Nine-Month Consolidated Financial Reportfor the Fiscal Year Ending October 31, 2022 (Japan GAAP)
Listed Company Name
Company Code Number
Listing Exchanges
URL
Representative
Inquiries

September 2, 2022
Kanamoto Co., Ltd.
9678
Tokyo Stock Exchange, Sapporo Stock Exchange
https://www.kanamoto.co.jp
Tetsuo Kanamoto
President and CEO
Shun Hirose
Director & Corporate Officer, Division Manager,
Accounting Division
TEL 81-11-209-1600

Scheduled date for submission of Quarterly Report
Scheduled date for commencement of dividend payments
Preparation of Quarterly Settlement Supplementary Explanatory Materials
Quarterly Earnings Briefings

September 13, 2022

–

No
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, 2022(November 1, 2021 – July 31, 2022)(1) Consolidated Operating Results (Cumulative)
Net Sales(Percentages show the change from the prior year)

Operating Profit
Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Profit

Millions of yen%

Fiscal year ending
October 31, 2022:
Third quarter

138,828

–

9,162

-15.2

9,679

-15.6

5,927

-13.2

Fiscal year ended
October 31, 2021:
Third quarter

141,455

6.4

10,8101.4

11,462

9.6

6,829

11.2

(Note) Comprehensive income (millions of yen)
Fiscal year ending October 31, 2022, Third quarter
Fiscal year ended October 31, 2021, Third quarter

Earnings per
Share

8,108
8,716

Millions of yen%

Millions of yen%(-7.0%)(43.0%)

Earnings per
Share on a Fully
Diluted Basis

Yen

Yen

Fiscal year ending
October 31, 2022:
Third quarter

159.27–

Fiscal year ended
October 31, 2021:
Third quarter

180.61–(Notes)%1. The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),
etc. from the beginning of the first quarter of the fiscal year ending October 31, 2022, and the figures for the third
quarter of the fiscal year ending October 31, 2022 are figures after the application of the said accounting standard.
As a result, the percentage of change for net sales from the same period of the previous year is not shown.
2. In the previous fiscal year, the Company finalized the provisional accounting treatment for business combinations,and the figures for the third quarter of the fiscal year ended October 31, 2021 reflect the finalized content of theprovisional accounting treatment.

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of July 31, 2022

309,542

138,043

41.9

As of October 31,
2021

303,754

134,917

41.8(Reference) Equity (millions of yen)
As of July 31, 2022
As of October 31, 2021

129,614
126,956 1 

(Note) The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the first quarter of the fiscal year ending October 31, 2022, and the figures as of July 31, 2022 are
figures after the application of the said accounting standard.

2. Dividends
Annual Dividends per Share
End offirst quarterEnd ofsecond quarter

Yen

End ofthird quarter

Yen

Year-end

Yen

Fiscal year ended October 31,
2021

–

25.00

–

Fiscal year ending October 31,
2022

–

35.00

–

Full-year
Yen

Fiscal year ending October 31,
2022 (projected)

Yen

45.00

70.00

40.00

75.00

(Note) Has the Company revised its most recently released dividend projection?: No

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2022
(November 1, 2021 – October 31, 2022)(Percentages show the change from the prior year)
Net Sales
Millions of yen

Full year(Notes)186,900

Operating Profit% Millions of yen–

13,500

Profit Attributable to
Owners of Parent

Ordinary Profit% Millions of yen-7.7

14,000% Millions of yen

-9.0

8,600

%

-3.4

Earnings per
Share
Yen

231.07

1. 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 “Notification Concerning Revision of
Projected Full-Year Operating Results for the Fiscal Year Ending October 31, 2022” announced today (September 2,2022).
2. As the Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020), etc. from the beginning of the fiscal year ending October 31, 2022, the above projected consolidated operating
results are after the application of the said accounting standard. As a result, the percentage of change for net sales
from the previous fiscal year is not shown.

 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): No(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: No(d) Retrospective restatements: No(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Significant Notes
Thereto (3) Notes Concerning Quarterly Consolidated Financial Statements (Changes in Accounting
Policies)” on page 11 of the Attachments.
(4) Number of shares issued (common shares)(a) Number of shares issued at the end of the period (including treasury shares)
As of July 31, 2022:
38,742,241 shares
As of October 31, 2021:
38,742,241 shares(b) Number of treasury shares at the end of the period
As of July 31, 2022:
1,799,490 shares
As of October 31, 2021:
924,846 shares(c) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Fiscal year ending October 31, 2022: Third quarter:
37,218,062 sharesFiscal year ended October 31, 2021: Third quarter:
37,812,715 shares
Note: Quarterly earnings reports are not subject to quarterly review by certified public accountants or
independent account auditors.
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. Please refer to “1. Qualitative Information
Concerning Quarterly Consolidated Operating Results (3) Explanation Concerning Future Forecasts
Including Projected Consolidated Operating Results” on page 6 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 

