Fiscal Year ended October 31, 2017

Financial Statements Bulletin (Japan GAAP)
December 8, 2017
Kanamoto Co., Ltd.
9678
Tokyo Stock Exchange, Sapporo Stock Exchange
http://www.kanamoto.co.jp
Tetsuo Kanamoto
President and CEO
Nobuhito Utatsu
Director and Senior Executive Corporate Officer,
Division Manager, Accounting Division
TEL 81-11-209-1600
Please send inquiries in English to takayama@kanamoto.co.jp
Scheduled date for Regular General Meeting of the Shareholders
January 25, 2018
Scheduled date for commencement of dividend payments
January 26, 2018
Scheduled date for submission of Annual Securities Report
January 25, 2018
Preparation of Supplementary Explanatory Materials:
Yes
Earnings Briefings (For institutional investors and analysts):
Yes
Listed Company Name
Company Code Number
Listing Exchanges
URL
Representative
Inquiries(Numbers less than one million yen have been rounded down)

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

Net Sales

Operating Profit

Millions of yen%

Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Profit%

Millions of yen%

Millions of yen%

Fiscal year ended
October 31, 2017

158,428

9.4

16,665

10.1

17,193

19.4

10,744

32.7

Fiscal year ended
October 31, 2016

144,870

8.7

15,134-7.0

14,405

-10.9

8,098

-15.3

(Note) Comprehensive income (millions of yen)
Fiscal year ended October 31, 2017
Fiscal year ended October 31, 2016

Earnings per
Share

11,966 (35.7%)
8,818 (-10.4%)

Earnings per
Share on a Fully
Diluted Basis

Ordinary Profit toTotal Assets

ROE

OperatingMargin

Yen

Yen

%

%

%

Fiscal year ended
October 31, 2017

304.05

–

13.2

7.7

10.5

Fiscal year ended
October 31, 2016

229.16

–

11.1

6.8

10.4

(Reference) Investment profit or loss accounted for by the equity method (millions of yen)
Fiscal year ended October 31, 2017
Fiscal year ended October 31, 2016
(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of October 31,
2017

227,545

91,78837.92,440.41

As of October 31,
2016

220,836

81,43434.7

2,169.93

Net cash provided by(used in) operating
activities

Net cash provided by(used in) investing
activities

Net cash provided by(used in) financing
activities

Cash and Cash
Equivalents at End of
Period(Reference) Equity (millions of yen)
As of October 31, 2017
As of October 31, 2016

86,241
76,683(3) Consolidated Cash Flows

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal year ended
October 31, 201737,788-4,747-30,960

35,160Fiscal year ended
October 31, 2016

26,618-8,940-20,726

33,069 1

2. Dividends
Annual Dividends per Share
End offirstquarter

End ofsecondquarterYen

End ofthird
quarter

Yen

Year-end

Yen

Full-year

Yen

Dividends in
Dividend
Dividends on
Total
Payout Ratio
Net Assets(Full Year) (Consolidated) (Consolidated)

Yen Millions of yen%%

Fiscal year ended
October 31, 2016

–

15.00

–

30.00

45.00

1,590

19.6

2.2

Fiscal year ended
October 31, 2017

–

15.00

–

35.00

50.00

1,766

16.4

2.2

Fiscal year ending
October 31, 2018
(projected)

–

20.00

–

35.00

55.00

17.8

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2018
(November 1, 2017 - October 31, 2018)(Percentages show the change from the prior year)
Net Sales
Millions of yen

Operating Profit% Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Profit% Millions of yen% Millions of yen%

