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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
We would then like to start the Presentation of the Financial Results for the 9 Months ended December 31, 2022 for NTT Holding Company. Thank you for joining us despite your busy schedules. My name is [indiscernible] with the Communications Department of NTT and I will be serving as the moderator today. I'd like to introduce the attendees from our side. President and CEO; Mr. Akira Shimada; Senior Vice President, Head of Finance and Accounting, Mr. Kazuhiko Nakayama and also Senior Vice President, Head of Corporate Strategy Planning, Mr. Takashi Taniyama. These are attendees from our side. Mr. Shimada will explain to you the financial results for the 9 month ended December 31, 2022, after which we will take your questions. Also, the materials have been uploaded on NTT's website as of 14:00 PM Japan time today. We'd like to start the meeting. Mr. Shimada, the floor is yours.
Thank you very much. My name is Shimada from NTT. Thank you for joining us today. We appreciate your attendance. Allow me to present to you the financial results for the 9 months ended December 31, 2022. Please turn to page 4 of your material. Page 4, please. This shows you the status of consolidated results for fiscal year third quarter. Year-on-year operating revenue increase, operating income decreased and profit increased. Operating revenue and profit reached new record high level as of third quarter. Operating revenue increased by JPY 649.4 billion year-on-year, up to JPY 9,572.6 billion due to increase in revenue in the Global Solutions business segment. And of this increase, the impact from foreign exchange or currency was roughly JPY 220 billion. Now while increase in operating revenue boosted our operating income, this was not enough to cover increase in the electricity cost. So operating income declined by JPY 18.8 billion to JPY 1,520.8 billion. However, we are already promoting cost-reduction measures to cover the increase in electricity cost. We intend to reach the annual plan through these concrete measures going forward. As for profit, this went up JPY 2.2 billion year-on-year and reached JPY 1,032.5 billion due to non-recurring factors, such as the corporate tax. As for overseas operating income margin, this increased 1.0 point, up to 6.4% due to increased profit from increased revenue as service cost reduction based on structural transformation. Please turn to page 5 of your material. This shows the contributing factors by segment. As far as the Integrated ICT business segment is concerned, while there was negative impact from price reduction in the consumer communication business, this was amply covered by the increase revenue and cost reduction efforts in our Enterprise business and Smart Life business. So both operating revenue and operating income increased year-over-year in this segment. Turning now to regional communications segment. On top of the higher-than-expected increase in electricity costs, the demand for fiber service for remote work and online classes has more or less run its course. Also, there was no one-off positive factor, no positive recurring factor, non-recurring factors, such as Olympic Games in the previous year. So in this segment, we saw operating revenue and operating income declining. Now, on top of introducing concrete cost reduction measures to cover increased electricity costs, we will aim expanding revenues from system integration growth business. And thereby, we hope to achieve the annual guidance through these measures. Turning now to the Global Solutions Business segment. Due to increase of revenue from strong demand for digital services as well as expanded time value services at NTT Limited as well as cost reduction at NTT Limited related to structural transformation, in this segment, we saw both operating revenue and operating income increase year-on-year. Now as for others, which relates to real estate and energy-related business, on top of increase in electricity agency business at ENNET due to increased revenue from electricity fees reflecting the rise in commodity prices, operating revenue increased year-on-year. Let me now turn to the 4 topics if I may. Please turn to page 7. First, I would like to talk about our initiatives to resolve food and environmental issues, if I may. We will form a planning company in the furtherance of establishing a greenfield business with a company called Regional Fish Institute Limited in March this year. Let me show you this chart. As a matter of fact, at NTT Research Institute we have [indiscernible] and they are focused on genome editing for Algae. In the case of Regional Fish Institute, they have genome editing to enable growth of shellfish and seafood. So at NTT Research Institute, we have genome editing for Algae. CO2 absorption can be enhanced by 1.54 against the Regional Fish Institute technology that relates to genome editing for increasing the fish meat. That technology also allows to again, observer CO2, although it does vary from fish to fish. So let me try to cite an example here. We have Blowfish. In the case of Blowfish, you can expand the flesh by twofold through their technology. So we can combine these 2 technologies together that we can actually grow algae, which absorbs CO2. And that algae can be used in the aquaculture business and used that as a feed force where is blowfish and have the fish meat increased by twofold, then that one can actually absorb the CO2 and can fixate the absorb CO2 which means we can address both, we can resolve both within the very issues through these technologies. So we tend to go with sustainable land-based aquaculture system, and that is what we would like to propose going forward. Now we plan to establish a joint venture between the planning company and Regional Fish Institutes in the first half of fiscal year 2023. We hope to resolve various social issues through this endeavor. The Skyloom Global Corporation with the aim of property realizing global expansion, space compact and Skyloom Global Corporation will jointly develop an optical data related service business for high-speed transmission of data from the layer satellites into