Six-Month Consolidated Financial Reportfor the Fiscal Year Ending October 31, 2022 (Japan GAAP)
Listed Company Name
Company Code Number
Listing Exchanges
URL
Representative
Inquiries

June 3, 2022
Kanamoto Co., Ltd.
9678
Tokyo Stock Exchange, Sapporo Stock Exchange
https://www.kanamoto.co.jp
Tetsuo Kanamoto
President and CEO
Shun Hirose
Director & Corporate Officer, Division Manager,
Accounting Division
TEL 81-11-209-1600

Scheduled date for submission of Quarterly Report
Scheduled date for commencement of dividend payments
Preparation of Quarterly Settlement Supplementary Explanatory Materials
Quarterly Earnings Briefings (For institutional investors and analysts)

June 13, 2022
July 4, 2022
Yes
Yes

(Numbers less than one million yen have been rounded down)

1.

Consolidated Operating Results for the Six-Month Period of the Fiscal Year Ending October
31, 2022(November 1, 2021 – April 30, 2022)(1) Consolidated Operating Results (Cumulative)
Net Sales
Millions of yen(Percentages show the change from the prior year)

Operating Profit%

Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Profit%

Millions of yen%

Millions of yen%

Fiscal year ending
October 31, 2022:
Second quarter

93,715

–

7,098

-11.9

7,457

-13.5

4,540

-8.2

Fiscal year ended
October 31, 2021:
Second quarter

95,225

4.2

8,061

-12.8

8,626

-4.6

4,945

-7.5

(Note) Comprehensive income (millions of yen)
Fiscal year ending October 31, 2022, Second quarter
Fiscal year ended October 31, 2021, Second quarter

Earnings per
Share

6,284
6,911

Earnings per
Share on a Fully
Diluted Basis

Yen

Yen

Fiscal year ending
October 31, 2022:
Second quarter

121.54–

Fiscal year ended
October 31, 2021:
Second quarter

130.81–(Notes)(-9.1%)(29.7%)

1. The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),
etc. from the beginning of the first quarter of the fiscal year ending October 31, 2022, and the figures for the second
quarter of the fiscal year ending October 31, 2022 are figures after the application of the said accounting standard.
As a result, the percentage of change for net sales from the same period of the previous year is not shown.
2. In the previous fiscal year, the Company finalized the provisional accounting treatment for business combinations,and the figures for the second quarter of the fiscal year ended October 31, 2021 reflect the finalized content of theprovisional accounting treatment.

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of April 30,
2022

304,810

137,51242.4

As of October 31,
2021

303,754

134,917

41.8(Reference) Equity (millions of yen)
As of April 30, 2022
As of October 31, 2021

129,135
126,956 1 

(Note) The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the first quarter of the fiscal year ending October 31, 2022, and the figures as of April 30, 2022 are
figures after the application of the said accounting standard.

2. Dividends
Annual Dividends per Share
End offirst quarterEnd ofsecond quarter

Yen

End ofthird quarter

Yen

Fiscal year ended October 31,
2021

–

25.00

Fiscal year ending October 31,
2022

–

35.00

Year-end

Yen

Fiscal year ending October 31,
2022 (projected)

Full-year
Yen

Yen

–

45.00

70.00

–

40.00

75.00

(Note) Has the Company revised its most recently released dividend projection?: No

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2022
(November 1, 2021 – October 31, 2022)(Percentages show the change from the prior year)
Net Sales
Millions of yen

Full year(Notes)

191,100

Operating Profit% Millions of yen–

15,600

Profit Attributable to
Owners of Parent

Ordinary Profit% Millions of yen

6.7

15,800% Millions of yen

2.7

9,700

%

8.9

Earnings per
Share
Yen

259.65

1. Has the Company revised its most recently released projected consolidated operating results during the quarter?: No
2. As the Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020), etc. from the beginning of the fiscal year ending October 31, 2022, the above projected consolidated operating
results are after the application of the said accounting standard. As a result, the percentage of change for net sales
from the previous fiscal year is not shown.

