Fiscal Year ending October 31, 2004

Summary of Company Interim Financial Statements
June 10, 2004
Listed Company Name

Kanamoto Company, Ltd.

Company Code Number

9678

Listing Exchanges

Tokyo Stock Exchange, Sapporo Stock Exchange

Head Office Address

1-19, Odori Higashi 3-chome, Chuo-ku, Sapporo, Hokkaido Japan 060-0041(URL

http://www.kanamoto.co.jp)

Representative

Kanchu Kanamoto

Inquiries

Nobuhito Utatsu

President

Director & Corporate Officer, Division Manager, Accounting Division
TEL 81-11-209-1600

Please send inquiries in English to takayama@kanamoto.co.jp.
Date of Report to the Board of Directors
June 10, 2004
Interim Dividend System
The Company has an interim dividend system
Interim Dividend Payment Date
July 20, 2004
Has the Company adopted a Unit Stock System?
Yes (1 unit equals 1,000 shares)
１．Operating Results for the Interim Period ended April 30, 2004 (November 1, 2003–April 30, 2004)(1) Operating Results(Numbers less than one million yen have been rounded down)
Revenues

Operating Income

Millions of yen
Six months endedApril 30, 2004
Six months endedApril 30, 2003
Fiscal year ended
October 31, 2003

Millions of yen％

Six months endedApril 30, 2003
Fiscal year ended
October 31, 2003

Millions of yen

％

- 3.0

1,341

-18.6

1,332

-17.8

30,643

2.2

1,647

6.2

1,620

- 5.0

60,494

2,350

2,447

Net Income per Share ofCommon StockMillions of yen
April 30, 2004％

29,726Net Income

Six months ended

Ordinary Income％

Net Income per Share ofCommon Stock Fully Diluted

Yen

Yen

994

41.1

33.29

−

704

- 5.9

23.35

21.07

31.30

28.30

953

Notes 1. Average number of shares outstanding during the period
Six months ended April 30, 2004

29,868,128 shares

Six months ended April 30, 2003

30,182,656 sharesFiscal year ended October 31, 2003 30,030,383 shares
2. Are there any changes in accounting method?

No

3. The percentages shown for revenues, operating income, ordinary income and net income are the percent increaseor decrease compared to the same period of the prior fiscal year

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P.37

(2) Dividends
Interim Dividend per
Share of Common Stock

Annual Dividend per
Share of Common Stock

Yen

Yen

Six months ended

9.00

−−−

9.00

−−−

−−−

18.00

April 30, 2004
Six months endedApril 30, 2003
Fiscal year ended
October 31, 2003

(3) Financial Position
Total Assets

Six months endedApril 30, 2004
Six months endedApril 30, 2003
Fiscal year ended
October 31, 2003

Shareholders’Shareholders’EquityEquity Ratio

Shareholders’ Equity
per Share

Millions of yen

Millions of yen

Yen

85,577

32,95838.5

1,103.57

95,38331,62533.2

1,058.20

87,62732,00436.5

1,071.50％

Notes 1. Number of shares issued and outstanding at end of period
Six months ended April 30, 2004

29,865,040 shares

Six months ended April 30, 2003

29,886,520 sharesFiscal year ended October 31, 2003

29,868,824 shares

2. Number of shares of treasury stock at end of period
Six months ended April 30, 2004

388,201 shares

Six months ended April 30, 2003

366,721 sharesFiscal year ended October 31, 2003

384,417 shares

2. Projected Operating Results for the Fiscal Year Ending October 31, 2004
(November 1, 2003 - October 31, 2004)
Operating

Ordinary

IncomeIncomeMillions of yen

Millions of yen

Millions of yen

Millions of yen

58,450

2,050

1,950

1,170

Revenues

Full year

Net Income

Annual Dividend per
Year-end
Yen
9.00

Yen
18.00

Reference: Projected net income per share of common stock (Full year) ¥39.18*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.

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 38

IX Company Financial Statements
1. Comparative Balance Sheets
PeriodCategory(Unit: Thousands of yen)

End of Prior Fiscal Year
Interim Period(As of April 30, 2003)
AmountPercent

Amount％(Assets)I.

