Six-month Consolidated Financial Report for the Fiscal Yearending October 31, 2013 [Japan GAAP]
June 7, 2013
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
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
June 13, 2013
Scheduled date for commencement of dividend payments
July 8, 2013
Preparation of Quarterly Settlement Supplementary
Yes
Explanatory Materials
Quarterly Earnings Briefings
Yes(For institutional investors and analysts)
1. Operating Results for the Six-Month Period of the Fiscal Year Ending October 31, 2013
(November 1, 2012 - April 30, 2013)(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)

Revenues
Millions of yen%

Fiscal Year ending October 31,
54,73336.8
2013: Second quarter
Fiscal Year ended October 31,
40,012
13.3
2012: Second quarter(Note) Comprehensive income
Fiscal Year Ending October 31, 2013, Second Quarter
Fiscal Year Ended October 31, 2012, Second Quarter
Net Income per
Share
Fiscal Year ending October 31,
2013: Second quarter
Fiscal Year ended October 31,
2012: Second quarter

Operating Income

Ordinary Income

Millions of yen%

Millions of yen%

Millions of yen

Net Income
%

6,751

89.9

6,714

103.6

3,716

109.2

3,554

106.1

3,297

134.1

1,776

－

¥5,212 million (159.7%)¥2,007 million (538.3%)
Diluted Net
Income per Share

Yen

Yen

113.20

－

54.10

－

(2) Consolidated financial position
Total Assets

Net Assets

Shareholders’Equity Ratio

Millions of yen

Millions of yen

151,668

46,376

29.5

137,343

41,39929.2(Reference) Shareholders’ Equity
Fiscal Year Ending October 31, 2013 Second Quarter:
Fiscal Year Ended October 31, 2012:¥44,720 million¥40,106 million

Fiscal Year ending October 31,
2013: Second quarter
Fiscal Year ended October 31,
2012:

-1-

%

2. Dividends
Full Year Dividend per Share
End of 1Q
Fiscal year ended October 31, 2012
Fiscal year ending October 31, 2013
Fiscal Year ending October 31, 2013
(Projected)

End of 2Q

End of 3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

－
－

10.00
10.00

－

10.00

20.00

－

10.00

20.00

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

No

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 2013
(November 1, 2012 - October 31, 2013)(Percentages indicate percent change from prior consolidated fiscal year)

Revenues

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

103,410

20.1

9,570

48.8

9,230

55.6

4,530

26.7

137.98(Note) Has the Company revised its most recently released projected consolidated operating results during the quarter?
No
4. Other(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 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 principles 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, 2013 Second Quarter:
32,872,241 sharesFiscal year ended October 31, 2012:
32,872,241 shares(b) Number of shares of treasury stock at the end of the period
Fiscal year ending October 31, 2013 Second Quarter:
45,207 sharesFiscal year ended October 31, 2012:
39,955 shares(c) Average number of shares during the period (consolidated year-to-date)Fiscal year ending October 31, 2013 Second Quarter:
32,830,847 sharesFiscal year ended October 31, 2012 Second Quarter:
32,834,561 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.

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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 tothe Qualitative Information Concerning Consolidated Projected Operating Results on Page 7 of the Attachments forthe conditions used as assumptions for the projected operating results and matters to note before using the
projected operating results.

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○ 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

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

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

8

Consolidated interim Period ended April 30, 2013 ………………………………………………………

10

10

Quarterly Consolidated Statements of Comprehensive Income
Consolidated Interim Period ended April 30, 2013 ………………………………………………………

11(3) Quarterly Consolidated Statements of Cash Flows ………………………………………………………………… 12(4) Notes Relating to the Going Concern Assumption …………………………………………………………………

15(5) Business Segment Information ………………………………………………………………………………………

15(6) Note on Significant Changes to Shareholders’ Equity ……………………………………………………………

