Six-Month Consolidated Financial Reportfor the Fiscal Year Ending October 31, 2024 (Japan GAAP)
Listed Company Name
Company Code Number
Listing Exchanges
URL
Representative
Inquiries

June 7, 2024
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 (For institutional investors and analysts)

June 13, 2024
July 2, 2024
Yes
Yes

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

1.

Consolidated Operating Results for the Six-Month Period of the Fiscal Year Ending October
31, 2024(November 1, 2023 – April 30, 2024)(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, 2024:
Second quarter

100,681

3.5

6,188

16.2

6,456

17.6

3,623

23.9

Fiscal year ended
October 31, 2023:
Second quarter

97,268

3.8

5,327

-24.9

5,488

-26.4

2,924

-35.6

(Note) Comprehensive income (millions of yen)
Fiscal year ending October 31, 2024, Second quarter
Fiscal year ended October 31, 2023, Second quarter

Earnings per
Share5,111 (65.0%)
3,097 (-50.7%)

Earnings per
Share on a Fully
Diluted Basis

Yen

Yen

Fiscal year ending
October 31, 2024:
Second quarter

101.50–Fiscal year ended
October 31, 2023:
Second quarter

80.23

–

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of April 30,
2024

315,149

145,324

43.1

As of October 31,
2023

316,440

143,677

42.5(Reference) Equity (millions of yen)
As of April 30, 2024
As of October 31, 2023

135,702
134,495

 1 

2.

Dividends
Annual Dividends per Share
End offirst quarterEnd ofsecond quarter

Yen

End ofthird quarter

Yen

Fiscal year ended October 31,
2023

–

35.00

Fiscal year ending October 31,
2024

–

35.00

Year-end

Yen

Fiscal year ending October 31,
2024 (projected)

Full-year
Yen

Yen

–

40.00

75.00

–

40.00

75.00

(Note) Has the Company revised its most recently released dividend projection?: No3.

Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2024
(November 1, 2023 – October 31, 2024)(Percentages show the change from the prior year)
Net Sales
Millions of yen

Full year

205,300

Operating Profit% Millions of yen

4.0

14,100

Profit Attributable to
Owners of Parent

Ordinary Profit% Millions of yen

17.9

14,300% Millions of yen

14.5

8,300

Earnings per
Share

%

23.5

Yen

232.52(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(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 issued at the end of the period (including treasury shares)
As of April 30, 2024:
38,742,241 shares
As of October 31, 2023:
38,742,241 shares(b) Number of treasury shares at the end of the period
As of April 30, 2024:
3,402,310 shares
As of October 31, 2023:
2,681,810 shares(c) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Fiscal year ending October 31, 2024: Second quarter:
35,696,449 sharesFiscal year ended October 31, 2023: Second quarter:
36,450,921 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 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. Qualitative Information
Concerning Quarterly Consolidated Operating Results (3) Explanation Concerning Future Forecasts
Including Projected Consolidated Operating Results” on page 6 of the Attachments for the conditions
used as assumptions for the projected operating results and matters to note before using the projected
operating results.
(Methods of obtaining the quarterly settlement supplementary explanatory materials and the content
of the quarterly earnings briefings)
The Company plans to hold an online meeting for institutional investors and analysts on Monday, June
10, 2024.
Following the meeting, the Company will upload a video of the meeting on the Company’s website as
quickly as possible, together with the quarterly earnings briefings materials used that day.

 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 ............................................5(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) ...................................................................9(Consolidated Six-Month Period Ended April 30) ................................................................9(Quarterly Consolidated Statements of Comprehensive Income) ........................................... 10(Consolidated Six-Month Period Ended April 30) .............................................................. 10(3) Quarterly Consolidated Statements of Cash Flows .................................................................. 11(4) Notes Concerning Quarterly Consolidated Financial Statements ............................................... 13(Notes Relating to the Going Concern Assumption) ............................................................. 13(Note on Significant Changes to Shareholders’ Equity)......................................................... 13(Segment Information) .................................................................................................... 13(Material Events after the Close of the Period) .................................................................... 14

