Fiscal Year ending October 31, 2008

Summary of First Quarter Operating Results (Consolidated)
March 7, 2008

Listed Company Name

Kanamoto Company, Ltd.

Company Code Number

9678

Listing Exchanges

Tokyo Stock Exchange, Sapporo Stock Exchange（URL http://www.kanamoto.co.jp）
Representative

Kanchu Kanamoto

Inquiries

Nobuhito Utatsu

President

Director & Corporate Officer, Division Manager, Accounting Division
TEL 81-11-209-1600
1. Operating Results for the First Quarter of the Fiscal Year Ending October 31, 2008
(November 1, 2007 - January 31, 2008)(1) Consolidated Operating Results(Numbers less than one million yen have been rounded down)

Revenues
Millions of yen％

Operating Income

Ordinary Income

Millions of yen

Millions of yen％％

Fiscal Year Ending October 31,
2008: First Quarter

18,375 ( -2.5 )

1,016 ( -53.2 )Fiscal Year Ended October 31,
2007: First Quarter

18,856 (7.7 )2,173 (

68.4 )

2,115 ( 70.9 )Fiscal Year Ended October 31,
2007

68,626 (0.9 )4,236 (

4.1 )

4,416 ( 16.6 )Net Income per
Share of Common

Net Income per Shareon a Fully Diluted

％

Yen

Yen

Fiscal Year Ending October 31,
2008: First Quarter

499 ( -69.2 )15. 20－Fiscal Year Ended October 31,
2007: First Quarter

1,618 ( 410.0 )49. 26－

Fiscal Year Ended October 31,
2007

3,035 ( 74.2 )92. 40－Net Income
Millions of yen

974 ( -53.9)(Note) The percentages shown for revenues, operating income, ordinary income and net income are thepercent increase or decrease compared to the same period of the prior fiscal year

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.1

(2) Change in Consolidated Financial Position(Numbers less than one million yen have been rounded down)

Total Assets

Net Assets

Millions of yen

Millions of yen

CapitalAdequacy Ratio

Net Assets per
Share

％

Yen

Fiscal Year Ending October
31, 2008: First Quarter

88,95039,46144.1

1,193.12

Fiscal Year Ended October
31, 2007: First Quarter

89,61339,82944.3

1,208.57

Fiscal Year Ended October
31, 2007

85,15539,97346.9

1,216.98(3) Consolidated Cash Flows(Numbers less than one million yen have been rounded down)

Cash Flow fromOperating
Activities

Cash Flow from
Investing
Activities

Cash Flow from
Financing
Activities

Balance of Cashand Equivalents
at End of Period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal Year Ending October
31, 2008: First Quarter

572

-410

-129

17,989Fiscal Year Ended October
31, 2007: First Quarter

2,018

681

–548

20,548

Fiscal Year Ended October
31, 2007

4,479-1,427-4,237

17,213

2. Dividends
Dividendper Share
Yen

Fiscal Year Ending October
31, 2008: First Quarter
Fiscal Year Ending October
31, 2007: First Quarter－－

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 2008
(November 1, 2007 - October 31, 2008)(Percentages show the change from the prior year)

Operating
IncomeRevenues

Millions of yen%

Millions of yen

Ordinary
Income% Millions of yen

Net Income
per Share

Net Income% Millions of yen%

Yen

Interim period

37,500

3.5

3,400

-1.1

3,300

-3.6

1,800

-24.4

54.80

Full year

71,900

4.8

4,600

8.6

4,400

-0.4

2,300

-24.2

70.02

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.2

4. Other(1) Changes to material subsidiaries during the period (transfer of specified subsidiaries in conjunction
with revision to scope of consolidation)? Yes
Newly consolidated Kyushu Kensan Co., Ltd.
Kensan Fukuoka Co., Ltd.
Kensan Techno Co., Ltd.
(2) Has the Company adopted simplified methods for accounting treatment? Yes(3) Are there any differences with the methods of recognition used in the accounting treatment for themost recent consolidated fiscal year? No(Note) For details see “4. Other matters” on Page 7 (Qualitative information concerning the financial
statements).

5. Summary of Non-consolidated Operating Results (Reference)(November 1, 2007 - January 31, 2008)
Revenues
Millions of yen％

Operating Income

Ordinary Income

Millions of yen

Millions of yen％％

Fiscal Year Ending October 31,
2008: First Quarter

15,643 ( -7.3 )1,011 ( -49.6 )Fiscal Year Ended October 31,
2007: First Quarter

16,881 (8.3 )2,009 (

83.5 )

2,018 ( 79.8 )Fiscal Year Ended October 31,
2007

61,576 (1.4 )4,012 (

8.0 )

4,372 ( 16.9 )Net Income

993 ( -50.8)

Net Income per

Net Income per Share

Share of Common

on a Fully Diluted

％

Yen

Yen

Fiscal Year Ending October 31,
2008: First Quarter

567 ( -64.6 )17. 28－

Fiscal Year Ended October 31,
2007: First Quarter

1,602 ( 461.4 )48. 77－

Fiscal Year Ended October 31,
2007

3,431 ( 99.5 )104. 44－

Millions of yen(2) Non-consolidated Financial Position
Capital
Total Assets

Net Assets

Net Assets per

Adequacy

Share

Ratio
Millions of yen

Millions of yen%

Yen

Fiscal Year Ending October
31, 2008: First Quarter

83,461

40,21148.2

1,224.25

Fiscal Year Ended October
31, 2007: First Quarter

86,225

40,11046.5

1,220.77

Fiscal Year Ended October
31, 2007

82,90240,78749.2

1,241.77

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.3

6. Projected Non-consolidated Operating Results for the Fiscal Year Ending October 2008
(November 1, 2007 - October 31, 2008)(Percentages show the change from prior year)

Operating
IncomeRevenues

Ordinary
IncomeMillions of yen%

Interim period

32,100

-1.1

3,100

1.0

3,000

-6.1

Full year

61,700

0.2

4,300

7.2

4,100

-6.2

Millions of yen% Millions of yen

Net Income
per Share

Net Income% Millions of yen

%

Yen

1,600

-31.0

48.71

2,200

-35.9

66.98

Note: Explanation concerning appropriate use of the projected operating results and other items to note
The projected operating results were prepared based upon information available to the Company at thetime the projections were announced as well as various assumptions concerning the future economic
and business environment. Actual operating results may differ from the projected figures depending
upon various factors in the future.

