Establishment of New Company in Singapore| 2011/02/25 in Japan
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Friday, February 25, 2011

For Immediate Release
Kanamoto Company, Limited
Stock Code 9678
Tokyo Stock Exchange 1st Section; Sapporo Stock Exchange
Kanchu Kanamoto
President and CEO< Contact for inquiries concerning this material >Yuichi Takayama
Manager, Investor and Public Relations, Office of the President
Telephone: + 81–11–209–1631

Kanamoto to Establish New Company in Singapore
through Joint Venture with Local Firm
Kanamoto Company, Limited (Kanchu Kanamoto, President; Head Office: Sapporo, Japan), Japan’s leading
construction equipment rental company, has reached an agreement with JP Nelson Equipment PTE. LTD.
(“JPN”) (Nelson Lim, Managing Director; Head Office: Republic of Singapore), the leading construction
equipment rental company in the Republic of Singapore, to establish and manage a joint venture company inSingapore to be named Kanamoto & JP Nelson Equipment (S) PTE Ltd. (referred to below as “KNE”). The
two companies signed the joint-venture agreement today in Singapore (February 25, local time). Details areprovided below.
1. Joint venture company profileNameKanamoto & JP Nelson Equipment (S) PTE. Ltd.

Address

30 BENOI ROAD SINGAPORE 629900

EventDecember 10, 2010

Board of Directors resolution (corporate registration)scheduleJanuary 11, 2011

Corporate registration

February 23, 2011

Board of Directors resolution (appointment of directors)

February 25, 2011

Signing of Agreement

February 28, 2011

First capital payment date (scheduled)

Capital

1.5 million SG$ (about 96.3 million yen) Total capital increase (capital increase in stages)
Capital contribution ratio: Kanamoto 70%, JPN 30%

Businesses

a. Rental and sale of specialized equipment for engineering works (ground improvement
equipment, shield tunneling method equipment, etc.), and consulting related to suchequipment
b. Rental and sale of general construction equipmentc. Incidental services related to the above activities

Establishment of New Company in Singapore| 2011/02/25 in Japan
Page 2 / 2Managing Director
Director
Director
Director
Director

Tetsuo Kanamoto (Kanamoto Director and Corporate Officer;
Manager, Business Coordination Headquarters)
Kanchu Kanamoto (Kanamoto President and Representative
Director , serving concurrently as Corporate Officer)
Naoki Mukunashi (Kanamoto Director and Corporate Officer;
Manager, Overseas Business Office)Nelson Lim (JPN Managing Director)
Teo Yew Boon (JPN General Manager)

2. Background and purpose for establishment of the new company
Because of the gradual contraction of the domestic construction market, the Kanamoto Group is seeking toexpand its market share in Japan through M&A while simultaneously pursuing business growth in othercountries. In its strategic plan for 2010-2014 in particular, Kanamoto has positioned the strengthening of its
overseas development as a growth engine for the future, and advancement into Singapore is one componentof this plan.
Moreover, construction demand in Singapore is brisk, and sufficient construction equipment rental demand isexpected because of major projects that have been ordered, including subway works and the Marina Coastal
Expressway. In addition, solutions offered by the Kanamoto Group’s engineering-related subsidiaries will be
indispensable for the infrastructure work indicated above, and can be expected to generate a synergistic effectthroughout the Group.
Finally, the new firm will be positioned to fulfill the role of a bridgehead for the business development theKanamoto Group is seeking in Southeast Asian countries and in regions such as Oceania and India.
3. Future outlook and affect on Kanamoto’s operating results
As indicated above, corporate registration of the new company was completed in January 2011, andKanamoto plans to execute capital investments in the new firm in the immediate future. Because the newcompany will begin full-scale business operations from March, however, earnings during the current fiscal year
are expected to be minimal.
KNE is expected to become profitable during its third year of operations in fiscal 2013, when the company isprojected to achieve revenues of 3.8 million SG$ (about 240 million yen) and operating income totaling
155,000 SG$ (about 10 million yen).
Based on such circumstances, the effect on Kanamoto’s consolidated operating results for the Business
Period ending October 2011 will not be material.
4. Inquiries
For inquiries concerning this press release and other matters, including appointments for news reporting
locally in Singapore, please contact the Manager, Investor and Public Relations at Kanamoto’s Office of thePresident.
End