Strengthening solution proposal capabilities and expanding growth areas

「The business environment surrounding the Group continues to see expanding demand for cloud services and data centers, driven by the spread of DX (digital transformation) and generative AI, among other factors.」

「Orders increased in the data-center-related business, which the Group is working to expand.」

「In response to growing domestic and overseas demand for data centers, the Group has been working in earnest across the Group to expand its business in Japan and advance full-value construction, in addition to its cabling business in Asia and independently operated service offerings.」

「In the consolidated results for the interim accounting period, although CATV and 5G construction declined in the multi-carrier business, orders and sales increased due to more access and mobile construction in the NTT business, more electrical, air-conditioning, building, and renovation construction in the environmental and social innovation business, and more global, data-center, and cloud construction in the ICT solutions business. The results also benefited from the contribution of Kokusai Kogyo Co., Ltd., which became a subsidiary in December 2023,」

「In the consolidated results for the third quarter, although CATV construction and some 5G construction declined in the multi-carrier business, orders received increased to ¥413.512 billion, up 12.2% year on year, and net sales increased to ¥343.862 billion, up 7.2%, due to more equipment operation and other construction in the NTT business, more green-energy-related construction and civil and building construction by Seibu Construction Co., Ltd. in the environmental and social innovation business, and accelerated completion of global and LAN-related construction and increased sales of goods in the ICT solutions business.」

「Sales increased due to more green-energy-related, building, and civil engineering construction in the environmental and social innovation business, more LAN and other construction and sales of goods in the ICT solutions business, and increased global construction,」

「In the consolidated results for the first quarter, although CATV construction and some 5G construction declined in the multi-carrier business, sales increased due to more green-energy-related construction, building construction, and civil engineering in the environmental and social innovation business, and more LAN and other construction in the ICT solutions business,」

「In the environmental and social innovation business, the Group sought to increase sales through more air-conditioning construction, more renewable-energy-related construction including solar power, and the addition of Seibu Construction Co., Ltd., which became a subsidiary in the previous fiscal year.」

「In the consolidated results for the third quarter, global operations and software, which are priority areas under the Mirai Domain, increased, as did orders for LAN and PBX construction and 5G construction in the multi-carrier business,」

「In the consolidated results for the second quarter, Seibu Construction Co., Ltd., which became a subsidiary in the previous fiscal year, contributed to net sales and other measures. There were also increases in 5G construction in the multi-carrier business and in global operations and software, which are priority areas under the Mirai Domain, although optical-fiber construction and mobile-related construction in the NTT business and sales of goods in the ICT solutions business declined significantly,」

「Clearly Redefining Growth Areas as the Mirai Domain and Allocating Management Resources to Them (Advancing Business-Structure Reform toward a Full-Value Model)」

「During the third quarter, the Group sought to increase sales through more optical-fiber construction under the Project to Promote the Development of Advanced Wireless Environments in the NTT business, increased mobile construction to expand 5G-related services in the multi-carrier business, increased electrical and lighting work in the environmental and social innovation business, and increased LAN and PBX construction, global operations by the Rantorovision Group, and sales of mobile-related construction materials in the ICT solutions business. It also worked to maintain and improve profit margins by promoting operational efficiency.」

「During the second quarter, the Group sought to increase orders and sales through more optical-fiber construction under the Project to Promote the Development of Advanced Wireless Environments in the NTT business, increased mobile and CATV construction to expand 5G-related services in the multi-carrier business, initiatives including increased water and sewage construction and securing orders for large-scale electrical construction in the environmental and social innovation business, and increased LAN, PBX, and data-center construction and sales of mobile-related construction materials in the ICT solutions business. It also worked to maintain and improve profit margins by promoting operational efficiency.」

「During the first quarter, the Group sought to increase orders and sales through more optical-fiber construction under the Project to Promote the Development of Advanced Wireless Environments in the NTT business, increased mobile construction following the acceleration of base-station development plans to expand 5G-related services in the multi-carrier business, initiatives including securing orders for large-scale electrical construction in the environmental and social innovation business, and increased sales of mobile-related construction materials and LAN and PBX construction in the ICT solutions business.」