Earnings per
Share
Yen

Interim period

81,400

2.8

9,240

-7.5

9,270

-9.5

5,770

-10.8

163.28Full year

161,870

2.2

17,3304.0

17,4201.3

10,9001.4

308.44 2Notes(1) Changes in material subsidiaries during the period under review (changes in specific subsidiaries in
conjunction with a change in the scope of consolidation): No
Company newly includedCompany newly excluded(2) 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: No(c) Changes in accounting estimates: Yes(d) Retrospective restatements: No(3) Number of shares issued (common shares)(a) Number of shares outstanding at the end of the period (including treasury shares)
As of October 31, 201736,092,241 shares
As of October 31, 2016
36,092,241 shares(b) Number of treasury shares of at the end of the period
As of October 31, 2017753,253 shares
As of October 31, 2016
753,079 shares(c) Average number of shares outstanding during the period
Fiscal year ended October 31, 201735,339,024 sharesFiscal year ended October 31, 2016
35,339,216 shares 3(Reference) Summary of Non-Consolidated Operating Results
1. Non-Consolidated Operating Results for the Fiscal Year Ended October 31, 2017
(November 1, 2016 – October 31, 2017)(1) Non-Consolidated Operating Results
Net Sales(Percentages show the change from the prior year)
Operating Profit%

Millions of yen

Profit%Fiscal year ended
October 31, 2017

107,277

3.4

11,9630.8

12,521

3.2

8,553

25.1

Fiscal year ended
October 31, 2016

103,777

1.7

11,864-15.9

12,132

-13.0

6,840

-18.0

Earnings per Share

Millions of yen

Ordinary Profit

Millions of yen%

Millions of yen%

Earnings per Shareon a Fully Diluted Basis

Yen

Yen

Fiscal year ended
October 31, 2017242.05–

Fiscal year ended
October 31, 2016

193.56–(2) Non-Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of October 31,
2017

184,340

79,04842.9

2,236.87

As of October 31,
2016

178,796

71,66540.1

2,027.93(Reference) Equity (millions of yen)
As of October 31, 2017
As of October 31, 2016

79,04871,665

2. Projected Non-Consolidated Operating Results for the Fiscal Year Ending October 31, 2018
(November 1, 2017 - October 31, 2018)(Percentages show the change from prior year)
Net Sales

Ordinary Profit

Millions ofyen%Interim period

55,050

Full year

109,670

ProfitEarnings per Share

Millions ofyen%Millions of
yen

%

2.8

6,900

-4.8

4,730

-4.9

133.85

2.2

12,650

1.0

8,680

1.5

245.62

Yen

Note: Financial results reports are not required to be audited.
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 tobe 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. Overview of Operating
Results and Others (4) Future Outlook” on Page 8 of the Attachments for the conditions used asassumptions for the projected operating results and matters to note before using the projected
operating results.
(Methods of obtaining the supplementary materials and the content of the earnings briefings)
The Company plans to hold a meeting for institutional investors and analysts on Tuesday, December
12, 2017. Presentation materials will be available on the Company’s website after the meeting.

 4Attachments Table of Contents
1. Overview of Operating Results and Others ....................................................................... 6(1) Overview of Operating Results and Others for the Fiscal Year Ended October 31, 2017 ······ 6(2) Overview of Financial Position for the Fiscal Year Ended October 31, 2017 ······················· 7(3) Overview of Cash Flows for the Fiscal Year Ended October 31, 2017································ 7(4) Future Outlook ········································································································· 8
2. Basic Policy Regarding Selection of Accounting Standards .................................................. 9
3. Consolidated Financial Statements and Significant Notes Thereto ....................................... 10(1) Consolidated Balance Sheets····················································································· 10(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income ·················································································································· 12(Consolidated Statements of Income) ········································································ 12(Consolidated Statements of Comprehensive Income) ·················································· 13(3) Consolidated Statements of Changes in Equity ···························································· 14(4) Consolidated Statements of Cash Flows ······································································ 16(5) Notes to the Consolidated Financial Statements··························································· 18(Notes Relating to the Going Concern Assumption) ······················································ 18(Changes in Accounting Estimates) ············································································ 18(Supplemental Information) ······················································································ 18(Segment Information) ···························································································· 19(Per Share Information) ··························································································· 21(Material Events after the Close of the Consolidated Fiscal Year) ···································· 21