End of Current Fiscal
Year Interim Period(As of April 30, 2004)
Percent

Prior Fiscal Year
Summary Balance Sheet(As of October 31, 2003)
Amount％Percent％

Current Assets
Cashdeposits

17,513,336

14,464,048

11,346,085

Notes receivable, trade

12,997,444

10,821,369

10,148,086

Accounts receivable, trade

7,957,917

7,920,844

11,159,099

417,595

530,632

376,014

Other current assets

2,831,515

2,751,175

2,626,789

Allowance for doubtful
accounts- 572,725- 569,845- 490,153

Total Current Assets

41,145,083

I

n

and

v

e

F i x e d

Ⅱ

n

t

o

r

y

35,918,224

42.0

35,165,921*1

Rental equipment

14,233,517

10,670,114

12,932,042

Buildings and structures

5,957,678

5,654,104

5,825,344*3

24,246,472

24,381,774

24,381,774*3

2,572,287

2,445,952

2,603,721

47,009,955

43,151,946

45,742,882

100,322108,188

97,367

7,685,843

7,224,758

7,390,949- 558,152- 596,090- 540,255−- 229,402- 229,402

7,127,691

6,399,264

6,621,291

Land
Other
assets
Total
Assets

40.1

A s s e t s(1） Tangible Fixed Assets

tangible

fixed

TangibleFixed(2) Intangible Fixed Assets
(3)

43.1

Investments and Other
AssetsAllowance for doubtful
accounts
Reserve for investment
lossesTotal Investments andOther Assets

Total Fixed Assets

54,237,969

56.9

49,659,400

58.0

52,461,541

59.9

Total Assets

95,383,053

100.0

85,577,625

100.0

87,627,462

100.0

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 39

(Unit: Thousands of yen)
PeriodCategory

End of Prior Fiscal Year
Interim Period(As of April 30, 2003)
AmountPercent

End of Current Fiscal
Year Interim Period(As of April 30, 2004)
AmountPercent％( L i a b i l i t i e s )Prior Fiscal Year
Summary Balance Sheet(As of October 31, 2003)
AmountPercent％％

C u r r e n t L ia b i l i t i e s

Ⅰ

Notes payable, trade

7,897,457

7,738,928

7,387,353

Accounts payable, trade

1,851,232

2,182,236

3,048,841

Short-term bank loans

9,761,000

10,356,000

9,576,000

Convertible bonds to beredeemed within one year

4,098,000−−

Accounts payable, other

6,695,454

4,715,460

5,785,173

Corporate taxes payable

772,739

636,363

644,977

Accrued bonuses to
employees

485,441449,264

428,739

Equipment notes payable

389,494

93,278362,936

Other current liabilities

573,695

554,106

522,736

Total Current Liabilities

32,524,514

34.1

26,725,637

31.2

27,756,758

31.7

Long-term Liabilities

Ⅱ

Long-term bank loans
Long-term accrued
expenses
Accrued employees
retirement benefits
Retirement allowance todirectors and auditors

22,780,000

21,104,000

20,592,000

6,544,868

3,532,304

5,321,023

1,731,729

1,184,745

1,776,890

176,085

72,746

176,210

Total Long-term Liabilities

31,232,683

32.7

25,893,796

30.3

27,866,123

31.8

Total Liabilities

63,757,198

66.8

52,619,433

61.5

55,622,882

63.5

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 40

(Unit: Thousands of yen)
PeriodCategory（Shareholders’ Equity）

Ⅰ Common stock

End of Prior Fiscal Year
Interim Period(As of April 30, 2003)
Amount％Percent

End of Current Fiscal
Year Interim Period(As of April 30, 2004)
Amount

％8,596,737

9.0

Percent

Prior Fiscal Year
Summary Balance Sheet(As of October 31, 2003)
Amount

％8,596,737

10.0

Percent％

8,596,737

9.8

Ⅱ Capital surplus
Additional paid-in capital

9,720,343

Total capital surplus

9,720,343

9,720,343
10.2

9,720,343

9,720,343
11.4

9,720,343

11.1

Ⅲ Earned surplus
Legal earned surplus

1,372,487

1,375,287

1,375,287

General reserve

10,900,000

11,281,684

10,981,684

Unappropriated retained
earnings (interim period)