○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 ............................................6(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results .......6
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .....................................7(1) Quarterly Consolidated Balance Sheets ...................................................................................7(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ........................................................................................................9(Quarterly Consolidated Statements of Income) ...................................................................9(Consolidated Nine-Month Period Ended July 31) ...............................................................9(Quarterly Consolidated Statements of Comprehensive Income) ........................................... 10(Consolidated Nine-Month Period Ended July 31) ............................................................. 10(3) Notes Concerning Quarterly Consolidated Financial Statements ............................................... 11(Notes Relating to the Going Concern Assumption) ............................................................. 11(Note on Significant Changes to Shareholders’ Equity)......................................................... 11(Changes in Accounting Policies)....................................................................................... 11(Supplemental Information) ............................................................................................. 12(Segment Information) .................................................................................................... 12

 4 

1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results
During the nine-month period under review, Japan’s economy showed signs of picking up as economic
activities normalized due to the gradual easing of restrictions on movement associated with COVID-19.
However, the outlook remains uncertain due to concerns about the impact of the recent re-emergence of
infection, the prolonged situation in Ukraine, and the acceleration of global inflation.
In the construction industry in which the Group is involved, although public sector investment remained
steady and private sector construction investment has shown signs of gradual recovery, the situation stillrequires monitoring as the supply shortage of semiconductors and soaring material and energy prices are
causing construction costs to rise, and as the shortage of skilled construction workers are becoming
increasingly more severe.
In such circumstances, based on the three key measures in the Medium-Term Corporate Management
Plan “Creative 60” (FY2020-2024), the Group is promoting the Alliance Group’s foundations, and working
to further develop business through synergistic effects and the establishment of a meticulous service
system. In addition, the Group is committed to sustainable development and the enhancement of corporate
value through the promotion of flexible investment strategy that responds to actual demand, and throughefforts such as focusing on securing and training the human resources who will lead the company in the
future.
For the nine-month period under review, the Group reported net sales of ¥138,828 million. On theearnings front, partly due to an increase in selling, general and administrative expenses caused byinvestment in human resources in addition to a trend of rental demand, operating profit decreased 15.2%
from the same period of the prior fiscal year to ¥9,162 million, ordinary profit declined 15.6% to ¥9,679
million, and profit attributable to owners of parent decreased 13.2% to ¥5,927 million.
Please note that the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter.
For details, please refer to “2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(3) Notes Concerning Quarterly Consolidated Financial Statements (Changes in Accounting Policies).”
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, which is Kanamoto’s core business, although performance of public
sector investment remained steady, primarily in disaster prevention and reduction and activities being
carried out for Japan’s National Resilience Plan as well as maintenance and renewal of aging social capital,a full-scale recovery in rental demand for construction equipment did not eventuate as some regional
disparities in construction demand became more apparent.
In addition to strengthening its ability to respond to the fields of maintenance and repair of social
infrastructure and renewable energy, where further priority investment is expected, the Group is also
promoting technological development and business alliances for environmental equipment as well as
measures for saving labor and protecting the environment at construction sites, which are desirable toaccelerate digital reform and realize a decarbonized society.
Used construction equipment sales decreased 16.0% year on year, as Kanamoto has carried out theextension of the rental equipment operation period as planned at the beginning of the fiscal year.
Reflecting these factors, the Group posted net sales in the construction-related businesses of ¥125,879
million, and operating profit of ¥7,929 million, a decrease of 17.7% year on year.

 5 

< Other businesses >In the Group’s other businesses, net sales was ¥12,949 million and operating profit increased by 4.4%
year on year to ¥865 million, as the business related to the Steel Sales Division as well as the business
related to the Information Products Division and welfare-related business performed well.
(2) Qualitative Information Concerning Consolidated Financial Position
Assets, liabilities, and net assets
Total assets at the end of the third quarter under review stood at ¥309,542 million, an increase of ¥5,787
million compared with the end of the prior fiscal year. This was primarily due to an increase of ¥4,462
million in rental equipment and ¥4,134 million in other under investments and other assets, respectively,
while cash and deposits decreased by ¥4,080 million.
Total liabilities stood at ¥171,498 million, an increase of ¥2,661 million compared with the end of theprior fiscal year. This was mainly due to increases of ¥2,120 million in short-term loans payable and ¥3,954
million in long-term loans payable, while income taxes payable decreased by ¥2,422 million and other
under current liabilities decreased by ¥1,708 million, respectively.
Total net assets stood at ¥138,043 million, an increase of ¥3,126 million compared with the end of theprior fiscal year. This mainly reflects the posting of profit attributable to owners of parent of ¥5,927 million
and an increase of ¥1,644 million in foreign currency translation adjustment. Meanwhile, there weredecreases of ¥2,994 million and ¥1,967 million, due to dividends of surplus and purchase of treasury
shares, respectively.
(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating
Results
For details, please refer to the “Notification Concerning Revision of Projected Full-Year Operating Results
for the Fiscal Year Ending October 31, 2022” announced on September 2, 2022.

