Six-month Consolidated Financial Report for the Fiscal Year ending
October 31, 2017 [Japan GAAP]
Listed Company Name
Company Code Number
Listing Exchanges(URL
Representative
Inquiries

June 9, 2017
Kanamoto Co., Ltd.
9678
Tokyo Stock Exchange, Sapporo Stock Exchange
http://www.kanamoto.co.jp)
Tetsuo Kanamoto
President & CEO
Nobuhito Utatsu
Director & Senior Executive Corporate Officer, Division
Manager, Accounting Division
TEL 81-11-209-1600

Scheduled date for submission of Quarterly Report

June 13, 2017

Scheduled date for commencement of dividend payments

July 5, 2017

Preparation of Quarterly Settlement Supplementary
Explanatory Materials

Yes

Quarterly Earnings Briefings

Yes (For institutional investors and analysts)

1. Consolidated Operating Results for the Six-Month Period of the Fiscal Year Ending October 31, 2017
(November 1, 2016 – April 30, 2017)(1) Consolidated operating results (Cumulative)(Numbers less than one million yen have been rounded down)(Percentages show the change from the prior year)

Net Sales
Millions of yen%

Fiscal Year ending October 31, 2017:
79,210
15.4
Second quarter
Fiscal Year ended October 31, 2016:
68,642
0.5
Second quarter(Note) Comprehensive income
Fiscal Year Ending October 31, 2017, Second Quarter
Fiscal Year Ended October 31, 2016, Second Quarter
Net Income per
Share
Fiscal Year ending October 31, 2017:
Second quarter
Fiscal Year ended October 31, 2016:
Second quarter

Ordinary Income

Millions of yen%

Millions of yen%

Millions of yen

%

9,993

16.1

10,242

24.2

6,468

30.2

8,605

−19.2

8,246

−22.6

4,967 −23.9

7,053 million (36.2%)
5,178 million (−28.9%)
Net Income per
Share on a Fully
Diluted Basis

Yen

Yen

183.03－140.57－(2) Consolidated financial position
Total Assets
Fiscal Year ending October 31, 2017:
Second quarter
Fiscal Year ended October 31, 2016

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

230,167

87,40435.7

220,836

81,434

34.7(Reference) Equity (millions of yen)
Fiscal Year Ending October 31, 2017 Second Quarter
Fiscal Year Ended October 31, 2016－

Profit Attributable to
Owners of Parent

Operating Income

1 －82,13576,683

2. Dividends
End of firstquarter
Fiscal year ended October 31, 2016
Fiscal year ending October 31, 2017
Fiscal year ending October 31, 2017
(Projected)

Annual Dividends per Share
End of second End of third
Year-endquarterquarterFull-year

Yen

Yen

Yen

Yen

Yen

－
－

15.00
15.00

－

30.00

45.00

－

35.00

50.00

(Note) Has the Company revised its most recently released dividend projection?

No

3. Projected Consolidated Operating Results for the Fiscal year ending October 2017
(November 1, 2016 – October 31, 2017)(Percentages show the change from the prior year)

Net Sales
Full year

Operating Income

Millions of yen%

Millions of yen%

155,800

7.5

17,13013.2

Ordinary Income
Millions of yen

Profit Attributable to
Owners of Parent

Net Income per
Share

%

Millions of yen%

Yen

17,360 20.5

10,73032.5

303.63(Note) Has the Company revised its most recently released projected consolidated operating results during the quarter?
No

－

2 －

4. Notes(1) Changes in material subsidiaries during the period under review (Changes in specific subsidiaries in conjunction witha change in the scope of consolidation): No
Company newly included (Company name)─
Company newly excluded (Company name)─(2) Application of special accounting method in the preparation of quarterly consolidated financial statements:

