Fiscal Year ended October 31, 2021

Financial Statements Bulletin (Japan GAAP)
Listed Company Name
Company Code Number
Listing Exchanges
URL
Representative
Inquiries

December 10, 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 Regular General Meeting of the Shareholders
Scheduled date for commencement of dividend payments
Scheduled date for submission of Annual Securities Report
Preparation of Supplementary Explanatory Materials:
Earnings Briefings (For institutional investors and analysts):

January 27, 2022
January 28, 2022
January 27, 2022
Yes
Yes

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

1. Consolidated Operating Results for the Fiscal Year ended October 31, 2021
(November 1, 2020 – October 31, 2021)(1) Consolidated Operating Results(Percentages show the change from the prior year)

Net Sales

Operating Profit

Millions of yen%

Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Profit%

Millions of yen%

Millions of yen%

Fiscal year ended
October 31, 2021

189,416

5.8

14,624

2.6

15,391

7.9

8,907

5.2

Fiscal year ended
October 31, 2020

179,053-0.9

14,250-20.1

14,268

-21.9

8,466

-25.9

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

Earnings per
Share

11,174 (25.1%)
8,936 (-24.1%)

Earnings per
Share on a Fully
Diluted Basis

Ordinary Profit toTotal Assets

ROE

OperatingMargin

Yen

Yen

%

%

%

Fiscal year ended
October 31, 2021

235.55

–

7.2

5.1

7.7

Fiscal year ended
October 31, 2020

221.45

–

7.2

5.0

8.0

(Reference) Investment profit or loss accounted for by the equity method (millions of yen)
Fiscal year ended October 31, 2021
Fiscal year ended October 31, 2020
(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of October 31,
2021

303,754

134,91741.8

3,357.10

As of October 31,
2020

301,533

126,18839.5

3,150.30(Reference) Equity (millions of yen)
As of October 31, 2021
126,956
As of October 31, 2020
119,091(Note) In the fiscal year ended October 31, 2021, the Company finalized the provisional accounting treatment for businesscombinations, and the figures for the fiscal year ended October 31, 2020 reflect the finalized content of the provisional
accounting treatment.

 1

(3) Consolidated Cash FlowsNet Cash Provided by(Used in) Operating
Activities

Net Cash Provided by(Used in) Investing
Activities

Net Cash Provided by(Used in) Financing
Activities

Cash and Cash
Equivalents at End of
PeriodMillions of yen

Millions of yen

Millions of yen

Millions of yen

Fiscal year ended
October 31, 2021

39,351-3,373-28,794

55,557

Fiscal year ended
October 31, 2020

40,701-14,040-22,204

48,023

2. Dividends
Annual Dividends per Share
End offirstquarter

End ofsecondquarterYen

End ofthird
quarter

Yen

Year-end

Yen

Full-year

Yen

Dividends in
Dividend
Dividends on
Total
Payout Ratio
Net Assets(Full Year) (Consolidated) (Consolidated)

Yen Millions of yen%%

Fiscal year ended
October 31, 2020

–

25.00

–

40.00

65.00

2,468

29.4

2.1

Fiscal year ended
October 31, 2021

–

25.00

–

45.00

70.00

2,647

29.7

2.2

Fiscal year ending
October 31, 2022
(projected)

–

35.00

–

40.00

75.00

28.6

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2022
(November 1, 2021 - October 31, 2022)(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

95,500

–

8,200

1.0

8,300

-4.4

5,100

3.2

137.85Full year

191,100–

15,6006.7

15,800

2.7

9,700

8.9

262.19(Notes)1. As the Company will apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. from the
beginning of the fiscal year ending October 31, 2022, the above projected consolidated operating results are after theapplication of the said accounting standard. As a result, the percentages for net sales for the previous fiscal year and thesame period of the previous year are not shown.
2. At a meeting of the Board of Directors held on December 10, 2021, the Company resolved to acquire its own shares, andthe “Earnings per Share” in the projected consolidated operating results for the fiscal year ending October 31, 2022 takes
into account the impact of this acquisition of own shares. Please refer to “Material Events after the Close of theConsolidated Fiscal Year” on page 24 of the Attachments for more information on the acquisition.

