Cash Flows As a result, cash and cash equivalents  at the end of the year totaled ¥89.3 billion,  up ¥15.3 billion from a year earlier. This  was the result of the aforementioned cash  flow factors, as well as foreign currency  translation adjustments and the effect of  new consolidation of subsidiaries. subsidiaries through M&As and other  means, ¥9.2 billion was used for pur- chases of investment securities, and  ¥4.5 billion was used for an increase in  money held in trust. A decrease in mar- ketable securities for short-term financial  asset management purposes provided  net cash of ¥20.0 billion. Net cash provided by operating activities  increased ¥4.1 billion to ¥68.1 billion.  Although income before income taxes  and minority interests declined ¥2.7  billion, the impact of non-cash items  such as impairment losses and a  decrease in income taxes paid resulted  in a year-on-year increase. Financing activities used net cash of  ¥27.8 billion, a change of ¥49.7 billion  from the net cash provided in the previ- ous fiscal year. In terms of inflows, funds  were raised from long-term debt (¥41.7  billion) and bond issuances (¥14.9   billion). Outflows included ¥11.2 billion  for cash dividends paid, a ¥4.7 billion  decrease in short-term loans and com- mercial paper, net, and ¥63.5 billion for  repayments of long-term debt. (¥ billion) 31.4 61.7 60.2 68.1 63.9 0 2008 2006 2007 2010 2009 80 60 40 20 Cash Flows From Operating  Activities Liquidity debt totaled ¥257.5 billion, mainly  reflecting the procurement of ¥56.6  billion through long-term debt and cor- porate bonds. The JS Group believes that it is nec- essary to maintain a certain level of rat- ings in order to ensure fund procurement  through the financial markets. Our ratings  for the past 10 years are shown below. paper, establishing a commitment line,  and through initiatives such as securiti- zation of trade notes and factoring  receivables. At March 31, 2010, the  Group has total cash and cash equiva- lents, and marketable securities of  ¥119.5 billion, thus maintaining a high  level of liquidity to remain prepared to  respond to a crisis situation and to fund  operating companies entering the Group  in the following fiscal year. Interest-bearing  The JS Group strives to generate operat- ing cash flows and consider a wide  range of fund-raising methods in order to  procure a stable and flexible supply of  funds necessary for its business activi- ties, while maintaining a sound financial  position. Regarding cash in hand, the  Group, in principle, maintains funds  adequate to cover settlement of its liabil- ities in an emergency. In order to ensure  financial flexibility, we work to diversify  sources of funding procurement, includ- ing through borrowing from banks and  other financial institutions, ensuring a  framework for issuance of commercial  Rating agency Long-term credit rating Japan Credit Rating Agency (JCR) AA– Rating and Investment Information (R&I) A+ the JS Group will strengthen its com- petitiveness in the Japanese market and  actively develop business in overseas  markets. At the same time we will help  to address environmental problems.  Under the JS Group’s new group brand,  LIXIL, we will break away from the con- cept of being a collection of individual  businesses and become a comprehen- sive home and living environment- related company, as we target further  business expansion. over the medium term and rebuild our  earnings structure while identifying new  growth opportunities, including corpo- rate alliances. The outlook for the year ending March  31, 2011 is clouded in uncertainty,  despite emergency stimulus measures  propping up the economy. While the  extent of decline in new housing starts  has contracted in recent times, housing  investment lacks power and is therefore  expected to remain low for the time  being, making for a persistently difficult  operating environment. Recognizing these challenges, the JS  Group will push ahead with structural  reforms to its existing businesses. This  will include reorganization and integra- tion of overlapping business areas and  centralization of common processes. We  will also seek to advance our operations  Over the medium and long term, the  declining trend for population and birth- rates will gather pace in Japan. Mean- while, globalization will continue with  the emergence of industrializing nations.  Business conditions at home and  abroad, therefore, will continue chang- ing dramatically. In the housing industry,  we expect new housing starts to remain  on a moderate downtrend amid rising  housing stock and a declining number  of people in the purchasing segment of  the population. Under these conditions,  JS Group Corporation Annual Report 2010 55 Outlook for the Year Ending March 31, 2011 Investing activities used net cash of  ¥27.3 billion, which was ¥35.7 billion  less than the previous fiscal year. A total  of ¥25.6 billion was used for acquisition  of tangible and intangible fixed assets,  including investments in opening new  home centers (Distribution and Retail  Business) and investments to maintain  and renovate existing facilities. In addi- tion, ¥9.6 billion was used for payments  for purchases of newly consolidated 