the ground. We will launch 3 geo-stationary orbit satellite jointly with Skyloom and one GEO independently to provide global coverage. Initially, we will launch one GEO over Asia and start business operations at the end of FY 2024 and then gradually expand the coverage area. Compared to existing services, this will enable high capacity, new real-time data transmission from observation satellite to ground stations. Please go to page 9. I'd like to update how the remote working is being utilized, and we have introduced the system in July last year. And it has been about 6 months since we introduced the work system with working remotely as standard, which allows employees to work with no limit set on places and residents as the number of employees eligible for the system has increased by approximately 10,000 and also we have seen the number of employees posted alone away from their families decreased by about 900 due to the introduction of the system. And when combined with the increase of approximately 500 employees who have newly started working away from the family, the total number of employees posted away from their families decreased by approximately 400. We will continue to expand the number of employees covered by the system and enhance lifestyle and work side options for employees. We are not going to the details, but the results of a survey of employee attitude towards remote work is shown on the next page, page 10, for your reference. Basically speaking, the satisfaction level of the remote working and also the productivity change and the employees have responded positively adds to the results of this system. And this concludes my presentation. Thank you.
Thank you very much. [Operator Instructions] Yes, we have the first question. Over to you, sir.
My name is [Nagata] from NHK Broadcasting. If I could ask a question that is not related to financial presentation. I would appreciate your comment about your thoughts behind possible wage increase. The labor union's position I am thinking, it's not yet clear because they have not yet presented their official request. But considering the recent price increase, I think the reduction is that the unions will be seeking increase, which is in part which is in line with the increase in the prices. What is your wage increase.
It is true that we have not yet received the official request from the union. So therefore, this will be decided as an official discussion with union going forward. So that being the case, I can only respond in the very general sense. Over the past 9 years, our company has continued with a steady wage increase. From about 10 years ago, I would say that CPI has been increasing at about the rate of about 5% up until last year, at least. So that was the situation. Because of the internal promotion, we have actually increased in wages as much to 25% inclusive of the bonus. So yes, there is the inflation timing. Regardless of inflation timing, we have continued to steadily increase wages for our employees over-time. So be it inflation or be it deflation, regardless of the situation, I think that routinely we increased the wages for the employees. We believe this is very important. So if you bear that in mind. In case when we announced the second quarter results of last year, we actually increased the wage increase. We increased the wage 14% for people who we hired, we will be changing our personnel system. So to review the personnel system, you have to be prepared for cost in the transition period. Because of that, it's important that we strike a balance for the overall system and engage in our discussions with union in a very sincere fashion. Naturally, we are mindful of the increase in the prices these days. But I think the basic policy is that we continue to increase our wages. That is very important. Have I responded to your question? Have I answered your question?
We now like to take the next question. Those of you who have questions, please raise your hand. Yes, the person in black suit in the front row, please.
Well, just to follow up on the discussion just now. And as for the economic outlook, I would like to invite your comment on that.
You mean Japanese economy global or Japanese. Well, on a global scale, Ukraine war is just ongoing. And in line with that, energy-related issues. And in the last one year or so, we have been placed with a major change in the environment. And for Japan, what is the biggest factor, a big energy price increase. And I think this is one of the largest challenges before. On our part, in our earnings, well, results, approximately 40% increase in electricity cost and due to the energy cost increase. So this with the cost reduction efforts, we would like to absorb this cost increase, but if this is to continue on and vis-a-vis the Japanese economy, the energy price increase is going to give a very big impact. And so how to manage all these cost increases and while the business community as well as well the political arena will all of us have to consider how we are going to manage that. And in that context, also, we have to aim at achieving carbon neutrality. And for the humankind, this is the great mission that we have to achieve. And so how to realize such a transition, and that is also the challenge we have to address as centering around energy issues, and we have to really have the outlook of the economy in the next fiscal year. Now outside of Japan, inflation is accelerating. And with that, there are rate hikes and others. But related to our businesses and [indiscernible] the IT domain, we have not been that affected. And take for example, data center business in terms of orders received, we are seeing a very strong performance. And in terms of capital investment compared to the planned investment plan, we need to increase well more so that we will be able to catch-up with the increasing demand. Of course, going forward, for example, we're centering around Europe, what the -- if there may be some slowdown of the economy, then we also have to think how we will be addressing that. But definitely, the world is for more or less becoming data-driven society. And for us, I think for those are the opportunities just we have in front of us, and that's it.