1,293,643

1,519,528

1,140,402

Total earned surplus

13,566,131

14.3

14,176,500

16.6

13,497,374

15.4

Ⅳ negotiable- 91,375-0.1

643,9020.7

367,442

0.4

Ⅴ Treasury stock-165,981-0.2-179,292-0.2-177,318-0.2

Total Shareholders’ Equity

31,625,855

33.2

32,958,191

38.5

32,004,580

36.5

Total Liabilities andShareholders’ Equity

95,383,053

100.0

85,577,625

100.0

87,627,462

100.0

Valuation difference on other

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 41

2. Comparative Statements of Income
PeriodCategory(Unit: Thousands of yen)

Prior Fiscal Year
Current Fiscal Year
Prior Fiscal Year Interim
Summary Statement ofInterim Period
PeriodIncome(From November 1, 2002 (From November 1, 2003
(From November 1, 2002
to April 30, 2003)
to April 30, 2004)
to October 31, 2003)
AmountPercent

AmountPercent％

Amount％Percent％

Ⅰ

Operating revenues

30,643,479

100.0

29,726,200

100.0

60,494,281

100.0

Ⅱ

Cost of revenues

23,058,298

75.2

22,481,134

75.6

46,694,601

77.2

Gross profit

7,585,180

24.8

7,245,066

24.4

13,799,680

22.8

Selling, general andadministrative expenses

5,937,367

19.4

5,903,507

19.9

11,449,012

18.9

Operating income

1,647,813

5.4

1,341,558

4.5

2,350,667

3.9*1

240,5630.8

262,7840.9

609,1441.0*2

267,3860.9

271,7730.9

512,7830.8

1,620,990

5.3

1,332,569

4.5

2,447,028

4.1

24,831

0.1

612,176

2.0

49,9520.1

295,9311.0

95,9580.3

640,169

1.1

1,349,890

4.4

1,848,787

6.2

1,856,811

3.1

749,641

2.4

597,6172.0

1,031,595

1.7-104,396-0.3

256,897

0.9-128,717-0.2

Net income

704,6442.3

994,271

3.3

953,933

1.6

Profit carry-forward fromprior period

588,999

557,483

588,999−−

268,978−

32,226

133,551

1,293,643

1,519,528

1,140,402

Ⅲ

Ⅳ
Ⅴ

Non-operating
revenues
Non-operating
expenses
Ordinary income

Ⅵ

Extraordinary profits

Ⅶ

Extraordinary losses
Income before taxes andadjustments
Corporate, local andbusiness taxes
Adjustment for corporate
and other taxes

Cash dividends
Loss on elimination of stockof affiliated company as aresult of merger
Unappropriated retained
earnings*3

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 42

3. Notes to the Interim Financial Statements and Significant Accounting Policies
Item

Period

1. Valuation standards
and valuation methods
for assets

Prior Fiscal Year Interim
Period(From November 1, 2002
to April 30, 2003)

Current Fiscal Year Interim
Period(From November 1, 2003
to April 30, 2004)

Prior Fiscal Year
(From November 1, 2002
to October 31, 2003)(1) Negotiable securities(1) Negotiable securities

Common stock ofsubsidiaries and affiliatedcompanies
The
Companyhasadopted the cost method
based upon the moving
average method

Common stock ofsubsidiaries and affiliatedcompanies
Same as at left

Common stock ofsubsidiaries and affiliatedcompanies
Same as at left

Other negotiable securities
Negotiable securities with amarket on a securities
exchange
The
Companyhasadopted the market value
method (the full amount of
the valuation difference ischarged to equity using
the direct transfer tocapital method, with thedisposal cost determinedby the moving averagemethod) based on themarketpriceontheinterim period closing dateor similar prices

Other negotiable securities
Negotiable securities with amarket on a securities
exchange
Same as at left

Other negotiablesecurities
Negotiable securities with amarket on a securities
exchange
The
Companyhasadopted the market value
method (the full amount of
the valuation difference ischarged to equity using thedirect transfer to capitalmethod, with the disposal
cost determined by themoving average method)
based on the market priceon the accounting period
closing date or similar
pricesOther negotiable securities
The
Companyhasadopted the cost method
based upon the moving
average method

Other negotiable securities
Same as at left

Other negotiable securities
Same as at left

(2) Construction equipment
Amountafter
deductionofdepreciation
expensecalculated according tothedeclining-balancemethod from the original
prices, by separate fiscal
year of purchase(3) Merchandise inventories
and supplies
Merchandise inventory
Lower of cost or
market based on thelast-in, first-out
method(2) Construction equipment
Amountafter
deductionofdepreciation
expensecalculated according tothedeclining-balancemethod from the original
prices, by separate fiscal
year of purchase(3) Merchandise inventories
and supplies
Merchandise inventory
Same as at left

