Consolidated Financial Statements

Consolidated Balance Sheets

ASSETS	October 31, 2013	October 31, 2014
	Millions of yen	Millions of yen	Thousands of U.S. dollars (Note)
Current assets :
Cash and deposits	¥ 32,627	¥ 31,650	$ 289,468
Notes and accounts receivable-trade	27,731	33,651	307,767
Securities	350	350	3,201
Merchandise and finished goods	642	595	5,441
Costs on uncompleted construction contracts	20	50	457
Raw materials and supplies	201	227	2,083
Construction machine parts	3,954	6,566	60,051
Deferred tax assets	983	656	6,001
Other	792	559	5,112
Allowance for doubtful accounts	(335)	(227)	(2,077)
Total current assets	66,968	74,080	677,522
Non-current assets :
Property, plant and equipment
Rental equipment	56,899	65,644	600,371
Buildings and structures	7,702	8,027	73,420
Machinery, equipment and vehicles	619	659	6,032
Tools, furniture and fixtures	227	293	2,680
Land	29,798	31,459	287,719
Construction in progress	75	256	2,347
Total property, plant and equipment	95,322	106,341	972,574
Intangible assets
Goodwill	19	57	526
Other	250	208	1,906
Total intangible assets	270	266	2,432
Investments and other assets
Investment securities	5,256	6,286	57,491
Deferred tax assets	147	265	2,425
Other	1,894	1,854	16,957
Allowance for doubtful accounts	(541)	(491)	(4,494)
Allowance for investment loss	(67)	(110)	(1,006)
Total investments and other assets	6,689	7,804	71,374
Total non-current assets	102,282	114,411	1,046,380
Total Assets	¥ 169,250	¥ 188,491	$ 1,723,903

LIABILITIES AND NET ASSETS	October 31, 2013	October 31, 2014
	Millions of yen	Millions of yen	Thousands of U.S. dollars (Note)
Current liabilities :
Notes and accounts payable-trade	¥ 21,293	¥ 23,134	$ 211,584
Short-term loans payable	12,771	12,496	114,285
Lease obligations	1,085	995	9,103
Accounts payable-other	12,728	16,460	150,545
Income taxes payable	3,533	3,729	34,110
Provision for bonuses	823	850	7,776
Allowance for losses on employee pension fund withdrawal	200	ー	ー
Other	1,983	2,988	27,334
Total current liabilities	54,419	60,655	554,741
Non-current liabilities :
Long-term loans payable	26,288	21,698	198,447
Lease obligations	2,662	2,082	19,044
Provision for retirement benefits	7	ー	ー
Long-term accounts payable-other	29,329	37,853	346,201
Asset retirement obligations	210	231	2,118
Net defined benefit liability	ー	16	149
Other	138	440	4,029
Total noncurrent liabilities	58,638	62,322	569,989
Total Liabilities	113,058	122,978	1,124,731
Net assets :
Shareholders' equity
Capital stock	13,652	13,652	124,866
Capital surplus	14,916	14,916	136,427
Retained earnings	24,462	32,860	300,530
Treasury shares	(48)	(56)	(517)
Total shareholders’ equity	52,983	61,373	561,307
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,567	1,977	18,086
Foreign currency translation adjustment	(1)	14	134
Total accumulated other comprehensive income	1,566	1,992	18,220
Minority interests	1,643	2,147	19,643
Total Net Assets	56,192	65,513	599,172
Total Liabilities and Net Assets	¥ 169,250	¥ 188,491	$ 1,723,903

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥109.34=US$1, the approximate exchange rate on October 31, 2014.

Consolidated Statements of Income

	Prior Consolidated Fiscal Year (From November 1, 2012 to October 31, 2013)	Current Consolidated Fiscal Year (From November 1, 2013 to October 31, 2014)
	Millions of yen	Millions of yen	Thousands of U.S. dollars (Note)
Net sales	¥ 110,831	¥ 125,555	$ 1,148,301
Cost of sales	76,522	85,334	780,450
Gross profit	34,309	40,220	367,850
Selling, general and administrative expenses	22,916	23,766	217,361
Operating income	11,392	16,454	150,489
Non-operating income
Interest income	67	99	908
Rent income	58	57	528
Insurance income	84	33	304
Foreign exchange gains	223	183	1,681
Amortization of negative goodwill	51	ー	ー
Reversal of allowance for doubtful accounts	19	79	725
Other	263	260	2,384
Total non-operating income	768	714	6,532
Non-operating expenses
Interest expenses	824	609	5,576
Loss on sales of notes payable	41	34	319
Other	223	445	4,076
Total non-operating expenses	1,088	1,090	9,971
Ordinary income	11,073	16,078	147,049
Extraordinary income
Gain on sales of non-current assets	34	37	338
Subsidy income	36	12	112
Reversal of provision incurred from business combination	55	ー	ー
Other	1	0	0
Total extraordinary income	127	49	452
Extraordinary losses
Loss on sales and retirement of non-current assets	95	215	1,967
Impairment loss	217	ー	ー
Loss on valuation of investment securities	187	ー	ー
Loss on revision of retirement benefit plan	ー	43	399
Other	13	ー	ー
Total extraordinary losses	514	258	2,366
Income before income taxes and minority interests	10,686	15,869	145,134
Income taxes - current	4,856	5,849	53,499
Income taxes - deferred	(315)	284	2,606
Total income taxes	4,540	6,134	56,106
Income before minority interests	6,146	9,734	89,028
Minority interests in income	336	435	3,982
Net income	¥ 5,809	¥ 9,299	$ 85,046

