Fiscal Year ended October 31, 2012

Financial Statements Bulletin (Japan GAAP)

December 7, 2012
Kanamoto Co., Ltd.
9678
Tokyo Stock Exchange, Sapporo Stock Exchange
http://www.kanamoto.co.jp
Kanchu Kanamoto
President and CEO
Nobuhito Utatsu
Division Manager, Accounting Division Senior Corporate Officer
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 29, 2013
Scheduled date for commencement of dividend payments:
January 30, 2013
Scheduled date for submission of Annual Securities Report :January 29, 2013
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

1. Consolidated Operating Results for the Fiscal Year ended October 31, 2012
(Nov. 1, 2011 – Oct. 31, 2012)(Numbers less than one million yen have been rounded down)(Percentages show the change from the prior year)(1) Consolidated Operating Results
Revenues
Fiscal year ended
October 31, 2012
Fiscal year ended
October 31, 2011

Operating Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

86,106

21.1

6,430

121.3

5,932

164.9

3,575

206.7

71,086

1.3

2,905

9.7

2,239

7.5

1,165

11.9

(Note) Comprehensive income (millions of yen)
Fiscal year ended October 31, 2012
Fiscal year ended October 31, 2011

Fiscal year ended
October 31, 2012
Fiscal year ended
October 31, 2011

Ordinary Income¥3,551 (207.0%)¥1,156(33.3%)Net Income per
Share of Common
Stock
Yen

Net Income per
Share on a Fully
Diluted Basis
Yen

108.8835.51

Ordinary Income
to Total Assets

ROE

Operatingmargin

%

%

%

－

9.3

4.7

7.5

－

3.2

2.0

4.1

(Reference) Investment profit or loss accounted for by the equity method (millions of yen)
Fiscal year ended October 31, 2012－
Fiscal year ended October 31, 2011－

(2) Consolidated Financial Position

Millions of yen

Millions of yen%

Shareholders’ Equity
per ShareYen

137,343

41,39929.2

1,221.56

115,120

37,59232.2

1,129.47

Total Assets
Fiscal year ended
October 31, 2012
Fiscal year ended
October 31, 2011

Shareholders’Equity Ratio

Net Assets(Reference) Shareholders’ equity (millions of yen):
Fiscal year ended October 31, 2012

¥40,106

Fiscal year ended October 31, 2011

¥37,085

Financial Statements Bulletin, FY Ended October 31, 2012
P. 1

(3) Consolidated Cash Flows

Millions of yen

Millions of yen

Millions of yen

Balance of Cash andEquivalents at End of
PeriodMillions of yen

14,306‐835‐14,074

19,717

6,903‐1,013‐6,262

20,374

Dividends per Share
End of
End of
End ofYearthird
secondfirst
endquarter quarter quarter
Yen
Yen
Yen
Yen

Fullyear

Cash Flow fromOperating Activities
Fiscal year ended
October 31, 2012
Fiscal year ended
October 31, 2011

Cash Flow from
Investing Activities

Cash Flow from
Financing Activities

2. Dividends

Fiscal year ended
October 31, 2011
Fiscal year ended
October 31, 2012
Fiscal year ending
October 31, 2013
(projected)

Dividends intotal(full year)

Dividend
payout ratio(consolidated)

Dividends on
net assets(consolidated)

Yen

Millions of yen

%

%

－

10.00

－

10.00

20.00

656

56.3

1.8

－

10.00

－

10.00

20.00

656

18.4

1.7

－

10.00

－

10.00

20.00

20.6

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2013
(November 1, 2012 - October 31, 2013)(Percentages show the change from the prior year)
Net Income per
Revenues

Operating Income

Ordinary Income

Net Income

Share ofCommon StockMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Interim period

51,240

28.1

4,580

28.9

4,110

24.6

1,970

10.9

60.00

Full year

99,150

15.1

7,120

10.7

6,510

9.7

3,190 ‐10.8

97.16

Financial Statements Bulletin, FY Ended October 31, 2012
P. 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): Yes
Company newly included (Company name: Unite Co., Ltd.
)
Company newly excluded (Company name:)(2) Changes in accounting principles, changes in accounting estimates and retrospective restatements(a) Changes in accounting policy in conjunction with revision of accounting standards?: None(b) Changes other than the above?: None(c) Changes in accounting estimates: None(d) Retrospective restatements: none(3) Number of shares issued (common stock)(a) Number of shares outstanding at the end of the period (including treasury stock)
Fiscal year ended October 31, 2012
32,872,241 sharesFiscal year ended October 31, 2011
32,872,241 shares(b) Number of shares of treasury stock at end of period
Fiscal year ended October 31, 2012
39,955 sharesFiscal year ended October 31, 2011
37,712 shares(c) Average number of shares outstanding during the period
Fiscal year ended October 31, 2012
32,833,928 sharesFiscal year ended October 31, 2011
32,834,328 shares

Financial Statements Bulletin, FY Ended October 31, 2012
P. 3

(Reference) Summary of Company Operating Results
1. Operating Results for the Fiscal year Ended October 31, 2012
(November 1, 2011–October 31, 2012)(Numbers less than one million yen have been rounded down)(1) Operating Results
Revenues

Operating Income

Millions of yen
Fiscal year ended
October 31, 2012
Fiscal year ended
October 31, 2011

Ordinary Income% Millions of yen% Millions of yen

Net Income% Millions of yen%

69,091

13.4

5,675

101.3

4,825

85.7

2,563

78.8

60,906

4.9

2,819

11.1

2,598

9.6

1,433

38.8

Net Income per Share Net Income per Shareof Common Stockon a Fully Diluted Basis
Fiscal year ended
October 31, 2012
Fiscal year ended
October 31, 2011

Yen

Yen

78.07

－

43.65

－

(2) Financial Position

Millions of yen

Millions of yen%

Shareholders’ Equity
per Share
Yen

112,372

39,95235.6

1,216.87

104,579

37,91136.3

1,154.63

Total Assets
Fiscal year ended
October 31, 2012
Fiscal year ended
October 31, 2011

Shareholders’Equity Ratio

Net Assets(Reference) Owners’ equity (millions of yen):
Fiscal year ended October 31, 2012

¥39,952

Fiscal year ended October 31, 2011¥37,911

2. Projected Operating Results for the Fiscal Year Ending October 31, 2013
(November 1, 2012 - October 31, 2013)(Percentages show the change from prior year)
Revenues

Ordinary Income

Net Income per Shareof Common StockNet Income

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Interim period

35,480

4.1

2,880

-1.5

1,610

-5.0

49.03

Full year

70,590

2.2

5,270

9.2

2,740

6.9

83.45

Note: Disclosure concerning implementation of audit proceduresThis financial report is exempt from audit procedures based on the Financial Instruments andExchange Act. At the time of disclosure of this financial report, the Company is in the process of
implementing the audit procedures for its consolidated financial statements.
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.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 4

○Attachments Table of Contents
1. Analysis of Operating Results and Financial Position ……………………………………………………………………
(1) Analysis of Operating Results ……………………………………………………………………………………………
(2) Analysis of Financial Position ……………………………………………………………………………………………
(3) Basic Policy Concerning Distribution of Earnings and Dividends for the Consolidated Fiscal
Year under Review and Next Consolidated Fiscal Year ……………………………………………………………
(4) Business and Other Risks ……………………………………………………………………………………………………
2. Current Conditions of the Company’s Group …………………………………………………………………………………
3. Management Policies …………………………………………………………………………………………………………………
(1) Basic Management Policies ……………………………………………………………………………………………
(2) Management Indicators Established as Objectives ……………………………………………………………………
(3) Medium to Long-term Corporate Management Strategy …………………………………………………………
(4) Issues to be addressed by the Company …………………………………………………………………………………
(5) Other Important Company Management Issues ……………………………………………………………………
4. Consolidated Financial Statements ………………………………………………………………………………………………
(1) Consolidated Balance Sheets ……………………………………………………………………………………………………
(2) Consolidated Statements of Income andConsolidated Statements of Comprehensive Income ……………………………………………………………
Consolidated Statements of Income ………………………………………………………………………………………
Consolidated Statements of Comprehensive Income ……………………………………………………………
(3) Consolidated Statements of Changes in Net Assets ………………………………………………………………
(4) Consolidated Statements of Cash Flows) …………………………………………………………………………………
(5) Notes Relating to the Going Concern Assumption ……………………………………………………………………
(6) Basis of Preparation of the Consolidated Financial Statements ………………………………………………
(7) Changes in Reporting Method ……………………………………………………………………………………………………
(8) Supplemental Information …………………………………………………………………………………………………………
(9) Notes to the Consolidated Financial Statements ………………………………………………………………………
(Notes to the Consolidated Balance Sheets) ……………………………………………………………………………
(Notes to the Consolidated Statements of Income) …………………………………………………………………
(Notes to the Consolidated Statements of Comprehensive Income) ………………………………………
(Notes to the Consolidated Statements of Changes in Net Assets) …………………………………………
(Notes to the Consolidated Statements of Cash Flows) …………………………………………………………
(Business Segment Information) ………………………………………………………………………………………………
(Notes to Leasing Transactions) ………………………………………………………………………………………………
(Notes to Business Combinations Etc.) ……………………………………………………………………………………
(Per Share Information) …………………………………………………………………………………………………
(Material Events after the Close of the Consolidated Fiscal Year) …………………………………………
5. Company Financial Statements ……………………………………………………………………………………………………
(1) Balance Sheets …………………………………………………………………………………………………………
(2) Statements of Income …………………………………………………………………………………………………………
(3) Statements of Changes in Net Assets ………………………………………………………………………………………
6. Other ……………………………………………………………………………………………………………………
Changes of Directors ………………………………………………………………………………………………………………

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Financial Statements Bulletin, FY Ended October 31, 2012
P. 5

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Resultsa) Summary of consolidated fiscal year operating results (from November 2011 to October 2012)
During the consolidated fiscal year under review, Japan’s economy was affected by forces thatworked against one another. Early in the fiscal year, corporate operating performance exhibited arecovery trend supported by the restructuring of supply chains that had been disrupted by the Great
East Japan Earthquake and by anticipation of restoration and reconstruction demand. The economy
faced downward pressures, however, because of global economic uncertainties, ranging from Europe’s
prolonged debt crisis and financial difficulties in the United States to China’s economic slowdown. These
factors had a negative effect on corporate earnings as well. Personal consumption in general also
remained sluggish, despite a flurry of existing home sales in certain metropolitan areas because of the
anticipated hike in the consumption tax. Overall, the economic situation retained its subdued patina.
In the construction equipment rental business that is the main business of the Kanamoto Group, amild recovery in private sector capital investment was evident as noted above. This investment lost
momentum as the months passed, however. Although the volume of works continued its upwardcourse because of restoration works in some of the devastated regions, even with government demandsignificant progress on restoration-related projects was not seen because of recovery policy delays. In
regions that were not seriously affected by the earthquake and tsunami, on the other hand, somedisaster prevention and disaster mitigation works were initiated, but the volume of this effort remained
at a low level.
The Kanamoto Group responded to Japan’s unprecedented calamity by positioning restoration andrecovery from the Great East Japan Earthquake as the most important policy for every company in thegroup. At the same time, the Company strove to expand market share in unaffected regions, whileworking to improve profit margins through timely shifts of rental equipment and the efficient utilizationof management resources. In light of the transportation conditions in the hardest-hit areas, Kanamoto
established new branches and shifted its construction equipment emphasis to the equipment most in
demand, and created an organization that is capable of responding without interruption to full-scale
restoration works.
Revenues were up sharply in all regions because of several factors. The addition of Unite Co., Ltd.
and its strengths in the road-related business in particular to the group during the fiscal year underreview brought an expansion of operations, together with a concomitant significant improvement in
Kanamoto’s solutions function as a group. Furthermore, an encouraging trend was seen nationwide inrental unit prices that resulted from small but positive improvements in the balance of construction
equipment demand-and-supply.
With regard to profits, the Company achieved earnings well above the level of the prior consolidated
fiscal year. Several factors resulted in lower margins, including a higher burden of depreciation expense
for construction equipment, and lower profits from equipment sales as a result of used construction
equipment sales being postponed, because of the top priority placed on supporting earthquake
restoration and recovery works. Nevertheless, rental revenues were strong in all regions, and asset
utilization ratios improved because of the strengthening in some rental unit prices and steps taken to
optimize asset utilization.
As a result of these factors, rental revenues greatly exceeded the Company’s initial plan, andconsolidated revenues for the fiscal year ended October 2012 rose 21.1% from the prior consolidated
fiscal year level to ¥86,106 million. From an earnings perspective as well, operating income increased
121.3% from the prior consolidated fiscal year to ¥6,430 million and ordinary income jumped 164.9%
year-on-year to ¥5,932 million. Net income rose 206.7% over the prior consolidated fiscal year to¥3,575 million.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 6

[Operating Results for the Fiscal Year ended October 31, 2012](Million yen; % change from prior year)
Revenues
Year underConsolidated

reviewPrior year
Year underCompany

reviewPrior year

Operating income

Ordinary income

Net income

86,106

21.1

6,430

121.3

5,932

164.9

3,575

206.7

71,086

1.3

2,905

9.7

2,239

7.5

1,165

11.9

69,091

13.4

5,675

101.3

4,825

85.7

2,563

78.8

60,906

4.9

2,819

11.1

2,598

9.6

1,433

38.8

A summary of operating results for each of the Company’s business segments is provided below.
b) Summary of consolidated operating results by business segment[Business related to the Construction Equipment Rental Division]
In the construction-related businesses of the entire Kanamoto Group, revenues and earnings wereboth higher. For the consolidated fiscal year under review, consolidated revenues increased 22.5%
from the prior consolidated fiscal year to ¥79,280 million, and operating income rose 136.6% yearon-year to ¥6,117 million.
By region in Japan, the Kanamoto Group’s presence in areas where branch development
previously was limited rose substantially with the addition of Unite Co., Ltd. to the Group’s
consolidated operations. In the Hokkaido Region, rental revenues rose 7.3% compared with theprior consolidated fiscal year. This reflected the receipt of firm orders for Shinkansen extension
works, high-standard highway extension works, and large-scale projects centered on harbor-related
works and tunnel works, as well as a smaller but still substantial number of orders for private sector
works. The Tohoku Region saw significant growth, with rental revenues climbing 42.8% year-onyear on the strength of debris removal and incineration plant construction-related works and agreater number of coastal and harbor-related restoration and recovery works, including along rivers,in the earthquake-stricken coastal areas, and decontamination-related works in Fukushima. In the
Kanto Region, large-scale road works as well as earthquake restoration projects in the form ofground improvement and foundation works remained steady, and together with urban disasterprevention and disaster mitigation works and the recovery in private sector construction investment,
helped boost revenues by 29.3% from the prior consolidated fiscal year level. In the Kinki & Chubu
Region, disaster prevention and mitigation works contributed to a 17.7% expansion in revenues,
while revenues in the Kyushu & Okinawa Region were up 23.1% because of growth in the same
category of demand.
Revenue from the sale of used construction equipment contracted 24.8% from the level in theprior consolidated fiscal year, as the Company continued to restrict sales of used construction
equipment to a specific volume to ensure availability of equipment for earthquake restoration andrecovery works.
The Kanamoto Group’s overseas operations continued to have only a limited impact on operating
results. Shanghai Jinheyuan Engineering Construction Co., Ltd., which is developing a construction
equipment rental business in China, saw construction demand in the coastal regions significantly
affected by China’s economic deceleration. The company was nevertheless able to achieve operating
results that were nearly unchanged from the prior fiscal year level by concentrating on businessdevelopment further inland, in regions where there is infrastructure works demand. In Hong Kong,
revenues expanded briskly because of robust demand from large-scale projects. In Territory ofGuam, United States, where SJ Rental, Inc. had been anticipating construction demand related to
the reassignment of US forces in Japan, the re-basing plans have been deadlocked, and Kanamoto