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.4

【Qualitative information and financial statements】
1. Qualitative information concerning consolidated operating results< Management Environment >(From November 1, 2007 to January 31, 2008)
During the first quarter, export-related industries that had been growing at a steady pace began to slow inthe wake of rising raw material costs sparked by higher crude oil prices, and appreciation of the yen. In otherindustries as well, corporate earnings came under pressure as firms were unable to pass on the cost of raw
materials in product prices. At the same time, personal consumption, which individuals had been supportingby drawing on savings, declined as younger consumers turned away from high-priced consumer goods andfamilies instituted household budget-saving measures, including restraints on purchasing, throwing intoeven sharper relief the difference between the majority of the general public and the wealthiest brackets. In
regions struggling with severe fiscal conditions, the sense of stagnation was palpable.
In the construction-related industries that are Kanamoto’s customers, bankruptcies among local
construction companies and mid-sized developers were striking. Many of these business failures originatedin delays in private sector new housing starts, including single-family dwellings and small and medium-sizedcondominiums, which were negatively affected by enforcement of the revised Building Standards Law thatcreated a social problem widely ridiculed as a bureaucrat-led recession.

< First Quarter Consolidated Operating Results > (From November 1, 2007 to January 31, 2008)[ Business related to the Construction Equipment Rental Division ]In the construction-related activity that is Kanamoto’s core business, the nationwide delay in construction
works resulting from the revised Building Standards Law was quite marked. Although the market share of
the Kanamoto Group in each region did not change compared with the same period of the previous
consolidated fiscal year, operating results fell year-on-year, even in regions such as Hokkaido and Tohoku
that had enjoyed strong results one year earlier. Nevertheless, in addition to the Kanto Region, operating
results also improved year-on-year in the Kinki Chubu region with the exception of Hyogo Prefecture, aresult that verifies demand is robust in Japan’s three major metropolitan areas of Tokyo, Nagoya and Osaka,
despite the severe environment.
By region, revenues in the Hokkaido Region fell 6.1% from the same period of the previous consolidated
fiscal year, and dropped 12.6% in the Tohoku Region. Revenues in the Kanto & Shinetsu Region increased
2.2%, benefiting from large projects, such as expansion of the Tokyo International Airport (Haneda), which
had been delayed. In the Kinki & Chubu Region, revenues were off 3.0%. On the other hand, revenues in
Chugoku and in the Shikoku and Kyushu Region jumped 123.9% from one year earlier. By segment, rental
revenues edged down 1.0%. Sales revenues decreased 5.7% year-on-year, despite strong revenues fromboth used equipment sales and domestic sales in line with the Company’s initial plan. This reflected a delay
in used equipment sales in the quarter before the first quarter one year earlier, which were subsequently
booked in sales revenues for the first quarter of the previous consolidated fiscal year.
As a result, in the construction-related businesses of the entire Kanamoto Group, revenues decreased 1.9%
from the same period of the previous consolidated fiscal year to ¥17,076 million, and operating income
decreased 52.2% year-on-year to ¥1,023million.
[ Business related to the Steel Sales Division ]Businesses related to the Steel Sales Division, which Kanamoto is developing in Hokkaido, were also affectedby the delay in construction starts resulting from enforcement of the revised Building Standards Law.
Revenues fell 13.5% year-on-year to ¥1,154 million, and the operating loss was ¥15 million.

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.5

[ Business related to the Information Products Division and Other Businesses ]In the Company’s information and telecommunications-related division, PC rentals as well as usedequipment sales were strong. Revenues rose 33.5% from the same period one year earlier to ¥143 million,
and operating income increased 294.0% from the same period of the previous consolidated fiscal year to¥18 million.
[ Business development issues deserving special mention and status of branch office changes ]During the first quarter, Kanamoto opened its new Mikasa Branch in Mikasa City, Hokkaido and the Tobetsu
Branch in Tobetsu-cho in Ishikari-gun, Hokkaido. The Company did not close any branches during thequarter. In addition, in the first quarter Kanamoto made Kyushu Kensan Co., Ltd. (President andRepresentative Director: Shinji Ota; Head Office: Fukuoka City), which is developing a rental business forfoundation and other equipment, mainly in the vicinity of Fukuoka in northern Kyushu, and that company’s
subsidiaries Kensan Fukuoka Co., Ltd. and Kensan Techno Co., Ltd., new consolidated subsidiaries.
2. Qualitative information concerning consolidated financial position(1) Assets, liabilities and net assets
Compared with the end of the prior consolidated accounting fiscal year, total assets at the end of the firstquarter under review had increased by ¥3,794 million to ¥88,950 million. This primarily reflected an increasein cash and deposits and accounts receivable, trade, in conjunction with the addition of Kyushu Kensan Co.,
Ltd., Kensan Fukuoka Co., Ltd. and Kensan Techno Co., Ltd. as newly consolidated subsidiaries.
Net assets decreased by ¥511 million compared with the end of the previous consolidated fiscal year to¥39,461 million. This was mainly a decrease in the valuation difference on other investment securities. As aresult, the shareholders' equity ratio at the end of the first quarter was 44.1%.
(2) Consolidated Cash FlowsThe balance of cash and cash equivalents at the end of the first quarter under review decreased ¥2,559
million from the same period of the previous consolidated fiscal year, to ¥17,989 million. Cash flows for the
consolidated fiscal year under review are discussed below.
(Cash flow from operating activities)
Cash flow from operating activities was ¥572 million, a decrease of ¥1,446 million from the same period of
the previous consolidated fiscal year. This was mainly the result of the decrease in income before taxes andadjustments.
(Cash flow from investing activities)
Cash flow used in investing activities was ¥410 million, compared with cash flow provided by investing
activities of ¥681 million in the same period of the prior consolidated fiscal year. This mainly reflected adecrease in cash provided from the sale of tangible fixed assets.
(Cash flow from financing activities)
Cash flow used in financing activities was ¥129 million. This was ¥419 million less than in the same periodof the prior consolidated fiscal year. This mainly reflected an increase in funds provided by long-term bankloans.
3. Qualitative information concerning projected consolidated operating results
Kanamoto has not made any changes at this time to its projected interim and full-year operating results.
Although first quarter operating results were affected by construction delays caused by revision of the
Building Standards Law and fell below the Company’s initial plan, overall construction demand since thesecond half of January 2008 appears to be on a recovery trend. Improvement in the timing of construction
starts also is expected from this spring, when the structural calculation software that was to be soldsimultaneously with enforcement of the revised law is scheduled to be supplied.
These projected consolidated operating results were prepared using projections based on information
Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008P.6

