- Report of Foreign Issuer (6-K)

Operating Revenues from Voice Transmission Services (excluding IP) of NTT East and NTT West for the three months ended Dec. 31, 2010 include monthly charges, call charges and interconnection charges of 126.4 billion yen, 17.4 billion yen and 24.6 billion yen for NTT East, and 124.7 billion yen, 15.1 billion yen and 27.0 billion yen for NTT West, respectively.

Operating Revenues from IP Services of NTT East and NTT West for the three months ended Dec. 31, 2010 include FLET’S Hikari and Hikari Denwa (including monthly charges, call charges and connection device charges) of 107.9 billion yen and 33.6 billion yen for NTT East, and 82.0 billion yen and 27.5 billion yen for NTT West, respectively.

— FLET’S Hikari includes B FLET’S and FLET’S Hikari Next provided by NTT East, and B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown and FLET’S Hikari Next provided by NTT West.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under the

Securities Exchange Act of 1934

For the month of February, 2011

Commission File Number 1-8910

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

(Translation of registrant’s name into English)

3-1, OTEMACHI 2-CHOME

CHIYODA-KU, TOKYO 100-8116 JAPAN

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .

ANNOUNCEMENT OF FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2010

On February 4, 2011, the registrant filed with the Tokyo Stock Exchange and other stock exchanges in Japan on which its securities are traded information as to the registrant’s financial condition and results of operations for the three and nine months ended December 31, 2010. Attached hereto is a copy of the press release and supplementary data thereto, both dated February 4, 2011, pertaining to such financial condition and results of operations, as well as forecasts for the registrant’s operations for the fiscal year ending March 31, 2011. The consolidated financial information of the registrant and that of its subsidiary, NTT DOCOMO, INC., included in the press release and the supplementary data thereto was prepared on the basis of accounting principles generally accepted in the United States. The non-consolidated financial information of the registrant and that of each of the registrant’s three wholly-owned subsidiaries, Nippon Telegraph and Telephone East Corporation, Nippon Telegraph and Telephone West Corporation and NTT Communications Corporation, as well as the consolidated financial information of its subsidiary NTT DATA CORPORATION, included in the press release and the supplementary data relating thereto were prepared on the basis of accounting principles generally accepted in Japan. The financial information for the three and nine months ended December 31, 2010 in the press release is unaudited.

The earnings projections of the registrant and its subsidiaries included in the press release contain forward-looking statements. The registrant desires to qualify for the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995, and consequently is hereby filing cautionary statements identifying important factors that could cause the registrant’s actual results to differ materially from those set forth in the attachment.

The registrant’s forward-looking statements are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of the registrant in light of information currently available to it regarding the registrant and its subsidiaries and affiliates, the economy and the telecommunications industry in Japan and overseas, and other factors. These projections and estimates may be affected by the future business operations of the registrant 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 any future results that may be derived from the forward-looking statements, as well as other risks included in the registrant’s most recent Annual Report on Form 20-F and other filings and submissions with the United States Securities and Exchange Commission.

No assurance can be given that the registrant’s actual results will not vary significantly from any expectation of future results that may be derived from the forward-looking statements included herein.

The attached material is a translation of the Japanese original. The Japanese original is authoritative.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


NIPPON TELEGRAPH AND TELEPHONE CORPORATION

By	/s/ Koji Ito
	Name:	Koji Ito
	Title:	General Manager
		Finance and Accounting Department

Date: February 4, 2011


Financial Results Release	February 4, 2011
For the Nine Months Ended December 31, 2010	[U.S. GAAP	]

Name of registrant: Nippon Telegraph and Telephone Corporation (“NTT”)

Code No.: 9432 (URL http://www.ntt.co.jp/ir/)

Stock exchanges on which the Company’s shares are listed: Tokyo, Osaka, Nagoya, Sapporo and Fukuoka

Representative: Satoshi Miura, President and Chief Executive Officer

Contact: Koji Ito, Head of IR, Finance and Accounting Department / TEL (03) 5205-5581

Scheduled date of filing quarterly securities report: February 7, 2011

Supplemental material on quarterly results: Yes

Presentation on quarterly results: Yes (for institutional investors and analysts)

1.	Consolidated Financial Results for the Nine Months Ended December 31, 2010 (April 1, 2010 – December 31, 2010)

Amounts are rounded off to nearest million yen.

(1) Consolidated Results of Operations


	(Millions of yen)
	Operating Revenues				Operating Income				Income (Loss) before Income Taxes				Net Income Attributable to NTT
Nine months ended December 31, 2010		7,542,693	0.2	%		1,065,317	12.4	%		1,031,521	9.5	%		458,334	9.4	%
Nine months ended December 31, 2009		7,525,664	(2.7	)%		948,087	(6.5	)%		941,853	(9.9	)%		418,998	(23.0	)%

Note: Percentages above represent changes from the corresponding previous period.


	Basic Earnings per Share Attributable to NTT			Diluted Earnings per Share Attributable to NTT
Nine months ended December 31, 2010		346.39	(yen)		—	(yen)
Nine months ended December 31, 2009		316.64	(yen)		—	(yen)

(2) Consolidated Financial Position


	(Millions of yen, except per share amounts)
	Total Assets		Total Equity		NTT Shareholders’ Equity		Equity Ratio (Ratio of NTT Shareholders’ Equity to Total Assets)			NTT Shareholders’ Equity per Share
December 31, 2010		19,378,700		10,103,796		8,049,053		41.5	%		6,083.26	(yen)
March 31, 2010		18,939,055		9,770,879		7,788,153		41.1	%		5,885.86	(yen)

2.	Dividends


	Annual Dividends
	End of the first quarter		End of the second quarter			End of the third quarter		Year-end			Total
Year Ended March 31, 2010		—		60.00	(yen)		—		60.00	(yen)		120.00	(yen)
Year Ending March 31, 2011		—		60.00	(yen)		—		—			—
Year Ending March 31, 2011 (Forecasts)		—		—			—		60.00	(yen)		120.00	(yen)

Note: Change in forecasts of dividends during the three months ended December 31: None

3.	Consolidated Financial Results Forecasts for the Fiscal Year Ending March 31, 2011 (April 1, 2010 – March 31, 2011)


	(Millions of yen)
	Operating Revenues				Operating Income				Income before Income Taxes				Net Income Attributable to NTT				Basic Earnings per Share Attributable to NTT
Year Ending March 31, 2011		10,140,000	(0.4	)%		1,180,000	5.6	%		1,150,000	2.7	%		500,000	1.6	%		377.89	(yen	)


Notes:	1.	Percentages above represent changes from the previous period.
	2.	Change in consolidated financial results forecasts for the fiscal year ending March 31, 2011 during the three months ended December 31, 2010: None

- 1 -

4.	Others

(1)

Change in significant consolidated subsidiaries during the three months ended December 31, 2010, which resulted in changes in the scope of consolidation : None

(Changes in significant subsidiaries for the three months ended December 31, 2010 which resulted in changes in the scope of consolidation)

(2)

Adoption of accounting which is simplified or exceptional for quarterly consolidated financial statements: None

(Application of simplified or exceptional accounting for quarterly consolidated financial statements)

(3)

Change in significant accounting principles, procedures and presentation in quarterly consolidated financial statements

(i)

Change due to revision of accounting standards and other regulations: Yes

(ii)

Others: None

(For further details, please see “Others” on page 11.)

(4)

Number of shares outstanding (common stock)


1. Number of shares outstanding (including treasury stock):

	December 31, 2010 : 1,448,659,067 shares

	March 31, 2010 : 1,574,120,900 shares

2. Number of treasury stock:

	December 31, 2010 : 125,511,297 shares

	March 31, 2010 : 250,923,665 shares

3. Weighted average number of shares outstanding:

	For the nine months ended December 31, 2010:	1,323,184,430 shares

	For the nine months ended December 31, 2009:	1,323,281,503 shares

Presentation on the status of quarterly review process:

This earnings release is not subject to the quarterly review process as required by the Financial Instruments and Exchange Act of Japan. As of the date when this earning release was issued, the review process on quarterly financial statements as required by the Financial Instruments and Exchange Act had not been finished.

Explanation for forecasts of operation and other notes:

Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently available and certain assumptions that we regard as reasonable and therefore actual results may differ materially from those contained in or suggested by any forward-looking statements. With regard to the assumptions and other related matters concerning forecasts for the fiscal year ending March 31, 2011, please refer to pages 10 and 26.

- 2 -

1.	Qualitative Information

(1)	Qualitative Information Relating to Consolidated Business Results

Consolidated results

Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)


	(Billions of yen)
	Three-Month Period Ended December 31, 2009 (October 1, 2009 – December 31, 2009)		Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)		Change			Percent Change
Operating revenues		2,527.6		2,543.6		16.1			0.6	%
Operating expenses		2,226.2		2,205.3		(21.0	)		(0.9	%)
Operating income		301.3		338.4		37.0			12.3	%
Net income before income taxes		298.3		321.2		23.0			7.7	%
Net income attributable to NTT		136.8		143.1		6.3			4.6	%

Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)



	(Billions of yen)
	Nine-Month Period Ended December 31, 2009 (April 1, 2009 – December 31, 2009)		Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)		Change			Percent Change
Operating revenues		7,525.7		7,542.7		17.0			0.2	%
Operating expenses		6,577.6		6,477.4		(100.2	)		(1.5	%)
Operating income		948.1		1,065.3		117.2			12.4	%
Net income before income taxes		941.9		1,031.5		89.7			9.5	%
Net income attributable to NTT		419.0		458.3		39.3			9.4	%

During the three-month period ended December 31, 2010, NTT Group directed its efforts towards an expansion of broadband and ubiquitous services pursuant to its “Road to Service Creation Business Group” Medium-Term Management Strategy, adopted in May 2008.

Fixed-line communications field

NTT Group worked to expand the coverage area of FLET’S Hikari and continued to further strengthen and expand the distribution of FLET’S Hikari. NTT Group began providing “FLET’S Market” and “Hikari i-Frame”, services using FLET’S Hikari that enable convenient and easy access to up-to-the-minute information useful for daily life, such as electronic flyers and recipes, in addition to news, weather and other useful information. Besides, NTT Group worked to increase the convenience of its FLET’S Hikari services by expanding “Hikari Portable”, a rental service for mobile Wi-Fi routers that enables various Wi-Fi terminals ^*1 to be used both within and outside the home, into western Japan. As a result of these efforts, the number of FLET’S Hikari subscriptions reached 14.72 million.

Mobile communications field

NTT Group received the No.1 rating by J.D. Power Asia Pacific in its customer satisfaction study ^*2 . NTT Group also released 18 handset models, including smartphones such as “GALAXY S”, and provided handsets and services that respond to the diverse needs of its customers. As a result, the total number of smartphones sold in the nine-months ended December 31, 2010 has exceeded one million. In addition, on December 24, 2010, NTT Group launched the new “Xi” service using LTE (Long Term Evolution) system, a new mobile phone communication standard featuring high-speed, large-capacity and low-latency transmission capabilities, in Tokyo, Osaka and Nagoya. As a result of these efforts, the number of mobile phone subscriptions reached 57.21 million.

- 3 -

Solutions field

NTT Group worked to provide high value-added solutions tailored to customer industries and business categories by expanding its cloud services, BizXaaS and BizCITY, as well as structuring and providing systems to customers that utilize cloud services. In addition, in order to achieve quick, low-cost system installation, NTT Group launched “Lindacloud”, a vertically-integrated server that has software specific to its intended purposes pre-installed into a power-saving, low-heat emitting, low-noise and environmentally-friendly hardware.

Upper-layer services

NTT Group worked to enhance its video services, including the implementation of a startover function, which allows a viewer to rewind a Hikari TV program in progress and view the program from the beginning. NTT Group also updated the e-Learning English conversation service, “Virtual English School”, and otherwise endeavored to enhance the e-Learning services that take advantage of the strengths of the Internet. In addition, NTT Group launched “NTT Net Settlement”, a settlement platform for e-commerce sites that allows the use of “docomo Mobile Payment” and other types of settlement services provided by NTT Group and others.

Global businesses

By acquiring one-hundred percent ownership of Dimension Data Holdings plc, which has offices in 49 countries around the world, and of Keane International, Inc., which has offices in 11 countries centered on North America, NTT Group has constructed a framework which enables it to provide global one-stop ICT services in Australia, South America, the Middle East and Africa, in addition to Asia, Europe and the United States. Moreover, NTT Group expanded its coverage area for its global VPN service, “Arcstar Global IP-VPN Service”, and also launched an IP service for global internal dialing, a seamless global VoIP (Voice over Internet Protocol) service that utilizes the “Arcstar Global IP-VPN Service”, making NTT Group Japan’s first telecommunications carrier to offer such service.

As a result of these efforts, NTT Group’s consolidated operating revenues for the three-month period ended December 31, 2010 were ¥2,543.6 billion (an increase of 0.6% from the same period of the previous fiscal year), consolidated operating expenses were ¥2,205.3 billion (a decrease of 0.9% from the same period of the previous fiscal year), consolidated operating income was ¥338.4 billion (an increase of 12.3% from the same period of the previous fiscal year), consolidated net income before income taxes was ¥321.2 billion (an increase of 7.7% from the same period of the previous fiscal year), and net income attributable to NTT was ¥143.1 billion (an increase of 4.6% from the same period of the previous fiscal year).

For the nine-month period ended December 31, 2010, NTT Group’s consolidated operating revenues were ¥7,542.7 billion (an increase of 0.2% from the same period of the previous fiscal year). Consolidated operating expenses were ¥6,477.4 billion (a decrease of 1.5% from the same period of the previous fiscal year). As a result, consolidated operating income was ¥1,065.3 billion (an increase of 12.4% from the same period of the previous fiscal year) while consolidated net income before income taxes was ¥1,031.5 billion (an increase of 9.5% from the same period of the previous fiscal year). Consolidated net income attributable to NTT was ¥458.3 billion (an increase of 9.4% from the same period of the previous fiscal year) for the nine-month period ended December 31, 2010.

Note:

NTT Group’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States.

(1)

Trademark for certification of connectivity among wireless LAN (Local Area Network) devices.

(2)

J.D. Power Asia Pacific 2010 Japan Mobile Phone Service Customer Satisfaction Index Study ^SM . Study results were based on responses obtained from 7,500 mobile phone users residing in Japan during the period between late July and late August 2010. www.jdpower.co.jp/ .

- 4 -

‚	Segment results

Results by business segment are as follows.

•

Regional telecommunications business segment

Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)


	(Billions of yen)
	Three-Month Period Ended December 31, 2009 (October 1, 2009 – December 31, 2009)		Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)		Change		Percent Change
Operating revenues		976.0		993.7		17.6		1.8	%
Operating expenses		945.0		947.9		2.9		0.3	%
Operating income		31.0		45.8		14.8		47.6	%

Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)


	(Billions of yen)
	Nine-Month Period Ended December 31, 2009 (April 1, 2009 – December 31, 2009)		Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)		Change			Percent Change
Operating revenues		2,913.7		2,929.9		16.2			0.6	%
Operating expenses		2,832.0		2,798.3		(33.6	)		(1.2	%)
Operating income		81.7		131.6		49.9			61.0	%

NTT Group’s consolidated operating revenues for the three-month period ended December 31, 2010 were ¥993.7 billion (an increase of 1.8% from the same period of the previous fiscal year). Revenues rose primarily due to an increase in solution services revenues and IP-related revenues attributable to the increase in “FLET’S Hikari” subscriptions, partially offset by a decrease in fixed voice related revenues owing to a decline in fixed-line telephone subscriptions. Consolidated operating expenses were ¥947.9 billion (an increase of 0.3% from the same period of the previous fiscal year) due to, among other factors, an increase in operating expenses, including expenses coupled with an increase in solution services revenues, despite a decrease in personnel expenses resulting from a decline in the number of employees and a decrease in depreciation and amortization. As a result, consolidated operating income in the three-month period ended December 31, 2010 was ¥45.8 billion (an increase of 47.6% from the same period of the previous fiscal year).

For the nine-month period ended December 31, 2010, consolidated operating revenues were ¥2,929.9 billion (an increase of 0.6% from the same period of the previous fiscal year) and consolidated operating expenses were ¥2,798.3 billion (a decrease of 1.2% from the same period of the previous fiscal year). As a result, consolidated operating income for the nine-month period ended December 31, 2010 was ¥131.6 billion (an increase of 61.0% from the same period of the previous fiscal year).

- 5 -

Number of subscriptions


	(Thousands of subscriptions)
	As of March 31, 2010		As of December 31, 2010		Change		Percent Change
FLET’S Hikari ⁽¹⁾		13,251		14,724		1,473		11.1	%
NTT East		7,533		8,356		823		10.9	%
NTT West		5,718		6,368		650		11.4	%
Hikari Denwa ⁽²⁾		10,142		11,641		1,499		14.8	%
NTT East		5,420		6,221		801		14.8	%
NTT West		4,722		5,420		699		14.8	%


Notes:	(1)	FLET’S Hikari includes B FLET’S and FLET’S Hikari Next provided by NTT East and B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown, and FLET’S Hikari Next provided by NTT West.
	(2)	The figures for Hikari Denwa indicate number of channels (in thousands).

•

Long-distance and international communications business segment

Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)


	(Billions of yen)
	Three-Month Period Ended December 31, 2009 (October 1, 2009 – December 31, 2009)		Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)		Change			Percent Change
Operating revenues		307.3		311.9		4.6			1.5	%
Operating expenses		282.3		287.8		5.5			1.9	%
Operating income		25.0		24.1		(0.9	)		(3.5	%)

Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)


	(Billions of yen)
	Nine-Month Period Ended December 31, 2009 (April 1, 2009 – December 31, 2009)		Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)		Change			Percent Change
Operating revenues		923.8		924.5		0.7			0.1	%
Operating expenses		847.5		858.4		10.8			1.3	%
Operating income		76.2		66.1		(10.1	)		(13.3	%)

Consolidated operating revenues for the three-month period ended December 31, 2010 were ¥311.9 billion (an increase of 1.5% from the same period of the previous fiscal year). This was mainly due to an increase in revenues from corporate solution businesses and from the increase in the number of consolidated subsidiaries, despite a decline in fixed voice related revenues and IP-related revenues. Consolidated operating expenses for the same period increased to ¥287.8 billion (an increase of 1.9% from the same period of the previous fiscal year) due in large part to an increase in personnel expenses and other operating expenses resulting from the increase in the number of consolidated subsidiaries. As a result, consolidated operating income for the three-month period ended December 31, 2010 was ¥24.1 billion (a decrease of 3.5% from the same period of the previous fiscal year).

For the nine-month period ended December 31, 2010, consolidated operating revenues were ¥924.5 billion (an increase of 0.1% from the same period of the previous fiscal year) and consolidated operating expenses were ¥858.4 billion (an increase of 1.3% from the same period of the previous fiscal year). As a result, consolidated operating income for the nine-month period ended December 31, 2010 was ¥66.1 billion (a decrease of 13.3% from the same period of the previous fiscal year).

- 6 -

•

Mobile communications business segment

Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)


	(Billions of yen)
	Three-Month Period Ended December 31, 2009 (October 1, 2009 – December 31, 2009)		Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)		Change			Percent Change
Operating revenues		1,096.6		1,071.0		(25.6	)		(2.3	%)
Operating expenses		880.6		845.4		(35.2	)		(4.0	%)
Operating income		216.0		225.6		9.6			4.4	%

Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)


	(Billions of yen)
	Nine-Month Period Ended December 31, 2009 (April 1, 2009 – December 31, 2009)		Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)		Change			Percent Change
Operating revenues		3,242.4		3,209.1		(33.2	)		(1.0	%)
Operating expenses		2,544.1		2,455.0		(89.1	)		(3.5	%)
Operating income		698.3		754.2		55.9			8.0	%

Consolidated operating revenues for the three-month period ended December 31, 2010 decreased to ¥1,071.0 billion (a decrease of 2.3% from the same period of the previous fiscal year) mainly due to a decrease in mobile voice related revenues caused by increased market penetration of the “Value Plan,” and a decrease in handset sales revenues resulting from a fall in wholesale unit prices, despite an increase in packet communications revenues. On the other hand, consolidated operating expenses decreased to ¥845.4 billion (a decrease of 4.0% from the same period of the previous fiscal year) as a result of a decrease in revenue-driven expenses, network-related expenses and others. As a result, consolidated operating income for the three-month period ended December 31, 2010 was ¥225.6 billion (an increase of 4.4% from the same period of the previous fiscal year).

For the nine-month period ended December 31 2010, consolidated operating revenues were ¥3,209.1 billion (a decrease of 1.0% from the same period of the previous fiscal year) and consolidated operating expenses were ¥2,455.0 billion (a decrease of 3.5% from the previous fiscal year). As a result, consolidated operating income for the nine-month period ended December 31, 2010 was ¥754.2 billion (an increase of 8.0% from the same period of the previous fiscal year).

Number of subscriptions


	(Thousands of subscriptions)
	As of March 31, 2010		As of December 31, 2010		Change			Percent Change
Mobile phone services		56,082		57,210		1,128			2.0	%
FOMA services		53,203		55,572		2,369			4.5	%
mova services		2,879		1,636		(1,242	)		(43.2	%)
Xi services		—		1		—			—
i-mode services		48,992		48,530		(462	)		(0.9	%)

Notes:

(1)

The numbers for Mobile phone services subscriptions, FOMA services subscriptions, mova services subscriptions and Xi services subscriptions include communications module service subscriptions.

