2. QUALITATIVE INFORMATION RELATING TO CONSOLIDATED FINANCIAL STANDING Consolidated cash flows from operating activities for the nine-month period ended December 31, 2009 were 1,652.0 billion yen (an increase of 126.8 billion yen (8.3%) in cash flows compared to the same period of the previous fiscal year). This was due, despite the decrease in net income for the nine-month period, to the effect of a decrease in trade accounts receivable resulting from increased collection of installment loans for mobile handsets. Consolidated cash flows from investing activities showed outlays of 1,632.3 billion yen (a decrease of 10.9 billion yen (0.7%) compared to the same period of the previous fiscal year). This was due in part to a decrease in expenditures for capital investment and an increase in payments for purchase of short-term investments due to cash management activities relating to short-term investments exceeding three months in duration. Consolidated cash flows from financing activities showed outlays of 397.5 billion yen (an increase of 227.0 billion yen (133.2%) compared to the same period of the previous fiscal year). This resulted from a decrease in revenues from fund procurement and an increase in expenditures for debt redemption while there was a decrease in expenditures associated with the acquisition of treasury stock that was conducted in the same period of the previous fiscal year. As a result of the above, NTT Group's consolidated cash and cash equivalents as of December 31, 2009 were 674.9 billion yen, a decrease of 377.9 billion yen (35.9%) from the end of the previous fiscal year. Copyright (c) 2010 Nippon telegraph and telephone corporation