available to the Company as of the date this material was released and forecasts of the future economic,
environment, and include various risks and uncertainty factors.
Accordingly, there is a possibility the Company’s actual consolidated operating results will differ from the
projected amounts shown above as a result of various future factors, including but not limited to economic
conditions surrounding the Company, market trends, and competitive conditions.
4. Other matters(1) Changes in material subsidiaries during the period under review (changes in specific subsidiaries in
conjunction with a change in the scope of consolidation)
Kyushu Kensan Co., Ltd., Kensan Fukuoka Co., Ltd. and Kensan Techno Co., Ltd., which were treated as
non-consolidated subsidiaries in the past, were included in the scope of consolidation when preparing theconsolidated financial statements because the importance of these companies to Kanamoto's operations has
increased.
(2) Adoption of the simplified methods for accounting treatment
The Company uses book value for inventory.
The Company charges an amount to its allowance for doubtful accounts based on actual loss experience inthe prior consolidated accounting fiscal year for normal accounts.
(3) Differences with the methods of recognition used in the accounting treatment for the most recent
consolidated fiscal year
The Company had no material items to report.

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.7

1. (Summary) First Quarter Consolidated Balance Sheets(Unit: Thousands of yen, %)Prior FY Quarter Current Quarter

PeriodItem(First Quarter of (First Quarter of
the Consolidated the Consolidated
Accounting Fiscal Accounting Fiscal
Year EndedYear Ending
October 31, 2007) October 31, 2008)(Reference)

Consolidated
Accounting Fiscal
Year Ended
October 31, 2007

Change fromprior year

AmountAmountAmountPercent

Amount1．Cash and deposits

20,548,969

13,332,982-7,215,986-35.1%

11,913,890

2．Notes receivable, trade

14,722,876

15,288,091

565,214

3.8%

14,239,136－

4,850,000

4,850,000－

5,300,000

495,225

477,596-17,629-3.6%

533,600

1,177,502

1,004,161-173,341-14.7%

1,010,645

6．Deferred tax assets

333,364

304,844-28,519-8.6%

360,573

7．Other

597,639

1,263,497

665,857

111.4%

457,321

Allowance for doubtful
accounts-527,744-548,898-21,153

4.0%-488,905

Total current assets

37,347,833

35,972,275-1,375,558-3.7%

33,326,262

Rental(1) equipment assets

9,921,091

11,390,322

1,469,231

14.8%

9,523,031

Buildings(2) and structures

6,605,659

6,611,509

5,849

0.1%

6,671,521

743,101

744,328

1,226

0.2%

750,333

25,991,252

26,874,907

883,655

3.4%

26,268,316

228,536

128,114-100,422-43.9%

46,172247,919

248,072152

0.1%

238,963

43,737,561

45,997,254

2,259,692

5.2%

43,498,339(1) Goodwill

359,379

1,009,752

650,372

181.0%

275,797(2) Other137,693

135,470-2,222-1.6%

137,516

497,072

1,145,222

648,150130.4%

413,314

Assets（I）

Current Assets

3．Negotiable securities
4．Inventory
5．Construction equipment

II

Fixed assets

1. Tangible fixed assets

Machinery, equipment,(3) vehicles and delivery
equipment(4) LandConstruction in(5) progress
Other
Total tangible fixed
assets
2. Intangible fixed assets

Total intangible fixed
assetsSummary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.8

Investments and other3. assets(1) Investment securities

6,858,369

4,122,956-2,735,413-39.9%

6,610,180(2) Other

1,889,829

2,554,471

664,64235.2%

2,070,164

Allowancefor doubtful accounts-717,223-842,144-124,920

17.4%-762,464

Total investments andother assets

8,030,975

5,835,283-2,195,691-27.3%

7,917,880

Total fixed assets

52,265,609

52,977,761

712,152

1.4%

51,829,534

89,613,442

88,950,037-663,405-0.7%

85,155,797

Total Assets(Unit: Thousands of yen, %)Prior FY Quarter Current Quarter

PeriodItem

Consolidated
Accounting Fiscal
Year Ended
October 31, 2007

Change fromprior year

Amount12,762,257

12,957,361

195,103

1.5%

11,292,635

2．Short-term bank loans

535,000

372,822-162,177-30.3%

330,000bank loans
3．Long-term
due within one year

10,082,356

9,037,396-1,044,960-10.4%

8,972,356

4．Current portion of bonds－

40,00040,000－－5．Corporate taxes payable

1,350,718

420,875-929,843-68.8%

1,449,478

664,329

741,81477,484

11.7%

552,926

2,335,892

2,778,094

442,20118.9%

2,346,872

719,902678,138-41,764-5.8%

642,568

28,450,457

27,026,502-1,423,954-5.0%

25,586,836

16,285,472

16,784,848

499,376

3.1%

15,718,705－

40,00040,000－－1,726,803

956,266-770,537-44.6%

935,980

131,784

140,253

8,468

6.4%

132,633

2,689,868

4,021,772

1,331,903

49.5%

2,486,318

499,358

518,416

19,057

3.8%

321,805

Total long-term
liabilities

21,333,288

22,461,556

1,128,267

5.3%

19,595,442

Total Liabilities

49,783,745

49,488,058-295,686-0.6%

45,182,279

Liabilities

AmountPercent

Amount)Current liabilities
and accounts
1．Notespayable, tradebonuses to
6．Accrued
employees
7．Accounts payable, other
8．Other
Total current liabilities
II(Reference)

Amount(I(First Quarter of (First Quarter of
the Consolidated the Consolidated
Accounting Fiscal Accounting Fiscal
Year EndedYear Ending
October 31, 2007) October 31, 2008)

Long-term liabilities
1．Long-term bank loans
2．Bonds
employees
3．Accrued
retirement benefits
allowances
4．Retirement
to directors and auditors
accrued5．Long-term
expenses
6．Other

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.9

(Unit: Thousands of yen, %)Prior FY Quarter

PeriodItem

Current Quarter(First Quarter of(First Quarter of
the Consolidated
the Consolidated
Accounting Fiscal
Accounting Fiscal
Year Ending
Year Ended
October 31,
October 31, 2007)
2008)(Reference)

