Six-month Consolidated Financial Report for the Fiscal Year ending
October 31, 2020 [Japan GAAP]
June 5, 2020
Listed Company Name
Company Code Number
Listing Exchanges(URL
Representative
Inquiries

Kanamoto Co., Ltd.
9678
Tokyo Stock Exchange, Sapporo Stock Exchange
https://www.kanamoto.co.jp)
Tetsuo Kanamoto
President and CEO
Hiroyuki Isono
Director and Corporate Officer, Division
Manager, Accounting Division
TEL 81-11-209-1600

Scheduled date for submission of Quarterly Report

June 11, 2020

Scheduled date for commencement of dividend payments

July 3, 2020

Preparation of Quarterly Settlement Supplementary
Explanatory Materials

Yes

Quarterly Earnings Briefings

Yes (For institutional investors and analysts)(Numbers less than one million yen have been rounded down)

1. Consolidated Operating Results for the Six-Month Period of the Fiscal Year Ending October 31, 2020
(November 1, 2019 – April 30, 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%

Millions of yen

Fiscal Year ending October 31,
91,414−0.5
2020: Second quarter
Fiscal Year ended October 31,
91,856
7.6
2019: Second quarter(Note) Comprehensive income (millions of yen)
Fiscal Year Ending October 31, 2020, Second Quarter
Fiscal Year Ended October 31, 2019, Second Quarter

Millions of yen%

5,344 −26.3

11,266

11,511

7,255

2.5

3.2

5,327 (−29.5%)
7,560 ( 5.4%)

Yen

138.33－187.62－(2) Consolidated Financial Position
Net Assets

Millions of yen

Fiscal Year ending October 31,
277,035
2020: Second quarter
Fiscal Year ended October 31,
268,1822019(Reference) Equity (millions of yen)
Fiscal Year Ending October 31, 2020, Second Quarter
Fiscal Year Ended October 31, 2019－%

9,046 −21.4

YenTotal Assets

Millions of yen

9,239 −18.0

Net Income per
Share on a Fully
Diluted BasisNet Income per
Share
Fiscal Year ending October 31,
2020: Second quarter
Fiscal Year ended October 31,
2019: Second quarter%

1 －Equity Ratio

Millions of yen%

124,549

42.5

121,77943.1

117,735
115,507

7.7

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

End of firstquarterFull-year

Yen

Yen

Yen

Yen

Yen

－
－

25.00
25.00

－

40.00

65.00

Fiscal Year ending October 31, 2020
(Projected)

－

40.00

65.00

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

No

Fiscal year ended October 31, 2019
Fiscal year ending October 31, 2020

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

Millions of yen%

Millions of yen%

182,700

1.1

16,100−9.8

Ordinary profit
Millions of yen%

16,400 −10.3

Profit Attributableto Owners of
ParentMillions of yen

Net Income per
Share

%

Yen

9,900 −13.4

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

－

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:(c) Changes in accounting estimates:

Yes
Yes

(d) Retrospective restatements: No(Note) These changes fall under Article 10-5 of the Regulation on the Terminology, Forms, and Preparation
Methods of Quarterly Consolidated Financial Statements. For details please refer to “2. Quarterly
Consolidated Financial Statements and Notes (4) Notes Concerning Quarterly Consolidated Financial
Statements (Change in Accounting Policy)” on page 13 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 Second 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 Second Quarter:
489,542 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 Second Quarter:
38,633,054 sharesFiscal year ended October 31, 2019 Second Quarter:
38,672,755 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 anumber 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.
Procedure for obtaining the Quarterly Settlement Supplementary Explanatory Materials and Quarterly Earnings Briefing
The Company plans to hold a briefing for institutional investors and analysts on Monday, June 8, 2020.
Following the briefing, the Company will upload the briefing highlights and discussion (voice recording) on the
Company’s website as quickly as possible, together with the Quarterly Earnings Briefing materials used that day.

－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 …………………………………………….

6(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results …………….

6

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

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 Interim Period Ended April 30 ……………………………………………………….……….

9

9

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

10(3) Quarterly Consolidated Statements of Cash Flows ……………………………………………………………….

11(4) Notes Concerning Quarterly Consolidated Financial Statements ……………………………………………….

