Fiscal Year ending October 31, 2008

Summary of Third Quarter Operating Results
September 5, 2008

Listed Company Name

Kanamoto Company, Ltd.

Company Code Number

9678

Listing Exchanges

Tokyo Stock Exchange, Sapporo Stock Exchange（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
1. Operating Results for the Third Quarter of the Fiscal Year Ending October 31, 2008
(November 1, 2007 - July 31, 2008)(1) Consolidated Operating Results(Numbers less than one million yen have been rounded down)

Revenues

Operating Income

Ordinary Income

Millions of yen

Millions of yen

Millions of yen

(%)

(%)

Fiscal Year Ending October 31,
2008: Third Quarter

53,668 (2.7 )2,291 ( -37.9 )2,188 ( -44.1)

Fiscal Year Ended October 31,
2007: Third Quarter

52,237 (4.0 )3,687 (

3,915 ( 33.4 )Fiscal Year Ended October 31,
2007

68,626

20.7 )

4,236

(%)

4,416

Net Income per
Share of Common

Net Income per Shareon a Fully Diluted

(%)

Yen

Yen

Fiscal Year Ending October 31,
2008: Third Quarter

974 ( -62.4 )

29.68

－

Fiscal Year Ended October 31,
2007: Third Quarter

2,592 ( 138.1 )

78.90

－

Fiscal Year Ended October 31,
2007

3,035

92.40

－

Net Income
Millions of yen(Note) The percentages shown for revenues, operating income, ordinary income and net income are thepercent increase or decrease compared to the same period of the prior fiscal year

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.1

(2) Change in Consolidated Financial Position(Numbers less than one million yen have been rounded down)

Total Assets

Net Assets

Millions of yen

Millions of yen

CapitalAdequacy Ratio

Net Assets per
Share

％

Yen

Fiscal Year Ending October
31, 2008: Third Quarter

92,04439,37842.5

1,191.09

Fiscal Year Ended October
31, 2007: Third Quarter

87,121

39,94145.8

1,215.93

Fiscal Year Ended October
31, 2007

85,15539,97346.9

1,216.98(3) Consolidated Cash Flows(Numbers less than one million yen have been rounded down)

Cash Flow fromOperating
Activities

Cash Flow from
Investing
Activities

Cash Flow from
Financing
Activities

Balance of Cashand Equivalents
at End of Period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal Year Ending October
31, 2008: Third Quarter

3,256-3,973

2,048

19,226

Fiscal Year Ended October
31, 2007: Third Quarter

4,161-1,218-1,724

19,617

Fiscal Year Ended October
31, 2007

4,479-1,427-4,237

17,213

2. Dividends
Dividendper Share
Yen

Fiscal Year Ending October
31, 2008: Third Quarter
Fiscal Year Ended October
31, 2007: Third Quarter－－

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 2008
(November 1, 2007 - October 31, 2008)(Percentages show the change from the prior year)

Operating
IncomeRevenues

Millions of yen

Full year

71,000%
3.5

Millions of yen

Ordinary
Income% Millions of yen

2,800 -33.9

Net Income
per Share

Net Income% Millions of yen

2,600 -41.1%

Yen

1,000 -67.1

30.45

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.2

4. Other(1) Changes to material subsidiaries during the period (transfer of specified subsidiaries in conjunction
with revision to scope of consolidation)? Yes
Newly consolidated Kyushu Kensan Co., Ltd.
Kensan Fukuoka Co., Ltd.
Kensan Techno Co., Ltd.
(2) Has the Company adopted simplified methods for accounting treatment? Yes(3) Are there any differences with the methods of recognition used in the accounting treatment for themost recent consolidated fiscal year? No(Note) For details see “4. Other matters” on Page 7 (Qualitative information concerning the financial
statements).

5. Summary of Non-consolidated Operating Results (Reference)(November 1, 2007 - July 31, 2008)
Revenues
Millions of yen(%)

Operating Income

Ordinary Income

Millions of yen

Millions of yen

(%)

(%)

Fiscal Year Ending October 31,
2008: Third Quarter

46,250 ( -1.0 )

2,297 ( -33.2 )2,260 ( -41.6)

Fiscal Year Ended October 31,
2007: Third Quarter

46,728 (3,441 (

3,869 ( 37.8 )Fiscal Year Ended October 31,
2007

61,5764.4 )26.9 )

4,012

Net Income

4,372

Net Income per

Net Income per Share

Share of Common

on a Fully Diluted

(%)

Yen

Yen

Fiscal Year Ending October 31,
2008: Third Quarter

1,134 ( -57.4 )

34.54

－

Fiscal Year Ended October 31,
2007: Third Quarter

2,660 ( 149.2)

80.99

－

Fiscal Year Ended October 31,
2007

3,431

104.44－

Millions of yen(2) Non-consolidated Financial Position
Capital
Total Assets

Net Assets

Net Assets per

Adequacy

Share

Ratio
Millions of yen

Millions of yen%

Yen

Fiscal Year Ending October
31, 2008: Third Quarter

86,61940,23246.4

1,224.95

Fiscal Year Ended October
31, 2007: Third Quarter

84,09540,42748.1

1,230.70

Fiscal Year Ended October
31, 2007

82,90240,78749.2

1,241.77

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.3

6. Projected Non-consolidated Operating Results for the Fiscal Year Ending October 2008
(November 1, 2007 - October 31, 2008)(Percentages show the change from prior year)

Operating
IncomeRevenues

Full year

Millions of yen%

Millions of yen

61,300

-0.4

2,800

Ordinary
Income% Millions of yen

-30.2

2,700

Net Income
per Share

Net Income% Millions of yen
-38.2

650

%

Yen

-81.1

19.79

Note: Explanation concerning appropriate use of the projected operating results and other items to note
The projected operating results were prepared based upon information available to the Company at thetime 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 Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.4

