Fiscal Year ending October 31, 2005

Summary of First Quarter Operating Results(Consolidated)

March 4, 2005

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. Matters Related to Preparation of the Summary of First Quarter Operating Results① Has the Company adopted simplified methods for accounting treatment?

Yes

The Company uses book value for inventory.
The Company charges an amount to its allowance for doubtful accounts
based on actual loss experience in the prior consolidated accounting fiscal
year for normal accounts.
② Are there any differences with the methods of recognition used in theaccounting treatment for the most recent consolidated fiscal year? No③ Are than any changes in the scope of consolidation and/or application of theequity method? No
2. Operating Results for the First Quarter of the Fiscal Year Ending October 31, 2005
(November 1, 2004 - January 31, 2005)(1) Consolidated Operating Results(Numbers less than one million yen have been rounded down)

Revenues
Millions of yen

Operating Income( ％)Millions of yen

Ordinary Income( ％)Millions of yen( ％)Fiscal Year Ending October 31,
2005: First Quarter

17,612( 8.3 )

748(−8.0 )

719(−9.0 )

Fiscal Year Ended October 31,
2004: First Quarter

16,270

(

813

( −

790

( −

(Reference) Fiscal Year Ended
October 31, 2004

61,336

1,878

1,749

Net Income

Net Income per Share ofCommon StockNet Income per Share ona Fully Diluted Basis

Yen

Yen

Millions of yen

−

)

( ％)

)

Fiscal Year Ending October 31,
2005: First Quarter

398(−0.4 )

13.33−

Fiscal Year Ended October 31,
2004: First Quarter

399

( −

13.38

−

(Reference) Fiscal Year Ended
October 31, 2004

1,097

36. 50−))(Note) The percentages shown for revenues, operating income, ordinary income and net income are the percent
increase or decrease compared to the same period of the prior fiscal year

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.1

(Qualitative information concerning consolidated operating results)
Management Environment(From November 1, 2004 to January 31, 2005)

During the first quarter, Japan’s economy shifted fundamentally from its recovery trend, slowing from thesecond half of last year and exhibiting signs of drift as the pace of business activity weakened. In theconstruction industry, the main customer of the Kanamoto Group, the slowdown followed cutbacks in the
public works expenditure budget and coincided with construction delays caused by natural disasters in2004 and the New Year holidays. Overall this created a generally severe environment, particularly inregions where private demand was extremely limited. The construction equipment rental business, themain business of the Kanamoto Group, similarly reflected this environment, which hampered theCompany’s efforts to improve operating results.
As a result of these factors, consolidated operating results for the first quarter of the fiscal year ending in
October 2005 were nearly unchanged from the same period of the prior consolidated fiscal year.
Consolidated revenues were ¥17,612 million, while consolidated operating income was ¥748 million,
consolidated ordinary income was ¥719 million and consolidated net income was ¥398 million. A summaryof operating results for each of the Company’s main businesses, as well as business development issues
deserving special mention, is provided below.
Summary of operating results by business[ Business related to the Construction Equipment Rental Division ]In regions such as Hokkaido and Kyushu where the local economies are greatly depressed because of
reductions in public works expenditures, construction demand was also weak and construction equipment
rental revenues fell below the level of the same quarter of the prior consolidated fiscal year. In the Kanto
Shinetsu territory that includes Tokyo, on the other hand, both public works and private sector demand
were robust, and in the Kinki-Chubu territory construction related to large-scale projects such as the
Chubu International Airport was also vigorous. As a result, these areas achieved double-digit revenue
growth compared with the same period of the prior consolidated fiscal year. Restoration construction
following the Niigata Prefecture Chuetsu Earthquake was centered on temporary housing, and full-scale
restoration work is expected to take place from the spring of 2005 (from Kanamoto’s third quarter).
Revenue from construction equipment sales declined, primarily because replacements with equipment
fitted with pollution-control devices was completed and sales of the Company’s own used construction
equipment were maintained at the level of its initial plan.
[ Business related to the Steel Sales Division ]Double-digit sales growth compared to the same period of the prior consolidated fiscal year was achieved
as the result of higher demand, including demand for new factory construction.
[ Business related to the Information Products Division and Other Businesses ]In the Company’s information products-related business, demand is growing but rental fees for both PCs
and Work Stations are near rock-bottom levels. Information product-related sales decreased sharply,
however, because of development delays on key products.
Business development issues deserving special mention and status of branch office changes
Japan’s Diet has approved a supplementary budget for disaster recovery work, allocating ¥1,238.4 billion
for public works-related construction plus a large supplementary budget. The Company believes it cananticipate corresponding growth in revenues in the various regions where restoration work will be initiated.
During the quarter under review, the Company did not establish any new branches or close any existing
branches.
From a standpoint of capital funding efficiency, the Company began the liquidation of bill receivables in
November 2004 as previously announced, and believes this will contribute to gradually reducing
interest-bearing debt.