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

13(Notes on Significant Changes to Shareholders’ Equity) …………………………………………………………

13(Change in Accounting Policy) ………………………………………………………………………………………

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

14

－

4 －

1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results
During the first two quarters of Kanamoto’s current consolidated fiscal year, Japan’s economy followed amoderate recovery trend despite weak exports and production, as employment and income conditions continued
to improve against the backdrop of strong corporate earnings. Conditions grew increasingly severe because of
the global coronavirus pandemic, however, and some weakness in economic activity and turmoil in the stock
market were evident as well.
In the construction industry related to the Kanamoto Group, public investment remained firm, focused on
disaster prevention and mitigation-related works in response to recent devastating natural disasters and on
maintenance and renewal of Japan’s aging social infrastructure, and the business environment remained
relatively strong, with private sector construction investment and redevelopment work in the Tokyo metropolitan
area being notable bright spots. On the other hand, the spread of the COVID-19 coronavirus infection began tohave a negative impact, with some construction being suspended or postponed.
Given such circumstances, to realize its new Medium-Term Management Plan (FY2020-FY2024) “Creative 60”
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. Kanamoto also strove to target
and focus on certain markets in response to the business environment, while maintaining its growth trajectory,
and strengthened its ability to respond to industry restructuring and frequent occurrence of natural disasters in
the future.
For the interim period of the current consolidated fiscal year, the Company reported net sales of ¥91,414
million, down 0.5% compared with the same period of the previous consolidated fiscal year. In terms of earnings,
operating profit decreased 18.0% from the same period of the prior consolidated fiscal year to ¥9,239 million,
ordinary profit fell 21.4% year-on-year to ¥9,046 million, and interim period profit attributable to owners of parent
declined 26.3% year-on-year to ¥5,344 million, reflecting investment in the human resources who will build theCompany in the future and strict control over used construction equipment sales aimed at boosting profitability of
the construction equipment rental business.
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 was supported by activities such as infrastructure-related works, works related to disaster prevention
and mitigation, energy-related works, and redevelopment works, and remained brisk as a whole. Coronavirus
infections caused work suspensions or postponements at some construction sites, however, and Kanamoto’s
business was affected as a result.
In addition, along with strengthening its support organization for natural disaster restoration and reconstruction
operations, the Kanamoto Group strengthened its response capabilities by further enhancing its product lineup
and focusing on appropriate rental asset deployment, to enable a rapid response to future changes in demand ineach region.
Used construction equipment sales fell 13.7% from the corresponding period of the prior consolidated fiscal
year.
As a result of the above factors, interim period net sales for Kanamoto’s construction-related businesses
edged up 0.6% from the prior consolidated fiscal year to ¥83,062 million, and operating profit decreased 18.5%
year-on-year to ¥8,594 million.
< Other businesses >In the Company’s other businesses, sales from welfare-related businesses expanded steadily, but both thesteel products-related business and information and telecommunications-related business were also affected by
the coronavirus pandemic. As a result, net sales slipped 9.8% from the same period of the prior consolidated
fiscal year to ¥8,351 million, and operating profit contracted by 15.3% year-on-year to ¥428 million.
－

5 －(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 ¥8,852 million compared with the end of
the prior consolidated fiscal year to ¥277,035 million. This change mainly reflected an increase in rental
equipment of ¥8,150 million.
Total liabilities were ¥152,485 million, an increase of ¥6,082 million compared with the end of the priorconsolidated fiscal year. The principal items contributing to this change were an increase of ¥875 million inaccounts payable-other and an increase of ¥4,940 million in long-term accounts payable-other, and a decreaseof ¥1,060 million in income taxes payable.
Total net assets came to ¥124,549 million, ¥2,770 million higher than at the end of the prior consolidated fiscal
year. This was mainly because of profit attributable to owners of parent for the interim period of ¥5,344 million, adecrease of ¥986 million from the acquisition of obtain treasury stock, and a decrease of ¥1,549 million for
dividends from surplus.
Consolidated cash flows
Cash and cash equivalents (“cash”) at the end of the consolidated interim period increased by ¥2,847 million
compared with the end of the prior consolidated fiscal year to ¥46,358 million. Cash flows for the consolidated
interim period under review are discussed below.
(Cash flows from operating activities)
Cash generated from operating activities decreased 17.3% from the same period of the prior consolidated
fiscal year to ¥21,108 million.
This mainly reflected profit before income taxes of ¥8,754 million, depreciation and amortization of ¥14,312
million, an increase of ¥2,661 million in accounts receivable, trade, and decreases of ¥2,456 million in
expenditure by the assets acquisition for rentals and ¥3,980 million in income taxes paid, respectively.
(Cash flows from investing activities)
Cash flow used in investing activities was ¥1,751 million, compared with ¥1,649 million in the same period of
the prior consolidated fiscal year.
This mainly reflected the purchase of property, plant and equipment of ¥1,325 million.
(Cash flows from financing activities)
Cash flow used in investing activities was ¥16,522 million, compared with ¥10,038 million in the same period of
the prior consolidated fiscal year.
This mainly reflected proceeds from long-term loans payable of ¥6,300 million, and repayments of installment
payables of ¥13,779 million, repayments of long-term loans payable of ¥6,305 million, and cash dividends paid of¥1,548 million, respectively.
(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results
Because it is difficult at this time to reasonably estimate the effect on Kanamoto’s businesses and operating
results in the third quarter and beyond from the spread of the COVID-19 coronavirus, the Company has not madeany revisions to the full-year projected operating results it announced in the Financial Statements Bulletin for the
Fiscal Year Ended October 31, 2019 (Japan GAAP) released on December 6, 2019.
Going forward, Kanamoto will promptly disclose changes to its projected operating results if it has judged
revisions are necessary.