【Qualitative information and financial statements】
1. Qualitative information concerning consolidated operating results< Management Environment > (From May 1, 2008 to July 31, 2008)
During the third quarter under review, Japan’s economy was affected by several negative factors, andbusiness perceptions clouded considerably. Firms implemented successive price hikes on raw materials andproducts to reflect the sharp rise in oil prices, and export-related industries such as machinery andautomobiles, which had been enjoying particularly strong growth, were forced to reduce output as a resultof the U.S. economic slowdown. Personal consumption, on the other hand, was buffeted by the jump in thecost of living, and cutbacks in consumption behavior were evident in the form of lackluster purchasing of
consumer goods and less travel abroad.
< Third Quarter Consolidated Operating Results > (From May 1, 2008 to July 31, 2008)[ Business related to the Construction Equipment Rental Division ]Because Kanamoto’s third quarter is the off season for new orders for public works, in Kanamoto’s corebusiness of construction equipment rentals the Company repeated its efforts of the previous year andworked diligently to identify and meet private capital investment demand. Given negative factors such as
the steep jump in construction materials costs originating in higher oil prices, however, a significant upsurge
in construction demand failed to materialize. The new order environment continued to deteriorate in local
regions in particular.
By regional segment, demand in the Hokkaido Region expanded in certain areas, such as private demandand demand related to the Hokkaido Shinkansen in the Doo Block. Nevertheless, overall there was nochange in the declining demand trend, and revenues in the third quarter fell 9.9% from the same period of
the previous consolidated fiscal year. The management environment was similar in the Tohoku region,
where the decrease in demand was coupled with increasingly severe competition with other companies in
the industry, and revenues declined 10.4% year-on-year.
On the other hand, revenues in the Kanto and Shinetsu regions increased 4.4% from the same period of
the previous consolidated fiscal year. In addition to the size of private demand capacity in the Tokyo
metropolitan area, revenues were boosted by full-scale work on major projects such as expansion of theTokyo International Airport (Haneda). In the Kinki & Chubu Region, revenues grew steadily because ofvigorous rental demand in the Nagoya area, while on the other hand a sharp drop in demand in Hyogo
Prefecture caused sales to slow, and overall revenues fell 2.8% year-on-year. In the Kyushu Region, theKyushu Kensan Group, which is based mainly in Fukuoka, became a consolidated subsidiary, which lifted
revenues by 117.6% year-on-year. As a result of the above changes, total rental revenues in this businesssector edged down 1.7% from the same period of the previous consolidated fiscal year.
Moreover, revenues from equipment sales in this business sector during the third quarter including theeffect from our Customer Thanks Fair rose marginally, and used construction equipment sales were in linewith Kanamoto’s initial business plan. Overall, however, revenues from sales fell 3.7% from the same period
one year earlier.
As a result of these factors, in the construction-related businesses of the entire Kanamoto Group, revenues
for the third quarter under review decreased 2.4% from the same period of the previous consolidated fiscal
year.
[ Business related to the Steel Sales Division ]In Kanamoto’s businesses related to the Steel Sales Division, revenues for the third quarter rose
substantially, climbing 50.0% compared with the same period of the previous consolidated fiscal year. This
increase reflected a sharp rise in materials prices, as well as commercial facility construction demand in the
Doo Block.

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.5

[ Business related to the Information Products Division and Other Businesses ]In the Company’s information and telecommunications-related division, PC rentals expanded steadily andsales of used PCs also increased. As a result, third quarter revenues for the Information Products Divisionand the Company’s other businesses were 16.0% higher than in the same period of the previous
consolidated fiscal year.
<Cumulative Operating Results Since the Beginning of the Fiscal Year>(From November 1, 2007 to July 31, 2008)
Looking at cumulative operating results by business, in Kanamoto’s construction-related businesses
revenues edged upward 0.5% year-on-year to ¥48,272 million, and operating income fell 37.3% from thesame period one year earlier to ¥2,235 million.
In the businesses related to the Steel Sales Division, revenues increased 29.6% year-on-year to ¥4,998
million, and operating income was ¥25 million compared with an operating loss of ¥11 million for the same
period of the previous consolidated fiscal year. Revenues for the Company’s information andtelecommunications-related division grew 22.5% year-on-year to ¥398 million, and operating income
climbed 94.0% from the same period of the previous fiscal year to ¥56 million.
As a result, consolidated revenues for the first nine months of the fiscal year ending in October 2008
increased 2.7% year-on-year to ¥53,668 million.
Although the Company worked to improve rental equipment operating efficiency, consolidated operating
income for the nine months fell 37.9% year-on-year to ¥2,291 million. Earnings were affected negatively bya decline in both public and private sector construction demand in Japan and the drop in rental revenues
below the level for the first nine months of the previous consolidated fiscal year, and despite the growth inhighly profitable sales of used construction equipment, which rose in accordance with the Company’s initialplan, earnings fell in absolute terms from the same period one year earlier.
Furthermore, both consolidated ordinary income and net income for the third quarter under review weresignificantly lower than in the same period of the previous consolidated fiscal year because the special
factors that boosted the previous year operating results, including a gain on sale of investment securities
and a gain on sale or retirement of fixed assets, were not repeated during the quarter under review.
Consolidated ordinary income decreased 44.1% from the same period of the previous consolidated fiscal
year to ¥2,188 million, and third quarter consolidated net income declined 62.4% year-on-year to ¥974
million.
[ Business development issues deserving special mention and status of branch office changes ]1) During the third quarter under review, Kanamoto upgraded the Makubetsu Equipment Center in
Makubetsu-cho, Nakagawa-gun, Hokkaido to a branch in May. The Company did not close any branches
during the quarter. The Company also acquired the stock of Toyo Industry Co., Ltd. (Head office: Taito
Ward, Tokyo) and Kyokuto Lease Co., Ltd. (Head office: Oyama City, Tochigi Prefecture), respectively.
2) The Company took the lead and introduced new energy-saving, recyclable rental equipment, including
hybrid trucks and LED-type night lighting, ahead of other companies, and increased rentals of theseproducts. The Company also began the sale and rental (long term) of LED lamps in particular for general
office buildings.
3) Shanghai Jinheyuan Equipment Rental Co., Ltd. (Head office: Shanghai, China) and SJ RENTAL INC.
(Head office: Territory of Guam (United States)), two non-consolidated subsidiaries that are developing
equipment rental businesses in other countries, are both expanding operating results steadily.