16

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1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative information concerning consolidated operating results< Management Environment > (From November 1, 2012 to April 30, 2013)
During the Kanamoto Group’s interim period, a mild recovery trend was evident in Japan’s economy, driven by
weakening of the yen that originated in a sense of anticipation toward fiscal and economic policy. At the sametime, however, worries about the risk of an economic downturn proved impossible to shake and the future
economic outlook remained uncertain, as businesses and consumers continued to fret about Europe’s
interminable debt problems, the delayed recovery of the overseas economy including China and the UnitedStates, the surge in the yen exchange rate and the jump in crude oil prices.
< Second Quarter Consolidated Operating Results > (From November 1, 2012 to April 30, 2013)
In the construction industry surrounding the Kanamoto Group, the so-called “15-month budget” is moving
forward and government construction investment is on an upward trend, primarily for public works focused onearthquake restoration and recovery works, mainly in the earthquake-devastated regions, and for nationwide
disaster prevention and disaster mitigation works. Brighter signs were evident for private sector investment as
well. Nevertheless, there were lingering sources of concern, including a shortage of skilled construction workers
and a sharp rise in labor costs, glitches in the construction tender system and delays in the start of construction.
Given such circumstances, the Kanamoto Group sought to enhance its integrated corporate vitality, andproceeded to strengthen its collaboration with Group firms and transactions with alliance firms and forge anorganization capable of demonstrating synergistic effects for the entire Group. The Group worked to thoroughly
analyze and improve its present operating processes and increase its efficiency as well, and undertook efforts tobuild an organization aimed at boosting earnings through a comprehensive focus on cost reductions.
As a result of these efforts, consolidated revenues for the interim period of the Business Period ending
October 2013 came to ¥54,733 million, up 36.8% compared with the same period of the previous consolidated
fiscal year. With regard to earnings, operating income jumped 89.9% from the same period of the previous
consolidated fiscal year to ¥6,751 million, ordinary income surged 103.6% year-on-year to ¥6,714 million andinterim period net income rose 109.2% year-on-year to ¥3,716 million.
Results by business segment were as follows.
[ Business related to the Construction Equipment Rental Division ]In the construction equipment rental business that is the main business of the Kanamoto Group, the Company
sought to strengthen the response capabilities of the entire Group through measures such as an aggressive
increase in assets, and appropriate asset allocation in various regions. Steps were taken to respond accurately
to rental demand that will grow in the future, including restoration and recovery works and decontaminationrelated works in earthquake stricken areas, coastline shore protection works and soil improvement works, roadrelated upkeep and maintenance works, disaster prevention and disaster mitigation works in areas throughout
Japan, large-scale projects, especially in the heart of the Tokyo metropolitan area, and various worksite needs.
Revenues by region in the construction equipment rental business expanded significantly in all regions comparedwith the same period of the previous fiscal year, growing 14.4% year-on-year in the Hokkaido Region and 39.7%
in the Tohoku Region, climbing 76.3% in the Kanto Region, expanding 59.3% in the Kinki & Chubu Region andrising 14.1% in the Kyushu & Okinawa Region.
In the Kanto Region and Kinki & Chubu Region, which were substantially higher than the previous year, thismainly reflected the effect of Unite Co., Ltd., a company newly included within the scope of consolidation.
Overseas sales of used construction equipment were up 9.3% compared with the same period one year
earlier, reflecting increased demand from other countries and the return of prices to more competitive levels
because of the sudden weakening of the yen.
As a result of these factors, consolidated interim period revenues for Kanamoto's construction-related
businesses increased 39.2% from the same period of the previous consolidated fiscal year to ¥51,420 million,
and operating income climbed 92.2% year-on-year to ¥6,557 million.

-5-< Other Businesses >In the steel products sales the Company is developing in Hokkaido, revenues rose 9.3% compared with thesame period of the previous year. This reflected factors such as comparatively steady sales for earthquake
recovery sites and sales in the Central Hokkaido region, and higher prices in the steel materials market. In
Kanamoto’s information and telecommunications-related division, on the other hand, both personal computerrental demand and employee dispatch varied in line with the Company’s business plan, edging up 0.8%.
As a result of these factors, for the consolidated interim period under review revenues from other businesses
were ¥3,313 million, up 8.0% compared with the interim period of the previous consolidated fiscal year, andoperating income was ¥63 million, off 0.8% year-on-year.
[ Business development issues deserving special mention and status of branch office changes ]To increase the operating efficiency of the Shutokenkousho Branch and the Shin-Kiba Branch, which wereclassified according to the types of products they handled at the same site, these two offices were integrated as
the Tokyo Chuo Branch.