 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(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: Yes(b) Changes other than the above: No(c) Changes in accounting estimates: No(d) Retrospective restatements: No(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Significant Notes
Thereto (4) Notes Concerning Quarterly Consolidated Financial Statements (Changes in Accounting
Policies)” on page 13 of the Attachments.
(4) Number of shares issued (common shares)(a) Number of shares issued at the end of the period (including treasury shares)
As of April 30, 2022:
38,742,241 shares
As of October 31, 2021:
38,742,241 shares(b) Number of treasury shares at the end of the period
As of April 30, 2022:
1,799,465 shares
As of October 31, 2021:
924,846 shares(c) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Fiscal year ending October 31, 2022: Second quarter:
37,357,999 sharesFiscal year ended October 31, 2021: Second quarter:
37,810,252 shares
Note: Quarterly earnings reports are not subject to quarterly review by certified public accountants or
independent account auditors.
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 bereasonable. 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 6 of the Attachments for the conditions
used as assumptions for the projected operating results and matters to note before using the projected
operating results.
(Methods of obtaining the quarterly settlement supplementary explanatory materials and the content
of the quarterly earnings briefings)
The Company plans to hold an online meeting for institutional investors and analysts on Monday, June
6, 2022.
Following the meeting, the Company will upload the meeting highlights and the discussion (voicerecording) on the Company’s website as quickly as possible, together with the quarterly earnings
briefings 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 Significant Notes Thereto .....................................7(1) Quarterly Consolidated Balance Sheets ...................................................................................7(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ........................................................................................................9(Quarterly Consolidated Statements of Income) ...................................................................9(Consolidated Six-Month Period Ended April 30) ................................................................9(Quarterly Consolidated Statements of Comprehensive Income) ........................................... 10(Consolidated Six-Month Period Ended April 30) .............................................................. 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(Note on Significant Changes to Shareholders’ Equity)......................................................... 13(Changes in Accounting Policies)....................................................................................... 13(Supplemental Information) ............................................................................................. 14(Segment Information) .................................................................................................... 14

 4 

1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results
During the six-month period under review, Japan’s economy showed signs of picking up due to measuresagainst infection and the easing of restrictions on economic activity despite the continuing impact of
COVID-19. However, amid downside risk becoming more apparent due to semiconductor supply shortages,
rising raw material prices, etc., uncertainties are intensifying against the backdrop of factors such as thedeterioration of the situation in Ukraine.
In the construction industry in which the Group is involved, although public sector investment remained
steady and private sector construction investment has shown signs of gradual recovery, difficulties are
increasing in the environment surrounding the industry as rising material and energy prices as well as theshortage of skilled construction workers are becoming increasingly more severe.
In such circumstances, based on the three key measures in the Medium-Term Corporate Management
Plan “Creative 60” (FY2020-2024), the Group is strengthening the Alliance Group’s foundations andworking to further develop business through synergistic effects within the Group. In addition, the Group iscommitted to sustainable development and the enhancement of corporate value through the promotion offlexible investment strategy that responds to actual demand, and the acceleration of the improvement of
capital efficiency.
For the six-month period under review, the Group reported net sales of ¥93,715 million. On the earnings
front, partly due to an increase in selling, general and administrative expenses caused by investment in
human resources in preparation for the future, operating profit decreased 11.9% from the same period of
the prior fiscal year to ¥7,098 million, ordinary profit declined 13.5% to ¥7,457 million, and profit
attributable to owners of parent decreased 8.2% to ¥4,540 million.
Please note that the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter.
For details, please refer to “2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(4) Notes Concerning Quarterly Consolidated Financial Statements (Changes in Accounting Policies).”
Operating 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, which is Kanamoto’s core business, although performanceremained steady, primarily in disaster prevention and reduction and activities being carried out for Japan’s
National Resilience Plan as well as maintenance and renewal of aging social capital, a full-scale recovery
in rental demand for construction equipment did not eventuate as some regional disparities in construction
demand became more apparent.
In addition, the Group is strengthening its ability to respond to the fields of maintenance and repair ofsocial capital and renewable energy in light of medium- to long-term changes in the construction market
in addition to promoting the acceleration of digital transformation as well as technological development
and business alliances for customers’ diversifying needs despite the promotion of the appropriate
deployment and efficient operation of rental equipment.
Used construction equipment sales decreased 5.8% year on year, as Kanamoto has carried out theextension of the rental equipment operation period as planned at the beginning of the fiscal year.
Reflecting these factors, the Group posted net sales in the construction-related businesses of ¥85,417
million, and operating profit of ¥6,293 million, a decrease of 13.6% year on year.
< Other businesses >In the Group’s other businesses, net sales was ¥8,297 million and operating profit increased by 2.8%
year on year to ¥559 million, as the business related to the Steel Sales Division as well as the business
related to the Information Products Division and welfare-related business performed well.
 5 