Well, KDDI SoftBank has announced a real scheme. I would appreciate your comments on that scheme. As far as DOCOMO is concerned, I think going forward, will they be partnering with that scheme Actually, I thought it might be actually teaming up with DOCOMO. I think you were somewhat behind the trend. But Mr. Shimada, what is your impression of that arrangement. And how do you see the current status? I would appreciate your input.
As far as discussions are concerned, yes, we are engaged in discussions. So I don't think we'll be that behind. And we think just at about the same timing of margin, we should be able to demonstrate this. Now I think all parties are supposed to refrain for sharing the details. So I would like to refrain from commenting on the details at this juncture. But as far as the real situation is concerned, as you know, last year, we had network interruptions at KDDI last year. And subsequently, as far as we are concerned, NTT West and DOCOMO has also faced with network interruptions. So I think there is a recognition that we need to further reinforce our resilience. I think we all share that same recognition, as it's important that we'd be able to deliver similar services without too much delay under those circumstances. So that being the case, what incentive group's efforts to reinforce its resilience. This is something which we have been discussing. Hopefully, 2025, we hope the JPY160 billion roughly, network resilience investment can be done. That is the plan we have toward 2025. But we're still discussing the details as we speak. So I hope that at the appropriate time, you will be able to share with you the details of our plan. We're looking forward to that opportunity.
If I can ask one other question, if I may. The interactive AI is now being delivered by large giant tech firms in the US and many startups are also focusing on interactive AI. So will NTT Group be involved in this? How does NTT Group see this interactive AI. How do you see the outlook for interactive AI going forward? I would appreciate your thoughts.
When it comes to artificial intelligence, AI, I think it is now more or less a commodity now this is an era where AI is incorporating all aspects of our lives. For example, the delivery of enterprise services to diverse corporate clients, we do incorporate AI in that service delivery. For example, in their customer centers, in the customer sensor system, actually from quite a long ago, we've been introducing AI which means that customers' questions are fielded by AI showing the most appropriate response on the screen. And also, all the voice-related voice translating into text, that is now done based on the AI technology, which means that my all sorts of field AI has already spread and has become more common. So it's not that we saw a rapid increase in AI just recently. It's not a quick increase actually. AI is going to be incorporated by different companies, their strength and features from company to company. So I think we will face the situation in a very open-minded manner and we're not fixated on our own AI development or initiatives. This involves deep learning. So the data, which allows for learning, the output will depend on the data. So because of that, I think it's important that we should seek collaboration in various ways.
Then a person in blue shirt at the very well back row.
And I have 2 questions actually. And as for the remote working and those one who are posted away from home, 4,500. And probably it's very difficult to really reduce it down to zero. What is your outlook as to what extent you can reduce the number of these? And also, employee survey. Just about half of them really were at least will work remotely time, 2 days a week. And so could you tell me how many days a week you are really are remotely working.
Firstly, I would like to keep it secret because I am really well meeting with the customers outside and I am quite frequently visiting customers. And so I think if that could be well counted as the remote work, I am doing quite a lot of remote working. And so I am also coming to the offices quite often. So unfortunately, I think I am not really satisfying this work standard. And well, 400 employees reduction, how to really assist this and during the same period last year and then what was the status for those employees posted away from their families and there was full reduction by 35 out of 5. And so compared to that, this time around, and with the introduction of this new system of the remote work as standard and by the introduction of this system, we were able to see this reduction in the numbers. And because last year, there were almost no change. And they will, of course, after -- well, you have this quality employees well, push it away from their families and they would really come to home and then there could be another or other people transfer. And so continue to sort of generation of these employees. But together with the introduction of fiscal remote work as a standard, I think this has been quite effective in this. And our hope, well, to the extent possible, I'd like to minimize these people who have posted away from their families, but the branch managers or those for people in the managerial positions with these responsibilities and then well, we cannot just help, but to have some who will be working away from their home. And so we need to really well look each individual regions and also we have to combine different HR or personnel system to really promote the change in work styles.