No(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements(a) Changes in accounting policy in conjunction with revision of accounting standards:
No(b) Changes other than the above:(c) Changes in accounting estimates:NoYes(d) Retrospective restatements: No
Note: Please refer to “2. Quarterly Consolidated Financial Statements and Notes (4) Notes Concerning Quarterly
Consolidated Financial Statements (Change in Accounting Estimates)” on Page 10 of the Attachments fordetails.
(4) Number of shares issued (common shares)(a) Number of shares outstanding at the end of the period (including treasury shares)
Fiscal year ending October 31, 2017 Second Quarter:
36,092,241 sharesFiscal year ended October 31, 2016:
36,092,241 shares(b) Number of shares of treasury stock at the end of the period
Fiscal year ending October 31, 2017 Second Quarter:
753,252 sharesFiscal year ended October 31, 2016:
753,079 shares(c) Average number of shares during the period (consolidated year-to-date)Fiscal year ending October 31, 2017 Second Quarter:
35,339,060 sharesFiscal year ended October 31, 2016 Second Quarter:
35,339,270 shares

Note: This quarterly earnings report is exempt from the quarterly review procedure
Note: Explanation concerning appropriate use of the projected operating results and other items to note
Note Concerning Forward-Looking Statements
The forward-looking statements, including business results forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. The
Company does not guarantee the achievement of the projections. Actual operating results may differ substantially
due to a number of factors. Please refer to “1. Qualitative Information Concerning Quarterly Consolidated Operating
Results (3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results” on Page
3 of the Attachments for the conditions used as assumptions for the projected operating results and matters to note
before using the projected operating results.
Procedure for obtaining the Quarterly Settlement Supplementary Explanatory Materials and Quarterly Earnings Briefing
The Company plans to hold a briefing for institutional investors and analysts on Tuesday, June 13, 2017.
Following the briefing, the Company will upload the briefing highlights and discussion (voice recording) on the
Company’s website as quickly as possible, together with the Quarterly Earnings Briefing materials used that day.

－3 －

○Attachments Table of Contents
1. Qualitative Information Concerning Quarterly Consolidated Operating Results ……………………………………

5(1) Qualitative Information Concerning Consolidated Operating Results ……………………………………………

5(2) Qualitative Information Concerning Consolidated Financial Position …………………………………………….

6(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results …………….

6

2. Quarterly Consolidated Financial Statements and Notes …………………………………………………………….

7(1) Quarterly Consolidated Balance Sheets ……………………………………………………………………………
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ………………………………………………………………………………………………………………….
Quarterly Consolidated Statements of Income

7

Consolidated Interim Period Ended April 30,2017………………………………………………….……….

9

9

Quarterly Consolidated Statements of Comprehensive Income
Consolidated Interim Period Ended April 30,2017………………………………………………….……….

10(3) Quarterly Consolidated Statements of Cash Flows ……………………………………………………………….

11(4) Notes Concerning Quarterly Consolidated Financial Statements ……………………………………………….

13(Notes Relating to the Going Concern Assumption) ………………………………………………………………

13(Notes on Significant Changes in Shareholders’ Equity) …………………………………………………………

13(Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements) …………………….