(2)

Effective March 3, 2008, FOMA services subscriptions became mandatory for subscriptions to “2in1” services. Such FOMA services subscriptions to “2in1” services are included in the above numbers of Mobile phone services subscriptions and FOMA services subscriptions.

(3)

The number of subscriptions for i-mode services represents the combined total of FOMA and mova services subscriptions.

- 7 -

•

Data communications business segment

Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)


	(Billions of yen)
	Three-Month Period Ended December 31, 2009 (October 1, 2009 – December 31, 2009)		Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)		Change		Percent Change
Operating revenues		263.9		280.8		16.9		6.4	%
Operating expenses		247.8		259.2		11.4		4.6	%
Operating income		16.1		21.6		5.5		34.0	%

Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)



	(Billions of yen)
	Nine-Month Period Ended December 31, 2009 (April 1, 2009 – December 31, 2009)		Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)		Change			Percent Change
Operating revenues		798.2		816.6		18.4			2.3	%
Operating expenses		745.2		768.4		23.3			3.1	%
Operating income		53.0		48.2		(4.8	)		(9.1	%)

Consolidated operating revenues for the three-month period ended December 31, 2010 were ¥280.8 billion (an increase of 6.4% from the same period of the previous fiscal year) owing to the impact of a large-scale business transaction completed during the quarter and the increase in the number of consolidated subsidiaries. On the other hand, consolidated operating expenses for the three-month period ended December 31, 2010 were ¥259.2 billion (an increase of 4.6% from the same period of the previous fiscal year) due to an increase in expenses resulting from the increase in the number of consolidated subsidiaries and other factors. As a result, consolidated operating income for the three-month period ended December 31, 2010 was ¥21.6 billion (an increase of 34.0% from the same period of the previous fiscal year).

For the nine-month period ended December 31, 2010, consolidated operating revenues were ¥816.6 billion (an increase of 2.3% from the same period of the previous fiscal year) and consolidated operating expenses were ¥768.4 billion (an increase of 3.1% from the same period of the previous fiscal year). As a result, consolidated operating income for the nine-month period ended December 31, 2010 was ¥48.2 billion (a decrease of 9.1% from the same period of the previous fiscal year).

- 8 -

•

Other segments

Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)


	(Billions of yen)
	Three-Month Period Ended December 31, 2009 (October 1, 2009 – December 31, 2009)		Three-Month Period Ended December 31, 2010 (October 1, 2010 – December 31, 2010)		Change			Percent Change
Operating revenues		263.6		268.9		5.3			2.0	%
Operating expenses		256.9		253.9		(3.0	)		(1.2	%)
Operating income		6.7		15.0		8.3			124.5	%

Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)



	(Billions of yen)
	Nine-Month Period Ended December 31, 2009 (April 1, 2009 – December 31, 2009)		Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)		Change			Percent Change
Operating revenues		788.9		782.2		(6.8	)		(0.9	%)
Operating expenses		775.4		741.1		(34.3	)		(4.4	%)
Operating income		13.5		41.1		27.5			203.5	%

Despite a decrease in revenues from the real estate business, consolidated operating revenues for the three-month period ended December 31, 2010 were ¥268.9 billion (an increase of 2.0% from the same period of the previous fiscal year) due to an increase in revenues from the construction and power business and the system development business. Consolidated operating expenses were ¥253.9 billion (a decrease of 1.2% from the same period of the previous fiscal year) due to lower loan loss expenses in the finance business. As a result, consolidated operating income for the three-month period ended December 31, 2010 was ¥15.0 billion (an increase of 124.5% from the same period of the previous fiscal year).

For the nine-month period ended December 31, 2010, consolidated operating revenues were ¥782.2 billion (a decrease of 0.9% from the same period of the previous fiscal year) and consolidated operating expenses were ¥741.1 billion (a decrease of 4.4% from the same period of the previous fiscal year). As a result, consolidated operating income for the nine-month period ended December 31, 2010 was ¥41.1 billion (an increase of 203.5% from the same period of the previous fiscal year).

- 9 -

(2) Qualitative Information relating to Consolidated Financial Standing

Consolidated cash flows from operating activities for the nine-month period ended December 31, 2010 were ¥1,733.4 billion (an increase of ¥81.4 billion (4.9%) in cash flows compared to the same period of the previous fiscal year). This was due to the effect of the increase in net income for the quarter and other factors.

Consolidated cash flows from investing activities showed outlays of ¥1,785.4 billion (an increase of ¥153.2 billion (9.4%) compared to the same period of the previous fiscal year). This was due in part to the increase in non-current investments, such as equity participation, despite the decrease in expenditures for capital investment.

Consolidated cash flows from financing activities showed outlays of ¥37.5 billion (a decrease of ¥359.9 billion (90.6%) compared to the same period of the previous fiscal year). This resulted from an increase in revenues due to an increase in long-term debt, a decrease in outlays for payments for long-term debt and other factors.

As a result of the above, NTT Group’s consolidated cash and cash equivalents as of December 31, 2010 were ¥818.2 billion, a decrease of ¥92.9 billion (10.2%) from the end of the previous fiscal year.


	(Billions of yen)
	Nine-Month Period Ended December 31, 2009 (April 1, 2009 – December 31, 2009)			Nine-Month Period Ended December 31, 2010 (April 1, 2010 – December 31, 2010)			Change			Percent Change
Cash flows from operating activities		1,652.0			1,733.4			81.4			4.9	%
Cash flows from investing activities		(1,632.3	)		(1,785.4	)		(153.2	)		(9.4	%)
Cash flows from financing activities		(397.5	)		(37.5	)		359.9			90.6	%

(3) Qualitative Information Relating to Consolidated Results Forecasts

There has been no change in the consolidated results forecasts since those announced on November 9, 2010. For assumptions used in these results forecasts and other related matters, please see page 26.

- 10 -

2. Others

(1)	Change in significant consolidated subsidiaries during the three months ended December 31, 2010, which resulted in changes in the scope of consolidation : None

(2)	Adoption of accounting which is simplified or exceptional for quarterly consolidated financial statements: None

(3)	Change in significant accounting principles, procedures and presentation in quarterly consolidated financial statements

Accounting for Transfers of Financial Assets

Effective April 1, 2010, NTT Group adopted Accounting Standards Update (“ASU”) 2009-16 “Accounting for Transfers of Financial Assets” issued by Financial Accounting Standards Board (“FASB”) in December 2009. This ASU eliminates the concept and associated guidance of a “qualifying special-purpose entity,” creates more stringent conditions for reporting a transfer of a portion of a financial asset as a sale, clarifies other sale-accounting criteria, and changes the initial measurement of a transferor’s interest in transferred financial assets. This ASU also provides for transfers that occurred before and after its effective date. The adoption of this ASU did not have a material impact on the results of operations and financial position of NTT Group.

Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities (“VIE”).

Effective April 1, 2010, NTT Group adopted ASU 2009-17 “Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities (“VIE”)” issued by FASB in December 2009. This ASU prescribes the change in approach for determining VIE’s primary beneficiaries (the reporting entities that must consolidate the VIE) and requires companies to reassess more frequently whether they must consolidate VIE. The adoption of this ASU had an impact on the accounting for consolidated VIE, however, the adoption of this ASU did not have a material impact on the results of operations and financial position of NTT Group.

- 11 -

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheets


	Millions of yen
	March 31, 2010			December 31, 2010			Increase (Decrease)
ASSETS
Current assets:
Cash and cash equivalents	¥	911,062		¥	818,194		¥	(92,868	)
Short-term investments		382,227			395,416			13,189
Notes and accounts receivable, trade		1,948,467			2,182,851			234,384
Allowance for doubtful accounts		(41,092	)		(47,049	)		(5,957	)
Inventories		278,869			383,111			104,242
Prepaid expenses and other current assets		508,373			629,942			121,569
Deferred income taxes		257,793			231,567			(26,226	)

Total current assets		4,245,699			4,594,032			348,333

Property, plant and equipment:
Telecommunications equipment		14,708,053			14,718,332			10,279
Telecommunications service lines		14,285,962			14,457,201			171,239
Buildings and structures		5,789,511			5,828,101			38,590
Machinery, vessels and tools		1,790,366			1,825,263			34,897
Land		1,122,797			1,132,220			9,423
Construction in progress		269,149			285,901			16,752

		37,965,838			38,247,018			281,180
Accumulated depreciation		(27,908,292	)		(28,397,197	)		(488,905	)

Net property, plant and equipment		10,057,546			9,849,821			(207,725	)


Investments and other assets:
Investments in affiliated companies		634,950			601,490			(33,460	)
Marketable securities and other investments		301,270			289,737			(11,533	)
Goodwill		499,830			806,479			306,649
Other intangibles		1,453,941			1,485,579			31,638
Other assets		916,884			890,915			(25,969	)
Deferred income taxes		828,935			860,647			31,712

Total investments and other assets		4,635,810			4,934,847			299,037

Total assets	¥	18,939,055		¥	19,378,700		¥	439,645

- 12 -


	Millions of yen
	March 31, 2010			December 31, 2010			Increase (Decrease)
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	¥	310,597		¥	328,063		¥	17,466
Current portion of long-term debt		781,323			1,094,845			313,522
Accounts payable, trade		1,301,944			1,141,224			(160,720	)
Accrued payroll		442,295			361,605			(80,690	)
Accrued interest		11,309			12,021			712
Accrued taxes on income		258,178			148,338			(109,840	)
Accrued consumption tax		33,433			55,188			21,755
Advances received		152,619			189,609			36,990
Deposit received		85,377			110,374			24,997
Other		211,235			257,271			46,036

		3,588,310			3,698,538			110,228

Long-term liabilities:
Long-term debt		3,376,669			3,292,729			(83,940	)
Obligations under capital leases		41,032			33,637			(7,395	)
Liability for employees’ retirement benefits		1,447,781			1,476,914			29,133
Other		714,384			773,086			58,702

Total long-term liabilities		5,579,866			5,576,366			(3,500	)

Equity:
NTT shareholders’ equity
Common stock, no par value		937,950			937,950			—
Additional paid-in capital		2,838,927			2,832,418			(6,509	)
Retained earnings		5,406,726			5,104,313			(302,413	)
Accumulated other comprehensive income (loss)		(189,606	)		(222,532	)		(32,926	)
Treasury stock, at cost		(1,205,844	)		(603,096	)		602,748

Total NTT shareholders’ equity		7,788,153			8,049,053			260,900

Noncontrolling interests		1,982,726			2,054,743			72,017

Total equity		9,770,879			10,103,796			332,917

Total liabilities and equity	¥	18,939,055		¥	19,378,700		¥	439,645

- 13 -

(2) Consolidated Statements of Income

NINE-MONTH PERIOD ENDED DECEMBER 31


	Millions of yen
	2009			2010			Increase (Decrease)
Operating revenues:
Fixed voice related services	¥	1,780,912		¥	1,646,527		¥	(134,385	)
Mobile voice related services		1,642,412			1,557,603			(84,809	)
IP / packet communications services		2,316,395			2,487,683			171,288
Sale of telecommunication equipment		447,335			424,198			(23,137	)
System integration		849,851			882,721			32,870
Other		488,759			543,961			55,202

		7,525,664			7,542,693			17,029

Operating expenses:
Cost of services (exclusive of items shown separately below)		1,777,554			1,788,769			11,215
Cost of equipment sold (exclusive of items shown separately below)		578,488			553,173			(25,315	)
Cost of system integration (exclusive of items shown separately below)		542,130			567,032			24,902
Depreciation and amortization		1,500,533			1,457,744			(42,789	)
Impairment loss		547			698			151
Selling, general and administrative expenses		2,178,325			2,109,960			(68,365	)

		6,577,577			6,477,376			(100,201	)

Operating income (loss)		948,087			1,065,317			117,230

Other income (expenses):
Interest and amortization of bond discounts and issue costs		(42,392	)		(40,380	)		2,012
Interest income		18,565			16,109			(2,456	)
Other, net		17,593			(9,525	)		(27,118	)

		(6,234	)		(33,796	)		(27,562	)

Income (loss) before income taxes and equity in earnings (losses) of affiliated companies		941,853			1,031,521			89,668

Income tax expense (benefit):
Current		406,002			397,712			(8,290	)
Deferred		(31,857	)		13,530			45,387

		374,145			411,242			37,097

Income (loss) before equity in earnings (losses) of affiliated companies		567,708			620,279			52,571

Equity in earnings (losses) of affiliated companies		8,962			5,430			(3,532	)

Net income (loss)		576,670			625,709			49,039

Less – Net income attributable to noncontrolling interests		(157,672	)		(167,375	)		(9,703	)

Net income (loss) attributable to NTT	¥	418,998		¥	458,334		¥	39,336


Summary of total comprehensive income (loss):
Net income (loss)	¥	576,670		¥	625,709		¥	49,039
Other comprehensive income (loss)		10,571			(43,906	)		(54,477	)
Comprehensive income (loss)		587,241			581,803			(5,438	)
Less – Comprehensive income attributable to noncontrolling interests		(157,950	)		(156,395	)		1,555

Comprehensive income (loss) attributable to NTT	¥	429,291		¥	425,408		¥	(3,883	)


	Shares or yen
	2009		2010
Per share of common stock:
Weighted average number of shares outstanding		1,323,281,503		1,323,184,430
Net income (loss) attributable to NTT	¥	316.64	¥	346.39

- 14 -

THREE-MONTH PERIOD ENDED DECEMBER 31


	Millions of yen
	2009			2010			Increase (Decrease)
Operating revenues:
Fixed voice related services	¥	586,478		¥	544,840		¥	(41,638	)
Mobile voice related services		557,806			515,983			(41,823	)
IP / packet communications services		780,441			840,163			59,722
Sale of telecommunication equipment		151,639			142,229			(9,410	)
System integration		282,789			310,217			27,428
Other		168,403			190,194			21,791

		2,527,556			2,543,626			16,070

Operating expenses:
Cost of services (exclusive of items shown separately below)		599,810			608,790			8,980
Cost of equipment sold (exclusive of items shown separately below)		191,171			186,242			(4,929	)
Cost of system integration (exclusive of items shown separately below)		180,742			200,287			19,545
Depreciation and amortization		503,541			493,368			(10,173	)
Impairment loss		47			354			307
Selling, general and administrative expenses		750,928			716,226			(34,702	)

		2,226,239			2,205,267			(20,972	)

Operating income (loss)		301,317			338,359			37,042

Other income (expenses):
Interest and amortization of bond discounts and issue costs		(13,581	)		(13,424	)		157
Interest income		6,275			5,230			(1,045	)
Other, net		4,252			(8,939	)		(13,191	)

		(3,054	)		(17,133	)		(14,079	)

Income (loss) before income taxes and equity in earnings (losses) of affiliated companies		298,263			321,226			22,963

Income tax expense (benefit):
Current		114,992			123,497			8,505
Deferred		(612	)		7,004			7,616

		114,380			130,501			16,121

Income (loss) before equity in earnings (losses) of affiliated companies		183,883			190,725			6,842

Equity in earnings (losses) of affiliated companies		4,244			4,577			333

Net income (loss)		188,127			195,302			7,175

Less – Net income attributable to noncontrolling interests		(51,373	)		(52,204	)		(831	)

Net income (loss) attributable to NTT	¥	136,754		¥	143,098		¥	6,344


Summary of total comprehensive income (loss):
Net income (loss)	¥	188,127		¥	195,302		¥	7,175
Other comprehensive income (loss)		(32,935	)		(3,010	)		29,295
Comprehensive income (loss)		155,192			192,292			37,100
Less – Comprehensive income attributable to noncontrolling interests		(41,719	)		(52,286	)		(10,567	)

Comprehensive income (loss) attributable to NTT	¥	113,473		¥	140,006		¥	26,533


	Shares or yen
	2009		2010
Per share of common stock:
Weighted average number of shares outstanding		1,323,279,372		1,323,176,101
Net income (loss) attributable to NTT	¥	103.34	¥	108.15

- 15 -

(3) Consolidated Statements of Cash Flows

NINE-MONTH PERIOD ENDED DECEMBER 31


	Millions of yen
	2009			2010			Increase (Decrease)
Cash flows from operating activities:
Net income (loss)	¥	576,670		¥	625,709		¥	49,039
Adjustments to reconcile net income (loss) to net cash provided by operating activities -
Depreciation and amortization		1,500,533			1,457,744			(42,789	)
Impairment loss		547			698			151
Deferred taxes		(31,857	)		13,530			45,387
Loss on disposal of property, plant and equipment		67,614			56,157			(11,457	)
Equity in (earnings) losses of affiliated companies		(8,962	)		(5,430	)		3,532
(Increase) decrease in notes and accounts receivable, trade		(49,583	)		(83,079	)		(33,496	)
(Increase) decrease in inventories		(70,109	)		(83,094	)		(12,985	)
(Increase) decrease in other current assets		(62,392	)		(96,796	)		(34,404	)
Increase (decrease) in accounts payable, trade and accrued payroll		(272,670	)		(197,255	)		75,415
Increase (decrease) in accrued consumption tax		18,035			17,781			(254	)
Increase (decrease) in accrued interest		457			670			213
Increase (decrease) in advances received		6,322			9,505			3,183
Increase (decrease) in accrued taxes on income		(138,259	)		(116,232	)		22,027
Increase (decrease) in other current liabilities		18,722			18,869			147
Increase (decrease) in liability for employees’ retirement benefits		64,576			26,058			(38,518	)
Increase (decrease) in other long-term liabilities		92,589			54,905			(37,684	)
Other		(60,252	)		33,635			93,887

Net cash provided by (used in) operating activities	¥	1,651,981		¥	1,733,375		¥	81,394

- 16 -


	Millions of yen
	2009			2010			Increase (Decrease)
Cash flows from investing activities:
Payments for property, plant and equipment	¥	(1,066,954	)	¥	(1,060,902	)	¥	6,052
Proceeds from sale of property, plant and equipment		20,362			10,602			(9,760	)
Payments for purchase of non-current investments		(74,718	)		(408,096	)		(333,378	)
Proceeds from sale and redemption of non-current investments		15,267			20,077			4,810
Payments for purchase of short-term investments		(154,742	)		(761,140	)		(606,398	)
Proceeds from redemption of short-term investments		48,906			749,011			700,105
Acquisition of intangibles and other assets		(420,385	)		(334,971	)		85,414

Net cash provided by (used in) investing activities		(1,632,264	)		(1,785,419	)		(153,155	)


Cash flows from financing activities:
Proceeds from issuance of long-term debt		428,147			549,503			121,356
Payments for settlement of long-term debt		(477,969	)		(322,176	)		155,793
Proceeds from issuance of short-term debt		2,805,169			2,073,959			(731,210	)
Payments for settlement of short-term debt		(2,729,265	)		(2,056,219	)		673,046
Dividends paid		(152,177	)		(158,783	)		(6,606	)
Proceeds from sale of (payments for acquisition of) treasury stock, net		(199	)		(185	)		14
Acquisition of treasury stocks by subsidiary		(20,177	)		(9,550	)		10,627
Other		(250,986	)		(114,096	)		136,890

Net cash provided by (used in) financing activities		(397,457	)		(37,547	)		359,910

Effect of exchange rate changes on cash and cash equivalents		(120	)		(3,277	)		(3,157	)

Net increase (decrease) in cash and cash equivalents		(377,860	)		(92,868	)		284,992
Cash and cash equivalents at beginning of period		1,052,777			911,062			(141,715	)

Cash and cash equivalents at end of period	¥	674,917		¥	818,194		¥	143,277


Cash paid during the period for:
Interest	¥	41,933		¥	39,764		¥	(2,169	)
Income taxes, net	¥	510,568		¥	516,917		¥	6,349

- 17 -

(4) Going Concern Assumption

None

(5) Business Segments

NINE-MONTH PERIOD ENDED DECEMBER 31

1. Sales and operating revenues


	(Millions of yen)
	Nine months ended December 31, 2009			Nine months ended December 31, 2010			Increase (Decrease)
Regional communications business
Customers		2,531,004			2,564,030			33,026
Intersegment		382,699			365,887			(16,812	)

Total		2,913,703			2,929,917			16,214
Long-distance and international communications business
Customers		844,295			845,834			1,539
Intersegment		79,459			78,649			(810	)

Total		923,754			924,483			729
Mobile communications business
Customers		3,208,096			3,176,850			(31,246	)
Intersegment		34,268			32,279			(1,989	)

Total		3,242,364			3,209,129			(33,235	)
Data communications business
Customers		711,816			722,762			10,946
Intersegment		86,344			93,820			7,476

Total		798,160			816,582			18,422
Other
Customers		230,453			233,217			2,764
Intersegment		558,474			548,949			(9,525	)

Total		788,927			782,166			(6,761	)
Elimination		(1,141,244	)		(1,119,584	)		21,660

Consolidated total		7,525,664			7,542,693			17,029

2. Segment profit or loss


	(Millions of yen)
	Nine months ended December 31, 2009		Nine months ended December 31, 2010		Increase (Decrease)
Operating income (loss)
Regional communications business		81,741		131,599		49,858
Long-distance and international communications business		76,238		66,121		(10,117	)
Mobile communications business		698,306		754,156		55,850
Data communications business		52,991		48,160		(4,831	)
Other		13,527		41,051		27,524

Total		922,803		1,041,087		118,284
Elimination		25,284		24,230		(1,054	)

Consolidated total		948,087		1,065,317		117,230

- 18 -

THREE-MONTH PERIOD ENDED DECEMBER 31

1. Sales and operating revenues


	(Millions of yen)
	Three months ended December 31, 2009			Three months ended December 31, 2010			Increase (Decrease)
Regional communications business
Customers		848,687			870,564			21,877
Intersegment		127,353			123,119			(4,234	)

Total		976,040			993,683			17,643
Long-distance and international communications business
Customers		280,243			284,094			3,851
Intersegment		27,047			27,810			763

Total		307,290			311,904			4,614
Mobile communications business
Customers		1,084,583			1,059,977			(24,606	)
Intersegment		11,974			11,000			(974	)

Total		1,096,557			1,070,977			(25,580	)
Data communications business
Customers		235,772			250,857			15,085
Intersegment		28,102			29,923			1,821

Total		263,874			280,780			16,906
Other
Customers		78,271			78,134			(137	)
Intersegment		185,310			190,743			5,433

Total		263,581			268,877			5,296
Elimination		(379,786	)		(382,595	)		(2,809	)

Consolidated total		2,527,556			2,543,626			16,070

2. Segment profit or loss


	(Millions of yen)
	Three months ended December 31, 2009		Three months ended December 31, 2010		Increase (Decrease)
Operating income (loss)
Regional communications business		31,043		45,810		14,767
Long-distance and international communications business		25,002		24,136		(866	)
Mobile communications business		215,981		225,584		9,603
Data communications business		16,118		21,592		5,474
Other		6,666		14,962		8,296

Total		294,810		332,084		37,274
Elimination		6,507		6,275		(232	)

Consolidated total		301,317		338,359		37,042

- 19 -

(6) NTT Shareholders’ Equity

Cancellation of Treasury Stock

On May 14, 2010, the board of directors adopted the basic policy on cancellation of treasury stock. Pursuant to this policy, all treasury stock owned by NTT as of March 31, 2010 (250,923,665 shares) will be cancelled over two fiscal years. One-half of the treasury stock will be cancelled during the 2010 calendar year and the remainder of the treasury stock will be cancelled during the fiscal year ending March 31, 2012.

