Nine-month Consolidated Financial Report for the Fiscal Yearending October 31, 2012 (Japan GAAP)
September 7, 2012
Listed Company Name
Kanamoto Co., 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 and 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
September 13, 2012
Scheduled date for commencement of dividend payments－
Preparation of Quarterly Settlement Supplementary
Explanatory Materials:
No
Quarterly Earnings Briefings:

No

1. Consolidated Operating Results for the Nine-Month Period of the Fiscal Year Ending October 31, 2012
(November 1, 2011 - July 31, 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 prior consolidated fiscal year)

Revenues
Millions of yen%

Operating Income

Ordinary Income

Millions of yen

Millions of yen%

Millions of yen

%

3,850

152.4

2,725

–

1,525

–37.9

%

Fiscal Year ending October 31, 2012:
58,71713.4
4,244 113.8
Third Quarter
Fiscal Year ended October 31, 2011:
51,779–2.7
1,985 –31.2
Third Quarter
Note: Comprehensive income
Fiscal Year ending October 31, 2012 Third Quarter: ¥2,763 million (887.1%)
Fiscal Year ended October 31, 2011 Third Quarter: ¥279 million (– %)Diluted Net
Income per
Share

Net Income
per Share
Fiscal Year ending October 31, 2012:
Third Quarter
Fiscal Year ended October 31, 2011:
Third Quarter

Yen

Yen

83.02

－

2.11

－

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen

Fiscal Year ending October 31, 2012:
131,667
40,395
Third Quarter
Fiscal Year ended October 31, 2011
115,120
37,592(Reference) Shareholders’ equity
Fiscal Year ending October 31, 2012, Third Quarter¥39,192 million
Fiscal Year ended October 31, 2011
¥37,085 million－

1 －Shareholders’equity ratio
%

29.8
32.2

Net Income

69 – 93.7

2. Dividends
Annual Dividends per Share
End of 1Q

End of 2Q

End of 3Q

Year-end

Full year

Yen

Yen

Yen

Yen

Yen

Fiscal year ended October 31, 2011

－

10.00

－

10.00

20.00

Fiscal year ending October 31, 2012
Fiscal year ending October 31, 2012
(Projected)

－

10.00

－
10.00

20.00

(Note) Has the Company revised its most recently released dividend projection?

No

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

Revenues

Full year

Operating Income

Ordinary Income

Net Income
per Share

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

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?

－

2 －

No

Notes to the Consolidated Operating Results(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): Yes
Company newly included (Company name:
Unite Co., Ltd.)
Company newly excluded (Company name:)(2) Application of special accounting method in the preparation of quarterly consolidated financial statements: No(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements(a) Changes in accounting principles in conjunction with revision of accounting standards: No(b) Changes other than the above: No(c) Changes in accounting estimates: No(d) Retrospective restatements: No(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 Third 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 Third Quarter:
38,935 sharesFiscal year ended October 31, 2011:
37,712 shares(c) Number of shares during the period (consolidated year-to-date)Fiscal year ending October 31, 2012 Third Quarter:
32,834,140 sharesFiscal year ended October 31, 2011:
32,834,544 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 thequarterly 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 “I. Qualitative Information Concerning Quarterly Consolidated Operating Results (3)Qualitative Information Concerning Projected Consolidated Operating Results” on Page 7 of the Attachments for theconditions used as assumptions for the projected operating results and matters 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 (Notes) ……………………………………………………………………

8(1) Changes to Material Subsidiaries during the Consolidated Period under Review ……………………………..

8(2) Supplemental Information …………………………………………………………………………………………….

8

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

9(1) Quarterly Consolidated Balance Sheets ……………………………………………………………………………
(2) Quarterly Consolidated Statements of Income andQuarterly Consolidated Statements of Comprehensive Income ……………………………………………
Quarterly Consolidated Statements of Income

9
11

Third Quarter Consolidated Year-to-Date ……………………………………………………………………

11

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

13(3) Notes Relating to the Going Concern Assumption …………………………………………………………………

14(4) Business Segment Information ………………………………………………………………………………………

14(5) Notes on Significant Changes to Shareholders’ Equity ……………………………………………………………