 6 

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of October 31, 2021

As of July 31, 2022

56,09339,30552,012––

36,979

7,319

7,696

1,666

1,840

82

–

1,375
18,055
3,123-269
126,751

1,591
17,415
4,252-285
121,501

262,239-164,193
98,046
42,680-24,656
18,024
9,764-8,141

279,865-177,357
102,508
43,458-25,708
17,75010,011-8,448

1,623

1,563

37,684
2,899-2,143756
156,135

38,5304,608-2,2572,350
162,703

4,111
1,276
1,516
6,904

3,963
1,415
1,542
6,921

9,249
2,175
3,046
-507
13,963177,003
303,754

10,048
1,759
7,180
-572
18,415
188,040
309,542

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade,and contract assets
Electronically recorded monetary claims operating
Merchandise and finished goods
Costs on construction contracts inprogress
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
Customer relationship
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 7 

(Millions of yen)
As of October 31, 2021

As of July 31, 2022

37,082960
24
13,055
1,269
2,681
1,548
24,545
6,063
87,23036,296
3,080–
14,175
1,426
259
1,009
25,3384,354
85,941

31,4602,888
44,486
566
588
1,501
115
81,607
168,837

35,414
3,319
43,719
361
589
1,922
230
85,557
171,498

17,82919,32689,048-1,978124,226

17,82919,332
91,981-3,945125,198

2,249

2,258

0
541
-60

0
2,185
-29

2,729

4,415

7,960
134,917
303,7548,429
138,043
309,542

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
Accounts payable - other
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Long-term accounts payable - other
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
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 8 

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Nine-Month Period Ended July 31)(Millions of yen)
Nine months ended
July 31, 2021

Nine months ended
July 31, 2022

141,455
100,075
41,38030,56910,810138,828
98,00440,823
31,661
9,162

33
158
327
64
29
281
895

53
179
20
58
177
317
806

77
18
147
243
11,462

75
19
195
290
9,679

14

14

20

6

17
–
–
51

–
34
135
191

140

182

–
81
222
11,292
3,636
168
3,805
7,487
657
6,829

4
–
187
9,683
2,554
715
3,269
6,413
485
5,927

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Insurance fee income
Rental income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries andassociates
Subsidy income
Gain on revision of retirement benefit plan
Gain on extinguishment of tie-in shares
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current
assetsLoss on valuation of investment securities
Loss on extinguishment of tie-in shares
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 9 

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Nine-Month Period Ended July 31)(Millions of yen)
Nine months ended
July 31, 2021

Nine months ended
July 31, 2022

7,487

6,413

370

8

–
852

0
1,644

6

41

1,229
8,716

1,694
8,108

8,055

7,613

660

495

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
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 toowners of parent
Comprehensive income attributable to noncontrolling interests

 10 

(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)
The Company repurchased 889,500 shares of treasury shares in accordance with the resolution of themeeting of the Board of Directors held on December 10, 2021.
As a result, treasury shares increased by ¥1,999 million during the nine-month period ended July 31,
2022, resulting in a net loss of ¥3,945 million for treasury shares as of the end of the nine-month period
ended July 31, 2022.
(Changes in Accounting Policies)(Application of accounting standard for revenue recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ regulations effective from the beginning of the first quarter, and it
has recognized revenue at the time the control of promised goods or services is transferred to thecustomer at the amount expected to be received upon exchange of said goods or services. The mainchanges resulting from the application are as follows:(1) Change in the timing of revenue recognition
With respect to revenues from construction-related businesses and other businesses, the Grouppreviously recognized revenues from the rental of construction equipment to customers and sales of
products at the time of shipment. However, the Group now recognizes revenue at the time of delivery
when control over the rental construction equipment or goods sold is transferred to the customer.
(2) Revenue recognition for agent transactions
For certain transactions, the Group previously recognized as revenue the gross amount ofconsideration received from customers. However, for transactions in which the Group’s role in theprovision of goods or services to customers is that of an agent, the Group now recognizes revenue as
the net amount received from customers less the amount paid to suppliers.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the
new accounting policy had been applied to periods prior to the beginning of the first quarter was added
to or deducted from the opening balance of retained earnings of the first quarter, and thus the new
accounting policy was applied from such opening balance; provided, however, that the new accounting
policy was not retrospectively applied to contracts for which nearly all the revenue amounts had beenrecognized according to the previous treatment in periods prior to the beginning of the first quarter, byapplying the method provided for in paragraph 86 of the Accounting Standard for Revenue Recognition.
As a result of this change, for the nine-month period under review, net sales decreased by ¥2,792
million and cost of sales decreased by ¥2,791 million, while operating profit, ordinary profit and profit
before income taxes each decreased by ¥0 million. In addition, the opening balance of retained earnings
decreased by ¥0 million.
Due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ
regulations, “Notes and accounts receivable - trade” under current assets of the consolidated balance
sheet as of the end of the prior fiscal year has been included in “Notes and accounts receivable - trade,and contract assets” under current assets from the quarterly consolidated balance sheet as of the end of
the first quarter. In accordance with the transitional treatment provided for in paragraph 89-2 of the
Accounting Standard for Revenue Recognition, figures for the prior fiscal year have not been restated inaccordance with the new approach to presentation. Furthermore, the information on disaggregation ofrevenue from contracts with customers during the nine-month period of the prior fiscal year has not been
disclosed as allowed by the transitional treatment provided for in paragraph 28-15 of the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020).

