Six-month Consolidated Financial Report for the Fiscal YearEnding October 31, 2012 [Japan GAAP]
June 8, 2012
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
President
Inquiries
Nobuhito Utatsu
Director & Corporate Officer, Division Manager, Accounting Division
TEL 81-11-209-1600
Please send inquiries in English to takayama@kanamoto.co.jp.
Scheduled date for submission of Quarterly Report
June 13, 2012
Scheduled date for commencement of dividend payments
July 9, 2012
Preparation of Quarterly Settlement Supplementary
Explanatory Materials
Yes
Quarterly Earnings Briefings
Yes(For institutional investors and analysts)
1. Operating Results for the Interim Period of the Fiscal Year Ending October 31, 2012
(November 1, 2011 – April 30, 2012)(1) Consolidated Operating Results (Year-to-Date)(Numbers less than one million yen have been rounded down)(Percentages shown are the percent increase or decrease compared to the same period of the prior consolidated fiscal year)

Revenues

Operating Income

Millions of yen

Fiscal Year ending October 31, 2012:
Second quarter
Fiscal Year ended October 31, 2011:
Second quarter

40,012Millions of yen

％

13.3

3,554

％

106.1

35,309 －4.9

1,724 －46.0

Net Income
per Share

Diluted Net
Income per
Share
Yen

Fiscal Year ending October 31, 2012:
Second quarter
Fiscal Year ended October 31, 2011:
Second quarter

Ordinary
IncomeMillions of yen

3,297

Net Income
％

134.1

1,408 －51.8

Yen

54.10

―

1.50

―

Total Assets

Net Assets(2) Consolidated Financial Position

Millions of yen

Shareholders’Equity Ratio

Millions of yen

Fiscal Year ending October 31, 2012:
125,597
39,227
30.8
Second quarter
Fiscal Year ended October 31, 2011
115,120
37,59232.2(Reference) Shareholders’ equity
Fiscal Year Ending October 31, 2012 Second Quarter:¥38,707 million
Fiscal Year Ended October 31, 2011:¥37,085 million

1％Millions of yen

1,776

％

―

49 －96.7

2. Dividends
End of 1Q
Yen

Annual Dividends per Share
End of 2Q End of 3Q
Year-end
Yen

Yen

Fiscal year ended October 31, 2011
─
10.00
─
Fiscal year ending October 31, 2012
10.00
Fiscal Year ending October 31, 2012─
(Projected)(Note) Has the Company revised its most recently released dividend projection? No

Yen

Full year
Yen

10.00

20.00

10.00

20.00

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 2012
(November 1, 2011 - October 31, 2012)(Percentages indicate percent change from prior fiscal year)

Operating
IncomeRevenues
Millions of yen％

Millions of yen

Ordinary
Income％Millions of yen

Net Income per
Share

Net Income％

Millions of yen％

Yen

Full year
76,280 7.3
4,710 62.1
4,200 87.5
2,110 81.0
64.26
(Note) Has the Company revised its most recently released projected consolidated operating results? No