On November 9, 2010, the board of directors resolved that NTT will cancel 125,461,833 shares held as treasury stock and on November 15, 2010 NTT cancelled these shares. As a result of this cancellation, “Additional paid-in capital” and “Retained earnings” decreased by ¥928 million and ¥601,964 million, respectively.

Dividends

Cash dividends paid


Resolution		The shareholders’ meeting on June 24, 2010
Class of shares		Common stock
Source of dividends		Retained earnings
Total cash dividends paid		¥79,392 million
Cash dividends per share		¥60
Date of record		March 31, 2010
Date of payment		June 25, 2010


Resolution		The Board of Directors’ meeting on November 9, 2010
Class of shares		Common stock
Source of dividends		Retained earnings
Total cash dividends paid		¥79,391 million
Cash dividends per share		¥60
Date of record		September 30, 2010
Date of payment		December 13, 2010

Significant Changes in NTT Shareholders’ Equity

None

(7) Subsequent events

Bond Issue

On December 10, 2010, the board of directors resolved that NTT may raise up to ¥190 billion by issuing bonds or incurring long-term borrowings during the period from January 1 to March 31, 2011. Based on this resolution, NTT issued bonds as follows:


Series 60 Nippon Telegraph and Telephone straight bonds
Date of payment		January 26, 2011
Issue amount		¥70 billion
Issue price		¥99.93 per ¥100
Interest rate		1.31%
Date of maturity		December 18, 2020
Use of proceeds		Appropriated as working capital due to the decrease in cash reserves resulting from NTT’s settlement of the cash offer for Dimension Data’s shares

The Repurchase of Shares by NTT DOCOMO

In January 2011, NTT DOCOMO repurchased a total of 115,986 shares for ¥16,831 million. As a result, NTT’s interest in NTT DOCOMO increased from 66.5% to 66.7%. NTT plans to record the resulting increase in interest as “Additional paid-in capital” in the consolidated balance sheet as of March 31, 2011.

- 20 -

4. (Reference)

NON-CONSOLIDATED FINANCIAL STATEMENTS

(1) NON-CONSOLIDATED BALANCE SHEETS

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	March 31, 2010		December 31, 2010		Increase (Decrease)
ASSETS
Current assets:
Cash and bank deposits		10,566		15,336		4,770
Accounts receivable, trade		3,096		104		(2,992	)
Supplies		241		282		40
Subsidiary deposits		122,513		106,852		(15,661	)
Other		392,958		567,045		174,086

Total current assets		529,377		689,621		160,244

Fixed assets:
Property, plant and equipment		184,327		177,062		(7,264	)
Intangible fixed assets		54,148		46,187		(7,961	)
Investments and other assets
Investments in subsidiaries and affiliated companies		4,794,219		5,074,105		279,885
Long-term loans receivable to subsidiaries		1,869,655		1,651,285		(218,370	)
Other		46,061		43,802		(2,258	)

Total investments and other assets		6,709,936		6,769,192		59,256

Total fixed assets		6,948,412		6,992,442		44,030

TOTAL ASSETS		7,477,789		7,682,064		204,274


Notes:	1.	These quarterly financial statements are exempt from auditor’s review in the legal disclosure.
	2.	These quarterly financial statements are prepared based on “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

- 21 -

(Reference)


	Millions of yen
	March 31, 2010			December 31, 2010			Increase (Decrease)
LIABILITIES
Current liabilities:
Accounts payable, trade		459			164			(295	)
Current portion of corporate bonds		230,000			457,902			227,902
Current portion of long-term borrowings		181,104			92,172			(88,932	)
Accrued taxes on income		36,165			17,489			(18,675	)
Deposit received from subsidiaries		60,540			84,031			23,490
Asset retirement obligations		—			256			256
Other		39,481			32,132			(7,348	)

Total current liabilities		547,751			684,149			136,398


Long-term liabilities:
Corporate bonds		1,341,019			1,113,226			(227,792	)
Long-term borrowings		627,770			847,350			219,580
Liability for employees’ retirement benefits		28,096			29,816			1,720
Asset retirement obligations		—			1,165			1,165
Other		1,423			1,395			(28	)

Total long-term liabilities		1,998,309			1,992,954			(5,355	)

TOTAL LIABILITIES		2,546,060			2,677,104			131,043


NET ASSETS
Shareholders’ equity:
Common stock		937,950			937,950			—
Capital surplus		2,673,794			2,672,826			(968	)
Earned surplus		2,523,050			1,995,924			(527,126	)
Treasury stock		(1,205,843	)		(603,096	)		602,747

Total shareholders’ equity		4,928,951			5,003,603			74,652

Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		2,777			1,356			(1,421	)

Total unrealized gains (losses), translation adjustments, and others		2,777			1,356			(1,421	)

TOTAL NET ASSETS		4,931,728			5,004,960			73,231

TOTAL LIABILITIES AND NET ASSETS		7,477,789			7,682,064			204,274


Notes:	1.	These quarterly financial statements are exempt from auditor’s review in the legal disclosure.
	2.	These quarterly financial statements are prepared based on “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

- 22 -

(Reference)

(2) NON-CONSOLIDATED STATEMENTS OF INCOME

NINE-MONTH PERIOD ENDED DECEMBER 31

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	2009		2010		Increase (Decrease)
Operating revenues		335,220		347,468		12,248
Operating expenses		111,366		107,065		(4,301	)

Operating income		223,854		240,403		16,549

Non-operating revenues:
Interest income		25,023		22,872		(2,150	)
Lease and rental income		8,896		9,191		295
Miscellaneous income		2,224		1,636		(587	)

Total non-operating revenues		36,144		33,700		(2,443	)

Non-operating expenses:
Interest expenses		8,889		8,046		(843	)
Corporate bond interest expenses		18,505		17,394		(1,110	)
Exchange losses		0		8,626		8,626
Miscellaneous expenses		7,971		5,042		(2,928	)

Total non-operating expenses		35,366		39,109		3,743

Recurring profit		224,631		234,994		10,362

Special losses		—		757		757

Income before income taxes		224,631		234,237		9,605

Income taxes		2,811		617		(2,194	)

Net income		221,820		233,620		11,799


(Reference) Major components of operating revenues
Dividends received	217,852	233,103	15,250
Revenues from group management	13,762	14,362	600
Revenues from basic R&D	95,249	92,999	(2,250	)


Notes:	1.	These quarterly financial statements are exempt from auditor’s review in the legal disclosure.
	2.	These quarterly financial statements are prepared based on “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

- 23 -

(Reference)

THREE-MONTH PERIOD ENDED DECEMBER 31

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	2009		2010		Increase (Decrease)
Operating revenues		116,773		116,453		(320	)
Operating expenses		37,492		36,041		(1,451	)

Operating income		79,280		80,411		1,131

Non-operating revenues:
Interest income		8,245		7,582		(662	)
Lease and rental income		3,081		3,087		6
Miscellaneous income		185		123		(61	)

Total non-operating revenues		11,511		10,793		(718	)

Non-operating expenses:
Interest expenses		2,823		2,791		(32	)
Corporate bond interest expenses		6,193		5,850		(342	)
Miscellaneous expenses		3,879		3,986		107

Total non-operating expenses		12,896		12,628		(267	)

Recurring profit		77,896		78,576		680

Income before income taxes		77,896		78,576		680

Income taxes		720		256		(464	)

Net income		77,175		78,320		1,144


(Reference) Major components of operating revenues
Dividends received		77,892		77,857		(34	)
Revenues from group management		4,587		4,787		199
Revenues from basic R&D		31,749		30,999		(750	)


Notes:	1.	These quarterly financial statements are exempt from auditor’s review in the legal disclosure.
	2.	These quarterly financial statements are prepared based on “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

- 24 -

(Reference)

(3) NON-CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE-MONTH PERIOD ENDED DECEMBER 31

(Based on accounting principles generally accepted in Japan)


	Millions of yen
	2009			2010			Increase (Decrease)
Cash flows from operating activities:
Income before income taxes		224,631			234,237			9,605
Depreciation and amortization		35,114			34,247			(867	)
Loss on disposal of property, plant and equipment		626			624			(2	)
Dividends received		(217,852	)		(233,103	)		(15,250	)
Increase (decrease) in liability for employees’ retirement benefits		1,842			1,720			(122	)
(Increase) decrease in accounts receivable		(9,326	)		(28,086	)		(18,759	)
Increase (decrease) in accounts payable and accrued expenses		(28,388	)		(4,752	)		23,635
Increase (decrease) in accrued consumption tax		605			692			86
(Increase) decrease in other current assets		(7,087	)		(4,209	)		2,877
(Increase) decrease in subsidiary deposits		(16,000	)		(14,000	)		2,000
Increase (decrease) in deposit received from subsidiaries		(33,789	)		23,490			57,280
Other		6,885			11,606			4,720

Sub-total		(42,737	)		22,467			65,204

Interest and dividends received		242,650			255,031			12,381
Interest paid		(26,901	)		(23,900	)		3,001
Income taxes received (paid)		36,495			4,884			(31,611	)

Net cash provided by (used in) operating activities		209,506			258,482			48,976


Cash flows from investing activities:
Payments for property, plant and equipment		(25,516	)		(27,645	)		(2,129	)
Payments for purchase of investment securities		(1,474	)		(285,665	)		(284,191	)
Proceeds from sale of investment securities		971			3,827			2,855
Payments for long-term loans		(340,000	)		(70,000	)		270,000
Proceeds from long-term loans receivable		374,512			114,352			(260,160	)
(Increase) decrease in long-term subsidiary deposits		—			35,000			35,000
Other		280			(4,535	)		(4,815	)

Net cash provided by (used in) investing activities		8,773			(234,667	)		(243,441	)


Cash flows from financing activities:
Proceeds from issuance of long-term debt		309,966			280,000			(29,966	)
Payments for settlement of long-term debt		(374,512	)		(149,352	)		225,160
Payments for settlement of lease obligations		(79	)		(34	)		44
Dividends paid		(152,177	)		(158,782	)		(6,605	)
Proceeds from sale of (payments for acquisition of) treasury stock, net		(198	)		(184	)		13

Net cash provided by (used in) financing activities		(217,000	)		(28,353	)		188,647

Net increase (decrease) in cash and cash equivalents		1,279			(4,537	)		(5,817	)

Cash and cash equivalents at beginning of period		94,208			121,157			26,949

Cash and cash equivalents at end of period		95,487			116,619			21,132


Notes:	1.	These quarterly financial statements are exempt from auditor’s review in the legal disclosure.
	2.	These quarterly financial statements are prepared based on “Regulation for Terminology, Forms and Preparation of Quarterly Financial Statements.”

- 25 -

[Note]

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.

- 26 -

Attachment

Nippon Telegraph and Telephone Corporation

February 4, 2011

NTT’s Shares and Shareholders (as of December 31, 2010)

1.	Classification of Shareholders


Details	NTT’s Shares and Shareholders (1 unit =100 shares)																Shares Representing Less Than One Unit
	Government and Public Bodies		Financial Institutions		Securities Firms		Other Domestic Corporations		Foreign Corporations, etc.				Domestic Individuals, etc.		Total
	Government and Public Bodies		Financial Institutions		Securities Firms		Other Domestic Corporations		Non- Individuals		Individuals		Domestic Individuals, etc.		Total
Total Holders		4		320		81		8,038		1,119		981		952,789		963,332		—
Total Shares (Units)		5,305,885		2,138,657		47,479		172,007		3,254,091		7,487		3,542,820		14,468,426		1,816,467
%		36.67		14.78		0.33		1.19		22.49		0.05		24.49		100.00		—

Notes:

(1)

“Domestic Individuals, etc.” includes 1,255,115 units of treasury stock, and “Shares Representing Less Than One Unit” includes 97 shares of treasury stock. 125,511,597 shares of treasury stock represents the number of shares of treasury stock recorded in the shareholders’ register; the actual number of treasury stock shares at the end of December 31, 2010 was 125,511,297.

(2)	“Other Domestic Corporations” includes 164 units under the name of the Japan Securities Depository Center, and “Shares Representing Less Than One Unit” includes 72 shares under the name of the Japan Securities Depository Center.

(3)	The number of shareholders who only own shares representing less than one unit is 229,568.

2.	Classification by Number of Shares


Details	NTT’s Shares and Shareholders (1 unit =100 shares)																Shares Representing Less Than One Unit
Details	At Least 1,000 Units		At Least 500 Units		At Least 100 Units		At Least 50 Units		At Least 10 Units		At Least 5 Units		At Least 1 Unit		Total		Shares Representing Less Than One Unit
Number of Holders		416		187		944		1,079		26,074		61,360		873,272		963,332		—
%		0.04		0.02		0.10		0.11		2.71		6.37		90.65		100.00		—
Total Shares (Units)		11,949,351		135,097		195,722		69,827		400,145		371,927		1,346,357		14,468,426		1,816,467
%		82.59		0.93		1.35		0.48		2.77		2.57		9.31		100.00		—

Notes:

(1)	“At Least 1,000 Units” includes 1,255,115 units of treasury stock, and “Shares Representing Less Than One Unit” includes 97 shares of treasury stock.

(2)	“At Least 100 Units” includes 164 units under the name of the Japan Securities Depository Center, and “Shares Representing Less Than One Unit” includes 72 shares under the name of the Japan Securities Depository Center.

3.	Principal Shareholders


Name	Share Holdings (in thousands of shares)		Percentage of Total Shares Issued (%)
The Minister of Finance		530,568		36.62
Japan Trustee Services Bank, Ltd. (Trust Account)		54,129		3.74
The Master Trust Bank of Japan, Ltd. (Trust Account)		38,324		2.65
Moxley and Company		32,028		2.21
Japan Trustee Services Bank, Ltd. (Trust Account 9)		17,301		1.19
SSBT OD05 Omnibus Account – Treaty Clients		14,569		1.01
State Street Bank and Trust Company 505225		12,342		0.85
NTT Employee Share-Holding Association		12,261		0.85
The Chase Manhattan Bank, N.A. London Secs Lending Omnibus Account		10,203		0.70
Government of Singapore Investment Corporation Pte Ltd Account “C”		9,174		0.63

Total		730,904		50.45

Note: The Company’s holdings of treasury stock (125,511,297 shares) are not included in the above table.

LOGO

Financial Results for the Nine Months Ended December 31, 2010

February 4, 2011

LOGO

Disclaimer Information

* “E” in this material represents that the figure is a plan or projection for operation.

** “FY” in this material indicates the fiscal year ending March 31 of the succeeding year.

*** “3Q” in this material represents the 9-month period beginning on April 1 and ending on December 31.

LOGO

Consolidated Results and Forecasts (U.S. GAAP)

FY2010/3Q Highlights and Forecasts

FY2010/3Q Highlights

Operating Revenues increased by 17.0 billion yen from FY2009/3Q.

Operating Income increased by 117.2 billion yen from FY2009/3Q, and progressed in accordance with the Revised Forecasts.

FY2010 Revised Forecasts

No change has been made to the Revised Forecasts for FY2010 (disclosed in Nov. 2010).

(Billions of yen)

FY2010% progress

FY2010/3Q Revised Forecasts compared to

FY2009/3Q (Disclosed in Nov. 2010) FY2010

Revised

Change Change

[%] Forecasts

year-on-year year-on-year

Operating

Revenues 7,542.7 +17.0 +0.2% 7,525.7 10,140.0 (41.4) 74.4%

Operating

Expenses 6,477.4 (100.2) (1.5)% 6,577.6 8, 960.0 (103.7) 72.3%

Operating 1,065.3 +117.2 +12.4% 948.1 1,180.0 +62.3 90.3%

Income

Net Income 458.3 +39.3 +9.4% 419.0 500.0 +7.7 91.7%

Net income represents net income attributable to NTT, excluding noncontrolling interests.

LOGO

Consolidated FY2010/3Q Results and Forecasts Contributing (U.S. GAAP) Factors by Segment

Regional communications business: Increase in revenues and income due to an increase in IP services and system integration revenues, and a reduction in personnel expenses.

Long distance and international communications business: Decrease in income due to a fall in voice transmission services revenues, despite the improved profitability of subsidiary companies.

Mobile communications business: Increase in income due to a decrease in expenses for purchase of goods and services and other expenses, such as equipment sales expenses.

Data communications business: Increase in revenues due to the increase in the number of consolidated subsidiaries, but decrease in income due to the effect of unprofitable transactions in the first half of the fiscal year.

Operating [year-on-year +17.0] (Billions of yen) Elimination of Revenues Other intersegment/Others

+0.7 business

+16.2 (33.2) +18.4 (6.8) +21.7

7,525.7 Regional Long distance 7,542.7 communications and international Mobile Data business communications communications communications business business business

FY2009/3Q FY2010/3Q

Operating Expenses [year-on-year (100.2)] Mobile communications Data

(33.6) business communications Other Elimination of 6,577.6 +10.8 business business intersegment/Others Regional Long distance and (89.1) +23.3 communications (34.3) +22.7 6,477.4 international business communications business

FY2009/3Q FY2010/3Q

Operating Income [year-on-year+117.2]

Regional Long distance and Mobile Data Other business Elimination of

FY2009/3Q communications international communications communications intersegment/ FY2010/3Q business communications business business Others business

948.1 +49.9 (10.1) +55.9 (4.8) +27.5 (1.1) 1,065.3

LOGO

Subsidiaries’ Results (JPN GAAP Non-Consolidated)

NTT East Financial Results

Increases in Operating Revenues and Operating Income due to an increase in revenues from IP Services that offset a decrease in revenues from Voice Transmission Services, among other factors. (Billions of yen)

No change has been made to the Revised Forecasts for FY2010 (disclosed in Nov. 2010).

(Billions of yen)

FY2010/3Q FY2010E

+16.3 Operating Revenues +13.3 Progress +0.8

+0.9 74.0%

1,928.6 Voice Transmission Services (77.1) 1,945.0 Voice Transmission Services (57.7) IP Services +78.4 1,425.3 IP Services +62.5 1,438.7 Others +15.0 Others +8.5

FY2009/3Q FY2010/3Q FY2009 FY2010E

(1.0) Operating (11.6) (0.1) Expenses

(0.8) Progress

72.7%

Personnel expenses (11.4)

1,881.0 Expenses for purchase of goods and 1,880.0 1,377.6 Personnel expenses (7.5) 1,366.0 services and other expenses +1.1 Expenses for purchase of goods and services and other expenses (2.8) Depreciation expenses and loss on disposal of assets +9.2 Depreciation expenses and loss on disposal of assets (1.2)

FY2009/3Q FY2010/3Q FY2009 FY2010E Operating

Income Progress

+24.9 112.0% +17.3

47.7 +52.3 72.7 47.6 +36.5 65.0

LOGO

Subsidiaries’ Results (JPN GAAP Non-Consolidated)

NTT West Financial Results

Operating Revenues decreased due to a decrease in Voice Transmission Services revenues that exceeded an increase in revenues from IP Services.

Operating Income increased due to a decrease in expenses for purchase of goods and services and other expenses.

No change has been made to the Revised Forecasts for FY2010 (disclosed in Nov. 2010).

