Three-Month Consolidated Financial Reportfor the Fiscal Year Ending October 31, 2021 (Japan GAAP)
Listed Company Name
Company Code Number
Listing Exchanges
URL
Representative
Inquiries

March 5, 2021
Kanamoto Co., Ltd.
9678
Tokyo Stock Exchange, Sapporo Stock Exchange
https://www.kanamoto.co.jp
Tetsuo Kanamoto
President and CEO
Shun Hirose
Director & Corporate Officer, Division Manager,
Accounting Division
TEL 81-11-209-1600

Scheduled date for submission of Quarterly Report
Scheduled date for commencement of dividend payments
Preparation of Quarterly Settlement Supplementary Explanatory Materials
Quarterly Earnings Briefings

March 15, 2021–
No
No

(Numbers less than one million yen have been rounded down)

1. Consolidated Operating Results for the Three-Month Period of the Fiscal Year Ending October
31, 2021(November 1, 2020 – January 31, 2021)(1) Consolidated Operating Results (Cumulative)
Net Sales
Millions of yen(Percentages show the change from the prior year)

Operating Profit%

Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Profit%

Millions of yen%

Millions of yen%

Fiscal year ending
October 31, 2021:
First quarter

47,660

4.9

3,981

-6.7

4,206

-3.7

2,265

-10.7

Fiscal year ended
October 31, 2020:
First quarter

45,431

3.0

4,266

9.0

4,367

8.9

2,536

2.2

(Note) Comprehensive income (millions of yen)
Fiscal year ending October 31, 2021, First quarter
Fiscal year ended October 31, 2020, First quarter

Earnings per
Share

3,280
3,027

(8.3%)(25.5%)

Earnings per
Share on a Fully
Diluted Basis

Yen

Yen

Fiscal year ending
October 31, 2021:
First quarter

59.92

–

Fiscal year ended
October 31, 2020:
First quarter

65.48

–

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of January 31,
2021

304,895

127,936

39.5

As of October 31,
2020

300,789

126,188

39.6(Reference) Equity (millions of yen)
As of January 31, 2021
120,565
As of October 31, 2020
119,091(Note) In the first quarter of the fiscal year ending October 31, 2021, the Company finalized the provisional accounting
treatment for business combinations, and the figures for the fiscal year ended October 31, 2020 reflect the finalized
content of the provisional accounting treatment.

－

1 －2. Dividends
Annual Dividends per Share
End offirst quarterEnd of second
quarter

Yen

Fiscal year ended October 31,
2020–

Fiscal year ending October 31,
2021–

End of third
quarter

Yen

Fiscal year ending October 31,
2021 (projected)

Year-end

Yen

Full-year
Yen

Yen

25.00

–

40.00

65.00

25.00

–

45.00

70.00

(Note) Has the Company revised its most recently released dividend projection?: No

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2021
(November 1, 2020 – October 31, 2021)(Percentages show the change from the prior year)
Net Sales
Millions of yen

Operating Profit% Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Profit% Millions of yen% Millions of yen

Earnings per
Share

%

Yen

Interim period

95,900

4.9

8,100

-12.3

8,200

-9.4

4,700

-12.1

124.33Full year

190,300

6.3

15,0005.3

15,200

6.5

9,000

6.3

238.08(Note) Has the Company revised its most recently released projected consolidated operating results during the quarter?: No－