Consolidated
Accounting Fiscal
Year Ended
October 31, 2007

Change fromprior year

AmountAmount1. Paid-in capital

9,696,717

9,696,717－－

9,696,717

2. Capital surplus

10,960,869

10,960,869－－

10,960,869

3. Earned surplus

16,212,507

17,333,599

1,121,091

6.9%

17,333,642

4. Treasury stock-8,577-20,472-11,895

138.7%-19,784

36,861,517

37,970,713

1,109,196

3.0%

37,971,444

Valuation difference onother investment
securities

2,847,934

1,217,920-1,630,013-57.2%

2,002,072

Total Valuation andTranslation
Adjustments

2,847,934

1,217,920-1,630,013-57.2%

2,002,072

120,245

273,344

153,098

127.3%－

Total Net Assets

39,829,697

39,461,978-367,719-0.9%

39,973,517

Total Liabilities andNet Assets

89,613,442

88,950,037-663,405-0.7%

85,155,797（
I

Net Assets

AmountPercent

Amount）Owners’ equity

Total Owners’ Equity
andII Valuationtranslation adjustments

III Minority interests

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.10

2. (Summary) First Quarter Consolidated Statements of Income
PeriodItem

Prior FY Quarter(Unit: Thousands of yen, %)Current Quarter(First Quarter of(First Quarter of
the Consolidated
the Consolidated
Accounting Fiscal
Accounting Fiscal
Year Ending
Year Ended
October 31,
October 31, 2007)
2008)

AmountAmountI Revenuesof revenues
II Costfrom operations

18,856,014

Gross profit(Reference)

Consolidated
Accounting Fiscal
Year Ended
October 31, 2007

Change fromprior year

AmountPercent

Amount18,375,372-480,642-2.5%

68,626,913

12,488,476

12,807,517

319,040

2.6%

49,490,405

6,367,537

5,567,854-799,682-12.6%

19,136,507

Selling, general and
III administrative
expenses

4,194,275

4,551,370

357,095

8.5%

14,899,972

Operating income

2,173,262

1,016,484-1,156,778-53.2%

4,236,534

1. Interest revenue

561

10,76010,198－44,782

2. Dividend income

13,666

17,436

3,770

27.6%

51,715on sale of
3. Gaininvestment securities

3,482

－

-3,482-100.0%287,528

4. Insurance benefits

9,121

9,432

310

3.4%

38,877

5. Rents received

21,952

19,702-2,250-10.2%

81,409

－

266

266

－

105,737

29,696

34,408

4,712

15.9%

102,577

78,48192,007

13,525

17.2%

712,627

107,108

80,694-26,414-24.7%

338,051－

22,39022,390－75,15528,70230,801

2,099

7.3%

119,684

135,810

133,886-1,924-1.4%

532,891

2,115,933

974,605-1,141,328-53.9%

4,416,270

on sale of fixed
1. Gainassets920,700

16,261-904,439-98.2%

921,056

Gain on reversal of
2. allowance for
doubtful accounts

20,634

19,654

-979

-4.7%

21,109

752

681

-71

-9.5%

858,670942,088

36,597-905,490-96.1%

1,800,836

39,17917,308-21,871-55.8%

68,231IV Non-operating
revenues

6. Cash bonus received
7. Other
Total non-operating
revenues
VNon-operating
expenses

1. Interest expense
on sale of notes
2. Lossreceivable
3. Other
Total non-operating
expenses
Ordinary income
VI Extraordinary profits

3. Other
Total extraordinary
profits
VII Extraordinary losses
Loss on sale or
1. retirement of fixed
assetsSummary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.11

2. Impairment loss

890

490

-400

-44.9%

890

loss on
3. Valuation
investment securities

3,516

5,873

2,357

67.0%

11,016

4. Other

19,50821,688

2,180

11.2%

369,022

Total extraordinary
losses

63,09445,360-17,733-28.1%

449,161

Income before taxes
and adjustments

2,994,927

965,842-2,029,085-67.8%

5,767,945

1,320,021

400,836-919,184-69.6%

2,286,833

28,21846,15017,931

63.5%

410,200

28,085

19,611-8,474-30.2%

35,493

1,618,600

499,243-1,119,357-69.2%

3,035,418

Corporate, local andbusiness taxes
Adjustment forcorporate and othertaxes
Minority interest inincomeNet income

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.12

3. (Summary) First Quarter Consolidated Statement of Changes in Net Assets

First quarter of the prior consolidated accounting fiscal year (November 1, 2006 - January 31, 2007)(Thousands of yen)
Owners’ equity

Balance at the end of the priorconsolidated fiscal year
(October 31, 2006)

Paid-in capital

Capital surplus

Earned surplus

Treasury stock

9,696,717

10,960,869

14,889,638-6,303

Total owners’
equity35,540,922

Change of items during the firstquarter under review
Dividends from surplus-295,732-295,732

First quarter net income

1,618,600

1,618,600-2,273Purchase of treasury stock-2,273

Net change of items otherthan owners’ equity during
the first quarter under review
Total change of items during thefirst quarter under review
Balance at the end of thefirst quarter under review(January 31, 2007)－－－

1,322,868-2,273

1,320,595

9,696,717

10,960,869

16,212,507-8,57736,861,517

Valuation and translation adjustments

Balance at the end of the priorconsolidated fiscal year
(October 31, 2006)

Valuationdifference on otherinvestment
securities

Total valuation andtranslation
adjustments

Minority interests

2,418,684

2,418,684

92,159Total net assets

38,051,766

Change of items during the firstquarter under review
Dividends from surplus-295,732

First quarter net income

1,618,600-2,273Purchase of treasury stock
Net change of items otherthan owners’ equity during
the first quarter under review

429,249

429,249

28,085457,335

Total change of items during thefirst quarter under review

429,249

429,249

28,085

1,777,930

2,847,934

2,847,934

120,245

39,829,697

Balance at the end of thefirst quarter under review(January 31, 2007)

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.13

First quarter of the current consolidated accounting fiscal year
(November 1, 2007 - January 31, 2008)(Thousands of yen)
Owners’ equity

Balance at the end of the priorconsolidated fiscal year
(October 31, 2007)

Paid-in capital

Capital surplus

Earned surplus

Treasury stock

9,696,717

10,960,869

17,333,642-19,784

Total owners’
equity37,971,444

Change of items during the firstquarter under review
Dividends from surplus-361,311-361,311

