Fiscal Year ended October 31, 2022

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

December 9, 2022
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 26, 2023
January 27, 2023
January 26, 2023
Yes
Yes

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

1. Consolidated Operating Results for the Fiscal Year ended October 31, 2022
(November 1, 2021 – October 31, 2022)(1) Consolidated Operating Results(Percentages show the change from the prior year)

Net Sales

Operating Profit

Millions of yen%

Fiscal year ended
October 31, 2022

188,028–

13,229-9.5

13,780

-10.5

8,345

-6.3

Fiscal year ended
October 31, 2021

189,416

5.8

14,624

2.6

15,391

7.9

8,907

5.2

(Note) Comprehensive income (millions of yen)
Fiscal year ended October 31, 2022
Fiscal year ended October 31, 2021

Earnings per
Share

Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Profit

10,676
11,174%

Millions of yen%

Millions of yen%(-4.5%)(25.1%)

Earnings per
Share on a Fully
Diluted Basis

Ordinary Profit toTotal Assets

ROE

OperatingMargin

Yen

Yen

%

%

%

Fiscal year ended
October 31, 2022

224.64

–

6.4

4.5

7.0

Fiscal year ended
October 31, 2021

235.55

–

7.2

5.1

7.7

(Reference) Investment profit or loss accounted for by the equity method (millions of yen)
Fiscal year ended October 31, 2022
Fiscal year ended October 31, 2021

(Note) The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the fiscal year ended October 31, 2022, and the figures for the fiscal year ended October 31, 2022
are figures after the application of the said accounting standard. As a result, the percentage of change for net sales fromthe previous year is not shown.

(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,
2022

305,320

140,61143.2

3,571.98

As of October 31,
2021

303,754

134,91741.8

3,357.10(Reference) Equity (millions of yen)
As of October 31, 2022
131,958
As of October 31, 2021
126,956(Note) The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the fiscal year ended October 31, 2022, and the figures as of October 31, 2022 are figures after theapplication of the said accounting standard.

 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, 2022

33,158-11,331-30,893

47,047

Fiscal year ended
October 31, 2021

39,351-3,373-28,794

55,557

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, 2021

–

25.00

–

45.00

70.00

2,647

29.7

2.2

Fiscal year ended
October 31, 2022

–

35.00

–

40.00

75.00

2,770

33.4

2.2

Fiscal year ending
October 31, 2023
(projected)

–

35.00

–

40.00

75.00

32.3

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2023
(November 1, 2022 - October 31, 2023)(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

96,700

3.2

6,200

-12.7

6,200

-16.9

3,600

-20.7

98.78

Full year

198,000

5.3

14,0005.8

14,100

2.3

8,400

0.7

231.87(Note) At a meeting of the Board of Directors held on December 9, 2022, the Company resolved to acquire its own shares, and the“Earnings per Share” in the projected consolidated operating results for the fiscal year ending October 31, 2023 takes into
account the impact of this acquisition of own shares. Please refer to “Material Events after the Close of the Consolidated
Fiscal Year” on page 27 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: Yes(b) Changes other than the above: No(c) Changes in accounting estimates: No(d) Retrospective restatements: No(Note) For details, please refer to “3. Consolidated Financial Statements and Significant Notes Thereto (5)Notes to the Consolidated Financial Statements (Changes in Accounting Policies)” on page 21 of
the Attachments.
(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, 2022:
38,742,241 shares
As of October 31, 2021:
38,742,241 shares(b) Number of treasury shares at the end of the period
As of October 31, 2022:
1,799,490 shares
As of October 31, 2021:
924,846 shares(c) Average number of shares outstanding during the period
Fiscal year ended October 31, 2022:
37,148,669 sharesFiscal year ended October 31, 2021:
37,813,895 shares 3(Reference) Summary of Non-Consolidated Operating Results
1. Non-Consolidated Operating Results for the Fiscal Year Ended October 31, 2022
(November 1, 2021 – October 31, 2022)(1) Non-Consolidated Operating Results
Net Sales(Percentages show the change from the prior year)
Operating Profit%

Fiscal year ended
October 31, 2022

115,714

–

6,462

-13.9

7,454

-12.0

4,959

-8.0

Fiscal year ended
October 31, 2021

117,687

-0.8

7,503

-8.2

8,471

-2.7

5,392

-7.9

%

Millions of yen%

Earnings per Shareon a Fully Diluted Basis

Yen

Yen

Fiscal year ended
October 31, 2022

133.50–Fiscal year ended
October 31, 2021

142.61–(Note)

Millions of yen

Profit%Earnings per Share

Millions of yen

Ordinary Profit

Millions of yen

The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the fiscal year ended October 31, 2022, and the figures for the fiscal year ended October 31, 2022
are figures after the application of the said accounting standard. As a result, the percentage of change for net sales fromthe previous year is not shown.