2

4. Other(1) Were there changes to material subsidiaries during the period under review (transfer of specified
subsidiaries in conjunction with revisions to the scope of consolidation): No
Company newly included (Company name:)Company newly excluded (Company name:)(2) Has the Company applied the special accounting method for preparation of the quarterly consolidated
financial statements: Yes
Note: For details please refer to “2. Matters Concerning Summary Information (Other): (2) Applicationof Special Accounting Method in the Preparation of the Quarterly Consolidated Financial
Statements” on p. 3 of the Attachments(3) Changes in accounting policy, changes in accounting estimates and retrospective restatement(a) Changes in accounting policy in conjunction with revision of accounting standards?: None(b) Changes other than the above: None(c) Changes in accounting estimates?: None(d) Retrospective restatements: None
(4) Number of shares issued (common stock)(a) Number of shares outstanding at the end of the period (including treasury stock)
Fiscal year ending October 31, 2012 Second Quarter:
32,872,241 sharesFiscal year ended October 31, 2011:
32,872,241 shares(b) Number of shares of treasury stock at the end of the period
Fiscal year ending October 31, 2012 Second Quarter:
38,935 sharesFiscal year ended October 31, 2011:
37,712 shares(c) Average number of shares during the period (consolidated year-to-date)Fiscal year ending October 31, 2012 Second Quarter:
32,834,561 sharesFiscal year ended October 31, 2011 Second Quarter:
32,834,891 shares
Note: Disclosure concerning status of implementation of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial
Instruments and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has
not completed the quarterly review procedure for quarterly financial statements.
Note: Explanation concerning appropriate use of the projected operating results and other items to note
(Note Concerning Forward-Looking Statements)
The above projections were prepared based upon information available to the Company at the time theprojections were announced as well as various assumptions concerning the future economic and businessenvironment. Actual operating results may differ from the projected figures depending upon various factors in
the future. Please refer to the Qualitative Information Concerning Consolidated Projected Operating Results
on Page 3 of the Attachments for the conditions used as assumptions for the projected operating results andmatters to note before using the projected operating results.

3

Attachments Table of Contents
I. Qualitative Information Concerning Quarterly Consolidated Operating Results ……………………………………

5(1) Qualitative Information Concerning Consolidated Operating Results ……………………………………………

5(2) Qualitative Information Concerning Consolidated Financial Position ……………………………………………

7(3) Qualitative Information Concerning Projected Consolidated Operating Results ………………………………

7

II. Matters Concerning Summary Information (Other) ……………………………………………………………………

7(1) Changes to Material Subsidiaries during the Consolidated Period under Review ………………………………
(2) Application of Special Accounting Method in the Preparation of theQuarterly Consolidated Financial Statements ………………………………………………………………………
(3) Supplemental Information ……………………………………………………………………………………………

7

8

III. Quarterly Consolidated Financial Statements …………………………………………………………………………

10(1) Quarterly Consolidated Balance Sheets ……………………………………………………………………………
(2) Quarterly Consolidated Statements of Income
and Quarterly Consolidated Statements of Comprehensive Income ……………………………………………
Quarterly Consolidated Statements of Income

10

Second Quarter Consolidated Year-to-Date …………………………………………………………………

13

7

13

Quarterly Consolidated Statements of Comprehensive Income
Second Quarter Consolidated Year-to-Date …………………………………………………………………

14(3) Quarterly Consolidated Statements of Cash Flows ………………………………………………………………… 16(4) Notes Relating to the Going Concern Assumption …………………………………………………………………

18(5) Business Segment Information ………………………………………………………………………………………

18(6) Notes on Significant Changes to Shareholders’ Equity ……………………………………………………………