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.6

2. Qualitative information concerning consolidated financial position(1) Assets, liabilities and net assets
Compared with the end of the prior consolidated accounting fiscal year, total assets at the end of the third
quarter under review had increased by ¥6,889 million to ¥92,044 million. This primarily reflected an increasein cash and deposits and tangible fixed assets in conjunction with the addition of Kyushu Kensan Co., Ltd.,
Kensan Fukuoka Co., Ltd. and Kensan Techno Co., Ltd. as newly consolidated subsidiaries.
Net assets decreased by ¥594 million compared with the end of the previous consolidated fiscal year to¥39,378 million. This was mainly a decrease in the valuation difference on other investment securities. As aresult, the shareholders’ equity ratio at the end of the third quarter was 42.5%.
(2) Consolidated Cash FlowsThe balance of cash and cash equivalents at the end of the third quarter under review declined ¥391 million
from the same period of the previous consolidated fiscal year, to ¥19,226 million. Cash flows for the third
quarter under review are discussed below.
(Cash flow from operating activities)
Cash flow from operating activities was ¥3,256 million, a decrease of ¥904 million from the same period of
the previous consolidated fiscal year. This was mainly the result of the decrease in income before taxes
and adjustments.
(Cash flow from investing activities)
Cash flow used in investing activities was ¥3,973 million. This was ¥2,754 million more than in the same
period of the prior consolidated fiscal year. This mainly reflected an increase in funds used for the purchaseof tangible fixed assets.
(Cash flow from financing activities)
Cash flow provided by investing activities was ¥2,048 million, compared with cash flow used in investing
activities of ¥1,724 million in the same period of the prior consolidated fiscal year. This mainly reflected anincrease in funds provided by long-term bank loans.
3. Qualitative information concerning projected consolidated operating results
Kanamoto released its revised consolidated operating forecast for the fiscal year ending October 2008 on
August 29, 2008. Although Kanamoto plans to reserve an appropriate amount for guarantees of the loans
and debts of certain consolidated subsidiaries and record an extraordinary loss, the Company will take thismeasure from a standpoint of conservative accounting practices, and will continue without any revisions its
policy of supporting the subsidiaries in question.
These projected consolidated operating results 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.
Accordingly, there is a possibility the Company’s actual consolidated operating results will differ from the
projected amounts shown above as a result of various future factors, including but not limited to economic
conditions surrounding the Company, market trends, and competitive conditions.
4. Other matters(1) Changes in material subsidiaries during the period under review(changes in specific subsidiaries in conjunction with a change in the scope of consolidation)
Kyushu Kensan Co., Ltd., Kensan Fukuoka Co., Ltd. and Kensan Techno Co., Ltd., which were treatedas non-consolidated subsidiaries in the past, were included in the scope of consolidation when
preparing the consolidated financial statements because the importance of these companies toKanamoto’s operations has increased.

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.7

(2) Adoption of the simplified methods for accounting treatment
The Company uses book value for inventory.
The Company charges an amount to its allowance for doubtful accounts based on actual loss experiencein the prior consolidated accounting fiscal year for normal accounts.
(3)Differences with the methods of recognition used in the accounting treatment for the most recent
consolidated fiscal year
The Company had no material items to report.

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.8

1. (Summary) Third Quarter Consolidated Balance Sheets(Unit: Thousands of yen)
Prior FY Quarter Current Quarter

PeriodItem(Third Quarter of (Third Quarter of
the Consolidated the Consolidated
Accounting Fiscal Accounting Fiscal
Year EndedYear Ending
October 31, 2007) October 31, 2008)(Reference)

Consolidated
Accounting Fiscal
Year Ended
October 31, 2007

Change fromprior year

AmountAmountAmountPercent

Amount1．Cash and deposits

19,617,260

15,078,971-4,538,288-23.1%

11,913,890

2．Notes receivable, trade

12,669,492

13,879,651

1,210,159

9.6%

14,239,136－

4,300,000

4,300,000－

5,300,000

831,806

936,218

104,41112.6%

533,600

1,069,201

906,905-162,296-15.2%

1,010,645

6．Deferred tax assets

249,432

189,960-59,472-23.8%

360,573

7．Other

423,194

1,098,534

675,339

159.6%

457,321

Allowance for doubtful
accounts–458,859-469,699-10,840

2.4%-488,905

Total current assets

34,401,529

35,920,542

1,519,012

4.4%

33,326,262

Rental(1) equipment assets

9,423,181

11,688,612

2,265,431

24.0%

9,523,031

Buildings(2) and structures

6,735,764

6,382,089-353,675-5.3%

6,671,521

777,519

703,159-74,359-9.6%

750,333

26,268,316

28,545,131

2,276,815

8.7%

26,268,316

Construction in(5) progress

16,816

1,126,452

1,109,636－

46,172(6) Other

243,114232,574-10,540-4.3%

238,963

43,464,712

48,678,020

5,213,308

12.0%

43,498,339(1) Goodwill

580,407864,844284,43649.0%

275,797(2) Other

142,553

168,968

26,415

18.5%

137,516

722,960

1,033,812

310,85143.0%

413,314

Assets（I）

Current Assets

3．Negotiable securities
4．Inventory
5．Construction equipment

II

Fixed assets

1. Tangible fixed assets

Machinery, equipment,(3) vehicles and delivery
equipment(4) Land

Total tangible fixed
assets
2. Intangible fixed assets

Total intangible fixed
assetsSummary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.9

Investments and other3. assets(1) Investment securities

7,287,175

4,563,222-2,723,953-37.4%

6,610,180(2) Other

2,062,751

2,843,360

780,60837.8%

2,070,164

Allowancefor doubtful accounts–817,845-994,040-176,194

21.5%-762,464

Total investments andother assets

8,532,081

6,412,542-2,119,539-24.8%

7,917,880

Total fixed assets

52,719,754

56,124,375

3,404,620

6.5%

51,829,534

87,121,284

92,044,917

4,923,633

5.7%

85,155,797

Total Assets(Unit: Thousands of yen)
Prior FY Quarter Current Quarter

PeriodItem

Consolidated
Accounting Fiscal
Year Ended
October 31, 2007

Change fromprior year

AmountAmountPercent

Amount10,846,120

12,893,633

2,047,512

18.9%

11,292,635

2．Short-term bank loans

425,000

478,123

53,12312.5%

330,000bank loans
3．Long-term
due within one year

9,562,356

9,719,738

157,382

1.6%

8,972,356

4．Current portion of bonds－

40,00040,000－－5．Corporate taxes payable

1,208,615

121,803-1,086,811-89.9%

1,449,478

210,590

227,709

17,1188.1%

552,926

2,448,648

3,137,232

688,58428.1%

2,346,872

779,547

714,456-65,090-8.3%

642,568

25,480,878

27,332,696

1,851,818

7.3%

25,586,836

17,079,294

19,746,577

2,667,283

15.6%

15,718,705－

20,00020,000－－1,797,335

993,390-803,944-44.7%

935,980

128,714167,565

38,851

30.2%

132,633

2,453,960

3,922,590

1,468,629

59.8%

2,486,318

239,244483,516

244,272102.1%

321,805

Total long-term
liabilities

21,698,548

25,333,640

3,635,091

16.8%

19,595,442

Total Liabilities

47,179,426

52,666,336

5,486,909

11.6%

45,182,279

Liabilities)

Current liabilities
and accounts
1．Notespayable, tradebonuses to
6．Accrued
employees
7．Accounts payable, other
8．Other
Total current liabilities
II(Reference)

Amount(I(Third Quarter of (Third Quarter of
the Consolidated the Consolidated
Accounting Fiscal Accounting Fiscal
Year EndedYear Ending
October 31, 2007) October 31, 2008)