(Billions of yen)

FY2010/3Q FY2010E

Operating (27.8) Revenues (1.6)

(9.7)

(0.7) Progress

74.4%

1,780.8 Voice Transmission Services (68.1) 1,753.0 IP Services +55.4 1,314.1 Voice Transmission Services (53.5) 1,304.4 Others (15.1) IP Services +42.7 Others +1.0

FY2009/3Q FY2010/3Q FY2009 FY2010E

(46.3) Operating Expenses (34.0) (2.6)

(2.6) Progress

73.1%

Personnel expenses (16.7)

Personnel expenses (12.0) 1,762.3 Expenses for purchase of goods and 1,716.0 1,287.9 1,253.9 services and other expenses (16.3) Expenses for purchase of goods Depreciation expenses and loss and services and other expenses (11.4) on disposal of assets (13.2) Depreciation expenses and loss on disposal of assets (10.5)

FY2009/3Q FY2010/3Q FY2009 FY2010E Operating

Income Progress

+24.2 136.5% +18.5

26.2 +92.6 50.4 18.4 +100.3% 37.0

LOGO

Subsidiaries’ Results (JPN GAAP Non-Consolidated)

NTT Communications Financial Results

Decreases in Operating Revenues and Operating Income due to a decrease in revenues from Voice Transmission Services, IP Services, and Solution Services, among other factors.

No change has been made to the Revised Forecasts for FY2010 (disclosed in Nov. 2010).

(Billions of yen)

FY2010/3Q FY2010E

Operating (44.2) Revenues (30.8) (4.1)

(3.9) Progress

74.0%

1,079.2 Voice Transmission Services (33.9) 1,035.0 796.4 765.6 IP Services +0.1 Others (10.4) Voice Transmission Services (21.2) IP Services (1.6) Others (8.0)

FY2009/3Q FY2010/3Q FY2009 FY2010E

(26.7) Operating (2.7) Expenses (18.2)

(2.5) Progress

73.3%

Personnel expenses +0.1

981.7 Expenses for purchase of goods and 955.0 718.6 Personnel expenses +0.1 700.4 services and other expenses (20.8) Expenses for purchase of goods Depreciation expenses and loss and services and other expenses (13.6) Depreciation expenses and loss on disposal of assets (6.0) on disposal of assets (4.7)

FY2009/3Q FY2010/3Q FY2009 FY2010E Operating

Income Progress

(12.6) 81.5% (17.5)

77.8 (16.2) 65.2 97.5 (18.0) 80.0

LOGO

Subsidiaries’ Results (JPN GAAP Consolidated)

NTT DATA Financial Results

Operating Revenues increased due to, among other things, the increase in the number of consolidated subsidiaries, but Operating Income decreased due to, among other things, the effect of unprofitable transactions in the first half of the fiscal year.

No change has been made to the Revised Forecasts for FY2010 (disclosed in Nov. 2010).

(Billions of yen)

FY2010/3Q FY2010E

Operating

Revenues +17.0

+17.2 Progress +1.5

+2.2% 70.2%

796.6 813.9 1,142.9 1,160.0

FY2009/3Q FY2010/3Q FY2009 FY2010E Operating +23.7 Expenses +2.2

+21.5 Progress

70.8%

+2.9%

746.4 768.0 1,061.2 1,085.0

FY2009/3Q FY2010/3Q FY2009 FY2010E Operating

Income Progress

(4.2) 61.3% (6.6)

(8.4) (8.2)

50.1 45.9 81.6 75.0

LOGO

Subsidiaries’ Results (U.S. GAAP Consolidated)

NTT DOCOMO Financial Results

While Operating Revenues decreased, Operating Income increased due to, among other things, a decrease in equipment sales expenses and network-related costs.

No change has been made to the Revised Forecasts for FY2010 (disclosed in Oct. 2010).

(Billions of yen)

FY2010/3Q FY2010E

Operating (75.4) Revenues (33.2) (1.8)

(1.0) Progress

76.2%

4,284.4 4,209.0 3,242.4 3,209.1

FY2009/3Q FY2010/3Q FY2009 FY2010E

(81.2) Operating (89.1) Expenses (2.4)

(3.5) Progress

72.7%

3,450.2 3,369.0 2,539.7 2,450.6

FY2009/3Q FY2010/3Q FY2009 FY2010E Operating

Income Progress

+55.8 90.3% +5.8

702.7 +7.9 758.5 834.2 +0.7 840.0

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Subsidiaries’ Results (JPN GAAP/U.S. GAAP)

Details of Difference Between Consolidated Operating Income and Total Operating Income of 5 Major Subsidiaries

(Billions of yen) FY2009/3Q +6.7

+36.7

Pension (actuarial difference, etc.): +18.0

Depreciation of engineering acilities: (33.0)

Adjustments between operating and non-operating items, including eliminations, etc.

NTT (Holding Company): 6.0

NTT URBAN DEVELOPMENT (Consolidated): 11.9

NTT COMWARE: 6.2

NTT FINANCE (Consolidated): (0.1)

Outsourcing companies (East): 4.6

Outsourcing companies (West): 0.9

Other companies: 7.0

904.7

948.1

FY2010/3Q +7.2

+65.2

Pension (actuarial difference, etc.): +6.8

Depreciation of engineering facilities: (28.9)

Adjustments between operating and non-operating items, including eliminations, etc.

992.9

1,065.3

NTT (Holding Company): 7.3

NTT URBAN DEVELOPMENT (Consolidated): 21.2

NTT COMWARE: 5.2

NTT FINANCE (Consolidated): 9.1

Outsourcing companies (East): 6.1

Outsourcing companies (West):(1.7)

Other companies: 17.7

Total operating income Total operating income of subsidiaries other than Elimination and Consolidated operating of 5 major subsidiaries the 5 major ones (excluding the effect of U.S. GAAP income dividends received by NTT (Holding Company)) (JPN GAAP) adjustments (U.S. GAAP)

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Details of Consolidated Cash Flows

Cash flows from operating activities: increased year-on-year by 89.2 billion yen (5.4%) Increase in Net Income of 49.0 billion yen.

Cash flows from investing activities: decreased year-on-year by 153.2 billion yen ((9.4)%) Increase in payment for long-term investment of 333.4 billion yen.

Decrease in payment for purchase of property, plant and equipment of 91.5 billion yen.

Cash flows from financing activities: increased year-on-year by 359.9 billion yen (90.6%) Increase in long-term debt of 277.1 billion yen.

(Billions of yen) Cash flows from operating activities (A) Cash flows from investing activities (B) (A) + (B) Cash flows from financing activities

2,000

1,652.0 1,733.4

1,000

19.7

(52.0) (37.5) (397.5)

(1,000)

FY2009/3Q FY2010/3Q

(1,632.3) (1,785.4)

(2,000)

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Transformation of Business Structure

Consolidated Revenue Composition Image

Solution & New Business, etc. IP business Legacy business

IP business

Legacy business

IP and solution & new business account for roughly tow-thirds

IP and solution & new business account for three-quarters

100%

Solution &

New Business, etc.

26% 29% 29% 29% 30% 35%

80%

52%

58% 61%

64% 65% 65% 26% 75%

60%

29%

32% 35% 35% 40% 40% 48%

20% 42% 39% 36% 35% 25%

FY2007 FY2008 FY2009 FY2010/3Q FY2010E FY2012E

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Operation Data

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Operation Data

Number of Subscribers for Broadband Access Services

Number of subscribers

(Thousands) FLET’S ADSL FLET’S Hikari 20,000 Hikari Denwa

17,728 18,153 16,632 17,092 17,376 15,973 16,325 15,627 3,004 2,802 3,253 3,136 15,000 3,381 3,546 3,695 15,351 3,834 14,724 14,240 13,839 13,251 12,779 12,278 10,000 11,793 12,242 11,641 10,142 10,648 11,104 9,078 9,604 8,571

5,000

2009.6 2009.9 2009.12 2010.3 2010.6 2010.9 2010.12 2011.3E

Optical video service (1) 783 922 1,040 1,279 1,433 1,606 1,837 2,219

Changes from the preceding quarter

(Thousands) FY2009 FY2010 FY2010 FY2010E

4-6 7-9 10-12 1- 3 4- 6 7-9 10-12 4-12 FLET’S Hikari (2)

659 485 501 472 588 401 484 1,473 2,100

Number of (3) opened connections

1,008 804 844 942 1,018 809 897 2,724 3,776

FLET’ S ADSL (157) (139) (149) (165) (129) (117) (132) (377) (579)

Hikari Denwa 561 507 526 537 506 457 537 1,499 2,100 (1) Number of Optical video services includes Hikari TV and FLET’S TEREBI.

(2) Number of FLET’S Hikari includes B FLET’S and FLET’S Hikari Next provided by NTT East and B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown, and FLET’S Hikari Next provided by NTT West.

(3) Number of opened connections excludes openings due to relocations. (4) Number of Hikari Denwa is calculated by number of thousand channels.

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Operation Data

ARPU of FLET’S Hikari

NTT East Optional Service Basic Monthly Charge

(Yen)

5,730 5,780 5,800 5,820 5,900 5,900 5,740 5,890 6,000 5,640

1,440 1,480 1,490 1,520 1,550 1,580 1,450 1,590 1,400

4,000

4,240 4,290 4,300 4,310 4,300 4,350 4,320 4,290 4,300 2,000

FY2009 FY2010

FY2009 FY2010E

4-6 7-9 10-12 1-3 4-6 7-9 10-12

NTT West

(Yen)

5,820 5,840 5,830 5,890 5,910 5,780 5,910 6,000 5,680 5,780 1,440 1,490 1,510 1,540 1,570 1,590 1,460 1,590 1,400

4,000

2,000 4,280 4,340 4,330 4,330 4,290 4,320 4,320 4,320 4,320

FY2009 FY2010

4-6 7-9 10-12 1-3 4-6 7-9 10-12 FY2009 FY2010E

Note: Number of FLET’S Hikari includes B FLET’S and FLET’S Hikari Next provided by NTT East and B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown and FLET’S Hikari Next provided by NTT West. Please see page 22 regarding the calculation of ARPU.

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Operation Data

Number of Subscribers for Fixed-Line Telephone Services

Number of subscribers (Thousands)

50,000 INS-Net

Telephone Subscriber Lines 41,094 40,194 39,307 38,330 37,447 5,545 36,604 35,719 5,386 5,241 5,092 34,780 4,955 4,830 4,717 4,499

25,000

35,549 34,807 34,066

33,238 32,493 31,774

31,002 30,281

2009.6 2009.9 2009.12 2010.3 2010.6 2010.9 2010.12 2011.3E

Changes from the preceding quarter

(Thousands) FY2009 FY2010 FY2010 FY2010E

4-6 7- 9 10-12 1-3 4-6 7-9 10-12 4-12

Telephone (1) (812) (741) (741) (828) (745) (719) (771) (2,235) (2,957) Subscriber Lines

(2)

INS- Net (179) (159) (146) (149) (137) (124) (114) (375) (593)

Total (991) (900) (887) (977) (882) (843) (885) (2,611) (3,550)

(1) Number of Telephone Subscriber Lines is the total of individual lines and central station lines (Analog Lite Plan is included).

(2) In terms of number of channels, transmission rate and line use rate (base rate), INS-Net 1500 is in all cases roughly ten times greater than INS-Net 64. For this reason, one INS-Net 1500 subscription is calculated as ten INS-Net 64 subscriptions (INS-Net 64 Lite Plan is included).

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Operation Data

ARPU of Fixed-Line Telephone Services

(Yen)

3,100 3,000 2,900

2,800

NTT East NTT West

2,700

FY2009 FY2010

FY2009 FY2010E

4-6 7-9 10-12 1-3 4-6 7-9 10-12

Aggregate Fixed- East 3,000 2,990 2,990 2,960 2,940 2,940 2,940 2,980 2,940

Line (Telephone Subscriber Lines

+ INS -Net) * West 2,850 2,860 2,860 2,820 2,810 2,810 2,810 2,850 2,800

* Aggregate Fixed-Line ARPU (Telephone Subscriber Lines + INS-Net) is the weighted average value of Telephone Subscriber Lines ARPU and INS-Net ARPU.

Please see page 22 regarding the calculation of ARPU.

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Operation Data

Number of Subscribers for Mobile Phones

Number of subscribers

(1)

Mobile Total

(Thousands) (2) FOMA

% of FOMA Subscribers

60,000 57,850 56,515 56,895 57,210 56,610 55,186 55,436 56,082 55,572 54,864 54,162 54,940 53,203 51,258 52,045 50,246

50,000

97.9%

40,000 97.1%

96.6%

95.8%

94.9%

93.9%

92.9%

30,000 91.6%

20,000

10,000

2009.6 2009.9 2009.12 2010.3 2010.6 2010.9 2010.12 2011.3E

Changes from the preceding quarter

(Thousands) FY2009 FY2010 FY2010 FY2010E

4-6 7- 9 10-12 1-3 4-6 7-9 10-12 4-12

(1)

Mobile total 263 322 250 646 432 380 315 1,128 1,770

(2)

FOMA 1,206 1,012 787 1,158 959 778 632 2,369 3,400

(1) The number of communication module service subscribers is included in total mobile phone subscribers. (2) Partial listing only

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Operation Data

ARPU of Mobile Services

(Yen)

Voice ARPU Packet ARPU

8,000

7,000

6,000 5,440 5,470

5,420 5,350

5,060 5,190 5,200 5,130 5,100 5,000

4,000 3,010 2,970 3,030 2,680 2,660 2,590 2,900

2,590 2,540 3,000

2,000

2,430 2,450 2,440 2,470 2,510 2,540 2,540 2,450 2,560 1,000

0 FY2009 FY2010

FY2009 FY2010E

4-6 7-9 10-12 1-3 4-6 7-9 10-12

Voice ARPU 3,010 2,970 3,030 2,590 2,680 2,660 2,590 2,900 2,540 Packet ARPU 2,430 2,450 2,440 2,470 2,510 2,540 2,540 2,450 2,560

Note: Communication module service subscribers and the revenues thereof are not included in the calculation of mobile phone ARPU. Please see page 22 regarding the calculation of ARPU.

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Appendices

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Appendices

FY2010/3Q Details of Financial Results (Per Item)

Operating (Billions of yen) [ year-on-year: +17.0] Revenues Voice related Other revenues services revenues IP/packet communications +55.2 (219.2) services revenues SI revenues and sales +171.3 of telecommunications equipment Fixed voice Fixed IP/packet

+9.7

7,525.7 Mobile IP/packet

Mobile voice 7,542.7 System Integration Telecommunications equipment Fixed IP/packet : +94.6 Mobile IP/packet : +76.7 Fixed voice : (134.4) Mobile voice : (84.8) System Integration : +32.9 FY2009/3Q Telecommunications equipment (Fixed-line) : (0.0) FY2010/3Q

Telecommunications equipment (Mobile) : (23.1) Operating [year-on-year: (100.2) ] Expenses

(52.0)

Depreciation (39.2) expenses and loss (10.3) +1.4 6,577.6 on disposal Expenses for Other expenses Personnel expenses of assets purchase of goods 6,477.4 and services and other expenses

FY2009/3Q FY2010/3Q

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Appendices

Details of Consolidated Balance Sheet

March 31, 2010 (Billions of yen) December 31, 2010

19,378.7 18,939.1

Liabilities Assets Liabilities Assets 9,274.9

18,939.1 9,168.2 19,378.7 +106.7+439.6 Interest-Bearing Debt Interest-Bearing 4,736.2 Debt+244.5 4,491.7 Liability for Employees’ Liability for Employees’ Retirement Benefits Retirement Benefits Depreciable Assets 1,476.9 Depreciable Assets +29.1 1,447.8 (property, plant and (property, plant and equipment) equipment)

8,431.7 8,665.6 (233.9)

Equity Equity

9,770.9 10,103.8 +332.9 Deferred Tax Deferred Tax Assets Assets (non-current) Treasury Stock Treasury Stock (non-current) 860.6 (603.1) (1,205.8) 828.9 +31.7+602.7

Note: The consolidated balance sheet as of December 31, 2010 includes the assets and liabilities of Dimension Data (assets: 237.7 billion yen; liabilities: 153.7 billion yen) that NTT acquired in FY2010/3Q, and those of Keane International (assets: 77.5 billion yen; liabilities: 57.0 billion yen) that NTT DATA acquired in FY2010/3Q.

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Appendices

Capital Investment

(Billions of yen)

2,128.9 1,987.1 2,145.1

1,960.0

1,491.8 1,383.3

164.2 1,354.9 1,263.4

127.4 91.7 Other

NTT DOCOMO (Consolidated)

87.7 NTT DATA (Consolidated) NTT (Holding Company) 500.5 NTT Communications

488.2 484.5 NTT West

468.3 NTT East

26.2 127.4

33.8 116.7 20.2 116.1

19.4 105.6

72.0

54.5 66.7

62.5 258.6 259.8 252.8 260.4

309.6 342.5 315.5

259.2

FY2007/3Q FY2008/3Q FY2009/3Q FY2010/3Q FY2007 FY2008 FY2009 FY2010E

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Appendices

Consolidated and Main Subsidiaries’ Financial Results for FY2010/3Q

(Billions of yen)

(1)

NTT NTT

NTT East NTT West NTT Com NTT DATA NTT DOCOMO Consolidated (Holding Company)

Non-Consolidated Non-Consolidated Non-Consolidated Non-Consolidated Consolidated Consolidated

(U.S. GAAP) (JPN GAAP) (JPN GAAP) (JPN GAAP) (JPN GAAP) (JPN GAAP) (U.S. GAAP)

Operating Revenues 7,542.7 347.4 1,438.7 1,304.4 765.6 813.9 3,209.1

Change year-on-year 17.0 12.2 13.3 (9.7) (30.8) 17.2 (33.2) (% change) 0.2% 3.7% 0.9% (0.7)% (3.9)% 2.2% (1.0)% Forecasts for FY2010 10,140.0 389.0 1,945.0 1,753.0 1,035.0 1,160.0 4,209.0 (% progress) 74.4% 89.3% 74.0% 74.4% 74.0% 70.2% 76.2%

Opetating Expenses 6,477.4 107.0 1,366.0 1,253.9 700.4 768.0 2,450.6

Change year-on-year (100.2) (4.3) (11.6) (34.0) (18.2) 21.5 (89.1) (% change) (1.5)% (3.9)% (0.8)% (2.6)% (2.5)% 2.9% (3.5)% Forecasts for FY2010 8,960.0 159.0 1,880.0 1,716.0 955.0 1,085.0 3,369.0 (% progress) 72.3% 67.3% 72.7% 73.1% 73.3% 70.8% 72.7%

Operating Income 1,065.3 240.4 72.7 50.4 65.2 45.9 758.5

Change year-on-year 117.2 16.5 24.9 24.2 (12.6) (4.2) 55.8 (% change) 12.4% 7.4% 52.3% 92.6% (16.2)% (8.4)% 7.9% Forecasts for FY2010 1,180.0 230.0 65.0 37.0 80.0 75.0 840.0 (% progress) 90.3% 104.5% 112.0% 136.5% 81.5% 61.3% 90.3%

Income Before (2) 1,031.5 234.9 88.6 64.1 75.7 42.9 748.6

Income Taxes

Change year-on-year 89.7 10.3 25.6 28.2 (12.8) (2.2) 47.0 (% change) 9.5% 4.6% 40.7% 78.4% (14.5)% (5.0)% 6.7% Forecasts for FY2010 1,150.0 224.0 85.0 49.0 90.0 70.0 838.0 (% progress) 89.7% 104.9% 104.3% 131.0% 84.1% 61.4% 89.3% (3) (4)

Net Income 458.3 233.6 56.2 48.3 42.3 22.8 444.0

Change year-on-year 39.3 11.7 10.3 19.4 (10.1) 1.0 24.6 (% change) 9.4% 5.3% 22.5% 67.3% (19.3)% 4.8% 5.9% Forecasts for FY2010 500.0 223.0 51.0 38.0 49.0 36.5 497.0 (% progress) 91.7% 104.8% 110.3% 127.2% 86.4% 62.7% 89.3%

(1) The number of consolidated subsidiaries is 750 and the number of companies accounted for under the equity method is 100.

(2) “Income Before Income Taxes” for NTT (Holding Company), NTT East, NTT West, NTT Communications and NTT DATA represent their recurring profits. (3) “Net Income” for NTT Consolidated represents “Net income attributable to NTT, excluding noncontrolling interests.” (4) “Net Income” for NTT DOCOMO represents “Net income attributable to NTT DOCOMO, excluding noncontrolling interests.”

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Appendices

Calculation of ARPU

Average monthly revenue per unit, or ARPU, is used to measure average monthly operating revenues attributable to designated services on a per user basis. In the case of our fixed line business, ARPU is calculated by dividing revenue items included in the operating revenues of our Regional Communications Business, that is, telephone

subscriber lines, INS-NET and FLET’S Hikari, by the number of active subscribers to the relevant services. In the case of our mobile business, ARPU is calculated by dividing revenue items included in the operating revenues from our Mobile Communications Business, such as revenues from Mobile (FOMA) services, revenues from Mobile (mova) services, and revenues from Mobile (Xi) services, which are incurred consistently each month (i.e., basic monthly charges and voice/packet communication charges), by the number of active subscribers to the relevant services. The calculation of these figures excludes revenues that are not representative of monthly average usage such as equipment sales, activation fees and universal service charges. We believe that our ARPU figures calculated in this way provide useful information regarding the monthly average usage of our subscribers. The revenue items included in the numerators of our ARPU figures are based on our financial results comprising our U.S. GAAP results of operations.