First quarter net income

499,243

499,243

Change of scope of
consolidation-137,975-137,975-687

Purchase of treasury stock-687

Net change of items otherthan owners’ equity during
the first quarter under review
Total change of items during thefirst quarter under review
Balance at the end of thefirst quarter under review(January 31, 2008)

－
－

－

-43

-687

-731

9,696,717

10,960,869

17,333,599-20,472

37,970,713

Valuation and translation adjustments

Balance at the end of the priorconsolidated fiscal year
(October 31, 2007)

Valuationdifference on otherinvestment
securities

Total valuation andtranslation
adjustments

Minority interests

2,002,072

2,002,072－

Total net assets

39,973,517

Change of items during the firstquarter under review
Dividends from surplus-361,311

First quarter net income

499,243

Change of scope of
consolidation-137,975-687

Purchase of treasury stock
Net change of items otherthan owners’ equity during
the first quarter under review-784,152-784,152

273,344-510,807

Total change of items during thefirst quarter under review-784,152-784,152

273,344-511,539

Balance at the end of thefirst quarter under review(January 31, 2008)

1,217,920

1,217,920

273,344

39,461,978

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.14

(Reference) Prior Consolidated Accounting Fiscal Year (From November 1, 2006 to October 31, 2007)(Thousands of yen)
Owners’ equity
Paid-in capital
Balance at the end of theprevious consolidated
accounting fiscal year
(October 31, 2006)

Capital surplus

Earned surplus

Treasury stock

10,960,869

14,889,638-6,303

9,696,717

Total owners’
equity35,540,922

Change of items during theconsolidated accounting fiscal
year under review
Dividends from surplus-591,414-591,414

Net income

3,035,418

3,035,418-13,481

Purchase of treasury stock-13,481

Change of items other thanowners’ equity during theconsolidated accounting
fiscal year (net amount)－

Total changes of items during
the consolidated accounting
fiscal year under review－－

2,444,003-13,4812,430,522

Balance at the end of theconsolidated accounting fiscal
year under review(October 31, 2007)

9,696,717

10,960,869

17,333,642-19,784

37,971,444

Valuation and translation adjustments

Balance at the end of theprevious consolidated
accounting fiscal year
(October 31, 2006)

Valuation differenceon other investment
securities

Total valuation andtranslation
adjustments

2,418,684

2,418,684

Minority interests

92,159Total net assets

38,051,766

Change of items during theconsolidated accounting fiscal
year under review
Dividends from surplus-591,414

Net income

3,035,418-13,481

Purchase of treasury stock
Change of items other thanowners’ equity during theconsolidated accounting
fiscal year (net amount)-416,611-416,611-92,159-508,771

Total changes of items during
the consolidated accounting
fiscal year under review-416,611-416,611-92,159

1,921,750

Balance at the end of theconsolidated accounting fiscal
year under review(October 31, 2007)

2,002,072

2,002,072－

39,973,517

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.15

4. (Summary) First Quarter Consolidated Statements of Cash Flows
Prior FY Quarter

PeriodItem
Ⅰ Cash flow from operating activities
Income before taxes andadjustments
Depreciation and amortization
expenseImpairment loss

(Unit: Thousands of yen)
Current Quarter(Reference)(First Quarter of theConsolidated
Accounting Fiscal Year
Ended October 31,
2007)(First Quarter of theConsolidated
Accounting Fiscal YearEnding October 31,
2008)

Consolidated
Accounting Fiscal Year
Ended October 31,
2007

AmountAmountAmount2,994,927

965,842

5,767,945

1,010,746

1,196,652

4,648,677

890

490

890

35,72963,624395,108

Gain on sale of fixed assets
Loss on sale or retirement of fixed
assetsGain on reversal of accrued
employees retirement benefits
Installment purchases of assets forsmall-value rentals
Reclassification of cost of sales
associated with disposal of
construction equipment
Reclassification of cost of sales
associated with disposal of rental
assetsExpenditures for acquisition ofrental assets
Valuation loss on investment
securities
Gain on sale of investment
securities
Loss on sale of investment
securities
Increase in allowance for doubtful
accounts
Increase in accrued bonuses to
employees
Decrease in accrued bonuses todirectors and auditors
Increase in accrued employees
retirement benefits
Increase in retirement allowances
to directors and auditors
Interest revenue and dividend
incomeInterest expense on installment
purchases of rental assets
Interest expense
Decrease in accounts receivable,
trade
Increase (decrease) in inventory
assetsIncrease (decrease) in accounts
payable, trade
Decrease in accounts payable, other-920,700-16,261-921,056

39,17917,30868,231－－-845,319

40,60841,25897,069

7,369

1,467

25,59788,401

61,463397,062-421,876-394,441-2,095,742

3,516

5,873

11,016-3,482－-287,528

－

1,317

－

46,44173,807

52,842

152,592

181,644

41,189-5,500－-5,50045,084

19,793

99,580

2,570

6,448

3,419

-14,228-26,887-96,497

9,931

24,19643,182

107,108

80,694

338,051

236,449

96,396

720,189

64,977

112,667-27,730

342,920602,257-1,126,702-261,773-91,640-76,564

Other-153,892-946,488-257,663

Subtotal

3,447,991

2,077,484

6,969,749

Interest and dividends received

14,22827,37890,470Interest expense
Payment of corporate and other
taxes
Cash flow from operating activities-109,204-101,587-377,448-1,334,782-1,431,135-2,202,835

2,018,231

572,1394,479,936

Amortization of goodwill

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.16

Prior FY Quarter

PeriodItem(Unit: Thousands of yen)
Current Quarter(Reference)(First Quarter of theConsolidated
Accounting Fiscal Year
Ended October 31,
2007)(First Quarter of theConsolidated
Accounting Fiscal YearEnding October 31,
2008)

Consolidated
Accounting Fiscal Year
Ended October 31,
2007

AmountAmountAmountII Cash flow from investing activities
Funds used for investment in term
deposits
Funds provided from redemption ofterm deposits
Funds used for the purchase of tangible
fixed assets
Funds provided from the sale of tangible
fixed assets
Funds used for the purchase ofintangible fixed assets
Funds used for the purchase ofinvestment securities
Funds provided from sale of investment
securities
Funds used for the purchase of
consolidated subsidiary stock
Funds used for the purchase ofnon-consolidated subsidiary stock
Funds used for establishment ofaffiliated company
Other
Cash flow from investing activities
III－-15,179