 11 (Application of accounting standard for fair value measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter, and it has applied
the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc.
prospectively in accordance with the transitional measures provided for in paragraph 19 of the AccountingStandard for Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no impact on the quarterly consolidated
financial statements.
(Supplemental Information)(Changes to a retirement benefit plan)
NISHIKEN CO., LTD., a consolidated subsidiary of the Company, shifted from a lump-sum retirement
benefit plan to a defined contribution pension plan on January 31, 2022, except for certain eligible
employees. The accounting treatment in this transition applied “Accounting for Transfer between
Retirement Benefit Plans” (ASBJ Guidance No. 1, December 16, 2016) and “Practical Solution on
Accounting for Transfer between Retirement Benefit Plans” (ASBJ Practical Issues Task Force No. 2,
February 7, 2007). As a result, extraordinary income of ¥34 million was recorded for the nine-month
period under review.
(Segment Information)I
Nine-month period ended July 31, 2021 (From November 1, 2020 to July 31, 2021)
1.

Information concerning the amount of net sales and income or loss by reporting segment(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)

128,085

13,370141,455–––

128,085

13,370141,455

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

Total

Segment income
9,629
828
10,458(Notes) 1. The “Other businesses” classification encompasses business segments notincluded in the reporting segment, and includes business related to the Steel Sales
Division and business related to the Information Products Division, welfare-related
business and other businesses.
2. The segment information for the nine-month period ended July 31, 2021 reflects
material changes that were made to the initial allocation of acquisition costs as aresult of finalizing the provisional accounting treatment for business combinations.
2.

Difference between total reporting segment income or loss and the amount reported on the Quarterly
Consolidated Statement of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
IncomeAmountReporting segment total

9,629

Income for “Other businesses” classification

828

Other adjustments
Operating profit reported on the Quarterly
Consolidated Statement of Income

352
10,810(Note) The segment information for the nine-month period ended July 31, 2021 reflects
material changes that were made to the initial allocation of acquisition costs as a resultof finalizing the provisional accounting treatment for business combinations.

 12 

II

Nine-month period ended July 31, 2022 (From November 1, 2021 to July 31, 2022)
1.

Information concerning the amount of net sales and income or loss by reporting segment, andinformation on disaggregation of revenue(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)

88,276

5,520

93,79727,5006,589

34,0899,969

839

10,809125,746

12,949138,695132
125,879–
12,949132
138,828–––

125,879

12,949138,828

7,929

865

8,794

Net sales
Rental contracts
Sales of merchandise andfinished goods
Other
Revenue from contracts withcustomers
Other revenues
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 andbusiness related to the Information Products Division, welfare-related business andother businesses.
2.

Difference between total reporting segment income or loss and the amount reported on the Quarterly
Consolidated Statement of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
Income3.

AmountReporting segment total
Income for “Other businesses” classification
Other adjustments

7,929
865
368

Operating profit reported on the Quarterly
Consolidated Statement of Income

9,162

Matters pertaining to changes in reporting segments, etc.
As described in “Changes in Accounting Policies,” the Company has applied the “Accounting Standard
for Revenue Recognition” and relevant ASBJ regulations from the beginning of the first quarter, andchanged the accounting treatment for revenue recognition. Accordingly, the Company has changed themethod of measuring profit or loss of operating segments.
For the nine-month period under review, as a result of this change, and compared with the figuresobtained by the previous method, net sales decreased by ¥639 million for the construction-related
businesses, and net sales decreased by ¥2,152 million and segment income decreased by ¥0 million
for other businesses.

 13 