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥109.34=US$1, the approximate exchange rate on October 31, 2014.

Consolidated Statements of Comprehensive Income

	Prior Consolidated Fiscal Year (From November 1, 2012 to October 31, 2013)	Current Consolidated Fiscal Year (From November 1, 2013 to October 31, 2014)
	Millions of yen	Millions of yen	Thousands of U.S. dollars (Note)
Income before minority interests	¥ 6,146	¥ 9,734	$ 89,025
Other comprehensive income
Valuation difference on available-for-sale securities	1,236	409	3,740
Foreign currency translation adjustment	74	19	173
Total other comprehensive income	1,310	429	3,923
Comprehensive income	7,454	10,164	92,957
Comprehensive income attributable to
Comprehensive income attributable to owners of the parent	7,098	9,725	88,942
Comprehensive income attributable to minority interests	¥ 358	¥ 439	$ 4,014

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥109.34=US$1, the approximate exchange rate on October 31, 2014.

Consolidated Statements of Changes in Net Assets (November 1, 2012 - October 31, 2014)

		Shareholders' equity					Accumulated other comprehensive income
	Number of shares of common stock	Common stock	Capital surplus	Retained earnings	Treasury stock	Total share- holders' equity	Net unrealized holding gain (loss) on other securities	Foreign currency translation adjustments	Total accumu- lated other compre- hensive income	Minority interests	Total net assets
	Thousands of shares	Millions of yen
Balance at November 1, 2012	32,872	¥ 9,696	¥ 10,960	¥ 19,199	¥ (27)	¥ 39,829	¥ 331	¥ (54)	¥ 0,276	¥ 1,293	¥ 41,399
Issuance of new shares	03,220	3,956	3,956			7,912			ー		7,912
Cash dividends				(656)		(656)			ー		(656)
Net income				5,809		5,809			ー		5,809
Change of scope of consolidation				109		109			ー		109
Acquisition of treasury stock					(20)	(20)			ー		(20)
Other						ー	1,236	53	1,289	349	1,639
Balance at October 31, 2013	36,092	¥ 13,652	¥ 14,916	¥ 24,462	¥ (48)	¥ 52,983	¥ 1,567	¥ (1)	¥ 1,566	¥ 1,643	¥ 56,192
Cash dividends				(901)		(901)			ー		(901)
Net income				9,299		9,299			ー		9,299
Acquisition of treasury stock					(8)	(8)			ー		(8)
Other						ー	409	16	426	504	930
Balance at October 31, 2014	36,092	¥ 13,652	¥ 14,916	¥ 32,860	¥ (56)	¥ 61,373	¥ 1,977	¥ 14	¥ 1,992	¥ 2,147	¥ 65,513

	Shareholders' equity					Accumulated other comprehensive income
	Common stock	Capital surplus	Retained earnings	Treasury stock	Total share- holders' equity	Net unrealized holding gain (loss) on other securities	Foreign currency translation adjustments	Total accumu- lated other compre- hensive income	Minority interests	Total net assets
	Millions of yen
Balance at October 31, 2013	$ 124,866	$ 136,427	$ 223,724	$ (443)	$ 484,575	$ 14,338	$ (15)	$ 14,322	$ 15,029	$ 513,927
Cash dividends			(8,240)		(8,240)			ー		(8,240)
Net income			85,046		85,046			ー		85,046
Acquisition of treasury stock				(73)	(73)			ー		(73)
Other					ー	3,748	149	3,898	4,614	8,512
Balance at October 31, 2014	$ 124,866	$ 136,427	$ 300,530	$ (517)	$ 561,307	$ 18,086	$ 134	$ 18,220	$ 19,643	$ 599,172

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥109.34=US$1, the approximate exchange rate on October 31, 2014.

