3. CONSOLIDATED FINANCIAL STATEMENTS (6) NTT Shareholders’ Equity Cancellation of Treasury Stock On May 14, 2010, the board of directors adopted the basic policy on cancellation of treasury stock. Pursuant to this policy, all treasury stock owned by NTT as of March 31, 2010 (250,923,665 shares) will be cancelled over two fiscal years. One-half of the treasury stock will be cancelled during this calendar year and the remainder of the treasury stock will be cancelled during the fiscal year ending March 31, 2012. On November 9, 2010, the board of directors resolved that NTT will cancel 125,461,833 shares held as treasury stock and on November 15, 2010 NTT cancelled these shares. As a result of this cancellation, “Additional paid-in capital” and “Retained earnings” decreased by ¥928 million and ¥601,964 million, respectively. Dividends Cash dividends paid Significant Changes in NTT Shareholders’ Equity None Copyright (c) 2011 Nippon telegraph and telephone corporation