(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,
2022

226,854

107,39247.3

2,906.99

As of October 31,
2021

229,544

107,48046.8

2,842.10(Reference) Equity (millions of yen)
As of October 31, 2022
107,392
As of October 31, 2021
107,480(Note)The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the fiscal year ended October 31, 2022, and the figures as of October 31, 2022 are figures after
the application of the said accounting standard.

2. Projected Non-Consolidated Operating Results for the Fiscal Year Ending October 31, 2023
(November 1, 2022 - October 31, 2023)(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

56,600

-1.3

2,700

-28.6

1,800

-29.4

49.39

Full year

118,900

2.8

7,900

6.0

5,300

6.9

146.30(Note)

At a meeting of the Board of Directors held on December 9, 2022, 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, 2023 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 27 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 12, 2022. 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, 2022 ······ 7(2) Overview of Financial Position for the Fiscal Year Ended October 31, 2022 ······················· 8(3) Overview of Cash Flows for the Fiscal Year Ended October 31, 2022································ 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 ······································································ 18(5) Notes to the Consolidated Financial Statements··························································· 21(Notes Relating to the Going Concern Assumption) ······················································ 21(Changes in Accounting Policies) ··············································································· 21(Supplemental Information) ······················································································ 22(Segment Information) ···························································································· 23(Per Share Information) ··························································································· 25(Material Events after the Close of the Consolidated Fiscal Year) ···································· 27

 6

1. Overview of Operating Results and Others(1) Overview of Operating Results and Others for the Fiscal Year Ended October 31, 2022
During the consolidated fiscal year under review, while Japan’s economy showed signs of recovery ineconomic activities that had been stagnant due to the spread of COVID-19, the situation remained
unpredictable due to the prolonged situation in Ukraine, soaring raw material prices, and growing concernsof an economic recession caused by global financial tightening and other factors.
In the construction industry in which the Group is involved, although public sector investment remained
steady and private sector construction investment has shown signs of gradual recovery, the situation stillrequires monitoring as semiconductor supply shortages, soaring material prices and chronic shortage ofskilled construction workers are becoming increasingly more severe.
In such circumstances, based on the three key measures in the Medium-Term Corporate Management
Plan “Creative 60” (FY2020-2024), the Group is reinforcing the Alliance Group’s foundations in Japan andoverseas, pursuing synergistic effects to further improve management efficiency, while carrying out aflexible investment strategy that responds to actual demand. In addition, the Group focused on sustainable
development and enhancement of corporate value by realizing efficient utilization of rental assets andbuilding an organizational structure to address sustainability issues.
Consequently, in the fiscal year ended October 31, 2022, the Group reported net sales of ¥188,028
million. On the earnings front, partly due to an increase in selling, general and administrative expenses
caused by investment in human resources in preparation for the future, in addition to a trend of rental
demand, operating profit decreased 9.5% from the same period of the prior fiscal year to ¥13,229 million,
ordinary profit declined 10.5% to ¥13,780 million, and profit attributable to owners of parent decreased
6.3% to ¥8,345 million.
Please note that the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year
ended October 31, 2022. For details, please refer to “3. Consolidated Financial Statements and Significant
Notes Thereto (5) Notes to the Consolidated Financial Statements (Changes in Accounting Policies).”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 investment
remained steady, primarily in activities carried out for Japan’s National Resilience Plan as well as
infrastructure-related construction, and while private sector construction investment showed signs ofpicking up, regional differences, as well as delays and slow progress in construction due to soaring
material prices at some sites, prevented a full-scale recovery in rental demand for construction
equipment.
In addition to strengthening its ability to respond to the fields of maintenance and repair of social
infrastructure and renewable energy, where further priority investment is expected, the Group also
promoted technological development and business alliances aimed at realizing DX at construction
sites by utilizing digital technology and reducing environmental impact.
As a result, sales by region in this business were up 5.5% in the Hokkaido Region, down 7.3% in
the Tohoku Region, down 0.6% in the Kanto & Koushinetsu Region, down 0.7% in the Nishi-nihon
Region, and up 1.1% in the Kyushu & Okinawa Region.
Used construction equipment sales decreased 15.1% 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¥170,433 million, and operating profit of ¥11,508 million, a decrease of 11.8% year on year.