(2) Qualitative Information Concerning Consolidated Financial Position(i) Assets, liabilities, and net assets
Total assets at the end of the second quarter under review stood at ¥304,810 million, an increase of¥1,055 million compared with the end of the prior fiscal year. This was primarily due to a total increase of¥4,138 million in property, plant and equipment including an increase of ¥3,361 million in rental equipment,
while current assets decreased by ¥2,943 million in total, including a decrease of ¥4,286 million in “notes
and accounts receivable - trade, and contract assets” compared with the prior fiscal year-end amount of“notes and accounts receivable - trade.”
Total liabilities stood at ¥167,298 million, a decrease of ¥1,539 million compared with the end of theprior fiscal year. This was primarily due to a decrease of ¥2,069 million in other under current liabilities.
Total net assets stood at ¥137,512 million, an increase of ¥2,595 million compared with the end of theprior fiscal year. This mainly reflects the posting of profit attributable to owners of parent of ¥4,540 million
and an increase of ¥1,292 million in foreign currency translation adjustment. Meanwhile, there weredecreases of ¥1,701 million and ¥1,966 million, due to dividends of surplus and purchase of treasury
shares, respectively.
(ii) Cash flows
Cash and cash equivalents (“cash”) at the end of the six-month period under review increased by ¥308
million compared with the end of the prior fiscal year to ¥55,866 million. Cash flows for the six-month
period under review are discussed below.
(Net cash provided by (used in) operating activities)
Cash provided by operating activities increased 4.1% from the same period of the prior fiscal year to¥20,913 million. This was primarily attributable to the following: profit before income taxes of ¥7,450
million, depreciation of ¥15,785 million, decrease in trade receivables of ¥4,356 million, as well as purchaseof rental equipment of ¥3,199 million, and income taxes paid of ¥2,435 million.
(Net cash provided by (used in) investing activities)
Cash used in investing activities was ¥2,276 million, compared with ¥2,353 million used in the same
period of the prior fiscal year. This mainly reflected the posting of ¥1,908 million for purchase of property,
plant and equipment.
(Net cash provided by (used in) financing activities)
Cash used in financing activities was ¥18,521 million, compared with ¥14,436 million used in the same
period of the prior fiscal year. This mainly reflected proceeds from long-term borrowings of ¥5,994 million,
repayments of installment payables of ¥12,839 million, repayments of long-term borrowings of ¥7,288
million, purchase of treasury shares of ¥2,000 million, and dividends paid of ¥1,700 million.
(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating
Results
There is no change to the projected consolidated operating results announced in the Financial
Statements Bulletin for the Fiscal Year Ended October 31, 2021 (Japanese GAAP) on December 10, 2021.

 6 

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of October 31, 2021

As of April 30, 2022

56,09339,30556,383––35,019

7,319

7,443

1,666

2,192

82

–

1,375
18,055
3,123-269
126,751

1,604
18,002
3,439-277
123,807262,239-164,193
98,046
42,680-24,656
18,024
9,764-8,141

272,603-171,196
101,40743,438-25,405
18,033
9,759-8,168

1,623

1,590

37,684
2,899-2,143756
156,135

37,9883,424-2,1701,254
160,273

4,111
1,276
1,516
6,904

4,079
1,411
1,632
7,122

9,249
2,175
3,046
-507
13,963177,003
303,754

9,200
1,943
3,041
-578
13,606
181,002304,810

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade,and contract assets
Electronically recorded monetary claims operating
Merchandise and finished goods
Costs on construction contracts inprogress
Raw materials and supplies
Construction machine parts
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
Customer relationship
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets 7 

(Millions of yen)
As of October 31, 2021

As of April 30, 2022

37,082960
24
13,055
1,269
2,681
1,548
24,545
6,063
87,23036,670980
12
13,093
1,392
2,335
1,632
25,2183,994
85,327

31,4602,888
44,486
566
588
1,501
115
81,607
168,837

31,342
3,349
44,365
359
593
1,758
202
81,970167,298

17,82919,32689,048-1,978124,226

17,82919,332
91,887-3,945125,104

2,249

2,226

0
541
-60

0
1,834
-30

2,729

4,030

7,960
134,917
303,754

8,377
137,512304,810

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Accounts payable - other
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Long-term accounts payable - other
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
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 8 

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Six-Month Period Ended April 30)(Millions of yen)Six months endedApril 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Insurance claim income
Rental income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries andassociates
Subsidy income
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current
assetsLoss on valuation of investment securities
Loss on extinguishment of tie-in shares
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 endedApril 30, 2022

