Fiscal Year Ended October 31, 2023

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

December 8, 2023
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 January 25, 2024
Scheduled date for commencement of dividend payments
January 26, 2024
Scheduled date for submission of Annual Securities Report
January 25, 2024
Preparation of Supplementary Explanatory Materials:
Yes
Earnings Briefings (For institutional investors and analysts):
Yes(Numbers less than one million yen have been rounded down)

1. Consolidated Operating Results for the Fiscal Year Ended October 31, 2023
(November 1, 2022 – October 31, 2023)(1)Consolidated Operating Results(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 ended
October 31, 2023

197,481

5.0

11,958-9.6

12,488

-9.4

6,721

-19.5

Fiscal year ended
October 31, 2022

188,028–

13,229-9.5

13,780

-10.5

8,345

-6.3

(Note) Comprehensive income (millions of yen)
Fiscal year ended October 31, 2023
Fiscal year ended October 31, 2022

Earnings per
Share8,410 (-21.2%)
10,676(-4.5%)

Earnings per
Share on a Fully
Diluted Basis

Ordinary Profit toTotal Assets

ROE

OperatingMargin

Yen

Yen

%

%

%

Fiscal year ended
October 31, 2023

185.40

–

5.0

4.0

6.1

Fiscal year ended
October 31, 2022

224.64

–

6.4

4.5

7.0

(Reference) Investment profit or loss accounted for by the equity method (millions of yen)
Fiscal year ended October 31, 2023



Fiscal year ended October 31, 2022

(Note) As the Company has 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, the percentage of change for net sales from the results
for the fiscal year ended October 31, 2021, which was prior to the application of the said accounting standard, etc. is notshown.

(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,
2023

316,440

143,67742.5

3,729.73

As of October 31,
2022

305,320

140,61143.2

3,571.98(Reference) Equity (millions of yen)
As of October 31, 2023
As of October 31, 2022

134,495
131,958 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, 2023

37,960-6,699-33,995

45,093Fiscal year ended
October 31, 2022

33,158-11,331-30,893

47,047

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, 2022

–

35.00

–

40.00

75.00

2,770

33.4

2.2

Fiscal year ended
October 31, 2023

–

35.00

–

40.00

75.00

2,704

40.5

2.1

Fiscal year ending
October 31, 2024
(projected)

–

35.00

–

40.00

75.00

32.0

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

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

101,000

3.8

5,900

10.7

6,000

9.3

3,400

16.3

95.51

Full year

205,300

4.0

14,10017.9

14,300

14.5

8,300

23.5

234.34(Note) At a meeting of the Board of Directors held on December 8, 2023, 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, 2024 takes into
account the impact of this acquisition of own shares. Please refer to “Material Events after the Close of the Fiscal Year” onpage 24 of the Attachments for more information on the acquisition.

Notes(1) Changes in material subsidiaries during the period under review (changes in specificsubsidiaries in conjunction with a change in the scope of consolidation): No(2) Changes in accounting principles, changes in accounting estimates and retrospective
restatements(a) Changes in accounting policy in conjunction with revision of accounting standards: No(b) Changes other than the above: No(c) Changes in accounting estimates: No(d) Retrospective restatements: No(3) Number of shares issued (common shares)(a) Number of shares outstanding at the end of the period (including treasury shares)
As of October 31, 2023:
38,742,241 shares
As of October 31, 2022:
38,742,241 shares(b) Number of treasury shares at the end of the period
As of October 31, 2023:
2,681,810 shares
As of October 31, 2022:
1,799,490 shares(c) Average number of shares outstanding during the period
Fiscal year ended October 31, 2023:36,254,078 sharesFiscal year ended October 31, 2022:37,148,669 shares 2(Reference) Summary of Non-Consolidated Operating Results
Non-Consolidated Operating Results for the Fiscal Year Ended October 31, 2023
(November 1, 2022 – October 31, 2023)(Percentages show the change from the prior year)(1)Non-Consolidated Operating Results
Net Sales

