Thank you very much for joining us in spite of your busy schedule. We would now like to start the briefing of financial results for the fiscal year ended March 2026, and financial forecast for the fiscal year ending March 2027 for NTT Holdings. I am Akaishi from IR Office, serving as your facilitator today. Let me introduce today's speakers. Akira Shimada, Representative Director, President, and CEO. Takashi Hiroi, Representative Director, Senior Executive Vice President, and CFO. Toshihiko Nakamura, Senior Vice President and Head of Finance and Accounting. Akitoshi Hattori, Senior Vice President, Head of Corporate Strategy Planning. These are the four speakers. Today's event is also broadcast live. The video of this event will be available on demand at a later date. Please refer to the presentation materials on our IR website.
There is also disclosure on partial revision of our medium-term financial targets. First, President Shimada will talk about the key points from the presentation material. The performance of the fiscal year and initiatives for profit growth in the medium term. We'll take your questions. Over to you, President.
This is President CEO Shimada speaking. Thank you very much for gathering today. Without further ado, from my side, I would like to explain the financial results for the fiscal year ending March 31st, 2026, and the financial forecast for the fiscal year ending March 31st, 2027. After that, I will explain the initiatives towards medium-term profit growth and the revision of financial targets. I would like to make it in a digest or a shorter version today. Page 5, please. Operating revenues, operating profit and profit all increased year-on-year. Operating revenues reached new record highs. Operating revenue, driven by the expansion of enterprise business across group companies, growth in the Smart Life business, and increased revenue resulting from transferring data centers into REIT, rose by JPY 704.4 billion year-on-year to JPY 14,409.1 billion.
As for the operating profits, although costs were incurred due to measures implemented by DOCOMO to strengthen its base and improve mobile network quality, increased profits from the expansion of enterprise business at group companies and the Smart Life business, combined with transferring data centers into REITs. EBITDA was JPY 3,423.3 billion, up by JPY 184 billion year-on-year. Operating profit was JPY 1,706.2 billion, up by JPY 56.7 billion year-on-year. Profit was JPY 1 trillion 37 billion, up by JPY 37 billion year on year due to the increase in operating profit and others. Please go to slide 8. As for the FY 2026 forecast, operating revenues, EBITDA and operating profit will increase year on year. Profit is planned to decrease.
Operating revenue is planned to increase in all of the business segments and will aim for a new record high led by the Integrated ICT Business and Global Solutions Business. As for EBITDA and operating profit, though, there is a continuous negative impact for the decreasing network revenues, we are planning an increase in operating profit year on year due to the expansion of the enterprise business and Smart Life Business led by finance business. Profit is planned to decline year on year due to the increase in interest paid and others. Please go to page 10. I will explain about the shareholder returns. At today's board of directors meeting, it was resolved that the year-end dividend per share for fiscal year 2025 is JPY 2.65.
Furthermore, it was also resolved that the dividends forecast for fiscal year 2026 annual dividends per share is forecasted to be JPY 5.4, an increase of JPY 0.1 from FY 2025. This will increase for the 16th consecutive year since 2011. In addition, in order to further improve capital efficiency and enhance shareholders' return, we'll be conducting share buybacks up to an aggregated amount of JPY 200 billion. Next, I'll explain about our initiatives towards medium-term profit growth. Please go to slide 14. First, I'll explain about the revision of medium-term financial targets of our medium-term profit growth. Regarding our status towards our current medium-term financial target of JPY 4 trillion in EBITDA for fiscal year 2027, our growth areas are still the increasing process through proactive investments and the realization of their returns.
On the other hand, in our existing areas, profit declined due to a response to changes in the business environment, such as strengthening our customer base and increasing traffic. As a result, consolidated EBITDA fell short of expectations, making it difficult to achieve our fiscal year 2027 targets. In light of these changes in the business environment, we are renaming our growth area as Value-Added Areas and will focus on AI, which is expected to drive further business expansion with the aim of significantly increasing our profits. Furthermore, as an immediate priority for our existing area, we will retain our cash generation capabilities by stabilizing profits while renaming it the Connectivity Area and transitioning it into an IOWN and AI native infrastructure.
