2. Analysis of Consolidated Financial Standing Consolidated cash flows from operating activities for the six-month period ended September 30, 2008 were 1,089.2 billion yen. While net income during this period was 406.4 billion yen and depreciation and amortization was 1,020.8 billion yen, net income tax expense was 261.4 billion yen and accounts payable, trade and accrued payroll decreased by 389.7 billion yen. Consolidated cash flows used in investing activities for the six-month period ended September 30, 2008 showed net outlays of 1,150.0 billion yen, resulting from acquisition of fixed assets in the amount of 1,171.2 billion yen, which was partially offset by proceeds from the sale of property, plant and equipment amounting to 46.3 billion yen. Consolidated cash flows used in financing activities for the six-month period ended September 30, 2008 showed net outlays of 162.0 billion yen. While proceeds from issuance of long-term debt amounted to 395.2 billion yen, this was more than offset by 292.6 billion yen in payments for the settlement of long-term debt and 100.7 billion yen spent for the acquisition of treasury stock. As a result of the foregoing, cash and cash equivalents for NTT Group at the end of the period under review totaled 943.7 billion yen. Copyright (c) 2008 Nippon telegraph and telephone corporation