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.2

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

Shareholders’EquityShareholders’Equity Ratio

Millions of yen

Shareholders’Equity per Share
Yen％

Fiscal Year Ending October 31,
2005: First Quarter

87,011

32,98237.9

1,104. 65

Fiscal Year Ended October 31,
2004: First Quarter

94,69632,06333.9

1,073. 49(Reference) Fiscal Year Ended
October 31, 2004

89,32332,74536.7

1,096. 42

Cash Flow fromOperating
Activities

Cash Flow from
Investing
Activities[Consolidated Cash Flows](Numbers less than one million yen have been rounded down)

Millions of yen

Millions of yen

Cash Flow from
Financing
Activities
Millions of yen

Balance of Cashand Equivalents at
End of Period
Millions of yen

Fiscal Year Ending October 31,
2005: First Quarter

9,174

33

−3,331

17,610Fiscal Year Ended October 31,
2004: First Quarter

1,169

−42

3,385

16,433(Reference) Fiscal Year Ended
October 31, 2004

6,230

−1,535−4,923

11,734(Qualitative information concerning change in consolidated financial position)
Compared with the end of the prior consolidated accounting fiscal year, total assets at the end of thequarter under review decreased ¥2,312 million to ¥87,011 million. This mainly reflected the liquidation ofbill receivables and a decline in interest-bearing debt.
Shareholders’ equity increased ¥236 million compared with the end of the prior consolidated accounting
fiscal year to ¥32,982 million, and the shareholders’ equity ratio rose to 37.9%.
(Cash flow from operating activities)
Cash flow from operating activities was ¥9,174 million yen, an increase of ¥8,005 million from the same
period of the prior consolidated accounting fiscal year. This change was mainly from the increase in cash
provided by the reduction in accounts receivable, trade because of the liquidation of bill receivables.
(Cash flow from investing activities)
Cash flow from investing activities increased ¥75 million from the same period of the prior consolidated
fiscal accounting year to ¥33 million. This mainly reflected an increase in cash provided from the sale oftangible fixed assets.
(Cash flow from financing activities)
Cash flow used in financing activities was ¥3,331 million, a change of ¥6,717 million from the same
period of the prior consolidated accounting fiscal year. This primarily reflected a decrease in funds
provided by long-term bank loans and an increase in funds used to repay long-term bank loans.

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.3

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 2005
(November 1, 2004 - October 31, 2005)

Projected
Revenues

Projected Operating
IncomeProjected Ordinary
IncomeProjected Net

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Interim32,250

1,440

1,280

650

Full-year

63,400

2,130

1,790

740

Income(Reference) Projected net income per share (full-year) ¥24.78(Qualitative information concerning projected operating results)
Operating results for the quarter under review were slightly below the initial plan objective. Nevertheless,
the Company believes future operating results will generally be close to plan because the supplementarybudget for public works for disaster recovery has been approved and this construction is expected to begin
soon. Therefore for its performance forecast shown above, the Company has maintained the projectedconsolidated operating results announced in the Accounting Bulletin (Consolidated) released at the end oflast year, without making any revisions.
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.

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.4

1. (Summary) First Quarter Consolidated Balance Sheets(Unit: Thousands of yen, %)PeriodItem

Prior FY Quarter
Current Quarter(First Quarter of (First Quarter of
the Consolidated the Consolidated
Accounting Fiscal Accounting Fiscal
Year EndedYear Ending
October 31, 2005) October 31, 2004)(Reference)
Consolidated
Accounting Fiscal
Year Ended
October 31, 2004