Long-term liabilities
1．Long-term bank loans
2．Bonds
employees
3．Accrued
retirement benefits
allowances
4．Retirement
to directors and auditors
accrued5．Long-term
expenses
6．Other

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.10

(Unit: Thousands of yen)
Prior FY Quarter

PeriodItem

Current Quarter(Third Quarter of(Third Quarter of
the Consolidated
the Consolidated
Accounting Fiscal
Accounting Fiscal
Year Ending
Year Ended
October 31,
October 31, 2007)
2008)(Reference)

Consolidated
Accounting Fiscal
Year Ended
October 31, 2007

Change fromprior year

AmountAmount1. Paid-in capital

9,696,717

9,696,717－－

9,696,717

2. Capital surplus

10,960,869

10,960,869－－

10,960,869

3. Earned surplus

16,890,353

17,480,586

590,232

3.5%

17,333,642

4. Treasury stock–17,053-21,370-4,31725.3%-19,784

37,530,887

38,116,803

585,915

1.6%

37,971,444

Valuation difference onother investment
securities

2,410,970

1,003,587-1,407,382-58.4%

2,002,072

Total Valuation andTranslation
Adjustments

2,410,970

1,003,587-1,407,382-58.4%

2,002,072－

258,190258,190－－

Total Net Assets

39,941,857

39,378,580-563,276-1.4%

39,973,517

Total Liabilities andNet Assets

87,121,284

92,044,917

4,923,633

5.7%

85,155,797（
I

Net Assets

AmountPercent

Amount）Owners’ equity

Total Owners’ Equity
andII Valuationtranslation adjustments

III Minority interests

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.11

2. (Summary) Third Quarter Consolidated Statements of Income
PeriodItem

Prior FY Quarter(Unit: Thousands of yen)

Current Quarter(Third Quarter of(Third Quarter of
the Consolidated
the Consolidated
Accounting Fiscal
Accounting Fiscal
Year Ending
Year Ended
October 31,
October 31, 2007)
2008)(Reference)

Consolidated
Accounting Fiscal
Year Ended
October 31, 2007

Change fromprior year

AmountAmountAmountPercent

AmountI Revenuesof revenues
II Costfrom operations

52,237,886

53,668,788

1,430,902

2.7%

68,626,913

37,424,123

39,296,596

1,872,472

5.0%

49,490,405

Gross profit

14,813,762

14,372,192-441,569-3.0%

19,136,507

Selling, general and
III administrative
expenses

11,126,047

12,080,613

954,566

8.6%

14,899,972

Operating income

3,687,714

2,291,578-1,396,135-37.9%

4,236,534

1. Interest revenue

18,65644,805

26,149140.2%

44,782

2. Dividend income

50,126

67,904

17,77735.5%

51,715on sale of
3. Gaininvestment securities

284,512－-284,512-100.0%287,528

4. Insurance benefits

24,14550,90026,754110.8%

38,877

5. Rents received

61,09459,483-1,611-2.6%

81,409

6. Cash bonus received

103,095

5,890-97,204-94.3%

105,737

7. Other

72,756

94,397

21,64029.7%

102,577

614,387

323,381-291,005-47.4%

712,627

304,675

267,411-37,264-12.2%

338,051

on sale of notes
2. Lossreceivable－

60,666

60,666－75,155

Loss on sale of
3. investment
securities

－

477

477

－

－

81,46798,02816,561

20.3%

119,684

386,142426,583

40,44010.5%

532,8913,915,959

2,188,376-1,727,582-44.1%

4,416,270

on sale of fixed
1. Gainassets921,056

21,805-899,250-97.6%

921,056

Gain on reversal of
2. allowance for
doubtful accounts

20,96526,333

5,368

25.6%

21,1093. Other

7,239

5,341

-1,898-26.2%

858,670

949,261

53,480-895,780-94.4%

1,800,836

IV Non-operating
revenues

Total non-operating
revenues
VNon-operating
expenses

1. Interest expense

4. Other
Total non-operating
expenses
Ordinary income
VI Extraordinary profits

Total extraordinary
profits
VII Extraordinary losses

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.12

Loss on sale or
1. retirement of fixed
assets54,96750,493-4,473-8.1%

68,231

890

490

-400

-44.9%

890

loss on
3. Valuation
investment securities

11,01642,231

31,214283.3%

11,016

4. Other

25,71874,517

48,799189.7%

369,022

Total extraordinary
losses

92,592

167,733

75,14081.2%

449,161

Income before taxes
and adjustments

4,772,627

2,074,123-2,698,503-56.5%

5,767,945

2,022,304

874,391-1,147,913-56.8%

2,286,833

158,194

140,322-17,871-11.3%

410,200－

84,73084,730－35,4932,592,128

974,679-1,617,449-62.4%

3,035,418

2. Impairment loss

Corporate, local andbusiness taxes
Adjustment forcorporate and othertaxes
Minority interest inincomeNet income

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.13

3. (Summary) Third Quarter Consolidated Statement of Changes in Net Assets

Third quarter of the prior consolidated accounting fiscal year (November 1, 2006 - July 31, 2007)(Thousands of yen)
Owners’ equity

Balance at the end of the priorconsolidated fiscal year
(October 31, 2006)

Paid-in capital

Capital surplus

Earned surplus

Treasury stock

9,696,717

10,960,869

14,889,638-6,303

Total owners’
equity35,540,922

Change of items during theThird quarter under review
Dividends from surplus-295,732-295,732

Dividends from surplus(interim dividend)-295,682-295,682

Third quarter net income

2,592,128

2,592,128

Purchase of treasury stock-10,749-10,749

Net change of items otherthan owners’ equity during
the Third quarter underreview
Total change of items during theThird quarter under review
Balance at the end of theThird quarter under review(July 31, 2007)－－

2,000,714-10,749

1,989,965

9,696,717

10,960,869

16,890,353-17,053

37,530,887

Valuation and translation adjustments

Balance at the end of the priorconsolidated fiscal year
(October 31, 2006)

Valuationdifference on otherinvestment
securities

Total valuation andtranslation
adjustments

Minority interests

2,418,684

2,418,684

92,159Total net assets

38,051,766

Change of items during theThird quarter under review
Dividends from surplus-295,732

Dividends from surplus(interim dividend)-295,682

Third quarter net income

2,592,128-10,749

Purchase of treasury stock
Net change of items otherthan owners’ equity during
the Third quarter underreview-7,714-7,714-92,159-99,874

Total change of items during theThird quarter under review-7,714-7,714-92,159

1,890,091

2,410,970

2,410,970－

39,941,857

Balance at the end of theThird quarter under review(July 31, 2007)