Financial Statements Bulletin, FY Ended October 31, 2012
P. 7

decided to dissolve and liquidate this subsidiary because the rental demand initially envisaged could
no longer be expected.
[Other businesses]
In the steel products sales the Company is developing in Hokkaido, sales of temporary housingmaterials and general steel materials remained steady, and revenues were up 7.6% compared withthe prior consolidated fiscal year. In Kanamoto’s information and telecommunications-related
business, revenues edged up 3.8% year-on-year, boosted by orders for large projects, the renewalof personal computer rental periods and additional workstation rental demand that was developed
through strenuous sales efforts, as well as steady demand in the Company’s specified worker
dispatching business.
As a result of the above factors, for the consolidated fiscal year under review revenues for theCompany's other businesses increased 7.1% from the prior consolidated fiscal year to ¥6,826
million, while operating income was basically unchanged, up just 0.4% year-on-year to ¥143 million.
< Change in number of branches >During the consolidated fiscal year under review, Kanamoto newly opened 8 branches and closed
5 branches.
New branches:
Temporary Scaffolding Division, Temporary Scaffolding Sapporo Materials Center,
Temporary Scaffolding Asahikawa Materials Center, Temporary Scaffolding
Tomakomai Materials Center, Miyako Branch, Kameishi Branch, Maebashi Branch,
Hiroshima South Branch
Closed branches: Shimukappu Equipment Center, Isawa Equipment Center, Kamisato Branch,
Iwaki Chuo Branch, Higashidori Branch(2) Analysis of Financial Positiona) Financial position
Total assets at the end of the consolidated fiscal year under review increased by ¥22,222 million
compared with the end of the prior consolidated fiscal year to ¥137,343 million. The main factors werean increase of ¥13,985 million as a result of newly including Unite Co., Ltd. within the scope of
consolidation, and an increase of ¥7,625 million in rental equipment, excluding Unite Co., Ltd.
Total liabilities were ¥95,943 million, an increase of ¥18,415 million compared with the end of theprior consolidated fiscal year. This change was mainly the result of an increase of ¥11,304 million as aresult of newly including Unite Co., Ltd. within the scope of consolidation yen, and an increase of¥5,166 million in long-term accrued expenses, excluding Unite Co., Ltd., which reflected the Company’sequipment procurement method in conjunction with the increase in rental equipment.
Total Net Assets were ¥41,399 million, ¥387 million higher than at the end of the prior consolidated
fiscal year. This mainly reflected an increase of ¥827 million in minority interests related to Unite Co.,
Ltd. as a result of that company being newly included within the scope of consolidation, net income of¥3,575 million and a decrease in earned surplus as the result of dividend payments.
b) Cash flows(Unit: Millions of yen)
FY Ended October 2011
(Prior consolidated fiscal
year)

FY Ended October 2012
(Consolidated fiscal year
under review)

Change from prior year

Cash flow from operating activities

6,903

14,306

7,402

Cash flow from investing activities–1,013–835

177

Cash flow from financing activities–6,262–14,074–7,812

Decrease in cash and equivalents

–376

–625

–248

20,751

20,374–376

20,374

19,717–657

Balance of cash and equivalents at
beginning of period
Balance of cash and equivalents at

Financial Statements Bulletin, FY Ended October 31, 2012
P. 8

end of the period

The balance of cash and cash equivalents (“cash”) on a consolidated basis at the end of theconsolidated fiscal year under review decreased ¥657 million from the prior consolidated fiscal year, to¥19,717 million. Cash flows for the consolidated fiscal year under review are discussed below.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 9

(Cash flow from operating activities)
Cash generated as a result of operating activities was ¥14,306 million, an increase of 107.2%
from the prior consolidated fiscal year.
This mainly reflected depreciation and amortization expense of ¥11,071 million and income before
taxes and adjustments of ¥6,179 million, expenditures for acquisition of rental assets of ¥1,916
million, interest expense of ¥1,065 million and expenditures for acquisition of construction
equipment of ¥1,238 million.
(Cash flow from investing activities)
Cash flow used in investing activities was ¥835 million, compared with ¥1,013 million in the priorconsolidated fiscal year.
The main factors were funds used for the purchase of tangible fixed assets of ¥451 million, funds
used for the purchase of investments in subsidiaries resulting in change in scope of consolidation of¥662 million, funds provided from sale of investment securities of ¥174 million and funds provided
from the sale of tangible fixed assets of ¥121 million.
(Cash flow from financing activities)
Cash flow used in financing activities was ¥14,074 million, compared with cash flow used infinancing activities in the prior consolidated fiscal year of ¥6,262 million.
The main factors behind this change were a decrease in short-term bank loans of ¥2,340 million,
funds used for repayment of installment obligations of ¥8,423 million and funds used for repaymentof lease obligations of ¥1,253 million.
The cash flow indicator trends for the Kanamoto Group are provided below.
FY Ended
FY Ended
FY Ended
FY Ended
October 2009 October 2010 October 2011 October 2012
Shareholders’ equity ratio (%)

37.5

33.7

32.2

29.2

Shareholders’ equity ratio on a market
capitalization basis (%)

13.2

12.6

15.1

23.3

Years to repay debt

20.2

5.7

8.5

4.9

Interest coverage ratio (times)

3.3

10.4

7.4

13.4

(Notes) Shareholders’ equity ratio:
Shareholders’ equity / Total assets
Shareholders’ equity ratio on
a market capitalization basis: Shareholders’ equity on a market capital basis / Total assets
Years to repay debt:
Interest-bearing liabilities / Cash flow from operating activities
Interest coverage ratio:
Cash flow 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 theterm by the number of shares outstanding (after deducting treasury stock) at the end of theterm.
* Cash flow from operating activities shown on the Consolidated Statements of Cash Flows isused as operating cash flow. Interest-bearing liabilities include all liabilities on which theCompany pays interest that are accounted for on the Consolidated Balance Sheets. The
amounts shown as interest expense on the Consolidated Statements of Cash Flows are used asinterest payments.
Outlook for the next fiscal year (Business Period ending October 2013)
During Kanamoto’s next consolidated fiscal year, the global economic slowdown is expected tocontinue, while in the financial market the strong yen and weak share price trends are not projected
to change. These circumstances are forecast to have a significant adverse effect on corporate
operating results. Personal consumption will also struggle to grow. When concerns such as possible
Financial Statements Bulletin, FY Ended October 31, 2012P. 10

electric power shortages, TPP issues and the timing of a consumption tax increase as well are taken
into account, the economy is projected to remain in a situation in which the future outlook is clouded
and there is little sign of any fundamental improvement in the business environment.
In the construction industry that is the main customer for the Kanamoto Group, spending other thanearthquake-related investment is forecast to remain slack throughout Japan as a whole, despite somepockets of demand such as individual home purchases, which will be spurred by the anticipatedconsumption tax hike. Public works, on the other hand, will greatly boost construction equipment
rental demand in the devastated regions as earthquake-related restoration works are undertaken on afull-scale. In regions other than those where earthquake recovery demand is anticipated, however, theconstruction equipment rental industry is likely to continue facing a tough management environment
because of the intense competition among the main firms in each region.
The Kanamoto Group has declared its most important policy to be ongoing support for earthquake
disaster recovery with the full capabilities of every group firm. Together with ensuring earnings andaccomplishing its contribution to society in this area, the Company will continue efforts to form a solidbase of operations focused on strengthening the Kanamoto Group’s presence in metropolitan areas,
and move forward with its plan to create a base for overseas activities.
The Company also plans to continue restricting to a certain quantity the sale of used construction
equipment, which was partially postponed in order to utilize the equipment for earthquake disasterreconstruction, and will respond carefully to used equipment demand by monitoring overseas markets
and the exchange rate trend.
To establish a business management organization capable of efficiently generating earnings,
Kanamoto also will continue its focus on cost reductions and efficient asset deployment, and work tofurther strengthen its regional sales organization, which over the past several years has achieved
significant results. At the same time, the Company will strive to further ensure earnings from otheravenues, including the creation of rental demand in sectors other than construction-related market
segments.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 11

In the construction equipment rental business, rental demand is expected to remain driven by works
related to full-scale restoration and recovery from the Great East Japan Earthquake and by disasterprevention and disaster mitigation countermeasures, particularly in the Tokyo metropolitan area. The
full-year projection, which also reflects the contribution to operating results of Unite Co., Ltd., whichbecame a Kanamoto subsidiary in June 2012, is shown in the table below. The Company will continue
to watch regional construction demand trends closely, and work to establish a stable revenue baseand strive to open and expand new domestic sectors and markets, while achieving synergistic effects
through the efficient allocation of employees and assets, accurate response to customers’ needs andcooperation with domestic affiliated firms.
Although overseas operations represent only a very small percentage of earnings at the present
time, Kanamoto will continue efforts to expand this aspect of its business. This includes the overseas
development of geoengineering-related firms, and expansion into new areas, primarily in Southeast
Asian countries. The Company will seek to broaden its search for business opportunities in eachregion, with rentals as the main focus, while continuing to give full and proper consideration tocountry and business risks.
The Company’s earnings projection for the fiscal year ending October 2013 is shown in the tablebelow.
Fiscal year ending October 2013 Projected Operating Results(November 1, 2012 -October 31, 2013)(Millions of yen except net income per share, which is in yen)

Revenues
Consolidated
full-year projection
Company
full-year projection

OperatingincomeOrdinary
incomeNet income

Net income
per share ofcommon stock

99,150

7,120

6,510

3,190

97.16

70,590

5,740

5,270

2,740

83.45

(3) Basic Policy Concerning Distribution of Earnings and Dividends and Other Matters for theConsolidated Fiscal Year under Review and Next Consolidated Fiscal YearAs the basis of its earnings distribution policy, Kanamoto seeks to ensure a stable return of earnings
to the maximum extent possible. The Company considers maintaining a stable dividend to be afundamental management policy. The Company currently is working to ensure its ability to maintainand continue its present annual dividend of ¥20 per share, consisting of an interim dividend of ¥10 anda year-end dividend of ¥10 per share. Furthermore, the Company plans to utilize its internal reservesby allocating funds for capital investment, including the introduction of rental equipment assets thatwill serve as the source of future earnings, and for enhancing shareholders’ equity.
To enable the Company to flexibly implement its capital policy, Kanamoto has established a system
for making purchases of treasury stock.
For the Business Period ended October 2012, the Company plans to pay a regular dividend of ¥20 per
share for the full year, consisting of an interim dividend of ¥10 per share and a year-end dividend of¥10 per share (subject to approval of a resolution at the regular Board of Directors meeting on
December 27, 2012).
Special benefits plan for shareholders
Shareholders owning at least 1,000 shares who are described or recorded in the Register of
Shareholders and List of Beneficial Shareholders as of October 31 (Date of Record) of each year will
receive fresh products from Hokkaido, the birthplace of Kanamoto, with a value equivalent to ¥3,000(selected from a specially mailed catalog).

Financial Statements Bulletin, FY Ended October 31, 2012
P. 12

(4) Business and other risks
The following risks are included among the business and accounting matters described in the Financial
Statements Bulletin that might have an important influence on investors’ decisions. Forward-looking
statements included in this document are judgments made by the Company based on information
available at the present point in time.
a) Economic conditions
In the construction-related business that is the main business of the Kanamoto Group, earnings are
influenced significantly by the domestic construction investment trend, whether it reflects public or
private sector demand. Consequently there is a possibility future operating results including revenues
will be negatively affected if further large reductions in public works or other changes affecting industry
demand occur in the future. In addition, overseas sales of used construction equipment are affected by
the global economy and the exchange rate trend prevailing at the time of sale.
b) Seasonal variations in operating results
Because budget decisions for public works are made in April of each year, there is a time lag ofroughly six months before construction actually is begun. Therefore the construction-related businesses
that are Kanamoto’s main business experience a trend in which the busy season during each businessperiod extends from about October until the following March, and construction equipment rental
demand reaches its maximum peak during this period. As a result, the revenues and earnings of theKanamoto Group tend to be concentrated in the Company’s first-half accounting period (the six-month
period from November through the following April).
c) Interest rate trends
The Kanamoto Group allocates internal capital and procures funding from outside sources to meet its
need for funds to purchase rental equipment and other assets, make branch-related capital
investments and provide working capital for business activities. Although the Company takes steps tomitigate the affect of interest rate fluctuations on its externally borrowed funds, including transactions
to fix the interest rates paid on borrowed funds to the extent possible, there is a possibility theoperating results and financial position of the Kanamoto Group will be affected by future large changes
in short-term interest rates.
d) Guarantees
The Kanamoto Group has entered into guarantee agreements with financial institutions for certain
obligations owed by affiliated companies on the basis of loans, finance lease obligations and installment
payment contracts. There is a possibility the operating results and financial position of the Kanamoto
Group might be adversely affected should circumstances under which the Company is requested toperform its guarantees arise in the future.
e) Asset impairment accounting for fixed assets
The Kanamoto Group has adopted the Accounting Standard for Impairment of Fixed Assets. There isa possibility the operating results and financial position of the Kanamoto Group might be negatively
affected if the profitability of fixed assets declines because of factors such as a marked deterioration in
the Company's business environment in the future.
f) Restrictive financial covenants
Agreements with financial institutions pertaining to the borrowings of the Kanamoto Group frequently
establish restrictive financial covenants. Although Kanamoto judges the probability of violating theserestrictive financial covenants to be low, there is a possibility the operating results and financial
position of the Kanamoto Group will be adversely affected if the Company has violated such restrictive
financial covenants.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 13

