Nine-month Consolidated Financial Report for the Fiscal Year ending
October 31, 2020 [Japan GAAP]
September 4, 2020
Listed Company Name
Company Code Number

Kanamoto Co., Ltd.
9678

Listing Exchanges

Tokyo Stock Exchange, Sapporo Stock Exchange

URL
Representative

https://www.kanamoto.co.jp
Tetsuo Kanamoto
President and CEO

Inquiries

Hiroyuki Isono

Director and Corporate Officer, Division
Manager, Accounting Division
TEL 81-11-209-1600

Scheduled date for submission of Quarterly Report

September 11, 2020

Scheduled date for commencement of dividend payments–

Preparation of Quarterly Settlement Supplementary Explanatory Materials

No

Quarterly Earnings Briefings

No(Numbers less than one million yen have been rounded down)

1. Consolidated Operating Results for the Nine-Month Period of the Fiscal Year Ending October 31, 2020
(November 1, 2019 – July 31, 2020)(1) Consolidated Operating Results (Cumulative)(Percentages show the change from the prior year)
Profit Attributable to
Net Sales
Operating Profit
Ordinary Profit
Owners of Parent
Millions of yen%

Fiscal Year ending October 31,
132,961−0.6
2020: Third quarter
Fiscal Year ended October 31,
133,823
7.0
2019: Third quarter(Note) Comprehensive income (millions of yen)
Fiscal Year Ending October 31, 2020, Third Quarter
Fiscal Year Ended October 31, 2019, Third Quarter
Net Income per
Share
Fiscal Year ending October 31,
2020: Third quarter
Fiscal Year ended October 31,
2019: Third quarter

Millions of yen%

Millions of yen%

Millions of yen%

10,658−19.4

10,459

−23.0

6,143

−28.1

13,229−1.4

13,580

−0.6

8,550

3.6

6,096 (−29.7%)
8,671 (−0.3%)
Net Income per
Share on a Fully
Diluted Basis

Yen

Yen

160.09－220.97－(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Fiscal Year ending October 31,
279,582
123,3482020: Third quarter
Fiscal Year ended October 31,
268,182
121,7792019(Reference) Equity (millions of yen)
Fiscal Year Ending October 31, 2020 Third Quarter 116,471
Fiscal Year Ended October 31, 2019
115,507－

1 －Equity Ratio
%

41.7
43.1

2. Dividends
Annual Dividends per Share
End of second End of third
Year-endquarterquarter

End of firstquarter
Fiscal year ended October 31, 2019
Fiscal year ending October 31, 2020
Fiscal Year ending October 31, 2020
(Projected)

Full-year

Yen

Yen

Yen

Yen

Yen

－
－

25.00
25.00

－
－

40.00

65.00

40.00

65.00

(Note) Has the Company revised its most recently released dividend projection?

No

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 2020
(November 1, 2019 – October 31, 2020)(Percentages show the change from the prior year)

Net Sales

Full year

Operating Profit

Ordinary Profit

Profit Attributableto Owners of
ParentNet Income per
ShareMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

177,900−1.5

13,700−23.2

13,600

−25.6

8,000

−30.0

208.46(Note) Has the Company revised its most recently released projected consolidated operating results during the quarter?
Yes
For the revisions to projected consolidated operating results, please refer to the press release “Notification
Concerning Revision of Projected Operating Results for the Business Period Ending October 2020” issued today(September 4, 2020).

－

2 －4. Notes(1) Changes in material subsidiaries during the period under review (Changes in specific subsidiaries in conjunction witha change in the scope of consolidation): No
Company newly included (Company name)─
Company newly excluded (Company name)─(2) Application of special accounting method in the preparation of quarterly consolidated financial statements:

No(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements(a) Changes in accounting policy in conjunction with revision of accounting standards:
No(b) Changes other than the above:Yes(c) Changes in accounting estimates:(d) Retrospective restatements:

Yes

No

(Note) These changes fall under Article 10-5 of the Regulation on the Terminology, Forms, and Preparation Methodsof Quarterly Consolidated Financial Statements. For details please refer to “2. Quarterly Consolidated
Financial Statements and Notes (3) Notes Concerning Quarterly Consolidated Financial Statements (Change
in Accounting Policy)” on p. 12 of the Attachments.
(4) Number of shares issued (common shares)(a) Number of shares outstanding at the end of the period (including treasury shares)
Fiscal year ending October 31, 2020 Third Quarter:
38,742,241 sharesFiscal year ended October 31, 2019:
38,742,241 shares(b) Number of shares of treasury stock at the end of the period
Fiscal year ending October 31, 2020 Third Quarter:
939,142 sharesFiscal year ended October 31, 2019:
3,259 shares(c) Average number of shares during the period (consolidated year-to-date)Fiscal year ending October 31, 2020 Third Quarter:
38,377,113 sharesFiscal year ended October 31, 2019 Third Quarter:
38,695,084 shares

Note: Quarterly earnings reports are not subject to quarterly review by certified public accountants or independent accountauditors.
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 be reasonable. The Company
does not guarantee the achievement of the projections. Actual operating results may differ substantially due to a numberof factors. Please refer to “1. Qualitative Information Concerning Quarterly Consolidated Operating Results (3)Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results” on Page 7 of the
Attachments for the conditions used as assumptions for the projected operating results and matters to note before using
the projected operating results.

－

3 －〇Attachments Table of Contents
1. Qualitative Information Concerning Quarterly Consolidated Operating Results ……………………………………

5(1) Qualitative Information Concerning Consolidated Operating Results ……………………………………………

5(2) Qualitative Information Concerning Consolidated Financial Position ……………………………………………

7(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results ……………

7

2. Quarterly Consolidated Financial Statements and Notes …………………………………………………………….

8(1) Quarterly Consolidated Balance Sheets ……………………………………………………………………………
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income …………………………………………………………………………………………………………………
Quarterly Consolidated Statements of Income

8

Consolidated Nine-month Period ended July 31 ………………………………………………………………

10
10

Quarterly Consolidated Statements of Comprehensive Income
Consolidated Nine-month Period ended July 31 ………………………………………………………………

11(3) Notes Concerning Quarterly Consolidated Financial Statements ……………………………………………….

12(Notes Relating to the Going Concern Assumption) …………………………………………………………….

12(Note on Significant Changes to Shareholders’ Equity) …………………………………………………………

12(Change in Accounting Policy) ……………………………………………………………………………………..

12(Business Segment Information) …………………………………………………………………………………..

13(Material Events After the Reporting Period) ……………………………………………………………………..

15

－

4 －

1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results
During the first nine months of Kanamoto’s current consolidated fiscal year, Japan’s economy continued to faceharsh conditions and an uncertain outlook, including a decline in corporate earnings and deterioration of theemployment environment, as economic activity was severely constrained by the spread of COVID-19 coronavirus
infections. Although expected to recover as various government policies take effect, substantial concerns about asecond wave of infections remain, together with a general sense of economic uncertainty, and overall
circumstances continue to be unpredictable.
In the construction industry related to the Kanamoto Group, public works expenditures centered on disasterrecovery and infrastructure maintenance and repair works remain steady, but there are concerns about cutbacks
in private sector construction investment because of a slump in the real economy. In addition, conditions such as
the shortage of skilled construction workers and the trend in prices for materials and equipment continue to warrant
close attention.
Given such circumstances, the Kanamoto Group moved forward with its three priority policies of expanding its
domestic base of operations, developing its overseas business, and optimizing internal operational processes, andmade every effort to further enhance its corporate value, with the aim of realizing its new Medium-Term
Management Plan (FY2020-FY2024) “Creative 60”. The Group worked diligently to fulfill its mission as well,including capital investment and the development of social capital to strengthen support systems for natural
disaster recovery and reconstruction activities, while striving to prevent the spread of new coronavirus infections,with the highest priority on ensuring the safety of our customers and employees.
Turning to the operating results of the Kanamoto Group for the consolidated nine-month period, net sales were¥132,961 million, down 0.6% compared with the same period of the prior consolidated fiscal year. In terms ofearnings, operating profit fell 19.4% from the same period of the prior consolidated fiscal year to ¥10,658 million,
reflecting investments in the human resources who will be responsible for future growth and restraints on sales ofused construction equipment to improve rental business profitability, while ordinary profit declined 23.0% year-onyear to ¥10,459 million and nine-month profit attributable to owners of parent contracted 28.1% year-on-year to¥6,143 million.
Operating results for each of the Company’s business segments were as follows.
< Business related to the Construction Equipment Rental Division >In the construction-related business that is Kanamoto’s primary business, construction equipment rental demand
generally was brisk, particularly for disaster recovery and disaster prevention-related works and infrastructurerelated works, despite temporary project delays or cancellations seen at some worksites that were affected bycoronavirus infections.
In addition, the Kanamoto Group worked to maintain an efficient management organization and further
strengthen its business structure, in order to maintain a product lineup capable of supplying a broad range ofrequests and ensure the Group’s portfolio possesses the optimal quantities and models of equipment.
Used construction equipment sales declined 19.0% from the corresponding period of the prior consolidated fiscal
year, as the Company proceeded with sales in line with its initial plan.
As a result of the above factors, net sales for Kanamoto’s construction-related businesses were ¥119,984 million,
nearly unchanged from the same period of the prior consolidated fiscal year, and operating profit decreased 21.4%
year-on-year to ¥9,613 million.