 7< Other businesses >In the Group’s other businesses, net sales was ¥17,594 million and operating profit increased by
11.0% year on year to ¥1,232 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, 2022
(Assets)
Total assets at the end of the consolidated fiscal year under review stood at ¥305,320 million, an increaseof ¥1,565 million compared with the end of the prior consolidated fiscal year. This was primarily due toincreases of ¥5,592 million in property, plant and equipment, including rental equipment, and ¥4,236
million in long-term loans receivable, while cash and deposits decreased by ¥8,527 million.
(Liabilities)
Total liabilities were ¥164,708 million, a decrease of ¥4,129 million compared with the end of the priorconsolidated fiscal year. This was primarily due to an increase of ¥3,199 million in long-term borrowings,
while notes and accounts payable - trade and long-term accounts payable - other decreased by ¥3,368
million and ¥3,365 million, respectively.
(Net assets)
Total net assets totaled ¥140,611 million, ¥5,694 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 ¥8,345 million andan increase of ¥1,657 million in foreign currency translation adjustment. Meanwhile, there were decreasesof ¥2,994 million due to dividends of surplus and ¥1,967 million due to purchase of treasury shares, etc.
(3) Overview of Cash Flows for the Fiscal Year Ended October 31, 2022
(Millions of yen)
FY Ended October 2021
(Prior consolidated fiscal
year)

FY Ended October 2022
(Consolidated fiscal year
under review)

Change from prior year

Net cash provided by (used in)operating activities

39,351

33,158-6,193

Net cash provided by (used in) investing
activities-3,373-11,331-7,957

Net cash provided by (used in) financing
activities-28,794-30,893-2,099Net increase (decrease) in cash andcash equivalents

7,274-8,790-16,064

Cash and cash equivalents at beginningof period

48,02355,557

7,534

Cash and cash equivalents at end of
period55,55747,047-8,510The balance of cash and cash equivalents (“cash”) at the end of the consolidated fiscal year underreview was ¥47,047 million, a decrease of ¥8,510 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 provided by operating activities stood at ¥33,158 million, a decrease of 15.7% from the priorconsolidated fiscal year. This was primarily attributable to the following: profit before income taxes of¥13,574 million, depreciation of ¥31,912 million, as well as purchase of rental equipment of ¥5,645
million, increase (decrease) in trade payables of a negative ¥3,736 million, and income taxes paid of¥4,985 million.
(Net cash provided by (used in) investing activities)
Cash used in investing activities was ¥11,331 million, compared with ¥3,373 million used in theprior consolidated fiscal year. This mainly reflected the posting of ¥4,793 million for purchase ofproperty, plant and equipment, and ¥5,761 million for loan advances.
 8(Net cash provided by (used in) financing activities)
Cash used in financing activities was ¥30,893 million, compared with ¥28,794 million used in theprior consolidated fiscal year. This mainly reflected proceeds from long-term borrowings of ¥15,894
million, repayments of long-term borrowings of ¥14,684 million, repayments of installment payablesof ¥25,686 million, and dividends paid of ¥2,993 million.
(Reference) Trends in Cash Flow Indicators
FY Ended October FY Ended October FY Ended October FY Ended October
2019
2020
2021
2022
Equity ratio (%)

43.1

39.5

41.8

43.2

Equity ratio on a market capitalizationbasis (%)

42.1

26.9

30.3

26.0

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

2.5

3.0

2.9

3.5

104.6

74.3

54.1

47.1

Interest coverage ratio (times)(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, while public sector investment is expected to remain
steady and private sector construction investment is also expected to continue its gradual recovery trend,
the outlook is expected to remain uncertain due to concerns that heightened geopolitical risks, a weaker
yen, and rising construction costs will dampen the recovery in demand. At the same time, we believe thatdemand for the realization of a sustainable society, including decarbonization and digitalization, is expected
to continue to grow and will require even more focused responses.
In such circumstances, to achieve the goals of its Medium-Term Corporate Management Plan “Creative60” (FY2020-2024), the Group will build a solid earnings foundation by further pursuing the efficient useof its assets, based on the promotion of three key measures: expansion of domestic bases for operations,overseas expansion, and optimization of internal operations. In addition, we will promote growth strategies
toward the future in areas such as renewable energy and ICT, while working to address sustainability issues
with the aim of realizing a sustainable society and sustainable corporate growth.
Through the above measures, for the fiscal year ending October 31, 2023, the Group aims for net salesof ¥198.0 billion, a growth of 5.3%, operating profit of ¥14.0 billion, a growth of 5.8%, ordinary profit of¥14.1 billion, a growth of 2.3%, and profit attributable to owners of parent of ¥8.4 billion, a growth of
0.7%.
 9