Notes :

(1) We compute the following four categories of ARPU for business conducted by each of NTT East and NTT West:

Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines): Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and INS-NET Subscriber Lines, which are included in operating revenues from Voice Transmission Services (excluding IP Services), and revenues from FLET’S ADSL and FLET’S ISDN, which are included in operating revenues from IP Services.

Telephone Subscriber Lines ARPU: Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and revenues from FLET’S ADSL.?INS-NET Subscriber Lines ARPU: Calculated based on revenues from monthly charges and call charges for INS-NET Subscriber Lines and revenues from FLET’S ISDN.

FLET’S Hikari ARPU: Calculated based on revenues from FLET’S Hikari (including FLET’S Hikari optional services), which are included in operating revenues from IP Services, revenues from monthly charges, call charges and connection device charges for Hikari Denwa, and revenues from FLET’S Hikari optional services, which are included in Supplementary Business revenues.

-FLET’S Hikari includes B FLET’S and FLET’S Hikari Next provided by NTT East, and B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown and FLET’S Hikari Next provided by NTT West.

(2) Revenues from interconnection charges are excluded from the calculation of Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), Telephone Subscriber Lines ARPU, INS-NET Subscriber Lines ARPU, and FLET’S Hikari ARPU.

(3) For purposes of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), Telephone Subscriber Lines ARPU and INS-NET Subscriber Lines ARPU, the number of subscribers is determined using the number of subscriptions for each service.

(4) In terms of number of channels, transmission rate, and line use rate (base rate), INS-Net 1500 is in all cases roughly ten times greater than INS-Net 64. For this reason, for the purpose of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines) and INS-NET Subscriber Lines ARPU, one INS-Net 1500 subscription is calculated as ten INS-Net 64 subscriptions.

(5) For purposes of calculating FLET’S Hikari ARPU, number of subscribers is determined based on number of FLET’S Hikari subscribers including B FLET’S and FLET’S Hikari Next provided by NTT East and B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown and FLET’S Hikari Next provided by NTT West.

(6) We separately compute the following three categories of ARPU for mobile business conducted by NTT DOCOMO. Mobile Aggregate ARPU (FOMA+mova+Xi) = Voice ARPU (FOMA+mova+Xi) + Packet ARPU (FOMA+mova+Xi).

-Our Voice ARPU (FOMA+mova+Xi) is based on operating revenues related to voice services, such as basic monthly charges and voice communication charges attributable to our FOMA and mova services, and our Packet ARPU (FOMA+mova+Xi) is based on operating revenues related to packet services, such as basic monthly charges and packet communication charges attributable to our FOMA, mova and Xi services.

- As Xi service does not provide voice services as of December 31, 2010, the revenues therefrom are not included in the calculations of Voice ARPU (FOMA+mova+Xi). Only the number of Xi service subscriptions are included in the calculation.

Mobile Aggregate ARPU (FOMA) = Voice ARPU (FOMA) + Packet ARPU (FOMA).

-Our Voice ARPU (FOMA) is based on operating revenues related to voice services, such as basic monthly charges and voice communication charges, and our Packet ARPU (FOMA) is based on operating revenues related to packet services, such as basic monthly charges and packet communication charges, in each case attributable to our FOMA services.

Mobile Aggregate ARPU (mova) = Voice ARPU (mova) + Packet ARPU (mova).

-Our Voice ARPU (mova) is based on operating revenues related to voice services, such as basic monthly charges and voice communication charges, and our Packet ARPU (mova) is based on operating revenues related to packet services, such as basic monthly charges and packet communication charges, in each case attributable to our mova services.

(7) Communications module service subscribers and the revenues therefrom are not included in the calculations of Mobile Aggregate ARPU.

(8) Number of active subscribers used in the ARPU calculation of NTT East and NTT West are as below. -1Q Results: Sum of number of active subscribers** for each month from Apr. to Jun.

-2Q Results: Sum of number of active subscribers** for each month from Jul. to Sept. -3Q Results: Sum of number of active subscribers** for each month from Oct. to Dec. -4Q Results: Sum of number of active subscribers** for each month from Jan. to Mar.

-Nine Months Results: Sum of Number of active subscribers** for each month from Apr. to Dec. -FY Results : Sum of number of active subscribers** for each month from Apr. to Mar.

-FY Forecast :Sum of the sum of actual Number of active subscribers at the end of each month from Apr. to Sept. and the average expected active Number of subscribers during the second half of the fiscal year ((Number of subscribers at end of Sept. + Number of expected subscribers at end of the following Mar.)/2)x6

(9) Number of active subscribers used in the ARPU calculation of NTT DOCOMO are as below. -1Q Results: Sum of number of active subscribers** for each month from Apr. to Jun.

-Nine Months Results: Sum of Number of active subscribers** for each month from Apr. to Dec. -FY Results/FY Forecast: Sum of number of active subscribers** for each month from Apr. to Mar. -FY Forecast: Sum of expected number of active subscribers** for each month from Apr. to Mar.

(10) Forecasts for the year ending March 31, 2011 have not been changed from those announced in the financial results for the six months ended September 30, 2010. **active subscribers = (number of subscribers at end of previous month + number of subscribers at end of the current month)/2

February 4, 2011

FOR IMMEDIATE RELEASE

Financial Statements for the Nine Months Ended December 31, 2010

The results of Nippon Telegraph and Telephone East Corporation (NTT East) for the nine months ended December 31, 2010 are presented in the following attachments.

(Attachments)

Non-Consolidated Comparative Balance Sheets

Non-Consolidated Comparative Statements of Income

Business Results (Non-Consolidated Operating Revenues)

Non-Consolidated Comparative Statements of Cash Flows

For inquiries, please contact:

Mr. Hiroshi Niitsu and Mr. Takayuki Arita

Accounting Section, Finance Division

Nippon Telegraph and Telephone East Corporation

Tel: +81-3-5359-3331

E-mail: kessan_info@sinoa.east.ntt.co.jp

1. Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2010			December 31, 2010			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		536,644			522,055			(14,589	)
Antenna facilities		6,068			5,504			(563	)
Terminal equipment		83,337			75,694			(7,643	)
Local line facilities		807,620			798,287			(9,333	)
Long-distance line facilities		4,764			4,051			(712	)
Engineering facilities		636,588			626,603			(9,984	)
Submarine line facilities		1,722			2,330			608
Buildings		487,827			472,619			(15,208	)
Construction in progress		29,150			27,605			(1,545	)
Other		261,842			253,494			(8,347	)
Total property, plant and equipment		2,855,567			2,788,247			(67,320	)
Intangible fixed assets		103,461			100,143			(3,318	)
Total fixed assets - telecommunications businesses		2,959,029			2,888,391			(70,638	)
Investments and other assets
Other investments and assets		271,691			272,330			638
Allowance for doubtful accounts		(1,425	)		(1,134	)		290
Total investments and other assets		270,266			271,195			929
Total fixed assets		3,229,295			3,159,586			(69,709	)

Current assets:
Cash and bank deposits		138,155			59,945			(78,209	)
Notes receivable		68			831			763
Accounts receivable, trade		293,993			320,069			26,076
Supplies		35,496			34,198			(1,297	)
Other current assets		45,982			123,607			77,624
Allowance for doubtful accounts		(2,748	)		(3,621	)		(873	)
Total current assets		510,947			535,031			24,083

TOTAL ASSETS		3,740,243			3,694,617			(45,625	)

– 1 –


	(Millions of yen)
	March 31, 2010			December 31, 2010			Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		758,743			640,556			(118,186	)
Liability for employees’ retirement benefits		280,650			279,283			(1,366	)
Reserve for unused telephone cards		15,397			15,210			(187	)
Asset retirement obligations		—			696			696
Other long-term liabilities		12,930			10,584			(2,345	)
Total long-term liabilities		1,067,721			946,331			(121,389	)
Current liabilities:
Current portion of long-term borrowings from parent company		90,595			173,116			82,521
Accounts payable, trade		95,670			58,842			(36,828	)
Accrued taxes on income		8,143			7,775	*		(367	)
Other current liabilities		366,885			374,861			7,975
Total current liabilities		561,294			614,595			53,300

TOTAL LIABILITIES		1,629,015			1,560,927			(68,088	)


NET ASSETS
Shareholders’ equity:
Common stock		335,000			335,000			—
Capital surplus		1,499,726			1,499,726			—
Earned surplus		276,505			299,234			22,729
Total shareholders’ equity		2,111,231			2,133,960			22,729
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		(4	)		(270	)		(265	)
Total unrealized gains (losses), translation adjustments, and others		(4	)		(270	)		(265	)

TOTAL NET ASSETS		2,111,227			2,133,690			22,463

TOTAL LIABILITIES AND NET ASSETS		3,740,243			3,694,617			(45,625	)


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, except for a portion of the calculation of taxes, 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 months ended December 31, 2009			Nine months ended December 31, 2010			Increase (Decrease)			Year ended March 31, 2010
Telecommunications businesses:
Operating revenues		1,340,713			1,333,150			(7,562	)		1,790,369
Operating expenses		1,294,895			1,263,374			(31,520	)		1,746,500
Operating income from telecommunications businesses		45,818			69,775			23,957			43,868

Supplementary businesses:
Operating revenues		84,681			105,630			20,948			138,283
Operating expenses		82,718			102,637			19,918			134,518
Operating income from supplementary businesses		1,962			2,992			1,030			3,765
Operating income		47,780			72,768			24,987			47,634

Non-operating revenues:
Interest income		26			101			74			46
Dividends received		3,811			1,815			(1,995	)		3,814
Lease and rental income		37,748			34,051			(3,696	)		54,519
Miscellaneous income		2,235			5,877			3,641			3,253
Total non-operating revenues		43,821			41,845			(1,976	)		61,633

Non-operating expenses:
Interest expenses		8,620			8,317			(303	)		11,451
Lease and rental expenses		15,857			15,524			(333	)		21,417
Miscellaneous expenses		4,104			2,096			(2,008	)		4,648
Total non-operating expenses		28,583			25,938			(2,645	)		37,517
Recurring profit		63,019			88,676			25,657			71,750
Special profits		9,836			—			(9,836	)		9,829
Income before income taxes		72,855			88,676			15,820			81,580
Income taxes		26,941	*		32,447	*		5,505			31,031
Net income		45,914			56,229			10,314			50,549


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, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

– 3 –


	(Millions of yen)
	Three months ended December 31, 2009			Three months ended December 31, 2010			Increase (Decrease)
Telecommunications businesses:
Operating revenues		448,613			444,739			(3,874	)
Operating expenses		434,626			420,248			(14,378	)
Operating income from telecommunications businesses		13,987			24,490			10,503

Supplementary businesses:
Operating revenues		30,410			42,305			11,895
Operating expenses		28,868			40,154			11,286
Operating income from supplementary businesses		1,541			2,150			608
Operating income		15,528			26,641			11,112

Non-operating revenues:
Interest income		10			34			23
Dividends received		15			18			2
Lease and rental income		12,286			11,251			(1,034	)
Miscellaneous income		767			1,776			1,009
Total non-operating revenues		13,079			13,081			1

Non-operating expenses:
Interest expenses		2,895			2,730			(165	)
Lease and rental expenses		5,179			4,932			(247	)
Miscellaneous expenses		1,779			233			(1,545	)
Total non-operating expenses		9,855			7,896			(1,958	)
Recurring profit		18,753			31,826			13,072
Special profits		586			—			(586	)
Income before income taxes		19,339			31,826			12,486
Income taxes		7,402	*		11,909	*		4,506
Net income		11,937			19,916			7,979


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, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

– 4 –

3. Business Results (Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2009		Nine months ended December 31, 2010		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2010
Voice transmission services revenues (excluding IP services revenues)		621,717		563,967		(57,749	)		(9.3	)		816,170
Monthly charge revenues*		427,269		387,207		(40,061	)		(9.4	)		562,912
Call rates revenues*		64,789		54,255		(10,534	)		(16.3	)		84,126
Interconnection call revenues*		77,452		75,715		(1,736	)		(2.2	)		101,115
IP services revenues		476,342		538,880		62,537			13.1			645,510
Leased circuit services revenues (excluding IP services revenues)		116,973		112,805		(4,168	)		(3.6	)		154,574
Telegram services revenues		15,459		14,275		(1,184	)		(7.7	)		20,671
Other telecommunications services revenues		110,220		103,221		(6,998	)		(6.3	)		153,442

Telecommunications total revenues		1,340,713		1,333,150		(7,562	)		(0.6	)		1,790,369

Supplementary business total revenues		84,681		105,630		20,948			24.7			138,283

Total operating revenues		1,425,394		1,438,780		13,386			0.9			1,928,653

*	Partial listing only

– 5 –


	(Millions of yen)
	Three months ended December 31, 2009		Three months ended December 31, 2010		Increase (Decrease)			Percent Increase (Decrease)
Voice transmission services revenues (excluding IP services revenues)		202,681		183,939		(18,741	)		(9.2	)
Monthly charge revenues*		139,576		126,489		(13,087	)		(9.4	)
Call rates revenues*		20,946		17,422		(3,523	)		(16.8	)
Interconnection call revenues*		25,417		24,691		(725	)		(2.9	)
IP services revenues		163,791		183,845		20,054			12.2
Leased circuit services revenues (excluding IP services revenues)		38,275		37,128		(1,147	)		(3.0	)
Telegram services revenues		5,370		4,869		(501	)		(9.3	)
Other telecommunications services revenues		38,494		34,956		(3,538	)		(9.2	)

Telecommunications total revenues		448,613		444,739		(3,874	)		(0.9	)

Supplementary business total revenues		30,410		42,305		11,895			39.1

Total operating revenues		479,023		487,044		8,020			1.7

*	Partial listing only

– 6 –

4. Non-Consolidated Comparative Statements of Cash Flows

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2009			Nine months ended December 31, 2010			Increase (Decrease)			Year ended March 31, 2010
Cash flows from operating activities:
Income before income taxes		72,855			88,676			15,820			81,580
Depreciation and amortization		309,892			303,984			(5,908	)		409,107
Loss on disposal of property, plant and equipment		14,942			17,994			3,052			22,817
Gains on sales of fixed assets		(9,836	)		—			9,836			(9,829	)
Increase (decrease) in liability for employees’ retirement benefits		5,765			(1,366	)		(7,131	)		(4,819	)
(Increase) decrease in accounts receivable		(17,570	)		(27,508	)		(9,937	)		2,204
(Increase) decrease in inventories		(3,938	)		1,761			5,699			1,918
Increase (decrease) in accounts payable and accrued expenses		(73,283	)		(72,387	)		896			(3,536	)
Increase (decrease) in accrued consumption tax		2,994			6,291			3,297			809
Other		30,081			32,406			2,324			50,044

Sub-total		331,902			349,852			17,950			550,296
Interest and dividends received		3,837			1,916			(1,921	)		3,856
Interest paid		(8,232	)		(8,192	)		39			(11,420	)
Income taxes received (paid)		(25,041	)		(23,041	)		2,000			(24,929	)

Net cash provided by (used in) operating activities		302,466			320,534			18,068			517,802
Cash flows from investing activities:
Payments for property, plant and equipment		(329,607	)		(277,460	)		52,146			(451,531	)
Proceeds from sale of property, plant and equipment		12,572			5,385			(7,186	)		12,674
Payments for purchase of investment securities		(2,215	)		(951	)		1,264			(2,215	)
Proceeds from sale of investment securities		321			2,111			1,789			353
Other		470			(34	)		(504	)		2,025

Net cash provided by (used in) investing activities		(318,458	)		(270,948	)		47,509			(438,693	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		200,000			—			(200,000	)		200,000
Payments for settlement of long-term debt		(100,879	)		(35,665	)		65,214			(105,809	)
Net increase (decrease) in short-term borrowings		(109,992	)		—			109,992			(125,000	)
Payments for settlement of lease obligations		(358	)		(2,455	)		(2,097	)		(2,706	)
Dividends paid		(33,500	)		(33,500	)		—			(33,500	)

Net cash provided by (used in) financing activities		(44,730	)		(71,620	)		(26,890	)		(67,015	)
Net increase (decrease) in cash and cash equivalents		(60,722	)		(22,034	)		38,687			12,093
Cash and cash equivalents at beginning of period		132,671			144,764			12,093			132,671

Cash and cash equivalents at end of period		71,948			122,729			50,781			144,764

– 7 –

February 4, 2011

FOR IMMEDIATE RELEASE

Financial Statements for the Nine Months Ended December 31, 2010

The results of Nippon Telegraph and Telephone West Corporation (NTT West) for the nine months ended December 31, 2010 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

For inquiries, please contact:

Toshiya Katayama or Takehisa Maegawa

Accounting Section, Finance Division

Nippon Telegraph and Telephone West Corporation

Tel: +81-6-4793-3141

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, 2010			December 31, 2010			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		521,075			518,577			(2,498	)
Antenna facilities		8,466			8,012			(453	)
Terminal equipment		20,813			21,243			429
Local line facilities		838,843			840,121			1,277
Long-distance line facilities		3,551			3,095			(456	)
Engineering facilities		586,802			580,102			(6,700	)
Submarine line facilities		2,396			2,048			(347	)
Buildings		432,441			420,187			(12,253	)
Construction in progress		32,574			30,348			(2,225	)
Other		236,439			228,121			(8,317	)
Total property, plant and equipment		2,683,403			2,651,858			(31,544	)
Intangible fixed assets		96,688			85,087			(11,601	)
Total fixed assets - telecommunications businesses		2,780,091			2,736,946			(43,145	)
Investments and other assets
Other investments and assets		205,022			206,018			996
Allowance for doubtful accounts		(516	)		(409	)		106
Total investments and other assets		204,505			205,609			1,103
Total fixed assets		2,984,597			2,942,555			(42,042	)

Current assets:
Cash and bank deposits		124,065			72,483			(51,582	)
Notes receivable		17			1,966			1,948
Accounts receivable, trade		280,946			291,821			10,874
Supplies		24,102			29,070			4,968
Other current assets		46,149			68,684			22,535
Allowance for doubtful accounts		(2,399	)		(2,981	)		(582	)
Total current assets		472,882			461,045			(11,836	)

TOTAL ASSETS		3,457,479			3,403,601			(53,878	)

– 1 –


	(Millions of yen)
	March 31, 2010		December 31, 2010			Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		966,527		901,494			(65,032	)
Liability for employees’ retirement benefits		296,001		288,143			(7,857	)
Reserve for unused telephone cards		14,560		14,383			(176	)
Asset retirement obligations		—		342			342
Other long-term liabilities		18,060		16,280			(1,779	)
Total long-term liabilities		1,295,149		1,220,645			(74,504	)
Current liabilities:
Current portion of long-term borrowings from parent company		151,170		209,799			58,628
Accounts payable, trade		84,546		55,862			(28,683	)
Accrued taxes on income		1,093		462	*		(631	)
Other current liabilities		417,879		386,004			(31,874	)
Total current liabilities		654,690		652,128			(2,561	)

TOTAL LIABILITIES		1,949,839		1,872,774			(77,065	)


NET ASSETS
Shareholders’ equity:
Common stock		312,000		312,000			—
Capital surplus		1,170,054		1,170,054			—
Earned surplus		25,529		48,843			23,314
Total shareholders’ equity		1,507,583		1,530,898			23,314
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		56		(71	)		(127	)
Total unrealized gains (losses), translation adjustments, and others		56		(71	)		(127	)

TOTAL NET ASSETS		1,507,640		1,530,826			23,186

TOTAL LIABILITIES AND NET ASSETS		3,457,479		3,403,601			(53,878	)


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, except for a portion of the calculation of taxes, 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 months ended December 31, 2009			Nine months ended December 31, 2010			Increase (Decrease)			Year ended March 31, 2010
Telecommunications businesses:
Operating revenues		1,217,695			1,199,090			(18,604	)		1,622,163
Operating expenses		1,188,073			1,148,976			(39,096	)		1,597,993
Operating income from telecommunications businesses		29,622			50,113			20,491			24,169

Supplementary businesses:
Operating revenues		96,489			105,339			8,850			158,658
Operating expenses		99,896			104,960			5,064			164,352
Operating income (losses) from supplementary businesses		(3,406	)		378			3,785			(5,693	)
Operating income		26,215			50,492			24,277			18,475

Non-operating revenues:
Interest income		6			4			(2	)		9
Dividends received		1,433			2,150			716			1,434
Lease and rental income		31,078			33,379			2,300			40,730
Miscellaneous income		3,626			2,635			(990	)		8,988
Total non-operating revenues		36,145			38,170			2,024			51,163

Non-operating expenses:
Interest expenses		13,131			12,334			(797	)		17,225
Lease and rental expenses		10,994			10,385			(608	)		15,695
Miscellaneous expenses		2,270			1,768			(501	)		6,379
Total non-operating expenses		26,396			24,488			(1,908	)		39,300
Recurring profit		35,964			64,174			28,210			30,338
Income before income taxes		35,964			64,174			28,210			30,338
Income taxes		7,083	*		15,856	*		8,772			5,494
Net income		28,880			48,318			19,437			24,844


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, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

– 3 –


	(Millions of yen)
	Three months ended December 31, 2009			Three months ended December 31, 2010			Increase (Decrease)
Telecommunications businesses:
Operating revenues		405,601			400,298			(5,302	)
Operating expenses		395,304			384,003			(11,300	)
Operating income from telecommunications businesses		10,296			16,294			5,998

Supplementary businesses:
Operating revenues		32,366			36,099			3,732
Operating expenses		34,137			36,359			2,221
Operating losses from supplementary businesses		(1,770	)		(260	)		1,510
Operating income		8,525			16,034			7,508

Non-operating revenues:
Interest income		2			0			(1	)
Dividends received		9			9			—
Lease and rental income		10,302			10,951			649
Miscellaneous income		1,308			630			(678	)
Total non-operating revenues		11,622			11,592			(30	)

Non-operating expenses:
Interest expenses		4,417			4,125			(292	)
Lease and rental expenses		3,658			3,517			(141	)
Miscellaneous expenses		853			571			(281	)
Total non-operating expenses		8,930			8,214			(715	)
Recurring profit		11,217			19,411			8,194
Income before income taxes		11,217			19,411			8,194
Income taxes		2,384	*		4,888	*		2,504
Net income		8,833			14,522			5,689


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, except for a portion of the calculation of taxes, income taxes have not been calculated on a consolidated basis in the quarterly financial statements.