13(Supplemental Information) …………………………………………………………………………………………

13(Business Segment Information) ……………………………………………………………………………………

13

－

4 －

1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results
Management Environment (From November 1, 2016 to April 30, 2017)
During the first two quarters of Kanamoto’s current consolidated fiscal year, Japan’s economy maintained a
gradual recovery trend, and the effects of various government policies as well as improvements in corporate
operating performance and in the employment and income environment were evident. On the negative side of
the balance, on the other hand, uncertainty remained strong and concerns that demanded a prudent stance,
including apprehension over the economic slowdown in China and newly developing countries, the situation in
Europe pertaining to Great Britain’s exit from the EU, and policy management in the United States, were
unabated.
< Second Quarter Operating Results > (From November 1, 2016 to April 30, 2017)
In the construction industry related to the Kanamoto Group, demand remained brisk. In addition to thebrightening outlook noted in private sector capital investment, including redevelopment projects in metropolitan
areas, spending on public works projects was buoyed by maintenance and renewal demand in the disasterprevention and disaster mitigation sector, and by expenditures to address Japan’s rapidly ageing social
infrastructure.
Given such circumstances, the Kanamoto Group resolutely pursued the various measures in its Long-term
Corporate Management Plan BULL55 (FYE October 2015 – FYE October 2019), the action plan aimed atachieving the Group’s continuous growth. To ensure strong earnings, Kanamoto continued to pursue efficiency
improvements by repositioning existing assets and implementing thorough and comprehensive cost reductions,while also working to create its new system for efficiently utilizing rental assets, which will further ensure thecertainty of these measures.
As a result, net sales for the consolidated interim period ended April 30, 2017 rose by 15.4% from the same
period of the previous consolidated fiscal year to ¥79,210 million. With regard to earnings, operating income
increased 16.1% from the same period of the previous consolidated fiscal year to ¥9,993 million, ordinary income
increased 24.2% year-on-year to ¥10,242 million, and interim period profit attributable to owners of parent rose
30.2% year-on-year to ¥6,468 million.
Results for each of the Company’s business segments were as follows.
< Business related to the Construction Equipment Rental Division >In the construction-related business that is Kanamoto’s primary business focus, construction equipment rental
demand remained brisk, driven by strong demand centered on Hokkaido and Kyushu, works related to the Tokyo
Olympics, and the gradual start of construction on large-scale redevelopment works in the Tokyo metropolitan
area. The Company moved forward with the creation of its continuous support system in particular, including thecentralization of management resources and establishment of new branches, to strengthen its support forrecovery efforts following the Kumamoto earthquake, Kagoshima typhoon disaster, and Hokkaido typhoon
disaster, all of which occurred last year. In the Kyushu Region, both net sales and operating income for the
consolidated interim period expanded substantially as a result of having added the performance of Nishiken Co.,
Ltd. to consolidated operating results from the third quarter of the prior consolidated fiscal year.
Used construction equipment sales fell 2.5% year-on-year, as Kanamoto sold equipment based on its initialplan aimed at maintaining an appropriate asset portfolio.
As a result of the above factors, interim period net sales for Kanamoto’s construction-related businesses
increased 12.1% from the same period of the prior consolidated fiscal year to ¥72,099 million, and operating
income improved 12.2% year-on-year to ¥9,259 million.
< Other businesses >In Kanamoto’s other businesses, both steel products-related sales and sales in the information andtelecommunications-related division were roughly in line with the same period one year earlier, but because of－

5 －the addition of the Company’s welfare-related business, net sales rose 64.2% from the same period of the priorconsolidated fiscal year to ¥7,110 million, and operating income jumped 247.3% year-on-year to ¥534 million.
< Business developments deserving special mention and change in number of branches >The Company opened one new branch, the Hidaka Equipment Center (Saru-gun, Hokkaido), and closed one
branch, the Tsugaru Dam Branch (Nakatsugaru-gun, Aomori Prefecture), during the second quarter consolidated
accounting period.

(2) Qualitative Information Concerning Consolidated Financial Position
Assets, liabilities and net assets
Total assets at the end of the interim period under review increased by ¥9,331 million compared with the end of
the prior consolidated fiscal year to ¥230,167 million. This change mainly reflected an increase of ¥7,144 million
in cash and deposits, an increase of ¥864 million in rental equipment, and an increase of ¥700 million inconstruction machine parts.
Total liabilities were ¥142,762 million, an increase of ¥3,360 million compared with the end of the priorconsolidated fiscal year. The principal items contributing to this change were an increase of ¥3,058 million innotes and accounts payable-trade and an increase of ¥1,735 million in income taxes payable, and a total
decrease of ¥2,208 million in current portion of long-term loans payable and long-term loans payable.
Total net assets came to ¥87,404 million, ¥5,970 million higher than at the end of the prior consolidated fiscal
year. This was mainly because of profit attributable to owners of parent for the interim period of ¥6,468 million,
and a decrease of ¥1,060 million for dividends from surplus.

(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results
For more details, please refer to the press release “Notification Concerning Revision of Projected Operating
Results for the Business Period Ending October 2017” issued on June 2, 2017.