－

－

8,400

－

-1,223,118-504,428-2,059,416

1,845,395

128,035

1,875,374-2,964-7,250-64,781-47,191-8,240-123,716

109,288

18,042

527,674－－-367,450－-29,581-1,199,992－－-34,778－-10

20,077

681,410-410,213-1,427,009

37,295-67,177-167,704

3,050,000

3,640,000

9,550,000-2,790,779-2,679,594-10,967,546－-20,000－-547,496-640,351-2,047,202-2,273-687-13,481-295,732-361,311-591,414-548,985-129,122-4,237,348

Cash flow from financing activities
Increase (decrease) in short-term bankloans
Funds provided by long-term bankloans
Funds used to repay long-term bankloans
Funds used for redemption of bonds
Funds used for repayment of
installment obligations
Funds used for the purchase of treasury
stock
Payment of dividends to parent
company
Cash flow from financing activities
Ⅳ

Increase (decrease) in cash andequivalents

2,150,657

32,804-1,184,421

Ⅴ

Balance of cash and equivalents at
beginning of period

18,398,312

17,213,890

18,398,312

Ⅵ

Increase in cash and equivalents
resulting from newly consolidated
subsidiaries－

742,877－

Ⅶ

Balance of cash and equivalents at
end of the period

20,548,969

17,989,573

17,213,890

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.17

5. Business Segment Information[ Segment information by type of business ]Same quarter of the prior consolidated accounting fiscal year
(From November 1, 2006 to January 31, 2007)(Unit: Thousands of yen)
Construction
equipment
rentalbusiness

Steel sales
business

Information
products
businessand otherbusinesses

Revenues

17,413,478

1,334,930

107,605

Operatingexpenses

15,271,540

1,350,481

Operatingincome2,141,938-15,550

Eliminations
or entirecompany

Consolidated

18,856,014－

18,856,014

103,035

16,725,057-42,304

16,682,752

4,569

2,130,957

42,3042,173,262

Total

Current quarter (From November 1, 2007 to January 31, 2008)(Unit: Thousands of yen)
Construction
equipment
rentalbusiness

Steel sales
business

Information
products
businessand otherbusinesses

Revenues

17,076,798

1,154,943

143,629

Operatingexpenses

16,052,952

1,170,639

Operatingincome1,023,846-15,695

Eliminations
or entirecompany

Consolidated

18,375,372－

18,375,372

125,622

17,349,214

9,674

17,358,888

18,007

1,026,158-9,674

1,016,484

Total(Reference) Prior consolidated accounting fiscal year Ended October 31, 2007
(Unit: Thousands of yen)
Construction
equipment
rentalbusiness

Steel sales
business

Information
products
businessand otherbusinesses

Revenues

63,072,214

5,120,674

434,024

Operatingexpenses

59,017,423

5,130,682

Operatingincome4,054,791-10,008

Eliminations
or entirecompany

Consolidated

68,626,913－

68,626,913

402,403

64,550,509-160,130

64,390,378

31,621

4,076,403

160,130

4,236,534

Total

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.18

[ Segment information by location ]Current quarter and first quarter of the prior consolidated fiscal year
The Company had no material items to report because the Company did not have any consolidated
subsidiaries or important offices located in countries or regions outside of Japan.
[Foreign sales ]Same quarter of the prior consolidated accounting fiscal year(First Quarter of the Consolidated
Accounting Fiscal Year Ended October 31, 2007)
There are no pertinent items to report because the Company did not have any foreign sales.
Current quarter (First Quarter of the Consolidated Accounting Fiscal Year Ending October 31, 2008)
The Company has omitted a description of foreign sales because foreign sales are less than 10% ofconsolidated revenues.

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.19

6. (Summary) First Quarter Non-Consolidated Balance Sheets(Unit: Thousands of yen, %)PeriodItem

Prior FY Quarter Current Quarter(First Quarter of (First Quarter of
the Fiscal Yearthe Fiscal Year
Ended October 31, Ending October
2007)
31, 2008)(Reference)

Change fromprior year

Fiscal Year Ended
October 31, 2007

AmountAmountAmountPercent

Amount1．Cash and deposits

19,831,003

11,853,240-7,977,762-40.2%

11,115,248

2．Notes receivable, trade

2,569,242

2,243,398-325,843-12.7%

2,255,833

Accounts receivable,
trade

10,485,278

10,731,816

246,537

2.4%

10,825,811

4．Negotiable securities－

4,850,000

4,850,000－

5,300,000

5．Inventory

328,333

318,775-9,557-2.9%

295,013

6．Construction equipment

910,344731,037-179,306-19.7%

770,099

7．Deferred tax assets

325,896

289,448-36,448-11.2%

355,902

8．Other

541,238

1,097,029

555,790102.7%

408,597

Allowance for doubtful
accounts-456,590-447,059

9,531

-2.1%

-435,092

Total current assets

34,534,746

31,667,688-2,867,057-8.3%

30,891,414

Rental(1) equipment assets

9,655,732

9,704,614

48,881

0.5%

9,297,639(2) Buildings

5,411,561

5,404,276-7,284-0.1%

5,502,751(3) Structures

961,919

916,047-45,872-4.8%

952,093(4) Land

25,719,358

26,325,304

605,946

2.4%

25,996,422(5) Other

1,185,252

1,056,811-128,440-10.8%

1,005,580

42,933,823

43,407,054

473,230

1.1%

42,754,487

136,524

136,020

-503

-0.4%

148,235(1) Investment securities

6,749,299

3,938,998-2,810,300-41.6%

5,249,609

Stock of affiliated(2) companies

1,029,332

2,679,135

1,649,803

160.3%

2,649,554－

491,920

491,920－－

1,819,775

2,164,818

345,04219.0%

2,205,373

Allowancefor doubtful accounts-412,531-458,486-45,955

11.1%-430,758

Reserve forinvestment losses-565,171-565,171－－-565,171

Assets（I）

Current Assets

3．

II

Fixed assets

1. Tangible fixed assets

Total tangible
assetsfixed

2. Intangible fixed assets
Total intangible fixed
assetsInvestments and other3. assets(3) Deferred tax assets(4) OtherSummary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.20

Total investments
and other assets

8,620,705

8,251,215-369,489-4.3%

9,108,607

Total fixed assets

51,691,053

51,794,290

103,2370.2%

52,011,330

86,225,799

83,461,978-2,763,820-3.2%

82,902,745

Total Assets(Unit: Thousands of yen, %)Prior FY Quarter Current Quarter
Period (First Quarter of (First Quarter of
the Fiscal Year the Fiscal Year
Ended October Ending October
31, 2007)
31, 2008)