(2) Construction equipment
Amountafter
deductionofdepreciation
expensecalculated according tothedeclining-balancemethod from the original
prices, by separate fiscal
year of purchase(3) Merchandise inventories
and supplies
Merchandise inventory
Same as at left

Supplies
The Latest purchasecost method

Supplies
Same as at left

(1) Negotiable securities

Supplies
Same as at left

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 43

2.Depreciation method
for fixed assets(1) Tangible fixed assets
The
Companyhasadopted the decliningbalancemethod.
Buildings on land that isleased under a fixedterm
land
lease
agreement,
however,are depreciated using
the straight-line method
using
the
remaining
period of the fixed-termlease as the depreciable
life and zero residual
value.
The depreciable lives
mainly used by theCompany are as follows.
Rental assets:
5-10 years
Buildings:(1) Tangible fixed assets
Same as at left

(1) Tangible fixed assets
Same as at left

31-34 years

3. Accounting standards
for allowances andreserves(2) Intangible fixed assets
Software for use withintheCompany
isdepreciated using thestraight-line
methodbased on the assumed
useful life for internaluse (5 years).
(3) Long-term prepaid
expensesThe
Companyhasadoptedstraight-line
depreciation.
(1) Allowance for doubtful
accounts
To provide for losses on
doubtful accounts suchas accounts receivable,
the Company charges toincomeanamountbased on actual loss
experience for normal
accounts,plus
anamount for projected
unrecoverable amounts
based on assessments
of individual accounts.

(2) Intangible fixed assets
Same as at left(2) Intangible fixed assets
Same as at left

(3) Long-term prepaid
expensesSame as at left

(3) Long-term prepaid
expensesSame as at left

(1) Allowance for doubtful
accounts
Same as at left

(1) Allowance for doubtful
accounts
Same as at left

(2) Accrued bonuses to
employees
To fully provide for
expenditures of bonuses
the Company will pay toemployees, an amountis appropriated to thereserveduringtheinterim period based
upon a salary estimate
amount.

(2) Accrued bonuses to
employees
Same as at left

(2) Accrued bonuses to
employees
To fully provide for
expenditures of bonuses
the Company will pay toemployees, an amount isappropriatedtothereserve during the fiscal
year based upon a salaryestimate amount.

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 44

(3) Accrued employees
retirement benefits
The Company provides
for accrued employees’
retirement
benefits
based
upon
the
projected amounts of
the liability for accrued
employees
retirement
benefits and the value ofpension assets at theend of the fiscal year. At
the end of each interim
period, the Company
appropriates an amountto the reserve to provide
fortheliability
recognized during theperiod.
Pastyears’
serviceliabilities
arefully written off in theyear incurred.
The difference based onan actuarial calculationis charged to income
beginning in the fiscal
year following the year
in which incurred, withthe amounts allocatedproportionately
using
the
straight-line
method, based on a
specified
numberofyears (10 years) that isless than the averageremaining
periodofemployment
for
employees at the timethe difference arises.

(3) Accrued employees
retirement benefits
Same as at left

(3) Accrued employees
retirement benefits
The Company provides
for employees’ accrued
retirement
benefits
based
upon
the
projected amounts of theliabilityforaccruedemployees’
retirement
benefits and the value ofpension assets at theend of the fiscal year. At
the end of each fiscal
year,
the
Company
appropriates an amountto the reserve to provide
fortheliability
recognized during theperiod.
Pastyears’
service liabilities are fully
written off in the year
incurred.
The difference based onan actuarial calculationis charged to income
beginning in the fiscal
year following the year
in which incurred, withthe amounts allocatedproportionately using thestraight-line
method,based on a specified
number of years (10years) that is less than
the average remaining
period of employment
for employees at thetimethedifference
arises.