Next question, please. Yes, the person in the black suit.
[indiscernible] I would like to ask 2 questions. My first question is about the electricity fees, the impact of the electricity fees. In the previous financial presentation, you mentioned that the operating income, JPY60 billion is envisioned. Turning to next fiscal year, will this amount be expanding? Is that a possibility? And also this fiscal year, the impact was more or less absorbed through cost reduction efforts. But if the impact were to expand further, are you going to consider passing on the price to the customers. I would appreciate your response.
As you pointed out, the impact this year was more or less JPY 60 billion on an annual basis as we talked about when we announced the second quarter results. JPY 45 billion is the number as of the third quarter. Turning to next fiscal year, what will be the case. Well, when we take a look at the trend of the NAND power companies raising the prices, I think next year as well, we had to prepare for that level of increase as well. The numbers are not yet fixed of, I'm sure. But I think we should -- I think there's a probability that the electric prices could increase by the same range next fiscal year. That possibility is there. And of course, the government is talking about providing some sort of support -- so maybe just maybe that could translate into reduction of the corporate burden. But still, even with that, there's going to be a possibility that the burden will be increasing next year. In terms of the bilateral business arrangements that we have with various corporate clients, to the extent possible, we hope that we'll be able to ask them to share the burden of increasing electricity prices. But then having said that, to what extent how can we improve efficiency on our own? How much absorption can we have? We will do our best naturally to absorb the cost increase. But if there is a straight line increase, there is a limit as to how far we can go. So therefore, we hope to gain the understanding of the customers. And steadily, prices are to continue to increase going forward at an appropriate timing, we hope that we'll be able to ask the consumers to bear that cost, that possibility is there. But for the time being, though, we want to make sure that we make our own efforts, so they'll be able to reduce the -- to absorb the cost increase as much as possible.
My second question. Now global segment has actually driven the performance this fiscal year. Am I being premature. But what about next fiscal year? Which segment will be the driver for your performance next fiscal year? Will similar trend be continued for fiscal year 2023.
Well, as far as the global business segment is concerned, as was explained by the financial presentation by NTT data as well, the demand for digital services remains very robust. So I think digital business will be the driver. We'll be driving our performance. And the other area, data center business, as we talked about earlier, this remains very, very strong. As of third quarter, you find this data actually, compared to last year, the sales has expanded by 1.5-fold year-on-year compared to the previous year. So demand is very strong. We see very strong appetite among the customers. Actually, we are considering inclusive of the funding of third parties, we are considering JPY 300 billion investment for data centers, including the capital from third parties. However, we have received so much orders. And we're very, very happily surprised, but we have received so many orders. I think we increased our investment if we are to respond to the customers' demands. So maybe several tens of billions of yen might be required toward the year -- towards the end of this fiscal year. That is the level of the orders which we are receiving, which means that there is in the business in the global and also digital business, I think these 2 businesses will continue to drive our performance down the line. Also, what about others? Of course, we had to wait until the fiscal year is actually over, but we take a look at the numbers, DOCOMO ARPU. In the second quarter was JPY4,018, but then this year, JPY4,090. So this could drop towards the end of the fiscal year, but we see that the mobile ARPU has actually been able to increase due to -- and the impact of the pressure reduction has one less run its course. Customers are now switching to large data bucket plans. So I think we see an improvement in the overall environment for that business.
And in the very first row and the person in black sweater. Please.
[indiscernible] I have 2 question. And at the previous earnings results announcement, I really asked the question as well the burden of the electricity cost and the number was presented. And the cost reduction measures to offset this electricity cost increase and where and how are you going to address this more in concrete terms?