－

5 －< Other businesses >In the Company’s other businesses, sales in the welfare-related business and information andtelecommunications-related business were robust. Because steel products-related demand remained at a low levelcompared with the same period one year earlier, however, reflecting the drop in demand because of steel materials
prices, net sales slipped 6.4% from the same period of the previous consolidated fiscal year to ¥12,976 million,
and operating profit rose 5.7% year-on-year to ¥721 million.

－

6 －(2) Qualitative Information Concerning Consolidated Financial Position
Assets, liabilities, and net assets
Total assets at the end of the third quarter under review increased by ¥11,399 million compared with the end of
the previous consolidated fiscal year to ¥279,582 million. The principal items contributing to this change were an
increase of ¥4,008 million in cash and deposits, an increase of ¥8,807 million in rental equipment, and an increaseof ¥1,327 million in construction machine parts, and a decrease of ¥3,094 million in notes and accounts receivabletrade and a decrease of ¥1,005 million in electronically recorded monetary claims-operating, respectively.
Total liabilities were ¥156,233 million, an increase of ¥9,830 million compared with the end of the priorconsolidated fiscal year. The principal items contributing to this change were an increase of ¥1,940 million in shortterm loans payable, an increase of ¥1,034 million in accounts payable-other, an increase of ¥4,356 million in longterm loans payable and an increase of ¥5,759 million in long-term accounts payable-other, and a decrease of¥1,373 million in notes and accounts payable-trade and a decrease of ¥3,668 million in income taxes payable,
respectively.
Total net assets came to ¥123,348 million, ¥1,569 million higher than at the end of the prior consolidated fiscal
year. This mainly reflected profit attributable to owners of parent for the nine-month period of ¥6,143 million, theacquisition of ¥2,000 million of treasury shares, and a decrease of ¥2,505 million for dividends from surplus.

(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results
Because of the difficulty of reasonably estimating when the COVID-19 coronavirus will be brought under control
and the pandemic’s impact on the real economy, Kanamoto has revised the projected consolidated operating results
forecast released on December 6, 2019 based solely on recent market trends and information available to theCompany at this time, and has not changed its full-year projected consolidated operating results to reflect the effectsof the coronavirus.
For details, please refer to the press release “Notification Concerning Revision of Projected Operating Results for
the Business Period Ending October 2020” issued today (September 4, 2020).

－

7 －2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheets(Unit: Millions of yen)
As of October 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Merchandise and finished goods
Costs on uncompleted construction contracts
Raw materials and supplies
Construction machine parts
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Rental equipment
Accumulated depreciation
Rental equipment, net
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－

8 －As of July 31, 2020

43,751
39,574
6,347
1,017
33
800
17,5672,527−225
111,393

47,75936,479
5,341
1,084
73
1,159
18,895
2,585−197
113,181

220,812−134,957
85,85537,453−22,060
15,393
7,828−6,377
1,451
37,211
2,857−1,684
1,173
141,084

236,185−141,523
94,662
38,847−22,799
16,048
7,992−6,5001,492
37,421
3,270−1,735
1,534
151,159

201
1,478
1,680

94
1,430
1,524

9,319
1,714
3,344
−353
14,024
156,789
268,182

8,766
1,853
3,724
−627
13,716
166,400
279,582

(Unit: Millions of yen)
As of October 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Accounts payable - other
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Long-term accounts payable - other
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets－

9 －As of July 31, 2020

33,657
1,120
11,147
885
4,245
1,320
23,3702,772
78,51932,284
3,060
11,559
1,040
576
865
24,405
3,836
77,63017,2061,800
48,043285
492
55
67,883
146,403