-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 ¥14,325 million to ¥151,668 million
compared with the end of the prior consolidated fiscal year. This change mainly reflected an increase of ¥6,328
million in cash and deposits, mainly as the result of the collection of accounts receivable, trade, an increase of¥6,031 million in rental equipment and an increase of ¥1,874 million in investment securities because of higher
market prices on stock holdings.
Total liabilities were ¥105,292 million, an increase of ¥9,349 million compared with the end of the priorconsolidated fiscal year. The principal items contributing to this change were a combined total increase of ¥2,362
million in long-term bank loans due within one year and long-term bank loans, and a combined total increase of¥5,518 million in accounts payable, other, including installment payment contracts, and long-term accrued
expenses.
Total liabilities were ¥46,376 million, an increase of ¥4,976 million compared with the end of the priorconsolidated fiscal year. This mainly reflected interim period income before income taxes and minority interestsof ¥3,716 million and an increase in valuation difference on other investment securities of ¥1,010 million.
(3) Qualitative information concerning projected consolidated operating results
For details please see the Notification Concerning Revision of Projected Operating Results for the Business
Period Ending October 2013 that was released on May 31, 2013.

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

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3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Unit: Thousands of yen )Prior Consolidated
Fiscal Year(As of October 31, 2012)

Current Consolidated
Fiscal Year Interim Period(As of April 30, 2013)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable, trade
Securities
Merchandise inventories and products
Work in progress
Raw materials and supplies
Construction equipment
Income taxes receivable
Consumption tax receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total Current Assets
Fixed assets
Tangible fixed assets
Rental equipment
Accumulated depreciation
Net rental equipment assets
Buildings and structures
Accumulated depreciation
Net buildings and structures

19,387,264
23,560,769
350,000
521,615
53,18725,715,419
23,684,755
350,000
577,957
31,458213,177
2,578,013
10,676
57,839616,057
719,242‐384,382

212,8132,935,278－
3,600
870,174
723,969‐297,355

47,683,461

54,808,071

111,689,105‐65,644,512

122,423,304‐70,346,849

46,044,593

52,076,455

22,253,505‐14,565,048

22,269,004‐14,826,423

7,688,457

7,442,580

Machinery, equipment and vehicles

5,367,137

5,402,703

Accumulated depreciation‐4,771,202‐4,807,122

Machinery, equipment and vehicles, net

Land
Other
Accumulated depreciation
Other, net

595,935

595,580

29,548,049
1,579,813‐1,301,459

29,522,545
1,623,712‐1,321,492

278,353

302,219

84,155,389

89,939,382

192,389
203,849

231,868
185,011396,239

416,879

Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Reserve for investment losses

3,196,840
622,077
1,947,320‐590,261‐67,985

5,071,460
228,2121,820,978‐548,033‐67,985

Total Investments and Other Assets

5,107,991

6,504,632

Total Tangible Fixed Assets
Intangible fixed assets
Goodwill
Other
Total Intangible Fixed Assets
Investments and other assets

Total Fixed Assets
Total Assets-8-89,659,620

96,860,895

137,343,082

151,668,966

(Unit: Thousands of yen )Prior Consolidated
Fiscal Year(As of October 31, 2012)

Current Consolidated
Fiscal Year Interim Period(As of April 30, 2013)

Liabilities
Current liabilities
Notes and accounts payable, trade
Short-term bank loans
Long-term bank loans due within one year
Lease obligations
Corporate taxes payable
Accrued bonuses to employees
Allowance for disaster losses
Accounts payable, other
Other

18,011,309
834,688
12,671,669
1,106,553
2,344,595
774,430
10,014
9,386,566
1,641,311

18,894,548
669,622
12,816,863
1,108,988
2,925,765
913,215
3,455
10,353,212
1,488,677

Total Current Liabilities

46,781,139

49,174,349

Long-term bank loans
Lease obligations
Accrued employees retirement benefits
Long-term accrued expenses
Asset retirement obligations
Other

25,945,267
3,041,801
959
19,707,957
207,696258,310

28,162,300
3,121,083
4,343
24,260,225
195,673
374,811

Total Long-term Liabilities

49,161,991

56,118,436

95,943,130

105,292,785

Capital stock
Capital surplus
Retained earnings
Treasury stock

9,696,717
10,960,761
19,199,668‐27,523

9,696,717
10,960,761
22,697,509‐36,577

Total Shareholders’ Equity

39,829,623

43,318,410

Translation adjustments account331,641‐54,766

1,341,990
60,204

Total accumulated other comprehensive income

276,874

1,402,195

1,293,453

1,655,574

Long-term liabilities

Total liabilities
Net Assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Minority interests
Total Net Assets
Total Liabilities and Net Assets-9-41,399,951