2 －Notes(1) Changes in material subsidiaries during the period under review (Changes in specific subsidiaries in
conjunction with a change in the scope of consolidation): No
Company newly included (Company name)─
Company newly excluded (Company name)─(2) Application of special accounting method in the preparation of quarterly consolidated financial
statements: No(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements(a) Changes in accounting policy in conjunction with revision of accounting standards: No(b) Changes other than the above: No(c) Changes in accounting estimates: No(d) Retrospective restatements: No(4) Number of shares issued (common shares)(a) Number of shares outstanding at the end of the period (including treasury shares)
As of January 31, 2021:
38,742,241 shares
As of October 31, 2020:
38,742,241 shares(b) Number of treasury shares at the end of the period
As of January 31, 2021:
939,142 shares
As of October 31, 2020:
939,142 shares(c) Average number of shares outstanding during the period (cumulative from the beginning of the
fiscal year)
Fiscal year ending October 31, 2021: First quarter:
37,803,099 sharesFiscal year ended October 31, 2020: First quarter:
38,738,899 shares
Note: Quarterly earnings reports are not subject to quarterly review by certified public accountants or
independent account auditors.
Note: Explanation concerning appropriate use of the projected operating results and other items to note
(Note concerning forward-looking statements)
The forward-looking statements, including business results forecasts, contained in these materials
are based on information currently available to the Company and on certain assumptions deemed tobe reasonable. The Company does not guarantee the achievement of the projections. Actual
operating results may differ substantially due to a number of factors. Please refer to “1. Qualitative
Information Concerning Quarterly Consolidated Operating Results (3) Explanation Concerning Future
Forecasts Including Projected Consolidated Operating Results” on Page 6 of the Attachments for theconditions used as assumptions for the projected operating results and matters to note before using
the projected operating results.

－

3 －○Attachments Table of Contents
1. Qualitative Information Concerning Quarterly Consolidated Operating Results ………………………………

5(1) Qualitative Information Concerning Consolidated Operating Results …………………………………………… 5(2) Qualitative Information Concerning Consolidated Financial Position ……………………………………………

6(3) Explanation Concerning Future Forecasts Including Projected
Consolidated Operating Results ……………………………………………………………………………………………………… 6
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto……………………………………

7(1) Quarterly Consolidated Balance Sheets …………………………………………………………………………….………….

7(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ………………………………………………………………………………………………………….………

9(Quarterly Consolidated Statements of Income)(Consolidated Three-Month Period Ended January 31) …………………………………………………………

9(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Three-Month Period Ended January 31) ………………………………………………………… 10(3) Notes Concerning Quarterly Consolidated Financial Statements …………………………………………………

11(Notes Relating to the Going Concern Assumption) ……………………………………………………………………

11(Note on Significant Changes to Shareholders’ Equity) ……………………………………………………………… 11(Segment Information) ………………………………………………………………………………………………………………… 12－

4 －1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results
During the first quarter of the current consolidated fiscal year, Japan’s economy continued to be in adifficult situation due to the prolonged effects of the spread of the novel coronavirus disease (COVID19). Although there are expectations of a pickup due to the effects of a range of government policies
and the start of vaccinations, the outlook is expected to remain uncertain for the near future.
In the construction industry where the Kanamoto Group belongs, public sector investments weresteady, mainly in construction related to restoration, recovery from natural disasters, and in the
promotion of the national resilience, while there are concerns about the chronic shortage of skilledconstruction workers, in addition to the downward trend in private sector construction investments dueto the continued cautious investment attitude of companies, and other conditions that demand close
attention persist.
In such circumstances, the Group has worked to achieve its Medium-Term Corporate Management
Plan “Creative 60” (FY2020-2024) by promoting three key measures: expansion of domestic bases for
operations, overseas expansion, and optimization of internal operations. In addition, the Group iscommitted to the sustainable development of the Group and the enhancement of corporate value by
strengthening the foundation of the Alliance Group in Japan and abroad, ensuring the optimal
ownership and model mix of assets according to market conditions, as well as selection andconcentration to reinforce profitability.
In the first quarter of the current fiscal year, net sales rose 4.9% from the same period of the priorconsolidated fiscal year to ¥47,660 million. On the earnings front, partly due to an increase in selling,
general and administrative expenses caused by investment in human resources in preparation for the
future, operating profit decreased 6.7% year-on-year to ¥3,981 million, ordinary profit declined 3.7%
to ¥4,206 million, and profit attributable to owners of parent decreased 10.7% to ¥2,265 million.
Results for each of the Company’s business segments were as follows.
< Business related to the Construction Equipment Rental Division >In the construction-related business, which is Kanamoto’s core business, although private sector
construction investments were weak, rental demand for construction equipment was solid as a whole,due to the fact that public sector investments in construction related to restoration, recovery andprevention from natural disasters, as well as infrastructure maintenance and repair and new
construction, were relatively firm. In addition, the Group is working to expand its business bydeveloping bases that are deemed effective, promoting business alliances and M&As that are expected
to have high synergistic effects, addressing areas with low market share, and strengthening area
collaboration.
In addition, used construction equipment sales were at the same level as the same period of theprevious fiscal year, as Kanamoto carried out the sale as planned at the beginning of the fiscal year.
Reflecting these factors, the Kanamoto Group posted net sales in the construction-related
businesses of ¥43,299 million, an increase of 5.8% year-on-year, and operating profit of ¥3,581
million, a decrease of 8.4%.
< Other businesses >In the Company’s other businesses, sales continued to perform well in the welfare and informationrelated business, while the steel products-related business was affected by the fall in steel materials
prices, resulting in a 3.0% decrease year-on-year in net sales to ¥4,360 million and a 15.1% increasein operating profit to ¥283 million.

