Notification Concerning Conclusion of a Capital and Business
Alliance Agreement with Nishiken Co., Ltd. andConversion of Nishiken to a Kanamoto Subsidiary
2016/1/21 in Japan | Page 1/3

Thursday, January 21, 2016

For Immediate Release
Kanamoto Company, Limited
Stock Code 9678
Tokyo Stock Exchange 1st Section; Sapporo Stock Exchange
Kanchu Kanamoto
President and CEO< Contact for inquiries concerning this material >Yuichi Takayama
Manager, Investor and Public Relations, Office of the President
Telephone: + 81–11–209–1631

Notification Concerning Conclusion of a Capital and Business AllianceAgreement with Nishiken Co., Ltd. and Conversion of Nishiken to aKanamoto Subsidiary
Based on a resolution of its Board of Directors today, Kanamoto Co., Ltd. has entered into a Capital andBusiness Alliance Agreement with Nishiken Co., Ltd. (Kouichirou Kuriyama, President; Head Office:
Kurume City, Fukuoka Prefecture), under which Kanamoto will acquire at least two-thirds of Nishiken’s
shares and Nishiken will become a subsidiary of Kanamoto. Details are provided below.

1． Purpose and reason for the business alliance and stock acquisition (conversion to subsidiary)
Nishiken Co., Ltd. is developing a construction equipment rental business and a welfare and nursing
care products rental business in each prefecture of Kyushu centered on Fukuoka Prefecture, and in theChugoku and Kinki regions. Kanamoto, an integrated construction equipment rental company, has
resolved to acquire shares of Nishiken and manage the company as a subsidiary because this action isexpected to “strengthen Kanamoto’s business base in the Kyushu Region” and “expand the Company’sbusiness area into the welfare and nursing care products rental business”, two objectives Kanamoto had
previously outlined in its new Long-term Vision “BULL55”.

2． Details of the business alliance
Through the business alliance between Nishiken Co., Ltd., the top rental firm in Kyushu headquarteredin Kurume City, Fukuoka Prefecture, and Kanamoto, which is developing its construction equipment
rental business in regions throughout Japan, Kanamoto anticipates a substantial spillover effect,
including supplementation of the two companies’ businesses to take advantage of each company’s
unique characteristics and the streamlining of operations through the complementary supply of rentalequipment.
In the future the two firms will pursue synergistic effects based on their collaboration, and work tostrengthen their base of operations in regions where both companies have operations.

Notification Concerning Conclusion of a Capital and Business
Alliance Agreement with Nishiken Co., Ltd. andConversion of Nishiken to a Kanamoto Subsidiary
2016/1/21 in Japan | Page 2/3

3． Summary of business alliance partner and transfer of subsidiary(1) Name
Nishiken Co., Ltd.
(2) Head office
1-9, Miyanojin-machi, Wakamatsu, Kurume City, Fukuoka Prefecture
Chairman and Representative Director Akeyoshi Mizuta(3) Representative
President Kouichirou Kuriyama
Construction equipment rental business, welfare and nursing care(4) Businesses
products rental business, other business(5) Employees
322 As of December 31, 2014
(6) Number of offices
75(7) Capital
1,049 million yen(8) Date established
November 15, 1960
(9) Principal shareholders Employees Shareholding Co., Ltd.
6.4%
and percent ownership Akeyoshi Mizuta
6.0%
The Nishi-Nippon City Bank, Ltd.
4.7%
The Bank of Fukuoka, Ltd.
4.3%
CapitalThere are no capital relationships between Kanamoto(10) Relationship between
relationshipand Nishiken Co., Ltd. that should be reported. Unite
listed company andCo., Ltd., a consolidated subsidiary of Kanamoto,said company
owns 0.2% of the shares of Nishiken Co., Ltd.
Personnel
There are no personnel relationships between
relationship
Kanamoto and Nishiken Co., Ltd. that should bereported. Moreover, there are no personnel
relationships between concerned parties and affiliatedcompanies of Kanamoto and concerned parties andaffiliated companies of Nishiken Co., Ltd. that deserve
special mention.
There are no business relationships betweenBusiness
Kanamoto and Nishiken Co., Ltd. that should berelationshipreported. Moreover, there are no business
relationships between concerned parties and affiliatedcompanies of Kanamoto and concerned parties andaffiliated companies of Nishiken Co., Ltd. that deserve
special mention.
(11) Operating results and financial position of Nishiken Co., Ltd. for the most recent three years
Unit: Millions of yen

Accounting period
Net assets
Total assets
Net assets per share (yen)Net sales
Ordinary income
Net income
Net income per share (yen)Dividend per share (yen)FYE Dec. 2012
6,836
15,127
15,046.07
16,251
1,337643
1,428.86
180

FYE Dec. 2013
7,375
16,106
16,248.87
16,715
1,367603
1,340.61
180

FYE Dec. 2014
7,977
17,333
17,527.08
16,857
1,416653
1,449.84
200

Notification Concerning Conclusion of a Capital and Business
Alliance Agreement with Nishiken Co., Ltd. andConversion of Nishiken to a Kanamoto Subsidiary
2016/1/21 in Japan | Page 3/3

4． Summary of parties from which shares will be acquired
Shareholders among the 238 shareholders of Nishiken Co., Ltd. (as of August 1, 2015) who haveagreed to sell their shares.
5． Number of shares to be acquired, acquisition price, and number of shares owned before and afteracquisition
Number of shares
0 (Ownership percentage 0%)（１）
owned before transfer
Number of shares to be
At least 309,450 shares（２）acquired（３）

Acquisition price

Undetermined

Number of shares
At least 309,450 shares
owned after transfer(Voting rights percentage At least 66.9%)
Note: The acquisition price cannot be computed because the number of shares to be acquired isundetermined.
（４）

6． Schedule of business alliance and stock acquisition (conversion to subsidiary) (plan)
January 21, 2016
Kanamoto Co., Ltd. Board of Directors resolution
January 21, 2016
Capital and business alliance agreement concluded
March 14, 2016 (plan)
Share delivery date
Late March, 2016 (plan)
Date for start of business in conjunction with business alliance

7． Future outlook for Kanamoto’s operating results
Kanamoto currently is conducting a precise examination of the effect this transaction will have on its
financial position and operating results in the current period and the next consolidated fiscal year, andwill disclose this information as appropriate as soon as it has completed its precise examination.
End