21,562
2,298
53,802340
526
72
78,603
156,233

17,82919,324
76,638−9113,783

17,82919,32480,276−2,009115,421

1,918

1,255

0
−192
−2

－
−179
−25

1,723

1,050

6,272
121,779
268,182

6,876
123,348279,582

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Nine-month Period ended July 31)(Unit: Millions of yen)
Nine months ended
July 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share issuance cost
Provision of allowance for doubtful accounts
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Subsidy income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on valuation of shares of subsidiaries andassociates
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

－

10 －

Nine months ended
July 31, 2020

133,823
94,552
39,271
26,041
13,229132,961
95,06337,89827,23910,658

19
164
59
396
639

33
165
65
336
600

67
25
46
－
27
122
289
13,580

60
112
－
331
50
244
799
10,459

32
19
14
67

9
12
－
22

118

171

3

66

－
122
13,525
4,320
32
4,352
9,172
622
8,550

119
357
10,124
3,177
168
3,345
6,779
635
6,143

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Nine-month Period ended July 31)(Unit: Millions of yen)
Nine months ended
July 31, 2019
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests－

11 －Nine months ended
July 31, 2020

9,172

6,779

−379
−0
−120
−0
−501
8,671

−666
−0
12
−28
−682
6,096

8,053

5,470

617

625

(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(Note on Significant Changes to Shareholders’ Equity)
Based on a resolution adopted at the Board of Directors meeting held on March 17, 2020, the Company acquired
935,800 treasury shares.
As a result, treasury shares increased by ¥2,000 million during the consolidated nine-month period ended July 31,
2020, and treasury shares at the end of the third quarter consolidated accounting period totaled –¥2,009 million.
(Change in Accounting Policy)(Changes in accounting policies that are difficult to separate from changes in accounting estimates)
Traditionally, certain of the Company’s domestic consolidated subsidiaries depreciated rental assets by applying
the declining balance method. Beginning from the first quarter consolidated accounting period, these subsidiaries
have changed their depreciation method to the straight-line depreciation method.
This change was based on the judgment the straight-line method is a reasonable method to appropriately reflect
actual conditions of future use as the long-term, stable use of rental assets is achieved through actions to “enhancethe environment to promote Group logistics” and other measures, and was the result of using formulation of theKanamoto Group’s new Medium-Term Corporate Management Plan “Creative 60”, which positions “strengthening
intra-Group cooperation and aligning vectors up to the strategic and tactical levels” as a key component, as anopportunity to review the depreciation method.
As a result, operating profit, ordinary profit and income before income taxes and minority interests for the ninemonth period ended July 31 increased by ¥774 million, respectively, compared with what they otherwise would havebeen had the traditional depreciation method been applied. The effect of this change on the Company’s information
by segment is described in the relevant section.

－

12 －

(Business Segment Information)
I Third quarter of the prior consolidated fiscal year (From November 1, 2018 to July 31, 2019)
1. Information concerning net sales and profit or loss by reporting segment(Unit: Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division
Net sales
Net sales to outside customers
Net sales or transfers between related
segments
Total

Other Businesses(See note)

Total

119,965

13,857

133,823－－－

119,965

13,857

133,823

Segment profit
12,230682
12,912(Note) The “Other businesses” classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division, the Information Products Division,
welfare-related businesses, and other businesses.
2. Difference between total reporting segment profit or loss and the amount reported on the Quarterly
Consolidated Statements of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Unit: Millions of yen)
IncomeAmountReporting segment total
Income for “Other businesses” classification
Other adjustments

12,230682
317

Operating profit reported on the Consolidated
Quarterly Statements of Income

13,2293. Information concerning fixed asset impairment loss and goodwill by reporting segment
The Company had no material items to report.

