2. Analysis of consolidated financial standing Consolidated cash flows from operating activities in the first quarter of the fiscal year ending March 31, 2010 were 477.3 billion yen (an increase of 318.9 billion yen (201.4%) in cash flows compared to the same period of the previous fiscal year). This was due to the effect of expenditures arising from a review of secondment policies in the same period of the previous fiscal year and a decrease in the amount of advances paid in connection with NTT's acquisition of treasury stock conducted in the same period of the previous fiscal year. Consolidated cash flows from investing activities showed outlays of 603.3 billion yen (an increase of 81.8 billion yen (15.7%) compared to the same period of the previous fiscal year). This was due to an increase in long-term investment expenditures including equity investments, a decrease in the sale of shares and other long-term investments, and other factors. Consolidated cash flows from financing activities were 60.1 billion yen (a decrease in cash flows of 63.7 billion yen (51.5%) compared to the same period of the previous fiscal year). This resulted from a decrease in long-term capital raised from the issuance of corporate bonds and borrowings. As a result of the above, NTT Group's consolidated cash and cash equivalents as of June 30, 2009 were 988.9 billion yen, a decrease of 63.9 billion yen (6.1%) from the end of the previous fiscal year. Copyright (c) 2009 Nippon telegraph and telephone corporation