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 45

(Supplemental information)

On January 1, 2004 theCompany received
approval from the Ministerof Health, Labour andWelfare for exemption
from the obligation to
make future payments forthe entrusted portion of
the Employee Welfare
Pension Fund,
accompanying
enforcement of theDefined Benefit Corporate
Pension Law.
The Company has
adopted the interim
measures prescribed in
Paragraph 47-2 of theBusiness Guidelines
Concerning Retirement
Benefit Accounting(Interim Report)
concerning return of theentrusted portion of thecorporate Employee
Welfare Pension Fund (TheJapanese Institute ofCertified Public
Accountants, Accounting
System Committee Report
No. 13), and on the day
authorization was received
the Company accounted
for the retirement benefit
liability related to theentrusted portion and thepension assets equivalent
to the return amount as
being extinguished.
The Company accounted
for the affects
accompanying thistreatment by booking
extraordinary profits of¥606 million as of the endof the interim accounting
period.
The returned equivalentamount (minimum
actuarial liability)
measured as of the end of
the interim accounting
period under review was¥1,316 million.

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 46

(4) Retirement allowances todirectors and auditors
The Company provides
for retirement allowances
to directors and auditors
based upon pertinent
rules and appropriated tothe account at the end of
the interim period
proportionately based
upon length of service.
(5)──────

4. Lease transactions

5. Hedge transactions

Forfinanceleasetransactions except forleasesthattransferownershipoftheproperty to the lessee,
rent
expensesarecharged to income aspayments are made.
(1) Hedge transactions
The Company accounts
for hedge transactions
using allocations basedon accounting standards
for foreign currencydenominatedtransactions, and special
rule accounting basedon accounting standards
for financial products.
(2) Hedge methods andhedged transactions
The
Company
uses
currency
swaps
andforward transactions in
order
to
avoid
the
currency fluctuation risk
relatedtotheCompany’s
foreigncurrency-denominatedstraight
bonds
andliabilities
forimportpayments.
The
Company
also
usesinterest swaps to avoid
interest rate fluctuation
risk related to intereston bank borrowing.
(3) Hedging policies
The Company’s use ofderivative transactions
is limited to hedging risk
within the scope of theCompany’s assets andliabilities
subject
tomarket fluctuation risk.

(4) Retirement allowances
to directors and auditors
Same as at left

(5) Reserve for investment
lossesThe Company provides
forlossesfromthedecline in real prices ofassets such as the stockof subsidiary companies
that are subject to asset
impairment
accounting
by applying internallyestablishedstandards
that
take
into
consideration subsidiarycompany
operatingresults and asset quality.
Same as at left

(4) Retirement allowances todirectors and auditors
The Company provides
for retirement allowances
to directors and auditors
based upon pertinent
rules and appropriated tothe account at the end of
the fiscal year
proportionately based
upon length of service.
(5) Reserve for investment
lossesSame as at left

Same as at left

(1) Hedge transactions
Same as at left

(1) Hedge transactions
Same as at left

(2) Hedge methods andhedged transactions
Same as at left

(2) Hedge methods andhedged transactions
Same as at left

(3) Hedging policies
Same as at left

(3) Hedging policies
Same as at left

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 47

6. Other significant
matters for
preparation of theinterim period (fiscal
year) financial
statements(4) Method for evaluating
the effectiveness ofhedgesThe Company does notevaluatetheeffectiveness
of
its
hedge
transactions
because it can assume
that its currency swap
transactions and forward
transactions
will
completely
offsetmarket fluctuations orchanges in cash flowfrom the time hedge
beginsuntil
itisterminated. In addition,
the Company’s interest
swap transactions fulfill
the requirements for
special rule accounting,and the Company has
elected to use this inplace of an evaluation ofeffectiveness.
Accounting treatment ofconsumption tax
Consumption
tax
is
taken
out
of
all
Statement of Income
items and Balance Sheet
items, except mainly forreceivables
andpayables.
The suspense accounts
forconsumption
tax
receipts
andconsumption
tax
payable are included in“other current liabilities”
because the financial
importance is minimal
after the amounts areoffset.

(4) Method for evaluating
the effectiveness ofhedgesSame as at left

(4) Method for evaluating
the effectiveness ofhedgesSame as at left

Accounting treatment ofconsumption tax
Same as at left

Accounting treatment ofconsumption tax
Same as at left

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 48

（Supplemental information）
Prior Fiscal Year Interim Period(From November 1, 2002
to April 30, 2003)（2）Accounting standards fortreasury stock and reversal of
legal reserves
Beginning from the current

Current Fiscal Year Interim Period(From November 1, 2003
to April 30, 2004)──────

Prior Fiscal Year
(From November 1, 2002
to October 31, 2003)（2）Accounting standards fortreasury stock and reversal of
legal reserves
Beginning from the current fiscal

interim period, Kanamoto will apply

year, Kanamoto will apply thethe Accounting Standard for

Accounting Standard for Treasury

Treasury Stock and Reversal of

Stock and Reversal of Legal

Legal Reserves (Corporate

Reserves (Corporate Accounting

Accounting Standard No. 1). The

Standard No. 1). The effect of thiseffect of this change on thechange on the Company’s

Company’s Statement of Income

Statement of Income for the fiscal

for the interim period is notyear is not material.

material.