 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(2) 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(3) Number of shares issued (common shares)(a) Number of shares outstanding at the end of the period (including treasury shares)
As of October 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 October 31, 2021:
924,846 shares
As of October 31, 2020:
939,142 shares(c) Average number of shares outstanding during the period
Fiscal year ended October 31, 2021:
37,813,895 sharesFiscal year ended October 31, 2020:
38,232,825 shares 3(Reference) Summary of Non-Consolidated Operating Results
1. Non-Consolidated Operating Results for the Fiscal Year Ended October 31, 2021
(November 1, 2020 – October 31, 2021)(1) Non-Consolidated Operating Results
Net Sales(Percentages show the change from the prior year)
Operating Profit

Millions of yen%

Millions of yen

Ordinary Profit%

Millions of yen

Profit%Millions of yen%

Fiscal year ended
October 31, 2021

117,687

-0.8

7,503

-8.2

8,471

-2.7

5,392

-7.9

Fiscal year ended
October 31, 2020

118,654

-2.7

8,170

-29.1

8,702

-30.1

5,856

-30.3

Earnings per Shareon a Fully Diluted Basis

Earnings per Share
Yen

Yen

Fiscal year ended
October 31, 2021

142.61–

Fiscal year ended
October 31, 2020

153.18–(2) Non-Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

Yen

As of October 31,
2021

229,544

107,48046.8

2,842.10

As of October 31,
2020

232,009103,80244.7

2,745.86(Reference) Equity (millions of yen)
As of October 31, 2021
As of October 31, 2020

107,480
103,802

2. Projected Non-Consolidated Operating Results for the Fiscal Year Ending October 31, 2022
(November 1, 2021 - October 31, 2022)(Percentages show the change from prior year)
Net Sales

Ordinary Profit

ProfitEarnings per Share

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Interim period

58,300

–

4,800

6.5

3,200

8.6

86.50

Full year

117,200

–

9,600

13.3

6,500

20.5

175.70(Notes)1. As the Company will apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. from the
beginning of the fiscal year ending October 31, 2022, the above projected consolidated operating results are after theapplication of the said accounting standard. As a result, the percentages for net sales for the previous fiscal year and thesame period of the previous year are not shown.
2. At a meeting of the Board of Directors held on December 10, 2021, the Company resolved to acquire its own shares, andthe “Earnings per Share” in the projected consolidated operating results for the fiscal year ending October 31, 2022 takes
into account the impact of this acquisition of own shares. Please refer to “Material Events after the Close of theConsolidated Fiscal Year” on page 24 of the Attachments for more information on the acquisition.

Note: Financial results reports are not required to be audited by certified public accountants or an audit
corporation.
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 to bereasonable. 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. Overview of Operating
Results and Others (4) Future Outlook” on page 9 of the Attachments for the conditions used asassumptions for the projected operating results and matters to note before using the projected
operating results.

 4

(Methods of obtaining the supplementary materials and the content of the earnings briefings)
The Company plans to hold an online meeting for institutional investors and analysts on Monday,
December 13, 2021. Following the meeting, the Company will upload the meeting highlights anddiscussion (voice recording) on the Company’s website as quickly as possible, together with the
Earnings Briefings materials used that day.

 5○Attachments Table of Contents
1. Overview of Operating Results and Others ....................................................................... 7(1) Overview of Operating Results and Others for the Fiscal Year Ended October 31, 2021 ······ 7(2) Overview of Financial Position for the Fiscal Year Ended October 31, 2021 ······················· 7(3) Overview of Cash Flows for the Fiscal Year Ended October 31, 2021································ 8(4) Future Outlook ········································································································· 9
2. Basic Policy Regarding Selection of Accounting Standards ................................................. 10
3. Consolidated Financial Statements and Significant Notes Thereto ....................................... 11(1) Consolidated Balance Sheets····················································································· 11(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income ·················································································································· 13(Consolidated Statements of Income) ···································································· 13(Consolidated Statements of Comprehensive Income) ············································· 14(3) Consolidated Statements of Changes in Equity ···························································· 15(4) Consolidated Statements of Cash Flows ······································································ 17(5) Notes to the Consolidated Financial Statements··························································· 20(Notes Relating to the Going Concern Assumption) ······················································ 20(Business Combinations) ·························································································· 20(Segment Information) ···························································································· 21(Per Share Information) ··························································································· 23(Material Events after the Close of the Consolidated Fiscal Year) ···································· 24

