1. Qualitative Information (2) Qualitative Information relating to Consolidated Financial Standing Consolidated cash flows from operating activities for the nine-month period ended December 31, 2010 were ¥1,733.4 billion (an increase of ¥81.4 billion (4.9%) in cash flows compared to the same period of the previous fiscal year). This was due to the effect of the increase in net income for the quarter and other factors. Consolidated cash flows from investing activities showed outlays of ¥1,785.4 billion (an increase of ¥153.2 billion (9.4%) compared to the same period of the previous fiscal year). This was due in part to the increase in non-current investments, such as equity participation, despite the decrease in expenditures for capital investment. Consolidated cash flows from financing activities showed outlays of ¥37.5 billion (a decrease of ¥359.9 billion (90.6%) compared to the same period of the previous fiscal year). This resulted from an increase in revenues due to an increase in long-term debt, a decrease in outlays for payments for long-term debt and other factors. As a result of the above, NTT Group’s consolidated cash and cash equivalents as of December 31, 2010 were ¥818.2 billion, a decrease of ¥92.9 billion (10.2%) from the end of the previous fiscal year. Copyright (c) 2011 Nippon telegraph and telephone corporation