－6 －2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Unit: Millions of yen)
As of October 31, 2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electronically recorded monetary claims-operating
Securities
Merchandise and finished goods
Raw materials and supplies
Construction machine parts
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Rental equipment
Accumulated depreciation
Rental equipment, net
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Allowance for investment loss
Total investments and other assets
Total non-current assets
Total assets－

7 －As of April 30, 201733,20936,502
3,718
200
693
379
10,265
604
1,059
−689
85,94540,35435,860
4,409
200
783
382
10,966
754
1,072
−718
94,064

189,549−114,596
74,95331,029−18,883
12,145
6,999−5,963
1,036
35,6302,343−1,332
1,011
124,776

195,075−119,258
75,817
31,637−19,272
12,364
7,103−6,067
1,035
35,623
2,545−1,382
1,162
126,004

628
664
1,292

557
912
1,469

6,911
419
2,216
−406
−320
8,821
134,891
220,836

6,854
428
1,863
−258
−260
8,627
136,102230,167

(Unit: Millions of yen)
As of October 31, 2016
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Accounts payable-other
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Long-term accounts payable-other
Provision for directors’ retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－

8 －As of April 30, 2017

26,986
1,194
40
13,951
1,357
2,052
1,091
21,0792,399
70,15230,0451,046
1012,743
1,086
3,787
1,186
21,732
3,108
74,747

26,6442,700
38,870
94
234
384
321
69,249139,40225,643
2,268
39,017
100
244
425
316
68,015
142,762

13,652
14,91648,017−2,12974,45813,652
14,91653,425−2,12979,865

2,051
－
164
8
2,225
4,750
81,434
220,836

2,138
0
123
8
2,269
5,269
87,404230,167(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Interim Period Ended April 30,2017)(Unit: Millions of yen)Six months ended
30-Apr-16
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Insurance income
Rent income
A receipt bonus
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales of notes receivable - trade
Foreign exchange losses
Provision of allowance for investment loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on donation of non-current assets
Subsidy income
Gain on sales of investment securities
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on valuation of shares of subsidiaries and associates
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent－

9 －Six months ended
30-Apr-17

68,64247,38821,254
12,6498,605

79,21053,71825,492
15,499
9,993

4
68
15
32
9
－
103
234

1
55
35
38
7
122
220
481

160
7
198
109
116
592
8,246

133
5
－
－
92
231
10,242

8
－
3
－
14
26

8
13
3
174
－
200

27
49
77
8,195
2,940
15
2,956
5,239
271
4,967

63
28
91
10,351
3,547
−197
3,349
7,001
533
6,468

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Interim Period Ended April 30,2017)(Unit: Millions of yen)Six months ended
30-Apr-16
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests－

10 －Six months ended
30-Apr-17

5,239

7,001

−129
0
68
－
−60
5,178

93
0
−41
−0
51
7,053

4,907

6,512

271

540

(3) Quarterly Consolidated Statements of Cash Flows(Unit: Millions of yen)Six months ended
30-Apr-16
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
The amount of cost price transfer with asset sell-off forrentals
Expenditure by the construction equipment and supplies
Expenditure by the assets acquisition for rentals
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in allowance for investment loss
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Assets buy on the installment plan purchase payment
interest for rentals
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales and retirement of non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on step acquisitions
Loss on valuation of shares of subsidiaries and associates
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

－

11 －

Six months ended
30-Apr-17

8,195
10,221－

10,351
11,940
71

483

665

−56
−876
51
109
167
－

−460
−1,381
−168
－
94
9

181

176

−73
160
108
18
－
−14
49

−56
133
−91
55
−174
－
28

934

10

−295
1,216
1,057
−1,115
20,52472−349−3,582
16,666

−85
3,485
1,114
463
26,18056−309−1,812
24,114−0−1,235
10
−58
−13
－

−60
−1,527
16
−259
−4
316

−5,806

－

−37
10
−42
−7,173−96
11
193−1,409(Unit: Millions of yen)Six months ended
30-Apr-16
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Redemption of bonds
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of installment payables
Repayments of lease obligations
Purchase of treasury shares
Purchase of treasury shares of subsidiaries
Cash dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

－

12 －

97
－
10,110−7,162−10,520−1,018−0－−706−1−9,20027
319
36,15036,469Six months ended
30-Apr-17
−158
−30
6,440
−8,701−10,959−1,137−0−0−1,056−22−15,627
7
7,084
33,06940,154