2. Current Conditions of the Company’s GroupThe Kanamoto Group (Kanamoto and its affiliated companies) has organized its principal businessactivities around “Business related to the Construction Equipment Rental Division,” which is engaged in
the rental and sale of construction equipment and construction-related equipment parts, “Business
related to the Steel Sales Division,” which sells materials for construction such as steel products, and“Business related to the Information Products Division and Other Businesses,” including the rental andsale of computers such as workstations and PC servers and computer peripheral equipment, and theprovision of specified worker dispatching services.
The Group is comprised of the parent company, ten consolidated subsidiaries and four nonconsolidated subsidiaries. There are no companies that apply equity method accounting to nonconsolidated subsidiaries.
An explanation of the business activities and position of each company in the Kanamoto Group, andthe relationships to the Group’s business segments, is provided below.
<Business related to the Construction Equipment Rental Division>
The Company’s Construction Equipment Rental Division, Daiichi Kikai Co., Ltd. (a consolidated
subsidiary company), Kanki Corporation (a consolidated subsidiary company), Toyo Industry Co., Ltd. (aconsolidated subsidiary company) and Kyushu Kensan Co., Ltd. (a consolidated subsidiary company) areengaged in the rental and sale of foundation equipment, construction cranes, and construction
equipment and tools. These companies borrow rental equipment assets from the Company as needed inorder to meet customer demand. In addition, the Company borrows rental assets from each of thesecompanies as needed to rent to other companies.
Assist Co., Ltd. (a consolidated subsidiary company) is engaged in the rental and sale of furniture,
fixtures and safety products. Kanatech Co., Ltd. (a consolidated subsidiary company) designs and sells
modular housing units for temporary use. The Company borrows rental assets from each of thesecompanies as needed to rent to other companies. Kanamoto also purchases modular housing units for
temporary use as needed to rent to its own customers.
Unite Co., Ltd. (a consolidated subsidiary), which Kanamoto acquired on June 28, 2012 through an
acquisition of shares, is engaged in the rental and sale of road construction equipment, and also
manages a road construction business. Unite Co., Ltd. borrows rental equipment assets from theCompany as needed in order to meet customer demand. In addition, the Company borrows rental assets
from Unite Co., Ltd. as needed to rent to other companies.
Shanghai Jinheyuan Engineering Construction Co., Ltd. (a consolidated subsidiary; Shanghai, China)
and SJ Rental, Inc. (a consolidated subsidiary; Territory of Guam, United States), are engaged in therental and sale of construction equipment and tools and the import and export of construction materials.
At its Board of Directors meeting held on September 7, 2012, the Company resolved to dissolve andliquidate SJ Rental, Inc., and plans to complete the liquidation in September 2013.
In addition to the above, Kanamoto has four unconsolidated subsidiaries: KG Machinery Co., Ltd.,
Flowtechno Corporation, KANAMOTO (HK) CO., LTD. (Hong Kong, China) and Kanamoto & JP Nelson
Equipment (S) PTE. Ltd (Singapore). KG Machinery Co., Ltd. mainly rents specialized large-scaleconstruction equipment in foreign countries. Flowtechno Corporation is engaged in the technicaldevelopment, manufacture and sale of construction equipment for ground improvement works.
KANAMOTO (HK) CO., LTD. borrows rental assets from Kanamoto and is engaged in the rental and saleof construction equipment and tools and the import and export of construction materials. Kanamoto & JP
Nelson Equipment (S) PTE. Ltd rents and sells specialized equipment for engineering works in
Singapore.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 14

KG Machinery Co., Ltd. and Flowtechno Corporation merged on November 1, 2012, with KG MachineryCo., Ltd. as the surviving company, and as KG Flowtechno Co., Ltd. has strengthened Kanamoto’s
organization.
<Business related to the Steel Sales Division>
The Company’s Steel Sales Division sells steel products and other construction-related manufactured
products. The Company has no subsidiaries or affiliated companies related to this business.
<Information Products Division-related businesses and other business>
Kanamoto’s Information Products Division is engaged in the rental and sale of computers, including
workstations and PC servers, as well as computer peripheral equipment. Kanamoto Engineering Co., Ltd.
(a consolidated subsidiary) manages specified worker dispatching undertakings to dispatch engineeringrelated research and development employees to manufacturers and other entities.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 15

The companies and activities described above are shown in the following diagram illustrating theiroperating businesses relationships.

The companies and activities described above are shown in the following diagram illustrating
their operating businesses relationships.
Domestic Customers

Construction equipment rental

Kanamoto Co., Ltd

Daiichi Kikai Co., Ltd

Rental of construction related products and parts

Assist Co., Ltd
Rental and sale of furniture, fixturesand safety products

Construction equipment rentals andsales
Kanki Corporation
Construction equipment rentals andsales
Kyushu Kensan Co., Ltd.

Construction
Equipment Rental
Division

Construction equipment rentals
centered on foundation equipment

Overseas

Toyo Industry Co., Ltd.
Shield tunneling method-related
peripheral equipment rentals andsales

Shanghai Jinheyuan Engineering
Construction Co., Ltd.
Construction equipment rentals andsales
Import and export of construction
materials

Unite Co., Ltd.
Rental and sale of road construction
equipment
Road construction business

SJ Rental, Inc.

Steel Sales Division

Construction equipment rentals andsales
KANAMOTO (HK) CO., LTD.
Construction equipment rentals andsales

Information Products
Division

Design, manufacture and sale of related products

Kanamoto & JP Nelson
Equipment (S) PTE. Ltd
Specialized engineering works
equipment rentals and sales

Overseas customers andoverseas trading companies

Kanatech Co., Ltd
Design and sale of modular housing
units for temporary use
Other Businesses

Specialized construction equipment rentals

KG Machinery Co., Ltd.
Ground improvement equipment
rentals and sales

Flowtechno Corporation
Technical development,
manufacture and sale of ground
improvement construction
equipment

Overseas customers anddomestic trading companies

Customers, trading companies,
etc.

Kanamoto Engineering Co., Ltd.
Engineer dispatching(Specified Worker Dispatching
Undertakings)

Manufacturers, etc.

(Notes)(1) There are no non-consolidated subsidiaries to which equity method accounting is applied.
(2) Consolidated subsidiaries are indicated by white boxes, and non-consolidated subsidiaries are shown in greyboxes. Dotted lines indicate the companies that are grouped in the same business classification.
(3) Arrows indicate business transactions. For details please see the text on the previous page.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 16

3. Management Policies(1) Basic Management Policies
The Kanamoto Group believes that seeking innovation, maintaining a dynamic corporate culture andcontinually pushing businesses forward, by regarding “customers’ interests as Kanamoto’s interests,” isthe best way to meet the expectations of shareholders and group stakeholders and ensure earnings
growth. Through this philosophy, Kanamoto practices group management with the objective of being a
corporate group that can make a valuable and tangible contribution to society.
(2) Management Indicators Established as Objectives
Because the construction equipment rental businesses managed by the Kanamoto Group require asubstantial capital investment burden, which necessitates a profit and loss outlook extending over
several years, the Kanamoto Group has always positioned growth in EBITDA+ (earnings before
interest, taxes, depreciation and amortization) as its most important management indicator, while also
taking into consideration ROI (return on investment). As an indicator for measuring the size andcorresponding efficiency of a business, EBITDA+ in particular complements future earnings, andKanamoto recognizes that maintaining and expanding EBITDA+ is absolutely critical to its future
success. At the same time, revenues and operating income are also figures that show the size andearning capacity of a company, and Kanamoto emphasizes the steady growth of these measures as
indicators highlighting its growth potential as a firm. The Company’s medium and long-term operating
results objectives are shown below.
(3) Medium to Long-term Corporate Management Strategy
The Kanamoto Group has formulated a long-term management plan extending through the Business
Period ending October 2014. However, because the management environment has changed more thaninitially assumed, the Company has re-set its earnings objectives for the two remaining fiscal years as
follows.
Details of Kanamoto’s management strategy are provided below.
(Unit: Millions of yen)
Business

Business

Business

Business

Period ended

Period ended

Period ending

Period ending

October 2011

October 2012

October 2013

October 2014

Initial plan

68,10069,30070,70072,200

Revised plan

*71,086*86,106

99,150101,300

Initial plan

1,800

2,900

3,800

4,300

Revised plan

*2,905*6,430

7,120

8,040

Consolidated revenues

Consolidated operating income
An asterisk (*) indicates actual figures.

a) Respond to the Great East Japan Earthquake and Fukushima nuclear accident
The Kanamoto Group has declared a full response in support of restoration and recovery work by
every member of the Kanamoto Group as its most important activity. This effort includes ground
improvement works, an activity in which Kanamoto particularly excels, establishing a full-time team
to concentrate on the Fukushima nuclear accident, and support for decontamination operations. The
Kanamoto Group will work zealously to achieve the quick restoration and recovery of the stricken
areas.
b) Expand and enlarge Kanamoto’s domestic base of operations
Beyond the Tokyo metropolitan area where much of Japan’s public and private sector demand isconcentrated, the Kanamoto Group is actively pursuing branch development, including M&A, in areas
Financial Statements Bulletin, FY Ended October 31, 2012
P. 17

west of the Kanto Region where the Company’s presence until now has been limited. Moreover,Group firms are also working to expand operations through cooperation centered on Kanamoto’s
Regional Special Procurement Sales Division.
c) Undertake overseas deployment
In addition to operations in mainland China, Hong Kong, Guam and Singapore where it hasestablished overseas affiliates, the Company will pursue development in ASEAN countries that are
exhibiting remarkable growth.
Because the sales of high-quality used construction equipment implemented by Kanamoto eachyear enhance the Company’s reputation, and contribute substantially to business development inother countries, Kanamoto also will continue to offer high-quality used construction equipment forsale.
d) Take steps to improve operating activities
Kanamoto regards adept construction equipment management, together with improved operating
efficiency, to be the foundation of the Group’s earnings. Consequently we are taking steps tomaximize earnings during the life of rental equipment and boost operating margins. These include
launching operating improvement measures, thoroughly analyzing and enhancing current operational
processes, strengthening loss controls and sharpening the Group’s competitive capabilities.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 18

(4) Issues to be addressed by the Company
Because construction equipment rentals are its core business, the Kanamoto Group must achieve arobust earnings structure and establish a strong sales and marketing organization, by seeking to
optimize the business sectors, owned asset levels and asset portfolio structure whose operating results
are not affected by the volume of domestic construction investment.
a) Strengthen human resources training and the Kanamoto Group and allianceOver the next several years, rising competition among firms is expected to further throw
distinctions into sharp relief. As the leading firm in the construction equipment rental industry,
Kanamoto strives to foster employees who possess appropriate knowledge and skills and is working
to provide employee training aligned with the Company’s overseas development and domestic
business expansion. Strengthening cooperation among Group firms and increasing transactions withalliance firms will be essential for expansion of the Kanamoto Group’s business sectors and regions,and Kanamoto will pursue measures to augment the Group’s integrated corporate vitality.
b) Reinforce Kanamoto’s financial strategy
Kanamoto is taking steps to ensure timely and optimal funds procurement, while giving
consideration to equipment plans including purchases of rental equipment assets and corporate
facilities. At the same time, the Company is focusing on improving its financial position, and reducing
interest-bearing debt and improving capital efficiency as much as possible, by incorporating
measures such as the liquidation of assets.
c) Continuous cost reductions
When introducing assets, the Company utilizes a thorough benchmark system and strives tomaintain asset value by optimizing asset maintenance costs based on its rental assets operating
policies.
d) Strengthen overseas branch management
The Company will enhance marketing and sales aspects, and strengthen management systems inareas such as asset management and operations management, to match its overseas development.
It also will urgently prepare a system for the assignment of human resources and personnel training
for this purpose.
(5) Other Important Company Management Issues
Compliance and internal controls
Even if it does not work continuously to strengthen its employee training and compliance system ortake special steps to heighten compliance awareness, a firm must fulfill its social responsibility by
establishing an organization to ensure compliance will be implemented.
For the Kanamoto Group, which aspires to sustained growth, a compliance organization isindispensable for the formation of a staunch organization. Kanamoto therefore several years ago
prepared ethical guidelines to serve as a compliance standard, established a Compliance Committee
headed by Kanamoto’s president and took steps to strengthen company-wide observance of laws andethics regulations. The Company works to ensure every individual is thoroughly familiar with its
guidelines, and manages its organization in accordance with these compliance materials.
In addition, to respond appropriately and take measures to prevent a recurrence if unforeseen
circumstances that will have a serious affect on the Company’s operations have occurred or if there isconcern such circumstances might occur, the Company has prepared an Emergency Response Manual(Contingency Plan). One measure for clarifying these activities further is Kanamoto’s “internal controls
reporting system,” which all of the Company’s employees have been united in supporting since thesystem was placed into full-scale operation in the Business Period ended October 2009.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 19

The Great East Japan Earthquake damaged the assets of many of the Kanamoto Group’s valued
customers. The Group’s own business offices were damaged as well. Much of Japan’s local
telecommunications infrastructure in particular failed, creating conditions that made confirmation of thesituation in many areas difficult. Nevertheless, the Company’s Emergency Response Manual clearly
demonstrated its value by generally working as envisaged for the gathering of information from nearby
branches, providing situational reports and following the chain of command. Points that need to be
upgraded in the future were highlighted, and Kanamoto is improving the accuracy of the manual with afocus on the related divisions.
Other measures taken by the Company included the publication of compliance bulletins, which were
mailed from the Compliance Committee Secretariat to each Kanamoto Group company to enlighten
employees concerning legal compliance, and a reorganization that will enable a more precise response
based on strengthening the Legal Office’s staff. Guidance and training programs as well were conductedby the Internal Control Promotion Office at 67 offices, and internal controls similar to Kanamoto’s havebeen established and are now being utilized by 11 Kanamoto Group companies. In addition, the Safety
and Health Office conducted audits at 97 offices, and when combined with the safety patrols by theIndustrial Safety and Health Section, all of the offices were covered.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 20

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Unit: Thousands of yen)
Prior Consolidated

Current Consolidated

Fiscal Year

Fiscal Year(As of October 31, 2011)(As of October 31, 2012)

AssetsCurrent assets
Cash and deposits

Note 2 20,059,836

Note 2 19,387,264

Notes and accounts receivable, trade

Note 5 16,419,596

Note 5 23,560,769

Negotiable securities

350,000

350,000

Merchandise inventories and products

621,325

521,615Work in process

33,29953,187

Raw materials and supplies

198,063

213,177

Construction equipment

1,557,207

2,578,013

Income taxes receivable

10,156

10,676

Consumption tax receivable

103,824

57,839Deferred tax assets

383,915

616,057

Other

606,178

719,242

Allowance for doubtful accounts–368,095–384,382

39,975,310

47,683,461

72,929,202

111,689,105

Accumulated depreciation–41,233,812–65,644,512

Net rental equipment assets

31,695,389

46,044,593

Total Current Assets
Fixed assets
Tangible fixed assets
Rental equipment assets

20,871,684

22,253,505–13,481,705–14,565,048

Note 2 7,389,979

Note 2 7,688,457

5,131,902

5,367,137–4,491,947–4,771,202

639,955

595,935Land

Note 2 29,907,779

Note 2 29,548,049

Other

1,422,796

1,579,813–1,186,184–1,301,459

236,611

278,353

69,869,715

84,155,389

Buildings and structures
Accumulated depreciation
Net buildings and structures
Machinery, equipment, vehicles anddelivery equipment
Accumulated depreciation
Net machinery, equipment, vehicles
and delivery equipment

Accumulated depreciation
Net other
Total Tangible Fixed Assets
Intangible fixed assets

Note 6 159,081

Note 6 192,389

Other243,722

203,849

Total Intangible Fixed Assets

402,804

396,239

Note 1 3,202,316

Note 1 3,196,840

658,472

622,077

Other

1,866,172

1,947,320

Allowance for doubtful accounts–732,482–590,261

Reserve for investment losses–122,010–67,985

Goodwill

Investments and other assets
Investment securities
Deferred tax assets

Total Investments and Other Assets
Total Fixed Assets

4,872,468

5,107,991

75,144,988

89,659,620

Financial Statements Bulletin, FY Ended October 31, 2012
P. 21

Total Assets

115,120,298

137,343,082

Financial Statements Bulletin, FY Ended October 31, 2012
P. 22

(Unit: Thousands of yen)
Prior Consolidated

Current Consolidated

Fiscal Year

Fiscal Year(As of October 31, 2011)(As of October 31, 2012)

