NTT Urban Solutions Group Medium-Term VisionRoad to 2030

- The first choice trusted partner for Urban Solutions-

May 10, 2019

Commencement of Business of NTT Urban Solutions

Toward the realization of the future city planning in which every unique regional communities will be playing a leading character, we have established NTT Urban Solutions*Inc. group on July, 2019 in which NTT Urban Development and NTT FACILITIES will work closely together.

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Ownership of City Planning (by Regional Community)Municipalities; corporations; transport services; shopping districts; shops; educational, medical, and cultural facilities, etc.

NTT Group Companies

Promote unique new urban solutions by NTT Group, leveraging on our collective strength

あ ●Asset ownership●ICT services, etc.

●Architectures which support ICT infrastructure

●Management of energy business●Real estate development ●Management

● Contact for NTT Group’s urban solutions business● Centralized management of urban solutions information● Coordination of NTT Group and partner company’s products

Collaboration

Stronger alliance

100% 100%

Urban solution promotion group structure

As NTT Group’s representative, NTT Urban Solutions will promote collaborations with each municipality, corporation, etc. and aim to become a trusted partner for urban solutions that will be chosen by the people of the regional communities.

Ownership of City Planning (by Regional Community)Municipalities; corporations; transport services; shopping districts; shops; educational, medical, and cultural facilities, etc.

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[Creation of business opportunities]‐Understand regional challenges and requests‐Proposal of solutions‐Effective utilization and application of the group assets and know‐how

[Strengthening urban solutions][Promotion structure]

‐A core company that the group as a wholewill support regional urban solutions

Real estate developmentProvision of engineering and solutions Management

[Provision of solutions that will protect and improve the quality of urban infrastructure][Management that will contribute to the maintenance and improvement of the value of thebuildings]

・・・

[Connection with each city/region] [NTT Group’s ICT Solutions]

Creation of business opportunities

[City planning that will bring out the history and culture unique to every regionalcommunity][Management that will improve long term regional community value]

Collaborations with regional communities

Urban Solutions  —Our values

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CommunityOffer attractive space and contents for the creation of 

unique and vibrant communities

・Generate liveliness through area and town management・Commercial facilities that enrich residents’ lives・Hotels that carve the memories of the city in visitors’ minds・Renovation that passes on the local history and culture・Housing that enables different generations to co‐exist

Innovation

Diversity ResilienceDevelop urban environment that facilitates diverse lifestyles of people who gather, work and live there

・ICT infrastructure that realizes teleworking・Facilities to support child rearing incl. daycare・Personal mobility・Health management using wearable devices・New workplaces for realizing diverse ways of working

Utilize cutting‐edge technology to contribute to solutions to urban issues, generation of new industries 

and improvement of productivity at companies

・Creative offices that bring out employees’ creativity・Next‐generation intelligent buildings・Office FM that promotes communications・Workplace that creates open innovation・Field for test marketing, demonstration

Create a city where residents can live with peace of mind by reducing environmental burden and building 

disaster response capability・Adoption of ZEB for office buildings, ZEH for conventional homes 

and condominiums・Energy savings and decarbonizing by utilizing people traffic 

information, etc.・Offering of efficient information・Building facilities with cutting‐edge solutions・Optimal control of energy resource in emergency

For the purpose of providing urban solutions to realize a city full of energy and individuality with the following four values, by satisfying both the economic development of local communities and the resolution of their social challenges, we will contribute to the realization of SDGs and Society 5.0, which is a society aligned with human needs where people can enjoy comfortable, energetic and high‐quality lives.

Strengths and Key Initiatives of NTT Urban Solutions

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Promoting collaboration in urban solutions with municipalities, governments and companiesin cooperation with business activities of NTT Group.

Taking full advantages of the NTT Group’s real estate, ICT, engineering and other assets.

Realizing urban solutions unique to each city and community, by capitalizing on community individuality, such as history and culture.

Diversification of Assets and Solutions  Strengthen management services

Key Initiative

Utilizing Group‐owned AssetsGlobal expansion of urban solutions

Strengths

We will support urban solutions that people in the community aim for with initiatives that take full advantage of the strengths and characteristics of NTT Urban Solutions.

Broader More diverse More Durable

[Key Initiatives] Utilizing Group-owned Assets

SapporoCreating a dynamic atmosphere by connecting tourism resources around Odori Park

Fukuoka

Osaka

NagoyaDeveloping new appeal utilizing the historical, neighborhood-like qualities and rich environment of the Sakae area

Sendai

Nagasaki

[Sendai CRE]

Cutting-edge city achieving a chain of innovation through the development of the Sendai Ecosystem

Rehabilitating urban functions in central areas in coordination with local communities and developing a new appeal for Nagasaki[Nagasaki CRE]

Creating new appeal as key areas of Kansai, primarily in the city center[UD Midosuji Rebuilding Project, Nakanoshima CRE, etc.]