Operating Profit%

Fiscal year ended
October 31, 2023

119,441

3.2

5,759

-10.9

6,772

-9.2

3,588

-27.6

Fiscal year ended
October 31, 2022

115,714

–

6,462

-13.9

7,454

-12.0

4,959

-8.0

%

Millions of yen%

Earnings per Shareon a Fully Diluted Basis

Yen

Yen

Fiscal year ended
October 31, 2023

98.99

–

Fiscal year ended
October 31, 2022

133.50–(Note)

Millions of yen

Profit%Earnings per Share

Millions of yen

Ordinary Profit

Millions of yen

As the Company has 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, the percentage of change for net sales fromthe results for the fiscal year ended October 31, 2021, which was prior to the application of the said accounting standard,
etc. 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,
2023

230,535

107,003

46.4

2,967.35

As of October 31,
2022

226,854

107,39247.3

2,906.99(Reference) Equity (millions of yen)
As of October 31, 2023
As of October 31, 2022

107,003107,392

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 thesematerials are based on information currently available to the Company and on certain
assumptions deemed to be reasonable. The Company does not guarantee the achievementof 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 7of 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 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 11, 2023. Following the meeting, the Company will upload the meeting
highlights and discussion (voice recording) on the Company’s website as quickly as possible,
together with the Earnings Briefings materials used that day.

 3



○ Attachments Table of Contents

1. Overview of Operating Results and Others........................................................... 5(1) Overview of Operating Results and Others for the Fiscal Year Ended October
31, 2023 ····································································································· 5(2) Overview of Financial Position for the Fiscal Year Ended October 31, 2023··········· 6(3) Overview of Cash Flows for the Fiscal Year Ended October 31, 2023 ··················· 6(4) Future Outlook ····························································································· 7
2. Basic Policy Regarding Selection of Accounting Standards ..................................... 8
3. Consolidated Financial Statements and Significant Notes Thereto ........................... 9(1) Consolidated Balance Sheets ········································································· 9(2) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income··············································································· 11(Consolidated Statements of Income) ······················································· 11(Consolidated Statements of Comprehensive Income) ································ 12(3) Consolidated Statements of Changes in Equity ··············································· 13(4) Consolidated Statements of Cash Flows ························································ 15(5) Notes to the Consolidated Financial Statements ············································· 18(Notes Relating to the Going Concern Assumption) ········································· 18(Segment Information) ··············································································· 18(Per Share Information) ·············································································· 21(Material Events after the Close of the Fiscal Year) ········································· 22

 41. Overview of Operating Results and Others(1) Overview of Operating Results and Others for the Fiscal Year Ended October 31, 2023

During the fiscal year under review, Japan’s economy showed signs of a gradual recovery due
to the normalization of economic activities accompanying the easing of regulations that were
implemented in response to COVID-19. However, the outlook remained uncertain due to rising
raw material prices caused by unstable international conditions as well as due to global
monetary tightening, fluctuations in financial and capital markets and other factors.
In the construction industry in which the Group is involved, construction investment was
relatively steady due to a gradual recovery of private sector construction investment in addition
to stable public sector investment. However, in addition to concerns about delays in equipment
supply due to rising construction costs and semiconductor supply shortages, the situation stillrequires monitoring mainly regarding restrained capital investment due to an economic
recession.
In such circumstances, in order to achieve the goals of its Medium-Term Corporate
Management Plan “Creative 60” (FY2020-2024), the Group promoted regional strategies toenhance profit margins and maximize synergistic effects by efficiently using management
resources, and also promoted reorganizing the organizational structure and strengthening
collaboration between departments, strengthened the asset management system in order toimprove utilization rates and optimize the rental unit price, advanced its execution andmanagement capabilities, and worked to expand the stable earnings foundation.
Consequently, in the fiscal year ended October 31, 2023, the Group reported net sales of¥197,481 million, an increase of 5.0% year on year. On the earnings front, partly due toinvestment in human resources in preparation for the future in addition to increases in
depreciation and selling, general and administrative expenses caused by an absorption-typemerger within the Group, operating profit was ¥11,958 million, a decrease of 9.6% year on year,
ordinary profit was ¥12,488 million, a decrease of 9.4% year on year, and profit attributable toowners of parent was ¥6,721 million, a decrease of 19.5% year on year.
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 there
were differences by region, the strength of rental demand for construction equipment hascontinued to return due to the progress of various types of large-scale projects, such as theconstruction of semiconductor plants in Hokkaido and Kyushu, and security-related
construction in addition to the continuation of redevelopment work in urban areas,
extension projects for bullet trains and renewable energy-related work.
In addition to pursuing more efficient use of its assets in order to strengthen its ability torespond to various types of construction projects, etc., the Group also worked to solve
issues related to the stable supply of rental equipment in relation to the increase of
construction demand while it promoted technological development and business alliances
aimed at realizing DX at construction sites and reducing environmental impact.
As a result, sales by region in this business were up 1.1% in the Hokkaido Region, up
8.4% in the Tohoku Region, up 5.0% in the Kanto & Koushinetsu Region, up 1.2% in the
Nishi-nihon Region, and up 8.7% in the Kyushu & Okinawa Region.
Used construction equipment sales increased 5.0% year on year, as Kanamoto proceededwith sales in accordance with the initial plan in order to maintain an appropriate asset mix
while carrying out the extension of the rental equipment operation period.