 51. Overview of Operating Results and Others(1) Overview of Operating Results and Others for the Fiscal Year Ended October 31, 2017a) Summary of consolidated fiscal year operating results (From November 1, 2016 to
October 31, 2017)
In the fiscal year under review, Japan’s economy maintained a modest recovery trend, supported
by strong corporate earnings, the recovery of capital investment, reasons for optimism in both theemployment and income environments. However, a wariness must remain in place about uncertainties,
such as the economic impact of unstable political conditions in the US and Europe and geopoliticalrisks posed by the Middle East and Asia.
The construction industry, in which the Kanamoto Group is involved, was solid overall due to robust
public sector investment and a recovery in private-sector construction investment attributable toimproved corporate earnings.
In these conditions, the Group promoted various measures with the aim of achieving its Mediumterm Management Plan (fiscal 2014 to fiscal 2016), and worked to ensure strong future revenue andbuild a stable management base. Those measures include the strengthening of business structure by
expanding the Group’s business in urban areas, and the optimal reallocation of rental equipment andfurther improvement of such equipment’s utilization rate.
Consequently, in the fiscal year ended October 31, 2017 net sales rose 9.4% from the priorconsolidated fiscal year level to ¥158,428 million. On the earnings front, operating profit increased
10.1% year on year to ¥16,665 million and ordinary profit rose 19.4% to ¥17,193 million. Profit
attributable to owners of parent increased 32.7% over the prior consolidated fiscal year to ¥10,744
million.
Results for each of the Company’s business segments were as follows.
b) Summary of consolidated operating results by business segment[Business related to the Construction Equipment Rental Division]
In the construction-related business, which is Kanamoto’s core business, reconstruction demandin the Tohoku Region was gradually decreasing, but in other regions, demand was relatively brisk.
Overall, rental demand for construction equipment was solid. The Group focused its management
resources on supporting reconstruction and recovery efforts following last year’s Kumamoto
earthquake and typhoons in Kagoshima and Hokkaido, as well as this year’s torrential rain storms
throughout Japan, and carried out building a continual support system.
By region, sales in this business fluctuated as follows: up 16.7% in the Hokkaido Region, down
7.7% in the Tohoku Region, up 7.5% in the Kanto & Koushinetsu Region, up 8.1% in the Nishi-nihon
Region, and up 54.9% in the Kyushu & Okinawa Region. The inclusion of Nishiken Co., Ltd. in thescope of consolidation from the third quarter of the previous fiscal year and the signs of synergy
effects in the Kyushu Region, including Nishiken, led to a strong growth in net sales and operating
profit in the Kyushu Region during the fiscal year.
Moreover, in sales of used construction equipment, the Group continued to systematically sellrental equipment that had been in service for a certain number of years to maintain a propercomposition of assets. Sales of used construction equipment, included in net sales, increased 9.1%
versus the previous fiscal year.
Reflecting these factors, the Kanamoto Group posted net sales in the construction-related
businesses of ¥142,414 million, an increase of 8.5% year-on-year, and operating profit of ¥15,415
million, an increase of 9.7%.
[Other businesses]
In the Company’s other businesses, sales were steady at those related to both the Steel Sales
Division and the Information Products Division. This, coupled with the addition of Nishiken’s welfare- 6related business, resulted in a 17.2% increase in net sales from the same period of the priorconsolidated fiscal year to ¥16,013 million and a 29.7% increase in operating profit to ¥856 million.
< Change in number of branches >The Company opened seven new branches and closed one branch.
New branches:
Kuji Branch (Kuji City, Iwate Prefecture), Hidaka Equipment Center (Sarugun, Hokkaido), Kanto Aerial Work Vehicle Maintenance Center (Chiba City,
Chiba Prefecture), Iida Branch (Shimoina-gun, Nagano Prefecture), Fuji
Branch (Fuji City, Shizuoka Prefecture), Murakami Branch (Murakami City,
Niigata Prefecture), Komaki Branch (Komaki City, Aichi Prefecture)
Closed branch:
Tsugaru Dam Branch (Nakatsugaru-gun, Aomori Prefecture)(2) Overview of Financial Position for the Fiscal Year Ended October 31, 2017
Total assets at the end of the consolidated fiscal year under review stood at ¥227,545 million, an
increase of ¥6,708 million compared with the end of the prior consolidated fiscal year. This was primarily
due to a ¥2,011 million increase in cash and deposits, a ¥1,927 million increase in construction machineparts in conjunction with operating activities and a ¥1,506 million increase in investment securities,
tempered by a ¥1,284 million decrease in rental equipment.
Total liabilities were ¥135,756 million, a decrease of ¥3,645 million compared with the end of the priorconsolidated fiscal year. This was primarily due to a ¥1,787 million increase in notes and accounts
payable - trade and a ¥1,194 million increase in income taxes payable, tempered by a ¥1,922 million
decrease in current portion of long-term loans payable, a ¥2,797 million decrease in long-term loans
payable and a ¥1,742 million decrease in long-term accounts payable - other.
Total net assets totaled ¥91,788 million, ¥10,354 million higher than at the end of the priorconsolidated fiscal year. This chiefly reflects profit attributable to owners of parent of ¥10,744 million.
Meanwhile, the Company posted ¥1,590 million in cash dividends.
(3) Overview of Cash Flows for the Fiscal Year Ended October 31, 2017
(Unit: Millions of yen)
FY Ended October 2016
(Prior consolidated fiscal
year)

