[Company analysis] NTT Data Corporation (NTTデータ)

「NTT Data Corporation (NTTデータ)」 is engaged in data communication and system construction business and it has largest scale in Japanese system integration and information service industry. As a subsidiary of「Nippon Telegraph and Telephone Corporation」, this company has  an overwhelming position, especially in the public sector. The number of consolidated employees is approximately 118,006.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	NTT Data Corporation
Company name (Japanese)	NTTデータ
Date of establishment	Monday, May 23, 1988
Headquarters location	〒135-6033 東京都江東区豊洲三丁目3番3号
Capital	142,520
Consolidated sales	2,163,625
Consolidated operating profit	147,716
Consolidated total assets	2,476,062
Consolidated capital	966,809
Capital adequacy ratio	39.0%
Consolidated number of employees	118,006

 

 

 

2. Summary and Features

 
「NTT Data」provides IT system construction, operation, and maintenance services to various businesses such as public services, finance, retail, distribution, construction, and real estate. This company usually takes charge of financial systems such as Internet banking and customer information management systems for communication and electric power companies. They are also building the infrastructure for e-mail, Web access and payment services.

 

The origin of NTT Data's system construction business dates back to 1966. At that time,「Nippon Telegraph and Telephone Public Corporation」received approval for data communication services from government, and they established headquarter of data communication. From this time, this company was mainly focusing on system development for government agencies and financial institutions. Then, they started to expand its business area. As a result, data communication department of「NTT」developed a wide range of systems to support current Japan such as bank data communication systems, meteorological observation data systems, and postal savings systems.

 

In 1985, the department was reorganized into the Data Communications Business Headquarters, and in 1988 it was spun off as「NTT Data Communications Co., Ltd.」. At that time, the sales of this company exceed 1 trillion yen. However, since then, the Japanese public data communication system market has been shrinking, and as a solution to this,「NTT Data」continues to grow through M & A with overseas IT service companies.

 

Now, among Japanese IT companies, they have relatively high overseas sales ratio. As an IT service provider, it has the third largest sales in Japan and 15th in the world, following「Fujitsu(富士通)」and「Hitachi(日立製作所)」. It is clear that the strength of「NTT Data」is the business diversification. Regardless of a specific field, they have been involved in various businesses. In addition, this company has leading position in public sector, so they can secure stable profits with a small risk.

 

 

 

3. Major Business

 

■ Public / social infrastructure field
They have participated in Japan's public and social system construction business since the「NTT」era.
And the achievements and know-how that we have accumulated through these activities are regarded as considerable strengths.

■ Financial field
They are actively promoting the fusion of IT and finance in cooperation with「Mizuho Bank, Ltd.,」,which is one of the megabanks. Especially in recent years, the demand for Internet banking is increasing.

■ Corporate Solution Field
They provide corporate solutions that meet the demands of businesses in various fields such as manufacturing, distribution, and service industries.

■ Global field
They are proactively conducting M & A in the SAP business field, which is their main business area. 

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		1,732,473	2,039,690	2,163,625
Consolidated operating profit		117,109	123,120	147,716
Consolidated total assets		2,238,941	2,270,203	2,476,062
Consolidated net assets		833,715	860,506	966,809
Breakdown of sales	Public・Social infrastructure field	376,324	361,767	399,581
	Financial field	459,680	496,427	491,579
	Corporate・Solution field	302,030	340,186	379,234
	North America	241,458	422,262	416,484
	EMEA・South America	327,647	383,863	433,858
	Others	21,827	34,053	42,132
	Adjustments	3,505	1,132	758