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

June 4, 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 (For institutional investors and analysts)

June 11, 2021
July 2, 2021
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,
2021(November 1, 2020 – April 30, 2021)(1) Consolidated Operating Results (Cumulative)(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%

Fiscal year ending
October 31, 2021:
Second quarter

95,225

4.2

8,118

-12.1

8,683

-4.0

4,943

-7.5

Fiscal year ended
October 31, 2020:
Second quarter

91,414

-0.5

9,239

-18.0

9,046

-21.4

5,344

-26.3

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

Earnings per
Share

6,909
5,327 (-29.5%)(29.7%)

Earnings per
Share on a Fully
Diluted Basis

Yen

Yen

Fiscal year ending
October 31, 2021:
Second quarter

130.75–

Fiscal year ended
October 31, 2020:
Second quarter

138.33–(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of April 30,
2021

300,485

131,598

41.3

As of October 31,
2020

300,748

126,188

39.6(Reference) Equity (millions of yen)
As of April 30, 2021
123,960
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 theprovisional accounting treatment.

 1 

2. Dividends
Annual Dividends per Share
End offirst quarterEnd of second
quarterYen

End of third
quarter

Yen

Fiscal year ended October 31,
2020

–

25.00

Fiscal year ending October 31,
2021

–

25.00

Year-end

Yen

Fiscal year ending October 31,
2021 (projected)

Full-year
Yen

Yen

–

40.00

65.00

–

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

Full year

190,300

Operating Profit% Millions of yen

6.3

15,000

Profit Attributable to
Owners of Parent

Ordinary Profit% Millions of yen

5.3

15,200% Millions of yen

6.5

9,000

Earnings per
Share

%

6.3

Yen

238.03(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 April 30, 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 April 30, 2021:
924,596 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: Second quarter:
37,810,252 sharesFiscal year ended October 31, 2020: Second quarter:
38,633,054 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
7, 2021.
Following the meeting, the Company will upload the meeting highlights and the discussion (voicerecording) 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 ............................................. 14(Notes Relating to the Going Concern Assumption) ........................................................... 14(Note on Significant Changes to Shareholders’ Equity)....................................................... 14(Supplemental Information) ........................................................................................... 14(Segment Information) .................................................................................................. 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 continued to face difficult conditions due tothe impact of the spread of COVID-19. Although the economy continues to move toward normalization
due to the effects of a range of government policies, the future still remains uncertain given the spread ofmutated strains of COVID-19 and the re-issuing of the declaration of a state of emergency.
In the construction industry in which the Group is involved, public sector investment continued to bestrong, centered on disaster recovery, infrastructure-related construction, and promotion of Japan’s
National Resilience Plan. Meanwhile private sector construction investment, which has been on a downward
trend, remained weak, although there were signs of a gradual recovery.
In such circumstances, based on the three key measures of the Medium-Term Corporate Management
Plan “Creative 60” (FY2020-2024), the Group will promote business alliances and M&As that can be
expected to generate significant synergies in order to strengthen the foundation of the Alliance Group in
Japan and abroad. At the same time, we are striving to accumulate and share solutions for the sustainable
development of the Group and the enhancement of corporate value.
For the six-month period under review, the Group reported net sales of ¥95,225 million, up 4.2%
compared with the same period of the prior year. In terms of earnings, operating profit decreased 12.1%
from the same period of the prior year to ¥8,118 million, ordinary profit declined 4.0% year on year to¥8,683 million, and interim period profit attributable to owners of parent declined 7.5% year on year to¥4,943 million, reflecting investment in human resources for the future and strict control over used
construction equipment sales aimed at extending the operating life of rental assets.
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, although private sector
construction investment remained weak, rental demand for construction equipment was solid overall due
to strong public sector investment centered on construction related to disaster recovery and reconstruction
work as well as disaster prevention and mitigation in various regions, and maintenance and renewal of
aging social capital.
In addition, the Group is promoting the enhancement of service quality and the strengthening of its
business structure through the appropriate deployment and efficient operation of rental assets while also
strengthening its ability to respond to needs for the development of equipment that applies IoT and ICTrelated technologies.
Used construction equipment sales fell 27.9% year on year, as disposals were proceeded with as plannedat the beginning of the period.
Reflecting these factors, the Group posted net sales in the construction-related businesses of ¥86,603
million, an increase of 4.3% year on year, and operating profit of ¥7,341 million, a decrease of 14.6%.
< Other businesses >In the Group’s other businesses, net sales increased by 3.3% year on year to ¥8,622 million andoperating profit increased by 27.1% to ¥544 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 performedwell.
(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 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 5 