Through this, combined with our Value Area, we aim to achieve an EBITDA of JPY 4 trillion by fiscal year 2030. Furthermore, in areas with promising further growth, to achieve sustainable growth, we will continue to make strategic upfront investments. Next, w e will promote these seven initiatives under three categories: value-added areas, connectivity areas, and strategic upfront investment to support continued growth aimed at achieving EBITDA of JPY 4 trillion in fiscal year 2030. Please refer to the following slides for further details. Please jump to page 26. This is the regarding the medium-term financial targets. Regarding EBITDA, we would like to target 2030 JPY 4 trillion as explained. Also, our ROIC excluding financial business targets is set to enhance capital efficiency.
T here are no changes to sustainability-related non-financial indicators. In terms of shareholder returns, we will maintain our policy with a basic policy to implement steady increase in dividends coupled with flexibly conducting share buybacks to improve capital efficiency. Due to increased financing needs, interest-bearing debt has risen in recent years. However, our policy is to ensure a certain level of financial soundness in the medium term. We will expand cash generation capacity so that we reduce the interest-bearing liabilities to EBITDA, excluding the financial business, to approximately 3.5 times by 2030. Please go to page 29. This is the EBITDA per business. This concludes my presentation. Thank you very much.
Mr. Shimada, thank you very much. From now, we would like to open the floor for questions. Regarding your questions, those who are participating in this room and for those who registered and connected to the website online, we will take questions from you first. For those of you in this room, the staff will bring the microphone to you, so please raise your hand. For those participating online, please press the Raise Your Hand Button. If you would like to cancel, press that Raise Your Hand Button once again. When we appoint the person to ask a question, please identify your company name and your name. Once you receive to unmute on the web system, please unmute. After you ask your question, until our company answers, please remain unmuted.
We would like to take your questions. First of all, we would like to take the questions from this room. Right in front of me, please go ahead.
My name is Masuno from Nomura Securities. First of all, the new EBITDA medium-term target, FY 2030, you set it at JPY 4 trillion. This fiscal year's plan is already JPY 3,420 billion. In 4 years, it's 16%-17% growth. In annually converted, it's about around 4% growth per annum. Four years from now, I thought it could be a bit higher target. The overall picture, what are your thoughts on it? That's my first question.
Shimada will answer that question.
Thank you very much. Well, we did create it in a sort of a conservative way. That's the honest saying because we're not able to achieve this fiscal year's plan. By 2030, we wanted to definitely achieve this target. If possible, if we can achieve it in advance to that date, it'll be great. If you total the numbers up, the disclosed number total is about exactly JPY 4 trillion. However, there are other segments. When we think about those other areas, if possible, we're hoping that we can achieve that target before the planned date, and we would like to put our efforts in the management of the business. The Integrated ICT, global real estate, energy, and others. That area, those are negative numbers within the breakdown of JPY 4 trillion.
I'm sure there's some advanced items that are included in those numbers, and you came up to this number. Not that each business segment, but maybe you have a buffer, as stated.
Well, honestly, you can think that we are placing a buffer there. Because with the current business base that we have, JPY 120 billion, about JPY 120 billion is the aggregated number. We believe that that is going to grow. There is additional room that can grow and will surpass our stated figure. FY 2027, JPY 4 trillion was the original target. If to make it easier to understand, we'll set it at JPY 4 trillion. If possible, we would like to achieve that number earlier than 2030.
In FY 2030, we would like to have the pace that we can exceed, that target set it for that year.
Well, by the way, operating profit-wise, if you convert it into operating profit, how much will it be? Do we have that?