－

6 －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－

7 －As of April 30, 2020

43,751
39,574

46,59837,286

6,347

5,973

1,017
33
800
17,5672,527−225
111,393

1,244
45
1,154
17,6182,879−210
112,589

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

232,093−138,087
94,00538,424−22,550
15,874
7,918−6,414
1,504
37,3082,536−1,727809
149,502

201
1,478
1,680

130
1,478
1,608

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

8,607
2,069
3,285
−627
13,334
164,445
277,035

(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－

8 －As of April 30, 2020

33,657
1,120
11,147
885
4,245
1,320
23,3702,772
78,51933,3801,660
10,731
1,060
3,184
1,458
24,246
3,155
78,875

17,2061,800
48,043285
492
55
67,883
146,403

17,6162,103
52,984337
507
61
73,609152,485

17,82919,324
76,638−9113,783

17,82919,32480,433−996
116,591

1,918

1,334

0
−192
−2

－
−164
−25

1,723

1,144

6,272
121,779
268,182

6,814
124,549
277,035

(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)Six months endedApril 30, 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 and associates
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－

9 －Six months endedApril 30, 2020

91,856
63,35028,505
17,23911,266

91,41464,07527,33818,098
9,239

12
64
40
322
441

18
72
44
273
409

46
0
46
2
23
77
195
11,511

40
115
－
328
37
80
602
9,046

26
19
14
61

4
12
－
16

67
3
－
70
11,501
3,819
−162
3,657
7,844
588
7,255

114
66
127
308
8,754
2,919
−84
2,835
5,918
574
5,344

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Interim Period Ended April 30)(Unit: Millions of yen)Six months endedApril 30, 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－

10 －Six months endedApril 30, 2020

7,844

5,918

−250
−0
−33
−0
−284
7,560

−589
−0
27
−29
−590
5,327

6,972

4,764

587

562

(3) Quarterly Consolidated Statements of Cash Flows(Unit: Millions of yen)Six months endedApril 30, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sales and retirement of non-current assets
The amount of cost price transfer with asset sell-off forrentals
Expenditure by the construction equipment and supplies
Expenditure by the assets acquisition for rentals
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss on valuation of shares of subsidiaries and associates
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
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)
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
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Purchase of shares of subsidiaries and associates
Payments of loans receivableCollection of loans receivableCollection of long-term accounts receivable-other
Other, net
Net cash provided by (used in) investing activities

－

11 －

Six months endedApril 30, 2020

11,501
13,46271
41

8,754
14,312
71
110

516

511

−434
−2,520
－
−14
3
36
159
−1
−77

−781
−2,456
127
－
66
258
137
8
−91

169

224

46
−32

40
110

−4,361

2,661

−391

−593

7,002

−541

1,675
490
27,34469−212−1,67325,5282,022
311
25,26680−259−3,98021,108−190
190−1,433
27
−185
−4
23
−161
－
－
33
40
10
−1,649−190
190−1,325
5
−189
−3
－
−191
−133
−50
127
21
−11
−1,751

(Unit: Millions of yen)Six months endedApril 30, 2019
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
Proceeds from issuance of common shares
Proceeds from sales of treasury shares
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Other, net
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
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

－

12 －

Six months endedApril 30, 2020

−95
1,060
−6,684−12,295
−523
8,353
2,364
−0
−1,411
−22

540
6,300
−6,305−13,779
−721
－
－
−986
−1,548
−20

−783

－

－
−10,038−0
13,84036,733−0−16,52213
2,847
43,511

390－

50,96346,358

(4) Notes Concerning Quarterly Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(Notes on Significant Changes to Shareholders’ Equity)
The Company had no material items to report.
(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
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 profit before income taxes for the interim period ended April 30
increased by ¥497 million, respectively, compared with what they otherwise would have been 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.

－

13 －

(Business Segment Information)
I Interim period of the prior consolidated fiscal year (From November 1, 2018 to April 30, 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
Segment profit

Other Businesses(See note)

Total

82,602

9,253

91,856－－－

82,602

9,253

91,856

10,550505

11,056(Note) The “Other businesses” classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division and 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

10,550

Income for “Other businesses” classification

505

Other adjustments

209

Operating profit reported on the Consolidated
Quarterly Statements of Income
3. Information concerning fixed asset impairment loss and goodwill by reporting segment
The Company had no material items to report.

－

14 －

11,266

II

Interim period of the current consolidated fiscal year (From November 1, 2019 to April 30, 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
Segment profit

Other Businesses(See note)

Total

83,062

8,351

91,414－－－

83,062

8,351

91,414

8,594

428

9,023

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

8,594

Income for “Other businesses” classification

428

Other adjustments

216

Operating profit reported on the Consolidated
Quarterly Statements of Income

9,239

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 consolidated accounting
period certain domestic subsidiaries have changed their method for depreciation of rental equipment fromthe declining balance method to the straight-line depreciation method.
In conjunction with this change, the income of the Business related to the Construction Equipment Rental
Division reporting segment for the interim consolidated accounting period under review increased by ¥497
million compared with what it otherwise would have been had the accounting standard used in past periods
been applied.

－

15 －