Six-month Consolidated Financial Report for the Fiscal Year ending
October 31, 2016 [Japan GAAP]
Listed Company Name
Company Code Number
Listing Exchanges(URL
Representative
Inquiries

June 10, 2016
Kanamoto Co., Ltd.
9678
Tokyo Stock Exchange, Sapporo Stock Exchange
http://www.kanamoto.co.jp)
Kanchu Kanamoto
President
Nobuhito Utatsu
Director & Senior Executive Corporate Officer, Division
Manager, Accounting Division
TEL 81-11-209-1600

Scheduled date for submission of Quarterly Report

June 13, 2016

Scheduled date for commencement of dividend payments

July 5, 2016

Preparation of Quarterly Settlement Supplementary
Explanatory Materials

Yes

Quarterly Earnings Briefings

Yes (For institutional investors and analysts)

1. Consolidated Operating Results for the Six-Month Period of the Fiscal Year Ending October 31, 2016
(November 1, 2015 – April 30, 2016)(1) Consolidated operating results (Cumulative)(Numbers less than one million yen have been rounded down)(Percentages show the change from the prior year)

Net Sales

Operating Income

Millions of yen%

Millions of yen%

Fiscal Year ending October 31, 2016:
68,6420.5
8,605 −19.2
Second quarter
Fiscal Year ended October 31, 2015:
68,307
6.4
10,652
5.8
Second quarter(Note) Comprehensive income
Fiscal Year Ending October 31, 2016, Second Quarter ¥5,178 million (−28.9%)
Fiscal Year Ended October 31, 2015, Second Quarter¥7,283 million (16.9%)

Yen

Yen

140.57－181.14－%

Millions of yen

%

8,246

−22.6

4,967

−23.9

10,655

8.1

6,528

15.5

(2) Consolidated financial position
Total Assets
Fiscal Year ending October 31, 2016:
Second quarter
Fiscal Year ended October 31, 2015

Equity Ratio

Millions of yen

Millions of yen%

222,82178,31333.1

202,919

71,99834.3(Reference) Equity (millions of yen)
Fiscal Year Ending October 31, 2016 Second Quarter:
Fiscal Year Ended October 31, 2015:

Net Assets¥73,788¥69,588－

1 －Profit Attributable to
Owners of Parent

Millions of yen

Net Income per
Share on a Fully
Diluted BasisNet Income per
Share
Fiscal Year ending October 31, 2016:
Second quarter
Fiscal Year ended October 31, 2015:
Second quarter

Ordinary Income

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

End of firstquarter
Fiscal year ended October 31, 2015
Fiscal year ending October 31, 2016
Fiscal Year ending October 31, 2016
(Projected)

Full-year

Yen

Yen

Yen

Yen

Yen

－
－

15.00
15.00

－

20.00

35.00

－

30.00

45.00

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

No

3. Projected Consolidated Operating Results for the Fiscal year ending October 2016
(November 1, 2015 – October 31, 2016)(Percentages show the change from the prior year)

Net Sales
Full year

Operating Income

Millions of yen%

143,200

7.4

Millions of yen%

14,630 −10.1

Ordinary Income
Millions of yen%

14,100 −12.8

Profit Attributable to
Owners of Parent
Millions of yen

Net Income per
Share

%

Yen

8,550 −10.5

241.94(Note) Has the Company revised its most recently released projected consolidated operating results during the quarter?
Yes

－

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:
Yes(b) Changes other than the above:No(c) Changes in accounting estimates:(d) Retrospective restatements:

NoNo(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, 2016 Second Quarter:
36,092,241 sharesFiscal year ended October 31, 2015:
36,092,241 shares(b) Number of shares of treasury stock at the end of the period
Fiscal year ending October 31, 2016 Second Quarter:
753,049 sharesFiscal year ended October 31, 2015:
752,941 shares(c) Average number of shares during the period (consolidated year-to-date)Fiscal year ending October 31, 2016 Second Quarter:
35,339,270 sharesFiscal year ended October 31, 2015 Second Quarter:
36,039,311 shares