 4 

1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results
During the six-month period under review, Japan’s economy showed signs of gradual recovery due toan improved employment and income environment and the effects of various policies. However, theoutlook remained uncertain due to a need to watch downside risks from overseas economies, such as
global monetary tightening and concerns over the Chinese economy, the effects of yen depreciation andrising prices, the situation in the Middle East region and financial and capital market fluctuations.
In the construction industry in which the Group is involved, public sector investment is expected toremain strong and private investment is expected to continue to pick up in the area of capital investment.
However, on the supply side, the situation remained unpredictable due to such concerns as persistently
high prices for construction materials and energy, rising labor costs, tightening of labor regulations, andthe ongoing shortage of workers.
In such circumstances, as the Medium-Term Corporate Management Plan “Creative 60” (FY2020-2024)
enters its final year, the Group focused on establishing a structure to form the foundation for the next
Medium-Term Corporate Management Plan. At the same time, the Company has been working to create
lasting corporate value by improving its profit structure through optimization of rental unit prices andproactively implementing appropriate allocation of rental equipment after ascertaining trends in demand.
For the six-month period under review, the Group reported net sales of ¥100,681 million, an increase of
3.5% year on year. On the earnings front, operating profit was ¥6,188 million, an increase of 16.2% year
on year, ordinary profit was ¥6,456 million, an increase of 17.6% year on year, and profit attributable toowners of parent was ¥3,623 million, an increase of 23.9% year on year.
Operating 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, domestic construction
investment remained steady, and although there were differences by region, the strength in rental demandfor construction equipment returned overall.
In addition to developing and introducing technology that can be applied to labor-saving, efficiency andsafety measures at sites, environmental measures, etc., the Group also promoted the establishment of asystem to strengthen its ability to respond to frequent natural disasters and various large-scale projects.
Used construction equipment sales increased 2.6% year on year, as Kanamoto proceeded with sales inaccordance with the initial plan in order to maintain an appropriate asset mix while carrying out theextension of the rental equipment operation period.
Reflecting these factors, the Group posted net sales in the construction-related businesses of ¥90,815
million, an increase of 2.9% year on year, and operating profit of ¥5,450 million, an increase of 20.9%
year on year.
< Other businesses >In the Group’s other businesses, net sales was ¥9,866 million, an increase of 9.4% year on year, andoperating profit was ¥473 million, a decrease of 16.0% year on year, as the business related to the SteelSales Division as well as the business related to the Information Products Division and welfare-related
business performed favorably.
(2) Qualitative Information Concerning Consolidated Financial Position(i) Assets, liabilities, and net assets
Total assets at the end of the second quarter under review stood at ¥315,149 million, a decrease of¥1,291 million compared with the end of the prior fiscal year. This was primarily due to decreases of¥4,245 million in notes and accounts receivable - trade, and contract assets and ¥2,764 million inelectronically recorded monetary claims - operating while cash and deposits increased by ¥5,172 million.
 5 

Total liabilities stood at ¥169,825 million, a decrease of ¥2,938 million compared with the end of theprior fiscal year. This was primarily due to a decrease of ¥2,472 million in notes and accounts payable trade.
Total net assets stood at ¥145,324 million, an increase of ¥1,647 million compared with the end of theprior fiscal year. This mainly reflects the posting of profit attributable to owners of parent of ¥3,623 million.
Meanwhile, there were decreases of ¥2,000 million due to purchase of treasury shares and ¥1,442 million
due to dividends of surplus.
As a result, equity ratio was 43.1% compared with 42.5% at the end of the prior fiscal year.
(ii) Cash flows
Cash and cash equivalents (“cash”) at the end of the six-month period under review increased by ¥5,172
million compared with the end of the prior fiscal year to ¥50,266 million. Cash flows for the six-month
period under review are discussed below.
(Net cash provided by (used in) operating activities)
Cash provided by operating activities stood at ¥23,810 million, a decrease of 9.1% from the same periodof the prior fiscal year. This was primarily attributable to the following: profit before income taxes of ¥6,395
million, depreciation of ¥17,768 million, and decrease (increase) in trade receivables and contract assetsof ¥7,051 million, as well as purchase of rental equipment of ¥2,790 million, increase (decrease) in trade
payables of ¥2,735 million, and income taxes paid of ¥2,384 million.
(Net cash provided by (used in) investing activities)
Cash used in investing activities was ¥1,032 million, compared with ¥2,560 million used in the same
period of the prior fiscal year. This mainly reflected the posting of ¥1,120 million for purchase of property,
plant and equipment.
(Net cash provided by (used in) financing activities)
Cash used in financing activities was ¥17,655 million, compared with ¥17,234 million used in the same
period of the prior fiscal year. This mainly reflected proceeds from long-term borrowings of ¥7,500 million,
repayments of installment payables of ¥12,905 million, repayments of long-term borrowings of ¥8,029
million, purchase of treasury shares of ¥2,000 million, and dividends paid of ¥1,441 million.
(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, 2023 (Japan GAAP) on December 8, 2023.

 6 

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of October 31, 2023

As of April 30, 2024

45,61150,78441,04836,803

11,474

8,710

1,442
1,574
15,962
3,453-269
120,298

2,131
1,723
15,7282,742-162
118,461

308,318-197,632
110,685
47,935-27,522
20,413
10,550-8,798315,356-204,075
111,281
48,540-28,237
20,303
10,795-8,967

1,752

1,827

39,511
4,091-2,476
1,614
173,977

39,526
3,944-2,567
1,377
174,315

3,163
1,244
1,369
5,778

2,881
1,228
1,276
5,386

10,637
2,013
1,702
2,508
-476
16,386
196,141
316,440

11,756
1,471
1,687
2,534
-462
16,986
196,688
315,149

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade,and contract assets
Electronically recorded monetary claims operating
Merchandise and finished goods
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
Customer relationship
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Long-term loans receivable
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets 7 

(Millions of yen)
As of October 31, 2023

As of April 30, 2024

36,077900
14,600
1,645
2,657
1,676
26,075
3,992
87,62433,604850
15,622
1,679
2,503
1,700
24,771
4,003
84,73635,796
3,626
42,324
354
686
2,288
60
85,139172,763