Consolidated Statements of Cash Flows

	Prior Consolidated Fiscal Year (From November 1, 2012 to October 31, 2013)	Current Consolidated Fiscal Year (From November 1, 2013 to October 31, 2014)
	Millions of yen	Millions of yen	Thousands of U.S. dollars (Note)
Cash flows from operating activities:
Income before income taxes and minority interests	¥ 10,686	¥ 15,869	$ 145,134
Depreciation	15,181	17,950	164,173
Impairment loss	217	ー	ー
Amortization of goodwill	29	26	244
Loss (gain) on sales and retirement of non-current assets	60	178	1,628
The amount of assets buy on the installment plan purchase for small rentals	4	0	4
The amount of cost price transfer with the construction machine parts sale	9	8	76
The amount of cost price transfer with asset sell-off for rentals	866	684	6,259
Expenditure by the construction equipment and supplies	(64)	(124)	(1,136)
Expenditure by the assets acquisition for rentals	(3,047)	(2,633)	(24,086)
Loss (gain) on valuation of investment securities	187	ー	ー
Loss (gain) on sales of investment securities	(1)	ー	ー
Increase (decrease) in allowance for doubtful accounts	(12)	(183)	(1,682)
Increase (decrease) in allowance for investment loss	ー	42	384
Increase (decrease) in provision for bonuses	54	26	240
Increase (decrease) in provision for retirement benefits	6	ー	ー
Increase (decrease) in provision for loss on disaster	(10)	ー	ー
Increase (decrease) in allowance for losses on employee pension fund withdrawal	200	(200)	(1,829)
Increase (decrease) in net defined benefit liability	ー	8	77
Interest and dividend income	(67)	(99)	(908)
Assets buy on the installment plan purchase payment interest for rentals	243	347	3,177
Interest expenses	824	609	5,576
Foreign exchange losses (gains)	(160)	(138)	(1,263)
Reversal of provision incurred from business combination	(55)	ー	ー
Loss on revision of retirement benefit plan	ー	43	399
Decrease (increase) in notes and accounts receivable - trade	(4,107)	(5,833)	(53,353)
Decrease (increase) in inventories	(72)	(6)	(57)
Increase (decrease) in notes and accounts payable - trade	3,331	2,029	18,561
Increase (decrease) in accounts payable - other	1,031	1,728	15,810
Other, net	114	941	8,608
Subtotal	25,452	31,275	286,040
Interest and dividend income received	67	99	908
Interest expenses paid	(1,087)	(969)	(8,865)
Income taxes paid	(3,672)	(5,622)	(51,425)
Net cash provided by (used in) operating activities	¥ 20,759	¥ 24,782	$ 226,657
Cash flows from investing activities:
Payments into time deposits	ー	¥ (340)	$ (3,109)
Proceeds from withdrawal of time deposits	ー	340	3,109
Purchase of property, plant and equipment	(1,092)	(3,102)	(28,373)
Proceeds from sales of property, plant and equipment	100	40	366
Purchase of intangible assets	(123)	(84)	(775)
Purchase of investment securities	(343)	(311)	(2,846)
Proceeds from sales of investment securities	1	0	5
Purchase of shares of subsidiaries	ー	(27)	(250)
Purchase of shares of subsidiaries and associates	ー	(66)	(610)
Payments of loans receivable	(76)	(5)	(54)
Collection of loans receivable	418	165	1,509
Other, net	(1)	17	163
Net cash provided by (used in) investing activities	(1,117)	(3,374)	(30,866)
Cash flows from financing activities:
Net increase (decrease) in short-term loans payable	(322)	3	32
Proceeds from long-term loans payable	13,200	8,700	79,568
Repayments of long-term loans payable	(13,762)	(13,726)	(125,542)
Proceeds from issuance of common shares	7,912	ー	ー
Repayments of installment payables	(10,841)	(15,132)	(138,395)
Repayments of lease obligations	(2,040)	(1,347)	(12,328)
Purchase of treasury shares	(20)	(8)	(73)
Purchase of treasury shares of subsidiaries	ー	(0)	(0)
Cash dividends paid	(656)	(899)	(8,227)
Proceeds from share issuance to minority shareholders	ー	8	75
Cash dividends paid to minority shareholders	(1)	(3)	(27)
Net cash provided by (used in) financing activities	(6,532)	(22,405)	(204,919)
Effect of exchange rate change on cash and cash equivalents	134	21	193
Net increase (decrease) in cash and cash equivalents	13,244	(976)	(8,934)
Cash and cash equivalents at beginning of period	19,717	32,957	301,421
Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation	(4)	ー	ー
Cash and cash equivalents at end of period	¥32,957	¥ 31,980	$ 292,486

Note: U.S. dollar amounts have been translated from yen for convenience only, at the rate ¥109.34=US$1, the approximate exchange rate on October 31, 2014.