Change fromprior year

AmountAmountAmount

1． Cash and deposits

17,618,767

16,441,743

1,177,023

7.2

11,742,173

Notes and accounts
2．
receivable, trade

15,065,882

23,679,425−8,613,543−36.4

23,480,548（
I

AssetsPercent

Amount）Current Assets

3． Negotiable securities
4． Inventory
5．

Construction
equipment−

39,645−39,645−100.0−663,135

915,514−252,379−27.6

703,059

1,797,619

2,061,669−264,050−12.8

1,905,762

6． Deferred tax assets

283,053

188,957

94,09549.8

252,069

7． Other

431,992

303,128

128,86342.5

429,435

Allowance for doubtful
accounts−551,215−574,019

22,8034.0−730,669

Total Current Assets

35,309,233

43,056,064−7,746,831−18.0

37,782,380(1) Rental equipment
Buildings and(2) structures

10,658,532

12,309,728−1,651,196−13.4

10,309,578

6,854,244

7,040,195−185,951−2.6

7,011,800(3) Land

26,060,314

24,651,537

1,408,776

5.7

26,112,181(4) Other
Total Tangible Fixed
AssetsIntangible Fixed
2.
AssetsConsolidation(1) adjustment account

1,318,651

1,414,187−95,535−6.8

1,271,445

44,891,743

45,415,649−523,906−1.2

44,705,006

531,987−

531,987−

559,067

250,797

108,654

142,143130.8

262,569

782,785

108,654674,130

620.4

821,637

II

Fixed Assets

1.

Tangible Fixed Assets(2) Other
Total Intangible Fixed
Assets3.

Investments andOther Assets(1) Investment securities

4,181,853

3,729,243

452,61012.1

3,938,162(2) Deferred tax assets

719,937

1,364,518−644,581−47.2

911,019(3) Other
Allowance for
doubtful accounts
Total Investments
and Other Assets

2,828,939

1,619,808

1,209,130

74.6

2,826,514−1,703,043−597,756−1,105,286−184.9−1,660,994

6,027,687

6,115,814−88,127−1.4

6,014,701

Total Fixed Assets

51,702,216

51,640,119

62,0970.1

51,541,344

87,011,449

94,696,183−7,684,734−8.1

89,323,725

Total Assets

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.5

(Unit: Thousands of yen, %)Current Quarter
Prior FY Quarter
Period (First Quarter of the (First Quarter of theConsolidated
Consolidated
Accounting Fiscal Accounting Fiscal
Year Ending
Year Ended October
October 31, 2005)
31, 2004)

Item

Liabilities（(Reference)
Consolidated
Accounting Fiscal
Year Ended October
31, 2004

Change from prioryear

AmountAmountAmountPercent

Amount13,081,321

12,226,672

854,649

7.0

13,405,603

791,020

3,882,735−3,091,714−79.6

676,639

10,691,496

10,297,500

393,996

3.8

10,935,496

429,740

324,145

105,59432.6

368,813644,671

612,594

32,077

5.2

480,597

3,477,147

5,872,040−2,394,892−40.8

4,129,127

615,179

664,597−49,418−7.4

623,001

29,730,576

33,880,284−4,149,707−12.2

30,619,278

20,201,229

22,077,549−1,876,320−8.5

21,952,103

1,263,914

1,805,440−541,526−30.0

1,228,829

115,299

182,883−67,584−37.0

96,281

2,528,840

4,525,074−1,996,234−44.1

2,496,910−

16,140−16,140−100.0−）Current Liabilities

I

Notes and accounts
1．
payable, trade
2．Short-term bank loans
Long-term bank loans
3．
due within one year
Corporate taxes
4．
payableAccrued bonuses to5．
employees
Accounts payable,
6．
other
7． Other
Total Current Liabilities

II

Long-term Liabilities

1．Long-term bank loans
Accrued employees
2．
retirement benefits
Retirement allowances
3． to directors andauditors
Long-term accrued
4．
expenses
Consolidation
5．
adjustment account
6． Other

99,37861,07638,302

62.7

125,226

Total Long-term
Liabilities

24,208,661

28,668,164−4,459,502−15.6

25,899,351

Total Liabilities

53,939,238

62,548,449−8,609,210−13.8

56,518,630

90,061

83,7386,322

7.6

59,2458,596,737

8,596,737−−

8,596,737

9,720,343

9,720,343−−

9,720,343

14,005,797

13,516,934

488,862

3.6

13,913,568

842,818

407,299

435,519106.9

697,675−183,546−177,318−6,228−3.5−182,475

32,982,149

32,063,996

918,153

2.9

32,745,849

87,011,449

94,696,183−7,684,734−8.1

89,323,725（ Minority Interests ）Minority Interests

（
I
II
III
IV
V

Shareholders’）EquityCommon stock
Additional paid-in
capitalConsolidated retained
earnings
Valuation difference onother investment
securities
Treasury stock
Total Shareholders’EquityTotal Liabilities,
Minority Interests
and Shareholders’EquitySummary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.6

