Consolidated Financial Highlights

	Millions of yen		Thousands of U.S. dollars (Note)
	2012	2013	2013
Consolidated operating results
Rental revenues and sales of goods	¥86,106	¥110,831	$1,125,082
Operating income	6,430	11,392	115,652
Ordinary income	5,932	11,073	112,410
Net income	3,575	5,809	58,971
ROE	9.3%	12.3%	12.3%
Dividend payout ratio	18.4%	11.4%	11.4%
Plant and equipment investment	21,814	28,348	287,773
Consolidated financial position
Total assets	137,343	169,250	1,718,108
Shareholders' equity	41,399	56,192	570,427
Shareholders' equity ratio	29.2%	32.2%	32.2%
Shareholders' equity per share (yen)	1,221.56	1,513.49	15.36
Consolidated cash flows
Cash flow from operating activities	14,306	20,759	210,735
Cash flow from investing activities	–835	–1,117	–11,343
Cash flow from financing activities	–14,074	–6,532	–66,314
Balance of cash and equivalents at end of period	19,717	32,957	334,559

Information per share of common stock	Yen		U.S. dollars (Note)
Net income	¥ 108.88	¥ 175.50	$ 1.78
Dividends per share	20.00	20.00	0.20

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥98.51=US $1, the approximate exchange rate on October 31, 2013.

Financial Topics

Net Sales

During the current period, private sector capital investment demand remained brisk on a nationwide scale, particularly for energy-related construction. Government construction investment continued to expand as well, not only in the earthquake-devastated region but throughout Japan, including works to strengthen infrastructure and construction related to countermeasures, maintenance and repairs of deteriorating infrastructure. To respond accurately to such demands and diversified frontline needs, the Kanamoto Group moved to strengthen cooperation among Group firms, aggressively enhance its rental equipment portfolio and place these assets in optimal locations in the field. These actions generated significant net sales growth in every region.

Earnings

By seeking more efficient utilization of its management resources and striving to improve profit margins, while simultaneously moving to thoroughly analyze, enhance and improve the efficiency of its present activities and processes and initiating organizational changes aimed at strengthening earnings, the Group achieved results at the operating income, ordinary income and net income levels that substantially surpassed its performance in the prior period.