NTT takes new steps to grow its global business, drive innovation going forward
07 August 2018
Nippon Telegraph and Telephone Corporation (NTT Corporation) is pleased to announce several initiatives to be implemented soon. These steps will help us become more competitive and profitable, and create new ways of serving clients and society through our global business.
1. Why we need to transform
Our operating companies – NTT Communications, Dimension Data, NTT DATA, and NTT Security –have continued to evolve and grow their respective capabilities. NTT Group has also been driving collaboration across these operating companies with great success. To date, these activities have resulted in collective revenue outside of Japan of U.S. $20 billion.
The global market is changing fast. We’ve seen rapid progress in technology innovation; disruption caused by new business models, and the aggressive expansion of innovative competitors. These factors have led to clients’ increasing demand for digital transformation. We believe it’s an opportunity for us to create new value and increase our presence in the global market.
2. What we plan to do
(1) Establish a new holding company focused on global business
We’re establishing a new global holding company under NTT Corporation by the third quarter of the fiscal year ending March 31, 2019. This entity will be called NTT, Inc., and Jun Sawada, current CEO of NTT Corporation, will also serve as its CEO. Estimated operating revenue of NTT, Inc. is approximately U.S. $38 billion with U.S. $20 billion already coming from outside Japan (consolidated figures, based on the fiscal year ending March 31, 2018).
By the third quarter of the fiscal year ending March 31, 2019, NTT Communications, Dimension Data, NTT DATA, NTT Security, and NTTi3 will be transferred to NTT, Inc. and will align together under its new leadership.
While making NTT Group more competitive and profitable, our global governance will also benefit from embracing and integrating our people’s diverse talents, skills, and management experience in global markets. The new structure will leverage their expertise to its maximum potential.
In addition, by the second quarter of the fiscal year ending March 31, 2020, we’ll consider integrating these businesses – except NTT DATA – into two new businesses. One will look after our global business; the other will cater for our domestic business in Japan.
NTT DATA will continue to collaborate with other companies in the Group while retaining its present management structure, status as a listed company, management autonomy and brand.
(2) Expanding our global R&D capability
Further steps will include creating a new global innovation fund: NTT Venture Capital, L.P. (a limited partnership), which will help us evolve our global innovation. With this new fund, we’ll activate investment in high-growth areas such as digital technology.
We’ll also intensify our R&D activities in global markets by using a global network of experts from advanced academic research institutions and venture-capital communities around the world.
* NTT DATA will continue to collaborate with other companies in the Group while retaining its present management structure, status as a listed company, management autonomy and brand.
Please note: Other subsidiaries such as NTT Docomo, NTT EAST and NTT WEST are not described in this organisational chart.
About the global holding company
(1)Company name: NTT, Inc.
(2)Headquarters: Tokyo, Japan
(3)CEO: Jun Sawada, current president and CEO of NTT Corporation, will also serve as CEO of NTT, Inc.
(4)Main business activities: Governance and strategic planning of the global business of NTT Group
(5)Capital: JPY600 billion (After the transfer of every subsidiary is completed)
(6)Share holder: Wholly owned by NTT Corporation
(7)Number of employees: Approximately 163,000 employees (consolidated figure)
(8)Schedule: To be established by the third quarter of the fiscal year ending March 31, 2019
About the global innovation fund
(1)Fund name: NTT Venture Capital, L.P.
(2)Fund size: Up to U.S. $500 million
(3)Main investment area: High-growth areas such as digital technology.