This is Takashi Hiroi speaking. EBITDA's JPY 4 trillion. To achieve that number, operating a profit size will have to be exceeding JPY 2 trillion. That is going to be the level of the operating profit in terms of the size of it. Okay, I will ask another question and finish. If I look at the each business segment, I believe that they probably will be able to reach the numbers. Later I'll ask this question for NTT Data, but NTT Data's overseas business excluding data center business. Honestly speaking, I think that is a bit aggressive. I'm just wondering how you're going to achieve that number. The NTT Data's overseas business part. We're not thinking of achieving those numbers purely with organic growth.
Including M&As, and also including investment required for that, is the base of our thinking. In that way, there are areas that's not organic. NTT DATA AIVista, we will utilize that to create AI business and through M&A, we are going to expand our capabilities. This JPY 200 billion part includes such elements. And with that, we would like to achieve the target. The data centers, as you have explained before, the 3 gigawatt capacity is the base of these numbers. Is that the correct? 3 gigawatt size, yes, is the base. In addition to that, selling of the data centers, if you look at FY 2025, there are data centers that were transferred into REIT. FY 2026, we are planning to have other data centers included in the REIT as well.
In that sense, in an advanced pace or in a front-loaded pace, we will increase the profit. For these numbers, the sales of the data centers is also included as well.
Thank you very much. I understood.
Thank you very much. We would now like to take the next question. The gentleman with his hand up now.
I'm Kikuchi from SMBC Nikko Securities. I have two questions. First is regarding the medium-term plan target. I also have a question on this. My impression was NTT DOCOMO's consumer platform seems a bit weak. My second question, I'm wondering how this can be achieved. NTT East and West, 80 billion JPY in profit increase. How do you plan to achieve this profit growth for NTT East and West? For financial business, this may be to NTT DOCOMO, but since Hiroi-san is here, I'd like to ask about the 120 billion JPY profit increase for financial business. That's a big jump up. Given the current portfolio, I think this could be quite difficult. What is possible with the current portfolio, and what will be the add-on from the new portfolio?
What is your vision to grow NTT and DOCOMO's financial business for the future? I'd like to ask your vision, Mr. Hiroi. Those are my two questions. First, question includes DOCOMO and NTT East and West.
Regarding NTT DOCOMO consumer business, given that the population in Japan will be declining, we have said that we would like to maintain the current level. It's going to be difficult to maintain the number of handsets. We need IoT and IOWN service and robotics. Mobile usage in these areas need to increase to maintain the handset number. What is more important is the large data plans are now accounting for 30% and above. We need to further expand the subscription to these large data plans. For the human-to-human mobile, we would like to cover that as much as possible with the large data models so that we can maintain the similar level EBITDA for the consumer business. Of course, for DOCOMO, compared to competitors, we haven't increased our price.
We just introduced a new plan, docomo MAX. Given that the labor cost is going up and other cost is inflating, as Maeda-san presented today, we have 20 or so old plans that are still remaining, and we need to streamline the pricing plans as well. There is a big challenge that DOCOMO needs to tackle in terms of improving efficiency. At some time in the future, we do need to think about increasing prices. A higher level is probably possible. Now, in terms of NTT East and West, corporate business, e nterprise business is taking off quite in a robust manner. As Shibutani-san from NTT East and West mentioned, network between data center, that demand is growing very significantly. This is not just connecting NTT data centers, but data centers that are being operated by other companies.
NTT's share in Japan is about 15%, but remaining 85%, other companies' data centers also need to be connected. This network business is emerging as a new business for NTT East and West. Therefore, it is more than enough to cover for the, a reduction in the legacy business, we believe. Also, there are profit being generated from its subsidiaries, there is room for further revenue increase from that.
In terms of the financial business and future growth, at this time, I think it is better to ask the question to DOCOMO, given the current role that I have. As the CFO of the NTT Holdings, which is my current role at this time, is the current portfolio enough? That was your question regarding the finance business. DOCOMO has the card, the payment, and other payment type solutions, as well as SBI Sumishin Net Bank, Monex, and ORIX Credit, and the credit business. We have a wide portfolio within NTT, and we would like to grow that portfolio. It is possible, we believe, to realize the EBITDA target by growing these portfolio that we have.