Item

AmountAmountAmountand accounts
1．Notespayable, trade

9,189,439

8,943,605

2．Accounts payable, trade

1,869,489

bank loans
3．Long-term
due within one year
4．Accounts payable, other(I

Liabilities(Reference)
Fiscal Year
Ended October
31, 2007

Change fromprior year

Percent

Amount-245,834-2.7%

7,660,014

1,844,492-24,996-1.3%

2,456,499

9,928,000

8,796,000-1,132,000-11.4%

8,818,000

2,196,243

2,114,981-81,261-3.7%

2,211,522

1,297,942

391,136-906,806-69.9%

1,406,425

606,793659,323

52,5308.7%

499,457

1,087,872

779,231-308,640-28.4%

706,663

26,175,780

23,528,770-2,647,010-10.1%

23,758,582

15,377,000

15,936,000

559,000

3.6%

14,926,000

2,554,534

2,745,298

190,7647.5%

2,353,188

210,031－-210,031-100.0%58,726

1,708,029

948,270-759,759-44.5%

928,956

90,261

92,383

2,122

2.4%

89,386

19,939,856

19,721,952-217,903-1.1%

18,356,256

46,115,637

43,250,722-2,864,914-6.2%

42,114,839)

Current liabilities

taxes
5．Corporate
payablebonuses to
6．Accrued
employees
7．Other
Total current liabilities
II

Long-term liabilities

1．Long-term bank loans
accrued2．Long-term
expenses
3．Deferred tax liability
employees
4．Accrued
retirement benefits
Retirement allowances
5．to directors andauditors
Total long-term
liabilities
Total Liabilities

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.21

(Unit: Thousands of yen, %)Current Quarter
Prior FY Quarter(First Quarter
Period (First Quarter ofof the Fiscal
the Fiscal Year
Year Ending
Ended October
October 31,
31, 2007)
2008)

Item

（

(Reference)
Accounting
Fiscal Year
Ended October
31, 2007

Change fromprior year

AmountAmount

9,696,717

9,696,717－－

9,696,717

Capital legal reserve

10,817,389

10,817,389－－

10,817,389

Other capital surplus

143,480

143,480－－

143,480

10,960,869

10,960,869－－

10,960,869

Earned legal reserve

1,375,287

1,375,287－－

1,375,287

Other earned surplus

15,242,232

16,981,296

1,739,063

11.4%

16,775,081

Reserve for advanced
depreciation of fixed
assets

19,601

19,601－－

19,601

General reserve

12,931,684

15,631,684

2,700,000

20.9%

12,931,684

Earned surplus brought
forward2,290,946

1,330,009-960,936-41.9%

3,823,794

Total earned surplus

16,617,519

18,356,583

1,739,063

10.5%

18,150,368-8,577-20,472-11,895

138.7%-19,784

37,266,529

38,993,697

1,727,168

4.6%

38,788,170

2,843,632

1,217,557-1,626,074-57.2%

1,999,735

Total Valuation andTranslation
Adjustments

2,843,632

1,217,557-1,626,074-57.2%

1,999,735

Total Net Assets

40,110,162

40,211,255

101,093

0.3%

40,787,905

Total Liabilities and Net
Assets

86,225,799

83,461,978-2,763,820-3.2%

82,902,745

Net Assets

AmountPercent

Amount）I Owners’ equity
1. Paid-in capital
2. Capital surplus

Total Capital Surplus
3．Earned surplus

4．Treasury stock
Total owners' equity
andII Valuationtranslation adjustments
Valuation difference onother investment
securities

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.22

2. (Summary) First Quarter Non-Consolidated Statements of Income(Unit: Thousands of yen, %)Period Prior FY Quarter Current Quarter

Item(First Quarter of (First Quarter of
the Fiscal Yearthe Fiscal Year
Ended October 31, Ending October
31, 2008)
2007)(Reference)

Change fromprior year

Fiscal Year Ended
October 31, 2007

AmountAmountAmountPercent

AmountI Revenues

16,881,362

15,643,079-1,238,282-7.3%

61,576,788

of revenues
II Costfrom operations

11,231,929

10,946,700-285,229-2.5%

44,713,746

Gross profit

5,649,433

4,696,379-953,053-16.9%

16,863,041

Selling, general and
III administrative
expenses

3,639,662

3,684,387

44,724

1.2%

12,850,084

Operating income

2,009,770

1,011,992-997,777-49.6%

4,012,957

IV

Non-operating
revenues

1.

Interest anddividends

15,91429,086

13,171

82.8%

102,533

2.

Gain on sale ofinvestment securities

3,482

－

-3,482-100.0%287,528

3. Rents received

59,49149,177-10,313-17.3%

195,809

4. Other

54,79426,307-28,486-52.0%

267,057

133,683

104,571-29,111-21.8%

852,930

1. Interest expense

99,85773,790-26,066-26.1%

312,601

2. Other

24,71349,74925,036101.3%

180,384

124,571

123,540-1,030-0.8%

492,985

2,018,882

993,023-1,025,858-50.8%

4,372,901

on sale of fixed
1. Gainassets920,700--920,700-100.0%920,700

2. Other

20,291

19,940

-351

-1.7%

875,828

940,992

19,940-921,051-97.9%

1,796,528

37,9452,799-35,145-92.6%

63,908

890

490

-400

-44.9%

890

3,516

5,873

2,357

67.0%

11,016

－

－

－

－

8,311

Total non-operating
revenues
VNon-operating
expenses

Total non-operating
expenses
Ordinary income
VI Extraordinary profits

Total extraordinary
profits
VII Extraordinary losses
Loss on sale or
1. retirement of fixed
assets
2. Impairment loss
loss on
3. Valuation
investment securities
Transfer tofor
4. allowance
doubtful loans toaffiliates

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.23

5. Other

19,508

19,168

-340

-1.7%

31,500Total extraordinary
losses61,86028,332-33,528-54.2%

115,626

Income before taxes
and adjustments

2,898,013

984,632-1,913,381-66.0%

6,053,803

1,267,202

371,096-896,105-70.7%

2,203,734

28,32546,008

17,68262.4%

419,052

1,602,485

567,526-1,034,958-64.6%

3,431,016

Corporate, local andbusiness taxes
Adjustment forcorporate and othertaxes
Net income