– 4 –

3. Business Results (Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2009		Nine months ended December 31, 2010		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2010
Voice transmission services revenues (excluding IP services revenues)		607,624		554,037		(53,586	)		(8.8	)		798,161
Monthly charge revenues*		417,796		381,282		(36,513	)		(8.7	)		550,982
Call rates revenues*		57,902		47,602		(10,300	)		(17.8	)		74,949
Interconnection call revenues*		84,588		82,989		(1,599	)		(1.9	)		110,527
IP services revenues		388,543		431,278		42,735			11.0			525,558
Leased circuit services revenues (excluding IP services revenues)		105,485		100,088		(5,396	)		(5.1	)		140,428
Telegram services revenues		18,037		16,455		(1,582	)		(8.8	)		24,195
Other telecommunications services revenues		98,005		97,231		(774	)		(0.8	)		133,818

Telecommunications total revenues		1,217,695		1,199,090		(18,604	)		(1.5	)		1,622,163

Supplementary business total revenues		96,489		105,339		8,850			9.2			158,658

Total operating revenues		1,314,184		1,304,430		(9,754	)		(0.7	)		1,780,821

*	Partial listing only

– 5 –


	(Millions of yen)
	Three months ended December 31, 2009		Three months ended December 31, 2010		Increase (Decrease)			Percent Increase (Decrease)
Voice transmission services revenues (excluding IP services revenues)		198,090		180,734		(17,356	)		(8.8	)
Monthly charge revenues*		136,682		124,771		(11,911	)		(8.7	)
Call rates revenues*		18,576		15,156		(3,420	)		(18.4	)
Interconnection call revenues*		27,677		27,011		(665	)		(2.4	)
IP services revenues		133,520		147,068		13,547			10.1
Leased circuit services revenues (excluding IP services revenues)		34,888		32,975		(1,913	)		(5.5	)
Telegram services revenues		6,327		5,710		(617	)		(9.8	)
Other telecommunications services revenues		32,772		33,809		1,036			3.2

Telecommunications total revenues		405,601		400,298		(5,302	)		(1.3	)

Supplementary business total revenues		32,366		36,099		3,732			11.5

Total operating revenues		437,967		436,397		(1,570	)		(0.4	)

*	Partial listing only

– 6 –

4. Non-Consolidated Comparative Statements of Cash Flows

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2009			Nine months ended December 31, 2010			Increase (Decrease)			Year ended March 31, 2010
Cash flows from operating activities:
Income before income taxes		35,964			64,174			28,210			30,338
Depreciation and amortization		298,006			283,542			(14,464	)		394,191
Loss on disposal of property, plant and equipment		11,590			12,766			1,176			20,997
Increase (decrease) in liability for employees’ retirement benefits		3,487			(7,857	)		(11,344	)		(8,695	)
(Increase) decrease in accounts receivable		(14,485	)		(17,433	)		(2,947	)		3,677
(Increase) decrease in inventories		912			(6,939	)		(7,852	)		3,810
Increase (decrease) in accounts payable and accrued expenses		(96,691	)		(88,154	)		8,537			(1,339	)
Increase (decrease) in accrued consumption tax		3,572			2,328			(1,244	)		1,498
Other		22,972			7,053			(15,919	)		45,202

Sub-total		265,328			249,479			(15,849	)		489,681
Interest and dividends received		1,441			2,155			714			1,445
Interest paid		(13,177	)		(11,924	)		1,252			(17,766	)
Income taxes received (paid)		5,278			3			(5,274	)		2,578

Net cash provided by (used in) operating activities		258,870			239,714			(19,156	)		475,938

Cash flows from investing activities:
Payments for property, plant and equipment		(283,261	)		(283,277	)		(16	)		(385,574	)
Proceeds from sale of property, plant and equipment		1,635			1,652			17			2,456
Payments for purchase of investment securities		(429	)		(250	)		179			(429	)
Proceeds from sale of investment securities		425			13			(412	)		450
Other		(15	)		(891	)		(876	)		494

Net cash provided by (used in) investing activities		(281,645	)		(282,753	)		(1,108	)		(382,603	)

Cash flows from financing activities:
Proceeds from issuance of long-term debt		140,000			70,000			(70,000	)		140,000
Payments for settlement of long-term debt		(153,566	)		(76,404	)		77,162			(158,333	)
Net increase (decrease) in short-term borrowings		25,997			15,998			(9,999	)		(25,994	)
Payments for settlement of lease obligations		(8,611	)		(1,391	)		7,220			(8,951	)
Dividends paid		(13,004	)		(25,003	)		(11,999	)		(13,004	)

Net cash provided by (used in) financing activities		(9,185	)		(16,801	)		(7,615	)		(66,283	)
Net increase (decrease) in cash and cash equivalents		(31,959	)		(59,840	)		(27,880	)		27,051
Cash and cash equivalents at beginning of period		106,470			133,522			27,051			106,470

Cash and cash equivalents at end of period		74,511			73,682			(829	)		133,522

– 7 –

February 4, 2011

FOR IMMEDIATE RELEASE

NTT Com Announces Financial Results for the Nine Months Ended December 31, 2010

TOKYO, JAPAN — NTT Communications Corporation (NTT Com) announced today its financial results for the nine months ended December 31, 2010. Please see the following attachments for further details:

I.	Non-Consolidated Comparative Balance Sheets

II.	Non-Consolidated Comparative Statements of Income

III.	Business Results (Non-Consolidated Operating Revenues)

IV.	Non-Consolidated Comparative Statements of Cash Flows

# # #

About NTT Communications Corporation

NTT Communications provides a broad range of global networks, management solutions and IT services to customers worldwide. The company is renowned for reliable, high-quality security, hosting, voice, data and IP services, as well as expertise in managed networks and leadership in IPv6 transit technology. NTT Communications’ extensive infrastructure includes Arcstar™ Global IP-VPN and Global e-VLAN, as well as a Tier-1 IP backbone reaching more than 150 countries in partnership with major Internet service providers, and secure data centers in Asia, North America and Europe. NTT Communications is the wholly-owned subsidiary of Nippon Telegraph and Telephone Corporation, one of the world’s largest telecoms with listings on the Tokyo, London and New York stock exchanges. Please visit www.ntt.com/index-e.html.

For more information

(Ms.) Naomi Komoda or (Mr.) Takashi Ikai

Accounts and Finance Department, NTT Communications

Tel. +81 3 6700 4311

Email: info-af@ntt.com

I. Non-Consolidated Comparative Balance Sheets

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	March 31, 2010			December 31, 2010			Increase (Decrease)
ASSETS
Fixed assets:
Fixed assets - telecommunications businesses
Property, plant and equipment
Machinery and equipment		145,984			141,458			(4,525	)
Antenna facilities		1,756			1,699			(57	)
Terminal equipment		1,180			1,145			(35	)
Local line facilities		797			746			(51	)
Long-distance line facilities		8,728			7,832			(895	)
Engineering facilities		56,876			55,741			(1,135	)
Submarine line facilities		14,029			11,758			(2,271	)
Buildings		126,148			127,335			1,186
Construction in progress		15,428			10,658			(4,769	)
Other		85,626			85,542			(84	)
Total property, plant and equipment		456,557			443,917			(12,640	)
Intangible fixed assets		82,188			69,414			(12,774	)
Total fixed assets - telecommunications businesses		538,746			513,332			(25,414	)
Investments and other assets
Investments in subsidiaries and affiliated companies		167,860			181,930			14,069
Other investments and assets		179,436			170,373			(9,063	)
Allowance for doubtful accounts		(294	)		(280	)		13
Total investments and other assets		347,003			352,022			5,019
Total fixed assets		885,749			865,355			(20,394	)

Current assets:
Cash and bank deposits		42,673			30,916			(11,756	)
Notes receivable		59			125			65
Accounts receivable, trade		192,761			192,179			(581	)
Supplies		6,576			7,833			1,256
Other current assets		45,594			58,396			12,802
Allowance for doubtful accounts		(1,633	)		(1,733	)		(99	)
Total current assets		286,031			287,718			1,686

TOTAL ASSETS		1,171,781			1,153,073			(18,707	)

– 1 –


	(Millions of yen)
	March 31, 2010			December 31, 2010		Increase (Decrease)
LIABILITIES
Long-term liabilities:
Long-term borrowings from parent company		144,383			109,233		(35,150	)
Liability for employees’ retirement benefits		76,841			80,267		3,425
Reserve for point services		3,377			3,784		406
Reserve for unused telephone cards		6,442			6,364		(78	)
Asset retirement obligations		—			624		624
Other long-term liabilities		25,126			15,376		(9,749	)
Total long-term liabilities		256,172			215,651		(40,521	)
Current liabilities:
Current portion of long-term borrowings from parent company		44,337			77,205		32,867
Accounts payable, trade		27,289			19,007		(8,282	)
Short-term borrowings		374			211		(163	)
Accounts payable, other		181,152			150,723		(30,429	)
Accrued taxes on income		828			285		(543	)
Allowance for losses on construction		285			61		(223	)
Asset retirement obligations		—			8		8
Other current liabilities		23,957			26,811		2,853
Total current liabilities		278,227			274,316		(3,910	)

TOTAL LIABILITIES		534,400			489,967		(44,432	)


NET ASSETS
Shareholders’ equity:
Common stock		211,763			211,763		—
Capital surplus		131,615			131,615		—
Earned surplus		259,058			286,398		27,340
Total shareholders’ equity		602,437			629,777		27,340
Unrealized gains (losses), translation adjustments, and others:
Net unrealized gains (losses) on securities		35,057			33,328		(1,729	)
Deferred gains or losses on hedges		(113	)		—		113
Total unrealized gains (losses), translation adjustments, and others		34,943			33,328		(1,615	)

TOTAL NET ASSETS		637,381			663,106		25,724

TOTAL LIABILITIES AND NET ASSETS		1,171,781			1,153,073		(18,707	)

Note:

*NTT Com participates in a consolidated tax return system, which has been adopted by NTT (Holding Company) and its wholly-owned subsidiaries in Japan. However, except for a portion of the calculation of taxes, income taxes have not been calculated 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 months ended December 31, 2009			Nine months ended December 31, 2010			Increase (Decrease)			Year ended March 31, 2010
Telecommunications businesses:
Operating revenues		684,005			654,469			(29,536	)		908,160
Operating expenses		604,051			587,090			(16,961	)		807,966
Operating income from telecommunications businesses		79,953			67,379			(12,574	)		100,193

Supplementary businesses:
Operating revenues		112,429			111,135			(1,293	)		171,108
Operating expenses		114,552			113,310			(1,241	)		173,787
Operating losses from supplementary businesses		(2,123	)		(2,175	)		(52	)		(2,679	)
Operating income		77,830			65,203			(12,627	)		97,513

Non-operating revenues:
Interest income		59			47			(12	)		72
Dividends received		7,829			8,816			986			7,903
Lease and rental income		10,977			10,322			(655	)		14,430
Miscellaneous income		1,495			762			(733	)		2,679
Total non-operating revenues		20,363			19,948			(415	)		25,085

Non-operating expenses:
Interest expenses		3,401			2,273			(1,128	)		4,173
Lease and rental expenses		6,072			6,096			23			8,761
Miscellaneous expenses		180			1,055			875			1,138
Total non-operating expenses		9,654			9,426			(228	)		14,072
Recurring profit		88,539			75,725			(12,813	)		108,526
Special losses		—			2,402			2,402			—
Income before income taxes		88,539			73,323			(15,216	)		108,526
Income taxes		36,058			30,982			(5,076	)		47,831
Net income		52,480			42,340			(10,139	)		60,695

Note:

– 3 –


	(Millions of yen)
	Three months ended December 31, 2009			Three months ended December 31, 2010			Increase (Decrease)
Telecommunications businesses:
Operating revenues		227,654			217,399			(10,254	)
Operating expenses		201,236			192,547			(8,688	)
Operating income from telecommunications businesses		26,417			24,851			(1,566	)

Supplementary businesses:
Operating revenues		36,205			39,202			2,997
Operating expenses		37,635			40,469			2,834
Operating losses from supplementary businesses		(1,430	)		(1,267	)		163
Operating income		24,987			23,584			(1,403	)

Non-operating revenues:
Interest income		10			15			4
Dividends received		721			718			(2	)
Lease and rental income		3,658			3,374			(283	)
Miscellaneous income		374			324			(49	)
Total non-operating revenues		4,765			4,433			(331	)

Non-operating expenses:
Interest expenses		1,008			756			(252	)
Lease and rental expenses		2,101			2,038			(63	)
Miscellaneous expenses		71			171			100
Total non-operating expenses		3,181			2,965			(215	)
Recurring profit		26,572			25,052			(1,519	)
Special losses		—			(859	)		(859	)
Income before income taxes		26,572			25,911			(660	)
Income taxes		10,600			9,896			(704	)
Net income		15,971			16,015			44

Note:

– 4 –

III. Business Results (Non-Consolidated Operating Revenues)

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2009		Nine months ended December 31, 2010		Increase (Decrease)			Percent Increase (Decrease)			Year ended March 31, 2010
Voice transmission services revenues (excluding IP services revenues)		288,565		267,347		(21,217	)		(7.4	)		378,944
IP services revenues		273,364		271,762		(1,602	)		(0.6	)		364,871
Open computer network services revenues*		122,137		122,049		(88	)		(0.1	)		163,121
IP-Virtual private network services revenues*		59,030		56,085		(2,945	)		(5.0	)		78,092
Wide-Area Ethernet services revenues*		43,434		41,684		(1,750	)		(4.0	)		57,678
Data communications revenues (excluding IP services revenues)		90,878		83,952		(6,925	)		(7.6	)		120,154
Leased circuit services revenues*		66,639		63,741		(2,897	)		(4.3	)		88,571
Solution services revenues		123,674		122,924		(750	)		(0.6	)		186,539
Others		19,952		19,618		(333	)		(1.7	)		28,759

Total operating revenues		796,435		765,604		(30,830	)		(3.9	)		1,079,268

*	Partial listing only

– 5 –


	(Millions of yen)
	Three months ended December 31, 2009		Three months ended December 31, 2010		Increase (Decrease)			Percent Increase (Decrease)

Voice transmission services revenues (excluding IP services revenues)		96,155		88,484		(7,670	)		(8.0	)
IP services revenues		90,993		90,696		(297	)		(0.3	)
Open computer network services revenues*		40,779		40,651		(128	)		(0.3	)
IP-Virtual private network services revenues*		19,355		18,576		(779	)		(4.0	)
Wide-Area Ethernet services revenues*		14,441		13,657		(784	)		(5.4	)
Data communications revenues (excluding IP services revenues)		29,704		27,817		(1,887	)		(6.4	)
Leased circuit services revenues*		21,963		21,327		(636	)		(2.9	)
Solution services revenues		40,274		43,172		2,898			7.2
Others		6,732		6,431		(301	)		(4.5	)

Total operating revenues		263,859		256,602		(7,257	)		(2.8	)

*	Partial listing only

– 6 –

V. Non-Consolidated Comparative Statements of Cash Flows

(Based on accounting principles generally accepted in Japan)


	(Millions of yen)
	Nine months ended December 31, 2009			Nine months ended December 31, 2010			Increase (Decrease)			Year ended March 31, 2010
Cash flows from operating activities:
Income before income taxes		88,539			73,323			(15,216	)		108,526
Depreciation and amortization		88,224			85,450			(2,774	)		118,448
Loss on disposal of property, plant and equipment		2,963			2,443			(519	)		6,507
Gains on sales of fixed assets		(111	)		(9	)		101			(247	)
Increase (decrease) in allowance for doubtful accounts		266			85			(180	)		317
Increase (decrease) in liability for employees’ retirement benefits		4,311			3,425			(886	)		3,917
(Increase) decrease in accounts receivable		(2,530	)		(968	)		1,561			591
(Increase) decrease in inventories		(104	)		(3,862	)		(3,758	)		762
Increase (decrease) in accounts payable and accrued expenses		(4,936	)		(9,431	)		(4,495	)		(653	)
Increase (decrease) in accrued consumption tax		3,231			63			(3,167	)		2,052
Other		(8,606	)		6,570			15,176			(4,100	)

Sub-total		171,248			157,089			(14,159	)		236,122
Interest and dividends received		7,889			8,862			972			7,975
Interest paid		(3,568	)		(1,809	)		1,758			(4,822	)
Income taxes received (paid)		14,563			(34,214	)		(48,777	)		14,544

Net cash provided by (used in) operating activities		190,133			129,928			(60,205	)		253,818

Cash flows from investing activities:
Payments for property, plant and equipment		(90,930	)		(82,826	)		8,103			(112,670	)
Proceeds from sale of property, plant and equipment		865			366			(498	)		1,004
Payments for purchase of investment securities		(18,896	)		(32,437	)		(13,541	)		(27,177	)
Proceeds from sale of investment securities		2			10,246			10,243			15
Proceeds from long-term loans receivable		112			—			(112	)		112
Payments for short-term loans		—			(430	)		(430	)		—
Other		(2,532	)		(2,675	)		(143	)		(3,276	)

Net cash provided by (used in) investing activities		(111,378	)		(107,757	)		3,620			(141,992	)

Cash flows from financing activities:
Payments for settlement of long-term debt		(120,065	)		(2,282	)		117,783			(122,121	)
Net increase (decrease) in short-term borrowings		396			(159	)		(555	)		374
Payments for settlement of lease obligations		(5,119	)		(3,413	)		1,705			(7,388	)
Dividends paid		(15,000	)		(15,000	)		—			(15,000	)

Net cash provided by (used in) financing activities		(139,789	)		(20,855	)		118,933			(144,135	)

Effect of exchange rate changes on cash and cash equivalents		(2	)		(397	)		(395	)		(14	)
Net increase (decrease) in cash and cash equivalents		(61,037	)		917			61,954			(32,322	)
Cash and cash equivalents at beginning of period		93,077			60,755			(32,322	)		93,077

Cash and cash equivalents at end of period		32,040			61,672			29,631			60,755

– 7 –

February 4, 2011

Nippon Telegraph and Telephone Corporation

Supplementary Data for

the Nine Months Ended December 31, 2010

Contents


	pages

1. Number of Subscribers		1

2. Number of Employees		2

3. Capital Investment		2

4. Financial Results and Projections		3~5

5. Average Monthly Revenue per Unit (ARPU)		6

6. Interest-Bearing Liabilities (Consolidated)		7

7. Indices (Consolidated)		7

(Financial Results for the Nine Months Ended December 31, 2010)		8~10

The projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained 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 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.

