quarterly financial statements.
-3-
--------------------------------------------------------------------------------
III. Business Results (Non-Consolidated Operating Revenues)
(Based on accounting principles generally accepted in Japan)
(Millions of Yen)
-------------------------------------------------------------------
Nine Nine Increase Percent Year
months months (Decrease) Increase ended
ended ended ---------- (Decrease) March 31,
December December ---------- 2005
31, 31, ---------
2004 2005
-------- --------
Voice transmission services revenues 332,937 357,050 24,113 7.2% 440,655
(excluding the amounts of IP services revenues)
IP services revenues 204,238 227,014 22,775 11.2% 278,315
Open Computer Network services revenues* 99,207 104,196 4,988 5.0% 133,475
IP-Virtual Private Network services revenues* 46,253 51,862 5,608 12.1% 63,198
Wide-Area Ethernet services revenues* 25,091 31,770 6,678 26.6% 35,086
Data communications revenues 163,571 135,010 (28,561) (17.5%) 212,751
(excluding the amounts of IP services revenues)
Leased circuit services revenues* 103,537 87,135 (16,401) (15.8%) 135,642
Solution services revenues 70,463 83,136 12,673 18.0% 125,829
Others 22,990 24,402 1,412 6.1% 32,520
-------- -------- ---------- ---------- - ---------
Total operating revenues 794,202 826,614 32,412 4.1 % 1,090,072
-------- -------- ---------- ---------- - ---------
------
* Partial listing only
-4-
--------------------------------------------------------------------------------
IV. Non-Consolidated Comparative Statements of Cash Flows
(Based on accounting principles generally accepted in Japan)
(Millions of yen)
-----------------------------------------------------------
Nine Nine Increase Year
months months (Decrease) ended
ended ended ---------- March
December December 31, 2005
31, 2004 31, 2005 --------
--------- --------
I Cash flows from operating activities
Income before income taxes 69,114 46,116 (22,997 ) 47,032
Depreciation and amortization 91,254 89,630 (1,624 ) 123,494
Loss on disposal of property, plant and equipment 4,804 4,770 (34 ) 13,822
Increase (decrease) in allowance for doubtful 70 503 432 (325 )
accounts
Increase (decrease) in liability for employees 299 745 445 (1,035 )
' severance payments
Write-off of investments in affiliated companies - 38,606 38,606 25,022
(Increase) decrease in accounts receivable 11,777 7,188 (4,588 ) (3,934 )
(Increase) decrease in inventories (1,274 ) 325 1,600 (2,225 )
Increase (decrease) in accounts payable and accrued (18,634 ) (47,363 ) (28,729 ) 25,228
expenses
Increase (decrease) in accrued consumption tax 1,113 3,246 2,132 (269 )
payable
Other 3,722 (24,035 ) (27,758 ) 10,044
Sub-total 162,248 119,732 (42,515 ) 236,854
--------- - -------- - ---------- - -------- -
Interest and dividends received 2,229 6,687 4,457 2,222
Interest paid (12,145 ) (11,573 ) 572 (14,733 )
Income taxes received (paid) 9,159 (42,588 ) (51,748 ) 9,159
--------- - -------- - ---------- - -------- -
Net cash provided by (used in) operating activities 161,491 72,258 (89,233 ) 233,503
--------- - -------- - ---------- - -------- -
II Cash flows from investing activities:
Payments for property, plant and equipment (109,771 ) (124,126 ) (14,354 ) (155,158 )
Proceeds from sale of property, plant and equipment 1,837 3,445 1,608 3,011
Acquisition of investment securities (1,584 ) (5,068 ) (3,483 ) (1,603 )
Proceeds from sale of investment securities 22 676 654 7,728
Payments for long-term loans (8,783 ) (30,188 ) (21,404 ) (8,783 )
Proceeds from long-term loans receivable 409 24,060 23,651 409
(Increase) decrease in short-term loan 263 (555 ) (818 ) (365 )
Other 479 555 75 (34 )
--------- - -------- - ---------- - -------- -
Net cash provided by (used in) investing activities (117,127 ) (131,200 ) (14,072 ) (154,794 )
--------- - -------- - ---------- - -------- -
III Cash flows from financing activities:
Proceeds from issuance of long-term debt 8,783 80,188 71,404 8,783
Payments for settlement of long-term debt (65,584 ) (61,578 ) 4,006 (98,297 )
Net increase (decrease) in short-term borrowings (3,382 ) 22,355 25,737 15,246
Dividends paid (8,811 ) (8,700 ) 111 (8,811 )
--------- - -------- - ---------- - -------- -
Net cash provided by (used in) financing activities (68,993 ) 32,266 101,260 (83,078 )
--------- - -------- - ---------- - -------- -
IV Effect of exchange rate changes on cash and (0 ) 17 17 9
cash equivalents
--------- - -------- - ---------- - -------- -
V Net increase (decrease) in cash and cash (24,630 ) (26,658 ) (2,028 ) (4,359 )
equivalents
VI Cash and cash equivalents at beginning of 65,444 61,084 (4,359 ) 65,444
period
--------- - -------- - ---------- - -------- -
VII Cash and cash equivalents at end of period 40,813 34,425 (6,388 ) 61,084
--------- - -------- - ---------- - -------- -
MORE TO FOLLOW
-5-
--------------------------------------------------------------------------------
Paste the following link into your web browser to download the PDF document related to this announcement:
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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