Note: Disclosure concerning status of implementation of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial Instruments
and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has not completed thequarterly review procedure for quarterly financial statements.
Note: Explanation concerning appropriate use of the projected operating results and other items to note
Note Concerning Forward-Looking Statements
The above projections were prepared based upon information available to the Company at the time the projections
were announced as well as various assumptions concerning the future economic and business environment. Actual
operating results may differ from the projected figures depending upon various factors in the future. Please refer to“1. Qualitative Information Concerning Quarterly Consolidated Operating Results (3) Qualitative Information
Concerning Projected Consolidated Operating Results” on Page 7 of the Attachments for the conditions used asassumptions for the projected operating results and matters to note before using the projected operating results.

－

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

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

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

7(3) Qualitative Information Concerning Projected Consolidated Operating Results ……………………………….

7

2. Matters Concerning Summary Information (Notes) ……………………………………………………………………

7(1) Changes to Material Subsidiaries during the Consolidated Period under Review ………………………………
(2) Application of Special Accounting Method in the Preparation of the Quarterly Consolidated Financial
Statements ………………………………………………………………………………………………………………
(3) Change in Accounting Policy, Change in Accounting Estimate, and Retrospective Restatement …………….

77(4) Supplemental Information …………………………………………………………………………………………….

8

3. Quarterly Consolidated Financial Statements ………………………………………………………………………….

9(1) Quarterly Consolidated Balance Sheets …………………………………………………………………………….
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income …………………………………………………………………………………………………………………..
Quarterly Consolidated Statements of Income

911

Consolidated Interim Period Ended April 30, 2016 ………………………………………………………….

11

7

Quarterly Consolidated Statements of Comprehensive Income
Consolidated Interim Period Ended April 30, 2016 ………………………………………………………….

12(3) Quarterly Consolidated Statements of Cash Flows ………………………………………………………………..

13(4) Notes Concerning Quarterly Consolidated Financial Statements ………………………………………………..

15(Notes Relating to the Going Concern Assumption) ………………………………………………………………

15(Note on Significant Changes to Shareholders’ Equity) ………………………………………………………….