95,22566,981
28,244
20,183
8,061

93,71565,69728,017
20,919
7,098

22
66
298
44
90
204
726

26
72
14
40
183
231
569

51
12
97
161
8,626

49
15
144
210
7,457

6

10

20

6

17
–
43

–
34
52

79

53

168
81
329
8,340
2,874
-38
2,835
5,504
558
4,945

4
–
58
7,450
2,093
383
2,477
4,973
433
4,540

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Six-Month Period Ended April 30)(Millions of yen)Six months endedApril 30, 2021
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 to noncontrolling interests

 10 

Six months endedApril 30, 2022

5,504

4,973

488

-22

0
914

-0
1,292

4

40

1,407
6,911

1,310
6,284

6,349

5,841

561

442

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six months endedApril 30, 2021

Six months endedApril 30, 2022

8,340
15,573361

7,450
15,785
298

73

43

404

461

-227

-244

-2,777-3,199

168

4

-20

-6

-29

67

94

84

32

22

-88

-99

321

292

51
-92
5,899
-851
-5,330

49
-174
4,356
-767
-795

846

1,397

81

–

-301
22,53070-374-2,142-1,417
23,61081-343-2,43520,084

20,913

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sale and retirement of
non-current assets
Cost transfer resulting from sale of rental
equipment
Purchase of construction equipment andmaterials
Purchase of rental equipment
Loss (gain) on valuation of investment
securities
Loss (gain) on sale of shares ofsubsidiaries and associates
Increase (decrease) in allowance for
doubtful accounts
Increase (decrease) in provision forbonuses
Increase (decrease) in retirement 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 trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable other
Loss (gain) on extinguishment of tie-insharesOther, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating
activities 11 

(Millions of yen)Six months endedApril 30, 2021

Six months endedApril 30, 2022

-292

-275

298

293

-2,292-1,908

13

25

-219
12
-3

-343
–
-3

7

–

22

22

-13

-227

23

20

103

78

-13

42

-2,353-2,276

-32

-12

-75

20

7,980
-7,280-12,773-724-0-1,5095,994-7,288-12,839-674-2,000-1,700-20-20-14,436-18,521

140

191

3,434

308

48,02355,557260–

51,71755,866

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time
deposits
Purchase of property, plant andequipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Proceeds from sale of intangible assets
Purchase of investment securities
Proceeds from sale of investment
securities
Proceeds from sale of shares ofsubsidiaries and associates
Loan advances
Proceeds from collection of loans
receivableCollection of long-term accounts
receivable-other
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Redemption of bonds
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of installment payables
Repayments of lease obligations
Purchase of treasury shares
Dividends paid
Dividends paid to non-controllinginterests
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
periodIncrease in cash and cash equivalents
resulting from merger with unconsolidated
subsidiaries
Cash and cash equivalents at end of period

 12 

(4) Notes Concerning Quarterly Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(Note on Significant Changes to Shareholders’ Equity)
The Company repurchased 889,500 shares of treasury shares in accordance with the resolution of themeeting of the Board of Directors held on December 10, 2021.
As a result, treasury shares increased by ¥1,999 million during the six-month period ended April 30,
2022, resulting in a net loss of ¥3,945 million for treasury shares as of the end of the six-month period
ended April 30, 2022.
(Changes in Accounting Policies)(Application of accounting standard for revenue recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ regulations effective from the beginning of the first quarter, and it
has recognized revenue at the time the control of promised goods or services is transferred to thecustomer at the amount expected to be received upon exchange of said goods or services. The mainchanges resulting from the application are as follows:(1) Change in the timing of revenue recognition
With respect to revenues from construction-related businesses and other businesses, the Grouppreviously recognized revenues from the rental of construction equipment to customers and sales of
products at the time of shipment. However, the Group now recognizes revenue at the time of delivery
when control over the rental construction equipment or goods sold is transferred to the customer.
(2) Revenue recognition for agent transactions
For certain transactions, the Group previously recognized as revenue the gross amount ofconsideration received from customers. However, for transactions in which the Group’s role in theprovision of goods or services to customers is that of an agent, the Group now recognizes revenue as
the net amount received from customers less the amount paid to suppliers.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the
new accounting policy had been applied to periods prior to the beginning of the first quarter was added
to or deducted from the opening balance of retained earnings of the first quarter, and thus the new
accounting policy was applied from such opening balance; provided, however, that the new accounting
policy was not retrospectively applied to contracts for which nearly all the revenue amounts had beenrecognized according to the previous treatment in periods prior to the beginning of the first quarter, byapplying the method provided for in paragraph 86 of the Accounting Standard for Revenue Recognition.
As a result of this change, for the six-month period under review, net sales decreased by ¥1,704 million
and cost of sales decreased by ¥1,704 million, while operating profit, ordinary profit and profit before
income taxes each increased by ¥0 million. In addition, the opening balance of retained earnings
decreased by ¥0 million.
Due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ
regulations, “Notes and accounts receivable - trade” under current assets of the consolidated balance
sheet as of the end of the prior fiscal year has been included in “Notes and accounts receivable - trade,and contract assets” under current assets from the quarterly consolidated balance sheet as of the end of
the first quarter. In accordance with the transitional treatment provided for in paragraph 89-2 of the
Accounting Standard for Revenue Recognition, figures for the prior fiscal year have not been restated inaccordance with the new approach to presentation. Furthermore, the information on disaggregation ofrevenue from contracts with customers during the six-month period of the prior fiscal year has not been
disclosed as allowed by the transitional treatment provided for in paragraph 28-15 of the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020).