FY Ended October 2017
(Consolidated fiscal year
under review)

Change from prior year

Net cash provided by (used in)operating activities

26,61837,788

11,169Net cash provided by (used in) investing
activities-8,940-4,747

4,193

Net cash provided by (used in) financing
activities-20,726-30,960-10,234

Net increase (decrease) in cash andcash equivalents-3,080

2,091

5,171

Cash and cash equivalents at beginningof period

36,15033,069-3,080Cash and cash equivalents at end of
period33,06935,160

2,091

The balance of cash and cash equivalents (“cash”) on a consolidated basis at the end of theconsolidated fiscal year under review was ¥35,160 million, an increase of ¥2,091 million comparedwith the end of the prior consolidated fiscal year. Cash flows for the consolidated fiscal year underreview are discussed below.
(Net cash provided by (used in) operating activities)
Cash generated from operating activities stood at ¥37,788 million, an increase of 42.0% from theprior consolidated fiscal year.
This was primarily attributable to the following: profit before income taxes of ¥16,940 million,
depreciation of ¥24,428 million, increase (decrease) in notes and accounts payable - trade of ¥1,915
million and increase (decrease) in accounts payable - other of ¥1,276 million as well as income
taxes paid of ¥4,404 million and expenditure by the assets acquisition for rentals of ¥2,731 million.
 7(Net cash provided by (used in) investing activities)
Cash flow utilized in investing activities was ¥4,747 million, compared with ¥8,940 million in theprior consolidated fiscal year.
This mainly reflected the purchase of property, plant and equipment of ¥2,731 million, thepurchase of shares of subsidiaries of ¥917 million and the payments of loans receivable of ¥742
million.
(Net cash provided by (used in) financing activities)
Cash flow used for financing activities was ¥30,960 million, compared with cash flow used infinancing activities in the prior consolidated fiscal year of ¥20,726 million.
This mainly reflected ¥22,582 million for repayments of installment payables, ¥15,667 million for
repayments of long-term loans payable, ¥1,744 million for repayments of lease obligations, and¥1,591 million in cash dividends paid. Meanwhile, the Company posted ¥10,900 million in proceedsfrom long-term loans payable.
(Reference) Trends in Cash Flow Indicators
FY ended October FY ended October FY ended October FY ended October
2014
2015
2016
2017
Equity ratio (%)

33.6

34.3

34.7

37.9

Equity ratio on a market capitalizationbasis (%)

76.3

42.7

40.4

57.5

Ratio of interest-bearing liabilities tooperating cash flow (year)

3.5

2.7

3.8

2.5

Interest coverage ratio (times)

