Three-month Consolidated Financial Report for the Fiscal Year ending
October 31, 2015 [Japan GAAP]
March 6, 2015
Listed Company Name
Kanamoto Co., Ltd.
Company Code Number
9678
Listing Exchanges
Tokyo Stock Exchange, Sapporo Stock Exchange(URL
http://www.kanamoto.co.jp)
Representative
Kanchu Kanamoto
President and CEO
Inquiries
Nobuhito Utatsu
Director and Senior Executive Corporate Officer, Division Manager, Accounting
Division
TEL 81-11-209-1600
Please send inquiries in English to takayama@kanamoto.co.jp
Scheduled date for submission of Quarterly Report
March 13, 2015
Scheduled date for commencement of dividend payments–
Preparation of Quarterly Settlement Supplementary
No
Explanatory Materials
Quarterly Earnings Briefings
No
1. Consolidated Operating Results for the Three-Month Period of the Fiscal Year Ending October 31, 2015
(November 1, 2014 – January 31, 2015)(1) Consolidated operating results (Cumulative)(Numbers less than one million yen have been rounded down)(Percentages shown are the percent increase or decrease compared to the prior consolidated fiscal year)

Net Sales
Fiscal Year ending October 31,
2015: First quarter
Fiscal Year ended October 31,
2014: First quarter

Operating Income

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

36,327

9.6

6,306

11.6

6,373

12.1

4,062

21.4

33,148

15.5

5,651

45.6

5,684

47.5

3,346

55.6

(Note) Comprehensive income(millions of yen)
Fiscal Year Ending October 31, 2015, First Quarter
Fiscal Year Ended October 31, 2014, First Quarter

4,539 (22.2%)
3,715 (34.5%)
Net Income per
Share on a Fully
Diluted BasisNet Income per
Share
Fiscal Year ending October 31,
2015: First quarter
Fiscal Year ended October 31,
2014: First quarter

Yen

Yen

112.72

－

92.86

－

(2) Consolidated financial position
Total Assets
Fiscal Year ending October 31,
2015: First quarter
Fiscal Year ended October 31,
2014:

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

205,755

69,32932.6

188,491

65,513

33.6(Reference) Shareholders’ Equity(millions of yen)
Fiscal Year Ending October 31, 2015 First Quarter
Fiscal Year Ended October 31, 2014

67,03663,365－1－2. Dividends
Annual Dividends per Share
End of 1Q
Fiscal year ended October 31, 2014
Fiscal year ending October 31, 2015

End of 2Q

End of 3Q

Year-end

Full-year

Yen

Yen

Yen

Yen

Yen

－
－

15.00

－

20.00

35.00

15.00

－

15.00

30.00

Fiscal Year ending October 31, 2015
(Projected)(Notes) 1. Has the Company revised its most recently released dividend projection:

No

2. Breakdown of second quarter dividend for the fiscal year ended October 31, 2014
Ordinary dividend 10.00yen
Commemorative dividend 5.00 yen
Breakdown of (planned) year-end dividend for the fiscal year ended October 31, 2014
Ordinary dividend 10.00 yen
Commemorative dividend 10.00 yen
3. Projected Consolidated Operating Results for the Fiscal year ending October 2015
(November 1, 2014 – October 31, 2015)(Percentages show the change from the prior year)

Net SalesInterim period (cumulative)
Full year

Operating Income Ordinary Income

Net Income per
Share

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

65,900128,600

2.6
2.4

10,28016,9602.1
3.1

10,06016,610

2.0
3.3

5,860
9,520

3.7
2.4

162.60264.16(Note) Has the Company revised its most recently released projected consolidated operating results during the quarter:
No

－

2

－

Notes(1) Were there changes to material subsidiaries during the period under review (transfer of specified subsidiaries in
conjunction with revisions to the scope of consolidation):
No
Company newly included－
Company newly excluded－(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 restatement(a) Changes in accounting policy in conjunction with revision of accounting standards:
No(b) Changes other than the above:No(c) Changes in accounting estimates:(d) Retrospective restatements:

NoNo(4) Number of shares issued (common stock)(a) Number of shares outstanding at the end of the period (including treasury stock)
Fiscal year ending October 31, 2015 First Quarter
36,092,241 sharesFiscal year ended October 31, 2014
36,092,241 shares(b) Number of shares of treasury stock at the end of the period
Fiscal year ending October 31, 2015 First Quarter
52,930 sharesFiscal year ended October 31, 2014
52,930 shares(c) Average number of shares during the period (consolidated year-to-date)Fiscal year ending October 31, 2015 First Quarter
36,039,311 sharesFiscal year ended October 31, 2014 First Quarter
36,040,454 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 andExchange 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 6 of the Attachments for the conditions used as assumptions forthe projected operating results and matters to note before using the projected operating results.
(Revision of unit for presentation of amounts)
In past years the Company reported amounts in its quarterly consolidated financial statements in thousands of yen.
Beginning from the end of the prior consolidated fiscal year, the Company has revised its reporting convention tomillions of yen. To facilitate comparison, the amounts for the first quarter consolidated financial statements of the priorconsolidated fiscal year also have been restated in units of millions of yen.