Based on amendment of theBased on amendment of theprovisions concerning financial

provisions concerning financial

statements, the shareholders’statements, the shareholders’equity section of the Comparative

equity section of the Comparative

Balance Sheets has been prepared

Balance Sheets has been preparedusing the amended balance sheet

using the amended balance sheet

provisions.

provisions.

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 49

Notes(Notes to the Interim Period Balance Sheets)
PeriodItem*1. Total accumulated
depreciation for tangible
fixed assets*2. Contingent liabilities
Joint and several
guarantee of employeebank loans
Debt guarantee ofaffiliated company (Active
Power Corporation andDaiichi Machine Industries
Co., Ltd.) loan liability*3. Reduction to book value

Prior Fiscal Year

Prior Fiscal Year Interim
Period(As of April 30, 2003)

Current Fiscal Year
Interim Period(As of April 30, 2004)(As of October 31, 2003)

40,783,697,000

38,412,724,000

41,201,008,000

23,030,000

26,097,000

20,902,000

519,500,000

269,500,000

300,000,000

Amounts for assets
acquired in prior fiscal
years for whichaccumulated bookvalues were reduced bygovernment subsidies

Amounts for assets
acquired in prior fiscal
years for whichaccumulated bookvalues were reduced bygovernment subsidies¥’000
Machineryandequipment
Land
Total

5,044

3,569
8,613

Amounts for assets
acquired in prior fiscal
years for whichaccumulated bookvalues were reduced bygovernment subsidies¥’000
Machineryandequipment
Land

Total

5,044

3,569
8,613

¥’000
Machineryandequipment
Land

Total

5,044

3,569
8,613

(Notes to the Interim Period Statements of Income)
PeriodItem

Current Fiscal Year
Prior Fiscal Year InterimInterim Period
Period(From November 1, 2002 (From November 1, 2003
to April 30, 2004)
To April 30, 2003)

Prior Fiscal Year
(From November 1, 2002
to October 31, 2003)*1. Principal items included in
non-operating revenues
Interest received

485,000

1,634,000

891,000−

34,466,000

134,900,000

Rents received

76,261,000

76,308,000

153,875,000

Insurance benefits

2,857,000

16,893,000

23,148,000

890,000−

890,000

16,265,000

656,000

18,733,000Interest expense

179,534,000

164,759,000

348,875,000Interest on corporate
bonds

15,428,000−

23,947,000−

606,420,000−

2,946,353,000

2,244,384,000

5,942,136,000

8,271,000

10,469,000

17,410,000

Gain on sale of investment
securities

Gain on redemption of
corporate bonds by purchaseCash bonus received*2. Principal items included in
non-operating expenses*3. Principal items included in
extraordinary profits
Gain on return of
entrusted portion of
welfare pension fund
*4. Depreciation andamortization
Tangible fixed assets
Intangible fixed assets

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 50

(Lease Transactions)
PeriodItem
1. For finance leasetransactions
except leases thattransfer ownershipof the property to
the lessee

Prior Fiscal Year Interim
Period(From November 1, 2002
To April 30, 2003)

Current Fiscal Year Interim
Period(From November 1, 2003 to
April 30, 2004)(From November 1, 2002 to
October 31, 2003)

1. Amounts corresponding
to lease property
acquisition prices,
accumulated depreciationand outstanding balanceat the end of the interim
period

1. Amounts corresponding
to lease property
acquisition prices,
accumulated depreciationand outstanding balanceat the end of the interim
period

1. Amounts corresponding
to lease property
acquisition prices,
accumulated depreciationand outstanding balanceat the end of the fiscal
year accounting period

