Fiscal Year ending October 31, 2004

Summary of First Quarter Operating Results (Consolidated)
March 5, 2004
Listed Company Name

Kanamoto Company, Ltd.

Company Code Number9678

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.

1. Matters Related to Preparation of the Summary of Quarterly Operating Results① Are there any differences with the methods of recognition used in theaccounting treatment for the most recent consolidated fiscal year? No② Are than any changes in the scope of consolidation and/or application ofthe equity method? No
2. Operating Results for the First Quarter of the Fiscal Year Ending October 31, 2004
(November 1, 2003 - January 31, 2004)(1) Revenues (consolidated)(Numbers less than one million yen have been rounded down)
Millions of yen%First quarter, fiscal year ending October 31, 2004

16,270( ?

)First quarter, fiscal year ended October 31, 2003?

( ?

)(Reference) Fiscal year ended October 31, 2003

63,686(Note) The Company did not disclose quarterly operating results in the fiscal year ended October 31, 2003.
The percent change from the same period of the prior fiscal year has therefore been omitted.
Supplemental explanation concerning revenues
During the first quarter Japan’s economy exhibited signs of a recovery. Manufacturing output was boosted byoverseas demand in industries such as steel and shipbuilding that responded to China’s growing economy.
Positive signs were also evident in private sector capital investment in certain sectors. Nevertheless, given
negative factors such as a reduction in public works and competition among firms, the environment in theconstruction industry sector where Kanamoto conducts its principal business remained severe.
To respond to this environment, the Company pursued specific sales and marketing efforts throughout theentire Kanamoto group. In the construction equipment rental business, this included strengthening
development of new markets, such as rentals aimed at construction and maintenance works, while
continuing to increase the percentage of more profitable equipment models, based on Kanamoto’s newlong-range management plan “Metamorphose.”As a result, revenues were strong in the Tokyo metropolitanarea, where construction equipment rental demand is vigorous and demand was boosted as the Company
opened new sales branches. Even in regions where tough economic conditions are continuing, revenue
growth overall was positive in most regions. This was a result of concentrating efforts on integrated rental
equipment marketing by the entire group, including products such as temporary unit housing materialsand
safety products, and demand based on natural disaster recovery works in some areas.
The Company also moved to quickly close unprofitable sales branches as part of the “scrap and build”
strategy planned at the start of the period. Altogether the Company closed three branches, including two in
the Hokkaido region and one in the Tohoku region.
Based on the above actions, consolidated revenues for the first quarter exceeded the Company’s initial plan
objective and reached ¥16.27 billion.

(2) Events with a material affect on the corporate group’s financial position and operating
results during the quarter under review
There were no pertinent matters.

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 2004
(November 1, 2003 - October 31, 2004)
Projected net
Projected
Projected ordinary
Projected net
income perrevenues
incomeincomeshare
Millions of yen
Millions of yen
Millions of yen
Yen
Interim29,970
920
420
14.06
Full-year
59,590
1,450
580
19.42
(Qualitative information concerning projected operating results)
Because operating results for the quarter under review were generally close to the Company’s plan, theprojected operating results described above do not include any corrections to figures the Company
previously released. Management prepared this projection based on information available to the Company
as of the date this summary was released and forecasts about the future economic environment. Theprojection therefore includes risks and uncertainty factors.
Accordingly, there is no guarantee the Company will achieve the projection, and there is a possibility theCompany’s actual results might differ from the projected operating results depending upon the economicconditions surrounding the Company and its businesses, market trends, competitive conditions, and various
factors in the future.