16(6) Material Subsequent Events …………………………………………………………………………………………

16

－

4 －

I. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results< Management Environment > (From November 1, 2011 to July 31, 2012)
A mild recovery trend was evident in some segments of Japan’s economy during the Kanamoto Group’s
consolidated third quarter, driven to a large extent by restoration and reconstruction demand in the wake of theGreat East Japan Earthquake. Nevertheless, an atmosphere of uncertainty lingered, with the outlook clouded bya rising unemployment rate, ongoing deflation, energy problems and numerous other factors. The international
economy as well faced a host of issues that it struggled to overcome, including a rekindling of Europe’s debt
crisis, slowing economic growth in China and other newly developing countries, and soaring grain market pricesthat were driven upward by drought in the United States.
In the construction industry where the Kanamoto Group is mainly developing its business, capital investment
spending in both the public and private sectors exceeded the previous year’s volume, supported by restoration
and recovery work following the Great East Japan Earthquake and the execution of a supplementary budget fornationwide disaster prevention measures. At the same time, the business environment raised a number ofconcerns regarding the future progress of these activities, including a shortage of construction workers in thedevastated regions, a sharp rise in labor costs, and cutbacks in public works expenditures in non-stricken areas.
< Third Quarter Consolidated Year-to-Date Operating Results > (From November 1, 2011 to July 31, 2012)
The Kanamoto Group’s operating results in general remained steady, in contrast to the Company’s initial
forecast. Nationwide, construction equipment demand was brisk. In addition to debris removal works in the threeprefectures damaged by the Great East Japan Earthquake, positive factors included the partial start ofrestoration works such as sewerage systems, roads and ports, recovery works, disaster mitigation and disasterprevention measures works in various areas that suffered damage from heavy rainstorms, and earthquake
resistant countermeasure works, particularly for the Tokyo Metropolitan Expressway.
To support the Great East Japan Earthquake restoration and reconstruction effort, every company in the
Kanamoto Group formed a response team to send to the disaster area, which greatly expanded our flexible
response capabilities. The Group also strove to secure earnings from every perspective, including measures toachieve more efficient operation based on optimum rental asset placement and further enhancing our lineup of
information-aided construction and energy-saving new commercial products.
As a result of these factors, consolidated revenues for the first nine months of the Business Period ending in
October 2012 were ¥58,717 million, up 13.4% compared with the same period of the previous consolidated fiscal
year. Earnings were also higher, as consolidated operating income rose 113.8% from the same period one year
earlier to ¥4,244 million, and consolidated ordinary income jumped 152.4% year-on-year to ¥3,850 million. Third
quarter year-to-date consolidated net income improved significantly to ¥2,725 million, up from ¥69 million for thesame period one year ago.
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 revenue by region, the Hokkaido Region faced difficult circumstances
as the effects of a reduction in the public sector demand that accompanied the restoration budget began toappear. Thanks to strenuous efforts to develop the Group’s business and projects such as work related toextension of the Shinkansen line, however, revenues edged up 1.5% compared with the same period of theprevious consolidated fiscal year. In the Tohoku Region, revenues were up broadly, rising 40.5% year-on-year
because of relatively strong rental demand in Niigata and Aomori, and works related to earthquake disasterrecovery-related construction in the three damaged prefectures. Revenues in the Kanto Region were up 8.6%
from the same period one year earlier. In addition to large-scale projects, this growth was supported by steadyground improvement works and foundation construction, public works such as disaster prevention and disastermitigation works, and the recovery of private sector construction investment in the Tokyo metropolitan area. In
the Kinki & Chubu Region, which also benefited from disaster prevention and disaster mitigation works inmetropolitan areas, as well as growth in demand for electric generators because of scheduled electricity
blackouts, revenues increased 9.6% over the same period in the previous fiscal year. The Kyushu & Okinawa－