 6

1. Overview of Operating Results and Others(1) Overview of Operating Results and Others for the Fiscal Year Ended October 31, 2021
During the consolidated fiscal year under review, Japan’s economy continued to face difficult conditions,partly due to the prolonged spread of COVID-19. Also, in the global economy, while some countries andregions began to show signs of recovery, there were still significant concerns about sluggish economic
activity and stock market turmoil caused by COVID-19 and the situation remained unpredictable.
In the construction industry in which the Group is involved, public sector investment including activity
being carried out for Japan’s National Resilience Plan remained strong and private sector construction
investment has shown signs of picking up although the situation still requires monitoring as rising material
prices and the shortage of skilled construction workers are apparent.
In such circumstances, based on the three key measures of the Medium-Term Corporate Management
Plan “Creative 60” (FY2020-2024), the Group is promoting the strengthening of the Alliance Group’s
foundations and the expansion of its businesses in Japan and overseas. In addition, the Group is committed
to the sustainable development of the Group and the enhancement of corporate value through an asset
strategy that carefully assesses changes in the business environment as well as selection and concentration
to reinforce profitability.
Consequently, in the fiscal year ended October 31, 2021, the Group reported net sales of ¥189,416
million, up 5.8% compared with the prior year. Operating profit increased 2.6% from the prior year to¥14,624 million, ordinary profit increased 7.9% from the prior year to ¥15,391 million, and profit
attributable to owners of parent increased 5.2% from the prior year to ¥8,907 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, public sector investments
were firm, mainly in construction related to disaster recovery work and infrastructure-related
construction as well as disaster prevention-related construction, while private sector construction
investments varied by region although overall rental demand for construction equipment remained
steady.
In addition to promoting business alliances and M&As that can be expected to generate significant
synergies, the Group aims to strengthen its profitability by further improving operational efficiency
and productivity through focusing on measures such as ensuring the optimal ownership and model
mix of assets according to market conditions. As a result, sales by region in this business were up
6.7% in the Hokkaido Region, down 1.9% in the Tohoku Region, up 2.5% in the Kanto & Koushinetsu
Region, up 10.6% in the Nishi-nihon Region, and up 5.0% in the Kyushu & Okinawa Region.
Used construction equipment sales decreased 10.5% year on year, as Kanamoto has carried out theextension of the rental equipment operation period as planned at the beginning of the fiscal year.
Reflecting these factors, the Group posted net sales in the construction-related businesses of¥171,020 million, an increase of 6.3% year on year, and operating profit of ¥13,043 million, an
increase of 1.5%.
< Other businesses >In the Group’s other businesses, net sales increased by 0.9% year on year to ¥18,395 million andoperating profit increased by 14.5% to ¥1,110 million, as the business related to the Steel Sales
Division as well as the business related to the Information Products Division and welfare-related
business performed well.
(2) Overview of Financial Position for the Fiscal Year Ended October 31, 2021
With regard to the business combinations with SOOKI HOLDINGS Co., Ltd. conducted on September 30,
2020, and KANAMOTO AUSTRALIA HOLDINGS PTY LTD conducted on October 15, 2020, althoughprovisional accounting treatment was carried out in the previous consolidated fiscal year, it was finalized 7