15(Business Segment Information) ……………………………………………………………………………………

15

－

4 －

1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results
Management environment (From November 1, 2015 to April 30, 2016)
During the first two quarters of Kanamoto’s current consolidated fiscal year, the business environment
maintained a modest recovery trend, supported by the continuation of the government’s current economic andmonetary policy measures. Conditions continued to warrant vigilance, however, in the wake of changes such as
the economic slowdown in newly developing countries and resource-producing nations and a decline incorporate earnings at export-oriented manufacturers that was caused by appreciation of the yen.
< Second Quarter Operating Results > (From November 1, 2015 to April 30, 2016)
In the construction industry related to the Kanamoto Group, overall private sector construction investment
remained brisk. Nevertheless, while ongoing construction demand can be anticipated for disaster restoration andprojects such as the Tokyo Olympics, the management environment continues to be challenging, and on thewhole the tendency to postpone public sector expenditures for activities such as regional infrastructure
maintenance is projected to continue.
Given such circumstances, the Kanamoto Group continued to push ahead with key initiatives based on thevarious measures in its Medium-term Management Plan (fiscal 2014 - fiscal 2016). Together with expanding its
base in the Tokyo metropolitan area and other locations where public sector demand is concentrated, theCompany took steps to broaden and strengthen its domestic base of operations, including the conversion of
Nishiken Co., Ltd. (Kurume City, Fukuoka Prefecture), the largest construction equipment rental firm in the
Kyushu Region, into a subsidiary in March 2016.
As a result, consolidated net sales for the interim period were ¥68,642 million, up 0.5% compared with thesame period of the previous consolidated fiscal year. From an earnings perspective, the Company iscontinuously undertaking investments in rental equipment to pursue its regional strategy aimed at expanding andstrengthening its base of operations, and income reflected the impact of the increased burden for depreciation
and amortization. As a result, operating income decreased19.2% from the same period of the prior consolidated
fiscal year to ¥8,605 million, ordinary income decreased 22.6% year-on-year to ¥8,246 million, and profit
attributable to owners of the parent fell 23.9% from the same period one year earlier to ¥4,967 million.
To support disaster recovery activities following the earthquake that struck Kumamoto City and the surroundingarea in Kumamoto Prefecture on April 16, 2016, the Kanamoto Group has established a Kyushu Regional
Disaster Response Headquarters within the head office of Nishiken Co., Ltd., and will devote its full capabilities tosupport restoration in the region, including strengthening cooperation with Group firms and effective allocation of
the management resources of each Group company.
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 core business, construction demand was brisk inregions such as Tohoku and the Tokyo metropolitan area, primarily for recovery and restoration in the Tohoku
Region and infrastructure refurbishment ahead of the Tokyo Olympics. In other regions, however, the operatingclimate grew more severe. Public works were put off as execution of the third supplementary budget was delayed
and because worksites continue to contend with a shortage of human resources, and demand for construction
equipment rentals during the interim declined more than the Company’s assumption.
Used construction equipment sales slipped 3.1% from the corresponding period of the prior consolidated fiscal
year, as Kanamoto restricted sales in line with its initial period plan in order to maintain the proper composition ofrental assets in the Company’s portfolio.
As a result of the above factors, interim period net sales for Kanamoto’s construction-related businesses rose
0.5% from the same period of the prior consolidated fiscal year to ¥64,311 million, and operating income fell
20.3% year-on-year to ¥8,249 million.
< Other businesses >In the Company’s other businesses, both steel products-related sales and sales in the information and－5 －telecommunications-related division were steady. Net sales rose 0.8% from the same period of the priorconsolidated fiscal year to ¥4,330 million, and operating income increased 28.7% year-on-year to ¥153 million.
< Business developments deserving special mention and change in number of branches >The Company opened one new branch, the Okegawa-Kitamoto Branch (Kitamoto City, Saitama Prefecture)
during its interim consolidated accounting period. The Company did not close any branches.
Beginning from the interim period of the current consolidated fiscal year, Kanamoto will include Nishiken Co.,
Ltd. in the scope of consolidation as announced on March 14, 2016.

－6 －(2) Qualitative Information Concerning Consolidated Financial Position
Assets, liabilities and net assets
Total assets at the end of the interim period under review increased by ¥19,901 million compared with the endof the prior consolidated fiscal year to ¥222,821 million. This was tempered by an increase of ¥17,093 million yen
because of the inclusion of Nishiken Co., Ltd. in the scope of consolidation in the second quarter consolidated
accounting period, and mainly reflected an increase in notes and accounts receivable-trade of ¥2,542 million andan increase in rental equipment of ¥9,093 million.
Total liabilities were ¥144,508 million, an increase of ¥13,586 million compared with the end of the priorconsolidated fiscal year. This was tempered by an increase of ¥8,272 million that reflected the newly
consolidated company, similar to the increase in total assets, and was mainly an increase of ¥4,657 million in
long-term loans payable.
Total net assets were ¥78,313 million, ¥6,315 million higher than at the end of the prior consolidated fiscal year.
This was mainly because of profit attributable to owners of the parent of ¥4,967 million, and an increase of¥2,114 million in non-controlling interests.
(3) Qualitative Information Concerning Projected Consolidated Operating Results
For more details, please refer to the press release “Notification Concerning Revision of Projected Operating
Results for the Business Period Ending October 2016” issued on June 10, 2016.