 5

Reflecting these factors, the Group posted net sales in the construction-related businessesof ¥178,087 million, an increase of 4.5% year on year, and operating profit of ¥10,309
million, a decrease of 10.4% year on year.
< Other businesses >In the Group’s other businesses, net sales was ¥19,393 million, an increase of 10.2%
year on year, and operating profit was ¥1,144 million, a decrease of 7.1% year on year, 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 as planned.
(2) Overview of Financial Position for the Fiscal Year Ended October 31, 2023

(Assets)
Total assets at the end of the fiscal year under review stood at ¥316,440 million, an increaseof ¥11,120 million compared with the end of the prior fiscal year. This was primarily due to anincrease of ¥10,069 million in rental equipment.
(Liabilities)
Total liabilities stood at ¥172,763 million, an increase of ¥8,054 million compared with theend of the prior fiscal year. This was primarily due to increases of ¥2,362 million in notes andaccounts payable - trade, ¥1,221 million in accounts payable - other, ¥1,137 million in longterm borrowings, and ¥1,203 million in long-term accounts payable - other.
(Net assets)
Total net assets stood at ¥143,677 million, an increase of ¥3,065 million compared with theend of the prior fiscal year. This mainly reflects the posting of profit attributable to owners ofparent of ¥6,721 million. Meanwhile, there were decreases of ¥2,739 million due to dividendsof surplus and ¥1,960 million due to purchase of treasury shares, etc.
(3) Overview of Cash Flows for the Fiscal Year Ended October 31, 2023
(Millions of yen)
FY Ended October 2022
(Prior fiscal year)

FY Ended October 2023
(Fiscal year underreview)