in the fiscal year under review. As a result 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
consolidated financial statements for the fiscal year under review. In the comparison and analysis with theend of the previous fiscal year, the figures after the revision of the initial allocation of acquisition costs dueto the finalization of the provisional accounting treatment have been used.
(Assets)
Total assets at the end of the consolidated fiscal year under review stood at ¥303,754 million, an increaseof ¥2,221 million compared with the end of the prior consolidated fiscal year. This was primarily due to a
¥7,529 million increase in cash and deposits, while notes and accounts receivable - trade decreased by¥2,145 million, and rental equipment decreased by ¥3,261 million.
(Liabilities)
Total liabilities were ¥168,837 million, a decrease of ¥6,507 million compared with the end of the priorconsolidated fiscal year. This was primarily due to a ¥1,377 million increase in long-term borrowings, while
long-term accounts payable - other decreased by ¥7,760 million.
(Net assets)
Total net assets totaled ¥134,917 million, ¥8,728 million higher than at the end of the prior consolidated
fiscal year. This mainly reflects the posting of profit attributable to owners of parent of ¥8,907 million.
Meanwhile, there was a decrease of ¥2,457 million due to dividends of surplus.
(3) Overview of Cash Flows for the Fiscal Year Ended October 31, 2021
(Millions of yen)
FY Ended October 2020
(Prior consolidated fiscal
year)

FY Ended October 2021
(Consolidated fiscal year
under review)

Change from prior year

Net cash provided by (used in)operating activities

40,70139,351-1,349Net cash provided by (used in) investing
activities-14,040-3,373

10,666

Net cash provided by (used in) financing
activities-22,204-28,794-6,589Net increase (decrease) in cash andcash equivalents

4,473

7,274

2,801

Cash and cash equivalents at beginningof period

43,511

48,023

4,511

Cash and cash equivalents at end of
period48,02355,557

7,534

The balance of cash and cash equivalents (“cash”) at the end of the consolidated fiscal year underreview was ¥55,557 million, an increase of ¥7,534 million compared with the end of the priorconsolidated fiscal year. Cash flows for the consolidated fiscal year under review are discussed below.
(Net cash provided by (used in) operating activities)
Cash generated from operating activities stood at ¥39,351 million, a decrease of 3.3% from theprior consolidated fiscal year. This was primarily attributable to the following: profit before income
taxes of ¥14,747 million, depreciation of ¥31,064 million, as well as purchase of rental equipment of¥5,424 million, and income taxes paid of ¥4,742 million.
(Net cash provided by (used in) investing activities)
Cash used in investing activities was ¥3,373 million, compared with ¥14,040 million used in theprior consolidated fiscal year. This mainly reflected the posting of ¥3,528 million for purchase ofproperty, plant and equipment.
(Net cash provided by (used in) financing activities)
Cash used in financing activities was ¥28,794 million, compared with ¥22,204 million used in theprior consolidated fiscal year. This mainly reflected proceeds from long-term borrowings of ¥14,980
 8



million, repayments of long-term borrowings of ¥14,415 million, repayments of installment payablesof ¥25,331 million, and dividends paid of ¥2,454 million.
(Reference) Trends in Cash Flow Indicators
FY Ended October FY Ended October FY Ended October FY Ended October
2018
2019
2020
2021
Equity ratio (%)

39.6

43.1

39.5

41.8

Equity ratio on a market capitalizationbasis (%)

55.2

42.1

26.9

30.3

Ratio of interest-bearing liabilities tooperating cash flow (year)

2.7

2.5

3.0

2.9

Interest coverage ratio (times)