2. Matters Concerning Summary Information (Notes)(1) Changes to Material Subsidiaries during the Consolidated Period under Review
The Company had no material items to report.
(2) Application of Special Accounting Method in the Preparation of Quarterly Consolidated Financial Statements
The Company had no material items to report.
(3) Changes in Accounting Principles, Changes in Accounting Estimates and Retrospective Restatement
Change in Accounting Policy(Application of the Accounting Standard for Business Combinations and related standards)
Beginning from the first quarter of the current consolidated fiscal year, the Company will apply the AccountingStandard for Business Combinations (Accounting Standards Board of Japan Statement No. 21 dated September
13, 2013; “the Business Combinations Accounting Standard”), the Accounting Standard for Consolidated
Financial Statements (Accounting Standards Board of Japan Statement No. 22 dated September 13, 2013; “theConsolidation Accounting Standard”), and the Accounting Standard for Business Divestitures (AccountingStandards Board of Japan Statement No. 7 dated September 13, 2013; “the Business Divestitures AccountingStandard”), and related standards, and together with reporting as capital surplus the difference that results fromthe change of Kanamoto’s equity interest in subsidiaries over which it will continue to exercise control, theCompany will change to the method of reporting costs related to business combinations as an expense in the
consolidated fiscal year in which they are incurred. Furthermore, for business combinations executed on or after
the beginning of the first quarter of the current consolidated fiscal year, the Company has changed its reporting
method to reflect adjustments to the allocated amounts of business combination costs resulting from the final
determination of the provisional accounting treatment in the quarterly consolidated financial statements of thequarter in which the date of the business combination falls. In addition, the Company has revised its presentationof net income etc., and revised its presentation from minority interests to non-controlling interests. To reflect thesechanges in presentation, the quarterly consolidated financial statements for the second quarter of the fiscal year
ended October 31, 2015 and the consolidated financial statements for the prior consolidated fiscal year havebeen restated to reflect a consistent presentation format.
In the quarterly consolidated statements of cash flows for the interim period of the current consolidated fiscal
year, the cash flow for costs related to the acquisition of subsidiary shares in conjunction with a change of scopeof consolidation are reported in net cash provided by (used in) operating activities.
Application of the accounting standards is subject to the transitional treatment set forth in Clause 58-2(4) of theBusiness Combinations Accounting Standard, Clause 44-5(4) of the Consolidation Accounting Standard, andClause 57-4(4) of the Business Divestitures Accounting Standard, and the Company will apply these accounting
standards in the future from the beginning of the first quarter of the current consolidated fiscal year.
The effect of this change on the quarterly consolidated financial statements for the interim period of the current－

7 －consolidated fiscal year is not material.
(4) Supplemental Information(Effect of the change in the corporation tax rate etc.)
Under the Act for Partial Revision of the Income Tax Act Etc. (Act No. 15 of 2016) and the Act for Partial
Revision of the Local Tax Act (Act No. 13 of 2016), which were promulgated on March 31, 2016, Japan’s
corporate tax rate and business tax rate will be reduced in the consolidated fiscal year beginning on or after April
1, 2016. In conjunction with this change, the statutory effective tax rate used to calculate deferred tax assets anddeferred tax liabilities will be revised from 32.0% applied in the past to 30.6% for temporary differences expected
to be eliminated in the consolidated fiscal years that begin on November 1, 2016 and November 1, 2017, andfrom 32.0% to 30.4% for temporary differences expected to be eliminated from the consolidated fiscal year thatbegins on November 1, 2018.
As a result of applying this statutory effective tax rate, the amount for deferred tax assets, (amount after
deducting deferred tax liabilities) will decrease by ¥10 million, and the amount for income taxes-deferred and theamount for valuation difference on available-for-sale securities will increase by ¥52 million and ¥41 million,
respectively.