－

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) Qualitative Information Concerning Projected Consolidated Operating Results………………………………..

6

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

6

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

7(1) Quarterly Consolidated Balance Sheets ……………………………………………………………………………
(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ………………………………………………………………………………………………………………….
Quarterly Consolidated Statements of Income

7

Consolidated Three-month Period ended January 31, 2015 ………………………………………………

9

9

Quarterly Consolidated Statements of Comprehensive Income
Consolidated Three-month Period ended January 31, 2015 ………………………………………………

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

11

－

4

－

1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results[ Management Environment (From November 1, 2014 to January 31, 2015) ]During Kanamoto’s first quarter consolidated accounting period, Japan’s economy maintained a modest
recovery trend, including an ongoing recovery in corporate earnings against the backdrop of aggressive
economic measures and a supportive monetary policy. Despite this positive news, however, the uncertain future
outlook lingered because of the prolonged effects of the consumption tax hike and concerns regarding thedownswing in the overseas economic environment.
[ First Quarter Operating Results (From November 1, 2014 to January 31, 2015) ]In the construction industry related to the Kanamoto Group, construction demand was supported by public
works projects as well as the rising trend in capital expenditures by private sector firms, and remained brisk. On
the other hand, an environment persisted in which a shortage of skilled workers, an unresolved issue that has
become a structural problem, was combined with uncertainty factors that included concerns about the rising costof materials and equipment, which has accompanied the expansion construction demand.
In light of such conditions, the Kanamoto Group continued to focus on critical items, working to strengthen its
business structure for the future and improve its financial position, based on the various measures in its Mediumterm Management Plan (fiscal 2014 - fiscal 2016). In addition we actively pursued effective business measures tosecure earnings opportunities for the entire group, including a regional strategy tailored closely to changes inJapan’s construction market as well as a strategy of overseas development.
As a result, net sales for the consolidated three-month period increased 9.6% compared with the same period
one year earlier to ¥36,327 million. In terms of earnings, operating income expanded 11.6% from the same
period of the prior consolidated fiscal year to ¥6,306 million, ordinary income rose 12.1% year-on-year to ¥6,373
million and first quarter year-to-date net income increased 21.4% year-on-year to ¥4,062 million.
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 focus, construction equipment rental
demand remained strong throughout Japan. In addition to full-scale earthquake reconstruction efforts, demand
was supported by disaster prevention works and infrastructure-related projects. Furthermore, to optimize asset
positioning, Kanamoto strategically transferred certain of its assets to the Tohoku Region, where demand
continues at a high level, and worked to maintain and improve its stable utilization ratios.
Used construction equipment sales jumped 164.0% year-on-year, as Kanamoto pursued equipment sales
according to its plan in order to maintain an appropriate asset portfolio.
As a result of the above factors, first quarter net sales for Kanamoto’s construction-related businesses
improved 9.0% from the same period of the prior consolidated fiscal year to ¥34,157 million, and operating
income increased 11.0% year-on-year to ¥6,148 million.
< Other businesses >In the Company’s other businesses, both steel products-related sales and sales in the information andtelecommunications-related division expanded. Net sales rose 19.4% from the same period of the priorconsolidated fiscal year to ¥2,170 million, and operating income climbed 88.8% year-on-year to ¥66 million.
< Change in number of branches >The Company opened two new branches during the first quarter consolidated accounting period. It did not
close any branches.
New branches: Sendai-Kita Branch (Kurokawa-gun, Miyagi Prefecture), Hitachi Branch (Hitachi, Ibaraki
Prefecture)－5－(2) Qualitative Information Concerning Consolidated Financial Position
Assets, liabilities and net assets
Total assets at the end of the first quarter under review increased by ¥17,263 million compared with the end of
the prior consolidated fiscal year to ¥205,755 million. This mainly reflected an increase of ¥2,437 million in cash
and deposits from the steady collection of receivables, and increases of ¥5,299 million in notes and accounts
receivable-trade and ¥7,615 million in rental equipment, respectively, that accompanied the growth in net sales.
Total liabilities were ¥136,425 million, an increase of ¥13,447 million compared with the end of the previous
consolidated fiscal year. The principal items contributing to this change were an increase of ¥5,006 million in notes
and accounts payable, trade, an increase of ¥2,558 million in income taxes payable and an increase of ¥6,023
million in long-term accrued expenses.
Total net assets were ¥69,329 million, ¥3,816 million higher than at the end of the previous consolidated fiscal
year. This was mainly because of the net income reported for the first quarter of ¥4,062 million.