25.6

40.4

40.8

68.3

(Notes) Equity ratio:
Equity / Total assets
Equity ratio on a market capitalization basis:
Shareholders’ equity on a market capitalization basis / Total assets
Ratio of interest-bearing liabilities to operating cash flow:
Interest-bearing liabilities / Cash flows from operating activities
Interest coverage ratio: Cash flows from operating activities / Interest payments* All indicators are calculated using financial values on a consolidated basis.
* Total market capitalization is calculated by multiplying the closing share price at the end of the
fiscal year by the number of shares outstanding (after deducting treasury shares) at the end of
the fiscal year.
* Cash flows from operating activities in the consolidated statements of cash flows are used for
operating cash flow in the table above. Interest-bearing liabilities include all liabilities posted tothe consolidated balance sheets that incur interest. Interest expenses in the consolidated
statements of cash flows are used for interest payments in the table above.
(4) Future Outlook
In the next fiscal year, the Group expects the sector investment and private-sector capital investment
to remain strong. However, the industry faces issues such as widening regional disparities due to theconcentration of construction work in urban areas and changes in the procurement environment forequipment, materials, and labor. Given these conditions, the Group will continue to ensure that it holds
the optimal rental equipment and mix of equipment models aligned to construction demand andcustomer needs, while raising operational efficiency and utilization rates further by operating new
systems. Pursuing these priority measures will enable the Group to achieve the goals of the new longterm vision “BULL 55.” In addition, Kanamoto aims to further improve its earnings management andstrengthen its corporate governance system as well as to build a management system that will facilitatesustainable growth in the long term.

 8The Kanamoto Group aims for net sales of ¥161,870 million, a growth of 2.2% year-on-year,
operating profit of ¥17,330 million, an increase of 4.0%, ordinary profit of ¥17,420 million, a rise of
1.3%, and profit attributable to owners of parent of ¥10,900 million, an improvement of 1.4%.

2. Basic Policy Regarding Selection of Accounting Standards
The Kanamoto Group plans to prepare its consolidated financial statements in accordance with generally
accepted accounting practices in Japan, taking into account comparability of consolidated financial
statements between different accounting periods and against different companies.
Note that it is the policy of the Kanamoto Group to adopt the international financial reporting standards
depending on conditions and trends in Japan and abroad.

 93. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheets(Unit: Millions of yen)
Prior consolidated
fiscal year
(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 andvehicles, 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

 10



Current consolidated
fiscal year
(As of October 31, 2017)33,20936,50235,22037,057

3,718

4,069

200
693
379
10,265
604
1,059
-689
85,945200
583
288
12,193
706
1,237
-784
90,772

189,549-114,596
74,95331,029-18,883
12,145
6,999-5,963

198,879-125,211
73,66832,910-19,801
13,108
7,290-6,154

1,036

1,136

35,6302,343-1,332
1,011
124,776

35,6232,170-1,421
749
124,286

628
664
1,292

486
1,110
1,596

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

8,417
436
2,308
-272
-0
10,889136,772
227,545

(Unit: Millions of yen)
Prior consolidated
fiscal year
(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
payableLease 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-forsale securities
Deferred gains or losses on hedges
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

 11



Current consolidated
fiscal year
(As of October 31, 2017)

26,986
1,194
40

28,773994–

13,951

12,029

1,357
2,052
1,091
21,0792,399
70,152

1,048
3,247
1,099
21,2693,060
71,521

26,6442,700
38,87023,846
2,017
37,127

94

106

234
384
321
69,249139,402

259
431
444
64,234
135,756

13,652
14,91648,017-2,12974,45813,652
14,91657,172-2,12983,612

2,051

2,538

–

0

164

85

8

5

2,225

2,629

4,750
81,434
220,836

5,547
91,788
227,545

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income(Consolidated Statements of Income)(Unit: Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Foreign exchange gains
Reversal of allowance for doubtful
accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Provision of allowance for investment loss
Other
Total non-operating expenses
Ordinary profit
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 noncurrent assets
Impairment loss
Loss on valuation of investment securities
Loss on sales of investment securities
Loss on valuation of shares of subsidiaries
and associates
Loss on sales 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-controllinginterests
Profit attributable to owners of parent

Prior consolidated
fiscal year
(From November 1, 2015
to October 31, 2016)
144,870
101,31343,55628,422
15,134 12



Current consolidated
fiscal year
(From November 1, 2016
to October 31, 2017)
158,428
109,863
48,56531,89916,665