2. (Summary) First Quarter Consolidated Statements of Income(Unit: Thousands of yen, %)Item

Prior FY Quarter
Current Quarter
Period (First Quarter of the (First Quarter of theConsolidated
Consolidated
Accounting Fiscal
Accounting Fiscal
Year Ended OctoberYear Ending
31, 2004)
October 31, 2005)(Reference)
Consolidated
Accounting Fiscal
Year Ended October
31, 2004

Change from prioryear

AmountAmountAmountPercent

AmountI

Revenues

17,612,980

16,270,337

1,342,643

8.3

61,336,258

II

Cost of revenues fromoperations

12,905,870

11,817,776

1,088,094

9.2

47,017,429

Gross profit

4,707,110

4,452,561

254,548

5.7

14,318,828

III

Selling, general andadministrative
expenses

3,958,474

3,639,141

319,333

8.8

12,440,160

Operating income

748,635

813,419−64,784−8.0

1,878,668

IV

Non-operating
revenues

1． Interest revenue

1,430

29

1,401

−

2,781

2． Dividend income

11,064

5,246

5,818

110.9

68,30812,65915,979−3,319−20.8

47,261

4． Rents received

23,675

20,532

3,142

15.3

113,474

5． Other

53,76945,284

8,484

18.7

206,612102,599

87,072

15,52717.8

438,438

1． Interest expense

88,75585,155

3,599

4.2

347,660

2． Others

3．

Gain on sale ofinvestment securities

Total non-operating
revenues
Non-operating
expensesV

VI

43,37025,195

18,175

72.1

219,738

Total non-operating
expenses

132,126

110,351

21,774

19.7

567,399

Ordinary income

719,108

790,140−71,031−9.0

1,749,707

4,254

−

4,254

−

8,334

−

−

−

−

606,420

147,200−

147,200

−

−

5,878

6

5,872

−

5,472

157,333

6

157,327−

620,226

21,065

1,863

19,202−

97,824−−−−59,96021,065

1,863

19,202−

157,785

855,376

788,283

67,0928.5

2,212,149

364,862

280,726

84,13530.0

839,083

61,57564,331−2,756−4.3

256,687

30,81543,431−12,616−29.0

18,939398,123

399,793−1,670−0.4

1,097,439

Extraordinary profits

Gain on sale or
1． retirement of fixed
assetsGain on return of
entrusted portion of
2． corporate Employee
Welfare Pension Fund
Gain on reversal of
3． allowance for doubtful
accounts
4． Other
Total extraordinary
profits
VII Extraordinary losses
Loss on sale or
1． retirement of fixed
assets
2． Other
Total extraordinary
lossesIncome before taxes andadjustments
Corporate, local andbusiness taxes
Adjustment for corporate
and other taxes
Minority interest in income
or loss
Net income

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.7

3. (Summary) First Quarter Consolidated Statements of Cash Flows

PeriodItem(Unit: Thousands of yen)
Prior FY Quarter
Current Quarter(Reference)(First Quarter of the(First Quarter of theConsolidated Accounting
Consolidated Accounting Consolidated Accounting
Fiscal Year Ended
Fiscal Year Ended
Fiscal Year Ending
October 31, 2004
October 31, 2004)
October 31, 2005)
AmountAmountAmountI Cash flow from operating activities
Income before taxes and adjustments
Depreciation and amortization
expenseAmortization of consolidation
adjustment accountGain on sale or retirement of fixed
assetsLoss on sale or retirement of fixed
assetsInstallment 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 of rental
assetsValuation loss on investment securities
Gain on sale of investment securities
Increase (decrease) in allowance for
doubtful accounts
Increase in accrued bonuses to
employees
Increase (decrease) in accrued
employees retirement benefits
Increase (decrease) in retirement
allowances to directors and auditors
Interest revenue and dividend income

