Daiwa Securities Group Annual Report 2012 Millions of yen Thousands of  U.S. dollars  (Note 1) 2012 2011 2012 Cash flows from financing activities: Decrease in short-term borrowings and commercial paper (1,068,402) (1,670,115) (13,029,293) Increase in long-term debt 371,175 674,882 4,526,524 Decrease in long-term debt (358,823) (260,814) (4,375,890) Payments of cash dividends (10,281) (19,233) (125,378) Other, net 3,308 (26,377) 40,340 Net cash flows used in financing activities (1,063,023) (1,301,657) (12,963,697) Effect of exchange rate changes on cash and cash equivalents (644) (5,740) (7,854) Net increase (decrease) in cash and cash equivalents (4,483) 290,020 (54,671) Cash and cash equivalents at beginning of year 1,043,464 753,982 12,725,171 Decrease in cash and cash equivalents resulting from exclusion of  a subsidiary from consolidation – (845) – Increase in cash and cash equivalents resulting from merger with  an unconsolidated subsidiary – 307 – Cash and cash equivalents at end of year ¥ 1,038,981 ¥ 1,043,464 $ 12,670,500 See accompanying notes. 66 Corporate Summary Executive Messages Business Strategy Other Information Management Systems & CSR Financial Section