19

4

I. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results< Management Environment > (From November 1, 2011 to April 30, 2012)
A superficial reading of Japan’s economic signals during the Kanamoto Group’s interim period showed an
improvement trend driven by restoration demand following the Great East Japan Earthquake. In general,
however, conditions remained clouded by several factors, including concerns over the risk that the domestic
economy will lose momentum, particularly because of overseas economic tremors caused by the public debt
crisis in Europe.
In the construction-related service industries in which the Kanamoto Group operates as well, construction
equipment rentals and related demand were vigorous, both in regions where restoration and recovery works inresponse to the Great East Japan Earthquake and extremely urgent public works to assist recovery in areas hit
by torrential rainfall disasters are planned, and in metropolitan areas where investments for disaster prevention
and seismic countermeasures are anticipated. Nevertheless, in regions not stricken by disasters, a difficult
environment continued. Reductions in public works expenditures gradually began to pinch as funds were focusedon the restoration budget, and with moves to restore private sector capital investment that could offset suchgovernment cutbacks also weak, demand overall will lessen.
< Interim Period Consolidated Operating Results > (From November 1, 2011 to April 30, 2012)
The Kanamoto Group’s operating results were in line with the revised operating results forecast released on
May 28. In addition to ongoing debris removal works in the three prefectures damaged by the Great East Japan
Earthquake, which are still continuing even though one year has passed since the quake, operating results
remained stronger than initially projected as infrastructure restoration works that had been delayed were
gradually started, while construction demand in unaffected regions, on the other hand, was boosted by measurestaken in response to heavy rainfall disasters, earthquake-resistance countermeasures and investment to offset
electricity shortages. As a result, second quarter consolidated operating results greatly exceeded the Company’s
previously released performance forecast.
The Kanamoto Group worked to expand its response capabilities through a variety of programs. Whilecontinuing to pursue optimum asset placement as it has in the past, the Group is adopting and providing newtechnologies, including information-aided construction and labor-saving new commercial products, willingly andunconditionally supporting restoration and reconstruction in the three damaged prefectures, and strengthening its
branches in the same regions. The Group strove to secure earnings from every aspect by also responding
aggressively to construction equipment demand that was not to related construction works, which has been
exhibiting growth since the earthquake.
As a result of these factors, consolidated revenues for the first half of the Business Period ending in October
2012 were ¥40,012 million, up 13.3% compared with the same period of the previous consolidated fiscal year.
From an earnings perspective, consolidated operating income rose 106.1% from the same period one year
earlier to ¥3,554 million, and consolidated ordinary income jumped 134.1% year-on-year to ¥3,297 million. Net
income improved significantly to ¥1,776 million.
Results for each of the Group’s business segments were as follows.
[ Business related to the Construction Equipment Rental Division ]Looking at construction equipment rental revenues by region, the Hokkaido Region faced difficult conditions,
including the first signs that reductions in public sector demand under the restoration budget will have a negative
effect. As a result of vigorously developing the Group’s total sales, however, the year-on-year decrease inrevenues for the interim period was just 1.4%. In the Tohoku Region, rental demand was strong. Transportation
infrastructure works that are part of the earthquake restoration and recovery effort gradually increased, and when
restoration works following damage from heavy rains in Niigata were added, revenues expanded briskly, rising
50.3%. In the Kanto Region, revenues were underpinned by large-scale projects including the three Tokyo ringroads (Metropolitan Inter-City Expressway, Tokyo Outer Ring Road and Central Circular Route), public works
such as disaster prevention and disaster mitigation works, and private sector construction demand in the Tokyo
metropolitan area, and increased 14.3% compared with the interim period of the prior consolidated fiscal year. In
the Kinki & Chubu Region, revenues were up 8.4% year-on-year, aided by disaster prevention and disaster5

mitigation works in metropolitan areas and greater demand for generators because of the electricity shortage,
while in the Kyushu & Okinawa Region, revenues were sharply higher, expanding 21.0% thanks to official
demand centered on northern Kyushu.
Although accounting for a very small share of Kanamoto’s operating results, overseas construction equipment
rental revenues more than doubled, increasing 224.6% because of gradually increasing rentals in Southeast
Asia. Operating results at Shanghai Jinheyuan Engineering Construction Co., Ltd., an overseas subsidiary in
China, were nearly unchanged from the previous year as that country’s economy slowed, and SJ Rental, Inc.
similarly turned in results that were basically flat as the demand trend was unchanged.
Overseas sales of used construction equipment were off 44.1% year-on-year, reflecting the postponement ofsales as equipment was redirected to support earthquake recovery demand.
As a result of these factors, interim period revenues for Kanamoto’s construction-related businesses increased
14.8% from the same period of the previous consolidated fiscal year to ¥36,944 million, and operating income
climbed 110.9% year-on-year to ¥3,411 million.
[ Other Businesses ]In the steel products sales business Kanamoto is developing in Hokkaido, revenue was off 5.4% from thesame period of the prior fiscal year despite the start of large-scale private sector works, primarily in the Sapporo
area, as new activities requiring steel items showed a touch of weakness. The Company’s information andtelecommunications-related division, on the other hand, achieved 19.6% growth in revenue thanks to a recovery
in rental demand, particularly for personal computers, and steady expansion of the engineering-related employee
dispatch business.
As a result of the above activities, interim period revenues for Kanamoto’s other businesses slipped 2.3% fromthe same period of the previous consolidated fiscal year to ¥3,068 million, while operating income expanded
341.4% year-on-year to ¥63 million.