 13 (Application of accounting standard for fair value measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter, and it has applied
the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc.
prospectively in accordance with the transitional measures provided for in paragraph 19 of the AccountingStandard for Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no impact on the quarterly consolidated
financial statements.
(Supplemental Information)(Changes to a retirement benefit plan)
NISHIKEN CO., LTD., a consolidated subsidiary of the Company, shifted from a lump-sum retirement
benefit plan to a defined contribution pension plan on January 31, 2022, except for certain eligible
employees. The accounting treatment in this transition applied “Accounting for Transfer between
Retirement Benefit Plans” (ASBJ Guidance No. 1, December 16, 2016) and “Practical Solution on
Accounting for Transfer between Retirement Benefit Plans” (ASBJ Practical Issues Task Force No. 2,
February 7, 2007). As a result, extraordinary income of ¥34 million was recorded for the six-month period
under review.
(Segment Information)I
Six-month period ended April 30, 2021 (From November 1, 2020 to April 30, 2021)
1.

Information concerning the amount of net sales and income or loss by reporting segment(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)

86,603

8,622

95,225–––86,603

8,622

95,225Net sales
Net sales to outside customers
Net sales or transfers between
related segments
Total

Total

Segment income
7,284
544
7,828
(Notes) 1. The “Other businesses” classification encompasses business segments notincluded in the reporting segment, and includes business related to the Steel Sales
Division and business related to the Information Products Division, welfare-related
business and other businesses.
2. The segment information for the six-month period ended April 30, 2021 reflects
material changes that were made to the initial allocation of acquisition costs as aresult of finalizing the provisional accounting treatment for business combinations.
2.

Difference between total reporting segment income or loss and the amount reported on the Quarterly
Consolidated Statement of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
IncomeAmountReporting segment total

7,284

Income for “Other businesses” classification

544

Other adjustments
Operating profit reported on the Quarterly
Consolidated Statement of Income

232
8,061

(Note) The segment information for the six-month period ended April 30, 2021 reflects
material changes that were made to the initial allocation of acquisition costs as a resultof finalizing the provisional accounting treatment for business combinations.

 14 

II

Six-month period ended April 30, 2022 (From November 1, 2021 to April 30, 2022)
1.

Information concerning the amount of net sales and income or loss by reporting segment, andinformation on disaggregation of revenue(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)

59,834

3,655

63,49018,641

4,121

22,762

6,849

520

7,370

85,326

8,297

93,62391
85,417–
8,297

91
93,715–––85,417

8,297

93,715

6,293

559

6,853

Net sales
Rental contracts
Sales of merchandise andfinished goods
Other
Revenue from contracts withcustomers
Other revenues
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 andbusiness related to the Information Products Division, welfare-related business andother businesses.
2.

Difference between total reporting segment income or loss and the amount reported on the Quarterly
Consolidated Statement of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
Income3.

AmountReporting segment total
Income for “Other businesses” classification
Other adjustments

6,293
559
244

Operating profit reported on the Quarterly
Consolidated Statement of Income

7,098

Matters pertaining to changes in reporting segments, etc.
As described in “Changes in Accounting Policies,” the Company has applied the “Accounting Standard
for Revenue Recognition” and relevant ASBJ regulations from the beginning of the first quarter, andchanged the accounting treatment for revenue recognition. Accordingly, the Company has changed themethod of measuring profit or loss of operating segments.
For the six-month period under review, as a result of this change, and compared with the figuresobtained by the previous method, net sales decreased by ¥559 million for the construction-related
businesses, and net sales decreased by ¥1,144 million and segment income increased by ¥0 million forother businesses.

 15 