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

September 3, 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

September 13, 2021–
No
No

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

1. Consolidated Operating Results for the Nine-Month Period of the Fiscal Year Ending October
31, 2021(November 1, 2020 – July 31, 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:
Third quarter

141,455

6.4

10,895

2.2

11,548

10.4

6,826

11.1

Fiscal year ended
October 31, 2020:
Third quarter

132,961-0.6

10,658-19.4

10,459

-23.0

6,143

-28.1

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

Earnings per
Share

8,713 (42.9%)
6,096 (-29.7%)

Earnings per
Share on a Fully
Diluted Basis

Yen

Yen

Fiscal year ending
October 31, 2021:
Third quarter

180.53–Fiscal year ended
October 31, 2020:
Third quarter

160.09–(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of July 31, 2021

300,982

132,455

41.4

As of October 31,
2020

300,748

126,188

39.6(Reference) Equity (millions of yen)
As of July 31, 2021
124,718
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

Year-end

Yen

Fiscal year ended October 31,
2020

–

25.00

–

Fiscal year ending October 31,
2021

–

25.00

–

Full-year
Yen

Fiscal year ending October 31,
2021 (projected)

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

238.02(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 July 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 July 31, 2021:
924,846 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: Third quarter:
37,812,715 sharesFiscal year ended October 31, 2020: Third quarter:
38,377,113 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.

 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 Nine-Month Period Ended July 31) ......................................................9(Quarterly Consolidated Statements of Comprehensive Income) ................................ 10(Consolidated Nine-Month Period Ended July 31) .................................................... 10(3) Notes Concerning Quarterly Consolidated Financial Statements ............................................... 11(Notes Relating to the Going Concern Assumption) ..................................................... 11(Note on Significant Changes to Shareholders’ Equity) ................................................ 11(Supplemental Information) ........................................................................................ 11(Segment Information) ............................................................................................... 11 4 

1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results
During the nine-month period under review, Japan’s economy continued to face difficult conditions dueto the impact of the spread of COVID-19. Although the economy is expected to recover due to a range ofpolicies and the promotion of vaccination against COVID-19, the future continues to remain uncertain
given factors such as the repeated issuance of state of emergency declarations and semi-state of
emergency COVID-19 measures.
In the construction industry in which the Group is involved, public sector investment including activity
being carried out for the Japan’s National Resilience Plan remained strong. Private sector construction
investment saw signs of partial recovery begin to appear, however there is uncertainty about the future
and we continue to remain cautious.
In such circumstances, based on the three key measures of the Medium-Term Corporate Management
Plan “Creative 60” (FY2020-2024), in addition to strengthening the foundation of the Alliance Group, weare pursuing an asset strategy that carefully assesses changes in the business environment. Furthermore,
we are actively involved in business collaboration and technology development for future industry
reorganization and the promotion of ICT construction solutions in order to expand the scope of the businessand enhance corporate value.
For the nine-month period under review, the Group reported net sales of ¥141,455 million, up 6.4%
compared with the same period of the prior year. Operating profit increased 2.2% from the same periodof the prior year to ¥10,895 million, ordinary profit increased 10.4% year on year to ¥11,548 million, andprofit attributable to owners of parent increased 11.1% year on year to ¥6,826 million.
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, in addition to signs of recovery
beginning to be seen in private sector construction investment, rental demand for construction equipment
remained solid overall due to strong public sector investment centered on construction related to disasterrecovery work and infrastructure-related construction as well as disaster prevention-related construction.
At the same time, the Group is pressing forward with the strengthening of collaboration across various
areas and the efficient use of management resources to achieve sustainable growth while also making
efforts to build a structure that will strengthen our ability to respond to frequent natural disasters and therenewable energy field.
Used construction equipment sales fell 7.0% 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 ¥128,085
million, an increase of 6.8% year on year, and operating profit of ¥9,715 million, an increase of 1.1%.
< Other businesses >In the Group’s other businesses, net sales increased by 3.0% year on year to ¥13,370 million andoperating profit increased by 14.9% to ¥828 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 financial statements for the third quarter
under review. In the comparison and analysis with the end of the previous fiscal year, the figures after therevision of the initial allocation of acquisition costs due to the finalization of the provisional accounting
treatment have been used.
Assets, liabilities, and net assets
Total assets at the end of the third quarter under review stood at ¥300,982 million, an increase of ¥234
million compared with the end of the prior fiscal year. This was primarily due to increases of ¥5,177 million
in cash and deposits and ¥1,333 million in buildings and structures, while notes and accounts receivable trade, construction machine parts and rental equipment decreased by ¥3,445 million, ¥1,529 million and¥1,759 million, respectively.
Total liabilities were ¥168,526 million, a decrease of ¥6,033 million compared with the end of the priorfiscal year. This was primarily due to increases of ¥2,025 million in short-term borrowings and ¥1,376
million in long-term borrowings, while notes and accounts payable - trade, income taxes payable and longterm accounts payable - other decreased by ¥1,910 million, ¥1,240 million and ¥6,001 million, respectively.
Total net assets totaled ¥132,455 million, ¥6,267 million higher than at the end of the prior fiscal year.
This mainly reflects the posting of profit attributable to owners of parent of ¥6,826 million. Meanwhile,
there was a decrease of ¥2,457 million due to dividends of surplus.
(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating
Results
There is no change to the projected consolidated operating results announced in the Financial
Statements Bulletin for the Fiscal Year Ended October 31, 2020 (Japanese GAAP) on December 4, 2020.