855,376

788,283

2,212,149

1,162,277

1,274,652

5,294,745

27,129

−1,461−5,845−4,254−−8,33421,065

1,863

97,824

88,2384,230

12,475

4,572

5,759

22,224

84,117387,261

1,482,068−639,893−110,194−1,278,248−−

42,544−12,659−15,979−47,261−137,405

119,175

152,945

164,074

169,725

6,692

35,084

28,125−548,485

19,017−14,210−101,749−12,495−5,275−71,090

Interest expense on installment
purchases of rental assets

20,59834,373111,954

Interest expense

88,75585,155

347,660

8,414,666−2,267,505−944,131

39,924−61,217

204,823−324,281

1,178,386

1,071,687−234,156

284,723

239,627

Directors and auditors' bonuses paid

−7,300−14,100−14,100

Other−71,822

19,305−538,148

Subtotal

9,580,629

1,891,076

7,742,029

12,495

5,275

71,090Interest expense−113,825−121,322−463,881

Payment of corporate and other taxes−304,371−605,275−1,119,008

Cash flow from operating activities

9,174,928

1,169,753

6,230,229

Increase (decrease) in accounts
receivable, trade(Increase) decrease in inventory
assetsIncrease (decrease) in accounts
payable, trade
Increase (decrease) in accounts
payable, other

Interest and dividends received

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.8

Period
Item(Unit: Thousands of yen)
Prior FY Quarter
Current Quarter(Reference)(First Quarter of the(First Quarter of theConsolidated Accounting
Consolidated Accounting Consolidated Accounting
Fiscal Year Ended
Fiscal Year Ended
Fiscal Year Ending
October 31, 2004
October 31, 2004)
October 31, 2005)
AmountAmountAmountII Cash flow from investing activities
Funds used for the purchase of tangible
fixed assets
Funds provided from the sale oftangible 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 purchase of subsidiarycompany stock
Funds provided from purchase of
subsidiary company stock followingchange in scope of consolidation
Other
Cash flow from investing activities−78,963−53,788−1,899,402

65,899−15,555−2,030−10,830−182,859−294,279−344,401−1,044,472

342,796

443,590

1,332,729−−27,875−27,875−−

319,306−50−48,909−48,593

33,373−42,215−1,535,610

114,381

3,169,376−36,718

900,000

4,500,000

11,930,000−2,894,874−2,532,066−10,709,516−1,151,550−1,482,772−5,564,061−1,070−−5,157−298,594−268,819−537,604

−

−150

−150

−3,331,708

3,385,567−4,923,208

5,876,593

4,513,106−228,589

11,734,154

11,920,620

11,920,620−−

42,124

17,610,748

16,433,726

11,734,154

III 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 repayment of
installment obligations
Funds used for the purchase of treasury
stock
Payment of dividends to parent
company
Other
Cash flow from financing activities
I V
V
V I
VII

Increase (decrease) in cash andequivalents
Balance of cash and equivalents at
beginning of period
Increase in cash and equivalents
accompanying merger with
non-consolidated subsidiary
Balance of cash and equivalents at
end of the period

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.9

4. Business Segment Information[ Segment information by type of business ]Current quarter (From November 1, 2004 to January 31, 2005)(Unit: Thousands of yen)

Revenues
Operatingexpenses
OperatingincomeConstruction
equipment
rental business

Steel sales
business

Information
products
business andotherbusinesses

15,905,693

1,600,404

106,883

17,612,980−

17,612,980

15,203,633

1,594,863

106,637

16,905,134−40,788

16,864,345

702,059

5,541

245

707,846

40,788748,635

Total

Eliminations or
entire company

Consolidated

Same quarter of the prior consolidated accounting fiscal year
(From November 1, 2003 to January 1, 2004)(Unit: Thousands of yen)

Revenues
Operatingexpenses
OperatingincomeConstruction
equipment
rental business

Steel sales
business

Information
products
business andotherbusinesses

14,875,633

1,285,273

109,430

16,270,337−

16,270,337

14,042,430

1,329,181

119,572

15,491,183−34,265

15,456,918

833,203−43,908−10,141

779,153

34,265

813,419

Total

Eliminations or
entire company

Consolidated[ Segment information by location ]Current quarter and same quarter of the prior consolidated accounting fiscal year
The Company does not report segment information by location because the Company does not haveany consolidated subsidiaries or important offices located in countries or regions outside of Japan.