Change from prior year

Net cash provided by (used in)operating activities

33,15837,9604,802

Net cash provided by (used in) investing
activities-11,331-6,6994,631

Net cash provided by (used in) financing
activities-30,893-33,995-3,101

Net increase (decrease) in cash andcash equivalents-8,790-2,685

6,104

Cash and cash equivalents at beginningof period

55,55747,047-8,510Cash and cash equivalents at end of
period47,04745,093-1,953The balance of cash and cash equivalents (“cash”) at the end of the fiscal year under review
was ¥45,093 million, a decrease of ¥1,953 million compared with the end of the prior fiscal
year. Cash flows for the fiscal year under review are discussed below.
(Net cash provided by (used in) operating activities)
Cash provided by operating activities stood at ¥37,960 million, an increase of 14.5% fromthe prior fiscal year. This was primarily attributable to the following: profit before income
taxes of ¥12,106 million, depreciation of ¥34,252 million, as well as purchase of rental
equipment of ¥5,623 million, decrease (increase) in trade receivables and contract assets
of a negative ¥5,456 million, and income taxes paid of ¥3,674 million.
 6(Net cash provided by (used in) investing activities)
Cash used in investing activities was ¥6,699 million, compared with ¥11,331 million usedin the prior fiscal year. This mainly reflected the posting of ¥5,254 million for purchase ofproperty, plant and equipment.
(Net cash provided by (used in) financing activities)
Cash used in financing activities was ¥33,995 million, compared with ¥30,893 million usedin the prior fiscal year. This mainly reflected proceeds from long-term borrowings of ¥14,205
million, repayments of long-term borrowings of ¥15,511 million, repayments of installment
payables of ¥26,185 million, and dividends paid of ¥2,739 million.
(Reference) Trends in Cash Flow Indicators
FY Ended October FY Ended October FY Ended October FY Ended October
2020
2021
2022
2023
Equity ratio (%)

39.5

41.8

43.2

42.5

Equity ratio on a market capitalizationbasis (%)

26.9

30.3

26.0

27.7

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

3.0

2.9

3.5

3.1

Interest coverage ratio (times)

74.3

54.1

47.1

48.0

(Notes) 1. Equity ratio:
Equity / Total assets
Equity ratio on a market capitalization basis:
Shareholders’ equity on a market capitalization basis / Total
assetsRatio 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 theend 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 areused for operating cash flow in the table above. Interest-bearing liabilities include allliabilities posted to the consolidated balance sheets that incur interest. Interest
expenses in the consolidated statements of cash flows are used for interest paymentsin 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 toremain steady and private sector construction investment is also expected to continue its
recovery trend, the situation needs to continue to be closely monitored due to the impact of
global monetary tightening and geopolitical risks as well as due to concerns that rising
construction costs and other factors will dampen the recovery in demand. In addition, equipment
procurement costs and maintenance costs continue to increase due to rising material prices,
crude oil prices, etc., and challenging conditions are expected to remain in the businessenvironment.
In such circumstances, to achieve the goals of its Medium-Term Corporate Management Plan
“Creative 60” (FY2020-2024), the Group will focus on effective asset management and 7 

strengthening the management system while optimizing the rental unit price using the system,and strive to continue measures for enhancing utilization rates, based on the promotion of three
key measures: expansion of domestic bases for operations, overseas expansion, andoptimization of internal operations. Moreover, in addition to developing and introducing
technology that can be applied to labor-saving, efficiency and safety measures at sites,
environmental measures, etc., the Group will work to provide high-quality services and increase
added value by actively engaging in business alliances.
Through the above measures, for the fiscal year ending October 31, 2024, the Group aims fornet sales of ¥205.3 billion, a growth of 4.0%, and on the earnings front, it aims for operating
profit of ¥14.1 billion, a growth of 17.9%, ordinary profit of ¥14.3 billion, a growth of 14.5%,
and profit attributable to owners of parent of ¥8.3 billion, a growth of 23.5%, partly due toinvestment in human resources in preparation for the future in addition to effective growthinvestment based on the business environment.

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.

 83. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated Balance Sheets(Millions of yen)
As of October 31, 2022 As of October 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable trade, and contract assets
Electronically recorded monetaryclaims - operating
Merchandise and finished goods
Raw materials and supplies
Construction machine parts
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Rental equipment
Accumulated depreciation
Rental equipment, net
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment andvehicles, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant andequipment
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

 9

47,56545,611

38,452

41,048

8,025

11,474

1,729
1,432
17,0474,098-284
118,066

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

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

308,318-197,632
110,685
47,935-27,522
20,413
10,550-8,798

1,576

1,752

38,6884,570-2,3052,265

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

161,728

173,977

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

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

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

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

(Millions of yen)
As of October 31, 2022 As of October 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-termborrowings
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
incomeValuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

 10



33,714980

36,077900

13,913

14,600

1,444
1,957
1,579
24,853
4,022
82,465

1,645
2,657
1,676
26,075
3,992
87,62434,6593,179
41,121
374
657
2,095
154
82,242
164,708