6
140
71
–

4
148
73
253

47

31

263
528

424
936

267
493
278
218
1,257
14,405

199
–
–
209
409
17,193

35
–
6
2
14
59

21
13
9
220
–
265

164

140

254
54
4

157
–
–

141

140

–

79

620
13,844
5,215
36
5,252
8,591

518
16,940
5,594
-204
5,389
11,551

493

806

8,098

10,744

(Consolidated Statements of Comprehensive Income)(Unit: Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
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 toowners of parent
Comprehensive income attributable tonon-controlling interests

Prior consolidated
fiscal year
(From November 1, 2015
to October 31, 2016)
8,591

 13



Current consolidated
fiscal year
(From November 1, 2016
to October 31, 2017)
11,551

93

498

0
121

0
-79

11

-4

226
8,818

415
11,966

8,323

11,147495

818

(3) Consolidated Statements of Changes in Equity
Prior consolidated fiscal year (From November 1, 2015 to October 31, 2016)(Unit: Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginningof current period
Changes of items
during period
Dividends ofsurplusRetainedearnings

Capital surplus

13,652

14,916

41,156

Profit attributableto owners of parent
Purchase oftreasury shares
Net changes of
items other thanshareholders’equityTotal changes of items
during period
Balance at end ofcurrent period

Totalshareholders’equityTreasury shares-2,12867,597-1,236-1,236

8,098

8,098
-0

-0

–

–

6,861

-0

6,861

13,652

14,91648,017-2,12974,458

Accumulated other comprehensive income

Balance at beginningof current period
Changes of items
during period
Dividends ofsurplus

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasure-ments ofdefinedbenefit
plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

1,948

-0

43

–

1,991

2,409

Profit attributableto owners of parent
Purchase oftreasury shares
Net changes of
items other thanshareholders’equityTotal changes of items
during period
Balance at end ofcurrent period

Total net
assets

71,998–-1,236

–

8,098

–

-0

103

0

121

8

233

2,341

2,574

103

0

121

8

233

2,341

9,435

2,051

–

164

8

2,225

4,750

81,434 14

Current consolidated fiscal year (From November 1, 2016 to October 31, 2017)(Unit: Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginningof current period
Changes of items
during period
Dividends ofsurplusRetainedearnings

Capital surplus

13,652

14,91648,017

Profit attributableto owners of parent
Purchase oftreasury shares
Net changes of
items other thanshareholders’equityTotal changes of items
during period
Balance at end ofcurrent period

Totalshareholders’equityTreasury shares-2,12974,458-1,590-1,59010,744

10,744
-0

-0

–

–

9,154

-0

9,154

13,652

14,91657,172-2,12983,612

Accumulated other comprehensive income

Balance at beginningof current period
Changes of items
during period
Dividends ofsurplus

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasure-ments ofdefinedbenefit
plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

2,051

–

164

8

2,225

4,750

Profit attributableto owners of parent
Purchase oftreasury shares
Net changes of
items other thanshareholders’equityTotal changes of items
during period
Balance at end ofcurrent period

Total net
assets81,434–-1,590–10,744

–

-0

486

0

-79

-3

404

796

1,200

486

0

-79

-3

404

796

10,354

2,538

0

85

5

2,629

5,547

91,788 15(4) Consolidated Statements of Cash Flows(Unit: Millions of yen)
Prior consolidated
fiscal year
(From November 1, 2015
to October 31, 2016)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Loss (gain) on sales and retirement of
non-current assets
The amount of cost price transfer withasset sell-off for rentals
Expenditure by the construction
equipment and supplies
Expenditure by the assets acquisition forrentals
Loss (gain) on valuation of investment
securities
Loss (gain) on sales of investment
securities
Loss on valuation of shares of subsidiaries
and associates
Loss (gain) on sales of shares ofsubsidiaries and associates
Increase (decrease) in allowance for
doubtful accounts
Increase (decrease) in allowance forinvestment loss
Increase (decrease) in provision forbonuses
Increase (decrease) in net defined benefit
liability
Interest and dividend income
Assets buy on the installment planpurchase payment interest for rentals
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in notes andaccounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes andaccounts 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

 16



Current consolidated
fiscal year
(From November 1, 2016
to October 31, 2017)13,84422,097254
83