Basically NTT West and East and DOCOMO are bearing this electricity cost increase. And West and East do will have a larger burden because they do have more the exchange and switching equipment. Now while the DX digital transformation that we have carried on to-date and to accelerate more. And so that's sort of the focus of their efforts now. Well, in the past, we would front-load some of the plans and to reduce cost and -- so the steady efforts need to be made. Otherwise, we don't really will have other choices because we cannot do anything about -- so much about developer cycles. And so all we can do is to reduce our expenses. And then we have the certain level of the CapEx or the capital investment needs to be done otherwise we will have the problem related to quality. And also in terms of the service we offer, in particular, for example, the fiber optics, and we need to really ensure on the investment for that. And also, NTT DOCOMO needs to deploy more 5G. And so depreciation cannot be readily be reduced. And so what we can do is to look to expense spending and we have to accelerate what we have been doing and to really well accelerate all the efforts. And there are no -- virtually no other choices, but to work on that. And so for a certain period of time, we need to accelerate the speed with the efforts made by the employees. But can that be really continued forever. That might be very difficult. And so we have to well consider that when we are to develop the business plan for the next fiscal year and to how to observe the electricity cost increase. And within our group, we would like to bring all our wisdom together to see what we can do. And so this is quite a challenging issue that we need to address.
And the spring set hike negotiations and will -- you have already explained your future policy. Now from the labor unions and JPY100,000 and for this was a one-time sort of increase and 3% will increase. And so I think for that was set in response to all the voices of the employees and then 2% is the sort of the load to the others. And then the base salary increase or the allowances, which way would be better? And if you could share your view as to how you are looking at this as a President.
And as I said earlier, basically, as for the wages, of course, were inflational factors need to be taken into consideration. That's how we recognize the need for that. But well, if that is the case, well then in the deflationary trend, are we going to reduce it. That's not how I would look at it. And inflation and then the inflation should be valuating and increased basis. Then conversely, when there is a deflation, we are to decrease the sort of salary raises. And so we have to really come together and to really identify sort of the appropriate and reasonable level. And basically, we are to increase wages. And I think basically, I am well in favor of the wage increase or solid increases, and that would be the core part of our management. But let's say, well, extremely, if there is inflation of 10% and are we going to really well increase the wages by 10%. And then in the deflationary trend, we are to really reduce these wages and that would be too extreme and excessive. That's not the kind of discussion I'd like to have.
Next question, please.
[Mishka] from Nikkei Shimbun. I would like to ask about the reserve food and environmental issues. What is the scale of the business that you would like to address going forward? What is the that to scale this business? Also in the past, you were at the more programs in Las Vegas, Las Vegas outside Japan. Not NTT Data is now doing demonstration project in Colombia. So it seems that after the COVID-19, I think you're now beginning to resume your global activities that is at least my view. But going forward, what are going to be the places which you will emphasize in terms of global business in the future?
With regard to the Smart City business, this is, of course, the global business. And globally, I think this is spreading very steadily. We started out in the United States. We first started out in Las Vegas. But we are now seeing a spread of the cities, outside the state of Nevada. It was based on telecommunication safety issue, that was the focus in Las Vegas. But now because of COVID-19 management of people flow and also with regard to physical distribution and logistics delivery, AI was incorporated and analysis was done. So the analytics of social media that was done in the state of Florida, for example. So as the United States, the Pacific Australia and New Zealand and also in Japan, we have begun to embark on this project. Also in Southeast Asia, we are beginning to expand this program. So steadily, smart city type of projects are increasing and spreading. I do not have the number on hand, but it is not contributing to revenue and sales as well. What's the first part of your question. Can you repeat the first part of the question? Yes, the food and environmental issues. Well, we are not just sitting up and planning company at this juncture. So when the company is actually established how much sales we're going to end for, can be explained when the company is actually up and running. But in Pacific, we want to expand the land-based eco system to Japan, which means that the number size evolved will be quite a large number. But having said that, can we envision the size of the revenue from this business? I'm afraid -- I apologize, we are not yet at the juncture simply at the level of the concept. Well, in the first half, as you can see in the first half, we're going to be setting up a joint venture in the first company. That is our aim. That is the discussion we're having. Every time, this company is set up, maybe we'll be able to share with you some sort of size in terms of the revenue we expect.
You mentioned that you didn't have the number. But are we talking about billions or tens of billions?
Well, with regard to the Smart City, $1 billion number that we explained at this moment, I think we're now close to $600 million, we're half way there. So $600 million.
Any other questions? And we now like to take questions from the journalist joining online. And if you'd like to ask questions, well, please push raise hand button and then when you are asking the question, well, please unmute yourself by clicking on the microphone icon. Are there any questions, please? There seems to be no questions from online. And so those of you in the room, yes, for the person in the second row from the front.
And as for the business performance of NTT DOCOMO. And I'd just like to confirm the CapEx trend compared to the previous year's level.