83.9

104.6

74.3

54.1

(Notes) 1. Equity ratio:
Equity / Total assets
Equity ratio on a market capitalization basis:
Shareholders’ equity on a market capitalization basis / Total assets
Ratio of interest-bearing liabilities to operating cash flow:
Interest-bearing liabilities / Cash flows from operating activities
Interest coverage ratio: Cash flows from operating activities / Interest payments* All indicators are calculated using financial values on a consolidated basis.
* Total market capitalization is calculated by multiplying the closing share price at the end of the
fiscal year by the number of shares outstanding (after deducting treasury shares) at the end of
the fiscal year.
* Cash flows from operating activities in the consolidated statements of cash flows are used for
operating cash flow in the table above. Interest-bearing liabilities include all liabilities posted tothe consolidated balance sheets that incur interest. Interest expenses in the consolidated
statements of cash flows are used for interest payments in the table above.
2. In the fiscal year ended October 31, 2021, the Company finalized the provisional accounting
treatment for business combinations, and the indicators for the fiscal year ended October 31,
2020 reflect the finalized content of the provisional accounting treatment.
(4) Future Outlook
Regarding the outlook for the next fiscal year, public sector investment is expected to remain steady,and private sector construction investment is also expected to continue at a moderate pace of recovery,
despite lingering uncertainty about the future. However, the situation is expected to continue to requiremonitoring due to the emergence of new COVID-19 variants and concerns about cost increases caused bysoaring material prices.
In such circumstances, to achieve the goals of its Medium-Term Corporate Management Plan “Creative60” (FY2020-2024), the Group will strive to strengthen its ability to respond to the fields of maintenanceand repair of social infrastructure and renewable energy, where further priority investment is expected,
based on the promotion of three key measures: expansion of domestic bases for operations, overseas
expansion, and optimization of internal operations. In addition, while reinforcing local regions anddeepening area collaboration by utilizing the sales base the Group has built up, we will promote
construction DX that contributes to labor savings and improved safety at construction sites through ICT
construction and autopilot, etc., and strive for sustainable development and the enhancement of corporate
value.
Through the above measures, for the fiscal year ending October 31, 2022, the Kanamoto Group aims
for net sales of ¥191.1 billion, operating profit of ¥15.6 billion, a growth of 6.7%, ordinary profit of ¥15.8
billion, a growth of 2.7%, and profit attributable to owners of parent of ¥9.7 billion, a growth of 8.9%.
Since the Company will apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29) and relevant ASBJ regulations from the beginning of the fiscal year ending October 31, 2022, theprojected consolidated operating results are the amounts after the application of the said accounting
standard and relevant ASBJ regulations. As a result, year-on-year comparisons of net sales are not shown.
 9

2. Basic Policy Regarding Selection of Accounting Standards
The Kanamoto Group plans to prepare its consolidated financial statements in accordance with generally
accepted accounting practices in Japan, taking into account comparability of consolidated financial
statements between different accounting periods and against different companies.
Note that it is the policy of the Kanamoto Group to adopt the international financial reporting standards
depending on conditions and trends in Japan and abroad.

 10



3. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheets(Millions of yen)
As of October 31, 2020

As of October 31, 2021

48,56341,45156,09339,305

6,166

7,319

1,205

1,666

148

82

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

1,375
18,055
3,123-269
126,751

254,532-153,225
101,307
39,804-23,293
16,5109,619-8,025262,239-164,193
98,046
42,680-24,656
18,024
9,764-8,141

1,593

1,623

37,421
4,143-2,054
2,088
158,92137,684
2,899-2,143756
156,135

4,636
2,732
7,368

4,111
2,792
6,904

8,974
2,377
3,557
-618
14,291
180,581
301,533

9,249
2,175
3,046
-507
13,963177,003
303,754

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 and vehicles,
net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
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

 11



(Millions of yen)
As of October 31, 2020

As of October 31, 2021

37,975
1,035
44
12,942
1,342
2,401
1,462
25,4894,913
87,60637,082960
24
13,055
1,269
2,681
1,548
24,545
6,063
87,23024
30,082
2,857
52,246
498
545
1,392
91
87,738
175,345–
31,4602,888
44,486
566
588
1,501
115
81,607
168,837

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

17,82919,32689,048-1,978124,226

1,522

2,249

–
-126
-49

0
541
-60

1,346

2,729

7,097
126,188
301,533

7,960
134,917
303,754

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
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 income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

 12



(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
October 31, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income
Insurance claim income
Temporary transfer charges income
Foreign exchange gains
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on cancellation of leases
Waste disposal costs
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries andassociates
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current
assetsLoss on valuation of investment securities
Loss on valuation of shares of subsidiaries
and associates
Loss on extinguishment of tie-in shares
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

 13



Fiscal year ended
October 31, 2021

179,053
127,925
51,12836,877
14,250189,416
133,81255,60440,97914,624

44
170
86
77
91
–
28
241
740

46
159
83
357
69
97
25
300
1,140

82
75
60
10
340
153
722
14,268

102
–
27
41
–
201
372
15,391

17

21

–

20

12
30

18
59

206

275

171

172

188

174

–
567
13,731
4,785
-381
4,403
9,327
860
8,466

81
703
14,747
5,145
-190
4,954
9,793
885
8,907

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
October 31, 2020
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 to noncontrolling interests