6

[ Business Development Issues Deserving Special Mention and Status of Branch Office Changes ]During the interim period, Kanamoto opened two new branches – the Maebashi Branch in Takai-cho in
Maebashi City in Gunma Prefecture and a Hiroshima South Branch located in Dejima in Hiroshima’s Minami
Ward – and closed its Kamisato Branch in Kamisato-cho, Kodama-gun in Saitama Prefecture.
(2) Qualitative Information Concerning Consolidated Financial Position
Assets, liabilities and net assets
Compared with the end of the prior consolidated fiscal year, total assets at the end of the interim period underreview increased by ¥10,477 million to ¥125,597 million. This change mainly reflected an increase of ¥4,282
million in cash and deposits as a result of the collection of accounts receivable, trade, and an increase in rental
equipment of ¥5,688 million.
Compared with the end of the prior consolidated fiscal year, total liabilities at the end of the interim period
under review increased by ¥8,842 million to ¥86,370 million. The principal items contributing to this change werean increase of ¥2,312 million in notes and accounts payable, trade, an increase of ¥1,354 million in corporate
taxes payable and an increase of ¥3,765 million in long-term accrued expenses.
Net assets at the end of the interim period under review increased by ¥1,634 million compared with the end of
the prior consolidated fiscal year to ¥39,227 million. This mainly reflected net income of ¥1,776 million for theinterim period.
(3) Qualitative Information Concerning Projected Consolidated Operating Results
As reported in the revised operating results forecast released on May 28, 2012, Kanamoto has revised its
projected full-year operating results for the Business Period ending October 2012 to reflect only its interim period
operating performance.
The reasons for this decision are explained below.
When Kanamoto’s current management environment is examined, construction equipment rental demand in
the Tohoku and Kanto areas stricken by last year’s disaster remains extremely vigorous because of earthquake
disaster reconstruction, and rental fees in the same districts are exhibiting some improvement tendency at thepresent time. In addition, demand is also strong because of coastal surge barrier works for nuclear plants andconstruction of evacuation routes. Consequently, commensurate operating results are expected during thesecond half of Kanamoto’s fiscal year.
Nevertheless, because of the fact a demand forecast for regions not devastated by the earthquake cannot beenvisaged easily because of reductions in public works expenditures, and the fact the orientation of future
restoration and recovery efforts is still undecided, and many aspects of the future progress of these works cannot
be understood in detail even though construction efforts in the three earthquake-damaged prefectures still
continue to gradually increase, the Company has maintained its operating results forecast as indicated above.
The projected consolidated operating results described in these 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. Accordingly, there is a possibility
the Company’s actual consolidated operating results will differ from the projected amounts shown above as aresult of various future factors, including but not limited to economic conditions surrounding the Company,
market trends, and competitive conditions.

II. Matters Concerning Summary Information (Other)(1) Changes to Material Subsidiaries during the Consolidated Period under Review
In the first quarter consolidated accounting period, Kanamoto absorbed and merged with SRG Kanamoto Co.,
Ltd., a consolidated subsidiary, with Kanamoto as the surviving company.
(2) Application of Special Accounting Method in the Preparation of the Quarterly Consolidated Financial Statements
Calculation method for fixed asset depreciation and amortization expense
For depreciation and amortization expense for fixed assets for which it has adopted the declining balancemethod, the Company calculates the amount of depreciation and amortization pertaining to the consolidated
fiscal year on a pro-rata basis for each period.