Of course, we need growth from all of these elements, but I believe that we have the pieces that is necessary to reach the EBITDA target. In terms of the direction and the contents of the business, we would like to set up an opportunity to provide more detailed explanation at a later date. Please ask the strategy question to DOCOMO.
Thank you very much. My second question, going into a bit of details, is regarding the impairment of ENNET. In the midterm target energy wasn't playing a large role, I believe. How do you see the energy business going forward, and what is the reason for the impairment of ENNET? I'm sure that you're looking into the changing environment, changing various systems and the profit structure. I'd like to ask your strategy.
GPI construction cost is going up, so about JPY 50 billion of impairment was recorded. Regarding the development of GPI, we would like to continue to secure renewable energy, which we believe is necessary. We will continue to invest in accordance with our original plan. We do have the plan to invest in GPI. Last year and the year before, once the construction is completed, we off-balanced the asset. After the construction is complete, we would like to off-balance the asset to improve the capital efficiency. What we want is the energy from the renewable energy. It is not a must to maintain the asset on our books. I shouldn't say that there is no need, but what is more important is to secure renewable energy for our group. We would like to consider different ways, including off-balancing the asset.
Thank you very much. That is all for me.
Thank you very much. I'd like to take the next question. The person in the middle row.
Daiwa Securities. My name is Tokunaga. I have two questions. The question is regarding the medium-term management strategy. If I look at page 15, consolidated EBITDA, JPY 3.4 trillion to JPY 4 trillion, it's going to increase. According to this graph, it seems that it's going to continuously increase. There is a possibility that it may not be that wide. Maybe that is why it's not written that every year there'll be growth and profit. On the other hand, DOCOMO is turning around an entity, data CapEx. Since they'll be using third-party capital, it seems that there's not that much of an increase in CapEx either. If it goes as planned, I have a feeling that you will be able to achieve a continuous growth in profit from JPY 3.4 trillion to JPY 4 trillion.
Every year's outlook, the advanced investment will be in here and etc. If you can share with us the ups and downs within this period.
As you have commented within your question, when we think about the status of each business segment, with the increasing profit trend, we can bring it to JPY 4 trillion. Looking at each fiscal year's breakdown, the image of it, As explained to the question regarding data, NTT DATA, through M&A, we're going to expand our scale. There is partially in organic growth. We have a counterparty, so we cannot say in which fiscal year. To clearly stating the ups and downs of each fiscal year may be difficult to do, is what I think.
Okay, understood. The outlook of the CapEx, it is going to be flat like the level of this fiscal year. If you're going to do an M&A, is it going to increase again?
Regarding the CapEx, from this fiscal year, the image that it's going to gradually decline. The level of CapEx, of course, we cannot rapidly decrease it. From this fiscal year's level, it'll be slightly lower. We have no intention of increasing it.
Thank you very much. My second question, regarding the financial targets for the medium term. It's regarding ROIC. From the current 5%, you're going to increase to 5.5%. The operating profit is probably going to increase, is your plan. JPY 200 billion every year. You're doing a share buyback, you'll have about JPY 1 trillion in 5 years. The operating profit is going to increase. The debt is not going to increase if you have JPY 2 trillion of operating profit. Maybe that's the breakdown of this ROIC increasing. Within this target of ROIC, what is your profit image as a company?
Sorry, what do you mean? What do you mean by profit target with inside the ROIC?
Well, the equity or the balance sheet balance or the operating profit balance. Well, I'm asking something similar, but I would like to know the financial background of this ROIC number. Well, as I have explained, EBITDA and operating profit, they will both grow.
