Ntt Inc · TSE:9432
Ntt — Investor Presentation (October 2023)
34 slides from Ntt's investor presentation, Oct 3, 2023
Slide 1: NTT Group's Smart Energy Business
NTT Group’s Smart Energy Business October 3, 2023 © NTT CORPORATION 2023 0
Slide 2: Presenters: NTT Anode Energy and Green Power Investment
NTT Anode Energy Corporation President & CEO Teruyuki Kishimoto Green Power Investment Corporation Executive Director and Vice President Head of Business Development Nobundo Koumura © NTT CORPORATION 2023 1
Slide 3: Forward-looking statements disclaimer
This document is a translation of the Japanese original. The Japanese original is authoritative. 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, pro
Slide 4: Topics for Discussion
Topics for Discussion １．Current Status of NTT Group’s Energy Business ・ NTT Group’s Carbon Neutrality ・ NTT Anode Energy Group’s Business ２．Expanding NTT Group’s Green Solutions ・ Green Solutions for Businesses ・ Green Solutions for Local Governments ３．Furthering the Growth of NTT Group’s Energy Bus
Slide 5: Current Status of NTT Group's Energy Business
Current Status of NTT Group’s Energy Business © NTT CORPORATION 2023 4
Slide 6: Targets of "NTT Green Innovation toward 2040"
Targets of “NTT Green Innovation toward 2040” FY2030 Reduction of NTT Group’s greenhouse gas emissions by 80% (compared to FY2013) Carbon neutrality for the mobile (NTT DOCOMO) and data center businesses FY2040 Carbon neutrality as NTT Group Energies Source: Created from “NTT Green Innovation to
Slide 7: Outlook of NTT Group's Energy Consumption
Outlook of NTT Group’s Energy Consumption BY replacing legacy facilities with IOWN, energy consumption will be reduced by approximately half by FY2040 Renewable energy will be adopted for the remaining half to achieve carbon neutrality Outcome Approx. doubled (compared to FY2013) Energy Savings
Slide 8: Achievement of a Circular Economy Society: towards Net Zero
Achievement of a Circular Economy Society: towards Net Zero NTT Group is going to expand “NTT Green Innovation toward 2040” to Scope 3 by FY2040 Source: Excerpts from NTT’s Annual Report 2023 © NTT CORPORATION 2023 7
Slide 9: Acquisitions of Renewable Energy Sources
Acquisitions of Renewable Energy Sources 2.69 billion kWh renewable energy in June 2023 with under development projects As a result of the acquisition of GPI in August 2023, the 2030 target is now within reach Annual energy consumption exceeds that of all households in the city of Yokohama* (App
Slide 10: NTT Anode Energy Group's Business
NTT Anode Energy Group’s Business Achieve Society-Wide Carbon Neutrality Pre-Transition Post-Transition （before July 2022) (from July 2022) NTT Anode Energy Consumer Energy Business NTT Anode Green Power Energy Local Grid Business Electricity- Generation Business Related Operations Construction, Ope
Slide 11: Expanding NTT Group's Green Solutions
Expanding NTT Group’s Green Solutions © NTT CORPORATION 2023 10
Slide 12: NTT Group's Green Solutions
NTT Group’s Green Solutions Develop solutions that leverage the strengths of each group company in order to support customers and local communities to achieve carbon neutrality. NTT Anode Energy Group Consumer Energy Business docomo Denki Green Power Generation Business Local Grid Business ・Carbon
Slide 13: Green Solutions for Businesses
Green Solutions for Businesses Provide comprehensive solutions including GHG emission reduction planning / execution and retail service of renewable energy. Support customers including their supply chain to achieve carbon neutrality Support for GHG Providing Energy Saving/ Emission Reduction Vis
Slide 14: Seven & i Holdings Case Study
Seven & i Holdings Case Study Certain stores were the first in Japan* to adopt renewable energy from offsite PPAs and achieve RE100 standards NTT Anode Energy Seven & i Holdings Chiba Wakaba Solar Power Plant ■ Seven-Eleven Stores [Offsite PPA: New Facility] Electricity + (40 stores) Environmental
Slide 15: NEC Platforms Case Study
NEC Platforms Case Study Provided support for carbon neutrality in IOWN product manufacturing at NEC Platforms’ Fukushima factory NTT Anode Energy NEC Platforms NTT Group Fukushima Factory 100% Offsite Renewable Energy PPA Products Manufacture of IOWN Purchase of IOWN 100% Renewable Products with
Slide 16: C-Turtle GHG Emission Visualization Platform
C-TurtleⓇ GHG Emission Visualization Platform Compatible with each of Scopes 1, 2 and 3, enabling accounting and reduction of emissions throughout the entire supply chain © NTT CORPORATION 2023 15
Slide 17: Green Solutions for Local Governments
Green Solutions for Local Governments Achieving local production for local consumption of energy with renewable energy generation, storage batteries, EMS and other technologies Providing efficient and stable locally generated energy to local public facilities, enterprises and others Consulting A
Slide 18: Decarbonization Leading Areas Initiative
