2. Analysis of consolidated financial standing Consolidated cash flows from operating activities in the first quarter of the fiscal year ending March 31, 2011 were ¥513.6 billion (an increase of ¥36.3 billion (7.6%) in cash flows compared to the same period of the previous fiscal year). This increase in cash flows was due to, among other factors, a decrease in accounts receivable and a decrease in payments for income tax expenses. Consolidated cash flows from investing activities showed outlays of ¥352.9 billion (a decrease of ¥250.4 billion (41.5%) compared to the same period of the previous fiscal year). This decrease was due to, among other factors, a decrease in expenditures for capital investment and an increase in income from the redemption of short-term investments exceeding three months in duration. Consolidated cash flows from financing activities were ¥70.8 billion (an increase of ¥130.9 billion compared to the same period of the previous fiscal year). This resulted from, among other factors, a decrease in revenues from short-term fund procurement. As a result of the above, NTT Group's consolidated cash and cash equivalents as of June 30, 2010 were ¥1,001.2 billion, a decrease of ¥90.2 billion (9.9%) from the end of the previous fiscal year. Copyright (c) 2010 Nippon telegraph and telephone corporation