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.10

5. (Summary) First Quarter Company Balance Sheets(Unit: Thousands of yen, %)PeriodItem

Assets（I

Current Quarter
Prior FY Quarter(First Quarter of the (First Quarter of the
Fiscal Year Ending Fiscal Year Ended
October 31, 2005) October 31, 2004)
AmountAmount(Reference)
Fiscal Year Ended
October 31, 2004

Change from prioryear
AmountPercent

Amount）Current Assets
1．Cash and deposits

16,676,341

15,828,389

847,951

5.4

10,911,377

2．Notes receivable, trade

3,521,707

13,627,513−10,105,805−74.2

10,889,913

Accounts
3．
trade

9,825,504

9,662,046

163,457

1.7

11,067,221−

39,645−39,645−100.0−330,561

392,898−62,336−15.9

344,870

1,473,192

1,851,726−378,534−20.4

1,556,528

7．Deferred tax assets

259,709

151,112

108,59771.9

229,340

8. Otherreceivable,

4．Negotiable securities
5．Inventory
6．

Construction
equipment

794,667

534,401

260,26548.7

800,216

Allowance for doubtful
accounts−446,738−549,967

103,22918.8−629,663

Total Current Assets

32,434,945

41,537,766−9,102,820−21.9

35,169,805(1) Rental equipment

10,134,553

12,008,087−1,873,533−15.6

9,719,372(2) Building

5,616,672

5,726,834−110,162−1.9

5,731,090(3) Structures

964,390

1,154,651−190,260−16.5

1,000,057(4) Land

25,786,514

24,381,774

1,404,740

5.8

25,838,381(5) Other

1,272,632

1,389,274−116,642−8.4

1,235,587

43,774,762

44,660,622−885,859−2.0

43,524,490

Intangible Fixed
AssetsTotal Intangible Fixed
AssetsInvestments andOther Assets

213,356

103,317

110,039106.5

226,860(1) Investment securities

4,074,226

3,499,597

574,62916.4

3,800,470

Stock of affiliated(2)companies

1,037,210

1,101,857−64,646−5.9

1,037,210(3) Deferred tax assets

813,092

1,431,982−618,889−43.2

1,004,962

1,577,585

1,581,999−4,413−0.3

1,549,381−599,731−597,756−1,974−0.3−564,006−280,000−229,402−50,597−22.1−280,000

6,622,384

6,788,276−165,892−2.4

6,548,018

Total Fixed Assets

50,610,503

51,552,216−941,712−1.8

50,299,369

Total Assets

83,045,449

93,089,982−10,044,533−10.8

85,469,174

II

Fixed Assets

1.

Tangible Fixed Assets

Total Tangible Fixed
Assets2.

3.

(4) Other
Allowance for
doubtful accounts
Reserve forinvestment losses
Total investments
and other assets

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.11

(Unit: Thousands of yen, %)PeriodItem（
I

Liabilities

Prior FY Quarter
Current Quarter(First Quarter of the (First Quarter of the
Fiscal Year Ending Fiscal Year Ended
October 31, 2005) October 31, 2004)
AmountAmount(Reference)
Fiscal Year Ended
October 31, 2004

