Notification Concerning Extraordinary Loss (Loss from Damage by the Great
East Japan Earthquake) and Revision of Projected Operating Results for
the Interim Period of the Fiscal Year Ending October 20112011/06/01 in Japan | Page 1/2

Wednesday, June 1, 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

Notification Concerning Extraordinary Loss (Loss from Damage by theGreat East Japan Earthquake) and Revision of Projected Operating
Results for the Interim Period of the Fiscal Year Ending October 2011
Kanamoto Company, Limited, Japan’s leading construction equipment rental company, has revised its
projected consolidated and non-consolidated operating results for the interim period of the fiscal year ending
October 2011 (November 1, 2010 - April 30, 2011). Details are provided below.

1. Amount of loss from damage by the Great East Japan Earthquake
The Kanamoto Group suffered damage mainly to two branches it had developed in the region stricken by theGreat East Japan Earthquake. Certain Company rental construction equipment supplied to the same region
was damaged as well.
For the interim period of the fiscal year ending October 2011, the Company has decided to report anextraordinary loss of 724 million yen, including asset losses, restoration costs and reconstruction support
costs, as a result of this damage.
Because no consolidated subsidiary other than Kanamoto suffered damage, this amount will be recorded
identically on both a consolidated and non-consolidated basis.
2．Revised projected consolidated interim period results (Interim period of the fiscal year ending October 2011)(November 1, 2010 - April 30, 2011)(Millions of yen except net income per share, which is in yen)

Revenues

Operatingincome

Ordinary
incomeNet income

Net income
per share

Prior projection(A)

35,080

1,940

1,580

750

22.84

Revised projection(B)

35,309

1,724

1,408

49

1.50

Increase (decrease)(B－A)

229-216

-172

-701

―

(%)

0.7%

- 11 . 1 %-10.9%-93.5%―

37,142

3,195

2,924

1,515

46.15

Percent change(Reference) Prior fiscal year
Interim period ended April 30, 2010Notification Concerning Extraordinary Loss (Loss from Damage by the Great
East Japan Earthquake) and Revision of Projected Operating Results for
the Interim Period of the Fiscal Year Ending October 20112011/06/01 in Japan | Page 2/2

3. Revised projected non-consolidated interim period results (Interim period of the fiscal year ending October 2011)(November 1, 2010 - April 30, 2011)(Millions of yen except net income per share, which is in yen)

Revenues

Operatingincome

Ordinaryincome

Net income

Net income
per share

Prior projection(A)

29,130

1,500

1,320

650

19.79

Revised projection(B)

30,2481,428

1,296481.47Increase (decrease)(B－A)

1 , 11 8-72-24-602

―

(%)

3.9%

-4.8%

-1.8%

-92.6%―

30,139

2,534

2,476

1,181

35.98

Percent change(Reference) Prior fiscal year
Interim period ended April 30, 2010

4. Reason for revision of projected interim period operating results
During the Kanamoto Group’s second quarter, an optimistic business mood prevailed because of overseas
economic trends and strong performance forecasts at leading companies. Construction-related industries,
however, continued to face a severe operating climate. At the Kanamoto Group, operating results closely
followed the Company’s initial projection. Nevertheless, earnings for the full-year will be affected by theGreat East Japan Earthquake, which caused damage to several of the Company’s facilities and certain
rental construction equipment, and will reduce earnings as the Company postpones sales of used equipment
in order to ensure assets are available for responding to future restoration and reconstruction demand. The
earthquake has also resulted in the interruption of construction works that were affected by the disaster, andthe suspension of operations in areas where entry has been restricted.
In particular, as indicated above the Company has revised its projected second quarter operating results byreporting the cost of earthquake damage in extraordinary losses.
5．Future outlook, projected full-year operating results, dividends and expected date for release of financial
report
The amount of the damage to rental construction equipment described above can be identified at the present
time, and encompasses most of the damaged equipment. In addition to investigating the possibility ofrepairing and using the damaged equipment in the future, the Company will simultaneously seek to offset
and recover the cost of the damage as soon as possible, by means such as clearance sales to dispose ofequipment that is in a condition to be sold.
Moreover, since the earthquake, construction equipment rental demand in the stricken areas in Tohoku andKanto is extremely vigorous, while rental fees have risen as well because of the improved supply anddemand balance, and the Company expects to see a commensurate bottom-line effect during the second
half of the fiscal year. At the same time, however, it is also true that the overall scale and timing of demandremain in a state of flux, and the Company has maintained its full-year projected operating results values atthe level announced in December 2010.
The Company plans to discuss at its Board of Directors meeting the implementation of an interim dividend of
10 yen per share as initially planned, and intends to release its Six-month Consolidated Financial Report for
the Fiscal Year ending October 31, 2011 on June 8.
EndThese projected consolidated operating results materials were prepared using projections based on information available
to the Company as of the date this material was released and forecasts of the future economic, environment, and include
various risks and uncertainty factors. Furthermore, there is a possibility the Company’s actual consolidated operating
results will differ from the projected figures shown above as a result of various future factors, including but not limited toeconomic conditions surrounding the Kanamoto Group, market trends, and competitive conditions.