35,796
3,626
42,324
354
686
2,288
60
85,139172,763

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

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

2,181

2,983

–

0

2,198

2,343

-37

-30

4,342

5,296

8,652
140,611305,320

9,181
143,677
316,440

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

Fiscal year ended
October 31, 2023

188,028
132,196
55,831

197,481
140,630
56,85042,60244,892

13,22911,958

62
180
35
77
77
262

70
211
69
77
57
111

40

83

349
1,086

316
998

102
38
62
122

127
39
73
–

19

–

190
536
13,780228
468
12,488

19
–

57
221

6

0

34
–
135
196

–
7
–
287

–

195

222

467

4

6

174

–

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

668
12,106
4,480
184
4,664
7,441
720
6,721

Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Insurance claim income
Rental 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 investment securities
Gain on sale of shares of subsidiaries
and associates
Gain on revision of retirement benefit plan
Gain on receipt of donated non-current assets
Gain on extinguishment of tie-in shares
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on sale and retirement of noncurrent assets
Loss on valuation of investment
securities
Loss on valuation of shares ofsubsidiaries and associates
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 11

(Consolidated Statements of Comprehensive Income)(Millions of yen)

Fiscal year ended
October 31, 2022

Fiscal year ended
October 31, 2023

9,056

7,441

-67

814

-0
1,657

0
144

30

9

1,620
10,676

968
8,410

9,957

7,675

718

734

ProfitOther comprehensive income
Valuation difference on available-forsale securities
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

 12



(3) Consolidated Statements of Changes in Equity

Prior fiscal year (From November 1, 2021 to October 31, 2022)(Millions of yen)
Shareholders’ equity

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Share capital

Capital surplus

17,82919,326

Retained earnings

Treasury shares

89,048

Total shareholders’equity-1,978124,226-0
17,82919,326-0

89,048-1,978124,226

Changes during period
Dividends of surplus-2,994-2,994

Profit attributable toowners of parent

8,345

8,345

Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Purchase of treasury
sharesRestricted stockcompensation
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

55-2,000-2,000

33

33

0

–

6

5,350

-1,967

3,389

17,82919,332

94,399-3,945

127,616

Accumulated other comprehensive income

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges2,2490RemeasureTotal
ments ofaccumulated
definedotherbenefitcomprehenplans
sive income

Foreigncurrencytranslation
adjustment
541

-60

2,729

Noncontrollinginterests

Total net
assets

7,960

134,917
-0

2,249

0

541

-60

2,729

7,960

134,917

Changes during period
Dividends of surplus–-2,994

Profit attributable toowners of parent

–

8,345

–

5

–

-2,000–33

Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Purchase of treasury
sharesRestricted stockcompensation
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

-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 13Current fiscal year (From November 1, 2022 to October 31, 2023)(Millions of yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

17,82919,332Retained earnings

Treasury shares

94,399Total shareholders’equity-3,945

127,616

Changes during period
Dividends of surplus-2,739-2,739Profit attributable toowners of parent

6,721

6,721

Change in scope of
consolidation

-538

-538

Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Purchase of treasury
sharesRestricted stockcompensation
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

98

98-1,999-1,999

39

40

0

–

99

3,443

-1,9601,582

17,82919,432

97,842-5,906

129,198

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges2,181–

RemeasureTotal
ments ofaccumulated
definedotherbenefitcomprehenplans
sive income

Foreigncurrencytranslation
adjustment
2,198

-37

4,342

Noncontrollinginterests

Total net
assets8,652

140,611

Changes during period
Dividends of surplus–-2,739Profit attributable toowners of parent

–

6,721

Change in scope of
consolidation

–

-538

–

98

–

-1,999–40

Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Purchase of treasury
sharesRestricted stockcompensation
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

