Green Finance

ESG-related financing initiatives

Introduction
Major Initiatives

Introduction ｜Major Initiatives

About Green Finance initiatives
Promoting growth and solving social issues at the same timeAchieving carbon neutrality by 2040.
To achieve such a big goal, a huge investment will be required.

Lead in financeThat's what we do at NTT Finance.

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Introduction ｜Major Initiatives

Green Finance Initiatives (FY2020-FY2021)
NTT Finance Implementation：

June 2020
NTT Group's First Green Bond Issue~ Target Project is Green Building ~September 2021
New Environmental Energy Vision Announced~ Issuance of green bonds is one of the main initiatives. Utilize domestic and overseas markets. Promote your vision
globally through publishing ~September 2021
Formulation of new framework~ Expansion of targeted green projects to facilitate continued publication ~●(Old Framework) Data Centers, Green Buildings, Renewable Energy●(New Framework) Added 5G investment, FTTH investment, and R&D to realize the IOWN concept in addition to the old three
categories

October 2021
Second issue: NTT Group green bonds totaling 300 billion yen(domestic bonds)
December 2021
Third issue: NTT Group green bonds totaling 1.5 billion euros (about192 billion yen)4

Introduction ｜Major Initiatives

Green Finance Initiatives (FY2022)
NTT Finance Implementation：

June 2022
Formulation of a new framework for utilizing loans~ NTT Group Green Finance Framework ~July 2022
Fourth issue: NTT Group Green Bonds totaling US $1.5 billion(approximately ¥210 billion)
August 2022
Originated the first green loan totaling 100 billion yen~ Norinchukin Bank 75 billion yen, Mizuho Bank 25 billion yen ~March 2023
Established the largest green syndicated loan in Japan and a total of360 billion yen in green loans
5Introduction ｜Major Initiatives

Green Finance Initiatives (FY2023)
NTT Finance Implementation：May 2023
New medium-term management strategy announced

July 2023
5th issuance: NTT Group Green Bonds totaling 380 billion yen (3rdissuance in Japan)

November 2023
Sixth issue: NTT Group issued a total of 220 billion yen in green
bonds (fourth issue in domestic bonds)

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Introduction ｜Major Initiatives

Financing using the Green Finance
Framework (approximately 1.8 trillion yen)
ProcurementtimingType

LenderCurrency

AmountJune 2020

Corporate bonds (greenbonds)-Yen

40 billion yen

October 2021

Corporate bonds (greenbonds)-Yen

300 billion yen

December 2021

Corporate bonds (greenbonds)-Euro

1.5 billion euros(Approx. 192billion yen)

July 2022

Corporate bonds (greenbonds) *See page 8-

USD

US $1.5 billion(Approx. ¥210billion)

August 2022

Borrowing (Green Loan)

Norinchukin BankYen

75 billion yen

Mizuho BankYen

25 billion yen

Borrowing (GreenSyndicated Loan)

48 banks (arranged byMitsubishi)
New 26 banks joined

Yen

129.8 billion
yen

Borrowing (Green Loan)

Mega, etc. 9 banks

Yen

230.2 billion
yen

July 2023

Corporate Bonds (GreenBond) *See page 9-Yen

380 billion yen

November 2023

Corporate bonds (greenbonds)-Yen

220 billion yen

March 2023

Use of funds
green building

・5G investments
・FTTH-related investments
・Research and development
for the realization of theIOWN concept
・Renewable energy projects■In addition to the above, financial institutions have their own ESG-related track record (¥350 billion)

7Introduction ｜Major Initiatives

Issuance of green bonds (global bonds)
global bond market➢ our company's first dollar-denominated green bond in the global bond market as part of long-term financing➢ In a fast-moving market environment, we raised more than 8 times the demand, mainly in the United States, and raised a
total of 207.7 billion yen worth of bonds➢ The funds will be used for NTT Group's various green-related capital investments

Marketing schedules andSales by region② European market③ American market

Japan time: 17:00-1:00
Local time: 9:00-17:00① Asian market

Japan time: 22:00-6:00

9:00-17:00

Local time: 9:00-17:00

Sales Amount
US $150 million

Sales Amount(20.4 billion yenequivalent)

US $1.11 billion
Sales Amount(153.5 billion yenequivalent)

US $240 million(33.8 billion yenequivalent)

Publish Format

144A / Reg.S（Global Bonds）

date ofdeterminationof conditions
July 20, 2022

issue condition (interest rate)

2 years: US $500 million (4.142%)
3 years: US $500 million (4.239%)

Rating※2 A（S&P）
A1（Moody’s）*Converted at the original exchange rate ($1 =138.49 yen)

Use of Funds

5Investments related to 5G, FTTH, etc.

