Overview Key strengths Key risks The largest company in Japan's telecom market, with a solid customer base Deteriorated earnings in its telecom business in recent years, which are unlikely to recover significantly in the next one to two years World-class technology Fierce competition and slightly weak competitive position in the growth area of IT service business relative to telecom business Ability to generate stable earnings and cash flow from telecom business Likelihood of key cash flow ratios remaining somewhat weak for our ratings due to growth investments and substantial shareholder returns Consolidated revenue underpinned by solid earnings growth from telecom-related and IT service businesses and groupwide cost reductions Extremely strong interest coverage ratios that support financial standing backed by solid