16,94024,428
157
142

128

119

840

994

-492

-1,073-3,034-2,731

54

–

2

-220

141

140

–

79

-61

-113

278

–

141

8

-14

21

-146

-153

371

349

267
292

199
-199

390

-808

-107

236

-1,654

1,915

1,298

1,276

-877
34,096146-653-6,970884
42,593153-553-4,404

26,61837,788

(Unit: Millions of yen)
Prior consolidated
fiscal year
(From November 1, 2015
to October 31, 2016)
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time
deposits
Purchase of property, plant andequipment
Proceeds from sales of property, plantand equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment
securities
Purchase of shares of subsidiaries
Proceeds from sales of shares ofsubsidiaries
Purchase of shares of subsidiaries
resulting in change in scope of
consolidation
Purchase of shares of subsidiaries andassociates
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termloans 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 ofsubsidiaries
Cash dividends paid
Dividends paid to non-controllinginterests
Payments from changes in ownershipinterests in subsidiaries that do not resultin change in scope of consolidation
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period

 17



Current consolidated
fiscal year
(From November 1, 2016
to October 31, 2017)

-0

-560

–

640

-2,729-2,731

38

31

-366
-22

-461
-583

48

450

–

-917

–

76

-5,806

–

–

-100

-37
25
-90

-742
28
122

-8,940-4,747

-894

-212

-50
19,960-14,637-21,304-1,967-0-40
10,900-15,667-22,582-1,744-0-0-0-1,235-1,591

-1

-22

-594

–

-20,726-30,960-33

10-3,0802,091

36,15033,06933,06935,160(5) Notes to the Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(Changes in Accounting Estimates)(Change of useful lives)
Nishiken Co., Ltd., a consolidated subsidiary of the Company, modified the useful lives of rental
equipment from the fiscal year under review.
When Nishiken became a consolidated subsidiary, the Group made this change with the intention ofstandardizing the useful lives of equipment within the Group for rental equipment of the same type andused under the same conditions. This takes into account the economic life, repairs to the equipment,
and the update cycle, among other factors.
As a result of this change, compared with the figures based on the previous method, operating profit,
ordinary profit and profit attributable to owners of parent for the fiscal year under review decreased by¥123 million respectively.
The impact on segment information is stated in the relevant section.
(Supplemental Information)(Application of Implementation Guidance on Recoverability of Deferred Tax Assets)
Effective from the fiscal year under review, the Company has applied Implementation Guidance on
Recoverability of Deferred Tax Assets (ASBJ Statement No. 26, March 28, 2016).

 18



(Segment Information)
1. Summary of reporting segments
The Company’s reporting segments are those units of the Company’s for which discrete financial
information is available and for which the Board of Directors regularly conducts a review for the
purpose of making decisions about resources to be allocated to the segments and assess thesegments’ performance.
The Company conducts business operations by product and service. The “business related to theConstruction Equipment Rental Division” is the reporting segment.
The Company’s “business related to the Construction Equipment Rental Division” rents and sells
construction equipment and temporary materials for construction use.
2. Method of calculating the amount of net sales, income or loss, assets, liabilities and other items ofeach reporting segment
Except for the Standard for Measurement of Inventories, the accounting standards and methods
for the reported business segment complies with accounting policy that has been adopted in
preparing the consolidated financial statements.
The Company values inventory assets using prices before write-downs of book value based on
decline in profitability.
Reporting segment earnings are the values on an operating profit basis.
3. Information concerning the amount of net sales, income or loss, assets, liabilities and other items ofeach reporting segment
Prior consolidated fiscal year (From November 1, 2015 to October 31, 2016)(Unit: Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)Total

Net sales
Net sales to outside customers

131,208

13,662

144,870–––

131,208

13,662

144,870

Net sales or transfers between related
segments
Total
Segment income

14,057660

14,718Segment assets

170,233

7,873

178,10721,440494

21,9354438

83

25,307994

26,302Other items
Depreciation
Amortization of goodwill
Amount of increase of property, plantand equipment and intangible assets(Note) The “Other businesses” classification encompasses business segments not included in thereporting segment, and includes business related to the Steel Sales Division and business related
to the Information Products Division, welfare-related business and other businesses.