Liabilities
Current liabilities
Notes and accounts payable, trade
Short-term bank loans
Long-term bank loans due within one year
Current portion of bonds

13,318,570

18,011,309

Note 2 11,155,150

Note 2 834,688

Note 2 9,853,531

Note 2 12,671,669

22,000－1,087,355

1,106,553

Corporate taxes payable322,353

2,344,595

Accrued bonuses to employees

531,006

774,430

Lease obligations

289,850

10,014

Accounts payable, other7,574,532

9,386,566

Other

1,188,201

1,641,311

Total Current Liabilities

45,342,552

46,781,139

Note 2 17,063,051

25,945,267

1,430,603

3,041,801

37,455959

210,336－

Long-term accrued expenses

13,251,369

19,707,957

Asset retirement obligations

147,078

207,696

Allowance for disaster losses

Long-term liabilities
Long-term bank loans
Lease obligations
Accrued employees retirement benefits
Retirement allowances to directors andauditors

Other
Total Long-term Liabilities
Total Liabilities

45,143

258,31032,185,039

49,161,991

77,527,592

95,943,130

Net Assets
Shareholders’ equity
Capital stock

9,696,717

9,696,717

Capital surplus

10,960,749

10,960,761

Retained earnings

16,297,314

19,199,668–25,240–27,523

36,929,541

39,829,623

198,819

331,641–42,758–54,766

156,060

276,874

Treasury stock
Total Shareholders’ Equity
Accumulated other comprehensive income
Valuation difference on other investment
securities
Translation adjustments accountTotal accumulated other comprehensive
incomeMinority Interests
Total Net Assets
Total Liabilities and Net Assets

507,104

1,293,453

37,592,706

41,399,951

115,120,298

137,343,082

Financial Statements Bulletin, FY Ended October 31, 2012
P. 23

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

Current Consolidated

Fiscal Year

Fiscal Year

(From November 1, 2010

(From November 1, 2011

to October 31, 2011)

to October 31, 2012)

Total revenues

71,086,825

86,106,869

Total cost of revenues

50,631,190

60,333,558

Gross profit

20,455,634

25,773,311

Note 1 17,550,043

Note 1 19,343,124

2,905,590

6,430,186

Interest revenue

11,006

10,001Dividend income

50,991

85,914

Insurance benefits

33,92664,381

Rents received

45,48853,914

Cash bonus received

5,528

23,256

Amortization of negative goodwill

69,831

69,831

Selling, general and administrative expenses
Operating income
Non-operating revenues

Reversal of allowance for doubtful accounts－

22,654

Reversal of allowance for disaster losses－

101,483

Other

122,820

183,518

Total non-operating revenues

339,594

614,956

792,703856,374

Non-operating expenses
Interest expense
Loss on sale of notes receivable

41,94945,925

Other

170,971

209,971

1,005,625

1,112,271

2,239,560

5,932,871

Total non-operating expenses
Ordinary income
Extraordinary profits
Subsidies
Gain on sale of fixed assets
Gain on sale of investment securities
Gain on investment in partnership enterprise
Gain on reversal of allowance for doubtful
accounts
Gain on termination of retirement benefit plan
Gain on negative goodwill
Other
Total extraordinary profits

32,612

177,532

Note 2 11,418

Note 2 21,106

52

1,092

1,935

－

13,989－1,465,200－－

671,889

9,125

19,674

1,534,332

891,296Note 3 132,878

Note 3 185,006

Note 4 63,440

Note 4 343,425

17,001116,009

Extraordinary losses
Loss on sale or retirement of fixed assets
Impairment loss
Loss on sale of investment securities

134,714107

Note 5 837,968－

Provision of allowance for investment losses

41,310－

Provision of allowance for doubtful accounts

1,550

－

95,530－

Valuation loss on investment securities
Loss from disaster

Loss on adjustment for changes of accounting
standard for asset retirement obligations

Financial Statements Bulletin, FY Ended October 31, 2012
P. 24

Other

2,989－

1,327,382

644,549

Income before taxes and adjustments

2,446,510

6,179,618

Corporate, local and business taxes

862,362

2,752,132

Adjustment for corporate and other taxes

470,434

2,563

1,332,796

2,754,696

Total extraordinary losses

Total corporate and other taxes

Financial Statements Bulletin, FY Ended October 31, 2012
P. 25

(Unit: Thousands of yen)

Income before adjustment for minority interests(loss)
Minority interest in income (loss)
Net income

Prior Consolidated

Current Consolidated

Fiscal Year

Fiscal Year

(From November 1, 2010

(From November 1, 2011

to October 31, 2011)

to October 31, 2012)

1,113,713

3,424,922–52,107–150,132

1,165,821

3,575,054

Financial Statements Bulletin, FY Ended October 31, 2012
P. 26

(Consolidated Statements of Comprehensive Income)(Unit: Thousands of yen)
Prior Consolidated

Income before adjustment for minority interests(loss)

Current Consolidated

Fiscal Year

Fiscal Year

(From November 1, 2010

(From November 1, 2011

to October 31, 2011)

to October 31, 2012)

1,113,713

3,424,922

51,302

132,730

Other comprehensive income
Valuation difference on other investment
securities
Translation adjustments account–8,073–5,893

Total other comprehensive income

43,229126,836

1,156,942

3,551,758

1,214,851

3,695,827–57,908–144,068

Comprehensive income(Breakdown)Comprehensive income attributable to ownersof the parent
Comprehensive income attributable to minority
interests

Financial Statements Bulletin, FY Ended October 31, 2012
P. 27

(3) Consolidated Statement of Changes in Net Assets(Unit: Thousands of yen)
Current Consolidated

Prior Consolidated
Fiscal Year

Fiscal Year

(From November 1, 2010

(From November 1, 2011

to October 31, 2011)

to October 31, 2012)

Shareholders’ equity
Capital stock
Balance at beginning of year

9,696,717

9,696,717

Change of items during the year
Total changes of items during the year－－

9,696,717

9,696,717

10,960,869

10,960,749

Disposal of treasury stock

–120

11

Total changes of items during the year

–120

11

10,960,749

10,960,761

15,788,189

16,297,314

Balance at end of year
Capital surplus
Balance at beginning of year
Change of items during the year

Balance at end of year
Retained earnings
Balance at beginning of year
Change of items during the year
Dividends from surplus–656,695–656,678

Net income

1,165,821

3,575,054－

16,022

509,125

2,902,354

16,297,314

19,199,668–24,963–25,240

Purchase of treasury stock–848–2,569

Disposal of treasury stock

571

285

Total changes of items during the year–277

–2,283–25,240–27,523

36,420,813

36,929,541

Increase (decrease) from change in scopeof consolidation
Total changes of items during the year
Balance at end of year
Treasury stock
Balance at beginning of year
Change of items during the year

Balance at end of year
Total shareholders’ equity
Balance at beginning of year
Change of items during the year
Dividends from surplus–656,695–656,678

Net income

1,165,821

3,575,054－–16,022–848–2,569

Increase from change in scope of
consolidation
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the year
Balance at end of year

450

297

508,7272,900,082

36,929,541

39,829,623

Financial Statements Bulletin, FY Ended October 31, 2012
P. 28

(Unit: Thousands of yen)
Prior Consolidated

Current Consolidated

Fiscal Year

Fiscal Year

(From November 1, 2010

(From November 1, 2011

to October 31, 2011)

to October 31, 2012)

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Balance at beginning of year

147,516

198,819

51,302

132,82151,302

132,821

198,819

331,641–40,486–42,758–2,272–12,007

Change of items during the year
Net changes of items other thanshareholders’ equity
Total changes of items during the year
Balance at end of year
Translation adjustments accountBalance at beginning of year
Change of items during the year
Net changes of items other thanshareholders’ equity
Total changes of items during the year
Balance at end of year

–2,272–12,007–42,758–54,766

107,030

156,060

49,030120,813

Total accumulated other comprehensive income
Balance at beginning of year
Change of items during the year
Net changes of items other thanshareholders’ equity
Total changes of items during the year
Balance at end of year

49,030120,813156,060

276,874

497,753

507,104－–26,450

9,350

812,799

Minority interests
Balance at beginning of year
Change of items during the year
Increase (decrease) from change in scope of
consolidation
Net changes of items other thanshareholders’ equity
Total changes of items during the year
Balance at end of year

9,350

786,348

507,104

1,293,453

37,025,597

37,592,706

Total net assets
Balance at beginning of year
Change of items during the year
Dividends from surplus–656,695–656,678

Net income

1,165,821

3,575,054－–42,473

Purchase of treasury stock–848–2,569

Disposal of treasury stock

450

297

58,381

933,613567,108

3,807,244

37,592,706

41,399,951

Increase (decrease) from change in scope of
consolidation

Net changes of items other thanshareholders’ equity
Total changes of items during the year
Balance at end of year

Financial Statements Bulletin, FY Ended October 31, 2012
P. 29

Financial Statements Bulletin, FY Ended October 31, 2012
P. 30

(4) (Consolidated Statements of Cash Flows)(Unit: Thousands of yen)
Current Consolidated

Prior Consolidated
Fiscal Year

Fiscal Year

(From November 1, 2010

(From November 1, 2011

to October 31, 2011)

to October 31, 2012)

Cash flow from operating activities
Income before taxes and adjustments

2,446,510

6,179,618

Depreciation and amortization expense

8,835,460

11,071,145

Impairment loss

63,440343,425

Amortization of goodwill

206,378

158,667－–671,889

121,460

163,900

38,05746,002

3,703

5,646

469,093

512,971–458,394–1,238,618–1,959,417–1,916,267

Gain on negative goodwill
Loss on sale or retirement of fixed assets
Installment purchases of assets for small-value
rentals
Reclassification of cost of sales associated withdisposal of construction equipment
Reclassification of cost of sales associated withdisposal of rental assets
Expenditures for acquisition of construction
equipment
Expenditures for acquisition of rental assets
Valuation loss on investment securities

134,714

107

Loss on sale of investment securities

16,948114,917

Decrease in allowance for doubtful accounts–94,970–151,989

Increase in allowance for investment loss

41,3107,000–57,951

140,367–1,304,003–35,686

4,708–205,964－–142,425–61,998–95,916

183,318

238,141

Increase (decrease) in accrued bonuses to
employees
Increase (decrease) in accrued employees
retirement benefits
Increase (decrease) in retirement allowances todirectors and auditors
Increase (decrease) in allowance for disasterlossesInterest revenue and dividend income
Interest expense on installment purchases ofrental assets

792,703856,374–1,463,045–1,442,561(Increase) decrease in inventory–49,726

39,561

Increase in notes and accounts payable

261,380

1,165,452

95,530－Interest expense
Increase in notes and accounts receivable

Loss on adjustment for changes of accounting
standard for asset retirement obligations
Loss from disaster

837,968－

Increase in accounts payable, other742,842

727,812

Other–232,550

287,357

Subtotal

9,613,471

16,157,151

Interest and dividends received
Interest expense
Payments for loss on disaster
Refund (payment) of corporate and other taxes

62,017

95,959–926,960–1,065,306–187,226–137,410–1,657,775–744,054

Financial Statements Bulletin, FY Ended October 31, 2012
P. 31

Cash flow from operating activities

6,903,527

14,306,339

Financial Statements Bulletin, FY Ended October 31, 2012
P. 32

(Unit: Thousands of yen)
Prior Consolidated

Current Consolidated

Fiscal Year

Fiscal Year

(From November 1, 2010

(From November 1, 2011

to October 31, 2011)

to October 31, 2012)

Cash flow from investing activities
Revenue from redemption of term deposits
Funds used for the purchase of tangible fixed
assetsFunds provided from the sale of tangible fixed
assetsFunds used for the purchase of intangible fixed
assetsFunds used for the purchase of investment
securities
Funds provided from sale of investment
securities

50,00015,000–517,851–451,920

16,556

121,932–9,840–10,431–449,791–61,295

299

174,845－

Note 2 –662,777–61,310–50,060–45,181－–163,140－

105,056

45,315

Funds used for the purchase of investments in
subsidiaries resulting in change in scope of
consolidation
Funds used for the purchase of subsidiary stock
Funds used for establishment of subsidiarycompany
Funds used for short-term loans
Funds provided from collection of short-termloans receivable
Other
Cash flow from investing activities

62,10144,061–1,013,101–835,331

Cash flow from financing activities
Increase (decrease) in short-term bank loans

9,767,868–2,340,610

Funds provided by long-term bank loans

2,580,000

10,641,125

Funds used to repay long-term bank loans–10,935,261–12,042,300–22,000–22,000–6,006,420–8,423,533

Funds used for repayment of lease obligations–1,057,208–1,253,430

Funds used for the purchase of treasury stock–848–2,569Funds provided from the sale of treasury stock

450

297

–3

–55

–656,398–659,737

68,26527,830–1,006－–6,262,560–14,074,983–4,245–21,387–376,380–625,363

20,751,217

20,374,836－–32,208

Funds used to redeem corporate bonds
Funds used for repayment of installment
obligations

Funds used for the purchase of treasury stockof subsidiary
Payment of dividends
Funds provided by payment from minority
shareholders
Cash dividends paid to minority shareholders
Cash flow from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Decrease in cash and equivalents
Balance of cash and equivalents at beginning of
periodDecrease in cash and equivalents in conjunction

Financial Statements Bulletin, FY Ended October 31, 2012
P. 33

with change in accounting period of consolidated
subsidiary
Balance of cash and equivalents at end of period