 14



Fiscal year ended
October 31, 2021

9,327

9,793

-397

727

-0
66

0
667

-60

-14

-391
8,936

1,381
11,174

8,089

10,290846884

(3) Consolidated Statements of Changes in Equity
Prior consolidated fiscal year (From November 1, 2019 to October 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginningof period

Retainedearnings

Capital surplus

17,82919,324

Total
shareholders’equityTreasury shares

76,638-9113,783

Changes during period
Dividends ofsurplusProfit attributableto owners of parent
Change inownership interestof parent due totransactions with
non-controllinginterests
Purchase oftreasury shares
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period-2,505-2,505

8,466

8,466

-0

-0

-2,000-2,000

–

-0

5,960

-2,0003,960

17,82919,324

82,599-2,009117,744

Accumulated other comprehensive income

Balance at beginningof period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasure-ments ofdefinedbenefit
plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

1,918

0

-192

-2

1,723

6,272

Total net
assets121,779

Changes during period
Dividends ofsurplusProfit attributableto owners of parent
Change inownership interestof parent due totransactions with
non-controllinginterests
Purchase oftreasury shares
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period–-2,505

–

8,466

–

-0

–

-2,000

-395

-0

66

-46

-376

825

448

-395

-0

66

-46

-376

825

4,409

1,522

–

-126

-49

1,346

7,097

126,188 15

Current consolidated fiscal year (From November 1, 2020 to October 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginningof period

Retainedearnings

Capital surplus

17,82919,324

Total
shareholders’equityTreasury shares

82,599-2,009117,744

Changes during period
Dividends ofsurplusProfit attributableto owners of parent
Purchase oftreasury shares
Restricted stockcompensation
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period-2,457-2,457

8,907

8,907

2

-0

-0

31

33

–

2

6,449

30

6,482

17,82919,32689,048-1,978124,226

Accumulated other comprehensive income

Balance at beginningof period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasure-ments ofdefinedbenefit
plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

1,522

–

-126

-49

1,346

7,097

Total net
assets126,188

Changes during period
Dividends ofsurplusProfit attributableto owners of parent
Purchase oftreasury shares
Restricted stockcompensation
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period–-2,457

–

8,907

–

-0

–

33

726

0

667

-10

1,383

863

2,246

726

0

667

-10

1,383

863

8,728

2,249

0

541

-60

2,729

7,960

134,917 16(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
October 31, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sale and retirement of noncurrent assets
Cost transfer resulting from sale of rental
equipment
Purchase of construction equipment andmaterials
Purchase of rental equipment
Loss (gain) on valuation of investment
securities
Loss on valuation of shares of subsidiaries
and associates
Loss (gain) on extinguishment of tie-insharesLoss (gain) on sale of shares of subsidiaries
and associates
Increase (decrease) in allowance for
doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Assets buy on the installment plan purchase
payment interest for rentals
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating
activities

 17



Fiscal year ended
October 31, 2021

13,731
28,896176

14,74731,064
648

188

254

744

793

-1,743-968-4,124-5,424

171

172

188

174

–

81

–

-20

227

-76

88

70

8

47

-215

-206

472

622

82
80
51
-558
3,891

102
-95
1,242
-513
-1,237

3,679

1,886

1,773
47,810207-548-6,7681,252
44,619202-727-4,74240,70139,351

(Millions of yen)
Fiscal year ended
October 31, 2020
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Proceeds from sale of intangible assets
Purchase of shares of subsidiaries resulting
in change in scope of consolidation
Purchase of shares of subsidiaries
Purchase of shares of subsidiaries andassociates
Proceeds from sale of shares of subsidiaries
and associates
Loan advances
Proceeds from collection of loans receivableCollection of long-term accounts receivableother
Other, net
Net cash provided by (used in) investing
activities

