Message from the President

Conscious of our mission and the role of "equipment rentals," we will work to expand our earnings in Japan and overseas.

I am pleased to report on the operating activities of Kanamoto Co., Ltd. during the Business Period ended October 31, 2013, and discuss our policies for the future.

During this business period, Japan's economy sustained its shift toward a recovery.
Steady expansion of personal consumption that is being driven by a sense of anticipation toward so-called Abenomics, the gradual recovery of exports powered by the economic recovery overseas and the effect of the supplementary budget for Fiscal 2012, formulated by incorporating emergency economic measures that raised the total budget to more than 13 trillion yen, are gradually generating results. Restoration and reconstruction demand following the Great East Japan Earthquake has become a factor supporting economic growth as well.

The Kanamoto Group is also keenly aware of the mission of construction equipment rentals as critical social infrastructure, and will devote its full efforts to supporting future restoration and recovery of the disaster-stricken areas. We therefore established four new branch offices during the current period in the areas stricken by the disaster.
The final decisions also were made to hold the Tokyo Olympics and Paralympics Games in Japan in 2020 and begin construction of a high-speed linear (maglev) train line between Tokyo and Osaka. Because a burst of concentrated investment over a short timeframe is anticipated, for which equipment rentals can also be expected to play an even greater role than in the past, Kanamoto will commit itself to undertaking the proper investments.

In our overseas operations, which we have positioned as an engine for medium to long-term growth, we will continue to focus on the expansion of Kanamoto's business in China and Singapore, and seek to expand earnings by working to reliably attract vigorous demand in mainland China, Hong Kong, and Singapore.

We look forward to continuing to receive your unwavering support and encouragement for the Kanamoto Group in the future.

Kanamoto's Directors and Corporate Offi cers