2. Basic Policy Regarding Selection of Accounting Standards
The 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 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, 2021

As of October 31, 2022

56,09339,30547,565––38,452

7,319

8,025

1,666

1,729

82

–

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

1,432
17,0474,098-284
118,066

262,239-164,193
98,046
42,680-24,656
18,024
9,764-8,141

282,605-181,989
100,616
44,709-26,128
18,581
10,088-8,511

1,623

1,576

37,684
2,899-2,143756
156,135

38,6884,570-2,3052,265
161,728

4,111
1,276
1,516
6,904

3,810
1,395
1,511
6,717

9,249
2,175
977
2,069
-507
13,963177,003
303,754

9,699
2,370
5,213
2,081
-556
18,808187,253
305,320

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade,and contract assets
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
Long-term loans receivable
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

 11



(Millions of yen)
As of October 31, 2021

As of October 31, 2022

37,082960
24
13,055
1,269
2,681
1,548
24,545
6,063
87,23033,714980–
13,913
1,444
1,957
1,579
24,853
4,022
82,46531,4602,888
44,486
566
588
1,501
115
81,607
168,837

34,6593,179
41,121
374
657
2,095
154
82,242
164,708

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

17,82919,332
94,399-3,945
127,616

2,249

2,181

0
541
-60

–
2,198
-37

2,729

4,342

7,960
134,917
303,7548,652
140,611305,320

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
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

 12



(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
October 31, 2021
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
Loss on cancellation of leases
Waste disposal costs
Compensation for damage
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
Gain on revision of retirement benefit plan
Gain on extinguishment of tie-in shares
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, 2022

189,416
133,81255,60440,97914,624

188,028
132,196
55,83142,602
13,229

46
159
83
357
69
97
25
300
1,140

62
180
77
35
77
262
40
349
1,086

102
27
41
–
–
201
372
15,391

102
38
62
122
19
190
536
13,780

21

19

20

6

18
–
–
59

–
34
135
196

275

222

172

4

174

174

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

–
402
13,574
4,174
344
4,518
9,056
711
8,345

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
October 31, 2021
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, 2022

9,793

9,056

727

-67

0
667

-0
1,657

-14

30

1,381
11,174

1,620
10,676

10,290

9,957

884

718

(3) Consolidated Statements of Changes in Equity
Prior 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-2,457-2,457

8,907

8,907

Purchase oftreasury shares
Restricted stockcompensation
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period

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 15Current consolidated fiscal year (From November 1, 2021 to October 31, 2022)(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginningof period
Cumulative effects
of changes inaccounting policies
Restated balance

Retainedearnings

Capital surplus

17,82919,326

Treasury shares

89,048-1,978-0
17,82919,32689,048

Total
shareholders’equity124,226-0-1,978124,226

Changes during period
Dividends ofsurplusProfit attributableto owners of parent
Change inownership interestof parent due totransactions with
non-controllinginterests
Purchase oftreasury shares
Restricted stockcompensation
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period-2,994-2,994

8,345

8,345

5

5

0

-2,000-2,000

33

33

–

6

5,350

-1,967

3,389

17,82919,332

94,399-3,945

127,616 16Accumulated other comprehensive income

Balance at beginningof period
Cumulative effects
of changes inaccounting policies
Restated balance

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasure-ments ofdefinedbenefit
plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

2,249

0

541

-60

2,729

7,960

Total net
assets134,917
-0

2,249

0

541

-60

2,729

7,960

134,917

Changes during period
Dividends ofsurplusProfit attributableto owners of parent
Change inownership interestof parent due totransactions with
non-controllinginterests
Purchase oftreasury shares
Restricted stockcompensation
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period–-2,994

–

8,345

–

5

–

-2,000

–

33

-67

-0

1,657

23

1,612

692

2,304

-67

-0

1,657

23

1,612

692

5,694

2,181

–

2,198

-37

4,342

8,652

140,611 17(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
October 31, 2021
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 trade receivables andcontract 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