7

(3) Supplemental Information(Retirement allowances to directors and auditors)
Kanamoto and certain of its consolidated subsidiaries resolved at the Board of Directors of each company todiscontinue the system for retirement allowances to directors and auditors, and the termination payment inconjunction with discontinuation of the system for retirement allowances to directors and auditors was resolved
and approved by the Regular General Meeting of the Shareholders of each company.
In accordance with this change, Kanamoto has reversed the full amount of the retirement allowances todirectors and auditors corresponding to the period until the conclusion of the Regular General Meeting of the
Shareholders, and disclosed the unpaid amount of ¥217,138,000 in conjunction with the termination payment by
including the amount in long-term accrued expenses reported under long-term liabilities.

8

(Accrued employees retirement benefits)
Kanamoto and certain of its consolidated subsidiaries discontinued the system for retirement allowances tocorporate officers at the conclusion of the Regular General Meeting of the Shareholders, based on a resolution ofeach company’s Board of Directors.
Furthermore, when the termination payments to directors and auditors were resolved at the same General
Meeting of the Shareholders, the payment of a termination payment to corporate officers was similarly decided.
In accordance with this change, Kanamoto has disclosed accrued employees retirement benefits of¥34,805,000 corresponding to the period until the conclusion of the Regular General Meeting of the
Shareholders by including the amount in long-term accrued expenses reported under long-term liabilities.
(Application of the Accounting Standard for Accounting Changes and Error Corrections etc.)
Beginning from accounting changes and corrections of past errors that were implemented from the beginningof the first quarter consolidated accounting period, the Company will apply the Accounting Standard for
Accounting Changes and Error Corrections (Accounting Standards Board of Japan Statement No. 24 dated
December 4, 2009) and the Guidance on the Accounting Standard for Accounting Changes and Error
Corrections (Accounting Standards Board of Japan Guidance No. 24 dated December 4, 2009).
(Effect of revisions to the corporation tax rate)
The “Act for Partial Revision of the Income Tax Act etc. for the Purpose of Creating Taxation System
Responding to Changes in Economic and Social Structures” (Act No. 114 of 2011) and the “Act on Special
Measures for Securing Financial Resources Necessary to Implement Measures for Reconstruction Following theGreat East Japan Earthquake” (Act No. 117 of 2011) were promulgated on December 2, 2011, and the revisions
to the corporate tax rate and assessment of the Special Reconstruction Corporation Tax will be applied from theconsolidated fiscal year that begins on or after April 1, 2012. In conjunction with this change, the statutory
effective tax rate used to calculate deferred tax assets and deferred tax liabilities will be revised from 40.4%
applied in the past to 37.7% for temporary differences expected to be eliminated from the consolidated fiscal
year that begins on November 1, 2012 until the consolidated fiscal year that begins on November 1, 2014, and to35.3% for temporary differences expected to be eliminated from the consolidated fiscal year that begins on
November 1, 2015.
As a result of this tax rate revision, deferred tax assets (the amount after deducting deferred tax liabilities) has
been decreased by ¥34,335,000, and the adjustment for corporate and other taxes increased by ¥65,632,000.
(Conclusion of a Basic Agreement concerning the acquisition of shares of Unite Co., Ltd.)
Based on a resolution of the Board of Directors meeting held on April 27, 2012, Kanamoto has concluded a
Basic Agreement with JA Mitsui Leasing, Ltd. to acquire 66.9% of the shares of Unite Co., Ltd. owned by JA
Mitsui Leasing and convert Unite into a Kanamoto subsidiary.
As of its fiscal year ended March 31, 2012, Unite Co., Ltd. had total assets of ¥13,377 million.
The two companies expect to sign the Share Transfer Agreement by the end of June 2012, and the sharetransfer is planned for June 28, 2012.