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.14

Third quarter of the current consolidated accounting fiscal year
(November 1, 2007 - July 31, 2008)(Thousands of yen)
Owners’ equity

Balance at the end of the priorconsolidated fiscal year
(October 31, 2007)

Paid-in capital

Capital surplus

Earned surplus

Treasury stock

9,696,717

10,960,869

17,333,642-19,784

Total owners’
equity37,971,444

Change of items during theThird quarter under review
Dividends from surplus-689,760-689,760

Third quarter net income

974,679

974,679

Change of scope of
consolidation-137,975-137,975

Purchase of treasury stock-1,585-1,585

Net change of items otherthan owners’ equity during
the Third quarter underreview
Total change of items during theThird quarter under review
Balance at the end of theThird quarter under review(July 31, 2008)－－

146,943-1,585

145,358

9,696,717

10,960,869

17,480,586-21,370

38,116,803

Valuation and translation adjustments

Balance at the end of the priorconsolidated fiscal year
(October 31, 2007)

Valuationdifference on otherinvestment
securities

Total valuation andtranslation
adjustments

Minority interests

2,002,072

2,002,072－

Total net assets

39,973,517

Change of items during theThird quarter under review
Dividends from surplus－-689,760

Third quarter net income－

974,679

Change of scope of
consolidation－-137,975

Purchase of treasury stock－-1,585

Net change of items otherthan owners’ equity during
the Third quarter underreview-998,484-998,484

258,190-740,294

Total change of items during theThird quarter under review-998,484-998,484

258,190-594,936

Balance at the end of theThird quarter under review(July 31, 2008)

1,003,587

1,003,587

258,190

39,378,580

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.15

(Reference) Prior Consolidated Accounting Fiscal Year (From November 1, 2006 to October 31, 2007)(Thousands of yen)
Owners’ equity
Paid-in capital
Balance at the end of theprevious consolidated
accounting fiscal year
(October 31, 2006)

Capital surplus

Earned surplus

Treasury stock

10,960,869

14,889,638-6,303

9,696,717

Total owners’
equity35,540,922

Change of items during theconsolidated accounting fiscal
year under review
Dividends from surplus-591,414-591,414

Net income

3,035,418

3,035,418

Purchase of treasury stock-13,481-13,481

Net change of items otherthan owners’ equity during
the consolidated accounting
fiscal year
Total changes of items during
the consolidated accounting
fiscal year under review－－

2,444,003-13,4812,430,522

Balance at the end of theconsolidated accounting fiscal
year under review(October 31, 2007)

9,696,717

10,960,869

17,333,642-19,784

37,971,444

Valuation and translation adjustments

Balance at the end of theprevious consolidated
accounting fiscal year
(October 31, 2006)

Minority interests

Valuation differenceon other investment
securities

Total valuation andtranslation
adjustments

2,418,684

2,418,684

92,159Total net assets

38,051,766

Change of items during theconsolidated accounting fiscal
year under review
Dividends from surplus－-591,414

Net income－

3,035,418

Purchase of treasury stock－-13,481

Net change of items otherthan owners’ equity during
the consolidated accounting
fiscal year

-416,611-416,611-92,159-508,771

Total changes of items during
the consolidated accounting
fiscal year under review-416,611-416,611-92,159

1,921,750

Balance at the end of theconsolidated accounting fiscal
year under review(October 31, 2007)

2,002,072

2,002,072－

39,973,517

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.16

4. (Summary) Third Quarter Consolidated Statements of Cash Flows
Prior FY Quarter

PeriodItem
Ⅰ Cash flow from operating activities
Income before taxes andadjustments
Depreciation and amortization
expenseImpairment loss

(Unit: Thousands of yen)
Current Quarter(Reference)(Third Quarter of theConsolidated
Accounting Fiscal Year
Ended October 31,
2007)(Third Quarter of theConsolidated
Accounting Fiscal YearEnding October 31,
2008)

Consolidated
Accounting Fiscal Year
Ended October 31,
2007

AmountAmountAmount

4,772,627

2,074,123

5,767,945

3,375,363

3,977,407

4,648,677

890

490

890

Amortization of goodwill

125,741

190,923

395,108

Gain on sale of fixed assets
Loss on sale or retirement of fixed
assetsGain on reversal of accrued
employees retirement benefits
Installment purchases of assets forsmall-value rentals
Reclassification of cost of sales
associated with disposal of
construction equipment
Reclassification of cost of sales
associated with disposal of rental
assetsExpenditures for acquisition ofrental assets
Valuation loss on investment
securities
Gain on sale of investment
securities
Loss on sale of investment
securities
Increase in allowance for doubtful
accounts
Increase (decrease) in accrued
bonuses to employees
Decrease in accrued bonuses todirectors and auditors
Increase in accrued employees
retirement benefits
Increase (decrease) in retirement
allowances to directors and auditors
Interest revenue and dividend
incomeInterest expense on installment
purchases of rental assets
Interest expense
Decrease in accounts receivable,
trade
Increase in inventory assets
Increase (decrease) in accounts
payable, trade
Decrease in accounts payable, other-921,056-21,805-921,056

54,96750,493

68,231－－-845,319

87,58544,67897,06923,2903,882

25,597

347,858444,210397,062–1,385,829-2,054,619-2,095,742

11,01642,231

11,016–284,512－-287,528

－

477

－

78,177

146,504

52,842–301,146-332,460

41,189-5,500－-5,500115,615

56,917

99,580–499

33,761

3,419–68,782-112,709-96,497

32,27973,53643,182

304,675

267,411

338,051

2,289,833

1,504,836

720,189-271,238-291,330-27,730-1,573,216

538,529-1,126,702-45,067-15,162-76,564

Other-142,571-895,630-257,663

Subtotal

6,620,502

5,726,694

6,969,749

Interest and dividends received

62,291

112,982

90,470Interest expense
Payment of corporate and other
taxes
Cash flow from operating activities-341,914-357,350-377,448-2,179,169-2,225,334-2,202,835

4,161,709

3,256,991

4,479,936

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.17

Prior FY Quarter

PeriodItem(Unit: Thousands of yen)
Current Quarter(Reference)(Third Quarter of theConsolidated
Accounting Fiscal Year
Ended October 31,
2007)(Third Quarter of theConsolidated
Accounting Fiscal YearEnding October 31,
2008)