5 －Region was nearly unchanged, with revenues up just 0.1% from the corresponding period of the previous fiscal
year.
Although construction equipment rentals overseas account for only a very small portion of Kanamoto’s
operating results, revenues from this activity grew 78.0% from the corresponding period of the prior year as theCompany worked to attract demand in Southeast Asia. Conditions at each overseas subsidiary varied
considerably. Revenues at Shanghai Jinheyuan Engineering Construction Co., Ltd. were off 11.6% year-on-year,
as the economic slowdown in China was gradually revealed and construction demand slumped in various
regions. SJ Rental, Inc. was basically flat, as the demand trend in Guam was unchanged. On the other hand,
KANAMOTO (HK) CO., LTD., an unconsolidated subsidiary, maintained its strong growth by posting a 467.2%
increase in revenue over the previous year thanks to a vigorous, large-scale intra-regional project.
Overseas sales of used construction equipment contracted 29.6% compared with the first nine months of theprevious fiscal year, as the Company continued to postpone sales as part of its response to Great East Japan
Earthquake restoration demand.
As a result of these factors, revenues for Kanamoto’s construction-related businesses for the first nine monthsof the fiscal year increased 14.6% from the same period of the previous consolidated fiscal year to ¥54,015
million, and operating income climbed 139.0% year-on-year to ¥4,014 million.
[ Other Businesses ]In the steel products sales business the Company is developing in Hokkaido, revenue was off 5.4% from thesame period of the previous fiscal year as the demand for steel materials in Sapporo slipped during theconstruction industry’s off-peak season. The Company’s information and telecommunications-related business,on the other hand, achieved 19.6% growth in revenue thanks to a recovery in personal computer rental demandand steady expansion of the employee dispatch business.
As a result of these factors, for the third quarter year-to-date consolidated period under review, revenues fromother businesses rose by 1.3% from the same period of the previous consolidated fiscal year to ¥4,702 million,
while operating income fell 10.9% year-on-year to ¥102 million.

－

6 －[ Business development issues deserving special mention and status of branch office changes ]The Company did not open or close any branches during its third quarter consolidated business period.
Beginning from the third quarter of the current consolidated fiscal year, Kanamoto will include Unite Co., Ltd. inthe scope of consolidation as announced on June 28, 2012.
(2) Qualitative Information Concerning Consolidated Financial Position
Assets, liabilities and net assets
Total assets at the end of the third quarter under review increased by ¥16,547 million compared with the endof the previous consolidated fiscal year to ¥131,667 million. This mainly reflected an increase of ¥12,885 million
in assets, including an increase of ¥5,478 million in rental equipment, because the Company acquired the sharesof Unite Co., Ltd. and newly included that company within the scope of consolidation during the third quarter
consolidated period under review.
Total liabilities increased by ¥13,744 million compared with the end of the previous consolidated fiscal year to¥91,271 million. This was mainly an increase of ¥10,467 million as a result of the newly consolidated entity,
identical to the factor that resulted in the increase in total assets, including an increase of ¥1,777 million in leaseobligations in conjunction with leasing agreements and an increase of ¥3,532 million in long-term accrued
expenses in conjunction with installment payment agreements, which are used as a means to procure rental
equipment.
Total Net Assets were ¥40,395 million, ¥2,803 million higher than at the end of the prior consolidated fiscal
year. This mainly reflected third quarter net income of ¥2,725 million.
(3) Qualitative Information Concerning Projected Consolidated Operating Results
There are no revisions to the full-year projected operating results for the Business Period ending on October
31, 2012 that the Company announced in its Six-month Consolidated Financial Report for the Fiscal Year Ending
October 31, 2012 [Japan GAAP] dated June 8, 2012.
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. In addition, demand is also strong because of coastal surge barrier works for nuclear
plants and construction of evacuation routes. Consequently, commensurate operating results are expectedduring the second half of Kanamoto’s current 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 that even in the threeearthquake-damaged prefectures the orientation of future restoration and recovery efforts is still undecided andmany aspects of the future progress of these works cannot be understood in detail, the Company has maintained
its operating results forecast as indicated above.

－

7 －II. Matters Concerning Summary Information (Notes)(1) Changes to Material Subsidiaries during the Consolidated Period under Review
During the first quarter, Kanamoto absorbed and merged with SRG Kanamoto Co., Ltd., a consolidated
subsidiary, with Kanamoto as the surviving company.
In the third quarter consolidated period under review, Kanamoto acquired the shares of Unite Co., Ltd., andincluded that entity within the scope of consolidation.
(2) 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.
(Accrued employees’ retirement benefits)
Kanamoto and certain of its consolidated subsidiaries have discontinued the system for retirement
allowances to Corporate Officers at the conclusion of the Regular General Meeting of the Shareholders, basedon a resolution of each 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)
Beginning from accounting changes and corrections of past errors that were implemented from the
beginning of 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
the Great East Japan Earthquake” (Act No. 117 of 2011) were promulgated on December 2, 2011, and therevisions to the corporate tax rate and assessment of the Special Reconstruction Corporation Tax will beapplied from the consolidated 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 theconsolidated fiscal year that begins on November 1, 2012 until the consolidated fiscal year that begins on
November 1, 2014, and to 35.3% 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 ¥55,889,000, and the adjustment for corporate and other taxes increased by¥77,237,000.