Please refer to Annex A

Please refer to Annex B

Please refer to Annex C

2. Outstanding balance of
future lease payments
at the end of the interim
period

2. Outstanding balance of
future lease payments
at the end of the interim
period

2. Outstanding balance of
future lease payments
at the end of the fiscal
year

¥’000
Within one

Prior Fiscal Year

¥’000

¥’000

4,777,557

Within one year

5,613,634

Within one year

4,689,094

15,119,581

After one year

16,855,922

After one year

16,064,070

Total

22,469,557

Total

20,753,164

year
After one
year
Total

19,897,139

3. Amount of lease

3. Amount of lease

3. Amount of lease

payments, depreciation

payments, depreciation

payments, depreciation

expense and interest

expense and interest

expense and interest

expenseexpenseexpense¥’000

2. Operating leases

¥’000

¥’000

Lease payments

2,660,590

Lease payments

2,884,662

Lease payments

5,279,347

Depreciation expense

2,281,466

Depreciation expense

2,744,006

Depreciation expense

4,720,895

Interest expense

324,051

Interest expense

422,324

Interest expense

656,827

4. Accounting method foramount equivalent todepreciation expense
Straight-line
depreciation using thelease term as thedepreciable life and zero
residual value.
5. Accounting method foramount equivalent tointerest expense
Interest method using
the difference between
total lease payments
and the acquisition priceof the lease property,
allocated equally to eachyear.
Future lease payments

4. Accounting method
for amount equivalent todepreciation expense
Same as at left

4. Accounting method
for amount equivalent todepreciation expense
Same as at left

5. Accounting method foramountequivalent
tointerest expense
Same as at left

5. Accounting method foramount equivalent tointerest expense
Same as at left

Future lease payments

Future lease payments

Within one year ¥1,897,034,000

Within one year ¥1,601,250,000

Within one year ¥1,789,778,000

After one year

¥3,290,904,000

After one year

¥2,242,280,000

After one year

¥3,238,604,000

Total¥5,187,939,000

Total¥3,843,530,000

Total¥5,028,382,000(Negotiable Securities)
The stock of the Company’s subsidiary companies and affiliated companies does not have a market price.

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 51

Annex A
Acquisition
price

Accumulated
depreciation

Outstandingbalance¥ ‘000¥ ‘000¥ ‘000Rental assets

27,217,617

8,145,380

19,072,237

Other assets

548,519

246,135

302,383

27,766,136

8,391,515

19,374,620

Total
Annex B

Acquisition
price

Accumulated
depreciation

Outstandingbalance¥ ‘000¥ ‘000¥ ‘000Rental assets

31,713,019

8,697,337

23,015,682

Other assets

400,596

171,671

228,924

32,113,615

8,869,008

23,244,606

Total

Annex C
Acquisition
price

Accumulated
depreciation

Outstandingbalance¥ ‘000¥ ‘000¥ ‘000Rental assets

27,425,528

7,096,970

20,328,557

Other assets

458,792

193,647

265,145

27,884,320

7,290,617

20,593,703

Total

Summary of Company Interim Financial Statements, FY ending October 31, 2004

P. 52

(Per Share Information)
PeriodItem
Net assets per share
Interim period net income per
share
Interim period net income pershare on a fully diluted basis

Current Fiscal Year
Prior Fiscal Year InterimInterim Period
Period(From November 1, 2002 (From November 1, 2003
to April 30, 2004)
To April 30, 2003)

Prior Consolidated
Fiscal Year
(From November 1, 2002
to October 31, 2003)¥1,058.20¥1,103.57¥1,071.50¥23.35¥33.29¥31.30¥21.07─¥28.30（(Note) The basis for calculating interim period (fiscal year) earnings per share is as follows.
PeriodItem
Interim period (fiscal year) net
income (¥ ‘000)
Amountnotattributed
tocommonstock
shareholders(¥ ‘000)
Interim period (fiscal year) net
income related to common stock(¥ ‘000)
Average number of outstanding
shares during the period
Summary of latent stock notincluded in the calculation ofinterimperiod(fiscalyear)
earnings per share on a fully
diluted basis because it does nothave a dilution effectCurrent Fiscal Year
Prior Fiscal Year InterimInterim Period
Period(From November 1, 2002 (From November 1, 2003
to April 30, 2004)
To April 30, 2003)

Prior Consolidated
Fiscal Year
(From November 1, 2002
to October 31, 2003)

704,644994,271953,933──

14,100704,644994,271939,833

30,182,656

29,868,128

30,030,383

New stock warrants(stock options) based on
the provisions of Article

Same as at left

Same as at left

280-19 of the old
Commercial CodeSummary of Company Interim Financial Statements, FY ending October 31, 2004

P. 53