Notification Concerning Revision of Projected Full-Year Operating
Results for the Business Period Ending October 20102010/05/28 in Japan | Page 1/3

Friday, May 28, 2010

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

Notification Concerning Revision of Projected Operating
Results for the Business Period Ending October 2010
Kanamoto Company, Limited (Kanchu Kanamoto, President; Head Office: Sapporo, Japan), Japan’s leading construction
equipment rental company, has revised its projected consolidated and non-consolidated operating results for the interim periodended April 30 (November 1, 2009 - April 30, 2010) and for the fiscal year ending October 31, 2010 (November 1, 2009 - October31, 2010) released on December 4, 2009. Details are provided below.

1. Revised projection of consolidated operating results
Interim period consolidated operating results for the business period ending October 31, 2010
(November 1, 2009 - April 30, 2010)(Millions of yen except net income
per share, which is in yen)

Revenues

OperatingIncome

OrdinaryIncome

Net Income

Net income
per share

Prior projection(A)

35,200

1,730

1,510

700

21.32

Revised projection(B)

37,100

3,190

2,980

1,510

45.98

Increase (decrease)

(B-A)

1,900

1,460

1,410

810

－(%)

5.3%

84.3%

93.3%

115.7%－

32,590

921

793

－141

－4.38

Percent change(Reference) Prior fiscal year
(Interim period ended April 30, 2009)

Fiscal year consolidated operating results(November 1, 2009 - October 31, 2010)(Millions of yen except net incomeper share, which is in yen)

Revenues

Operating
IncomeOrdinary
IncomeNet Income

Net income
per share

Prior projection（A）

67,1001,150710

110

3.35

Revised projection（B）

67,300

1,340

730

330

10.04

Increase (decrease)

（B－A）

200

190

20220

－（%）

0.2%

16.5%

2.8%

200.0%－(Reference) Prior fiscal year
(Business period ended October 31, 2009)

63,863137－222－1,158－35.28Percent change

Notification Concerning Revision of Projected Full-Year Operating
Results for the Business Period Ending October 20102010/05/28 in Japan | Page 2/3

2. Revised projection of non-consolidated operating results
Interim period non-consolidated operating results for the business period ending October 31, 2010
(November 1, 2009 - April 30, 2010)(Millions of yen except net income
per share, which is in yen)

Revenues

Operating
IncomeOrdinary
IncomeNet Income

Net income
per share

Prior projection（A）

28,500

1,500

1,340

710

21.62

Revised projection（B）

30,130

2,530

2,530

1,180

35.93

Increase (decrease)

（B－A）

1,630

1,030

1,130470－（%）

5.7%

68.6%

84.3%

66.1%

－

27,371

637

540－314－9.58

Percent change(Reference) Prior fiscal year
(Interim period ended April 30, 2009)

Fiscal year non-consolidated operating results(November 1, 2009 - October 31, 2010)(Millions of yen except net income
per share, which is in yen)

Revenues

Operating
IncomeOrdinary
IncomeNet Income

Net income
per share

Prior projection（A）

55,100

880

550

260

7.92

Revised projection（B）

56,080

1,020

780

270

8.22

Increase (decrease)

（B－A）

980

140

230

10－（%）

1.7%

15.9%

41.8%

3.8%

－(Reference) Prior fiscal year
(Business period ended October 31, 2009)

54,447417

172－1,060－32.24Percent change

3. Reasons for the revision(Fiscal year ending October 2010 Interim operating results projection)
Through the second quarter, the domestic construction-related businesses of the Kanamoto Group were confronted with asevere operating climate, as public sector demand decreased significantly and private sector demand showed no signs ofrecovery. By reviewing the asset portfolio for its main business of construction equipment rentals and working
aggressively to boost sales in each region, the Kanamoto Group successfully offset a decline in revenues in the KantoRegion and the Kinki & Chubu Region, where private sector demand slumped, by substantially increasing revenues in theHokkaido Region, which benefitted from the effect of economic stimulus measures, and similarly restoring revenues in theTohoku Region to the prior year level.
At the same time, the Company was able to proceed with sales of used equipment in line with its plan, as conditions inoverseas markets for used construction equipment remained steady throughout the period. Because of thesecircumstances, revenues exceeded the Company’s initial plan, and we have revised our projected operating results toreflect this fact.
With regard to earnings, profit margins improved because of several factors, including the increase in revenues describedabove, lower costs as a result of efficient procurement of construction equipment for rentals and the recovery of overseas
markets for used construction equipment to the levels seen prior to the global recession, and each earnings measuresignificantly exceeded the Company’s plan as a result.

Notification Concerning Revision of Projected Full-Year Operating
Results for the Business Period Ending October 20102010/05/28 in Japan | Page 3/3(Fiscal year ending October 2010 Full-year operating results projection)
Because the third quarter of the Kanamoto Group’s fiscal year (May-July) overlaps the start of the new fiscal year for thecentral government and national budget, construction demand is slack, and traditionally Kanamoto’s operating results inthe second half of the Company’s fiscal year (May-October) tend not to exhibit large increases compared with the first half.
In the current fiscal year in particular, construction demand in most regions is expected to contract substantially, asconstruction works related to economic stimulus measures during the first half near an end and the country prepares forthe approaching summer elections for the Upper House. Conditions that will make it difficult to maintain earnings,
including weak private sector demand, intensifying competition resulting from falling construction equipment rental
demand in regions where public works have been sharply curtailed and concomitant unit price reductions, are expected tocontinue. Moreover, there are still no signs of activity that would indicate a recovery of private sector demand in urban
areas including Japan’s major metropolitan areas, and the trend in the latter half of the business period must be
acknowledged to be extremely uncertain. In light of this severe operating climate, the full-year projection does not
anticipate the large net increases seen until the second quarter.

4. Other matters
The Company plans to announce its interim period operating results for the business period ending October 30, 2010 at
3:30PM on Friday, June 4, 2010.
Although the unsettled management environment still continues, based on the results of its operations through the secondquarter, and with the intent of maintaining a stable dividend, the Company plans to seek approval at the Board of Directors
meeting scheduled to be held on June 4, 2010 to pay an interim dividend of ¥10 per share in line with its initial plan.
EndThe operating results described in this material were calculated and prepared based on information available toKanamoto at the time this material was released. Actual operating results might vary considerably from the projectedvalues as a result of various future factors.