「During the third quarter, the Group sought to increase sales through increased equipment operation services in the NTT business, more access construction accompanying the expansion of telework, increased construction for Rakuten Mobile in the multi-carrier business, increased air-conditioning work in the environmental and social innovation business, and increased sales of PCs and servers for schools and mobile-related construction materials in the ICT solutions business. It also worked to maintain and improve profit margins by promoting operational efficiency.」

「During the second quarter, the Group sought to increase sales through increased equipment operation services in the NTT business, more construction for Rakuten Mobile in the multi-carrier business, increased air-conditioning work in the environmental and social innovation business, and increased sales of mobile-related construction materials and PCs and servers for schools associated with the GIGA School Initiative in the ICT solutions business. It also worked to maintain and improve profit margins by promoting operational efficiency.」

「During the first quarter, the Group worked to maintain sales through increased equipment operation services in the NTT business, more air-conditioning work in the environmental and social innovation business, completion of software development projects for major electrical retailers and increased sales of mobile-related construction materials and PCs and servers for schools in the ICT solutions business.」

「During the third quarter, the Group worked to expand equipment operation services and facility-improvement proposals in the NTT business, and to secure orders for 4G new-frequency-related construction and construction ahead of the launch of 5G commercial services in the multi-carrier business.」

「During the second quarter, the Group worked to expand equipment operation services in the NTT business and secure orders for 4G new-frequency-related construction and 5G pre-commercial-service-related construction in the multi-carrier business. It also sought to increase net sales through more civil engineering work and solar power generation facilities in the environmental and social innovation business, increased domestic LAN and PBX construction in the ICT solutions business, and the full-scale operation of Osaka No. 1 Data Center.」

「During the first quarter, the Group worked to secure orders for facility-improvement proposals to communications carriers, 4G new-frequency-related construction, and 5G pre-commercial-service-related construction. It also sought to increase net sales through domestic solar power generation facilities and electrical construction, global operations by the Rantorovision Group, and the full-scale operation of Osaka No. 1 Data Center.」

「Developing a Solutions Business by Leveraging Deeper Regional Coverage Following the Management Integration」

「During the second quarter, the Group continued working to expand NTT fixed-line communications construction through facility-improvement proposals and other initiatives for communications carriers, and to expand mobile-related construction following the launch of 4G upgrades and new-frequency-related services. It also sought to increase sales in its Frontier Domains by accelerating completion of solar power generation facilities, civil engineering, PBX and LAN cabling, and other construction, as well as launching operations at Osaka No. 1 Data Center.」

「During the first quarter, the Group continued working on facility-improvement proposals for communications carriers, 4G upgrades, and new-frequency-related construction, while seeking to increase sales by accelerating the completion of construction carried over from the previous fiscal year. It also actively pursued expansion of new businesses, including the launch of operations at Osaka No. 1 Data Center in June 2018.」

「In this environment, the Group needs to actively expand numerous growth areas, or its Frontier Domains, including cloud services, recurring-revenue businesses, Wi-Fi, software, environmental and energy services, and global operations.」

「During the second quarter, the Group sought to increase sales by completing more air-opening construction as the optical collaboration model became established, expanding mobile construction as 4G upgrades and new-frequency-band construction entered full swing, and accelerating the completion of air-conditioning work and 700 MHz TV reception-interference countermeasures.」

「During the first quarter, the Group worked to expand orders for facility-improvement proposals to communications carriers, 4G upgrades and new-frequency-related construction, solar power generation facilities, and underground utility-cable construction, while seeking to increase sales by accelerating the completion of construction carried over from the previous fiscal year, including electrical and air-conditioning work, PBX renewal work, and 700 MHz TV reception-interference countermeasures.」

「Construction activity has entered full swing, including proposals for facility improvements in the NTT business, expansion of underground utility-cable construction, expansion of LTE-Advanced-related construction in the multi-carrier business, environmental and social innovation, rooftop mid-scale solar construction in the ICT solutions business, and expansion of measures to address 700 MHz TV reception interference.」

「As the business environment surrounding the Group undergoes significant changes, we need to strengthen our solution proposal capabilities and proactively expand numerous growth fields, including cloud services, stock-based businesses, the environment and energy, and global operations.」