－

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

Current Consolidated
Fiscal Year Third Quarter(As of July 31, 2012)

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

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

19,622,926
21,399,330
350,000
47,251
570,264
237,758
2,135,598
14,74019,446514,343644,896- 389,829

39,975,310

45,166,727

72,929,202- 41,233,812

105,534,128- 63,128,909

31,695,389

42,405,219

20,871,684- 13,481,705

22,195,690- 14,400,892

Net buildings and structures

7,389,979

7,794,797

Machinery, equipment, vehicles anddelivery equipment

5,131,902

5,361,848- 4,491,947- 4,742,975

639,955

618,873

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

29,658,925
1,576,639- 1,283,868

236,611292,770

69,869,715

80,770,586

159,081
243,722

36,677220,194

Total Intangible Fixed Assets

402,804

256,871

Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Reserve for investment losses

3,202,316
658,472
1,866,172- 732,482- 122,010

3,327,033
911,836
2,053,113- 689,555- 129,010

Total Current Assets
Fixed assets
Tangible fixed assets
Rental equipment assets
Accumulated depreciation
Net rental equipment assets
Buildings and structures
Accumulated depreciation

Accumulated depreciation
Net machinery, equipment, vehicles
and delivery equipment
Land
Other
Accumulated depreciation
Net other
Total Tangible Fixed Assets
Intangible fixed assets
Goodwill
Other

Total Investments and Other Assets
Total Fixed Assets
Total Assets－

9 －4,872,468

5,473,418

75,144,988

86,500,876

115,120,298

131,667,604

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

Current Consolidated
Fiscal Year Third Quarter(As of July 31, 2012)

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

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

16,681,139
902,781
12,579,448－
1,079,057
1,465,329
552,536
128,4218,040,815
1,624,410

45,342,552

43,053,941

17,063,051
1,430,603
37,45527,758,773
3,207,796
884

210,336－

13,251,369
147,078
45,143

16,784,172
209,232
256,991

32,185,039

48,217,851

77,527,592

91,271,792

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

9,696,717
10,960,761
18,350,482- 26,537

36,929,541

38,981,422

198,819

251,573- 42,758- 40,060

156,060

211,513

Accumulated other comprehensive income
Valuation difference on other investment
securities
Translation adjustments accountTotal Accumulated Other Comprehensive
IncomeMinority interests

507,104

1,202,875

Total Net Assets

37,592,706

40,395,811

115,120,298

131,667,604

Total Liabilities and Net Assets

－

10 －

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated nine-month period ended July 31, 2012)(Unit: Thousands of yen)
Prior Consolidated Fiscal
Year Third Quarter(From November 1, 2010
to July 31, 2011)

Current Consolidated Fiscal
Year Third Quarter(From November 1, 2011
to July 31, 2012)

Revenues
Cost of revenues from operations

51,779,568
36,697,694

58,717,469
41,036,747

Gross profit

15,081,873

17,680,722

Selling, general and administrative expenses

13,096,837

13,436,453

Operating income

1,985,036

4,244,269

Interest income
Dividend income
Insurance benefits
Rents received
Cash bonus received
Amortization of negative goodwill
Reversal of allowance for doubtful accounts
Other

7,853
50,54730,84839,507
4,794
52,374－77,364

6,266
85,232
25,617
40,63322,51952,374
5,520
151,232

Total non-operating income

263,289

389,396

Interest expense
Loss on sale of notes receivable
Other

567,700
31,483
123,849

633,819
35,385
113,957

Total non-operating expenses

723,034

783,163

1,525,291

3,850,503

11,54752
5,625
32,848－－
6,645

20,233
1,092－
115,666
19,615
671,889
252

56,719828,751

85,125－104,059
4,000

56,620183,896
1,849－

95,530－Retirement Obligations
Loss from disaster
Other

677,957
114－
184

Total extraordinary losses

966,787

242,549

Income before taxes and adjustments

615,223

4,436,705

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

536,540
22,087

1,876,536- 140,957

Total corporate and other taxes

558,628

1,735,579

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income
Gain on sale or retirement of fixed assets
Gain on sale of investment securities
Reversal of allowance for doubtful accounts
Subsidies
Gain on liquidation of subsidiary
Gain on negative goodwill
Other
Total extraordinary income
Extraordinary losses
Loss on sale or retirement of fixed assets
Impairment loss
Valuation loss on investment securities
Transfer to reserve for investment losses
Extraordinary expenses resulting fromapplication of the Accounting Standard for Asset