Consolidated
Accounting Fiscal Year
Ended October 31,
2007

AmountAmountAmountII Cash flow from investing activities
Funds used for investment in term
deposits
Funds provided from redemption ofterm deposits
Funds used for the purchase of tangible
fixed assets
Funds provided from the sale of tangible
fixed assets
Funds used for the purchase ofintangible fixed assets
Funds used for the purchase ofinvestment securities
Funds provided from sale of investment
securities
Funds used for the purchase of
consolidated subsidiary stock
Funds used for the purchase ofnon-consolidated subsidiary stock
Funds used for establishment ofaffiliated company
Other
Cash flow from investing activities
III－-52,098－－

148,357－-1,841,359-3,246,784-2,059,416

1,849,138

159,810

1,875,374-58,703-54,768-64,781-74,572-91,809-123,716

492,794

44,771

527,674-367,200-62,664-367,450-1,199,992-726,221-1,199,992-34,778-100,000-34,778

15,965

8,028

20,077-1,218,708-3,973,378-1,427,009-72,704

38,123-167,704

8,750,000

12,160,000

9,550,000-8,216,957-7,555,523-10,967,546－-40,000－-1,582,227-1,863,035-2,047,202-10,749-1,585-13,481-591,414-689,760-591,414-1,724,052

2,048,219-4,237,348

Cash flow from financing activities
Increase (decrease) in short-term bankloans
Funds provided by long-term bankloans
Funds used to repay long-term bankloans
Funds used for redemption of bonds
Funds used for repayment of
installment obligations
Funds used for the purchase of treasury
stock
Payment of dividends to parent
company
Cash flow from financing activities
Ⅳ

Increase (decrease) in cash andequivalents

1,218,948

1,331,832-1,184,421

Ⅴ

Balance of cash and equivalents at
beginning of period

18,398,312

17,213,890

18,398,312

Ⅵ

Increase in cash and equivalents
resulting from newly consolidated
subsidiaries－

680,339－

Ⅶ

Balance of cash and equivalents at
end of the period

19,617,260

19,226,063

17,213,890

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.18

5. Business Segment Information[ Segment information by type of business ]Same quarter of the prior consolidated accounting fiscal year
(From November 1, 2006 to July 31, 2007)(Unit: Thousands of yen)
Construction
equipment
rentalbusiness

Steel sales
business

Information
products
businessand otherbusinesses

Revenues

48,055,148

3,857,874

324,862

Operatingexpenses

44,490,188

3,869,794

Operatingincome3,564,959-11,919

Eliminations
or entirecompany

Consolidated

52,237,886－

52,237,886

295,954

48,655,937-105,765

48,550,171

28,9083,581,948

105,765

3,687,714

Total

Current quarter (From November 1, 2007 to July 31, 2008)(Unit: Thousands of yen)
Construction
equipment
rentalbusiness

Steel sales
business

Information
products
businessand otherbusinesses

Revenues

48,272,484

4,998,299

398,004

Operatingexpenses

46,036,822

4,972,650

Operatingincome2,235,661

25,649Eliminations
or entirecompany

Consolidated

53,668,788－

53,668,788

341,927

51,351,400

25,80951,377,210

56,0762,317,388-25,8092,291,578

Total(Reference) Prior consolidated accounting fiscal year Ended October 31, 2007
(Unit: Thousands of yen)
Construction
equipment
rentalbusiness

Steel sales
business

Information
products
businessand otherbusinesses

Revenues

63,072,214

5,120,674

434,024

Operatingexpenses

59,017,423

5,130,682

Operatingincome4,054,791-10,008

Eliminations
or entirecompany

Consolidated

68,626,913－

68,626,913

402,403

64,550,509-160,130

64,390,378

31,621

4,076,403

160,130

4,236,534

Total

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.19

[ Segment information by location ]Current quarter and Third quarter of the prior consolidated fiscal year
The Company had no material items to report because the Company did not have any consolidated
subsidiaries or important offices located in countries or regions outside of Japan.
[Foreign sales ]Same quarter of the prior consolidated accounting fiscal year(Third Quarter of the Consolidated
Accounting Fiscal Year Ended October 31, 2007)
There are no pertinent items to report because the Company did not have any foreign sales.
Current quarter (Third Quarter of the Consolidated Accounting Fiscal Year Ending October 31, 2008)
The Company has omitted a description of foreign sales because foreign sales are less than 10% ofconsolidated revenues.

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.20

6. (Summary) Third Quarter Non-Consolidated Balance Sheets(Unit: Thousands of yen)
Prior FY Quarter Current Quarter
Period (Third Quarter of (Third Quarter of
the Fiscal Yearthe Fiscal Year
Ended October 31, Ending October
2007)
31, 2008)

Item(Reference)

Change fromprior year

Fiscal Year Ended
October 31, 2007

AmountAmountAmountPercent

Amount1．Cash and deposits

18,871,893

13,440,081-5,431,811-28.8%

11,115,248

2．Notes receivable, trade

1,809,561

2,091,441

281,879

15.6%

2,255,833

Accounts receivable,
trade

9,263,499

9,379,422

115,923

1.3%

10,825,811

4．Negotiable securities－

4,300,000

4,300,000－

5,300,000

5．Inventory

462,526

514,389

51,86211.2%

295,013

6．Construction equipment

820,314654,375-165,938-20.2%

770,099

7．Deferred tax assets

242,886

167,737-75,148-30.9%

355,902

8．Other

319,876

981,746

661,870206.9%

408,597

Allowance for doubtful
accounts–390,137-370,481

19,656-5.0%-435,092

Total current assets

31,400,420

31,158,714-241,706-0.8%

30,891,414

Rental(1) equipment assets

9,191,222

10,284,070

1,092,848

11.9%

9,297,639(2) Buildings

5,546,665

5,228,233-318,431-5.7%

5,502,751(3) Structures

967,063

869,135-97,927-10.1%

952,093(4) Land

25,996,422

27,995,930

1,999,508

7.7%

25,996,422(5) Other

1,006,025

1,872,354

866,32986.1%

1,005,580

42,707,398

46,249,725

3,542,327

8.3%

42,754,487

161,406

152,920-8,486-5.3%

148,235(1) Investment securities

5,923,246

3,578,192-2,345,053-39.6%

5,249,609

Stock of affiliated(2) companies

2,649,304

3,510,688

861,38432.5%

2,649,554

40,389518,888478,499－－

2,277,436

2,600,480

323,04414.2%

2,205,373

Allowancefor doubtful accounts–498,562-585,268-86,706

17.4%-430,758

Reserve forinvestment losses–565,171-565,171－－-565,171

Assets（I）

Current Assets

3．

II

Fixed assets

1. Tangible fixed assets

Total tangible
assetsfixed

2. Intangible fixed assets
Total intangible fixed
assetsInvestments and other3. assets(3) Deferred tax assets(4) OtherSummary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.21