 19



Current consolidated fiscal year (From November 1, 2016 to October 31, 2017)(Unit: Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)Total

Net sales
Net sales to outside customers

142,414

16,013

158,428–––

Net sales or transfers between related
segments

142,414

16,013

158,428

Segment income

Total

15,415856

16,272

Segment assets

172,9817,793

180,775

23,285985

24,271

76

66

142

22,838

1,153

23,992Other items
Depreciation
Amortization of goodwill
Amount of increase of property, plantand equipment and intangible assets(Note) The “Other businesses” classification encompasses business segments not included in thereporting segment, and includes business related to the Steel Sales Division and business related
to the Information Products Division, welfare-related business and other businesses.
4. Difference between total reporting segment amount and the amount reported on the consolidated
financial statements, and the main reasons for the difference (Matters Pertaining to Reconciliation ofDifference)(Unit: Millions of yen)
Prior consolidated
fiscal year

Net sales

Current consolidated
fiscal year

Reporting segment total

131,208

142,414

Net sales for “Other businesses” classification

13,662

16,013––

144,870

158,428

Intersegment eliminations
Net sales reported in the consolidated financial statements(Unit: Millions of yen)
Prior consolidated
fiscal year

IncomeReporting segment total

Current consolidated
fiscal year

14,057

15,415

Income for “Other businesses” classification

660

856

Other adjustments

415

393

15,134

16,665

Operating profit reported in the consolidated financial
statements(Unit: Millions of yen)
Prior consolidated
fiscal year

AssetsReporting segment total

Current consolidated
fiscal year

170,233

172,981

Assets of “Other businesses” classification

7,873

7,793

Company assets (Note)

42,72846,769Total assets reported in the consolidated financial
statements

220,836

227,545 20(Note) Company assets are mainly assets used in administrative divisions at the parent company that are
not attributable to the reporting segment.
(Unit: Millions of yen)
Reporting segment total
Other items

Other businesses

Amount of adjustment

Amount reported in the
consolidated financial
statements

Prior
Current
Prior
Current
Prior
Current
Prior
Current
consolidated consolidated consolidated consolidated consolidated consolidated consolidated consolidated
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year

Depreciation

21,44023,285

494

985

162

156

22,097

24,428Amount of increase ofproperty, plant andequipment andintangible assets

25,307

22,838

994

1,153

425

526

26,727

24,518(Note) The adjustments to the increases in property, plant and equipment and intangible assets arecapital investments related to administrative divisions.
5. Information concerning changes in reporting segments etc.
(Change of useful lives)
As described in “Changes in Accounting Estimates,” the Company modified the useful lives ofrental equipment owned by Nishiken Co., Ltd., a consolidated subsidiary of Kanamoto. As a result,the segment income for the “Business related to the Construction Equipment Rental Division” for the
fiscal year under review decreased by ¥123 million.
(Per Share Information)
Prior consolidated fiscal year
(From November 1, 2015 to October 31, 2016)

Current consolidated fiscal year
(From November 1, 2016 to October 31, 2017)

Net assets per share¥2,169.93 Net assets per share¥2,440.41

Earnings per share¥229.16 Earnings per share¥304.05

Earnings per share on a fully diluted
basis

–

Earnings per share on a fully diluted
basis

The Company has not reported earnings per
share on a fully diluted basis because it does nothave any potential shares that would have a dilution
effect.

–Same as at left

(Note) The basis for calculating earnings per share is as follows.
(Unit: Millions of yen)
Prior consolidated fiscal year
(From November 1, 2015 to
October 31, 2016)
Profit attributable to owners of parent
Amount not attributed to commonshare shareholders
Profit attributable to owners of parent
related to common shares
Average number of shares
outstanding during the fiscal year

8,098

10,744

–

–

8,098

10,74435,339,216

35,339,024(Material Events after the Close of the Consolidated Fiscal Year)
The Company had no material items to report.

 21



Current consolidated fiscal year
(From November 1, 2016 to
October 31, 2017)