Initiatives for the Ministry of the Environment’s “Decarbonization Leading Areas” Initiative NTT Group supported 8 of the 62 local governments selected through the third round of the initiative Work with the local governments for local renewable energy production for local consumption system imp
Slide 19: Utsunomiya Case Study
Utsunomiya Case Study Trying to reach net zero CO2 emissions from private sector electricity consumption by FY2030 The regional power generation company, Utsunomiya Light & Power Co., Inc., in which NTT Anode Energy has invested, supplied the LRT* with renewable energy Utsunomiya Light & Power C
Slide 20: Fukushima Case Study
Fukushima Case Study Supplied renewable energy through the prefecture’s first onsite PPA for a public facility in Fukushima (the Fukushima Prefectural Centre for Environmental Creation) This effort contributes to increasing visitors’ awareness of carbon neutrality © NTT CORPORATION 2023 Fukushim
Slide 21: Chiba Case Study
Chiba Case Study TNcross Corp., which was established by NTT and TEPCO, provides backup power services to evacuation sites in Chiba Advancing natural disaster-ready urban development through decarbonization and strengthening resilience Constructing solar power generators and batteries at Award c
Slide 22: NTT Group's Green Solution Goals
NTT Group’s Green Solution Goals More than ¥1 trillion Targeting more than ¥1 trillion in revenue by 2030 FY2023 FY2030 © NTT CORPORATION 2023 21
Slide 23: Furthering the Growth of NTT Group's Energy Business
Furthering the Growth of NTT Group’s Energy Business © NTT CORPORATION 2023 22
Slide 24: GPI Green Power Investment
GPI Green Power Investment FIT Certified © NTT CORPORATION 2023 23
Slide 25: GPI's Renewable Energy Capacity
GPI’s Renewable Energy Capacity Approximately 2 million kW of renewable energy capacity, consisting of solar and wind power Assessed the financial value of each project Offshore Wind Onshore Wind Solar In Operation Under Construction Under Development © NTT CORPORATION 2023 24
Slide 26: Image of profitability of Renewable Energy Generation
(Reference) Image of profitability of Renewable Energy Generation Downward trend in E-IRR for solar power generation Higher E-IRR for onshore wind than solar E-IRR (%) 8 7 Solar Onshore Wind 6 5 4 Circle sizes correspond to the installed capacity of each project (includes projects under developm
Slide 27: GPI's Strengths
GPI’s Strengths Project execution with balancing both “Volume” and “Quality” at a high standard “Volume” “Quality” • 2.0 million kW FIT Certified • Three of the company’s wind power projects rank among the top High Level of five largest domestically Project Success in Project Social Acceptance • For
Slide 28: Illustration of Wind Power-Based Initiatives
Illustration of Wind Power-Based Initiatives Hydrogen Use within Sapporo and Ishikari Surplus City GPI’s Power Sapporo Generation Electricity Hospital SPC FCV （Specified Wholesale Supply Contracts） H2 Ishikari City RE100 Zone Hokkaido Electric Power GPI’s H2 Data Centers Transmission Renewable Logis
Slide 29: Regional Revitalization through Renewable Energy
Regional Revitalization that Starts with the Introduction of Renewable Energy Regional Fairs and Products (Regional Promotions) Regional products for sale at GPI Interregional exchange fairs at headquarters (GPI Tokyo offices (Aomori and Kochi) Headquarters) Educational Tour to Completed Power Plant
Slide 30: Towards a Sustainable Business: Beyond FIT
Beyond FIT Revenue generated from feed-in tariff (FIT)-generated power will drop in conjunction with the end of the FIT period NTT is working on the development and expansion of Non-FIT power generation as a pillar of new revenue Towards a Sustainable Business Solutions businesses using Non-FIT
Slide 31: Corporate Services Using Non-FIT Power
Corporate Services Using Non-FIT Power Directly providing Non-FIT power sources as renewable energy with high environmental value Providing power sources with long-term contract which reduce risk of sudden rise of electricity price Corporate PPA Services Current Customers Construction and mainte
Slide 32: Issues Facing Spread and Expansion of Renewable Energy
Issues Facing the Spread and Expansion of Renewable Energy Characteristics of Issues Facing the Spread and Renewable Energy Sources Expansion of Renewable Energy Fluctuations in Power Generated Highly Accurate Forecasting Depending on the Time of Day Data Types Generated Past data Power Electricity
Slide 33: Development and Operation of the Energy Distribution Platform
Development and Operation of the Energy Distribution Platform Developing forecast and optimization engines that achieve highly accurate AI- and DTC-driven data analysis The energy distribution platform offers optimized electricity from the aggregation of decentralized energy resources Energy Res
Slide 34: Grid-scale battery (Tagawa, Fukuoka pref.)
Grid-scale battery(Tagawa,Fukuoka pref.) © NTT CORPORATION 2023 33