Total investments
and other assets

9,826,642

9,057,810-768,832-7.8%

9,108,607

Total fixed assets

52,695,447

55,460,455

2,765,008

5.2%

52,011,330

84,095,868

86,619,169

2,523,301

3.0%

82,902,745

Total Assets(Unit: Thousands of yen)
Prior FY Quarter Current Quarter(Third Quarter (Third Quarter
Periodof the Fiscalof the Fiscal
Year EndedYear Ending
October 31,
October 31,
2007)
2008)

Item

AmountAmountand accounts
1．Notespayable, trade

7,458,550

8,070,006

2．Accounts payable, trade

1,960,230

bank loans
3．Long-term
due within one year
4．Accounts payable, other(I

Liabilities(Reference)
Fiscal Year
Ended October
31, 2007

Change fromprior year

AmountPercent

Amount

611,4568.2%

7,660,014

2,226,208

265,978

13.6%

2,456,499

9,408,000

9,496,000

88,0000.9%

8,818,000

2,325,034

2,469,827

144,792

6.2%

2,211,522

1,100,475－-1,100,475-100.0%1,406,425

152,618

150,565-2,053-1.3%

499,457

827,333

1,216,225

388,89147.0%

706,663

23,232,242

23,628,832

396,589

1.7%

23,758,582

16,248,000

18,893,000

2,645,000

16.3%

14,926,000

2,320,538

2,782,073

461,53519.9%

2,353,188

－

－

－

－

58,726

1,781,221

984,227-796,993-44.7%

928,956

86,732

98,378

11,646

13.4%

89,386

20,436,491

22,757,679

2,321,187

11.4%

18,356,256

43,668,734

46,386,511

2,717,777

6.2%

42,114,839)

Current liabilities

taxes
5．Corporate
payablebonuses to
6．Accrued
employees
7．Other
Total current liabilities
II

Long-term liabilities

1．Long-term bank loans
accrued2．Long-term
expenses
3．Deferred tax liability
employees
4．Accrued
retirement benefits
Retirement allowances
5．to directors andauditors
Total long-term
liabilities
Total Liabilities

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.22

(Unit: Thousands of yen)
Current Quarter
Prior FY Quarter(Third Quarter
Period (Third Quarter ofof the Fiscal
the Fiscal Year
Year Ending
Ended October
October 31,
31, 2007)
2008)

Item

（

(Reference)
Accounting
Fiscal Year
Ended October
31, 2007

Change fromprior year

AmountAmount

9,696,717

9,696,717－－

9,696,717

Capital legal reserve

10,817,389

10,817,389－－

10,817,389

Other capital surplus

143,480

143,480－－

143,480

10,960,869

10,960,869－－

10,960,869

Earned legal reserve

1,375,287

1,375,287－－

1,375,287

Other earned surplus

16,005,039

17,219,781

1,214,742

7.6%

16,775,081

Reserve for advanced
depreciation of fixed
assets

19,601

19,601－－

19,601

General reserve

12,931,684

15,631,684

2,700,000

20.9%

12,931,684

Earned surplus brought
forward3,053,752

1,568,494-1,485,257-48.6%

3,823,794

Total earned surplus

17,380,326

18,595,068

1,214,742

7.0%

18,150,368-17,053-21,370-4,31725.3%-19,784

38,020,860

39,231,285

1,210,425

3.2%

38,788,170

2,406,273

1,001,373-1,404,900-58.4%

1,999,735

Total Valuation andTranslation
Adjustments

2,406,273

1,001,373-1,404,900-58.4%

1,999,735

Total Net Assets

40,427,134

40,232,658-194,475-0.5%

40,787,905

Total Liabilities and Net
Assets84,095,868

86,619,169

2,523,301

3.0%

82,902,745

Net Assets

AmountPercent

Amount）I Owners’ equity
1. Paid-in capital
2. Capital surplus

Total Capital Surplus
3．Earned surplus

4．Treasury stock
Total owners' equity
andII Valuationtranslation adjustments
Valuation difference onother investment
securities

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.23

2. (Summary) Third Quarter Non-Consolidated Statements of Income(Unit: Thousands of yen)
Period Prior FY Quarter Current Quarter

Item(Third Quarter of (Third Quarter of
the Fiscal Yearthe Fiscal Year
Ended October 31, Ending October
31, 2008)
2007)

AmountAmountI Revenues

46,728,194

46,250,105

of revenues
II Costfrom operations

33,791,092

Gross profit(Reference)

Change fromprior year

AmountFiscal Year Ended
October 31, 2007

Percent

Amount-478,089-1.0%

61,576,788

34,281,138

490,046

1.5%

44,713,746

12,937,102

11,968,966-968,135-7.5%

16,863,041

Selling, general and
III administrative
expenses

9,495,943

9,671,412

175,469

1.8%

12,850,084

Operating income

3,441,159

2,297,554-1,143,605-33.2%

4,012,957

IV

Non-operating
revenues

1.

Interest anddividends

73,332

112,616

39,284

53.6%

102,533

2.

Gain on sale ofinvestment securities

284,512840-283,671-99.7%

287,528

3. Rents received

193,808

143,075-50,732-26.2%

195,809

4. Other

233,261

96,613-136,648-58.6%

267,057

784,915353,146-431,768-55.0%

852,930

1. Interest expense

280,437

245,423-35,014-12.5%

312,601

2. Other

76,034

144,745

68,71090.4%

180,384

356,472

390,168

33,6959.5%

492,9853,869,602

2,260,532-1,609,069-41.6%

4,372,901

on sale of fixed
1. Gainassets920,700

5,354-915,345-99.4%

920,700

2. Other

26,574

22,672-3,901-14.7%

875,828

947,274

28,026-919,247-97.0%

1,796,528

52,54235,286-17,256-32.8%

63,908

890

490

-400

-44.9%

890

11,01642,231

31,214283.3%

11,016

－

－

－

－

8,311

Total non-operating
revenues
VNon-operating
expenses

Total non-operating
expenses
Ordinary income
VI Extraordinary profits

Total extraordinary
profits
VII Extraordinary losses
Loss on sale or
1. retirement of fixed
assets
2. Impairment loss
loss on
3. Valuation
investment securities
Transfer tofor
4. allowance
doubtful loans toaffiliates

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.24

5. Other

19,99758,62538,627193.2%

31,500Total extraordinary
losses84,447

136,633

52,185

61.8%

115,626

Income before taxes
and adjustments

4,732,429

2,151,926-2,580,502-54.5%

6,053,803

1,914,075

730,174-1,183,901-61.9%

2,203,734

157,379

287,291

129,91282.5%

419,052

2,660,974

1,134,459-1,526,514-57.4%

3,431,016

Corporate, local andbusiness taxes
Adjustment forcorporate and othertaxes
Net income