802

0

144

7

953

528

1,482

802

0

144

7

953

528

3,065

2,983

0

2,343

-30

5,296

9,181

143,677 14

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
October 31, 2022

Fiscal year ended
October 31, 2023

13,574
31,912–615

12,10634,252
195
638

202

409

775

1,217

-769

-1,059-5,645-5,623

–

-221

4

6

174

–

-135

–

-6

-0

45

-100

14

65

24

-6

-243

-281

598

662

102
-238

127
-104

520

-5,456-15-3,736

223
2,017

2,105

2,454

-1,28038,601245-704-4,985625
42,147278-790-3,67433,15837,960Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Loss (gain) on sale and retirement of
non-current assets
Cost transfer resulting from sale ofrental equipment
Purchase of construction equipment andmaterials
Purchase of rental equipment
Loss (gain) on sale of investment
securities
Loss (gain) on valuation of investment
securities
Loss on valuation of shares ofsubsidiaries and associates
Loss (gain) on extinguishment of tie-insharesLoss (gain) on sale of shares ofsubsidiaries and associates
Increase (decrease) in allowance for
doubtful accounts
Increase (decrease) in provision forbonuses
Increase (decrease) in retirement
benefit liability
Interest and dividend income
Assets buy on the installment planpurchase payment interest for rentals
Interest expenses
Foreign exchange losses (gains)
Decrease (increase) in trade receivables
and contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts
payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in)operating activities

 15



(Millions of yen)
Fiscal year ended
October 31, 2022

Fiscal year ended
October 31, 2023

-722

-747

741

747

-301

-24

25

358

-4,793-5,254

35

80

-471
-815

-331
-742

22

16

-5,761

-793

583

176

126

–

0

-183

-11,331-6,699Cash 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 andequipment
Proceeds from sale of property, plantand equipment
Purchase of intangible assets
Purchase of shares of subsidiaries
Proceeds from sale of shares ofsubsidiaries and associates
Loan advances
Proceeds from collection of loans
receivableCollection of long-term accounts
receivable - other
Other, net
Net cash provided by (used in)investing activities

 16



(Millions of yen)
Fiscal year ended
October 31, 2022

Fiscal year ended
October 31, 2023

-24

–

20

-80

15,894-14,684-25,686-1,397-2,000-2,993

14,205-15,511-26,185-1,576-1,999-2,739

-20

-22

–

-84

-30,893-33,995276

48-8,790-2,68555,55747,047

279

–

–

731

47,04745,093

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-controllinginterests
Purchase of shares of subsidiaries not
resulting in change in scope of
consolidation
Net cash provided by (used in)financing activities
Effect of exchange rate change on cash
and cash 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 withunconsolidated subsidiaries
Increase in cash and cash equivalents
resulting from inclusion of subsidiaries in
consolidation
Cash and cash equivalents at end of
period 17(5) Notes to the Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(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 areview 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 the Construction 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 otheritems of each reporting segment
Except for the Standard for Measurement of Inventories, the accounting standards andmethods for the reported business segment comply with accounting standards that havebeen 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.

 18



3. Information concerning the amount of net sales, income or loss, assets, liabilities and otheritems of each reporting segment, and information on disaggregation of revenue
Prior fiscal year (From November 1, 2021 to October 31, 2022)(Millions of yen)
Reportingsegment
Business related
to theConstruction
Equipment Rental
Division
Net sales
Rental contracts

Other businesses(Note)

Total

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

Net sales to outside customers

170,433

17,594

188,028

Net sales or transfers between
related segments

–

–

–

170,433

17,594

188,028

Segment income

11,508

1,232

12,740

Segment assets

234,029

11,773245,802

Other items
Depreciation

30,224

1,206

31,430

615

–

615

31,144

2,295

33,439Other revenues

Total

Amortization of goodwill
Amount of increase of property,
plant and equipment andintangible assets(Note) The “Other businesses” classification encompasses business segments not included in thereporting segment, and includes business related to the Steel Sales Division and business
related to the Information Products Division, welfare-related business and otherbusinesses.

