NTT Data : Company Presentation for the Third Quarter of Fiscal Year Ending March 31, 2023 (with note)

I am Toshi Fujiwara, Senior Executive Vice President and Representative Director.

Thank you for attending the financial results briefing session today despite your busy schedules.

I would like to explain the results for the third quarter of the fiscal year ending March 31, 2023.

Please see Page 1.

Here is the agenda for today.

First, I will explain the financial results for the third quarter as well as the business forecasts and provide updates on the progress after the overseas business combination. As NTT Ltd. has been consolidated since the third quarter, supplementary information will be provided at the end, using the appendices.

Please see Page 3.

(Explanation omitted)

First, I will explain the overview of the third quarter financial results.

As a prerequisite, NTT Ltd. has been consolidated since the third quarter following the overseas business combination in October 2022. With the consolidation, both net sales and operating income increased, whereas the quarterly net income decreased due to increased financial and tax expenses.

Net salescontinued to increase in the third quarter, like in the first half of the fiscal year, due to the expansion of scale in all segments and the impact of foreign exchange rates, as well as the effect of scale expansion resulting from the consolidation of NTT Ltd.

Operating incomeincreased mainly due to sales growth and the effect of the consolidation of NTT Ltd., despite increased company-wide strategic investments and losses from unprofitable projects that were recorded in the second quarter.

New orders receivedare posted as a reference for such reasons as NTT Ltd. using a different method to calculate new orders received.

As for new orders received, excluding the effect of the consolidation of NTT Ltd., just like in the first half, the growth rate further expanded in the third quarter due to the receipt of orders in overseas business and the impact of foreign exchange rates, despite a reactionary decline due to fewer large-scale orders in Japan following large-scale orders won in the previous fiscal year.

Next, I will explain the year-on-year changes for each item by segment. Please see Page 4.

Let me start with the new orders received.

Public & Social Infrastructure Segmentsaw a decrease mainly due to a reactionary decline as there were fewer orders of large-scaleprojects following the winning of large-scaleorders for the central government and ministries in the previous fiscal years.

Financial Segmentsaw a decrease mainly due to a reactionary decline as there were fewer orders of large-scale projects following the winning of large- scale orders for banks in the previous fiscal years.

Enterprise & Solutions Segmentsaw an increase mainly due to winning of projects for the distribution and services sectors and manufacturing industries. Overseas Segmentsaw an increase mainly due to wining of projects in Europe and the impact of foreign exchange rates.

As I mentioned earlier, new orders received by Overseas Segment excludes the effect of the consolidation of NTT Ltd.

Please see Page 5.