－

11 －

Income before minority interest

56,595

Minority interest in income or loss (-)- 12,608- 24,742

Net income

69,203

2,725,867－

12 －

2,701,125

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated nine-month period ended July 31, 2012)(Unit: Thousands of yen)
Prior Consolidated Fiscal
Year Third Quarter(From November 1, 2010
to July 31, 2011)
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

－

13 －

Current Consolidated Fiscal
Year Third Quarter(From November 1, 2011
to July 31, 2012)

56,5952,701,125

223,925

52,753

- 603

9,175

223,32161,929279,916

2,763,054

292,6022,781,320- 12,686- 18,265(3) Notes Relating to the Going Concern Assumption
The Company had no material items to report.
(4) Business Segment Information
I Third quarter of the previous consolidated fiscal year (from November 1, 2010 to July 31, 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
Revenues
Revenues from customers
Sales or transfers between
segments
Total

Other businesses(See Note)

Total

47,139,363

4,640,204

51,779,568

－

－

－

47,139,363

4,640,204

51,779,568

1,679,333

115,345

1,794,679

Segment operating income(Note) The “Other businesses” classification encompasses business segments not included in thereporting 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 Consolidated
Quarterly Statements of Income, and the main reasons for the difference(Matters Pertaining to Reconciliation of Difference)(Unit: Thousands of yen)
Earnings

AmountReporting segment total
Earnings from “Other businesses” classification
Other adjustments

1,679,333
115,345
190,356

Operating income reported on the Quarterly
Consolidated Statements of Income

1,985,036

II Third quarter of the current consolidated fiscal year (from November 1, 2011 to July 31, 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
Revenues
Revenues from customers
Sales or transfers between
segments
Total
Segment operating income

Other businesses(See Note)

Total

54,015,273

4,702,196

58,717,469

－

－

－

54,015,273

4,702,196

58,717,469

4,014,083

102,817

4,116,900(Note) The “Other businesses” classification encompasses business segments not included in thereporting segment, and includes business related to the Steel Sales Division and business related
to the Information Products Division and other businesses.

－

14 －

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

AmountReporting segment total
Earnings from “Other businesses” classification
Other adjustments

4,014,083
102,817
127,369

Operating income reported on the Quarterly
Consolidated Statements of Income

4,244,269－

15 －3. Information concerning fixed asset impairment loss and goodwill by reporting segment(Material impairment losses pertaining to fixed assets)
The Company has reported an impairment loss on business assets used in the “Business related to theConstruction Equipment Rental Division” segment because the value the Company expects to recoverhas fallen below the book value. The amount of the impairment loss reported for the consolidated third
quarter year-to-date period is ¥183,896,000.
(Material gain on negative goodwill)
The Company has reported a gain on negative goodwill of ¥671,889,000 in extraordinary income in the“Business related to the Construction Equipment Rental Division” segment because Unite Co., Ltd., anewly acquired subsidiary, will be included within the scope of consolidation beginning from the third
quarter of the consolidated fiscal year under review.
(5) Note on Significant Changes to Shareholders’ Equity
The Company had no material items to report.
(6) Material Subsequent Events(Dissolution and settlement of consolidated subsidiary)
At its Board of Directors meeting held on September 7, 2012, Kanamoto resolved to dissolve and liquidate
SJ Rental, Inc., a consolidated subsidiary.
1. Reason for dissolution and settlement
SJ Rental, Inc. was managing a construction equipment rental business related to construction works in
Territory of Guam, United States. Because the rental demand initially anticipated when the subsidiary wasestablished can no longer be expected in the foreseeable future because the infrastructure construction
works related to the reassignment of US forces in Japan have been postponed, Kanamoto resolved todissolve and liquidate this subsidiary.
2. Summary of the dissolved and settled subsidiary
Company name
SJ Rental, Inc.
Head office
Territory of Guam, United States
President
Naoki Mukunashi
CapitalUS$2,706,000
Voting rights
100%
3. Dissolution and settlement date
September 2013
Liquidation (scheduled)
4. Effect of the dissolution and settlement on earnings
The Company is currently calculating the effect of the dissolution and settlement on earnings.
5. Material effects of dissolution and settlement on business operations etc.
The effect of this change on the Company’s business operations is not material.

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16 －