 18



Fiscal year ended
October 31, 2022

14,74731,064648

13,574
31,912
615

254

202

793

775

-968

-769

-5,424-5,645

172

4

174

174

81

-135

-20

-6

-76

45

70

14

47

24

-206

-243

622

598

102
-95
1,242

102
-238
–

–

520

-513
-1,237-15-3,736

1,886

2,105

1,252
44,619202-727-4,742-1,28038,601245-704-4,98539,351

33,158(Millions of yen)
Fiscal year ended
October 31, 2021
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
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

 19



Fiscal year ended
October 31, 2022

-757
763
-9
32
-3,528

-722
741
-301
25
-4,793

95

35

-562
12
-8

-471
–
-815

22

22

-14
177

-5,761
583

186

126

216

0

-3,373-11,331(Millions of yen)
Fiscal year ended
October 31, 2021
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 liabilities
Purchase of treasury shares
Dividends paid
Dividends paid to non-controlling interests
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

 20



Fiscal year ended
October 31, 2022

-44

-24

-75

20

14,980-14,415-25,331-1,432-0-2,454-20

15,894-14,684-25,686-1,397-2,000-2,993-20-28,794-30,893

90

276

7,274

-8,79048,02355,557260

279

55,55747,047

(5) Notes to the Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(Changes in Accounting Policies)(Application of accounting standard for revenue recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ regulations effective from the beginning of the consolidated fiscal year,
and it has recognized revenue at the time the control of promised goods or services is transferred to thecustomer at the amount expected to be received upon exchange of said goods or services. The mainchanges resulting from the application are as follows:(1) Change in the timing of revenue recognition
With respect to revenues from construction-related business and other businesses, the Groupchanged the method of revenue recognition from the sales of goods and products to customers fromthe time of shipment to the time of delivery, when control over the goods and products is transferredto the customer.
(2) Revenue recognition for agent transactions
For certain transactions, the Group previously recognized as revenue the gross amount ofconsideration received from customers. However, for transactions in which the Group’s role in theprovision of goods or services to customers is that of an agent, the Group now recognizes revenue as
the net amount received from customers less the amount paid to suppliers.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the
new accounting policy had been applied to periods prior to the beginning of the fiscal year was added toor deducted from the opening balance of retained earnings at the beginning of the fiscal year, and thus
the new accounting policy was applied from such opening balance; provided, however, that the new
accounting policy was not retrospectively applied to contracts for which nearly all the revenue amounts
had been recognized according to the previous treatment in periods prior to the beginning of the fiscal
year, by applying the method provided for in paragraph 86 of the Accounting Standard for Revenue
Recognition.
Also, “Notes and accounts receivable - trade” presented under current assets of the consolidated balance
sheet as of the end of the prior fiscal year has been included in “Notes and accounts receivable - trade,and contract assets” under current assets from the consolidated balance sheet as of the end of the current
fiscal year under review. “Decrease (increase) in trade receivables” presented under cash flows fromoperating activities in the consolidated statements of cash flows is included in “Decrease (increase) intrade receivables and contract assets” from current fiscal year under review. However, in accordance withthe transitional treatment provided for in paragraph 89-2 of the Accounting Standard for Revenue
Recognition, figures for the prior fiscal year have not been restated in accordance with the new approachto presentation.
As a result, the effect on consolidated balance sheets for the current fiscal year under review is negligible
compared to that before application of the Accounting Standard for Revenue Recognition and relevant
ASBJ regulations. As a result of this change, for the six-month period under review, on the consolidated
statements of income for the fiscal year ended October 31, 2022, net sales decreased by ¥3,790 million
and cost of sales decreased by ¥3,790 million, while operating profit, ordinary profit and profit before
income taxes each increased by ¥0 million. The impact on the consolidated statements of cash flows forthe current fiscal year under review is negligible. Because the cumulative effect was reflected in net assets
as of the beginning of the fiscal year, retained earnings as of the beginning of the fiscal year decreasedby ¥0 million on the consolidated statements of changes in equity. The impact on per share informationis stated in the relevant section.