Note 1 20,374,836

Note 1 19,717,264

Financial Statements Bulletin, FY Ended October 31, 2012
P. 34

(5) Notes Relating to the Going Concern Assumption
The Company had no material items to report.
(6) Basis of Preparation of the Consolidated Financial Statements
1. Companies included in the consolidation(1) Number of consolidated companies: 10
Consolidated subsidiary name
Assist Co., Ltd
Kanatech Co., Ltd
Kanki Corporation
Kanamoto Engineering Co., Ltd.
Kyushu Kensan Co., Ltd.
Shanghai Jinheyuan Engineering Construction Co., Ltd.
Daiichi Kikai Co., Ltd
Toyo Industry Co., Ltd.
Unite Co., Ltd.
SJ Rental, Inc.
Unite Co., Ltd. is included in the scope of consolidation because Kanamoto acquired its
shares and made the company a subsidiary during the consolidated fiscal year under review.
During the consolidated fiscal year under review, Kanamoto absorbed and merged with SRG
Kanamoto Co., Ltd., a consolidated subsidiary, with Kanamoto as the surviving company.
(2) Number of non-consolidated companies: 4
Non-consolidated subsidiary company name
KANAMOTO (HK) CO., LTD.
Flowtechno Corporation
KG Machinery Co., Ltd.
Kanamoto & JP Nelson Equipment (S) PTE. Ltd(Reason for exclusion from scope of consolidation)
The size of each of the non-consolidated subsidiaries is small, and each company’s total
assets, sales and fiscal year profit or loss (amount corresponding to equity) and retained
earnings (amount corresponding to equity) are small in size and do not have a material effecton the consolidated financial statements.
2. Matters pertaining to application of equity method accounting
The four non-consolidated subsidiaries have been omitted from items to which equity method
accounting is applied because their respective effect on consolidated net income or loss (amountcorresponding to minority interest) and consolidated retained earnings (amount corresponding
to minority interest) is immaterial and none of the companies is important to the Company’s
overall operations.
3. Matters pertaining to the fiscal year closing date for consolidated subsidiaries
The fiscal year closing date for all of the consolidated subsidiaries except SJ Rental, Inc. andShanghai Jinheyuan Engineering Construction Co., Ltd. is October 31. The fiscal year closing
date for SJ Rental, Inc. is September 30. The fiscal year closing date for Shanghai Jinheyuan
Engineering Construction Co., Ltd. is December 31.
When preparing the consolidated financial statements, the Company used the financial
statements of Shanghai Jinheyuan Engineering Construction Co., Ltd. based on a provisional
settlement of accounts implemented as of September 30 and the financial statements of SJ
Rental, Inc. as of that company’s closing date, adjusted for significant transactions that occurred
between the subsidiaries’ fiscal year-end and the consolidation date that have a material effecton the consolidated financial results.
The closing dates for Assist Co., Ltd., Kyushu Kensan Co., Ltd. and Kanatech Co., Ltd. werechanged at the beginning of the consolidated fiscal year under review, and the closing dates for

Financial Statements Bulletin, FY Ended October 31, 2012
P. 35

Daiichi Kikai Co., Ltd., Toyo Industry Co., Ltd. and Unite Co., Ltd. were changed during theconsolidated fiscal year under review, to the same consolidated closing date used by theCompany. The three companies for which the closing date was changed at the beginning of theperiod were reported as a change in retained earnings. Daiichi Kikai Co., Ltd. and Toyo Industry
Co., Ltd., for which the closing dates were changed during the consolidated fiscal year underreview, were consolidated using a 14-month accounting period. Unite Co., Ltd. has been
consolidated using a four-month accounting period as a result of the purchase of that company’s
shares during the consolidated fiscal year under review.
4. Accounting principles and standards used for normal accounting treatment(1) Appraisal standards and appraisal methods for principal assets
a. Negotiable securities
Other negotiable securities
Securities with a market price
The Company has adopted the market value method (the full amount of the valuationdifference is charged to net assets using the direct transfer to capital method, with thedisposal cost determined by the moving average method) based on the market price on the
consolidated accounting fiscal year closing date or similar prices.
Securities without market prices
The Company has adopted the cost method, cost being determined by the moving averagemethod.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 36

b. Construction equipment
The Company calculates the amount after deduction of depreciation expense according to
the straight-line method from the original prices, by separate fiscal year of purchase.
c. Inventory(i) Merchandise inventories and products
The Company has adopted the cost method, cost being determined based on the
periodic average method (amounts shown on the balance sheet are calculated bydetermining write-downs of book value based on the decline in profitability)(ii) Work in process
The Company has adopted the cost method, cost being determined by the specificidentification method(iii) Raw materials and supplies
The Latest Purchase Cost method (amounts shown on the balance sheet are calculated
by determining write-downs of book value based on the decline in profitability)(2) Depreciation methods for principal depreciable assets
a. Tangible fixed assets (excluding lease assets)
The Company has adopted the straight-line method for rental assets (for certain
consolidated subsidiaries, the declining-balance method) and the declining-balance method
for other assets. Buildings on land that is leased under a fixed-term land lease agreement,
however, are depreciated using the straight-line method using the remaining period of the
fixed-term lease as the depreciable life and zero residual value. For certain consolidated
subsidiaries the Company has adopted the straight-line method for buildings and structuresacquired on or after April 1, 2000 but excluding fixtures and equipment.
The depreciable lives mainly used by the Company are as follows.
Rental assets
2-15 years
Buildings and structures
2-60 years
b. Intangible fixed assets (excluding lease assets)
The Company has adopted the straight-line method.
Software for use within the Company is depreciated using the straight-line method basedon the assumed useful life for internal use (5 years).
c. Lease assets
The Company has adopted straight-line depreciation using the lease term as thedepreciable life and zero residual value.
The Company accounts for finance lease transactions except for leases that transfer
ownership of the property for which the lease start date is before October 31, 2008 by
applying accounting treatment based on the method applied for ordinary rental transactions.
(3) Accounting standards for principal allowances and reserves
a. Allowance for doubtful accounts
To provide for losses on doubtful accounts such as accounts receivable, the Company
charges to income an amount based on actual loss experience for normal accounts, plus anamount for projected unrecoverable amounts based on separate assessments of theprobability of collection from specified credits such as credits in danger of bankruptcy.
b. Accrued bonuses to employees
To fully provide for expenditures of bonuses the Company will pay to employees, anamount is appropriated to the reserve during the fiscal year based upon a salary estimate
amount.
c. Allowance for disaster losses
To provide for repair costs and disposal costs for assets damaged or destroyed by theGreat East Japan Earthquake, the Company charged the estimated amount of such costs toincome at the end of current consolidated accounting fiscal year.
d. Accrued employees retirement benefits

Financial Statements Bulletin, FY Ended October 31, 2012
P. 37

The Company provides for accrued employees retirement benefits at certain consolidated
subsidiaries based upon pertinent rules and appropriated to the account proportionately atthe end of the consolidated fiscal year based upon length of service.
(Supplemental information)
Kanamoto and certain of its consolidated subsidiaries have discontinued the system for
retirement allowances to Corporate Officers at the conclusion of the Regular General
Meeting of the Shareholders, based on a resolution of each company’s Board of Directors.
Furthermore, when the termination payments to directors and auditors were resolved at
the same General Meeting of the Shareholders, the payment of a termination payment tocorporate officers was similarly decided.
In accordance with this change, Kanamoto has disclosed accrued employees retirement
benefits of ¥34,805,000 corresponding to the period until the conclusion of the Regular
General Meeting of the Shareholders by including the amount in long-term accrued
expenses reported under long-term liabilities.
e. Reserve for investment losses
The Company provides for losses from the decline in real prices of assets such as the stockof subsidiary companies that are subject to asset impairment accounting by applying
internally established standards that take into consideration subsidiary company operating
results and asset quality.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 38

(4) Accounting standards for principal income and expenses
Accounting standards for amount of completed works and cost of completed construction
works
a. Construction works for which the portion of the works completed by the end of the year
can be reliably determined
Percentage-of-completion method (progress in construction works is estimated using thecost comparison method)b. Other construction works
Completed-contract method(5) Standard for conversion of main foreign currency-denominated assets or liabilities into
Japanese yen
The Company converts monetary claims and monetary liabilities denominated in foreign
currencies into Japanese yen at the exchange market spot rate on the consolidated fiscal year
settlement date, and charges the translation difference to income as a gain or loss. The assets
and liabilities of controlled foreign corporations are converted into Japanese yen at the spot
exchange rate on the foreign corporation’s fiscal year closing date, and the earnings and costs
are converted into Japanese yen using the average market price during the period, and thetranslation difference is accounted for by including the amounts in the total valuation andtranslation adjustments account and minority interests in net assets.
(6) Hedge accounting for principal hedging methods
a. Hedge accounting method
The Company’s interest swap transactions fulfill the requirements for special ruleaccounting, and the Company has elected to use this to account for hedge transactions.
b. Hedge methods and hedged transactions
The Company uses interest swaps to avoid interest rate fluctuation risk related to intereston bank borrowing.
c. Hedging policies
The Company’s use of derivative transactions is limited to hedging risk within the scope of
the Company's assets and liabilities subject to market fluctuation risk.
d. Method for evaluating the effectiveness of hedges
The Company’s interest swap transactions fulfill the requirements for special ruleaccounting, and the Company has elected to use this in place of an evaluation ofeffectiveness.
(7) Amortization method and amortization period for goodwill
The Company amortizes goodwill and negative goodwill generated before October 31, 2010
using the straight-line depreciation over five years. However, extremely small amounts are
written off completely in the year in which they occur.
(8) Items included in cash and equivalents on the Consolidated Statements of Cash Flows
Funds included in cash (cash and cash equivalents) on the Consolidated Statement of Cash
Flows include cash on hand, deposits that can be withdrawn on demand and highly liquid
short-term investments that mature within three months of the date of acquisition and which
can be easily converted into cash and that have minimal risk of a change in price.
(9)Accounting standards for consumption tax
Consumption tax is taken out of all Statement of Income items and Balance Sheet items,
except mainly for receivables and payables.
(7) Changes in Reporting Method(Consolidated Statements of Income)In the prior consolidated fiscal year, the Company reported the “Loss on sale of investment
securities” in “Other” under extraordinary losses. The Company has reported this item separately
for the current consolidated fiscal year because the amount exceeded 10% of total extraordinary

Financial Statements Bulletin, FY Ended October 31, 2012
P. 39

losses. To reflect this change in reporting method, the Company has made certain reclassifications
to its consolidated financial statements for the prior consolidated fiscal year.
As a result, ¥19,990,000 that was reported in “Other” under extraordinary losses in theConsolidated Statement of Income in the prior consolidated fiscal year has been reclassified, with
¥17,001,000 reported in “Loss on sale of investment securities” and ¥2,989,000 reported in“Other.”(Consolidated Statements of Cash Flows)
Because the “Expenditures for acquisition of construction equipment” that were reported in“Other” under cash flow from operating activities in the prior consolidated fiscal year haveincreased in importance, the Company has decided to report this item separately beginning fromthe current consolidated fiscal year. To reflect this change in reporting method, the Company has
made certain reclassifications to its consolidated financial statements for the prior consolidated
fiscal year.
As a result, -¥690,944,000 that was reported in “Other” under cash flow from operating
activities” in the prior consolidated fiscal year has been reclassified, with -¥458,394,000 reported
in “Expenditures for acquisition of construction equipment” and -¥232,550,000 reported in“Other.”Financial Statements Bulletin, FY Ended October 31, 2012
P. 40

(8) Supplemental information(Retirement allowances to directors and auditors)
Kanamoto and certain of its consolidated subsidiaries resolved at the Board of Directors of eachcompany to discontinue the system for retirement allowances to directors and auditors, and thetermination payment in conjunction with discontinuation of the system for retirement allowances
to directors and auditors was resolved and approved by the Regular General Meeting of the
Shareholders of each company. In accordance with this change, Kanamoto has reversed the fullamount of the retirement allowances to directors and auditors corresponding to the period until
the conclusion of the Regular General Meeting of the Shareholders, and disclosed the unpaid
amount of ¥217,138,000 in conjunction with the termination payment by including the amount inlong-term accrued expenses reported under long-term liabilities.
(Application of the Accounting Standard for Accounting Changes and Error Corrections)
Beginning from accounting changes and corrections of past errors that were implemented fromthe beginning of the current consolidated fiscal year, the Company will apply the AccountingStandard for Accounting Changes and Error Corrections (Accounting Standards Board of Japan
Statement No. 24 dated December 4, 2009) and the Guidance on the Accounting Standard for
Accounting Changes and Error Corrections (Accounting Standards Board of Japan Guidance No. 24
dated December 4, 2009).
(Effect of revision to the corporate tax rate)
The “Act for Partial Revision of the Income Tax Act etc. for the Purpose of Creating Taxation
System Responding to Changes in Economic and Social Structures” (Act No. 114 of 2011) and the“Act on Special Measures for Securing Financial Resources Necessary to Implement Measures for
Reconstruction Following the Great East Japan Earthquake” (Act No. 117 of 2011) were
promulgated on December 2, 2011, and the revisions to the corporate tax rate and assessment of
the Special Reconstruction Corporation Tax will be applied from the consolidated fiscal year thatbegins on or after April 1, 2012. In conjunction with this change, the statutory effective tax rateused to calculate deferred tax assets and deferred tax liabilities will be revised from 40.4% appliedin the past to 37.7% for temporary differences expected to be eliminated from the consolidated
fiscal year that begins on November 1, 2012 until the consolidated fiscal year that begins on
November 1, 2014, and to 35.3% for temporary differences expected to be eliminated from theconsolidated fiscal year that begins on November 1, 2015.
As a result of this tax rate revision, deferred tax assets (the amount after deducting deferred tax
liabilities) will decrease by ¥84,066,000, and the adjustment for corporate and other taxes will
increase by ¥110,663,000.

Financial Statements Bulletin, FY Ended October 31, 2012P. 41

(9) Notes to the Consolidated Financial Statements(Notes to the Consolidated Balance Sheets)
1. Matters related to non-consolidated subsidiaries and affiliated companies are as follows.
(Unit: Thousands of yen)
Prior consolidated fiscal year
(As of October 31, 2011)
Investment securities (stock)

Current Consolidated Fiscal Year(As of October 31, 2012)

190,191

262,708

2. Assets provided for security and secured debts
Assets provided for security are as follows:(Unit: Thousands of yen)
Prior Consolidated Fiscal Year(As of October 31, 2011)

Current Consolidated Fiscal Year(As of October 31, 2012)

20,00041,703435,940

20,00035,074150,221

Cash and deposits
Buildings and structures
Land
Secured debts are as follows:(Unit: Thousands of yen)
Prior Consolidated Fiscal Year(As of October 31, 2011)

Current Consolidated Fiscal Year(As of October 31, 2012)

280,000

280,000

63,154

8,326

52,262－

Short-term bank loans
Long-term bank loans due within
one yearLong-term bank loans
3. Guarantees(Unit: Thousands of yen)
Prior Consolidated Fiscal Year(As of October 31, 2011)
Joint and several guarantees
of employee bank loans(North Pacific Bank, Ltd.,others)Guarantee for borrowing
liabilities of Flowtechno
Corporation, a nonconsolidated subsidiarycompany
Guarantee of borrowing
liabilities of KG MachineryCo., Ltd., a non-consolidated
subsidiary company
Guarantee of installment
payment liabilities of KG
Machinery Co., Ltd., a nonconsolidated subsidiarycompany
Guarantee of borrowing
liabilities of KANAMOTO (HK)

Current Consolidated Fiscal Year(As of October 31, 2012)

32,486

100,000

970

38,947

HK$15,500,000(155,155)

Joint and several guarantees
of employee bank loans(North Pacific Bank, Ltd.,others)Guarantee for borrowing
liabilities of Flowtechno
Corporation, a nonconsolidated subsidiarycompany
Guarantee of borrowing
liabilities of KG MachineryCo., Ltd., a non-consolidated
subsidiary company
Guarantee of installment
payment liabilities of KG
Machinery Co., Ltd., a nonconsolidated subsidiarycompany
Guarantee of borrowing
liabilities of KANAMOTO (HK)35,609100,000

110,000

25,201

HK$13,310,000(136,826)

Financial Statements Bulletin, FY Ended October 31, 2012
P. 42

CO., LTD., a non-consolidated
subsidiary company
Guarantee of borrowing
liabilities of KANAMOTO (HK)CO., LTD., a non-consolidated
subsidiary company

US$155,000(12,051)