On the other hand, we have quite of an accumulation of debt. Due to that, we have a certain amount of capital cost. Also, in the same way as right now, we will continue the increase in dividend, and we're going to conduct share buyback to a certain extent. The image of the equity cost does exist as well. Therefore, when we think about all these factors, in a way, when we will have some room for the free cash flow is when we get closer to JPY 4 trillion. When we have that size of an EBITDA, we will have some more room in free cash flow. The image is that reaching that level, it'll be ROIC of 5.5%. As a CFO, I want to set it at a higher target. Giving the circumstances, currently it is this target. Thank you very much.
Thank you very much. Third from the front row, please.
Hello, this is from Morgan Stanley, My name is Tsusaka . I have one question. From this fiscal year, and looking at the growth during the medium-term plan, enterprise and global and finance, these business domain seem to be driving the growth. The marginal growth coming from these business domains seems separate from the telecom field. This year's business plan, of course, the DOCOMO Smart Life is going up. It's not necessarily just organic because some of it is through the past acquisition. The bulk of the growth is coming from NTT Data. In terms of the communication with the investors or with the capital market going forward, NTT Data and IT service, perhaps that should be placed at the forefront. It might be easier for investors to understand what is growing within NTT Group.
For example, now, of course, as the holding company, you have to talk about the entire company. You have to talk about the capital allocation for the medium-term plan. Perhaps we don't need to talk about mobile here, NTT of NTT DOCOMO because here we are not talking about NTT East and West either. Now, there are so many business models, and investors have to search for the growth area. If the communication is shifted to tell the investors that this is the area that we're going to grow more clearly, I think it might be easier for investors to understand. This is my comment. Thank you.
Thank you very much. The plan is, as you say, focused on those growth areas. We discussed the data center business, and we have started to talk about IOWN. Data center business itself i s going to be combined with AI. Networks are not going to be independent. It is all going to be connected to AI, and the operation will need to be done through AI. That business opportunity, I believe, exists. This is going to take some more time, but toward 2030, to be operating the infrastructure almost autonomously through AI, perhaps some different landscape will open up to us beyond 2030. In terms of the short-term growth, yes, it is going to be almost totally focused on B2B and Smart Life. That is going to be the center of the growth for the near term.
Infrastructure business, perhaps in the future, we can have some bright hopes, and that is why we have introduced new concepts at this time. Once we have made some progress, we would like to communicate to you on that front as well.
If I may ask additionally about the medium-term plan target, NTT DATA's overseas business. You said that some of this is from inorganic growth, but my impression is the business outside of data center, structural or changes have been made almost every year. Well, it's hard to say, but it doesn't look like it's going that well, to be honest with you. Regarding the overseas business, do you have anything that you have within your sights that you are confident that will drive profit growth? Is it going to be through inorganic ways that you'll be able to make profit?
The current business model is going to be heavily impacted with the growth of AI. Therefore, we need to shift the business. This year and next year is going to be a major transformation period. The BPO type, digital type investment, the legacy type business investment is not going to make sense because the world is changing. How do we shift the structure of our business? How do we change with the times? It's going to be dependent on how we invest in AI. We need the AI consulting capability to customers and how we can secure that resources, including from external resources. The system integration and BPO, those legacy service, we need to make different selections from that. Otherwise, it's not going to be successful. Please ask more detailed questions to NTT Data later. Thank you.
Thank you very much. The third row from my side on the right-hand side, please go ahead.
Kono from Marathon Asset. Thank you very much for your explanation. Listening to your explanation, and I was looking at the numbers, and what I thought is that if my memory was wrong, I would like you to correct me. I remember that it's very similar to the numbers that you have disclosed three years ago. At that time, you said by FY 2027, the EBITDA is JPY 4 trillion, and you'll spend JPY 8 trillion to the growth area, and EBITDA will be growing by 20%, was the plan. That was one set, is my impression. At the same time, the message at that time was very crystal clear. It is investment, growth, cash generation. There was this design plan that was very clearly shown. However, maybe there was a bit of a timing difference towards going backwards.