(4) Notes Concerning Quarterly Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(Notes on Significant Changes in Shareholders’ Equity)
The Company had no material items to report.
(Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements)(Change in Accounting Estimates)
Beginning from the first quarter of the current consolidated fiscal year, Nishiken Co., Ltd., a consolidated
subsidiary, has modified the useful lives it applies to its rental equipment.
This change has been applied because Nishiken Co., Ltd. has become a consolidated subsidiary, and is basedon comprehensive consideration of the economic useful lives and equipment repair and renewal cycles of similartypes of rental equipment that are used under identical circumstances, and brings the useful lives into uniformity
with the standard applied in the Kanamoto Group.
As a result of this change, operating income, ordinary income and profit before income taxes for the interim
period of the fiscal year ending October 2017 decreased by ¥56 million, respectively, compared with what they
otherwise would have been had the useful lives applied in past periods been applied.
The effect of this change on the Company’s information by segment is described in the relevant section.
(Supplemental Information)(Application of the Implementation Guidance on Recoverability of Deferred Tax Assets)
Beginning from the first quarter of the current consolidated fiscal year, the Company will apply the
Implementation Guidance on Recoverability of Deferred Tax Assets (Accounting Standards Board of Japan
Financial Accounting Standards Implementation Guidance No. 26, revised March 28, 2016).
(Business Segment Information)[ Segment information ]I Interim period of the prior consolidated fiscal year (From November 1, 2015 to April 30, 2016)
1. Information concerning net sales and profit or loss by reporting segment(Unit: Millions of yen)
Reporting segment
Business related to theConstruction Equipment
Rental Division

Other Businesses(See note)

64,311

4,330

68,642－－－64,311

4,330

68,642

8,249

153

8,403

Net sales
Net sales to outside customers
Net sales or transfers between
related segments
Total
Segment income

Total(Note) The “Other businesses” classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division and business related to the
Information Products Division and other businesses.
2. Difference between total reporting segment profit or loss and the amount reported on the Quarterly
Consolidated Statements of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Unit: Millions of yen)
IncomeAmountReporting segment total
Income for “Other businesses” classification
Other adjustments
－

8,249
153
201
13 －

Operating income reported on the Consolidated
Quarterly Statements of Income

8,605

3. Information concerning fixed asset impairment loss and goodwill by reporting segment
In the second quarter consolidated period under review, Nishiken Co., Ltd. has been included in thescope of consolidation.
The amount of the increases in goodwill for the interim period of the current consolidated fiscal year asa result of this event are ¥380 million for business related to the Construction Equipment Rental Divisionand ¥331 million for other businesses.

－

14 －

II

Interim period of the current consolidated fiscal year (From November 1, 2016 to April 30, 2017)
1. Information concerning net sales and profit or loss by reporting segment(Unit: Millions of yen)
Reporting segment
Other Businesses
Business related to the
Total
Construction Equipment(See note)
Rental Division
Net sales
Net sales to outside customers
Net sales or transfers between
related segments

72,0997,110

79,210

－

－

－

Total

72,0997,110

79,210

Segment income

9,259

534

9,793

(Note) The "Other businesses" classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division, the Information Products Division,
welfare-related businesses and other businesses.
2. Difference between total reporting segment profit or loss and the amount reported on the Quarterly
Consolidated Statements of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Unit: Millions of yen)
IncomeAmountReporting segment total

9,259

Income for “Other businesses” classification

534

Other adjustments

199

Operating income reported on the Consolidated
Quarterly Statements of Income

9,993

3. Information concerning fixed asset impairment loss and goodwill by reporting segment
The Company had no material items to report.
4. Information concerning changes in reporting segments etc.
(Change of useful lives)
As described in “Change in Accounting Estimates”, the Company modified the useful lives of rental
equipment owned by Nishiken Co., Ltd., a consolidated subsidiary of Kanamoto. As a result, the income
for the “Business related to the Construction Equipment Rental Division” for the interim period of thecurrent consolidated fiscal year decreased by ¥56 million compared with what it otherwise would havebeen had the useful lives applied in past periods been applied.

－

15 －