1.	Number of Subscribers


	(in thousands except for Public Telephones)
	A As of Mar. 31, 2010		B As of Jun. 30, 2010		C As of Sept. 30, 2010		D As of Dec. 31, 2010								E As of Mar. 31, 2011 (Forecast)
							F										G
									*Change*			*Progress*					*Change*
									*D-A*			*F/G*					*E-A*
Telephone Subscriber Lines		33,238		32,493		31,774		31,002		(2,235	)		75.6	%		30,281		(2,957	)
NTT East		16,394		16,022		15,662		15,270		(1,124	)		74.4	%		14,884		(1,510	)
NTT West		16,844		16,470		16,112		15,732		(1,112	)		76.8	%		15,397		(1,447	)
INS-Net		5,092		4,955		4,830		4,717		(375	)		63.3	%		4,499		(593	)
NTT East		2,646		2,573		2,506		2,444		(202	)		59.5	%		2,306		(340	)
NTT West		2,446		2,382		2,325		2,273		(173	)		68.4	%		2,192		(253	)
INS-Net 64		4,648		4,523		4,408		4,304		(344	)		62.9	%		4,102		(546	)
NTT East		2,361		2,295		2,234		2,178		(183	)		58.7	%		2,050		(311	)
NTT West		2,287		2,227		2,174		2,126		(161	)		68.3	%		2,051		(235	)
INS-Net 1500		44		43		42		41		(3	)		67.9	%		40		(5	)
NTT East		29		28		27		27		(2	)		67.0	%		26		(3	)
NTT West		16		15		15		15		(1	)		69.3	%		14		(2	)
Telephone Subscriber Lines + INS-Net		38,330		37,447		36,604		35,719		(2,611	)		73.5	%		34,780		(3,550	)
NTT East		19,040		18,595		18,168		17,714		(1,326	)		71.7	%		17,190		(1,850	)
NTT West		19,290		18,852		18,436		18,005		(1,285	)		75.6	%		17,590		(1,700	)
Public Telephones		283,161		276,013		265,519		257,805		(25,356	)		97.5	%		257,161		(26,000	)
NTT East		137,992		134,737		128,641		124,380		(13,612	)		136.1	%		127,992		(10,000	)
NTT West		145,169		141,276		136,878		133,425		(11,744	)		73.4	%		129,169		(16,000	)
FLET’S ISDN		241		227		216		205		(36	)		63.7	%		185		(56	)
NTT East		119		112		107		101		(18	)		56.0	%		86		(33	)
NTT West		122		115		110		104		(17	)		74.5	%		98		(23	)
FLET’S ADSL		3,381		3,253		3,136		3,004		(377	)		65.1	%		2,802		(579	)
NTT East		1,700		1,628		1,565		1,492		(208	)		59.5	%		1,350		(350	)
NTT West		1,681		1,625		1,571		1,512		(169	)		73.7	%		1,452		(229	)
FLET’S Hikari		13,251		13,839		14,240		14,724		1,473			70.1	%		15,351		2,100
NTT East		7,533		7,873		8,088		8,356		823			65.8	%		8,783		1,250
NTT West		5,718		5,967		6,152		6,368		650			76.5	%		6,568		850
FLET’S Hikari Next*		2,210		2,817		3,362		4,005		1,795			64.1	%		5,010		2,800
NTT East		1,642		2,017		2,322		2,676		1,034			54.4	%		3,542		1,900
NTT West		568		800		1,040		1,329		761			84.5	%		1,468		900
Hikari Denwa		10,142		10,648		11,104		11,641		1,499			71.4	%		12,242		2,100
NTT East		5,420		5,691		5,931		6,221		801			66.7	%		6,620		1,200
NTT West		4,722		4,957		5,174		5,420		699			77.6	%		5,622		900
Conventional Leased Circuit Services		297		292		289		284		(13	)		57.3	%		275		(22	)
NTT East		148		145		143		141		(7	)		49.3	%		134		(14	)
NTT West		149		147		146		144		(6	)		71.0	%		141		(8	)
High Speed Digital Services		188		183		180		175		(13	)		73.6	%		171		(17	)
NTT East		100		97		96		94		(6	)		56.0	%		89		(11	)
NTT West		88		86		84		82		(7	)		104.4	%		82		(6	)
NTT Group Major ISPs		11,280		11,424		11,496		11,626		345			66.5	%		11,800		520
OCN*		7,892		8,035		8,096		8,208		316			77.5	%		8,300		408
Plala*		3,050		3,053		3,067		3,087		37			74.3	%		3,100		50
Video Services		—		—		—		—		—			—			—		—
Hikari TV		1,009		1,098		1,204		1,331		322			82.5	%		1,400		391
FLET’S TEREBI Transmission Services		270		335		403		505		235			42.8	%		819		549
NTT East		240		295		348		422		181			37.8	%		720		480
NTT West		30		40		54		83		53			77.3	%		99		69
Mobile		56,082		56,515		56,895		57,210		1,128			63.7	%		57,850		1,770
FOMA*		53,203		54,162		54,940		55,572		2,369			69.5	%		56,610		3,410
Xi*		—		—		—		1		—			—			—		—
i-mode		48,992		49,061		48,914		48,530		(462	)		385.0	%		48,870		(120	)
FOMA*		47,330		47,758		47,876		47,686		356			40.5	%		48,210		880
sp-mode		—		—		270		936		—			—			—		—


Notes :	(1)	Number of Telephone Subscriber Lines is the total of individual lines and central station lines (Subscriber Telephone Light Plan is included).

	(2)	In terms of number of channels, transmission rate, and line use rate (base rate), INS-Net 1500 is in all cases roughly ten times greater than INS-Net 64. For this reason, one INS-Net 1500 subscription is calculated as ten INS-Net 64 subscriptions (INS-Net 64 Lite Plan is included).

	(3)	Number of FLET’S Hikari subscribers includes subscribers to B FLET’S and FLET’S Hikari Next provided by NTT East, and subscribers to B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown and FLET’S Hikari Next provided by NTT West.

	(4)	NTT Group Major ISPs includes WAKWAK and InfoSphere, in addition to OCN and Plala.

	(5)	Number of communication module service subscribers is included in the number of mobile subscribers. Communication module service subscribers were 1,878,000 as of Dec. 31, 2010, and are forecasted to be 1,920,000 as of Mar. 31, 2011.

	(6)	Changes in number of Mobile (FOMA* is included) and i-mode subscribers as of Mar. 31, 2011 (Forecast) are forecasted net-increases.

	(7)	Effective Mar. 3, 2008, FOMA services subscriptions became mandatory for subscription to “2in1” services. Such FOMA services subscriptions to “2in1” services are included in the above numbers of Mobile phone service subscriptions and FOMA* service subscriptions.

	(8)	Forecasts for the year ending March 31, 2011 have not been changed from those announced in the financial results for the six months ended September 30, 2010.

* Partial listing only

- 1 -

2.	Number of Employees


	(Person)
	A As of Dec. 31, 2009		B As of Dec. 31, 2010					C As of Mar. 31, 2011 (Forecast) ⁽¹⁾⁽³⁾
					*Change*
					*B-A*
NTT Consolidated		206,450		231,300		24,850			206,750
Core Group Companies
NTT (Holding Company)		2,950		2,950		0			2,900
NTT East		6,100		6,050		(50	)		5,750
NTT West		5,800		5,700		(100	)		5,550
NTT Communications		8,450		8,350		(100	)		8,250
NTT DATA (Consolidated)		33,950		50,600		16,650			50,550
NTT DOCOMO (Consolidated)		22,950		23,400		450			23,050
(Reference) Outsourcing Companies ⁽²⁾
East Outsourcing Companies		40,350		38,350		(2,000	)		35,400
West Outsourcing Companies		43,650		40,550		(3,100	)		37,250


Notes :	(1	)	Figures do not include the number of employees who retired or will retire at the end of a fiscal year and who were rehired or will be rehired at the beginning of the following fiscal year.

	(2	)	Figures for East Outsourcing Companies include the consolidated prefectural outsourcing companies (NTT EAST-TOKYO and others), NTT-ME and NTT EAST SOLUTIONS, while figures for West Outsourcing Companies include the consolidated regional outsourcing companies (NTT WEST-KANSAI and others), NTT MARKETING ACT, NTT NEOMEIT and NTT WEST-HOMETECHNO. Figures for those companies include the number of employees who retired or will retire at the end of a fiscal year and who were rehired or will be rehired at the beginning of the following fiscal year, as described below:

			— As of Mar. 31, 2011 (Forecast): (East Outsourcing Companies: 1,300 employees; West Outsourcing Companies: 1,600 employees)

	(3	)	Forecasts for the year ending March 31, 2011 have not been changed from those announced in the financial results for the six months ended September 30, 2010.

3.	Capital Investment


	(Billions of yen)
	A Nine Months Ended Dec. 31, 2009		B Nine Months Ended Dec. 31, 2010								C Year Ending Mar. 31, 2011 (Forecast)
					*Change*			*Progress*
					*B-A*			*B/C*
NTT Consolidated		1,354.9		1,263.4		(91.5	)		64.5	%		1,960.0
Core Group Companies
NTT (Holding Company)		20.2		19.4		(0.8	)		52.6	%		37.0
NTT East		315.5		259.2		(56.2	)		60.3	%		430.0
NTT West		259.8		260.4		0.6			68.5	%		380.0
NTT Communications		66.7		62.5		(4.2	)		53.0	%		118.0
NTT DATA (Consolidated)		116.1		105.6		(10.5	)		70.4	%		150.0
NTT DOCOMO (Consolidated)		484.5		468.3		(16.2	)		69.4	%		675.0


Note :						Forecasts for the year ending March 31, 2011 have not been changed from those announced in the financial results for the six months ended September 30, 2010.

- 2 -

4.	Financial Results and Projections (NTT Consolidated, NTT (Holding Company))


	(Billions of yen)
	A Nine Months Ended Dec. 31, 2009		B Nine Months Ended Dec. 31, 2010								C Year Ending Mar. 31, 2011 (Forecast)
					*Change*			*Progress*
					*B-A*			*B/C*
NTT Consolidated (US GAAP)
Operating Revenues		7,525.7		7,542.7		17.0			74.4	%		10,140.0
Fixed Voice Related Services		1,780.9		1,646.5		(134.4	)		—			—
Mobile Voice Related Services		1,642.4		1,557.6		(84.8	)		—			—
IP/Packet Communications Services		2,316.4		2,487.7		171.3			—			—
Sales of Telecommunications Equipment		447.3		424.2		(23.1	)		—			—
System Integration		849.9		882.7		32.9			—			—
Other		488.8		544.0		55.2			—			—
Operating Expenses		6,577.6		6,477.4		(100.2	)		72.3	%		8,960.0
Cost of Services (exclusive of items shown separately below)		1,777.6		1,788.8		11.2			—			—
Cost of Equipment Sold (exclusive of items shown separately below)		578.5		553.2		(25.3	)		—			—
Cost of System Integration (exclusive of items shown separately below)		542.1		567.0		24.9			—			—
Depreciation and Amortization		1,500.5		1,457.7		(42.8	)		—			—
Impairment Loss		0.5		0.7		0.2			—			—
Selling, General and Administrative Expenses		2,178.3		2,110.0		(68.4	)		—			—
Write-Down of Goodwill and Other Intangible Assets		—		—		—			—			—
Operating Income		948.1		1,065.3		117.2			90.3	%		1,180.0
Income Before Income Taxes		941.9		1,031.5		89.7			89.7	%		1,150.0
Net Income Attributable to NTT		419.0		458.3		39.3			91.7	%		500.0
(Ref.) Details of “Cost of Services”, “Cost of Equipment Sold”, “Cost of System Integration” and “Selling, General and Administrative Expenses”
Personnel		1,495.4		1,485.0		(10.3	)		—			—
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		3,312.9		3,273.7		(39.2	)		—			—
Loss on Disposal of Property, Plant and Equipment		100.6		91.4		(9.2	)		—			—
Other Expenses		167.6		168.8		1.2			—			—
Total		5,076.5		5,018.9		(57.6	)		—			—
NTT (Holding Company) (JPN GAAP)
Operating Revenues		335.2		347.4		12.2			89.3	%		389.0
Operating Expenses		111.3		107.0		(4.3	)		67.3	%		159.0
Operating Income		223.8		240.4		16.5			104.5	%		230.0
Non-Operating Revenues		36.1		33.7		(2.4	)		74.9	%		45.0
Non-Operating Expenses		35.3		39.1		3.7			76.7	%		51.0
Recurring Profit		224.6		234.9		10.3			104.9	%		224.0
Net Income		221.8		233.6		11.7			104.8	%		223.0


Note:						Forecasts for the year ending March 31, 2011 have not been changed from those announced in the financial results for the six months ended September 30, 2010.

- 3 -

4.	Financial Results and Projections (NTT East, NTT West)


	(Billions of yen)
	A Nine Months Ended Dec. 31, 2009		B Nine Months Ended Dec. 31, 2010								C Year Ending Mar. 31, 2011 (Forecast) ⁽³⁾
					*Change*			*Progress*
					*B-A*			*B/C*
NTT East (JPN GAAP)
Operating Revenues		1,425.3		1,438.7		13.3			74.0	%		1,945.0
Voice Transmission Services (excluding IP) ⁽¹⁾		621.7		563.9		(57.7	)		76.3	%		739.0
IP Services ⁽²⁾		476.3		538.8		62.5			74.4	%		724.0
Leased Circuit (excluding IP)		116.9		112.8		(4.1	)		76.7	%		147.0
Telegraph		15.4		14.2		(1.1	)		79.3	%		18.0
Other		110.2		103.2		(6.9	)		65.9	%		317.0
Supplementary Business		84.6		105.6		20.9
Operating Expenses		1,377.6		1,366.0		(11.6	)		72.7	%		1,880.0
Personnel		95.0		87.4		(7.5	)		75.4	%		116.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		896.4		893.6		(2.8	)		72.2	%		1,238.0
Depreciation and Amortization		303.9		298.4		(5.5	)		74.4	%		401.0
Loss on Disposal of Property, Plant and Equipment		27.0		30.8		3.7			60.5	%		51.0
Taxes and Public Dues		55.1		55.5		0.4			75.1	%		74.0
Operating Income		47.7		72.7		24.9			112.0	%		65.0
Non-Operating Revenues		43.8		41.8		(1.9	)		74.7	%		56.0
Non-Operating Expenses		28.5		25.9		(2.6	)		72.1	%		36.0
Recurring Profit		63.0		88.6		25.6			104.3	%		85.0
Net Income		45.9		56.2		10.3			110.3	%		51.0
NTT West (JPN GAAP)
Operating Revenues		1,314.1		1,304.4		(9.7	)		74.4	%		1,753.0
Voice Transmission Services (excluding IP) ⁽¹⁾		607.6		554.0		(53.5	)		75.9	%		730.0
IP Services ⁽²⁾		388.5		431.2		42.7			74.2	%		581.0
Leased Circuit (excluding IP)		105.4		100.0		(5.3	)		75.8	%		132.0
Telegraph		18.0		16.4		(1.5	)		78.4	%		21.0
Other		98.0		97.2		(0.7	)		70.1	%		289.0
Supplementary Business		96.4		105.3		8.8
Operating Expenses		1,287.9		1,253.9		(34.0	)		73.1	%		1,716.0
Personnel		94.0		82.0		(12.0	)		74.6	%		110.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		824.2		812.7		(11.4	)		72.5	%		1,121.0
Depreciation and Amortization		292.6		278.9		(13.6	)		74.6	%		374.0
Loss on Disposal of Property, Plant and Equipment		25.5		29.1		3.6			67.8	%		43.0
Taxes and Public Dues		51.4		50.9		(0.5	)		75.0	%		68.0
Operating Income		26.2		50.4		24.2			136.5	%		37.0
Non-Operating Revenues		36.1		38.1		2.0			79.5	%		48.0
Non-Operating Expenses		26.3		24.4		(1.9	)		68.0	%		36.0
Recurring Profit		35.9		64.1		28.2			131.0	%		49.0
Net Income		28.8		48.3		19.4			127.2	%		38.0


Notes:	(1)	Operating Revenues from Voice Transmission Services (excluding IP) of NTT East and NTT West for the nine months ended Dec. 31, 2010 include monthly charges, call charges and interconnection charges of 387.2 billion yen, 54.2 billion yen and 75.7 billion yen for NTT East, and 381.2 billion yen, 47.6 billion yen and 82.9 billion yen for NTT West, respectively.

	(2)	Operating Revenues from IP Services of NTT East and NTT West for the nine months ended Dec. 31, 2010 include FLET’S Hikari and Hikari Denwa charges (including monthly charges, call charges and connection device charges) of 314.3 billion yen and 96.5 billion yen for NTT East, and 238.1 billion yen and 78.9 billion yen for NTT West, respectively.

		— FLET’S Hikari includes B FLET’S and FLET’S Hikari Next provided by NTT East, and B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown and FLET’S Hikari Next provided by NTT West.

	(3)	Forecasts for the year ending March 31, 2011 have not been changed from those announced in the financial results for the six months ended September 30, 2010.

- 4 -

4.	Financial Results and Projections (NTT Communications, NTT DATA, NTT DOCOMO)


	(Billions of yen)
	A Nine Months Ended Dec. 31, 2009			B Nine Months Ended Dec. 31, 2010									C Year Ending Mar. 31, 2011 (Forecast) ⁽³⁾
							*Change*			*Progress*
							*B-A*			*B/C*
NTT Communications (JPN GAAP)
Operating Revenues		796.4			765.6			(30.8	)		74.0	%		1,035.0
Voice Transmission Services (excluding IP) ⁽¹⁾		288.5			267.3			(21.2	)		77.5	%		345.0
IP Services ⁽¹⁾		273.3			271.7			(1.6	)		74.5	%		365.0
Data Transmission Services (excluding IP) ⁽¹⁾		90.8			83.9			(6.9	)		77.0	%		109.0
Leased Circuit* ⁽¹⁾		66.6			63.7			(2.8	)		75.0	%		85.0
Solutions Business		123.6			122.9			(0.7	)		64.7	%		190.0
Other		19.9			19.6			(0.3	)		75.5	%		26.0
Operating Expenses		718.6			700.4			(18.2	)		73.3	%		955.0
Personnel		70.5			70.6			0.1			74.4	%		95.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		339.1			326.3			(12.7	)		73.1	%		728.0
Communication Network Charges		206.8			205.9			(0.8	)
Depreciation and Amortization		88.2			83.7			(4.4	)		75.5	%		111.0
Loss on Disposal of Property, Plant and Equipment		5.0			4.7			(0.2	)		53.0	%		9.0
Taxes and Public Dues		8.8			8.8			(0.0	)		73.7	%		12.0
Operating Income		77.8			65.2			(12.6	)		81.5	%		80.0
Non-Operating Revenues		20.3			19.9			(0.4	)		95.0	%		21.0
Non-Operating Expenses		9.6			9.4			(0.2	)		85.7	%		11.0
Recurring Profit		88.5			75.7			(12.8	)		84.1	%		90.0
Net Income		52.4			42.3			(10.1	)		86.4	%		49.0
NTT DATA Consolidated (JPN GAAP)
Operating Revenues ⁽²⁾		796.6			813.9			17.2			70.2	%		1,160.0
Public & Financial IT Services		529.7			532.2			2.4			69.4	%		767.0
Global IT Services		241.6			250.2			8.5			68.9	%		363.0
Solutions & Technologies		110.4			119.4			9.0			69.5	%		172.0
Elimination or Corporate		(85.2	)		(88.0	)		(2.7	)		62.0	%		(142.0	)
Cost of Sales		605.9			623.6			17.7			70.5	%		884.0
Gross Profit		190.7			190.3			(0.4	)		69.0	%		276.0
Selling and General Expense		140.5			144.3			3.8			71.8	%		201.0
Operating Income		50.1			45.9			(4.2	)		61.3	%		75.0
Non-Operating Income (Loss)		(4.9	)		(2.9	)		1.9			59.7	%		(5.0	)
Recurring Profit		45.2			42.9			(2.2	)		61.4	%		70.0
Net Income		21.8			22.8			1.0			62.7	%		36.5
NTT DOCOMO Consolidated (US GAAP)
Operating Revenues		3,242.4			3,209.1			(33.2	)		76.2	%		4,209.0
Wireless Services		2,859.5			2,850.1			(9.4	)		76.1	%		3,745.0
Mobile Services		2,662.7			2,598.8			(63.9	)		76.3	%		3,405.0
Voice		1,477.5			1,337.0			(140.5	)		78.7	%		1,699.0
Packet Communications		1,185.2			1,261.8			76.6			74.0	%		1,706.0
Other revenues		196.8			251.3			54.6			73.9	%		340.0
Equipment sales		382.9			359.0			(23.9	)		77.4	%		464.0
Operating Expenses		2,539.7			2,450.6			(89.1	)		72.7	%		3,369.0
Personnel		191.5			195.7			4.2			73.8	%		265.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		1,542.8			1,495.0			(47.9	)		72.2	%		2,071.0
Depreciation and Amortization		511.5			496.1			(15.4	)		72.6	%		683.0
Loss on Disposal of Property, Plant and Equipment		30.4			23.1			(7.3	)		52.6	%		44.0
Communication Network Charges		234.3			211.6			(22.6	)		79.3	%		267.0
Taxes and Public Dues		29.2			29.1			(0.1	)		74.6	%		39.0
Operating Income		702.7			758.5			55.8			90.3	%		840.0
Non-Operating Income (Loss)		(1.0	)		(9.9	)		(8.9	)		493.2	%		(2.0	)
Income Before Income Taxes		701.7			748.6			47.0			89.3	%		838.0
Net Income Attributable to NTT DOCOMO		419.3			444.0			24.6			89.3	%		497.0


Notes:	(1)	Operating Revenues from Voice Transmission Services (excluding IP) of NTT Communications for the nine months ended Dec. 31, 2010 include revenues from telephone subscriber lines (142.1 billion yen). Operating Revenues from IP Services include revenues from OCN (122.0 billion yen), IP-VPN (56.0 billion yen) and Wide-area Ethernet (41.6 billion yen). Operating Revenues from Data Transmission Services (excluding IP) include Frame Relay / Cell Relay (3.2 billion yen), and Operating Revenues from Leased Circuit include conventional leased circuits (3.0 billion yen) and high-speed digital (27.6 billion yen).

	(2)	Segmentation of operating revenues for NTT DATA has been revised from the fiscal year ending Mar. 31, 2011. As for the nine months ended Dec. 31, 2010, operating revenues according to the revised segmentation are shown for reference.

	(3)	Forecasts for the year ending March 31, 2011 have not been changed from those announced in the financial results for the six months ended September 30, 2010.