46,376,180

137,343,082

151,668,966

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Interim Period ended April 30, 2013)(Unit: Thousands of yen )Prior Consolidated Fiscal
Year Interim Period(From November 1, 2011
to April 30, 2012)
40,012,788

Current Consolidated Fiscal
Year Interim Period(From November 1, 2012
to April 30, 2013)
54,733,916

Cost of revenues

27,504,985

37,016,305

Gross profit

12,507,803

17,717,610

Selling, general and administrative expenses

8,953,512

10,966,563

Operating income
Non-operating income
Interest income
Dividend income
Insurance benefits
Rents received
Cash bonus received
Amortization of negative goodwill
Foreign exchange gains
Other

3,554,290

6,751,046

4,882
16,28820,83922,76021,38934,91654,512
96,384

5,306
16,51750,98628,93334,673
27,113
169,287
153,443

Total non-operating income

271,972

486,260

414,932
25,34588,705427,297
22,49973,271

Revenues

Non-operating expenses
Interest expense
Loss on sale of notes receivable
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of fixed assets
Gain on sale of investment securities
Gain on liquidation of subsidiary
Subsidies
Other
Total extraordinary income
Extraordinary losses
Loss on sale or retirement of fixed assets
Valuation loss on investment securities
Other
Total extraordinary losses

528,983

523,068

3,297,279

6,714,239

17,654138
19,615
13,142
68

33,569－－22,26259

50,62055,89145,153990

24,841－
65

45,25424,906

Income before taxes and adjustments

3,302,645

6,745,223

Corporate, local and business taxes
Adjustment for corporate and other taxes

1,627,241‐128,1722,863,043‐179,890

Total corporate and other taxes

1,499,069

2,683,152

Income before minority interest

1,803,575

4,062,070

Minority interest in income or loss

27,211

345,555

1,776,364

3,716,514

Net income- 10 -

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Interim Period ended April 30, 2013)(Unit: Thousands of yen )Income before minority interest
Other comprehensive income
Valuation difference on other investment
securities
Translation adjustments accountPrior Consolidated Fiscal
Year Interim Period(From November 1, 2011
to April 30, 2012)
1,803,575

Current Consolidated Fiscal
Year Interim Period(From November 1, 2012
to April 30, 2013)
4,062,070

190,262

1,010,670

13,239139,866

203,5021,150,537

2,007,078

5,212,607

1,967,996

4,841,835

39,081

370,772

Total other comprehensive income
Quarter comprehensive income(Breakdown)Comprehensive quarterly income attributable toowners of the parent
Comprehensive quarterly income attributable tominority interests- 11 -

(3) Quarterly Consolidated Statements of Cash Flows(Unit: Thousands of yen )Prior Consolidated Fiscal
Year Interim Period(From November 1, 2011
to April 30, 2012)

Current Consolidated Fiscal
Year Interim Period(From November 1, 2012
to April 30, 2013)

Cash flow from operating activities
Income before taxes and adjustments
Depreciation and amortization expense
Amortization of goodwill(Gain) loss on sale or retirement of fixed assets(Gain) loss on liquidation of subsidiary
Installment purchases of assets for small-value
rentals
Reclassification of cost of sales associated withdisposal of construction equipment
Reclassification of cost of sales associated withdisposal of rental assets
Expenditures for acquisition of construction
equipment
Expenditures for acquisition of rental assets(Gain) loss on valuation on investment securities(Gain) loss on sale of investment securities
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in accrued bonuses to
employees
Increase (decrease) in accrued employees
retirement benefits
Increase (decrease) in retirement allowances todirectors and auditors
Interest revenue and dividend income
Interest expense on installment purchases ofrental assets
Interest expense
Foreign exchange (gain) loss
(Increase) decrease in notes and accounts
receivable(Increase) decrease in inventory assets
Increase (decrease) in accounts payable, trade
Increase (decrease) in accounts payable, otherOther