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.25

3. (Summary) Third Quarter Non-Consolidated Statement of Changes in Net
AssetsThird quarter of the prior fiscal year(November 1, 2006 - July 31, 2007)(Thousands of yen)
Owners’ Equity
Capital surplus

Other earned surplus

Paid-in
capitalBalance at the end of the priorfiscal year (October 31, 2006)

Earned surplus

9,696,717

Capital legal
reserve

Other
capitalsurplusTotal
capitalsurplus10,817,389

143,480

10,960,869

Earned legal
reserve

Reserveforadvanceddepreciati
on of fixed
assets1,375,287

19,601

Generalreserve

Net earned
surplusbrought
forward

Total earned
surplus11,831,684

2,084,192

15,310,766

1,100,000–1,100,000―

Change of items during theThird quarter under review
Transfer to general reserve―

Dividends from surplus―–295,732–295,732

Dividends from surplus(interim dividend)―–295,682–295,682

Third quarter net income―

2,660,974

2,660,974

Purchase of treasury stock―

Net change of items otherthan owners' equity during
the Third quarter underreview
Total change of items during
the Third quarter under review
Balance at the end of theThird quarter under review(July 31, 2007)

―

―

―

―

―

―

1,100,000

969,559

2,069,559

9,696,717

10,817,389

143,480

10,960,869

1,375,287

19,601

12,931,684

3,053,752

17,380,326

Owners’ Equity
Treasury stock
Balance at the end of the priorfiscal year (October 31, 2006)-6,303

Valuation and translation adjustments

Total Owners’ Equity

35,962,049

Valuation difference onother investment
securities

Total valuation andtranslation adjustments

2,414,062

2,414,062

Total Net Assets

38,376,112

Change of items during theThird quarter under review
Transfer to general reserve――

Dividends from surplus-295,732-295,732

Dividends from surplus(interim dividend)-295,682-295,682

Third quarter net income

2,660,974

2,660,974-10,749-10,749

Purchase of treasury stock-10,749

Net change of items otherthan owners' equity during
the Third quarter underreview-7,788-7,788-7,788

Total change of items during theThird quarter under review-10,749

2,058,810-7,788-7,7882,051,021

Balance at the end of theThird quarter under review(July 31, 2007)-17,053

38,020,860

2,406,273

2,406,273

40,427,134

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.26

Third quarter of the current fiscal year(November 1, 2007 - July 31, 2008)(Thousands of yen)
Owners’ Equity
Capital surplus

Other earned surplus

Paid-in
capitalBalance at the end of the priorfiscal year (October 31, 2007)

Earned surplus

9,696,717

Capital legal
reserve

Other
capitalsurplusTotal
capitalsurplus10,817,389

143,480

10,960,869

Earned legal
reserve

Reserveforadvanceddepreciati
on of fixed
assets1,375,287

19,601

Generalreserve

Net earned
surplusbrought
forward

Total earned
surplus12,931,684

3,823,794

18,150,368

2,700,000-2,700,000―

Change of items during theThird quarter under review
Transfer to general reserve―

Dividends from surplus―-689,760-689,760

Third quarter net income―

1,134,459

1,134,459

Purchase of treasury stock――

Net change of items otherthan owners' equity during
the Third quarter underreview
Total change of items during
the Third quarter under review
Balance at the end of theThird quarter under review(July 31, 2008)

―

―

―

―

―

―

2,700,000-2,255,300

444,699

9,696,717

10,817,389

143,480

10,960,869

1,375,287

19,601

15,631,684

1,568,494

18,595,068

Owners’ Equity
Treasury stock
Balance at the end of the priorfiscal year (October 31, 2007)-19,784

Valuation and translation adjustments

Total Owners’ Equity

38,788,170

Valuation difference onother investment
securities

Total valuation andtranslation adjustments

1,999,735

1,999,735

Total Net Assets

40,787,905

Change of items during theThird quarter under review
Transfer to general reserve――

Dividends from surplus-689,760-689,760

Third quarter net income

1,134,459

1,134,459-1,585-1,585Purchase of treasury stock-1,585

Net change of items otherthan owners' equity during
the Third quarter underreview-998,361-998,361-998,361

Total change of items during theThird quarter under review-1,585443,114-998,361-998,361-555,247

Balance at the end of theThird quarter under review(July 31, 2008)-21,370

39,231,285

1,001,373

1,001,373

40,232,658

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.27

(Reference) Prior Fiscal Year (From November 1, 2006 to October 31, 2007)(Thousands of yen)

Owners’ equity
Capital surplus

Earned surplus
Other earned surplus

Paid-in
capitalBalance at the end of the priorfiscal year (October 31, 2006)

Capitallegal
reserve

9,696,717 10,817,389

Othercapitalsurplus

Total capitalsurplus143,480

10,960,869 1,375,287

Reserve foradvanceddepreciatio
n of fixed
assetsLegalearnedsurplusGeneralreserve

19,601 11,831,684

Net earned
surplusbrought
forwardTotal
earnedsurplus2,084,192 15,310,766

Treasury
stock

Total
Owners’Equity- 6,303 35,962,049

Changes of items during the
fiscal year
Transfer to general reserve－

Dividends from surplus

1,100,000-1,100,000

－

－

－

-591,414-591,414-591,414

Net income－

3,431,016

3,431,016

3,431,016

Purchase of treasury stock－－-13,481-13,4812,839,602-13,4812,826,120

Net changes of items otherthan owners’ equity during the
fiscal year
Total changes of items during
the fiscal year
Balance at the end of fiscal
year under review(October 31, 2007)

－

－

－

9,696,717 10,817,389

143,480－

10,960,869 1,375,287

Valuation and translation
adjustments
Valuation difference
Total valuation andon other investment
translation
securities
adjustments
Balance at the end of the priorfiscal year (October 31, 2006)

2,414,062－－

1,100,000

19,601 12,931,684

1,739,602

3,823,794 18,150,368-19,784 38,788,170

Total net assets

2,414,062

38,376,112

Transfer to general reserve―－

Dividends from surplus―-591,414

Net income―

3,431,016

Purchase of treasury stock―-13,481-414,327-414,327-414,327

Total changes of items during
the fiscal year

-414,327-414,327

2,411,793

Balance at the end of fiscal
year under review(October 31, 2007)

1,999,735

1,999,735

40,787,905

Changes of items during the
fiscal year

Net changes of items otherthan owners’ equity during the
fiscal year

Summary of Third Quarter Operating Results
Fiscal Year Ending October 31, 2008
P.28