9III. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Unit: Thousands of yen )Prior Fiscal Year
Consolidated Balance Sheet(As of October 31, 2011)

Current Consolidated Fiscal
Year Interim Period(As of April 30, 2012)

20,059,836
16,419,596
350,000
33,299621,325
198,063
1,557,207
10,156
103,824
383,915
606,178-368,095

24,342,564
16,193,347
350,000
21,557734,039
208,322
2,185,776－－
509,785
627,838-367,245

39,975,310

44,805,985

72,929,202-41,233,812

81,906,821-44,522,851

31,695,389

37,383,969

20,871,684-13,481,705

20,888,757-13,597,124

7,389,979

7,291,632

5,131,902

5,139,203-4,491,947-4,530,708

639,955

608,495

29,907,779
1,422,796-1,186,184

29,840,982
1,435,977-1,198,294

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

236,611

237,683

69,869,715

75,362,764

159,081
243,722

69,493
213,473

402,804

282,967

3,202,316
658,472
1,866,172

3,518,422
643,974
1,787,276

Allowance for doubtful accounts
Allowance for investment losses-732,482-122,010-674,640-129,010

Total Investments and Other Assets

4,872,468

5,146,022

Total Tangible Fixed Assets
Intangible fixed assets
Goodwill
OthersTotal Intangible Fixed Assets
Investments and other assets
Investment securities
Deferred tax assets
Other

Total Fixed Assets
Total Assets

10

75,144,988

80,791,754

115,120,298

125,597,740

11

(Unit: Thousands of yen)
Prior Fiscal Year
Consolidated Balance Sheet(As of October 31, 2011)

Current Consolidated Fiscal
Year Interim Period(As of April 30, 2012)

13,318,570
11,155,150
9,853,531
22,0001,087,355
322,353
531,006
289,850
7,574,532
1,188,201

15,630,869
988,219
11,945,521
11,0001,167,540
1,677,096
699,116
181,956
8,081,291
1,529,559

45,342,552

41,912,170

17,063,051
1,430,603
37,45525,272,825
2,013,129
1,664

210,336－

13,251,369
147,078
45,14317,016,491
152,427
1,350

32,185,039

44,457,888

77,527,592

86,370,059

9,696,717
10,960,749
16,297,314-25,240

9,696,717
10,960,761
17,729,311-26,537

36,929,541

38,360,251

198,819

389,082-42,758-41,388

156,060

347,693

Liabilities
Current liabilities
Notes and accounts payable, trade
Short-term bank loans
Long-term bank loans due within one year
Current portion of bonds
Lease obligations
Corporate taxes payable
Accrued bonuses to employees
Allowance for disaster losses
Accounts payable, other
Other
Total Current Liabilities
Long-term liabilities
Long-term bank loans
Lease obligations
Accrued employees retirement benefits
Retirement allowances to directors andauditors
Long-term accrued expenses
Asset retirement obligations
Other
Total Long-term Liabilities
Total Liabilities
Net Assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total Shareholders’ Equity
Accumulated other comprehensive income
Valuation difference on other investment
securities
Translation adjustments accountTotal Accumulated Other Comprehensive
IncomeMinority interests

507,104

519,735

Total Net Assets

37,592,706

39,227,680

115,120,298

125,597,740

Total Liabilities and Net Assets

12(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Interim Period)(Unit: Thousands of yen)
Prior Consolidated Fiscal Year Current Consolidated Fiscal
Interim Period
Year Interim Period(From November 1, 2010
(From November 1, 2011
to April 30, 2011)
to April 30, 2012)
Revenues
Cost of revenues from operations