Total

339,610

CO., LTD., a non-consolidated
subsidiary company
Guarantee of borrowing
liabilities of KANAMOTO (HK)CO., LTD., a non-consolidated
subsidiary company
Guarantee of installment
payment liabilities ofKanamoto & JP Nelson
Equipment (S) PTE. Ltd, a
non-consolidated subsidiarycompany
Total

US$197,000(15,693)

SGD3,529,000(230,595)

653,926

4. Discount on notes receivable, trade and notes receivable, trade transferred by endorsement(Unit: Thousands of yen)

Discount on notes receivable, trade
Notes receivable, trade transferred byendorsement

Prior Consolidated Fiscal Year(As of October 31, 2011)

Current Consolidated Fiscal Year(As of October 31, 2012)

100,209

121,727－

6,195

Financial Statements Bulletin, FY Ended October 31, 2012
P. 43

5. Liquidation of receivables based on receivables transfer facility
Prior consolidated fiscal year (As of October 31, 2011)
Notes receivable, trade
5,000,559
Liquidated claims bearing a right of recourse to the Company and included in the balanceof notes receivable, trade transferred total ¥1,054,898.
Consolidated fiscal year under review (As of October 31, 2012)
Notes receivable, trade
5,248,823
Liquidated claims bearing a right of recourse to the Company and included in the balanceof notes receivable, trade transferred total ¥1,063,730.
6. Goodwill and negative goodwill
Goodwill and negative goodwill are offset and shown as a net amount.
The amounts before being offset are shown below.
(Unit: Thousands of yen)
Prior Consolidated Fiscal Year(As of October 31, 2011)

Current Consolidated Fiscal Year(As of October 31, 2012)

280,490
121,409

243,967
51,577

159,081

192,389

Goodwill
Negative goodwill
Net amount(Notes to the Consolidated Statements of Income)1. The main expense items included in selling, general and administrative expenses are as follows.
(Unit: Thousands of yen)
Prior Consolidated Fiscal Year
(From November 1, 2010
to October 31, 2011)

Current Consolidated Fiscal Year
(From November 1, 2011
to October 31, 2012)

7,063,829

7,836,635

957,725

862,456

1,809,345

2,041,198

87,445

121,309511,159

636,277

558,660

323,513

19,986

11,174276,210

228,499

Employee salaries and wages
Depreciation and amortization
expense
Rents
Provision of allowance for doubtful
accounts
Provision of accrued bonuses to
employees
Employees retirement benefit
expense
Provision of retirement allowances todirectors and auditors
Amortization of goodwill

2. The breakdown of the gain on sale or retirement of fixed assets is as follows.
(Unit: Thousands of yen)
Prior Consolidated Fiscal Year
(From November 1, 2010
to October 31, 2011)
Buildings and structures
Machinery, equipment,
vehicles and delivery
equipment
Other

Current Consolidated Fiscal Year
(From November 1, 2011
to October 31, 2012)
381－

11,036

11,605－

9,500
Financial Statements Bulletin, FY Ended October 31, 2012
P. 44

Total

11,418,000

Total

21,106

Financial Statements Bulletin, FY Ended October 31, 2012
P. 45

3. The breakdown of the loss on sale or retirement of fixed assets is as follows.
(Unit: Thousands of yen)
Current Consolidated Fiscal Year
(From November 1, 2011
to October 31, 2012)

Prior Consolidated Fiscal Year
(From November 1, 2010
to October 31, 2011)(Loss on sale of fixed assets)
Buildings and structures
Machinery, equipment,
vehicles and delivery
equipment
Land
Other
(Loss on retirement of fixed
assets)Rental equipment
Buildings and structures
Machinery, equipment,
vehicles and delivery
equipment
Other
Total

9,981

1,013

81

155

－
40

89,427
8

83,48235,97364,853
26,429

2,369

2,079

949

1,039

132,878

Total

185,006

4. Impairment loss
Prior Consolidated Fiscal Year (From November 1, 2010 to October 31, 2011)
During this consolidated fiscal year the Kanamoto Group incurred an impairment loss on
the following asset groups.
Location

Use

Asset

Ichihara City, Chiba
Prefecture

Dormant assets

Land

Iiyama City, Nagano
Prefecture

Dormant assets

Land

Asset groupings used by the Kanamoto Group to apply asset impairment accounting are
based on the block classified by the segment and operating area for which profitability canbe determined regularly. Dormant assets are grouped as units that generate independent
cash flow.
For certain dormant assets for which the asset value was less than book value, theCompany reduced book value to the recoverable value, and accounted for the reduction as
an impairment loss (¥63,440) under extraordinary losses. This ¥63,440 was for land.
The recoverable value for this asset group is measured according to net sales price, andthe land is evaluated using the inheritance tax assessment value based on the land tax
assessment value or other amount as a base.
Current Consolidated Fiscal Year (From November 1, 2011 to October 31, 2012)
During this consolidated accounting fiscal year the Kanamoto Group incurred an
impairment loss on the following asset groups.
Location

Use

Asset

Nagara Town, Choseigun, Chiba Prefecture

Plant

Land

Dormant assets

Rental equipment

Shanghai, China

Financial Statements Bulletin, FY Ended October 31, 2012
P. 46

Asset groupings used by the Kanamoto Group to apply asset impairment accounting are
based on the block classified by the segment and operating area for which profitability canbe determined regularly. Dormant assets are grouped as units that generate independent
cash flow.
For certain dormant assets for which the asset value was less than book value, theCompany reduced book value to the recoverable value, and accounted for the reduction as
an impairment loss (¥343,425) under extraordinary losses. This was comprised of¥183,806 for land and ¥159,528 for rental equipment.
The recoverable value for rental equipment is measured according to net sales price,and the recoverable value for land is measured according to its value in use, which is
calculated by discounting future cash flow at a rate of 3.2%.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 47

5. Loss from disaster
Prior Consolidated Fiscal Year (From November 1, 2010 to October 31, 2011)
The Company accounted for the losses incurred as a result of the Great East Japan
Earthquake on March 11, 2011 as a loss from disaster.
At the end of the current consolidated fiscal year, an amount for estimated losses related
to the Great East Japan Earthquake was reported in the allowance for disaster losses, andthe transfer to allowance for disaster losses of ¥289,850 was included in loss from disaster.
The principal amounts are provided below.
(Unit: Thousands of yen)
Cost to restore fixed assets etc. to their
original condition
224,515
Destruction loss of fixed assets etc.
444,118
Other

169,335

Total

837,968(Notes to the Consolidated Statements of Comprehensive Income)Current Consolidated Fiscal Year (From November 1, 2011 to October 31, 2012)
Note: Reclassification adjustments and the related tax effects concerning Other Comprehensive
Income(Unit: Thousands of yen)
Valuation difference on other investment
securities:
Amount occurring during the current period
65,281
Reclassification adjustments
114,940
Before adjustment for tax effects
Tax effects

180,221–47,491

Valuation difference on other investment
securities

132,730

Translation adjustments account:
Amount for the current period–5,893

Total Other Comprehensive Income

126,836(Notes to the Consolidated Statements of Changes in Net Assets)
Prior Consolidated Fiscal Year (From November 1, 2010 to October 31, 2011)
1. Class of shares issued and number of shares, treasury stock and number of shares
Number of shares at the

Increase in number of

Decrease in number of

beginning of the priorshares during the priorshares during the prior

Number of shares at theend of the priorconsolidated fiscal year

consolidated fiscal year

consolidated fiscal year

consolidated fiscal year

(thousands of shares)(thousands of shares)(thousands of shares)(thousands of shares)

Common stock

32,872－－32,872

Total

32,872－－32,872

Common stock (note)

36

1

0

37

Total

36

1

0

37

Number of shares issued

Treasury stock(Notes) 1. The number of treasury stock shares of common stock increased by 1,000 shares throughpurchases of shares comprising less than one investment unit.
2. The number of treasury stock shares of common stock decreased by 0 shares through sales ofshares comprising less than one investment unit.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 48

2. Matters pertaining to subscription rights and treasury stock subscription rights
The Company had no material items to report.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 49

3. Dividends(1) Dividends paid
Resolution
December 27, 2010
Board of Directors
June 8, 2011
Board of Directors

Total dividend

Dividend per(Thousand yen)share (yen)Common stock

328,353

Common stock

328,342Class of stock

Date of record

Payment date

10.00

October 31, 2010

January 28, 2011

10.00

April 30, 2011

July 11, 2011

(2) Dividends for which the date of record falls in the current consolidated fiscal year and thedividend payment date is in the following consolidated fiscal year
Resolution

Class of

Total dividend

Source of funds

Dividend perstock(Thousand yen)for dividend

share (yen)December 27, 2011

CommonBoard of Directors

stock

328,345

Retained

10.00

earnings

Date of record

Payment date

October 31, 2011 January 30, 2012

Current Consolidated Fiscal Year (From November 1, 2011 to October 31, 2012)
1. Class of shares issued and number of shares, treasury stock and number of shares
Number of shares at the

Increase in number of

Decrease in number of

beginning of the priorshares during the priorshares during the prior

Number of shares at theend of the priorconsolidated fiscal year

consolidated fiscal year

consolidated fiscal year

consolidated fiscal year

(thousands of shares)(thousands of shares)(thousands of shares)(thousands of shares)

Common stock

32,872－－32,872

Total

32,872－－32,872

Common stock (note)

37

2

0

39

Total

37

2

0

39

Number of shares issued

Treasury stock(Notes) 1. The number of treasury stock shares of common stock increased by 2,000 shares throughpurchases of shares comprising less than one investment unit.
2. The number of treasury stock shares of common stock decreased by 0 shares through sales ofshares comprising less than one investment unit.

2. Matters pertaining to subscription rights and treasury stock subscription rights
The Company had no material items to report.
3. Dividends(1) Dividends paid
Resolution
December 27, 2011
Board of Directors
June 8, 2012
Board of Directors

Total dividend

Dividend per(Thousand yen)share (yen)Common stock

328,345

Common stock

328,333Class of stock

Date of record

Payment date

10.00

October 31, 2011

January 30, 2012

10.00

April 30, 2012

July 9, 2012

(2) Dividends for which the date of record falls in the current consolidated fiscal year and thedividend payment date is in the following consolidated fiscal year
Resolution

Class of stock

Total dividend

Source of funds

Dividend per(Thousand yen)for dividend

share (yen)Date of record

Payment dateFinancial Statements Bulletin, FY Ended October 31, 2012
P. 50

December 27, 2012
Board of Directors(Planned)

Commonstock

328,322

Retainedearnings

10.00

October 31, 2012 January 30, 2013

(Notes to Consolidated Statements of Cash Flows)
1. Relationship between fiscal year ending balance for cash and equivalents and amounts for items
shown on the fiscal year consolidated balance sheets(Unit: Thousands of yen)
Prior Consolidated
Fiscal Year
(From November 1, 2010
to October 31, 2011)

Current Consolidated
Fiscal Year
(From November 1, 2011
to October 31, 2012)

Cash and deposits accountTime deposit with a maturity longer than 3months
Negotiable securities

20,059,836

19,387,264–35,000–20,000

350,000

350,000

Cash and cash equivalents

20,374,836

19,717,264

2. Principal assets and liabilities of companies that became newly consolidated subsidiaries as aresult of the purchase of their stock during the current consolidated fiscal year
The relationship between the principal assets and liabilities and acquisition price for theshares of Unite Co., Ltd. and the net funds used for the purchase of Unite Co., Ltd. at thestart of consolidation of Unite Co., Ltd. as a result of the acquisition of stock is as follows.
(Unit: Thousands of yen)
Current assets

5,818,226

Fixed assets

6,338,726

Current liabilities–4,780,195

Long-term liabilities–5,142,934

Negative goodwill–671,889

Minority interests–740,504

Acquisition price of Unite Co., Ltd.

821,429

Cash and cash equivalents of Unite Co., Ltd.

–158,651

Balance: Funds used for the purchase ofinvestments in subsidiaries resulting
in change in scope of consolidation

662,777

3. Details of major non-cash transactions(1) Amount of assets and liabilities related to installment transactions and amount of assets
and liabilities related to lease transactions that are newly accounted for(Unit: Thousands of yen)Amount of assets and liabilities related to
installment transactions
Amount of assets and liabilities related to lease

Prior Consolidated
Fiscal Year
(From November 1, 2010
to October 31, 2011)

Current Consolidated
Fiscal Year
(From November 1, 2011
to October 31, 2012)

12,081,313

16,006,786

914,127

1,648,088

Financial Statements Bulletin, FY Ended October 31, 2012
P. 51

transactions
Acquisition of investment securities byinvestments in kind (Note)－

91,891(Note) The Company acquired the stock of KANAMOTO (HK) CO., LTD. (non-consolidated subsidiary), a
subsidiary company.

(2) Amount related to newly accounted for asset retirement obligations(Unit: Thousands of yen)Amount related to asset retirement obligations

Prior Consolidated
Fiscal Year
(From November 1, 2010
to October 31, 2011)

Current Consolidated
Fiscal Year
(From November 1, 2011
to October 31, 2012)

147,078

4,797

Financial Statements Bulletin, FY Ended October 31, 2012
P. 52

(Business Segment Information)a. Segment information
1. Summary of reportable segments
The Company’s reporting segments are those units of the Company for which discrete
financial information is available and for which the Board of Directors regularly conducts areview for the purpose of making decisions about resources to be allocated to the segments
and assess the segments’ performance.
The Company is developing its businesses according to products and services, and has
assumed “business related to the Construction Equipment Rental Division” as its reporting
segment.
The Company’s “business related to the Construction Equipment Rental Division” rents andsells construction equipment and temporary materials for construction use.
2. Method of calculating the amount of revenues, income or loss, assets, liabilities and otheritems of each reporting segment
Except for the Standard for Measurement of Inventories, the accounting standards andmethods for the reported business segment are generally identical to the description in“Significant Accounting Policies for the Consolidated Financial Statements.”
The Company values inventory assets using prices before write-downs of book value basedon decline in profitability.
Reporting segment earnings are the values on an operating income basis.
3. Information concerning the amount of revenues, income or loss, assets, liabilities and otheritems of each reporting segment
Prior Consolidated Fiscal Year (From November 1, 2010 to October 31, 2011)(Unit: Thousands of yen)
Reporting segment
Construction-related

Other businesses(Note)

Total

Revenues
Sales to outside customers

64,711,947

6,374,877

71,086,825

－

－

－

64,711,947

6,374,877

71,086,825

Segment income

2,586,175

143,769

2,729,945

Segment assets

86,651,284

1,944,837

88,596,122

8,524,057

3,460

8,527,518

Amortization of goodwill

206,378－

206,378

Extraordinary losses

63,440－63,440(Impairment loss)(63,440)－(63,440)

16,127,361

781

16,128,142

Sales or transfers between
related segments
Total

Other items
Depreciation and amortization
expenseAmount of increase of tangible
fixed assets and intangible
fixed assets

Financial Statements Bulletin, FY Ended October 31, 2012
P. 53

(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 and other businesses.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 54

Current Consolidated Fiscal Year (From November 1, 2011 to October 31, 2012)(Unit: Thousands of yen)
Reporting segment
Construction-related

Other businesses(Note)