－

5 －(2) Qualitative Information Concerning Consolidated Financial Position
With regard to the business combination with KANAMOTO AUSTRALIA HOLDINGS PTY LTD conducted
on October 15, 2020, although provisional accounting treatment was carried out in the previous
consolidated fiscal year, it was finalized in the first quarter of the current consolidated fiscal year. As aresult of the finalization of the said provisional accounting treatment, a review of the allocation of
acquisition costs is applied in the comparative information included in the condensed consolidated
statement of income for the first quarter of the current fiscal year. In the comparison and analysis withthe end of the previous consolidated fiscal year, the figures after the revision of the initial allocation of
acquisition costs due to the finalization of the provisional accounting treatment have been used.
Assets, liabilities, and net assets
Total assets at the end of the first quarter of the current consolidated fiscal year under review stoodat ¥304,895 million, an increase of ¥4,106 million compared with the end of the prior consolidated
fiscal year. This was primarily due to a ¥1,474 million increase in cash and deposits, a ¥1,286 million
increase in electronically recorded monetary claims - operating and a ¥2,747 million increase in rental
equipment, while notes and accounts receivable - trade decreased by ¥1,797 million.
Total liabilities were ¥176,959 million, an increase of ¥2,358 million compared with the end of theprior consolidated fiscal year. This was primarily due to a ¥2,055 million increase in short-termborrowings and a ¥1,444 million increase in long-term borrowings, while income taxes payable
decreased by ¥1,372 million.
Total net assets totaled ¥127,936 million, ¥1,747 million higher than at the end of the priorconsolidated fiscal year. This mainly reflects the posting of profit attributable to owners of parent of¥2,265 million, an increase in valuation difference on available-for-sale securities of ¥402 million, andan increase in foreign currency translation adjustment of ¥316 million. Meanwhile, there was adecrease of ¥1,512 million due to dividends of surplus.
(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating
Results
There is no change to the projected consolidated operating results announced in the Financial
Statements Bulletin for the Fiscal Year Ended October 31, 2020 (Japanese GAAP) on December 4,
2020.

－

6 －

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of October 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims- operating
Merchandise and finished goods
Costs on construction contracts inprogress
Raw materials and supplies
Construction machine parts
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Rental equipment
Accumulated depreciation
Rental equipment, net
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment andvehicles, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Customer relationship
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－

7 －As of January 31, 2021

48,56341,45150,03739,654

6,166

7,452

1,205

1,760

148

116

1,234
19,9182,495-230
120,952

1,286
19,4402,606-224
122,130

251,960-153,225
98,734
39,833-23,293
16,5409,631-8,025260,089-158,606
101,482
41,387-23,628
17,7589,680-8,035

1,605

1,644

37,421
4,143-2,054
2,088
156,389

37,7283,160-2,082
1,078
159,692

6,504
1,195
1,455
9,155

6,374
1,228
1,473
9,076

8,974
2,377
3,557
-618
14,291
179,836
300,789

9,335
1,720
3,543
-603
13,995
182,764
304,895

(Millions of yen)
As of October 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-termborrowings
Lease obligations
Income taxes payable
Provision for bonuses
Accounts payable - other
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease obligations
Long-term accounts payable - other
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive
incomeValuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets－