－

13 －

II Third quarter of the current consolidated fiscal year (From November 1, 2019 to July 31, 2020)
1. Information concerning net sales and profit or loss by reporting segment(Unit: Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division
Net sales
Net sales to outside customers
Net sales or transfers between related
segments
Total

Other Businesses(See note)

Total

119,984

12,976

132,961－－－

119,984

12,976

132,961

Segment profit
9,613
721
10,334(Note) The “Other businesses” classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division, the Information Products Division,
welfare-related businesses, and other businesses.
2. Difference between total reporting segment profit or loss and the amount reported on the Quarterly
Consolidated Statements of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Unit: Millions of yen)
IncomeAmountReporting segment total
Income for “Other businesses” classification
Other adjustments

9,613
721
323

Operating profit reported on the Consolidated
Quarterly Statements of Income

10,658

3. Information concerning fixed asset impairment loss and goodwill by reporting segment
The Company had no material items to report.
4. Matters concerning changes to reporting segments(Change in the depreciation method of property, plant and equipment)
As described in “Change in Accounting Policy”, beginning from the first quarter of the current consolidated
accounting fiscal year certain domestic subsidiaries have changed their method for depreciation of rental
equipment from the declining balance method to the straight-line depreciation method.
In conjunction with this change, the income from business related to the Construction Equipment Rental
Division for the third quarter consolidated accounting period under review increased by ¥774 million comparedwith what it otherwise would have been had the accounting standard used in past periods been applied.

－

14 －

(Material Events After the Reporting Period)
At its Board of Directors meeting held on September 4, 2020, the Company resolved to acquire all of the ownershipinterests in the Australia-domiciled companies Porter Group Nominees Pty Ltd, Porter Utilities Holdings Pty Ltd, andMadica Pty Ltd (collectively, “the Porter Plant Group”), through Kanamoto Australia Holdings Pty Ltd, a wholly-owned
subsidiary, and convert the three companies to subsidiaries. To enable it to hold the Porter Plant Group investment
interests, Kanamoto Australia Holdings Pty Ltd intends to increase its capital by selling stock to Kanamoto, and because
Kanamoto’s investment in Kanamoto Australia Holdings Pty Ltd will exceed 10% of the Company's capital stock after
execution of this transaction, Kanamoto Australia Holdings Pty Ltd will become a specific subsidiary of the Company.
Business combination resulting from the acquisitions
1. Business combination summary(1) Names and businesses of the companies to be acquired①Acquired company name
Porter Group Nominees Pty Ltd
Business
Management of subsidiary②Acquired company name
Porter Utilities Holdings Pty Ltd
Business
Management of subsidiary③Acquired company name
Madica Pty Ltd
Business
Civil engineering and public works, dispatch of specialized
operators④Name of acquired company’s subsidiary
Porter Excavations Pty Ltd
Business
Construction equipment rental⑤Name of acquired company’s subsidiary
Porter Utilities Pty Ltd
Business
Gas pipe laying works(2) Main reasons for the business combination
Under its group philosophy of being “an excellent and dynamic group that uses its solid earnings as a baseto reward shareholders, customers and employees”, Kanamoto seeks to establish a true general rental
company and expand its operating base by positioning “expansion of domestic base of operations, overseas
development, and optimization of internal operational processes” as a priority policy in Kanamoto’s new
Medium-term Corporate Management Plan “Creative 60”, which will extend through the Business Period
ending October 2024.
The Porter Plant Group is developing businesses in sectors such as construction equipment rental, civilengineering and public works, dispatching of specialized operators, and gas pipe laying, primarily in the stateof Victoria, Australia.
The Company has resolved to acquire the investment interests in the Porter Plant Group and manage it asa subsidiary because it believes the group’s firms will help strengthen Kanamoto’s overseas expansion, which
is a key measure of the management plan as described above.
(3) Business combination dateOn or after September 30, 2020
The business combination will be executed pursuant to receiving approval from the relevant authorities(4) Legal form of the business combination
Acquisition of stock for consideration of cash(5) Company names subsequent to business combination
The names of the companies will not change subsequent to the business combination(6) Percentage of ownership interest to be acquired
Porter Group Nominees Pty Ltd:
100%
Porter Utilities Holdings Pty Ltd:
100%
Madica Pty Ltd:
100%
(7) Principal reason for deciding to acquire the company
To enable Kanamoto Australia Holdings Pty Ltd, a wholly-owned subsidiary of Kanamoto, to acquire theownership interests in the companies in exchange for cash.

－

15 －

2. Breakdown by acquired company acquisition cost and type of consideration
To be determined.
3. Description and amount of main acquisition-related costs
To be determined.
4. Amount and cause of goodwill to be generated, depreciation method, and amortization period
To be determined.
5. Amount and main breakdown of assets and liabilities to be received on date of business combination
To be determined.

－

16 －