Total

Revenues
Sales to outside customers

79,280,857

6,826,012

86,106,869

－

－

－

79,280,857

6,826,012

86,106,869

Segment income

6,117,945

143,144

6,261,090

Segment assets

110,039,775

1,976,698

112,016,473

10,802,312

2,446

10,804,759

Amortization of goodwill

158,667－

158,667

Extraordinary losses

343,425－

343,425(Impairment loss)(343,425)(－)(343,425)

20,979,162

800

20,979,962

Sales or transfers between
related segments
Total

Other items
Depreciation and amortization
expenseAmount of increase of tangible
fixed assets and intangible
fixed 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 and other businesses.
4. Difference between total reporting segment amount and the amount reported in theConsolidated Statements of Income, and the main reasons for the difference (Matters
Pertaining to Reconciliation of Difference)(Unit: Thousands of yen)
Current Consolidated
Prior Consolidated
Revenues
Fiscal Year
Fiscal Year

Reporting segment total

64,711,947

79,280,857

Revenues for “Other businesses” classification

6,374,877

6,826,012

Revenues reported in the consolidated financial
statements

71,086,825

86,106,869

IncomeReporting segment total

Prior Consolidated
Fiscal Year

(Unit: Thousands of yen)
Current Consolidated
Fiscal Year2,586,175

6,117,945

Income for “Other businesses” classification

143,769

143,144

Other adjustments

175,645

169,095

2,905,590

6,430,186

Operating income reported in the consolidated
financial statements

Financial Statements Bulletin, FY Ended October 31, 2012
P. 55

Financial Statements Bulletin, FY Ended October 31, 2012
P. 56

(Unit: Thousands of yen)
Current Consolidated
Fiscal Year

Prior Consolidated
Fiscal Year

AssetsReporting segment total

86,651,284

110,039,775

Assets of “Other businesses” classification

1,944,837

1,976,698

Company assets (Note)

26,524,175

25,326,608

Total assets reported in the consolidated financial
statements

115,120,298

137,343,082(Note) Company assets are mainly assets used in administrative divisions at the parent company that are not
attributable to the reporting segment.
(Unit: Thousands of yen)
Other items

Reporting segment total

Other businesses

Adjustment

Amount reported in the
consolidated financial
statements

Current
Prior
Current
Prior
Prior
Current
Current
Prior
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 andamortization expense

8,524,057

10,802,312

3,460

2,446

307,941

266,386

8,835,460

11,071,145

16,127,361

20,979,162

781

800

39,45957,787

16,167,601

21,037,750

Increase in tangible
fixed assets andintangible fixed assets(Note) The adjustments to the increases in tangible fixed assets and intangible fixed assets are capital investments
related to administrative divisions.

b. Related information
Prior Consolidated Fiscal Year (From November 1, 2010 to October 31, 2011)
1. Information by product and service
The Company has omitted a description of information by product and service because thissame information is disclosed in segment information.
2. Information by region(1) Revenues
The Company has omitted a description of information by region because revenues tooutside customers in Japan account for more than 90% of total revenues reported in theConsolidated Statements of Income.
(2) Tangible fixed assets
The Company has omitted a description of tangible fixed assets because the amount oftangible fixed assets located in Japan account for more than 90% of the total for tangible
fixed assets reported in the Consolidated Balance Sheets.
3. Main customers
The Company has omitted a description of sales to outside customers because there areno specific customers to which sales account for more than 10% of the revenues reported in
the Consolidated Statements of Income.
Current Consolidated Fiscal Year (From November 1, 2011 to October 31, 2012)
1. Information by product and service

Financial Statements Bulletin, FY Ended October 31, 2012
P. 57

The Company has omitted a description of information by product and service because thissame information is disclosed in segment information.

2. Information by region(1) Revenues
The Company has omitted a description of information by region because revenues tooutside customers in Japan account for more than 90% of total revenues reported in theConsolidated Statements of Income.
(2) Tangible fixed assets
The Company has omitted a description of tangible fixed assets because the amount oftangible fixed assets located in Japan account for more than 90% of the total for tangible
fixed assets reported in the Consolidated Balance Sheets.
3. Main customers
The Company has omitted a description of sales to outside customers because there areno specific customers to which sales account for more than 10% of the revenues reported in
the Consolidated Statements of Income.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 58

c. Information concerning impairment losses on fixed assets by reporting segment
Prior Consolidated Fiscal Year (From November 1, 2010 to October 31, 2011)(Unit: Thousands of yen)
Business related to
the Construction
Equipment Rental
Division
Impairment losses

Corporate andeliminations

Others63,440－Total

63,440－Current Consolidated Fiscal Year (From November 1, 2011 to October 31, 2012)(Unit: Thousands of yen)
Business related to
the Construction
Equipment Rental
Division
Impairment losses

Corporate andeliminations

Others343,425－

Total

343,425－d. Information concerning amortization of goodwill and unamortized balances by reporting
segment
Prior Consolidated Fiscal Year (From November 1, 2010 to October 31, 2011)(Unit: Thousands of yen)
Business related to
the Construction
Equipment Rental
Division

Corporate andeliminations

OthersTotal

Amortization in thecurrent period

276,210－－276,210–69,831－－–69,831

159,081－－

159,081(Goodwill)
Amortization in thecurrent period(Negative goodwill)
Balance at the endof the period (note)(Note) Goodwill and negative goodwill are offset and reported as a net amount.
Current Consolidated Fiscal Year (From November 1, 2011 to October 31, 2012)(Unit: Thousands of yen)
Business related to
the Construction
Equipment Rental
Division

Corporate andeliminations

OthersTotal

Amortization in thecurrent period

228,499－－

228,499–69,831－－–69,831

192,389－－

192,389(Goodwill)
Amortization in thecurrent period(Negative goodwill)
Balance at the endof the period (note)(Note) Goodwill and negative goodwill are offset and reported as a net amount.
e. Information concerning gain on negative goodwill by reporting segment
Prior Consolidated Fiscal Year (From November 1, 2010 to October 31, 2011)
The Company had no material items to report.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 59

Current Consolidated Fiscal Year (From November 1, 2011 to October 31, 2012)
In the “Business related to the Construction Equipment Rental Division” segment, theCompany reported a gain on negative goodwill of ¥671,889 in extraordinary profits as a resultof including Unite Co., Ltd., which was newly acquired in the current consolidated fiscal year,
in the scope of consolidation.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 60

(Notes to Leasing Transactions)(Lessor)
1. Finance lease transactions
Finance lease transactions except for leases that transfer ownership of the propertya) Lease assets
Tangible fixed assets
Construction-related business rental equipment and other tangible fixed assets.
b) Method of depreciation for lease assets
Lease assets are depreciated according to the method described in “4. Accounting
principles and standards used for normal accounting treatment (2) Depreciation methods
for principal depreciable assets” in (6) Basis of Preparation of the Consolidated Financial
Statements.
The Company accounts for finance lease transactions except for leases that transfer
ownership of the property for which the lease start date is before October 31, 2008 by
applying accounting treatment based on the method applied for ordinary rental
transactions. Details are provided below.
(1) Amounts corresponding to lease property acquisition price, accumulated depreciationand outstanding balances at the end of the fiscal year
(Unit: Thousands of yen)
Prior Consolidated Fiscal Year (As of October 31, 2011)
Acquisition price
Rental assets
Total

Accumulated
depreciation

Outstanding balance

14,861,842

8,956,252

5,905,589

14,861,842

8,956,252

5,905,589(Unit: Thousands of yen)

Current Consolidated Fiscal Year (As of October 31, 2012)
Acquisition price
Rental assets
Total

Accumulated
depreciation

Outstanding balance

11,151,866

7,752,820

3,399,046

11,151,866

7,752,820

3,399,046(2) Outstanding balance of future lease payments at the end of the consolidated fiscal year
(Unit: Thousands of yen)
Prior Consolidated Fiscal Year(As of October 31, 2011)

Current Consolidated Fiscal Year(As of October 31, 2012)

Outstanding balance of futurelease payments at the end of theconsolidated fiscal year
Within one

2,560,414

2,254,473

After one year

3,713,623

1,366,655

6,274,037

3,621,129

Total

Financial Statements Bulletin, FY Ended October 31, 2012
P. 61

(3) Amount of lease payments, depreciation expense and interest expense(Unit: Thousands of yen)
Prior Consolidated Fiscal Year
(From November 1, 2010
to October 31, 2011)

Current Consolidated Fiscal Year
(From November 1, 2011
to October 31, 2012)

Lease payments

2,940,717

2,267,461

Depreciation expense

2,253,747

1,739,125

219,405

154,747

Interest expense

Financial Statements Bulletin, FY Ended October 31, 2012
P. 62

(4) Accounting method for amount equivalent to depreciation expense
Straight-line depreciation using the lease term as the depreciable life and zero residual
value.
(5) Accounting method for amount equivalent to interest expense
Interest method using the difference between total lease payments and the acquisition
price of the lease property, allocated to each year.
2. Operating leases
Prepaid lease payments pertaining to non-cancellable operating lease transactions(Unit: Thousands of yen)
Prior consolidated fiscal year
(As of October 31, 2011)

Current consolidated fiscal year
(As of October 31, 2012)

Within one year

1,978,904

2,174,968

After one year

5,390,811

6,416,052

7,369,716

8,591,020

Total(Notes to Business Combinations Etc.)
Current Consolidated Fiscal Year (From November 1, 2011 to October 31, 2012)(Transactions under common control etc.)
Kanamoto absorbed and merged with SRG Kanamoto Co., Ltd., a consolidated subsidiary, on
November 1, 2011, based on the absorption and merger agreement approved by a resolution of
the Company’s Board of Directors at its meeting on August 30, 2011.
1. Summary of the transaction(1) Names and businesses of the companies completing the business combination
Surviving company

Extinguished company

Name

Kanamoto Co., Ltd.

SRG Kanamoto Co., Ltd

Business

Rental and sale of construction
equipment

Rental and sales of temporary
scaffolding materials(2) Business combination dateNovember 1, 2011
(3) Legal form of the business combination
An absorption-type merger, with Kanamoto Co., Ltd. as the surviving company and SRG
Kanamoto Co., Ltd. as the extinguished company.
(4) Name of the combined entity
Kanamoto Co., Ltd.
(5) Other matters related to the transaction
The merger was undertaken to create an organization capable of responding flexibly andappropriately to rental demand for temporary scaffolding materials.
2. Summary of accounting treatment
The Company accounted for the merger as a transaction under common control based on
the Accounting Standard for Business Combinations (Accounting Standards Board of Japan
Statement No. 21, December 26, 2008) and the Guidance on Accounting Standard forBusiness Combinations and Accounting Standard for Business Divestitures (AccountingStandards Board of Japan Implementation Guidance No. 10, December 26, 2008).
(Business combination through acquisition)
Financial Statements Bulletin, FY Ended October 31, 2012
P. 63

1. Summary of the business combination(1) Name of the acquired company and its business
Name of the acquired company Unite Co., Ltd.
Business
Road construction equipment rental business, road construction business(2) Main reasons for the business combination
Kanamoto acquired the shares of Unite Co., Ltd., based on a resolution of the Board of
Directors meeting held on June 8, 2012, to expand the business areas of the Company,
which seeks to be an integrated construction equipment rental operating company.
(3) Date of business combination
June 28, 2012

Financial Statements Bulletin, FY Ended October 31, 2012
P. 64

(4) Legal form of the business combination
Acquisition of shares for cash(5) Name of the company after the combination
The Company’s name is unchanged.
(6) Percentage share of voting rights acquired
66.9%(7) Main reason for the decision to acquire the company
Kanamoto resolved to acquire the company to acquire 66.9% of the voting rights of
Unite Co., Ltd. through an acquisition of shares for cash.
2. Period of the acquired company's fiscal year included in the consolidated financial statements
From July 1, 2012 to October 31, 2012
3. Details of the acquisition cost of the acquired company(Unit: Thousands of yen)
Acquisition consideration

Cash and deposits

815,490

Costs directly related to theacquisition

Advisory costs etc.

5,939

Acquisition cost

821,429

4. Amount of gain on negative goodwill and reasons for recognizing a gain
(1) Amount of gain on negative goodwill¥671,889(2) Reason for recognition
Because the market value of net assets exceeded the acquisition price at the time of
the business combination, the Company reported the difference in extraordinary profits
as a gain on negative goodwill.
5. Amounts of assets and liabilities acquired on the business combination date
(Unit: Thousands of yen)
Current assets

5,818,226

Fixed assets

6,338,726

Total Assets

12,156,953

Current liabilities

4,780,195

Long-term liabilities

5,142,934

Total liabilities

9,923,130

6. Approximate amounts and their calculation method of impact on the Consolidated Statementof Income for the current consolidated fiscal year, assuming the business combination wascompleted on the first day of the current consolidated fiscal year
(Unit: Thousands of yen)
Revenues

9,331,242

Operating income

367,817

Ordinary income

305,222

Income before taxes
and adjustments

283,650

Financial Statements Bulletin, FY Ended October 31, 2012
P. 65

Net income

155,585(Calculation method of the approximate amounts)
The effect of the approximate amounts is calculated as the difference between the revenues
and profit and loss information that has been calculated by assuming the business combination
was completed on the first day of the consolidated fiscal year, and the revenues and profit andloss information reported in the consolidated statement of income of the acquiring company.
A certification of audit has not been received for this note.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 66

(Per Share Information)
Prior Consolidated Fiscal Year
(From November 1, 2010 to October 31, 2011)

Current Consolidated Fiscal Year
(From November 1, 2011 to October 31, 2012)

Net assets per share

Net assets per share¥1,129.47

Net income per share of common¥35.51stock
Net income per share of common
stock after adjustment for－potential ordinary shares
The Company has not reported net income pershare of common stock after adjustment forpotential ordinary shares because it does not haveany potential shares that would have a dilution
effect.