(3) Qualitative Information Concerning Projected Consolidated Operating Results
There are no revisions to the full-year projected operating results that the Company announced in the Financial
Statements Bulletin for the Fiscal Year Ended October 31, 2014 (Japan GAAP) released on December 10, 2014.

2. Matters Concerning Summary Information (Notes)
The Company had no material items to report.

－

6

－

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Unit: Millions of yen)
Prior Consolidated
Fiscal Year(As of October 31, 2014)

Current Consolidated
Fiscal Year First Quarter(As of January 31, 2015)

31,65033,651
350
595
50
227
6,566
43
656
515
－227
74,08034,087
38,951
350
712
61
229
7,155
93
352
498
－248
82,244

150,727－85,083
65,644
23,691－15,663
8,027
5,541－4,882659
31,4591,563－1,013549
106,341

161,025－87,765
73,25923,937－15,845
8,092
5,560－4,880680
31,6992,217－1,067
1,150
114,881

57
208
266

57
200
257

6,286
265
1,854
－491
－110
7,804
114,411
188,491

6,849
273
1,878
－520
－110
8,370
123,510
205,755

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Costs on uncompleted construction contracts
Raw materials and supplies
Construction machine parts
Consumption taxes receivable
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

－

7

－

(Unit: Millions of yen)
Prior Consolidated
Fiscal Year(As of October 31, 2014)

Current Consolidated
Fiscal Year First Quarter(As of January 31, 2015)

23,134612
11,883
995
3,729
850
16,4602,988
60,65528,1401,629
13,381
1,242
2,051
423
19,0192,398
68,287

21,6982,082
37,85316
231
440
62,322
122,978

20,951
2,465
43,87618
243
582
68,138
136,425

13,652
14,91632,860－56
61,373

13,652
14,91636,201－56
64,714

1,977
－
14
1,992
2,147
65,513
188,491

2,284
－1
38
2,322
2,292
69,329205,755

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-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total Net Assets
Total Liabilities and Net Assets

－

8

－

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Three-month Period ended January 31, 2015)(Unit: Millions of yen)
Prior Consolidated Fiscal Current Consolidated Fiscal
Year First Quarter
Year First Quarter(From November 1, 2013 (From November 1, 2014
to January 31, 2014)
to January 31, 2015)
Net sales
33,14836,327
Cost of sales
21,772
24,062Gross profit
11,375
12,265
Selling, general and administrative expenses
5,724
5,959
Operating income
5,651
6,306
Non-operating income
Interest income
00Dividend income
22
26
Insurance income
25
4
Rent income
13
18
A receipt bonus
190Foreign exchange gains
111
141
Reversal of allowance for doubtful accounts
29
7
Other
47
32
Total non-operating income
271
232
Non-operating expenses
Interest expenses
172
126
Loss on sales of notes payable
10
5
Other
55
34
Total non-operating expenses
238
165
Ordinary income
5,684
6,373
Extraordinary income
Gain on sales of noncurrent assets
19
7
Subsidy income
02－Compensation income for damage
118
－
Other
0
Total extraordinary income
19128
Extraordinary losses
Loss on sales and retirement of noncurrent assets
6
10
Total extraordinary losses
6
10
Income before income taxes and minority interests
5,698
6,490
Income taxes-current
1,850
2,014
Income taxes-deferred
274
271
Total income taxes
2,124
2,285
Income before minority interests
3,573
4,204
Minority interests in income
226
142
Net income
3,346
4,062

－

9

－

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Three-month Period ended January 31, 2015)(Unit: Millions of yen)
Prior Consolidated Fiscal Current Consolidated Fiscal
Year First Quarter
Year First Quarter(From November 1, 2013
(From November 1, 2014
to January 31, 2014)
to January 31, 2015)
3,573
4,204

Income before minority interests
Other 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 minority
interests

－

10

－

167
－
－25
142
3,715

306
－1
29
334
4,539

3,489

4,392

226

147

(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 had no material items to report.
(Business Segment Information)【 Segment information 】
I First quarter of the prior consolidated fiscal year (From November 1, 2013 to January 31, 2014)
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
Net sales
Net sales to outside
customers
Net sales or transfers
between related segments
Total

Other Businesses(See Note)

Total

31,3301,817

33,148－－－31,3301,817

33,148Segment income
5,539
35
5,574
(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

5,539
35
77

Operating income reported on the Consolidated
Quarterly Statements of Income

5,651

3. Information concerning fixed asset impairment loss and goodwill by reporting segment
The Company had no material items to report.
II First quarter of the current consolidated fiscal year (From November 1, 2014 to January 31, 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
Net sales
Net sales to outside
customers
Net sales or transfers
between related segments

Other Businesses(See Note)

Total

34,1572,170

36,327

－

－

－

Total

34,1572,170

36,327

Segment income

6,148

66

6,214

－

11

－

(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

6,148
66
91

Operating income reported on the Consolidated
Quarterly Statements of Income

6,306

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

－

12－