8 －As of January 31, 2021

37,9751,035
44

38,3193,090
32

12,942

13,252

1,342
2,401
1,462
25,4894,913
87,606

1,378
1,028
661
25,982
4,522
88,26724
30,082
2,857
52,246
498
545
647
91
86,994
174,600

24
31,526
3,230
52,056
512
562
685
93
88,692
176,959

17,82919,324
82,599-2,009117,744

17,82919,324
83,352-2,009118,497

1,522

1,925

–

0

-126

190

-49

-48

1,346

2,067

7,097
126,188
300,789

7,370
127,936
304,895

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Three-Month Period Ended January 31)(Millions of yen)Three months ended
January 31, 2020Three months ended
January 31, 2021

45,431
32,166
13,2648,998
4,266

47,66033,661
13,99810,016
3,981

10
71
–
22
105
210

10
65
57
22
145
301

20
31
23
34
109
4,367

25
–
7
43
77
4,206

2

1

–

20

2

21

47

26

–

211

66

–

114
4,255
983
422
1,406
2,848

238
3,989
942
489
1,431
2,558

311

292

2,536

2,265

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Rental income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of shares of subsidiaries
and associates
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries
and associates
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners of parent－

9 －(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Three-Month Period Ended January 31)(Millions of yen)Three months ended
January 31, 2020Three months ended
January 31, 2021

2,848

2,558

124

403

-0
86

0
316

-30

2

179
3,027

722
3,280

2,723

2,986

304

294

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

－

10 －

(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(Note on Significant Changes to Shareholders’ Equity)
The Company had no material items to report.

－

11 －

(Segment Information)
I

First quarter of the prior consolidated fiscal year (From November 1, 2019 to January 31, 2020)
1. Information concerning the amount of net sales and income or loss by reporting segment(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)

40,934

4,497

45,431–––40,934

4,497

45,431

Net sales
Net sales to outside customers
Net sales or transfers between
related segments
Total

Total

Segment income
3,910
246
4,157
(Note) The “Other businesses” classification encompasses business segments not included in
the reporting segment, and includes business related to the Steel Sales Division andbusiness related to the Information Products Division, welfare-related business andother businesses.
2. Difference between total reporting segment income or loss and the amount reported on the Quarterly
Consolidated Statements of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
IncomeAmountReporting segment total

3,910

Income for “Other businesses” classification

246

Other adjustments

109

Operating profit reported on the Consolidated
Quarterly Statements of Income
3. Information concerning fixed asset impairment loss and goodwill by reporting segment
The Company had no material items to report.

－

12 －

4,266

II

First quarter of the current consolidated fiscal year (From November 1, 2020 to January 31, 2021)
1. Information concerning the amount of net sales and income or loss by reporting segment(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)

43,2994,360

47,660–––43,2994,360

47,660Net sales
Net sales to outside customers
Net sales or transfers between
related segments
Total
Segment income

Total

3,581
283
3,865
(Note) The “Other businesses” classification encompasses business segments not includedin the reporting segment, and includes business related to the Steel Sales Divisionand business related to the Information Products Division, welfare-related businessand other businesses.

2. Difference between total reporting segment income or loss and the amount reported on the Quarterly
Consolidated Statements of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
IncomeAmount3,581

Reporting segment total
Income for “Other businesses” classification

283

Other adjustments

116

Operating profit reported on the Consolidated
Quarterly Statements of Income

3,981

3. Information concerning fixed asset impairment loss and goodwill by reporting segment(Significant changes in amount of goodwill)In the reporting segment “Business related to the Construction Equipment Rental Division,” theamount of goodwill recognized was provisionally calculated due to the fact that the allocation of
acquisition costs for the business combination of KANAMOTO AUSTRALIA HOLDINGS PTY LTD in theprevious consolidated fiscal year had not been completed. However, amount of goodwill recognizedhas been revised because the allocation of acquisition costs was completed in the first quarter ofthe current consolidated fiscal year and the provisional accounting treatment was finalized.
As a result, the amount of goodwill was ¥2,227 million.

－

13 －