 18



Fiscal year ended
October 31, 2021

-430
430
-9
25
-3,211

-757
763
-9
32
-3,528

20

95

-341
–

-562
12

-9,821

–

-532

-8

-133

–

–

22

-398
376

-14
177

140

186

-155

216

-14,040-3,373

(Millions of yen)
Fiscal year ended
October 31, 2020
Cash flows from financing activities
Redemption of bonds
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of installment payables
Repayments of lease obligations
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodIncrease in cash and cash equivalents
resulting from merger with unconsolidated
subsidiaries
Cash and cash equivalents at end of period

 19



Fiscal year ended
October 31, 2021
–

-44

-85

-75

23,270-12,425-27,294-1,143-2,000-2,504-20-0

14,980-14,415-25,331-1,432-0-2,454-20–-22,204-28,794

16

90

4,473

7,274

43,511

48,02338

260

48,02355,557

(5) Notes to the Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(Business Combinations)Finalization of the provisional accounting treatment for business combinations(SOOKI HOLDINGS Co., Ltd.)With regard to the business combination with SOOKI HOLDINGS Co., Ltd. conducted on September 30,
2020, although provisional accounting treatment was carried out in the previous consolidated fiscal year, it
was finalized in the fiscal year under review. Due to the finalization of the provisional accounting treatment,
the comparative information included in the consolidated financial statements for the fiscal year underreview reflects a significant revision in the initial allocation of acquisition costs, and a portion of the amountrecorded as goodwill has been reclassified.
As a result, the provisionally calculated amount of goodwill of ¥4,325 million decreased by ¥1,800 million
to ¥2,524 million due to the allocation of ¥2,749 million to property, plant and equipment and ¥948 million
to deferred tax liabilities.
(KANAMOTO AUSTRALIA HOLDINGS PTY LTD)
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 fiscal year under review. Due to the finalization of the provisional accounting
treatment, the comparative information included in the consolidated financial statements for the fiscal year
under review reflects a significant revision in the initial allocation of acquisition costs, and a portion of theamount recorded as goodwill has been reclassified.
As a result, the provisionally calculated amount of goodwill of ¥3,114 million decreased by ¥1,062 million
to ¥2,052 million due to the allocation of ¥7 million to property, plant and equipment, ¥1,276 million tointangible assets and ¥222 million to deferred tax liabilities.

 20



(Segment Information)
1. Summary of reporting segments
The Company’s reporting segments are those units of the Company’s for which discrete financial
information is available and for which the Board of Directors regularly conducts a review for the
purpose of making decisions about resources to be allocated to the segments and assess the segments’performance.
The Company conducts business operations by product and service. The “business related to theConstruction Equipment Rental Division” is the reporting segment.
The Company’s “business related to the Construction Equipment Rental Division” rents and sells
construction equipment and temporary materials for construction use.
2. Method of calculating the amount of net sales, income or loss, assets, liabilities and other items ofeach reporting segment
Except for the Standard for Measurement of Inventories, the accounting standards and methods forthe reported business segment comply with accounting standards that have been adopted in preparing
the consolidated financial statements.
The Company values inventory assets using prices before write-downs of book value based on
decline in profitability.
Reporting segment earnings are the values on an operating profit basis.
3. Information concerning the amount of net sales, income or loss, assets, liabilities and other items ofeach reporting segment
Prior consolidated fiscal year (From November 1, 2019 to October 31, 2020)(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)Total

Net sales
Net sales to outside customers

160,826

18,226

179,053–––

160,826

18,226

179,053

Net sales or transfers between related
segments
Total
Segment income

12,852969

13,822

Segment assets

235,7198,169

243,888

27,222

1,255

28,478

110

66

176

48,275

1,594

49,869Other items
Depreciation
Amortization of goodwill
Amount of increase of property, plantand equipment and intangible assets(Note) The “Other businesses” classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division and business related to the
Information Products Division, welfare-related business and other businesses.