It is well going down. And I have just taken a look at breakdown. And then see corporate and Smart Life is increasing, but the consumer is decreasing. And so in view of the cost increase, how to observe that cost increase and the number this year is reflecting this was a cost increase or are there any other factors that you have some delays in the construction and installation. Any other factors associated with this. And as for the consumer communications for business and the CapEx for the communications facilities and by improving efficiency, and we are really having some gain. It would decrease in CapEx. But I would believe towards the end of the year, it will come back a little. And then we do have the investment for 5G is somewhat delayed. And I think it will catch up eventually.
Another point, dual SIM and KDDI SoftBank will have been working in this both of them and vis-a-vis, the presence of MVNO, they are not so active or forthcoming. And they are clearly saying that, but they were in case of NTT Docomo economy MVNO, which will be somewhat while having -- coming into their businesses. And also, we have already mentioned former President have talked about the MVNO in view of the consumers. And so MVNO, well, what it be reset of the ideal positioning of MVNO vis-a-vis the consumers?
And we have not started discussing with MVNOs yet. And SoftBank, KDDI and together with them, we have been engaged in discussions. And so I think for that where we should start because of these carriers with the major volume and then to really establish the backlog system, that would be the key. And so that's how we would like to start off. And then how to really collaborate with the MVNOs, that will be -- was something we are going to do in the next phase. So at least amongst the 3 players, and then we would like to organize ourselves and to align the specifications. I think that's the stage where we are now in. So if you could just wait for a while or yes, please.
Thank you for your information. And would it be the sort of full level of the rate of tariffs for that service?
[indiscernible] was saying that there were also over hundreds of years. I think, well, that's about the level we are looking at.
This will be the final question. This will be the final question of this session.
[indiscernible] I would like to ask for confirmation or clarification because of dual SIM, you mentioned that you were seeking introduction at the timing. So DOCOMO and KDDI, they have announced around end of March. So are you going to try to make it in time for the end of March? Is that my understanding?
But with regard to the timetable in dates, it is not yet clear. So as we're ready, I think that would be my response.
I think the time has come. And if there are no further questions, yes. Yes, we would like to take very last question.
Well, this is the second round of my turn. And I'd just like to really ask questions. Wage and work-style and these are the themes that should be addressed. And also, the government is also trying to really well improve the liquidity in the labor market and so to really increase the competitiveness in the industry and to really will improve our ability to grow. And also, the range should be increased for the current generation of the employees. And so well, Mr. Shimada, what is your view as to the labor market? And also, well, in your group, you do have a large number of employees. And also, you are faced with the rapid change of your business environment. So how would you look at this?
And this time, well, from April and they were depending on the level of the properties, we are to have new personnel or system. And so we are to really well take measures to improve this level to more of the global level. And then on a global basis, they are really well getting paid on the skills and also the level or degree of professionalism and the evaluation appraisal is also done on that basis. So we have to bring Japan closer to the global level. And so in a specific professional field and the liquidity, it can be really secured. And so far in Japan in each of the company, well, there were some yardsticks or the measurement indicators. But outside of Japan, there is a kind of a guild and trade associations were there and also they do have the sort of established criteria to really understand the level of the professionals. So they will be able to compare themselves in the industry. But not so here in Japan because we're in Japan, each specific company, it has its own yardstick to evaluate the level of professionalism and then they have determined the compensation or remuneration. And so while here in Japan if you have focused on this more, and then we will be able to have more of the liquidity or the flexibility, mobility of the market can be enhanced. And also if they go out of the entity and then well, many people are calling NTT as a preschool. I think they can just work and will work for them. And then they also are welcome to come back to us. And there could be a different career path in different ways. And so the experience working for different companies, it would be a very important key factor for their career development. And so I think that is the direction and the Japanese society should go. Not just the of job and also living in the outside of the big cities, and we were interviewed and also from Tokyo to [indiscernible], some employees have relocated themselves. And because of the work style change, we have more of the support to facilitate that kind of transfer or relocation. And then that might be one of the measures to deal with the decline in rates, for example. Of course, some of the employees have to provide nursing care and also the type cars. And so they are in the different life stages. So we would like to really make our system, which would really will enable them to really work in different work styles. And also that would -- we enhanced the liquidity or the mobility in the labor market and so the job types. And so I may be exaggerating, but this might be also one of the solutions to deal with the lower growth rate in Japan.
With this, we would like to conclude the press conference of NTT. Well, thank you very much for your attendance today.