1. Qualitative Information (2) Qualitative Information relating to Consolidated Financial Standing Consolidated cash flows from operating activities for the six-month period ended September 30, 2010 were ¥1,356.5 billion (an increase of ¥114.0 billion (9.2%) in cash flows compared to the same period of the previous fiscal year). This was due to the effect of lower payments for accounts payable and others in addition to the increase in net income for the quarter. Consolidated cash flows from investing activities showed outlays of ¥990.0 billion (a decrease of ¥78.7 billion (7.4%) compared to the same period of the previous fiscal year). This was due in part to the decrease in expenditures for capital investment and non-current investments. Consolidated cash flows from financing activities showed outlays of ¥290.0 billion (an increase of ¥14.3 billion (5.2%) compared to the same period of the previous fiscal year). This resulted from a decrease in long-term debt and other factors. As a result of the above, NTT Group’s consolidated cash and cash equivalents as of September 30, 2010 were ¥985.6 billion, an increase of ¥74.5 billion (8.2%) from the end of the previous fiscal year. Copyright (c) 2010 Nippon telegraph and telephone corporation