 21



Current consolidated fiscal year (From November 1, 2020 to October 31, 2021)(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)Total

Net sales
Net sales to outside customers

171,020

18,395

189,416–––

Net sales or transfers between related
segments

171,020

18,395

189,416

Segment income

Total

13,043

1,110

14,153

Segment assets

233,729

8,988

242,718

29,396

1,211

30,607

620

27

648

25,141

1,360

26,501Other items
Depreciation
Amortization of goodwill
Amount of increase of property, plantand equipment and intangible assets(Note) The “Other businesses” classification encompasses business segments not included in the reporting
segment, and includes business related to the Steel Sales Division and business related to the
Information Products Division, welfare-related business and other businesses.
4. Difference between total reporting segment amount and the amount reported on the consolidated
financial statements, and the main reasons for the difference (Matters Pertaining to Reconciliation ofDifference)(Millions of yen)
Prior consolidated
fiscal year

Net sales

Current consolidated
fiscal year

Reporting segment total

160,826

171,020

Net sales for “Other businesses” classification

18,226

18,395––

179,053

189,416

Intersegment eliminations
Net sales reported in the consolidated financial statements(Millions of yen)
Prior consolidated
fiscal year

IncomeReporting segment total

Current consolidated
fiscal year

12,852

13,043

Income for “Other businesses” classification

969

1,110

Other adjustments

428

471

14,25014,624

Operating profit reported in the consolidated financial
statements(Millions of yen)
Prior consolidated
fiscal year

AssetsReporting segment total

Current consolidated
fiscal year

235,719

233,729

Assets of “Other businesses” classification

8,169

8,988

Company assets (Note)

56,47461,036

Total assets reported in the consolidated financial
statements

300,362

303,754 22

(Note) Company assets are mainly assets used in administrative divisions at the parent company that are
not attributable to the reporting segment.
(Millions of yen)
Reporting segment total
Other items

Other businesses

Amount of adjustment

Amount reported in the
consolidated financial
statements

Prior
Current
Prior
Current
Prior
Current
Prior
Current
consolidated consolidated consolidated consolidated consolidated consolidated consolidated consolidated
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year
fiscal year

Depreciation

27,22229,396

1,255

1,211

418

456

28,896

31,064

Amount of increase ofproperty, plant andequipment andintangible assets

48,27525,141

1,594

1,360

404

158

50,27426,659(Note) The adjustments to the increases in property, plant and equipment and intangible assets are capital
investments related to administrative divisions.
(Per Share Information)
Prior consolidated fiscal year
(From November 1, 2019 to October 31, 2020)

Current consolidated fiscal year
(From November 1, 2020 to October 31, 2021)

Net assets per share¥3,150.30 Net assets per share¥3,357.10

Earnings per share¥221.45 Earnings per share¥235.55

Earnings per share on a fully diluted
basis

–

Earnings per share on a fully diluted
basis

The Company has not reported earnings per shareon a fully diluted basis because it does not have any
potential shares that would have a dilution effect.

–

Same as at left

(Note) The basis for calculating earnings per share is as follows.
(Millions of yen, unless otherwise noted)
Prior consolidated fiscal year
(From November 1, 2019 to
October 31, 2020)
Profit attributable to owners of parent
Amount not attributed to commonshare shareholders
Profit attributable to owners of parent
related to common shares
Average number of shares
outstanding during the fiscal year
(Shares) 23Current consolidated fiscal year
(From November 1, 2020 to
October 31, 2021)

8,466

8,907

–

–

8,466

8,907

38,232,825

37,813,895

(Material Events after the Close of the Consolidated Fiscal Year)At a Meeting of the Board of Directors held on December 10, 2021, based on the provisions of Article
156 of the Companies Act, as applied by replacing the relevant terms pursuant to the provisions of Article
165, paragraph (3) of the same Act, the Company resolved matters relating to the purchase of treasury
shares as follows.
(i) Reason of purchase of treasury shares
Return to shareholders(ii) Details of matters relating to purchase
1. Type of shares to be purchased
2. Total number of shares to be purchased
3. Acquisition period
4. Total acquisition price of shares to be purchased
5. Acquisition method

 24Common shares of the Company
1,200,000 shares (maximum)
December 13, 2021 - April 21, 2022
¥2,000,000,000 (maximum)
Purchase by stock exchange market