35,309,433
24,819,767

40,012,788
27,504,985

Gross profit

10,489,665

12,507,803

Selling, general and administrative expenses

8,765,024

8,953,512

Operating income

1,724,640

3,554,290

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

5,628
14,761
9,664
26,825
4,625
34,916
5,771
50,855

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

Total non-operating income

153,047

271,972

Interest expense
Loss on sale of notes receivable
Other

365,124
22,462
81,782414,932
25,34588,705

Total non-operating expenses

469,369

528,983

1,408,318

3,297,279

7,695
－
2,932
－
32,743
2,896

17,654138－
19,615
13,142
68

46,26750,62085,125104,059
4,000

45,153
9－

95,530－724,969114－
90

1,013,799

45,254

Income before taxes and adjustments

440,786

3,302,645

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

451,622-52,700

1,627,241-128,172

Total corporate and other taxes

398,922

1,499,069

Income before minority interest

41,864

1,803,575

Non-operating income

Non-operating expenses

Ordinary profit (loss)
Extraordinary income
Gain on sale or retirement of fixed assets
Gain on sale of investment securities
Reversal of allowance for doubtful accounts
Gain on liquidation of subsidiary
Subsidies
Other
Total extraordinary income
Extraordinary losses
Loss on sale or retirement of fixed assets
Valuation loss on investment securities
Transfer to reserve for investment losses
Extraordinary expenses resulting fromapplication of the Accounting Standard for Asset
Retirement Obligations
Loss from disaster
Other
Total extraordinary losses

13

Minority interests in income or loss (-)-7,447

27,211

Net income

49,312

1,776,36414

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Interim Period Ended April 30, 2012)(Unit: Thousands of yen)
Prior Consolidated Fiscal Year Current Consolidated Fiscal
Interim Period
Year Interim Period(From November 1, 2010
(From November 1, 2011
to April 30, 2011)
to April 30, 2012)
Income before minority interest
Other comprehensive income
Valuation difference on other investment
securities
Translation adjustments accountTotal other comprehensive income
Quarter comprehensive income(Breakdown)Comprehensive quarterly income attributable toowners of the parent
Comprehensive quarterly income attributable tominority interests

15

41,864

1,803,575

267,095

190,262

5,502

13,239272,597

203,502314,462

2,007,078

318,692

1,967,996-4,23039,081

(3) Consolidated Statements of Cash Flows(Unit: Thousands of yen)
Prior Consolidated Fiscal Year Current Consolidated Fiscal
Interim Period
Year Interim Period(From November 1, 2010
(From November 1, 2011
to April 30, 2011)
to April 30, 2012)
Cash flow from operating activities
Income before taxes and adjustments
Depreciation and amortization expense
Amortization of goodwill(Gain) loss on sale or retirement of fixed assets(Gain) loss on liquidation of subsidiary
Installment purchases of assets for small-value
rentals
Reclassification of cost of sales associated withdisposal of construction equipment
Reclassification of cost of sales associated withdisposal of rental assets
Expenditures for acquisition of rental assets(Gain) loss on valuation on investment securities

440,786
4,308,627
93,19077,430－3,302,645
4,949,418
89,63727,499-19,615

28,98014,756

2,049

2,862

368,476

356,309-1,243,130
104,059-781,092
9

－

-138

17,492-68,070

30,369141,033

86,792-34,981-4,174-205,964-20,390-21,01487,522

103,721365,124

414,932

816,506

503,955-81,312
1,102,028-177,357
2,038,014

95,530－724,969-141,535-184,142－-65,782-207,069

Subtotal

7,075,253

10,363,707

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

20,410-388,102-18,648-1,065,777

21,034-486,625-70,604-264,829

Cash flow from operating activities

5,623,135

9,562,683(Gain) loss on sale of investment securities
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in accrued bonuses to
employees
Increase (decrease) in accrued employees
retirement benefits
Increase (decrease) in retirement allowances todirectors and auditors
Interest revenue and dividend income
Interest expense on installment purchases ofrental assets
Interest expense(Increase) decrease in notes and accounts
receivable(Increase) decrease in inventory assets
Increase (decrease) in accounts payable, trade
Extraordinary expenses resulting fromapplication of the Accounting Standard for Asset
Retirement Obligations
Loss resulting from natural disaster
Increase (decrease) in accounts payable, other
Other