Maybe a lot of uncertainties have come up as uncertain factors. That could be an opportunity, but also can become a difficulty. From the position of providing equity, it's not just that your business model became conservative, but rather maybe the capital allocation that is the foundation of your plan maybe has changed. At the start of FY 2023, like the collecting the investment or profit growth or capital efficiency, I think there was an assumption or base to come up with that. What changed from that time? What I would like to know is that, what I feel that your plan is becoming unclear more is that your company's equity, the capital itself, what is the design of it? If that is not clear, well, continuing increase in dividend and share buyback, it's really good or we appreciate it.
Is that really possible or are you in a situation that really you shouldn't be doing such a thing? That is unclear. This may be a discount factor from the equity side. How should we look at it or, what difficulties are you having because you don't have visibility of certain things or what do you have visibility on?
Maybe the major factor or the element is the mobile business, meaning that the mobile business profitability, what we thought in 2022 has changed now. Of course, we came up with a lower pricing as one factor. Looking from the current situation, I don't know at what timing, but it is a fact that the cost is increasing. How are we going to offset that or absorb that? Is that the mobile business, how should we manage it moving forward? Was actually the trigger point of revisiting the medium-term plan, because their profitability, DOCOMO's profitability or the mobile business profitability, declined. I think the current plan is created in quite of a conservative way, and I think we can actually boost it up a bit more. We still have room for that.
With the rise of AI, the conventional network composition is probably going to change within the next several years. The next phase or the when we come to the next generation, the composition of the network, led by AI, how can we change it to AI-led infrastructure in an efficient way? We change the naming to the connectivity area. That is because AI alone, robot alone, AI agent alone, that's not the case. All three needs to be connected, meaning that with the simple network business is not going to suffice. How, at what timing are we going to transform into that? How are we going to provide consultation with AI? That's going to be the business area, but how are we going to provide this service to the customer?
That's going to become the key. That is right from this fiscal year towards next fiscal year. What is our response going to be towards AI is going to become the key question or key point.
Okay, thank you very much. If the profitability of DOCOMO and others and at the declining speed, if it was faster than what you have expected, regarding that part, instead of looking at the capability of growth, but probably improving the efficiency. From the capital efficiency, allocating the equity to those areas more strategy-wise is probably not correct, but it's how you can utilize the leverage. As you said, in the AI area, if you re-look at the other investment, it seems that if we don't invest, we will lose. We don't know about how it's going to impact the profitability of the company, but we have to do that. It seems that there are some investments that are made because they're scared or they're threatened to do that.
That is kind of the fear I have. In order to win out from that, what kind of capitals will be coming in or what kind of allocation of the capital will be done is the visibility I'm looking for. What kind of a impact in the capital allocation are you experiencing because of AI? Right now, the reason why we have a large amount of investment towards AI is creating building an AI data centers for AI's learning process. That part is a large investment, but this learning process is going to hit its limits at some point. Are we going to invest towards that?
In our case, we're going to make investments, or we should make investments in data centers for inference. It's a distributed type. At the edge part, we will be making investments. Maybe it's not a GPU, but maybe CPU that we placed at the edge. We are thinking of such of a composition. Like the gigantic 1 giga or 2 giga, that type of a scale, a data center for the AI to learn to provide that scale, we're not thinking of investing in those. If there's a demand from the customers on an individual basis, we will provide the integration service. However, in a way, well, GPU as a service, Workspace-as-a-Service, we do have that, but that requires advanced investment.
Making that investment in advance and creating a foundation first, we are not thinking to make such an investment. Thank you very much.
Sorry. Excuse me. If I summarize it in a more total picture, DOCOMO's consumer's profit EBITDA, it's about JPY 600, it went to JPY 300 billion. We did not expect that. It had a high ROIC business, but it went down rapidly. We had to provide financing to that. That is the situation for the last several years. That is, well, we are kind of absorbing that through debt. The area that we're making investments are like data centers, where the investment return, comparatively speaking, is not that high. From the finance side, that is quite heavy. The generation of the return of the investment is happening later. That is why we are facing the situation that you have pointed out. However, moving forward, gradually, EBITDA's situation, profit and cash will be improved.