 19



Current fiscal year (From November 1, 2022 to October 31, 2023)(Millions of yen)
Reportingsegment
Business related
to theConstruction
Equipment Rental
Division
Net sales
Rental contracts

Other businesses(Note)

Total

126,751

7,744

134,496

Sales of merchandise and finishedgoods

37,171

10,52147,693

Other

14,042

1,127

15,170177,965

19,393

197,359

121

–

121

Net sales to outside customers

178,087

19,393

197,481Net sales or transfers between
related segments

–

–

–

178,087

19,393

197,481

Segment income

10,3091,144

11,454

Segment assets

250,759

13,637

264,397

32,507

1,338

33,845

638

–

638

39,184

1,995

41,180

Revenue from contracts withcustomers
Other revenues

Total

Other items
Depreciation
Amortization of goodwill
Amount of increase of property,
plant and equipment andintangible assets(Note) The “Other businesses” classification encompasses business segments not included in thereporting segment, and includes business related to the Steel Sales Division and business
related to the Information Products Division, welfare-related business and otherbusinesses.
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 of Difference)(Millions of yen)
Net sales

Prior fiscal year

Current fiscal year

Reporting segment total

170,433

178,087

Net sales for “Other businesses” classification

17,594

19,393––

188,028

197,481Intersegment eliminations
Net sales reported in the consolidated financial
statements

 20



(Millions of yen)
IncomePrior fiscal year

Current fiscal year

Reporting segment total

11,50810,309

Income for “Other businesses” classification

1,232

1,144

489

504

13,22911,958Other adjustments
Operating profit reported in the consolidated financial
statements(Millions of yen)
AssetsPrior fiscal year

Current fiscal year

Reporting segment total

234,029

250,759

Assets of “Other businesses” classification

11,773

13,637Company assets (Note)

59,51752,043

Total assets reported in the consolidated financial
statements

305,320

316,440(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

Amount of adjustment

Amount reported in the
consolidated financial
statements

Other items
Prior fiscal
year

Current
fiscal year

Prior fiscal
year

Current
fiscal year

Prior fiscal
year

Current
fiscal year

Prior fiscal
year

Current
fiscal year

Depreciation

30,22432,507

1,206

1,338

481

406

31,912

34,252

Amount of increase ofproperty, plant andequipment andintangible assets

31,144

39,184

2,295

1,995

36

393

33,475

41,573(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 fiscal year
Current fiscal year
(From November 1, 2021 to October 31, 2022) (From November 1, 2022 to October 31, 2023)
Net assets per share¥3,571.98 Net assets per share¥3,729.73

Earnings per share¥224.64 Earnings per share¥185.40

Earnings per share on a fully
diluted basis–

Earnings per share on a fully
diluted basis

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

 21Same as at left–(Note)The basis for calculating earnings per share is as follows.
(Millions of yen, unless otherwise noted)
Current fiscal year
Prior fiscal year
(From November 1, 2021 to (From November 1, 2022 to
October 31, 2023)
October 31, 2022)

Profit attributable to owners ofparent

8,345

6,721

Amount not attributed to commonshare shareholders––

Profit attributable to owners ofparent related to common shares

8,345

6,721

Average number of shares
outstanding during the fiscal year
(Shares)

37,148,669

36,254,078(Material Events after the Close of the Fiscal Year)(Purchase of treasury shares)
At a meeting of the Board of Directors held on December 8, 2023, based on the provisionsof Article 156 of the Companies Act, as applied by replacing the relevant terms pursuant to
the provisions of Article 165, paragraph (3) of the same Act, the Company resolved mattersrelating to the purchase of treasury shares as follows.
1. Reason of purchase of treasury shares
To enhance shareholder returns and improve capital efficiency, while also enabling flexible
capital policy to be executed in the future.
2. Details of matters relating to purchase(1) Type of shares to be purchased(2) Total number of shares to be purchased

Common shares of the Company
900,000 shares (maximum)(2.50% of the total number of shares
outstanding, excluding treasury shares)(3) Total acquisition price of shares to be purchased ¥2.0 billion (maximum)(4) Acquisition period
December 11, 2023 - August 30, 2024
(5) Acquisition method
Purchase by stock exchange market

 22