5 years: US $500 million (4.372%)*2 This year, Moody‘s is newly rated A1, which is the same as the holding company.

8Introduction ｜Major Initiatives

SDGs bonds issued by domestic companies
become the largest everWhile the bond issuance environment has improved compared to last year, inJuly 2023, Japanese companies realized the largest ever green bond issuanceand the largest bond issuance this fiscal year, after assessing the bondissuance environment and interest rate trends in Japan and overseas!

Total issuance: 380 billion yen is the largest SDGs bond ever issued by a domestic operating company (more than 300
billion yen in the previous bond)Number of investment proposals: 195, the highest ever per 1 bond issue (more than 163 in the previous bond)9Reference
Media Articles

Reference｜Media Articles (Nikkei Shimbun/Bloomberg)

11Reference｜Media Articles (Nikkei Shimbun)

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Reference｜Media Articles (Nikkei Shimbun/GlobalCapital)

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Reference｜Media Articles (Nikkei Shimbun)

2023/7/14 17:56 日本経済新聞 電子版

14Reference｜Seven awards from outside organizations
including the Ministry of the Environment Ⅰ
Winner of the "Bronze Award" at the 3rd the Ministry of theEnvironment ESG Finance Awards Japan (Fundraiser Category),sponsored by the Ministry of the Environment
Awarded in recognition of green bonds of 300 billion yen for domestic bonds and 1.5 billion euros (192 billion yenequivalent) for foreign bonds in October and December 2021
In the ICT business, Japan's first case of green bond issuanceIn terms of promoting the introduction of renewable energy, mainly solar power, we highly value the results andnovelty within the telecommunications industry.

Winner of the Bronze Award at the 4th the Ministry of theEnvironment ESG Finance Awards Japan (Fundraiser Category)hosted by the Ministry of the Environment for the second
consecutive year
For the second year in a row, our company won first place in the"Best Corporate Bonds for Institutional Investors" category of the"Deal of the Year" announced at Nikkei Veritas on January 16, 2022.
Our 300 billion yen green bond, issued in October 2021, was highly praised by the market.
Contributes to the expansion of the domestic ESG bond market, which has a small presence, and is attractive forinvestment compared to ratings

Winner of the Green Bond Award in the Sustainable Finance Award
Program sponsored by the Japan Institute for Environmental Finance
Winner of the Green Bonds (yen bonds and foreign bonds) issued in October and December 2021

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Reference｜

Seven awards from outside organizations
including the Ministry of the Environment Ⅱ
Bond Awards Yen Bond of the Year at IFR AWARDS 2021 sponsored byRefinitiv
This award is a global award October 2021 Awarded in recognition of a green bond worth 300 billion yen in domesticbonds.
Demonstrated how to maximize the offer of ESG bonds, demonstrated the eagerness of Japanese investors to support
the sector, is the largest green bond in the domestic market and one of the world's largest green bonds by a single issuer.
Despite the rise in government bond yields, the coupon was raised lower than the 1 trillion yen issue in December 2020
(at the time of DOCOMO's takeover bid).
NTT announces new environmental and energy vision aimed at achieving carbon neutrality by fiscal 2040. We also
succeeded in expanding green projects by updating the Green Bond Framework.
Our company won the first prize with 1 trillion yen of domestic bonds issued in December 2020 at the time of DOCOMO's
takeover bid, and this is the second prize.

Received "Offshore Bond of the Year" at DEALWATCH AWARDS 2021
sponsored by Refinitiv
This award is for Japanese publishers.
This award was given in recognition of 1.5 billion euro bonds issued in December 2021.
In addition to the domestic bonds, which were the issuer's first green bonds in overseas markets, the total amount of500 billion yen was raised in recognition of the issuer's efforts to achieve carbon neutrality.

Winner of "BEST DEALS OF 2021" at Capital Eye Awards 2021 sponsored by
Capital EyeAwarded in recognition of 300 billion yen bonds in October 2021.
With a total of 300 billion green bonds, it is the largest Japanese ESG bond ever and the largest global operating company.
While ensuring transparency through the POT method, it collected nearly 900 billion yen in demand from 286 investors andmade a record 163 investment announcements. Following its own 1 trillion yen deal in December 2020, it contributed to therevitalization of the Japanese corporate bond market and subsequently issued bonds denominated in euros.

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