 21



(Application of accounting standard for fair value measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant ASBJ regulations from the beginning of the fiscal year, and it has applied
the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc.
prospectively in accordance with the transitional measures provided for in paragraph 19 of the AccountingStandard for Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). There is no impact on the consolidated financial
statements.
(Supplemental Information)(Changes to a retirement benefit plan)
NISHIKEN CO., LTD., a consolidated subsidiary of the Company, shifted from a lump-sum retirement
benefit plan to a defined contribution pension plan on January 31, 2022, except for certain eligible
employees. The accounting treatment in this transition applied “Accounting for Transfer between
Retirement Benefit Plans” (ASBJ Guidance No. 1, December 16, 2016) and “Practical Solution on
Accounting for Transfer between Retirement Benefit Plans” (ASBJ Practical Issues Task Force No. 2,
February 7, 2007). As a result, extraordinary income of ¥34 million was recorded for the fiscal year underreview.

 22

(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.
(Application of accounting standard for revenue recognition, etc.)
As described in “Changes in Accounting Policies,” the Company has applied the “AccountingStandard for Revenue Recognition” and relevant ASBJ regulations from the beginning of the fiscal
year, and changed the accounting treatment for revenue recognition. Accordingly, the Company haschanged the method of measuring profit or loss of operating segments.
As a result of this change, net sales of the construction-related business for the fiscal year ended
October 31, 2022, decreased by ¥785 million compared with the previous method, but there was
no impact on segment income. Net sales decreased by ¥3,004 million and segment income
increased by ¥0 million for other businesses.
3. Information concerning the amount of net sales, income or loss, assets, liabilities and other items ofeach reporting segment, and information on disaggregation of revenue
Prior 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–––

171,020

18,395

189,416

Segment income

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

26,501

Net sales or transfers between related
segments
Total

Other 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.
 23

Current consolidated fiscal year (From November 1, 2021 to October 31, 2022)(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)Total

Net sales
Rental contracts

121,205

7,403

128,608

Sales of merchandise and finishedgoods

35,191

8,994

44,186

Other

13,873

1,196

15,069

Revenue from contracts withcustomers

170,270

17,594

187,864

163

–

163

170,433

17,594

188,028–––

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

170,433

17,594

188,028

Segment income

Total

11,508

1,232

12,740

Segment assets

234,029

11,773245,80230,224

1,206

31,430

615

–

615

31,144

2,295

33,439Other 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

171,020

170,433

Net sales for “Other businesses” classification

18,395

17,594––

189,416

188,028

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

IncomeCurrent consolidated
fiscal year

Reporting segment total

13,043

11,508

Income for “Other businesses” classification

1,110

1,232

471

489

14,624

13,229Other adjustments
Operating profit reported in the consolidated financial
statements

 24



(Millions of yen)
Prior consolidated
fiscal year

AssetsReporting segment total

Current consolidated
fiscal year

233,729

234,029

Assets of “Other businesses” classification

8,988

11,773Company assets (Note)

61,03659,517

Total assets reported in the consolidated financial
statements

303,754305,320(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

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

29,39630,224

1,211

1,206

456

481

31,064

31,912

Amount of increase ofproperty, plant andequipment andintangible assets

25,141

31,144

1,360

2,295

158

36

26,65933,475(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, 2020 to October 31, 2021)

Current consolidated fiscal year
(From November 1, 2021 to October 31, 2022)

Net assets per share¥3,357.10 Net assets per share¥3,571.98

Earnings per share¥235.55 Earnings per share¥224.64

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.
(Notes)–Same as at left

1. The basis for calculating earnings per share is as follows.
(Millions of yen, unless otherwise noted)
Prior consolidated fiscal year
(From November 1, 2020 to
October 31, 2021)

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)

Current consolidated fiscal year
(From November 1, 2021 toOctober 31, 2022)

8,907

8,345

–

–

8,907

8,345

37,813,895

37,148,669

2. As stated in (Changes in accounting policies), the Accounting Standard for Revenue Recognition
and relevant ASBJ regulations have been applied, and follow the transitional treatment provided
for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition. As a result, 25the effect of this change on per share information for the current fiscal year under review isnegligible.

 26



(Material Events after the Close of the Consolidated Fiscal Year)(Purchase of treasury shares)
At a Meeting of the Board of Directors held on December 9, 2022, based on the provisions of Article
156 of the Companies Act, as applied by replacing the relevant terms pursuant to the provisions ofArticle 165, paragraph (3) of the same Act, the Company resolved matters relating to the purchase oftreasury 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

 27

Common shares of the Company
1,100,000 shares (maximum)
December 12, 2022 - April 21, 2023
¥2,000,000,000 (maximum)
Purchase by stock exchange market