1. BUSINESS RESULTS (2) Analysis of Financial Standing Consolidated cash flow from operating activities for the fiscal year ended March 31, 2010 was 2,817.8 billion yen in revenues. Compared to the previous fiscal year, cash flow increased 303.7 billion yen (12.1%). While net income decreased, this increase in cash flows was due to a decrease in trade accounts receivable resulting from, amongst other things, an increase in the collection of installment loans for mobile handsets and an increase in accounts payable, trade and accrued payroll and liability for employees’ retirement benefits. Consolidated cash flow from investment activities amounted to 2,308.9 billion yen in cash outlays. Compared to the previous fiscal year, cash outlays increased 39.3 billion yen (1.7%). While expenditures for capital investment and payments for long-term investments have decreased, this increase was due to an increase in payments for purchase of short-term investments with cash management activities relating to short-term investments exceeding three months in duration. Consolidated cash flow from financing activities amounted to cash outlays of 651.3 billion yen. Compared to the previous fiscal year, cash outlays increased 298.0 billion yen (84.3%). This decrease was due to such factors as a decrease in revenues from fund procurement. As a result of the above, NTT Group’s consolidated cash and cash equivalents at the end of the fiscal year ended March 31, 2010 totaled 911.1 billion yen, a decrease of 141.7 billion yen (13.5%) compared with the fiscal year ended March 31, 2009. Copyright (c) 2010 Nippon telegraph and telephone corporation