 6 

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

As of July 31, 2021

48,56341,451

53,74038,006

6,166

6,671

1,205

1,685

148

80

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

1,392
18,3882,999-261
122,702

251,783-153,225
98,55739,804-23,293
16,5109,619-8,025

256,895-160,097
96,79842,157-24,312
17,844
9,805-8,148

1,593

1,656

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

37,7283,356-2,123
1,233
155,261

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

6,145
1,340
1,508
8,994

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

9,264
2,021
3,350
-612
14,024
178,279
300,982

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
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 

(Millions of yen)
As of October 31, 2020

As of July 31, 2021

37,975
1,035
44
12,942
1,342
2,401
1,462
25,4894,913
87,60636,0653,060
24
13,063
1,294
1,160
968
24,865
5,281
85,78224
30,082
2,857
52,246
498
545
606
91
86,953
174,559–
31,4583,117
46,245
522
576
725
98
82,744
168,526

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

17,82919,32686,967-1,978122,145

1,522

1,892

-126
-49

725
-45

1,346

2,573

7,097
126,188
300,748

7,737
132,455
300,982

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
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 Nine-Month Period Ended July 31)(Millions of yen)
Nine months ended
July 31, 2020

Nine months ended
July 31, 2021

132,961
95,06337,89827,23910,658141,455
99,81841,63630,741
10,895

33
165
64
65
271
600

33
158
327
64
311
895

60
112
50
331
244
799
10,459

77
–
18
–
147
243
11,548

9

14

–

20

12
22

17
51

171

140

119

–

66

–

–
357
10,124
3,177
168
3,345
6,779
635
6,143

81
222
11,377
3,636
257
3,893
7,484
657
6,826

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 andassociates
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sales 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 9 

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Nine-Month Period Ended July 31)(Millions of yen)
Nine months ended
July 31, 2020

Nine months ended
July 31, 2021

6,779

7,484

-666

370

-0
12

–
852

-28

6

-682
6,096

1,229
8,713

5,470

8,052

625

660

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 

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

Nine-month period ended July 31, 2020 (From November 1, 2019 to July 31, 2020)
1. Information concerning the amount of net sales and income or loss by reporting segment(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)

119,984

12,976

132,961–––

119,984

12,976

132,961

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

Total

9,613
721
10,334(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

9,613

Income for “Other businesses” classification

721

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

323

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

 11 

10,658II

Nine-month period ended July 31, 2021 (From November 1, 2020 to July 31, 2021)
1. Information concerning the amount of net sales and income or loss by reporting segment(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)

128,085

13,370141,455–––

128,085

13,370141,455

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

Total

9,715
828
10,543(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

9,715

Income for “Other businesses” classification

828

Other adjustments

352

Operating profit reported on the Quarterly
Consolidated Statement of Income

10,895

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

 12 