Towards the fiscal year 2030, if the free cash flow improves, then, as usual, as I have explained before, it will become closer to the EBITDA multiple financially. For investments and cash allocation, as Mr. Shimada said, led by AI, how are we going to replace the infrastructure? It's not a large-scale investment. In the last medium-term plan, we said JPY 8 trillion. Towards our 2030 growth, investment is JPY 8 trillion. In total, we're imaging about JPY 12 trillion CapEx. The size of the infrastructure will be replaced utilizing AI. It's a cash allocation design looking at the total picture. Within that design we have right now the same level of dividend and share buyback is possible, is what we have in mind. Thank you very much.
Next, we would like to take questions from participants online. Okumura-san from Okasan Securities, please unmute yourself.
Hello, this is Okumura from Okasan. One question or one confirmation regarding profit in the mid-term plan. You said about JPY 2 trillion in OP against the EBITDA target. EPS and, what is the CAGR image for EPS or the bottom line? The guidance, is profit down this year because of the higher interest payment. In terms of the profit attributable to investors, how does that work out against EBITDA? How aware of that bottom line are you?
Thank you for the question. This is Hiroi. In terms of profit, bottom line profit, as we have said time and again, toward 2030, profit and EBITDA will grow, and we will be repaying debt, and that is going to lead to improvement in profit. Toward 2030, about 20%-30% improvement is what we expect. Thank you.
Understood. Thank you very much. That is all for me.
Thank you very much. Are there any further questions? The last row in the room, please.
Hello, Mizuho Securities. My name is Fujishiro. One question regarding the passing through the cost. What are your thoughts on it? Within the previous briefing session, I believe that in the medium-term plan, you don't have a large amount that's incorporated in the plan in term as passing through the cost increase. Moving forward, the cost push inflation, we believe another wave of that may come. Within NTT Group, the area that's easy to increase the price or the area that's difficult to do so. Listening to you today, it seems that the mobile business is difficult to increase the pricing.
On the other hand, for example, the fiber optics, the MIC, it seems that the talks are towards having an easier increase or passing through the cost. All those included within NTT Group, comparatively speaking, which areas are easier to increase the price? Or the area that you would like to strongly push in terms of increasing the price. If you can share your thoughts, it's appreciated.
Well, the mobile business, We don't think that we cannot increase the price. However, as the CEO Motoyuki Ii has been saying, there are several legacy plans from the past. How are we going to handle that is something that we need to think together with increasing the price. I believe that discussions within DOCOMO are going on. It's not that we're not thinking about it. Our competitors have already increased the price. Therefore, at which is the best timing at this point is difficult to share with you. However, we would like to give it a thorough thought. Also for the other areas, for example, the connection fee is basically in the direction of increasing.
Not just the connection fee, but if the overall cost surrounding us goes up, I'm sure that there will be a timing that we will have to have the customers share that cost with us. We would like to think of various initiatives. Thank you.
Within the medium-term plan this time, how much of passing through the cost increase is incorporated?
NTT East and West with the connection fee, the areas that is clear that it is going to increase is incorporated, but the other price increase elements are not included.
Understood very well. Thank you very much.
Thank you very much. Any final questions? If not, since we have.
May I make a final comment? This is Hiroi. I will be stepping down from the CFO post at this time, and I'd like to thank the investors and analysts for all your support. It's been about 17 years since I have been involved in this company's financials, and my dialogue with you has been extremely helpful, and I have reflected that back into the company's strategy and planning. The buyback of NTT DOCOMO, the making a 100% subsidiary. Your feedback was instrumental in drafting this strategy. I was always looking forward to dialogue with you. I would like to thank you so much. Of course, I'll remain in the group, and I would like to ask for your continued support. Thank you very much.
Thank you. This concludes the NTT Holdings presentation. We will continue with the NTT DOCOMO's presentation next. Thank you.