Change from prioryear
AmountPercent

Amount）Current Liabilities
1．Notes payable, trade

9,467,415

10,014,103−546,687−5.5

8,967,156

Accounts payable,
2．
trade

1,978,243

1,765,449

212,793

12.1

2,838,409−

3,000,000−3,000,000−100.0−10,513,000

10,206,000

307,000

3.0

10,747,000

3,415,761

5,733,390−2,317,628−40.4

4,065,427

387,751

296,003

91,74731.0

362,284598,290583,589

14,701

2.5

436,029

677,868

1,010,785−332,917−32.9

659,869

27,038,329

32,609,321−5,570,991−17.1

28,076,177

19,025,000

21,958,000−2,933,000−13.4

20,735,000

2,424,409

4,444,823−2,020,414−45.5

2,426,551

88,874

162,000−73,125−45.1

71,542

1,261,932

1,805,016−543,083−30.1

1,226,848

22,800,217

28,369,840−5,569,622−19.6

24,459,941

49,838,547

60,979,161−11,140,614−18.3

52,536,118

8,596,737

8,596,737−−

8,596,737

9,720,343

9,720,343−−

9,720,343

9,720,343

9,720,343−−

9,720,343

1,375,287

1,375,287−−

1,375,287

General reserve

11,831,684

11,281,684

550,000

4.9

11,281,684

Unappropriatedretained earnings

1,023,152

906,787

116,36412.8

1,443,580

Total earned surplus

14,230,124

13,563,760

666,364

4.9

14,100,552

843,243

407,299435,944107.0

697,897−183,546−177,318−6,228−3.5−182,475

33,206,902

32,110,821

1,096,081

3.4

32,933,055

83,045,449

93,089,982−10,044,533−10.8

85,469,174

3．Short-term bank loans
Long-term bank loans
4．
due within one year
Accounts payable,
5．
otherCorporate taxes
6．
payableAccrued bonuses to7．
employees
8．Other
Total Current Liabilities
Long-term
Liabilities
Long-term
bank
1．
loans
Long-term accrued2．
expenses
Retirement
3． allowances todirectors and auditors
Accrued employees
4．
retirement benefits
TotalLong-term
Liabilities

II

Total Liabilities（
I
II

Shareholders’Equity）Common stock
Capital surplus
Additional paid-in
capital
Total capitalsurplus

III

Earned surplus
Legal earned surplus
Voluntary reserves

IVV

Valuation difference onother investment
securities
Treasury stock
Total Shareholders’EquityTotal Liabilities andShareholders’ Equity

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.12

6. (Summary) First Quarter Company Statements of Income(Unit: Thousands of yen, %)PeriodItem

Prior FY Quarter
Current Quarter(First Quarter of the (First Quarter of the
Fiscal Year Ending Fiscal Year Ended
October 31, 2005) October 31, 2004)
AmountAmount(Reference)
Fiscal Year Ended
October 31, 2004

Change from prioryear
AmountPercent

AmountI

Operating revenues

15,475,649

15,593,096−117,446−0.8

59,274,381

II

Cost of revenues

11,359,033

11,482,677−123,643−1.1

45,811,415

Gross profit

4,116,615

4,110,418

6,197

0.2

13,462,966

III

Selling, general andadministrative expenses

3,464,406

3,437,872

26,5340.8

11,620,779

652,209672,546−20,337−3.0

1,842,186

IV

Non-operating revenues

1．Interest and dividends

15,110

7,997

7,113

88.9

77,222Gain on sale of2．
investment securities

12,65915,979−3,319−20.8

47,261

3． Rents received

61,43135,92825,50371.0

176,170

4． Other

57,614

48,983

8,630

17.6

228,808

146,816

108,888

37,92734.8

529,462

1． Interest expense

78,54581,497−2,951−3.6

332,619

2． OtherOperating income

Total non-operating
revenues
VNon-operating expenses

30,92425,144

5,779

23.0

211,527

Total non-operating
expenses

109,470

106,641

2,828

2.7

544,146

Ordinary income

689,555674,793

14,7612.2

1,827,502

4,254

−

4,254

−

8,334

−

−

−

−

606,420

147,200−

147,200

−

−

116

6

110

−

5,472

151,5716

151,565−

620,226

19,7301,839

17,890972.6

94,392−−−−

41,898−−−−50,597−−−−18,062

19,7301,839

17,890972.6

204,949

821,396

672,960

148,43622.1

2,242,779

322,952

252,584

70,36827.9

832,790

62,977

71,071−8,094−11.4

222,880

Net income

435,466

349,304

86,16224.7

1,187,109

Profit carry-forward fromprior period

587,686

557,483

30,202

5.4

557,483

−

−

−

−

268,785

−

−

−

−

32,226

1,023,152

906,787

116,36412.8

1,443,580

VI

Extraordinary profits

Gain on disposal of fixed
assetsGain on return of entrusted
portion of corporate
2．
Employee Welfare Pension
Fund
Gain on reversal of
3． allowance for doubtful
accounts
1．

4． Other
Total extraordinary
profits
VII

Extraordinary losses

Loss on sale or disposalof fixed assets
Valuation loss on2．
investment securities
Transfer to reserve for3．
investment losses
1．

4． Other
Total extraordinary
lossesIncome before taxes andadjustments
Corporate, local and business
taxes
Adjustment for corporate andother taxes

Cash dividends
Loss on cancellation ofaffiliated company stock
related to merger
Unappropriated retained
earnings

Summary of First Quarter Operating Results (Consolidated),
Fiscal Year Ending October 31, 2005
P.13