36,743
3,763
41,246
337
723
2,243
31
85,089169,825

17,82919,432
97,842-5,906
129,198

17,82919,400100,023-7,906
129,348

2,983

3,778

0
2,343
-30

0
2,603
-28

5,296

6,354

9,181
143,677
316,440

9,622
145,324
315,149

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses
Accounts payable - other
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
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 8 

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Six-Month Period Ended April 30)(Millions of yen)Six months endedApril 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Insurance fee income
Rental income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries andassociates
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current
assetsTotal 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

 9 

Six months endedApril 30, 2024

97,26869,79427,47322,145
5,327

100,681
71,95728,724
22,535
6,188

31
86
29
40
–
204
391

44
94
29
37
62
241
509

57
17
155
230
5,488

74
22
145
242
6,456

19

18

0

1

56
76

–
20

184

81

184
5,380
1,925
88
2,014
3,366
441
2,924

81
6,395
2,237
112
2,350
4,044
421
3,623

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Six-Month Period Ended April 30)(Millions of yen)Six months endedApril 30, 2023
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

 10 

Six months endedApril 30, 2024

3,366

4,044

277

802

–
-549

0
260

3

3

-268
3,097

1,066
5,111

2,649

4,680

448

430

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six months endedApril 30, 2023

Six months endedApril 30, 2024

5,380
16,850323

6,395
17,768
321

165

63

443

865

-728

-1,585-2,232-2,790

-56

–

-0

-1

-88

-121

94

24

2

-11

-117

-138

315

333

57
20

74
-65

-284

7,051

-399
6,848

-833
-2,735

751

617

730
28,07696-374-1,606

1,266
26,498107-412-2,384

26,192

23,810Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sale and retirement of
non-current assets
Cost transfer resulting from sale of rental
equipment
Purchase of construction equipment andmaterials
Purchase of rental equipment
Loss (gain) on sale of investment
securities
Loss (gain) on sale of shares ofsubsidiaries and associates
Increase (decrease) in allowance for
doubtful accounts
Increase (decrease) in provision forbonuses
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Assets buy on the installment planpurchase payment interest for rentals
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in trade receivables
and contract assets
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 11 

(Millions of yen)Six months endedApril 30, 2023

Six months endedApril 30, 2024

-279

-239

279

239

-2,249-1,120

28

36

-160
-13

-92
-4

144

–

16

37

-400

-0

58

198

15

-88

-2,560-1,032

–

-50

7,445
-7,722-12,609-770-1,9997,500-8,029-12,905-706-2,000-78–-1,476-1,441-22-21-17,234-17,655

-79

50

6,317

5,172

47,04745,093731–

54,09650,266

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time
deposits
Purchase of property, plant andequipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment
securities
Proceeds from sale of shares ofsubsidiaries and associates
Loan advances
Proceeds from collection of loans
receivable
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of installment payables
Repayments of lease liabilities
Purchase of treasury shares
Purchase of shares of subsidiaries not
resulting in change in scope of
consolidation
Dividends paid
Dividends paid to non-controllinginterests
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 inclusion of subsidiaries in
consolidation
Cash and cash equivalents at end of period

 12 

(4) 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 repurchased 720,400 shares of treasury shares in accordance with the resolution of themeeting of the Board of Directors held on December 8, 2023. As a result, treasury shares increased by¥2,000 million during the six-month period ended April 30, 2024, resulting in ¥7,906 million as of April 30,
2024.
(Segment Information)I
Six-month period ended April 30, 2023 (From November 1, 2022 to April 30, 2023)
1.

Information concerning the amount of net sales and income or loss by reporting segment, andinformation on disaggregation of revenue(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)

62,343

3,841

66,184

18,4404,539

22,980

7,419

638

8,058

88,203

9,019

97,223Total

Net sales
Rental contracts
Sales of merchandise andfinished goods
Other
Revenue from contracts withcustomers
Other revenues

45

–

45

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

88,248

9,019

97,268

–

–

–

Total

88,248

9,019

97,268

4,507

564

5,071

Segment income(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 Statement of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
IncomeAmountReporting segment total

4,507

Income for “Other businesses” classification

564

Other adjustments

256

Operating profit reported on the Quarterly
Consolidated Statement of Income 13 

5,327

II

Six-month period ended April 30, 2024 (From November 1, 2023 to April 30, 2024)
1.

Information concerning the amount of net sales and income or loss by reporting segment, andinformation on disaggregation of revenue(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)Total

Net sales
Rental contracts
Sales of merchandise andfinished goods
Other
Revenue from contracts withcustomers
Other revenues

64,217

3,993

68,211

19,491

5,597

25,088

7,062

275

7,338

90,771

9,866

100,638

43–

43

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

90,815

9,866

100,681

–

–

–

Total

90,815

9,866

100,681

5,450

473

5,924

Segment income(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 Statement of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
IncomeAmountReporting segment total

5,450

Income for “Other businesses” classification

473

Other adjustments

264

Operating profit reported on the Quarterly
Consolidated Statement of Income(Material Events after the Close of the Period)
The Company had no material items to report.

 14 

6,188