¥1,221.56

Net income per share of common
stock
Net income per share of common
stock after adjustment forpotential ordinary shares
Same as at left

¥108.88－(Note) The basis for calculating consolidated fiscal year earnings per share or net loss per share is asfollows.
(Unit: Thousands of yen)
Prior Consolidated Fiscal Year
(From November 1, 2010
to October 31, 2011)
Net income amountCurrent Consolidated Fiscal Year
(From November 1, 2011
to October 31, 2012)

1,165,821

3,575,054－－

Net income related to common
stock1,165,821

3,575,054

Average number of outstanding
shares during the fiscal year

32,834,328

32,833,928

Amount not attributed to common
stock shareholders(Material Events after the Close of the Consolidated Fiscal Year)
The Company had no material items to report.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 67

5. Company Financial Statements(1) Balance Sheets(Unit: Thousands of yen)
Prior Fiscal Year(As of October 31, 2011)

Current Fiscal Year(As of October 31, 2012)

17,761,176
2,225,810
11,539,603
350,000
261,074
33,2991,331,441
85,836208,042354,664
88,344474,360
168,155–221,500

15,947,592
2,615,496
12,960,369
350,000
225,383
53,1872,578,013
104,833
213,731487,773－
350,360
198,495

34,660,310

35,883,635

58,591,293–33,436,965

70,174,214–38,548,745

Net rental equipment

25,154,327

31,625,469

Buildings
Accumulated depreciation

14,584,949–8,662,259

14,779,861–9,183,580(Assets)
Current assets
Cash and deposits
Notes receivable, trade
Accounts receivable, trade
Negotiable securities
Merchandise inventories and products
Work in process
Construction equipment
Raw materials and supplies
Prepaid expenses
Deferred tax assets
Consumption taxes receivable
Short-term loans receivable
Other
Allowance for doubtful accounts
Total Current Assets
Fixed assets
Tangible fixed assets
Rental equipment
Accumulated depreciation

Net buildings
Structures
Accumulated depreciation
Net structures
Machinery and equipment
Accumulated depreciation
Net machinery and equipment–201,599

5,922,690

5,596,281

4,840,169–3,897,884

4,923,789–4,048,001

942,284875,788

4,654,461–4,071,130

4,734,717–4,214,300

583,331

520,417

Vehicle and delivery equipment
Accumulated depreciation

68,467–64,80282,280–71,716

Net vehicles and delivery
equipment

3,664

10,564Tools, furniture and fixtures
Accumulated depreciation

1,211,811–1,008,597

1,252,156–1,056,129

203,213

196,026

Land
Construction in progress

28,651,057
2,131

28,682,214
21,872

Total Tangible Fixed Assets

61,462,702

67,528,634

90,981
145,584
50,76955,43893,49852,005

Net tools, furniture and fixtures

Intangible fixed assets
Goodwill
SoftwareTelephone subscription rights

Financial Statements Bulletin, FY Ended October 31, 2012
P. 68

Total Intangible Fixed Assets

287,335

200,942

Financial Statements Bulletin, FY Ended October 31, 2012
P. 69

(Unit: Thousands of yen)
Prior Fiscal Year(As of October 31, 2011)

Current Fiscal Year(As of October 31, 2012)

2,933,002
3,461,685
9,137
2,394,475

2,864,881
4,569,669
12,1372,450,758

125,593

135,540

28,718450,600
17,52824,176
513,424
19,877

837,810

836,905

Other
Allowance for doubtful accounts
Reserve for investment losses

52,966–1,587,929–554,617

52,596–1,822,673–898,193

Total Investments and Other Assets

8,168,972

8,759,100

Investments and other assets
Investment securities
Stock of affiliated companies
Advances
Long-term loan to affiliated company
Claims in bankruptcy, claims inreorganization and other similar
claimsLong-term prepaid expenses
Deferred tax assets
Insurance reserve
Long-term guaranty money
deposited

69,919,010

76,488,677

104,579,320

112,372,313

9,114,892
2,699,853

10,421,466
3,115,016

9,411,000

10,647,500

Short-term bank loans
Accounts payable, otherAccrued expenses
Corporate taxes payable
Consumption and other taxes payable
Deposits
Accrued bonuses to employees
Allowance for disaster losses
Equipment notes payable
Other

10,000,000
6,345,435
353,981286,603－45,464443,024
289,850
291,603107,337－
7,342,038
412,228
2,107,652
190,791
147,405
488,671
10,014426,934
104,190

Total Current Liabilities

39,389,046

35,413,909

15,648,000
11,282,279
30,377

20,575,500
16,303,599－

158,061－

36,312
123,472－
126,734

27,278,503

37,005,833

66,667,549

72,419,742

Total Fixed Assets
Total Assets(Liabilities)
Current liabilities
Notes payable, trade
Accounts payable, tradeLong-term bank loans due within one
year

Long-term liabilities
Long-term bank loans
Long-term accrued expenses
Accrued employees retirement benefits
Retirement allowances to directors andauditors
Provision for loss on guarantees
Asset retirement obligations
Total Long-term Liabilities
Total Liabilities

Financial Statements Bulletin, FY Ended October 31, 2012
P. 70

Financial Statements Bulletin, FY Ended October 31, 2012
P. 71

(Unit: Thousands of yen)
Prior Fiscal Year(As of October 31, 2011)

Current Fiscal Year(As of October 31, 2012)(Net Assets)
Shareholders’ equity
Capital stock
Capital surplus
Capital legal reserve
Other capital surplus

9,696,717

9,696,717

10,817,389
143,359

10,817,389
143,371

Total capital surplus

10,960,749

10,960,761

1,375,287

1,375,287

19,601

19,601

13,731,684

13,731,684

1,953,137

3,859,862

17,079,711

18,986,436

Retained earnings
Earned legal reserve
Other retained earnings
Reserve for advanced
depreciation of fixed assets
General reserve
Retained earnings brought
forward
Total retained earnings
Treasury stock
Total Owners’ Equity
Valuation and translation adjustments
Valuation difference on otherinvestment securities
Total valuation and translation
adjustments
Total Net Assets
Total Liabilities and Net Assets–25,240–27,523

37,711,937

39,616,391

199,832

336,179

199,832

336,179

37,911,770

39,952,570

104,579,320

112,372,313

Financial Statements Bulletin, FY Ended October 31, 2012
P. 72

(2) Statements of Income
Prior Fiscal Year
(From November 1, 2010
to October 31, 2011)(Unit: Thousands of yen)
Current Fiscal Year
(From November 1, 2011
to October 31, 2012)

Rental revenues
Sales

43,790,202
17,116,709

51,129,560
17,962,161

Total operating revenues

60,906,911

69,091,722

Cost of rental revenues
Cost of goods sold
Balance of merchandise inventory at
beginning of period

30,947,887

34,678,520

303,056

261,074

Merchandise inventory purchases
Merchandise received from otheraccounts

13,007,087

13,868,447

274,660

212,624

Total

13,584,803

14,342,145

268,535

225,383

7,460

2,435

Cost of goods sold

13,323,728

14,119,198

Total cost of revenues

44,271,616

48,797,718

16,635,295

20,294,003

Freight-out
Vehicle fuel expense
Advertising and public relations expense
Provision of allowance for doubtful
accounts

75,977167,254
120,353

75,660184,936
134,087

20,99565,694

Director compensation
Salaries and allowance
Bonuses
Transfer to accrued bonuses to employees
Transfer to retirement allowances todirectors and auditors

71,9935,580,477
1,049,765
443,024

85,342
5,942,930
1,251,186
488,671

12,777

10,960

Employees retirement benefit expense
Travel and transportation expenses

497,038
281,883

Insurance premiums
Communications expense
Maintenance and repairs
Consumables expense
Utilities
Taxes and public charges
Welfare expense
Depreciation and amortization expense
Rent
Other

165,993
264,066
115,721279,788
246,910
397,899
1,017,618
811,854
1,487,997
706,632

242,921372,310173,246
271,859
128,235
336,252
266,027
408,675
1,129,981
739,770
1,540,415
769,425

Selling, general and administrative
expenses total

13,816,023

14,618,589

Operating revenues

Cost of revenues

Balance of merchandise at end of
periodValuation loss on merchandise
inventories

Gross profit
Selling, general and administrative expenses

Financial Statements Bulletin, FY Ended October 31, 2012
P. 73

Operating income

2,819,272

5,675,414

Financial Statements Bulletin, FY Ended October 31, 2012
P. 74

Prior Fiscal Year
(From November 1, 2010
to October 31, 2011)(Unit: Thousands of yen)
Current Fiscal Year
(From November 1, 2011
to October 31, 2012)

Interest revenue
Interest revenue on negotiable securities
Dividend income
Rents received
Insurance benefits
Cash bonus received
Reversal of allowance for disaster losses
Other33,813907
50,868
174,595
32,431
5,499－
114,200

26,202712
84,041
163,830
35,67523,256
101,483
222,256

Total non-operating revenues

412,316

657,459

Interest expense
Loss on sale of notes receivable
Provision of allowance for doubtful
accounts
Provision of allowance for investment
losses449,770
39,445

430,70743,429－225,123－

686,771

Other

143,387

120,936

Total non-operating expenses

632,6031,506,968

2,598,985

4,825,904

11,022
52
－

334
115
142,538

30,461－

1,465,200

－

5,709

17,5471,512,445

160,536

75,277
17,001
133,922

108,571
115,825
30

1,234

－

73,755－75,982－

837,886－

83,021－58,533－

1,356,615

224,4282,754,814

4,762,012

Non-operating revenues

Non-operating expenses

Ordinary income
Extraordinary profits
Gain on sale of fixed assets
Gain on sale of investment securities
Subsidies
Reversal of provision for loss on
guarantees
Gain on termination of retirement benefit
plan
Other
Total extraordinary profits
Extraordinary losses
Loss on sale or retirement of fixed assets
Loss on sale of investment securities
Valuation loss on investment securities
Loss on investment in partnershipenterprise
Provision of allowance for investment
lossesTransfer to allowance for doubtful
accounts of affiliated companies
Loss from disaster
Loss on adjustment for changes ofaccounting standard for asset retirement
obligations
Other
Total extraordinary losses
Income before taxes and adjustments

Financial Statements Bulletin, FY Ended October 31, 2012
P. 75

Corporate, local and business taxes
Adjustment for corporate and other taxes

777,763543,685

2,442,503–243,894

Total corporate and other taxes

1,321,448

2,198,609

Net income

1,433,366

2,563,403

Financial Statements Bulletin, FY Ended October 31, 2012
P. 76

Statements of Cost of Rental Revenues
Current Fiscal Year
(From November 1, 2011
to October 31, 2012)

Prior Fiscal Year
(From November 1, 2010
to October 31, 2011)
Amount(Thousands of yen)

Percent

Amount(Thousands of yen)

Percent

Rent

13,755,193

44.5

15,203,293

43.8

Repair expense

2,981,259

9.6

3,620,567

10.4

Freight charges

5,323,138

17.2

5,842,390

16.9

6,387,806

20.6

7,698,663

22.2

1,132,761

3.7

728,966

2.1

1,367,728

4.4

1,584,639

4.6

30,947,887

100.0

34,678,520

100.0Classification

Depreciation expense

Notes

2

Consumables expense
Other costs
Total

3

Note 1

Cost of rental revenues is the direct cost
incurred to receive revenues from the rentalof construction equipment and other goods.

Same as at left

Note 2The Company posted rental equipment asset
depreciation expense of ¥6,288,687,000 andconstruction equipment depreciation expenseof ¥99,118,000.

The Company posted rental equipment asset
depreciation expense of ¥7,469,367,000 andconstruction equipment depreciation expenseof ¥229,296,000.

Note 3

Other costs consisted mainly of taxes andpublic charges of ¥534,530,000, insurance
premiums of ¥535,540,000 and interest of¥112,641,000 related to installment payment
purchases of rental equipment assets.

Other costs consisted mainly of taxes andpublic charges of ¥588,553,000, insurance
premiums of ¥584,089,000 and interest of¥147,880,000 related to installment payment
purchases of rental equipment assets.

Financial Statements Bulletin, FY Ended October 31, 2012
P. 77

(3) Statements of Changes in Net Assets
Prior Fiscal Year
(From November 1, 2010
to October 31, 2011)(Unit: Thousands of yen)
Current Fiscal Year
(From November 1, 2011
to October 31, 2012)

9,696,717

9,696,717－－

9,696,717

9,696,717

10,817,389

10,817,389－－

10,817,389

10,817,389

143,480

143,359

–120

11

–120

11

143,359

143,371

10,960,869

10,960,749

–120

11

–120

11

10,960,749

10,960,761

1,375,287

1,375,287－－

1,375,287

1,375,287

19,601

19,601－－

19,601

19,601

13,731,684

13,731,684

Shareholders’ equity
Capital stock
Balance at beginning of year
Change of items during the year
Total changes of items during theyear
Balance at end of year
Capital surplus
Capital legal reserve
Balance at beginning of year
Change of items during the year
Total changes of items during theyear
Balance at end of year
Other capital surplus
Balance at beginning of year
Change of items during the year
Disposal of treasury stock
Total changes of items during theyear
Balance at end of year
Total capital surplus
Balance at beginning of year
Change of items during the year
Disposal of treasury stock
Total changes of items during theyear
Balance at end of year
Retained earnings
Earned legal reserve
Balance at beginning of year
Change of items during the year
Total changes of items during theyear
Balance at end of year
Other retained earnings
Reserve for advanced depreciation of
fixed assets
Balance at beginning of year
Change of items during the year
Total changes of items during
the year
Balance at end of year
General reserve
Balance at beginning of year
Change of items during the year

Financial Statements Bulletin, FY Ended October 31, 2012
P. 78

Total changes of items during
the year
Balance at end of year－－

13,731,684

13,731,684

Financial Statements Bulletin, FY Ended October 31, 2012
P. 79

Prior Fiscal Year
(From November 1, 2010
to October 31, 2011)(Unit: Thousands of yen)
Current Fiscal Year
(From November 1, 2011
to October 31, 2012)

1,176,466

1,953,137–656,695
1,433,366–656,678
2,563,403

776,670

1,906,725

1,953,137

3,859,862

16,303,040

17,079,711–656,695
1,433,366–656,678
2,563,403

776,670

1,906,725

17,079,711

18,986,436–24,963–25,240–848
571–2,569285–277–2,283–25,240–27,523

36,935,664

37,711,937–656,695
1,433,366–848
450–656,678
2,563,403–2,569297

776,272

1,904,453

37,711,937

39,616,391

Retained earnings brought forward
Balance at beginning of year
Change of items during the year
Dividends from surplus
Net income
Total changes of items during
the year
Balance at end of year
Total retained earnings
Balance at beginning of year
Change of items during the year
Dividends from surplus
Net income
Total changes of items during theyear
Balance at end of year
Treasury stock
Balance at beginning of year
Change of items during the year
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during theyear
Balance at end of year
Total Shareholders’ Equity
Balance at beginning of year
Change of items during the year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during theyear
Balance at end of year

Financial Statements Bulletin, FY Ended October 31, 2012
P. 80

Prior Fiscal Year
(From November 1, 2010
to October 31, 2011)(Unit: Thousands of yen)
Current Fiscal Year
(From November 1, 2011
to October 31, 2012)

154,004

199,832

45,828136,346

45,828136,346

199,832

336,179

154,004

199,832

Net changes of items other thanshareholders’ equity

45,828136,346

Total changes of items during theyear

45,828136,346

199,832

336,179

37,089,669

37,911,770–656,695
1,433,366–848
450–656,678
2,563,403–2,569297

45,828136,346

822,101

2,040,800

37,911,770

39,952,570

Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Balance at beginning of year
Change of items during the year
Net changes of items other thanshareholders’ equity
Total changes of items during theyear
Balance at end of year
Total valuation and translation
adjustments
Balance at beginning of year
Change of items during the year

Balance at end of year
Total net assets
Balance at beginning of year
Change of items during the year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other thanshareholders’ equity
Total changes of items during the year
Balance at end of year

Financial Statements Bulletin, FY Ended October 31, 2012
P. 81

6. Other(1) Changes to Directors
a. Changes to representative directors
There are no pertinent items.
b. Changes to other directors
・New candidate for director
Director Yasuyuki Ijiri (currently Executive Officer and Head of District Sales, Domestic Sales
Administrative Headquarters at ORIX Corporation)
・Director scheduled to retire
Director Katsutoshi Kadowakic. Planned date of new appointments and retirements
January 29, 2013

Financial Statements Bulletin, FY Ended October 31, 2012
P. 82