3,302,645
4,949,418
89,63727,499‐19,615

6,745,223
7,254,328
12,798‐8,727－

14,756

5,975

2,862

5,173

356,309618,451‐642,111‐486,236‐781,092
9‐138‐1,563,082－－‐68,070‐32,670

141,033

144,358‐34,9813,384‐205,964－‐21,170‐21,823

103,721

136,027

414,932‐8,684427,297‐100,925

503,955‐84,619‐177,357
2,038,014‐65,782443,726‐30,829
832,124
163,341‐1,408Subtotal

10,363,551

14,018,160

Interest and dividends received
Interest expense
Payments for loss on disaster
Payment of corporate and other taxes

21,191‐486,625‐70,604‐264,829

21,824‐581,298－‐2,259,707

Cash flow from operating activities

9,562,683

11,198,980- 12 -Cash flow from investing activities
Funds used for the purchase of tangible fixed
assetsFunds provided from the sale of tangible fixed
assetsFunds used for the purchase of intangible fixed
assetsFunds used for the purchase of investment
securities
Funds provided from sale of investment
securities
Funds used for the acquisition of subsidiarystock
Funds provided from sale of subsidiary stock
Funds provided from liquidation of subsidiary
Funds provided from collection of short-termloans receivable
Other
Cash flow from investing activities- 13 -‐322,113‐239,744

103,598

97,065‐6,000‐17,757‐40,171‐314,646

1,599－‐28,701

－

5,000
7,247

－
－

44,639307,193

8,881

8,605

‐226,018‐159,282

(Unit: Thousands of yen )Current Consolidated Fiscal
Year Interim Period(From November 1, 2012
to April 30, 2013)

Prior Consolidated Fiscal
Year Interim Period(From November 1, 2011
to April 30, 2012)
Cash flow from financing activities
Increase (decrease) in short-term bank loans
Funds provided by long-term bank loans
Funds used to repay long-term bank loans
Funds used to redeem corporate bonds
Funds used for repayment of installment
obligations
Funds used for repayment of lease obligations
Funds used for the purchase of treasury stock
Funds provided from the sale of treasury stock
Payment of dividends
Cash dividends paid for minority shareholders‐2,207,063
7,584,125‐5,483,478‐11,000‐219,286
8,800,000‐6,764,235－‐3,956,471‐5,231,286‐621,677‐1,583297‐330,699－‐1,043,128‐9,053－‐328,471‐1,006

Cash flow from financing activities‐5,027,551‐4,796,468

5,823

88,9704,314,936

6,332,199

20,374,836

19,717,264‐32,208－－‐4,04524,657,564

26,045,419

Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and equivalents
Balance of cash and equivalents at beginning of
periodIncrease (decrease) in cash and equivalents inconjunction with change in accounting period of
consolidated subsidiary
Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries from consolidation
Balance of cash and equivalents at end of period- 14 -

(4) Notes Relating to the Going Concern Assumption
The Company had no material items to report.
(5) Business Segment Information
I Interim period of the prior consolidated fiscal year (From November 1, 2011 to April 30, 2012)
1. Information concerning revenues and profit or loss of each reporting segment(Unit: Thousands of yen)
Reporting segment
Business related to theConstruction Equipment
Rental Division
Revenues
Revenues from customers
Sales or transfers between
segments
Total

Other businesses(See Note)

Total

36,944,706

3,068,081

40,012,788

－

－

－

36,944,706

3,068,081

40,012,788

3,411,319

63,6103,474,929

Segment operating income(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: Thousands of yen)Interest

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

3,411,319
63,61079,360Operating income reported on the Quarterly
Consolidated Statements of Income

3,554,290

II Interim period of the current consolidated fiscal year (From November 1, 2012 to April 30, 2013)
1. Information concerning revenues and profit or loss of each reporting segment(Unit: Thousands of yen)
Reporting segment
Business related to theConstruction Equipment
Rental Division
Revenues
Revenues from customers
Sales or transfers between
segments
Total
Segment operating income

Other businesses(See Note)

Total

51,420,210

3,313,705

54,733,916

－

－

－

51,420,210

3,313,705

54,733,916

6,557,148

63,0776,620,225(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.

- 15 -

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: Thousands of yen)Interest

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

6,557,148
63,077130,821

Operating income reported on the Quarterly
Consolidated Statements of Income

6,751,046(6) Note on Significant Changes to Shareholders’ Equity
The Company had no material items to report.

- 16 -