comparative information included in the condensed consolidated statement of income for the second
quarter under review. In the comparison and analysis with the end of the previous 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.
(i) Assets, liabilities, and net assets
Total assets at the end of the second quarter under review stood at ¥300,485 million, a decrease of¥262 million compared with the end of the prior fiscal year. This was primarily due to increases of ¥3,690
million in cash and deposits and ¥1,330 million in buildings and structures, while notes and accounts
receivable - trade decreased by ¥6,422 million.
Total liabilities were ¥168,887 million, a decrease of ¥5,672 million compared with the end of the priorfiscal year. This was primarily due to a ¥1,215 million increase in long-term borrowings, while notes andaccounts payable - trade and long-term accounts payable - other decreased by ¥4,579 million and ¥2,999
million, respectively.
Total net assets totaled ¥131,598 million, ¥5,409 million higher than at the end of the prior fiscal year.
This mainly reflects the posting of profit attributable to owners of parent of ¥4,943 million, and an increasein foreign currency translation adjustment of ¥914 million. Meanwhile, there was a decrease of ¥1,512
million due to dividends of surplus.
(ii) Cash flows
Cash and cash equivalents (“cash”) at the end of the six-month period under review increased by ¥3,694
million compared with the end of the prior fiscal year to ¥51,717 million. Cash flows for the six-month
period under review are discussed below.
(Net cash provided by (used in) operating activities)
Cash generated from operating activities decreased 4.9% from the same period of the prior fiscal yearto ¥20,084 million.
This was primarily attributable to the following: profit before income taxes of ¥8,397 million, depreciationof ¥15,401 million, decrease in trade receivables of ¥5,899 million, as well as decrease in trade payablesof ¥5,330 million, purchase of rental equipment of ¥2,777 million, and income taxes paid of ¥2,142 million.
(Net cash provided by (used in) investing activities)
Cash utilized in investing activities was ¥2,353 million, compared with cash used in investing activities
in the same period of the prior fiscal year of ¥1,751 million in the same period of the prior fiscal year.
This mainly reflected the posting of ¥2,292 million in for purchase of property, plant and equipment.
(Net cash provided by (used in) financing activities)
Cash used for financing activities was ¥14,436 million, compared with cash used in financing activities
in the same period of the prior fiscal year of ¥16,522 million.
This mainly reflected proceeds from long-term borrowings of ¥7,980 million, repayments of installment
payables of ¥12,773 million, repayments of long-term borrowings of ¥7,280 million, and dividends paid of¥1,509 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, 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 April 30, 2021

48,56341,451

52,25335,029

6,166

6,960

1,205

1,992

148

81

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

1,387
18,7703,150-228
119,397

251,783-153,225
98,55739,804-23,293
16,5109,619-8,025258,526-159,208
99,31841,903-24,061
17,841
9,742-8,118

1,593

1,624

37,421
4,143-2,054
2,088
156,171

37,7283,168-2,113
1,054
157,567

6,600
1,276
1,455
9,332

6,402
1,382
1,405
9,190

8,974
2,377
3,557
-618
14,291
179,795
300,748

9,260
2,176
3,488
-595
14,328181,087
300,485

(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 income
Valuation difference on available-forsale securities
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 

As of April 30, 2021

37,9751,035
44

33,396960
24

12,942

13,114

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

1,318
3,094
1,571
25,186
4,525
83,19124
30,082
2,857
52,246
498
545
606
91
86,953
174,559