* Partial listing only

- 5 -

5.	Average Monthly Revenue per Unit (ARPU)

In the case of our mobile business, ARPU is calculated by dividing revenue items included in the operating revenues from our Mobile Communications Business, such as revenues from Mobile (FOMA) services, revenues from Mobile (mova) services and revenues from Mobile (Xi) services which are incurred consistently each month (i.e., basic monthly charges and voice/packet communication charges), by the number of active subscribers to the relevant services. The calculation of these figures excludes revenues that are not representative of monthly average usage such as equipment sales, activation fees and universal service charges.

We believe that our ARPU figures calculated in this way provide useful information regarding the monthly average usage of our subscribers. The revenue items included in the numerators of our ARPU figures are based on our financial results comprising our U.S. GAAP results of operations.


	(Yen)
	Three Months Ended Jun. 30, 2010 (From Apr. to Jun., 2010)		Three Months Ended Sept. 30, 2010 (From Jul. to Sept., 2010)		Three Months Ended Dec. 31, 2010 (From Oct. to Dec., 2010)		Nine Months Ended Dec. 31, 2009 (From Apr. to Dec., 2009)		Nine Months Ended Dec. 31, 2010 (From Apr. to Dec., 2010)		Year Ended Mar. 31, 2010		Year Ending Mar. 31, 2011 (Forecast)
NTT East
Aggregate Fixed Line ARPU (Telephone Subscriber Line + INS-NET Subscriber Line)		2,940		2,940		2,940		2,990		2,940		2,980		2,940
Telephone Subscriber Lines ARPU		2,580		2,580		2,580		2,620		2,580		2,620		2,580
INS-NET Subscriber Lines ARPU		5,180		5,190		5,180		5,250		5,180		5,240		5,170
FLET’S Hikari ARPU		5,820		5,900		5,900		5,720		5,870		5,740		5,890
NTT West
Aggregate Fixed Line ARPU (Telephone Subscriber Line + INS-NET Subscriber Line)		2,810		2,810		2,810		2,850		2,810		2,850		2,800
Telephone Subscriber Lines ARPU		2,490		2,500		2,500		2,530		2,490		2,530		2,490
INS-NET Subscriber Lines ARPU		4,980		4,980		4,980		5,050		4,980		5,040		4,980
FLET’S Hikari ARPU		5,830		5,890		5,910		5,760		5,880		5,780		5,910
NTT DOCOMO
Mobile Aggregate ARPU (FOMA+mova+Xi)		5,190		5,200		5,130		5,440		5,170		5,350		5,100
Voice ARPU (FOMA+mova+Xi)		2,680		2,660		2,590		3,000		2,640		2,900		2,540
Packet ARPU (FOMA+mova+Xi)		2,510		2,540		2,540		2,440		2,530		2,450		2,560
Mobile Aggregate ARPU (FOMA)		5,260		5,260		5,180		5,590		5,230		5,480		5,150
Voice ARPU (FOMA)		2,670		2,660		2,580		3,010		2,640		2,900		2,530
Packet ARPU (FOMA)		2,590		2,600		2,600		2,580		2,590		2,580		2,620
Mobile Aggregate ARPU (mova)		3,330		3,310		3,290		3,510		3,320		3,460		3,260
Voice ARPU (mova)		2,770		2,750		2,750		2,910		2,760		2,870		2,710
Packet ARPU (mova)		560		560		540		600		560		590		550


Notes:	(1)	We compute the following four categories of ARPU for business conducted by each of NTT East and NTT West.

		•	Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines): Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and INS-NET Subscriber Lines, which are included in operating revenues from Voice Transmission Services (excluding IP Services), and revenues from FLET’S ADSL and FLET’S ISDN, which are included in operating revenues from IP Services.

		•	Telephone Subscriber Lines ARPU: Calculated based on revenues from monthly charges and call charges for Telephone Subscriber Lines and revenues from FLET’S ADSL.

		•	INS-NET Subscriber Lines ARPU: Calculated based on revenues from monthly charges and call charges for INS-NET Subscriber Lines and revenues from FLET’S ISDN.

		•	FLET’S Hikari ARPU: Calculated based on revenues from FLET’S Hikari (including FLET’S Hikari optional services), which are included in operating revenues from IP Services, revenues from monthly charges, call charges and connection device charges for Hikari Denwa, and revenues from FLET’S Hikari optional services, which are included in Supplementary Business revenues.

		—	FLET’S Hikari includes B FLET’S and FLET’S Hikari Next provided by NTT East, and B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown and FLET’S Hikari Next provided by NTT West.

	(2)	Revenues from interconnection charges are excluded from the calculation of Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), Telephone Subscriber Lines ARPU, INS-NET Subscriber Lines ARPU, and FLET’S Hikari ARPU.

	(3)	For purposes of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines), Telephone Subscriber Lines ARPU and INS-NET Subscriber Lines ARPU, the number of subscribers is determined using the number of subscriptions for each service.

	(4)	In terms of number of channels, transmission rate, and line use rate (base rate), INS-Net 1500 is in all cases roughly ten times greater than INS-Net 64. For this reason, for the purpose of calculating Aggregate Fixed Line ARPU (Telephone Subscriber Lines + INS-NET Subscriber Lines) and INS-NET Subscriber Lines ARPU, one INS-Net 1500 subscription is calculated as ten INS-Net 64 subscriptions.

	(5)	For purposes of calculating FLET’S Hikari ARPU, number of subscribers is determined based on number of FLET’S Hikari subscribers including B FLET’S and FLET’S Hikari Next provided by NTT East and B FLET’S, FLET’S Hikari Premium, FLET’S Hikari Mytown and FLET’S Hikari Next provided by NTT West.

	(6)	We separately compute the following three categories of ARPU for mobile business conducted by NTT DOCOMO.

		•	Mobile Aggregate ARPU (FOMA+mova+Xi) = Voice ARPU (FOMA+mova+Xi) + Packet ARPU (FOMA+mova+Xi).

			—	Our Voice ARPU (FOMA+mova+Xi) is based on operating revenues related to voice services, such as basic monthly charges and voice communication charges attributable to our FOMA and mova services, and our Packet ARPU (FOMA+mova+Xi) is based on operating revenues related to packet services, such as basic monthly charges and packet communication charges attributable to our FOMA, mova and Xi services.

			—	As Xi service does not provide voice services as of December 31, 2010, the revenues therefrom are not included in the calculations of Voice ARPU (FOMA+mova+Xi). Only the number of Xi service subscriptions are included in the calculation.

		•	Mobile Aggregate ARPU (FOMA) = Voice ARPU (FOMA) + Packet ARPU (FOMA).

			—	Our Voice ARPU (FOMA) is based on operating revenues related to voice services, such as basic monthly charges and voice communication charges, and our Packet ARPU (FOMA) is based on operating revenues related to packet services, such as basic monthly charges and packet communication charges, in each case attributable to our FOMA services.

		•	Mobile Aggregate ARPU (mova) = Voice ARPU (mova) + Packet ARPU (mova).

			—	Our Voice ARPU (mova) is based on operating revenues related to voice services, such as basic monthly charges and voice communication charges, and our Packet ARPU (mova) is based on operating revenues related to packet services, such as basic monthly charges and packet communication charges, in each case attributable to our mova services.

	(7)	Communications module service subscribers and the revenues therefrom are not included in the calculations of Mobile Aggregate ARPU.

	(8)	Number of active subscribers used in the ARPU calculation of NTT East and NTT West are as below.

			—	1Q Results: Sum of number of active subscribers** for each month from Apr. to Jun.

			—	2Q Results: Sum of number of active subscribers** for each month from Jul. to Sept.

			—	3Q Results: Sum of number of active subscribers** for each month from Oct. to Dec.

			—	4Q Results: Sum of number of active subscribers** for each month from Jan. to Mar.

			—	Nine Months Results: Sum of number of active subscribers** for each month from Apr. to Dec.

			—	FY Results : Sum of number of active subscribers** for each month from Apr. to Mar.

			—	FY Forecast: Sum of the sum of actual number of active subscribers at the end of each month from Apr. to Sept. and the average expected active number of subscribers during the second half of the fiscal year ((Number of subscribers at end of Sept. + number of expected subscribers at end of the following Mar.)/2)x6

	(9)	Number of active subscribers used in the ARPU calculation of NTT DOCOMO are as below.

			—	1Q Results: Sum of number of active subscribers** for each month from Apr. to Jun.

			—	2Q Results: Sum of number of active subscribers** for each month from Jul. to Sept.

			—	3Q Results: Sum of number of active subscribers** for each month from Oct. to Dec.

			—	4Q Results: Sum of number of active subscribers** for each month from Jan. to Mar.

			—	Nine Months Results: Sum of number of active subscribers** for each month from Apr. to Dec.

			—	FY Results: Sum of number of active subscribers** for each month from Apr. to Mar.

			—	FY Forecast: Sum of expected number of active subscribers** for each month from Apr. to Mar.

	(10)	Forecasts for the year ending March 31, 2011 have not been changed from those announced in the financial results for the six months ended September 30, 2010.

		**active subscribers = (number of subscribers at end of previous month + number of subscribers at end of the current month)/2

- 6 -

6.	Interest-Bearing Liabilities (Consolidated)

(Billions of yen)

As of
Mar. 31, 2010

As of
Dec. 31, 2010

As of
Mar. 31, 2011
(Forecast)

Interest-Bearing Liabilities

4,491.7

4,736.2

4,600.0


Note :		Forecasts for the year ending March 31, 2011 have not been changed from those announced in the financial results for the six months ended September 30, 2010.

7.	Indices (Consolidated)

Year Ended
Mar. 31, 2010

Nine Months Ended
Dec. 31, 2010

Year Ending
Mar. 31, 2011
(Forecast) ⁽¹⁾

EBITDA

3,240.8 billion yen

2,579.2 billion yen

3,240.0 billion yen

EBITDA Margin

31.8 %

34.2 %

32.0 %

Operating FCF

1,253.7 billion yen

1,315.8 billion yen

1,280.0 billion yen

ROCE

5.4 %

—

5.6 %


Notes :	(1)	Forecasts for the year ending March 31, 2011 have not been changed from those announced in the financial results for the six months ended September 30, 2010.
	(2)	Reconciliation of Indices are as follows.

Year Ended
Mar. 31, 2010

Nine Months Ended
Dec. 31, 2010

Year Ending
Mar. 31, 2011
(Forecast)

EBITDA (a+b)

3,240.8 billion yen

2,579.2 billion yen

3,240.0 billion yen

Operating Income

1,117.7 billion yen

1,065.3 billion yen

1,180.0 billion yen

Depreciation, Amortization, and Loss on Disposal of Property, Plant and Equipment

2,123.1 billion yen

1,513.9 billion yen

2,060.0 billion yen

EBITDA Margin [(c/d)X100]

31.8 %

34.2 %

32.0 %

Operating Income

1,117.7 billion yen

1,065.3 billion yen

1,180.0 billion yen

Depreciation, Amortization, and Loss on Disposal of Property, Plant and Equipment

2,123.1 billion yen

1,513.9 billion yen

2,060.0 billion yen

EBITDA (a+b)

3,240.8 billion yen

2,579.2 billion yen

3,240.0 billion yen

Operating Revenues

10,181.4 billion yen

7,542.7 billion yen

10,140.0 billion yen

Operating FCF [(c-d)]

1,253.7 billion yen

1,315.8 billion yen

1,280.0 billion yen

Operating Income

1,117.7 billion yen

1,065.3 billion yen

1,180.0 billion yen

Depreciation, Amortization, and Loss on Disposal of Property, Plant and Equipment

2,123.1 billion yen

1,513.9 billion yen

2,060.0 billion yen

EBITDA (a+b)

3,240.8 billion yen

2,579.2 billion yen

3,240.0 billion yen

Capital Investment

1,987.1 billion yen

1,263.4 billion yen

1,960.0 billion yen

ROCE [(b/c)X100]

5.4 %

—

5.6 %

Operating Income

1,117.7 billion yen

—

1,180.0 billion yen

(Normal Statutory Tax Rate)

41.0 %

—

41.0 %

Operating Income X (1 - Normal Statutory Tax Rate)

660.3 billion yen

—

697.1 billion yen

Operating Capital Employed

12,238.6 billion yen

—

12,504.4 billion yen


Note :		Figures for capital investment are the accrual-based amounts required for acquisition of Property, Plant and Equipment and Intangible and Other Assets. The differences from the figures for “Payments for Property, Plant and Equipment” and “Acquisition of Intangible and Other Assets” in the consolidated statements of cash flows are as described in the reconciliation below.


	(Billions of yen)
	Year Ended Mar. 31, 2010		Nine Months Ended Dec. 31, 2010
NTT Consolidated Capital Investment		1,987.1		1,263.4
Payments for Property, Plant and Equipment		1,370.9		1,060.9
Acquisition of Intangible and Other Assets		553.3		335.0
Other Differences		62.9		(132.5	)

- 7 -

Financial Results for the Nine Months Ended December 31, 2010


	(Billions of yen)
	Nine Months Ended Dec. 31, 2010		Three Months Ended Jun. 30, 2010		Three Months Ended Sept. 30, 2010			Three Months Ended Dec. 31, 2010
NTT Consolidated (US GAAP)
Operating Revenues		7,542.7		2,498.9		2,500.2			2,543.6
Fixed Voice Related Services		1,646.5		554.3		547.3			544.8
Mobile Voice Related Services		1,557.6		517.8		523.8			516.0
IP/Packet Communications Services		2,487.7		815.7		831.8			840.2
Sales of Telecommunications Equipment		424.2		166.1		115.8			142.2
System Integration		882.7		274.8		297.7			310.2
Other		544.0		170.1		183.7			190.2
Operating Expenses		6,477.4		2,159.3		2,112.9			2,205.3
Cost of Services (exclusive of items shown separately below)		1,788.8		579.0		601.0			608.8
Cost of Equipment Sold (exclusive of items shown separately below)		553.2		206.5		160.4			186.2
Cost of System Integration (exclusive of items shown separately below)		567.0		170.6		196.1			200.3
Depreciation and Amortization		1,457.7		482.2		482.2			493.4
Impairment Loss		0.7		0.2		0.1			0.4
Selling, General and Administrative Expenses		2,110.0		720.7		673.0			716.2
Write-down of goodwill and other intangible assets		—		—		—			—
Operating Income		1,065.3		339.7		387.3			338.4
Income Before Income Taxes		1,031.5		341.6		368.7			321.2
Net Income		458.3		155.9		159.3			143.1
(Ref.) Details of “Cost of Services”, “Cost of Equipment Sold”, “Cost of System Integration” and “Selling, General and Administrative Expenses”
Personnel		1,485.0		491.4		493.7			499.9
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		3,273.7		1,102.3		1,053.2			1,118.2
Loss on Disposal of Property, Plant and Equipment		91.4		25.2		29.1			37.1
Other Expenses		168.8		57.9		54.6			56.2
Total		5,018.9		1,676.9		1,630.5			1,711.5
NTT (Holding Company) (JPN GAAP)
Operating Revenues		347.4		193.1		37.8			116.4
Operating Expenses		107.0		34.5		36.4			36.0
Operating Income		240.4		158.5		1.4			80.4
Non-Operating Revenues		33.7		11.7		11.1			10.7
Non-Operating Expenses		39.1		9.9		16.5			12.6
Recurring Profit		234.9		160.4		(4.0	)		78.5
Net Income		233.6		158.1		(2.8	)		78.3

- 8 -

Financial

Results for the Nine Months Ended December 31, 2010


	(Billions of yen)
	Nine Months Ended Dec. 31, 2010		Three Months Ended Jun. 30, 2010		Three Months Ended Sept. 30, 2010		Three Months Ended Dec. 31, 2010
NTT East (JPN GAAP)
Operating Revenues		1,438.7		470.2		481.4		487.0
Voice Transmission Services (excluding IP) ⁽¹⁾		563.9		191.9		188.0		183.9
IP Services ⁽²⁾		538.8		175.0		179.9		183.8
Leased Circuit (excluding IP)		112.8		37.9		37.7		37.1
Telegraph		14.2		5.3		4.0		4.8
Other		103.2		30.9		37.3		34.9
Supplementary Business		105.6		29.0		34.3		42.3
Operating Expenses		1,366.0		446.4		459.2		460.4
Personnel		87.4		29.3		29.0		29.0
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		893.6		289.2		302.3		302.0
Depreciation and Amortization		298.4		100.2		98.6		99.5
Loss on Disposal of Property, Plant and Equipment		30.8		8.3		10.8		11.6
Taxes and Public Dues		55.5		19.1		18.2		18.1
Operating Income		72.7		23.8		22.2		26.6
Non-Operating Revenues		41.8		13.6		15.2		12.9
Non-Operating Expenses		25.9		8.4		9.7		7.8
Recurring Profit		88.6		29.0		27.7		31.8
Net Income		56.2		18.0		18.2		19.9
NTT West (JPN GAAP)
Operating Revenues		1,304.4		428.6		439.3		436.3
Voice Transmission Services (excluding IP) ⁽¹⁾		554.0		188.4		184.8		180.7
IP Services ⁽²⁾		431.2		140.3		143.8		147.0
Leased Circuit (excluding IP)		100.0		33.7		33.3		32.9
Telegraph		16.4		5.9		4.8		5.7
Other		97.2		31.1		32.2		33.8
Supplementary Business		105.3		28.9		40.2		36.0
Operating Expenses		1,253.9		411.4		422.1		420.3
Personnel		82.0		27.2		27.6		27.1
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		812.7		264.0		277.2		271.4
Depreciation and Amortization		278.9		93.4		92.4		93.1
Loss on Disposal of Property, Plant and Equipment		29.1		8.5		8.5		11.9
Taxes and Public Dues		50.9		18.1		16.1		16.6
Operating Income		50.4		17.1		17.2		16.0
Non-Operating Revenues		38.1		14.3		12.2		11.5
Non-Operating Expenses		24.4		8.0		8.2		8.2
Recurring Profit		64.1		23.5		21.2		19.4
Net Income		48.3		17.9		15.8		14.5

- 9 -

Financial Results for the Nine Months Ended December 31, 2010


	(Billions of yen)
	Nine Months Ended Dec. 31, 2010			Three Months Ended Jun. 30, 2010			Three Months Ended Sept. 30, 2010			Three Months Ended Dec. 31, 2010
NTT Communications (JPN GAAP)
Operating Revenues		765.6			252.1			256.8			256.6
Voice Transmission Services (excluding IP)		267.3			89.6			89.2			88.4
IP Services		271.7			90.4			90.6			90.6
Data Transmission Services (excluding IP)		83.9			28.1			28.0			27.8
Leased Circuit*		63.7			21.1			21.2			21.3
Solutions Business		122.9			37.3			42.4			43.1
Other		19.6			6.6			6.5			6.4
Operating Expenses		700.4			230.8			236.5			233.0
Personnel		70.6			23.7			23.3			23.5
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		326.3			105.0			112.1			109.1
Communication Network Charges		205.9			69.1			68.8			67.9
Depreciation and Amortization		83.7			28.3			27.6			27.7
Loss on Disposal of Property, Plant and Equipment		4.7			1.5			1.5			1.6
Taxes and Public Dues		8.8			3.0			2.9			2.8
Operating Income		65.2			21.3			20.2			23.5
Non-Operating Revenues		19.9			9.5			6.0			4.3
Non-Operating Expenses		9.4			3.7			2.8			2.8
Recurring Profit		75.7			27.2			23.4			25.0
Net Income		42.3			15.7			10.6			16.0
NTT DATA Consolidated (JPN GAAP)
Operating Revenues		813.9			261.5			272.2			280.2
Public & Financial IT Services		532.2			175.3			172.3			184.5
Global IT Services		250.2			75.7			89.9			84.4
Solutions & Technologies		119.4			39.3			40.1			39.9
Elimination or Corporate		(88.0	)		(29.0	)		(30.2	)		(28.7	)
Cost of Sales		623.6			199.9			212.0			211.5
Gross Profit		190.3			61.5			60.1			68.6
Selling and General Expense		144.3			48.6			47.6			48.0
Operating Income		45.9			12.8			12.5			20.5
Non-Operating Income (Loss)		(2.9	)		(1.3	)		(0.9	)		(0.6	)
Recurring Profit		42.9			11.4			11.5			19.9
Net Income		22.8			5.8			6.2			10.7
NTT DOCOMO Consolidated (US GAAP)
Operating Revenues		3,209.1			1,089.2			1,048.9			1,071.0
Wireless Services		2,850.1			943.9			955.1			951.1
Mobile Services		2,598.8			864.2			871.3			863.3
Voice		1,337.0			449.2			449.2			438.6
Packet Communications		1,261.8			414.9			422.1			424.8
Other Revenues		251.3			79.7			83.8			87.8
Equipment Sales		359.0			145.3			93.8			119.9
Operating Expenses		2,450.6			848.7			758.0			843.9
Personnel		195.7			65.8			63.6			66.3
Cost of Services and Equipment Sold, and Selling, General and Administrative Expenses		1,495.0			539.3			442.8			512.9
Depreciation and Amortization		496.1			158.1			163.9			174.1
Loss on Disposal of Property, Plant and Equipment		23.1			5.5			7.1			10.5
Communication Network Charges		211.6			70.3			70.8			70.5
Taxes and Public Dues		29.1			9.8			9.7			9.6
Operating Income		758.5			240.5			291.0			227.0
Non-Operating Income (Loss)		(9.9	)		0.0			(4.5	)		(5.4	)
Income Before Tax		748.6			240.6			286.4			221.6
Net Income		444.0			142.2			167.6			134.2