－

8 －3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Unit: Millions of yen)
Prior Consolidated
Fiscal Year(As of October 31, 2015)

Current Consolidated
Fiscal Year Second Quarter(As of April 30, 2016)

35,90037,251
350
672
272
8,214
610
623
−701
83,19536,60939,794
200
912
387
9,424
704
778
−743
88,068

164,914−97,573
67,341
25,840−16,275
9,564
5,714−4,965749
32,354
2,539−1,112
1,426
111,436

185,487−109,053
76,43430,579−18,393
12,185
6,888−5,853
1,035
35,1391,960−1,296663
125,459

－
316
316

711
384
1,096

6,317
285
2,008
−528
−110
7,972
119,724
202,919

6,236
378
2,379
−576
−219
8,197
134,753
222,821

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Raw materials and supplies
Construction machine parts
Deferred tax assets
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
Allowance for investment loss
Total investments and other assets
Total non-current assets
Total assets－

9 －(Unit: Millions of yen)
Prior Consolidated
Fiscal Year(As of October 31, 2015)

Current Consolidated
Fiscal Year Second Quarter(As of April 30, 2016)

27,775727－
12,550
1,585
3,711
856
19,233
3,093
69,53429,5582,209
80
14,041
1,500
3,171
1,118
21,1382,474
75,292－
19,614
1,831
39,254－－317
368
61,387130,921

10
24,271
2,808
41,167
87
248
370
250
69,215
144,508

13,652
14,916
41,156−2,12867,597

13,652
14,91645,416−2,12971,857

1,948
−0
43
1,991
2,409
71,998202,919

1,818
0
112
1,930
4,524
78,313
222,821

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of bonds
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
Bonds payable
Long-term loans payable
Lease obligations
Long-term accounts payable - other
Provision for directors' retirement benefits
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-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

－

10 －

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Interim Period Ended April 30)(Unit: Millions of yen)
Prior Consolidated Fiscal Current Consolidated Fiscal
Year Interim Period
Year Interim Period(From November 1, 2014
(From November 1, 2015
to April 30, 2015)
to April 30, 2016)
68,307
68,64245,74647,38822,561
21,254
11,90812,64910,652
8,605

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Insurance income
Rent income
A receipt bonus
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales of notes payable
Foreign exchange losses
Provision of allowance for investment loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Subsidy income
Compensation income for damage
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on valuation of shares of subsidiaries and associates

Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

－

11 －

4
27
16
35
23
143
106
357

4
68
15
32
9
－
103
234

260
10
－
－
83
354
10,655

160
7
198
109
116
592
8,246

7
3
118
－
128

8
3
－
14
26

49
－
49
10,735
3,979
−34
3,945
6,790
262
6,528

27
49
77
8,195
2,940
15
2,956
5,239
271
4,967

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Interim Period Ended April 30)(Unit: Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests－

Prior Consolidated Fiscal Current Consolidated Fiscal
Year Interim Period
Year Interim Period(From November 1, 2014
(From November 1, 2015
to April 30, 2015)
to April 30, 2016)
6,790
5,239

12 －

467
－
25
493
7,283

−129
0
68
−60
5,178

7,017

4,907

266

271

(3) Quarterly Consolidated Statements of Cash Flows(Unit: Millions of yen)
Prior Consolidated Fiscal Current Consolidated Fiscal
Year Interim Period
Year Interim Period(From November 1, 2014
(From November 1, 2015
to April 30, 2015)
to April 30, 2016)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Loss (gain) on sales and retirement of non-current
assets
The amount of cost price transfer with the construction
machine parts sale
The amount of cost price transfer with asset sell-off forrentals
Expenditure by the construction equipment andsupplies
Expenditure by the assets acquisition for rentals
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for investment loss
Increase (decrease) in net defined benefit liability
Interest and dividend income
Assets buy on the installment plan purchase payment
interest for rentals
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on step acquisitions
Compensation income for damage
Loss on valuation of shares of subsidiaries andassociates
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividend income received
Compensation for damage income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Purchase of shares of subsidiaries
Purchase of shares of subsidiaries and associates
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities－