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.24

3. (Summary) First Quarter Non-Consolidated Statement of Changes in Net
AssetsFirst quarter of the prior fiscal year(November 1, 2006 - January 31, 2007)(Thousands of yen)
Owners’ Equity
Capital surplus

Other earned surplus

Paid-in
capitalBalance at the end of the priorfiscal year (October 31, 2006)

Earned surplus

9,696,717

Capital legal
reserve

Other
capitalsurplusTotal
capitalsurplus10,817,389

143,480

10,960,869

Earned legal
reserve

Reserveforadvanceddepreciati
on of fixed
assets1,375,287

19,601

Generalreserve

Net earned
surplusbrought
forward

Total earned
surplus11,831,684

2,084,192

15,310,766

1,100,000-1,100,000―

Change of items during thefirst quarter under review
Transfer to general reserve―

Dividends from surplus―-295,732-295,732

First quarter net income―

1,602,485

1,602,485

Purchase of treasury stock――

Net change of items otherthan owners' equity during
the first quarter underreview
Total change of items during
the first quarter under review
Balance at the end of thefirst quarter under review(January 31, 2007)

―

―

―

―

―

―

1,100,000

206,753

1,306,753

9,696,717

10,817,389

143,480

10,960,869

1,375,287

19,601

12,931,684

2,290,946

16,617,519

Owners’ Equity
Treasury stock
Balance at the end of the priorfiscal year (October 31, 2006)-6,303

Valuation and translation adjustments

Total Owners’ Equity

35,962,049

Valuation difference onother investment
securities

Total valuation andtranslation adjustments

2,414,062

2,414,062

Total Net Assets

38,376,112

Change of items during the firstquarter under review
Transfer to general reserve――

Dividends from surplus-295,732-295,732

First quarter net income

1,602,485

1,602,485-2,273-2,273Purchase of treasury stock-2,273

Net change of items otherthan owners' equity during
the first quarter underreview

429,570429,570429,570

Total change of items during thefirst quarter under review-2,273

1,304,479

429,570429,570

1,734,050

Balance at the end of the firstquarter under review(January 31, 2007)-8,57737,266,529

2,843,632

2,843,632

40,110,162

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.25

First quarter of the current fiscal year(November 1, 2007 - January 31, 2008)(Thousands of yen)
Owners’ Equity
Capital surplus

Other earned surplus

Paid-in
capitalBalance at the end of the priorfiscal year (October 31, 2007)

Earned surplus

9,696,717

Capital legal
reserve

Other
capitalsurplusTotal
capitalsurplus10,817,389

143,480

10,960,869

Earned legal
reserve

Reserveforadvanceddepreciati
on of fixed
assets1,375,287

19,601

Generalreserve

Net earned
surplusbrought
forward

Total earned
surplus12,931,684

3,823,794

18,150,368

2,700,000-2,700,000―

Change of items during thefirst quarter under review
Transfer to general reserve―

Dividends from surplus―-361,311-361,311

First quarter net income―

567,526

567,526

Purchase of treasury stock――

Net change of items otherthan owners' equity during
the first quarter underreview
Total change of items during
the first quarter under review
Balance at the end of thefirst quarter under review(January 31, 2008)

―

―

―

―

―

―

2,700,000-2,493,785

206,214

9,696,717

10,817,389

143,480

10,960,869

1,375,287

19,601

15,631,684

1,330,009

18,356,583

Owners’ Equity
Treasury stock
Balance at the end of the priorfiscal year (October 31, 2007)-19,784

Valuation and translation adjustments

Total Owners’ Equity

38,788,170

Valuation difference onother investment
securities

Total valuation andtranslation adjustments

1,999,735

1,999,735

Total Net Assets

40,787,905

Change of items during the firstquarter under review
Transfer to general reserve――

Dividends from surplus-361,311-361,311

First quarter net income

567,526

567,526

-687

-687

Purchase of treasury stock-687

Net change of items otherthan owners' equity during
the first quarter underreview
Total change of items during thefirst quarter under review
Balance at the end of the firstquarter under review(January 31, 2008)-782,177-782,177-782,177-687

205,527-782,177-782,177-576,650-20,472

38,993,697

1,217,557

1,217,557

40,211,255

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.26

(Reference) Prior Fiscal Year (From November 1, 2006 to October 31, 2007)(Thousands of yen)

Owners’ equity
Capital surplus

Earned surplus
Other earned surplus

Paid-in
capitalBalance at the end of the priorfiscal year (October 31, 2006)

Capitallegal
reserve

9,696,717 10,817,389

Othercapitalsurplus

Total capitalsurplus143,480

10,960,869 1,375,287

Reserve foradvanceddepreciatio
n of fixed
assetsLegalearnedsurplusGeneralreserve

19,601 11,831,684

Net earned
surplusbrought
forwardTotal
earnedsurplus2,084,192 15,310,766

Treasury
stock

Total
Owners’Equity- 6,303 35,962,049

Changes of items during the
fiscal year
Transfer to general reserve－

Dividends from surplus

1,100,000-1,100,000

－

－

－

-591,414-591,414-591,414

Net income－

3,431,016

3,431,016

3,431,016

Purchase of treasury stock－－-13,481-13,4812,839,602-13,4812,826,120

Net changes of items otherthan owners’ equity during the
fiscal year
Total changes of items during
the fiscal year
Balance at the end of fiscal year
under review

－

－

－

9,696,717 10,817,389

143,480－

10,960,869 1,375,287

Valuation and translation
adjustments
Valuation difference
Total valuation andon other investment
translation
securities
adjustments
Balance at the end of the priorfiscal year (October 31, 2006)

2,414,062－－

1,100,000

19,601 12,931,684

1,739,602

3,823,794 18,150,368-19,784 38,788,170

Total net assets

2,414,062

38,376,112

Changes of items during the
fiscal year
Transfer to general reserve－

Dividends from surplus-591,414

Net income

3,431,016

Purchase of treasury stock
Net changes of items otherthan owners’ equity during the
fiscal year

-13,481-414,327-414,327-414,327

Total changes of items during
the fiscal year

-414,327-414,327

2,411,793

Balance at the end of fiscal year
under review

1,999,735

1,999,735

40,787,905

Summary of First Quarter Operating Results (Consolidated)
Fiscal Year Ending October 31, 2008
P.27