16

(Unit: Thousands of yen)
Prior Consolidated Fiscal Year Current Consolidated Fiscal
Interim Period
Year Interim Period(From November 1, 2010
(From November 1, 2011
to April 30, 2011)
to April 30, 2012)
Cash flow from investing activities
Funds used for the purchase of tangible fixed
assetsFunds provided from the sale of tangible fixed
assetsFunds used for the purchase of intangible fixed
assetsFunds used for the purchase of investment
securities
Funds provided from sale of investment
securities
Funds used for the acquisition of subsidiarystock
Funds provided from sale of subsidiary stock
Funds used for establishment of subsidiary
Funds provided from liquidation of subsidiary
Payments of loans receivable
Funds provided from collection of short-termloans receivable
Other
Cash flow from investing activities-169,920-322,113

10,158103,598-4,281-6,000-437,253-40,171－

1,599-41,310-28,701－-22,718－-97,140

5,000
－
7,247
－

31,053

44,63930,0868,881-701,326-226,018

4,654,045
1,130,000-5,374,717-11,000-2,207,063
7,584,125-5,483,478-11,000-2,603,790-3,956,471-580,683-519－-327,835-621,677-1,583297-330,699

68,265－

Cash flow from financing activities
Increase (decrease) in short-term bank loans
Funds provided by long-term bank loans
Funds used to repay long-term bank loans
Funds used to redeem corporate bonds
Funds used for repayment of installment
obligations
Funds used for repayment of lease obligations
Funds used for the purchase of treasury stock
Funds provided from the sale of treasury stock
Payment of dividends
Funds provided by payment from minority
shareholders
Other
Cash flow from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and equivalents
Balance of cash and equivalents at beginning of
periodIncrease (decrease) in cash and equivalents inconjunction with change in accounting period of
consolidated subsidiary
Balance of cash and equivalents at end of period

17

10,304－-3,035,931-5,027,551

1,156

5,823

1,887,035

4,314,936

20,751,217

20,374,836－-32,208

22,638,252

24,657,564

(4) Notes Relating to the Going Concern Assumption
The Company had no material items to report.
(5) Business Segment Information(1) Interim period of the prior consolidated fiscal year (From November 1, 2010 to April 30, 2011)
1. Information concerning revenues and profit or loss of each reporting segment(Unit: Thousands of yen)
Reporting segment
Business related to theConstruction Equipment
Rental Division

Other businesses(Note)

Total

Revenues
Revenues from customers
Sales or transfers between
segments

32,169,016

3,140,416

35,309,433

－

－

－

Total

32,169,016

3,140,416

35,309,433

Segment operating income

1,617,853

14,412

1,632,265(Note)The “Other businesses” classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division and business related to the
Information Products Division and other businesses.

2. Difference between total reporting segment profit or loss and the amount reported on the Quarterly
Consolidated Statements of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Unit: Thousands of yen)
Earnings

AmountReporting segment total

1,617,853

Earnings from “Other” classifications

14,412Other adjustments

92,374

Operating income reported on the Consolidated
Quarterly Statements of Income

1,724,640(2) Interim period of the current consolidated fiscal year (From November 1, 2011 to April 30, 2012)
1. Information concerning revenues and profit or loss of each reporting segment(Unit: Thousands of yen)
Reporting segment
Business related to theConstruction Equipment
Rental Division

Other businesses(Note)

Total

Revenues
Revenues from customers
Sales or transfers between
segments

36,944,706

3,068,081

40,012,788

－

－

－

Total

36,944,706

3,068,081

40,012,788

Segment operating income

3,411,319

63,6103,474,929(Note)The “Other businesses” classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division and business related to the
Information Products Division and other businesses.

18

2. Difference between total reporting segment profit or loss and the amount reported on the Quarterly
Consolidated Statements of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Unit: Thousands of yen)
Earnings

AmountReporting segment total

3,411,319

Earnings from “Other” classifications

63,610

Other adjustments

79,360Operating income reported on the Consolidated
Quarterly Statements of Income(6) Notes on Significant Changes to Shareholders’ Equity
The Company had no material items to report.

19

3,554,290