[Imaizumi Koen-mae Project, Tenjin CRE]

[Former HBC Headquarters Site Redevelopment Project, etc.]

[Higashi Sakura 1-1 Construction Project]

Aiming to achieve growth as a hub in Asia by attracting customers across a wide area and integrating urban functions

Kyoto

[Shinpukan Redevelopment Project, Kyoto En-no-gyoja Development, Development Project on Former Grounds of Shimizu Elementary School, etc.]

Inheriting Japanʼs history and culture while creating a dynamic atmosphere

Tokyo Metropolitan AreaCreating new urban value through large-scale development and boosting competitiveness of business areas[Hibiya CRE, Shinagawa CRE, Otemachi CRE, Kanda Station West Exit Redevelopment, Shimbashi Station West Exit Redevelopment, Minami Aoyama Project, etc.]

• By assigning NTT Urban Solutions area representatives who will work with regions across Japan, we will work further closely with local Group companies

• Develop and deepen the relation with local governments, companies and other organizations cultivated by Group companies in each region

By coordinating with Group company locations and building partnerships with local companies and organizations, we will roll out urban solutions that fully utilizes our resources throughout the country.

Main Group ResourcesTelephone Exchanges Approx. 7,000 sites

Offices Approx. 1,500 sitesAgreements with Local Governments: 78

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Approx. 60 projectsunderway across Japan

Creative Office Spaces (United States)175 Pearl Street

Heritage Asset Utilization (Europe)1 King William Street

Sustainable Urban Development (Australia)River Valley PJ

・Optimizing and reusing rainwater drainage

・Improving connectivity to public transportation

・Energy consumption monitoring, management and sharing

・Provide creative diverse office spaces by adding value to common areas

・Renovate to a competitive building

・Renovate a historic building

Through coordination with global businesses of the NTT Group and collaboration with local partners overseas, we will create advanced urban solutions to cities facing challenges.

[Key Initiatives] Global Expansion of Urban Solutions

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[Challenges]

1 King William Street 175 Pearl StreetRiver Valley （Before start of construction）

NTT Group Local PartnersNTTUrban Solutions

Providing Solutions to Challenges in Each Area

× ×

Solutions(Energy, ICT, Mobility, etc.)

Development(Urban Solutions, Renovations, etc.)

Realizing a Smart World

Smart StadiumSmart FactorySmart CitySmart Building

Smart HomeSmart Mobility

Smart Energy

We will provide solutions using a wide range of our assets, ICT and energy resources, etc. to help solve regional challenges.

[Key Initiatives] Diversification of Assets and Solutions / Stronger Management Services

➢ Redevelopment of Shinpukan（ACE HOTEL KYOTO）

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➢ With an office platform that uses IoT and 5G combined with AI technologies, the flow of people and environmental data is analyzed to provide a comfortable and pleasant working environment.

Office Area Central MonitoringRoom

Common AreaImproved Worker Engagement Efficient

MaintenanceComfortable

Use

(Usage Status)

Control Unit

➢ Initiatives aimed at PPP, PFI and designated administrator schemes

SENDAI ASTROMONICAL OVSERVATORY

Develop and UpdatePublic Assets

Moriguchi City Gymnasium

[Challenge]

➢ Initiatives aimed at long-term usage of buildings utilizing facility management

Operate a BuildingLong-term

[Challenge]

➢ LIFORK MINAMI AOYAMA (Co‐working office)

The 28th BELCA Award︓Head Office Building of the Bank of Fukuoka

Create InnovationCreate Regional landmarks utilizing historical buildings

[Challenge] [Challenge]Create New Workplaces

[Challenge]

➢ Using ICT to create a dynamic atmosphere(Shinagawa Season Terrace Area Management)

Cultivate Civic Pride[Challenge]

We will support sustainable local communities by providing a range of management services. 

(Video Surveillance Information)

(Entrance and Exit Information)

(Temperature and Humidity)

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Medium-to-Long-Term Growth Aimed at Promoting and ExpandingUrban Solution projects

We will aim to become a leading company in urban solution projects by not only pursuing conventional real estate projects but also by combining ICT, energy and other resources to help solve regional issues and realize local communities that are rich in individuality.

Milestones for medium-to-long-term growth Aim to generate revenues of 600 billion yen by FY2025

Undertake growth-oriented investments worth 1 – 1.5 trillion yen from FY2019 to FY2025

Expand revenue (in key areas) to twice that of FY2018 results (approx. 300 billion yen) through priority measures such as promoting urban solutionprojects and enhancing management services

Promote early recovery of investment funds and urban solution through joint ventures with regional companies and local governments, etc. by utilizing Group financing along with funding schemes, balancing growth-oriented investment with maintaining and enhancing asset efficiency

Build an efficient business operating structure through stronger coordination with NTT Urban Development and NTT Facilities, and strive to enhance human resources in urban solution projects