13 －10,735
10,172
7

8,195
10,221
－

41

18

3

7

616

483

−78

−56

−418
17
154
－
4
−32

−876
51
167
109
－
−73

194

181

260
−103
－
−118

160
108
−14
－

－

49

−118

934

−257

−295

237

1,216

900
−668
21,55132
118−460−3,643
17,596

1,057−1,122
20,52472－−349−3,582
16,666－−1,680
15
−15
−28

−0
−1,235
10
−58
−13

－

−5,806

−72
−54
－
1
−8
−1,842

－
－
−37
10
−42
−7,173

(Unit: Millions of yen)
Prior Consolidated Fiscal Current Consolidated Fiscal
Year Interim Period
Year Interim Period(From November 1, 2014
(From November 1, 2015
to April 30, 2015)
to April 30, 2016)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of installment payables
Repayments of lease obligations
Purchase of treasury shares
Purchase of treasury shares of subsidiaries
Cash dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

－

14 －

−1
5,432
−6,448−9,806
−504
－
−0
−720
−3
−12,051

97
10,110−7,162−10,520−1,018−0－−706−1−9,200

9

27

3,712
31,98035,692319
36,15036,469(4) Notes Concerning Quarterly Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(Note on Significant Changes to Shareholders’ Equity)
The Company had no material items to report.
(Business Segment Information)[ Segment information ]I Interim period of the prior consolidated fiscal year (From November 1, 2014 to April 30, 2015)
1. Information concerning net sales and profit or loss of each reporting segment(Unit: Millions of yen)
Reporting segment
Business related to theConstruction Equipment
Rental Division

Other Businesses(See note)

64,012

4,295

68,307---64,012

4,295

68,307

10,344

119

10,463

Net sales
Net sales to outside customers
Net sales or transfers between
related segments
Total
Segment income

Total(Note) The “Other businesses” classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division and business related to the
Information Products Division 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

10,344
119
188

Operating income reported on the Consolidated
Quarterly Statements of Income

10,652

3. Information concerning fixed asset impairment loss and goodwill by reporting segment
The Company has omitted a discussion of this item because the amounts are not material.

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15 －

II Interim period of the current consolidated fiscal year (From November 1, 2015 to April 30, 2016)
1. Information concerning net sales and profit or loss of each reporting segment(Unit: Millions of yen)
Reporting segment
Other Businesses
Business related to the
Total
Construction Equipment(See note)
Rental Division
Net sales
Net sales to outside customers
Net sales or transfers between
related segments
Total
Segment income

64,311

4,330

68,642－－－64,311

4,330

68,642

8,249

153

8,403

(Note) The “Other businesses” classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division and business related to the
Information Products Division 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

8,249
153
201

Operating income reported on the Consolidated
Quarterly Statements of Income

8,605

3. Information concerning fixed asset impairment loss and goodwill by reporting segment
In the second quarter consolidated period under review, Nishiken Co., Ltd. has been included in thescope of consolidation.
The amount of the increases in goodwill for the interim period of the current consolidated fiscal year asa result of this event are ¥380 million for business related to the Construction Equipment Rental Divisionand ¥331 million for other businesses.
4. Information concerning changes in reporting segments etc.
(Application of the Accounting Standard for Business Combinations and related standards)
As described in Change in Accounting Policy, beginning from the first quarter of the current consolidated
accounting year the Company will apply the Accounting Standard for Business Combinations and related
standards, and together with reporting as capital surplus the difference that results from the change of
Kanamoto’s equity interest in subsidiaries over which it will continue to exercise control, the Company haschanged to the method of reporting costs related to business combinations as an expense in the
consolidated fiscal year in which they are incurred. In addition, for business combinations executed on orafter the beginning of the first quarter of the current consolidated fiscal year, the Company has changed its
reporting method to reflect adjustments to the allocated amounts of business combination costs resulting
from the final determination of the provisional accounting treatment in the quarterly consolidated financial
statements of the quarter in which the date of the business combination falls.
The effect of this change in accounting policy on the Company’s income by segment for the interim
period of the current consolidated fiscal year is not material.

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