12
31,297
3,237
49,247
524
572
704
98
85,695
168,887

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

17,82919,32686,030-1,978121,209

1,522

2,009

–

0

-126

788

-49

-46

1,346

2,750

7,097
126,188
300,748

7,638
131,598
300,485

(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, 2020

Six months endedApril 30, 2021

91,41464,07527,33818,098
9,239

95,22566,81028,415
20,297
8,118

18
72
57
44
215
409

22
66
298
44
294
726

40
115
37

51
–
12

328

–

80
602
9,046

97
161
8,683

4

6

–

20

12
16

17
43

114

79

127

168

66

–

–
308
8,754
2,919
-84
2,835
5,918

81
329
8,397
2,874
20
2,895
5,502

574

558

5,344

4,943

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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Loss on cancellation of leases
Provision of allowance for doubtful
accounts
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
Subsidy income
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
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-controllinginterests
Profit attributable to owners of parent 9 

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Six-Month Period Ended April 30)(Millions of yen)Six months endedApril 30, 2020

Six months endedApril 30, 2021

5,918

5,502

-589

488

-0
27

0
914

-29

4

-590
5,327

1,407
6,909

4,764

6,347

562

561

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) Quarterly Consolidated Statements of Cash Flows(Millions of yen)Six months endedApril 30, 2020

Six months endedApril 30, 2021

8,754
14,312
71

8,397
15,401
475

110

73

511

404

-781

-227

-2,456-2,777

127

168

66

–

–

-20

258

-29

137

94

8

32

-91

-88

224

321

40
110
2,661
-593
-541

51
-92
5,899
-851
-5,330

2,022

846

–

81

311
25,26680-259-3,980-301
22,53070-374-2,142

21,10820,084

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Loss (gain) on sales 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 valuation of investment
securities
Loss on valuation of shares of subsidiaries
and associates
Loss (gain) on sales 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
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable other
Loss (gain) on extinguishment of tie-insharesOther, 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, 2020

Six months endedApril 30, 2021

-190

-292

190

298

-1,325-2,292

5

13

-189
–
-3

-219
12
-3

–

7

-191

–

-133

–

–

22

-50
127

-13
23

21

103

-11

-13

-1,751-2,353

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time
deposits
Purchase of property, plant andequipment
Proceeds from sales of property, plantand equipment
Purchase of intangible assets
Proceeds from sales of intangible assets
Purchase of investment securities
Proceeds from sales of investment
securities
Purchase of shares of subsidiaries
Purchase of shares of subsidiaries andassociates
Proceeds from sales of shares ofsubsidiaries and associates
Loan advances
Collection of loans receivableCollection of long-term accounts
receivable-other
Other, net
Net cash provided by (used in) investing
activities 12 

(Millions of yen)Six months endedApril 30, 2020

Six months endedApril 30, 2021

–

-32

540

-75

6,300
-6,305-13,779-721-986-1,5487,980-7,280-12,773-724-0-1,509

-20

-20

-0

–

-16,522-14,436

13

140

2,847

3,434

43,511

48,023–260

46,35851,717

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-controllinginterests
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

 13 

(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 had no material items to report.
(Supplemental Information)(Accounting estimates due to the spread of COVID-19)
There have been no significant changes in the assumptions and accounting estimates, including thoserelated to the impact of the spread of COVID-19 and the timing of its settlement as described in the
Annual Securities Report for the previous fiscal year (Supplemental Information) (Accounting estimates
due to the spread of COVID-19).
(Segment Information)I

Six-month period ended April 30, 2020 (From November 1, 2019 to April 30, 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)

83,062

8,351

91,414–––

83,062

8,351

91,414

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

Total

Segment income
8,594
428
9,023
(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

8,594

Income for “Other businesses” classification

428

Other adjustments
Operating profit reported on the Quarterly
Consolidated Statement of Income

216

3. Information concerning non-current impairment loss and goodwill by reporting segment
The Company had no material items to report.

 14 

9,239

II

Six-month period ended April 30, 2021 (From November 1, 2020 to April 30, 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)

86,603

8,622

95,225–––86,603

8,622

95,225Net sales
Net sales to outside customers
Net sales or transfers between
related segments
Total
Segment income

Total

7,341
544
7,885
(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 Statement of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
IncomeAmountReporting segment total

7,341

Income for “Other businesses” classification

544

Other adjustments

232

Operating profit reported on the Quarterly
Consolidated Statement of Income

8,118

3. Information concerning non-current asset impairment loss and goodwill by reporting segment
The Company had no material items to report.

 15 