INTEGRATED REPORTHead Oﬃce／
1-19, Odori Higashi 3-chome Chuo-ku, Sapporo, Hokkaido 060-0041 Japan
Business Coordination Headquarters／
1-7-7, Shiba Daimon, Minato-ku, Tokyo 105-0012 Japan
https://www.kanamoto.co.jp

2023
INTEGRATEDREPORT
2023

Published in March 2023

Mission Statement

Action guidelines

Kanamoto has not only fostered growth together with the Japanese economy
but also done everything in its power to build infrastructure and aid
in countless disaster recovery eﬀorts.
We consider it our mission to capitalize on our experience in an eﬀort
to support reconstruction in the wake of disasters from the Great East Japan
Earthquake and the Kumamoto Earthquake to the typhoons and torrential rains

Our steadfast action guidelines̶the Kanamoto Corporate Philosophy
̶chart our course for the next 50 to 100 years.
１.Pursue innovation and mobilize every resource to energize our company
２.Always remember Kanamoto competes for proﬁts
３.Maintain a self-directed and independent mind

The ﬁrst guideline demonstrates our vision as an organization. The second embodies our role as acorporate organization to generate earnings. The third stresses the importance of not only thinking

aﬄicting various regions of Japan.

for yourself but taking initiative. All of our employees embody the spirit of these action guidelines as

Much of the infrastructure in Japan is also in dire need of repair or replacement.

The drive to maintain growth while responding to the bewildering changes in the business environ-

Our Group will always unify in an eﬀort to ensure the safety and security of Japan.

principles inspiring the entire Kanamoto Group.
ment lies in our action guidelines, which have supported our history as a type of corporate philosophy. The pursuit of innovation without fear of breaking convention requires our employees to continuously renew their way of thinking. We must also expand and deepen the ﬁelds we take on. We are
conﬁdent that by never wavering from these action guidelines will lead Kanamoto to new horizons.

Another of our missions is to foster sustainable growth.
We will continue to expand our domestic business platform
and promote overseas developmentin the pursuit of reaching our full potential.

Evolution into a Stronger Kanamoto Group
Group Corporate Philosophy

Become an excellent, dynamic corporate group that uses its solid earnings
as a base to reward shareholders, customers and employees.

Group Vision

Build a foundation for sustainable growth.

Group Value● Become a true general construction equipment rental company● Act as a large-scale rental mall that functions as a centralized site for specialty stores● Accumulate and share all types of solutions

Editorial Policy

CONTENTSThe Kanamoto Integrated Report emphasizes operating performance, business summaries and other ﬁnancial data as

4Introduction

10

History of Creating and Evolving
Corporate Value(ESG Initiatives)

36

ESG Management

12

Kanamoto in Numbers

38

Environmental Activities

14

Ten-Year Summary (Consolidated)

40

TCFD Initiatives

16

Business Overview

42

Social Activities

18

Kanamoto Value Creation Process

44

Governance

20

Actualization of the "Creative 60"
Medium-Term Management Plan

50

Board of Directors

02 Kanamoto 2023

Sustainability Section

Facts and Data
52

Financial Section

58

Branch Network

59

Alliance Group60

Corporate Proﬁle61

Organization Chart

62

Corporate History

63

Stock Information

well as other non-ﬁnancial data such as Environmental, Social, and Governance (ESG) which act as a foundation supporting growth. We hope to oﬀer all shareholders, investors and other stakeholders a multifaceted view of sustainablegrowth at the Kanamoto Group.
Our editorial team publishes this report with reference to the International Integrated Reporting Framework advocatedby the International Integrated Reporting Council (IIRC).

Forward-Looking Statements
Certain information other than historical facts set forth in this report contains forward-looking information based on
currently available information as part of the plans, strategies and other activities of Kanamoto Co., Ltd. The
forward-looking statements included herein may diﬀer substantially from actual management and operating performance due to various known and unknown risks and uncertainties.
●The consolidated ﬁnancial statements in this report comply with the current accounting standards of Japan.
● Figures less than one-million yen are rounded down in this report.

Kanamoto 2023 03

Message from the President

Becoming the World's
Top 5 General Construction
Equipment Rental Companies
by Combining
the Full Strengths of theKanamoto Group
Tetsuo Kanamoto
President and CEO
Kanamoto Co., Ltd.

Kanamoto Group Strengths
Building a stable managementbase with high technicalcapabilities
The Group's greatest strength lies in its high level oftechnical capabilities.
Rather than consolidating our maintenance staﬀ intoarea-based centers, we assign them to the plants ofeach of our sales oﬃces, where they perform meticulous
maintenance on a daily basis. Uncompromising
maintenance also helps increase the longevity ofrental assets and enhance the asset value ofequipment sold in the used equipment market. In
the rental business, a key to success is to have asuﬃcient amount of available assets in a goodcondition. Through our complete maintenancesystem and the high level of skill and loyalty of ourmaintenance staﬀ, we have successfully met thischallenge and created a stable business foundation.
P.16 Reliable Maintenance Systems Set Up at Every Branch〉

Our Company was established in Muroran City,
Hokkaido, in 1964, the year of the Tokyo Olympics.
Since then, with construction equipment rental as
our core business, we have continued to growtogether with the Japanese economy, developing
sales oﬃces throughout Japan, and also expanding
business overseas since 2006. In our nearly 60 yearsof history, we have responded to the needs ofsociety by contributing not only to infrastructuredevelopment but also to numerous disasterrecoveries.
〉P.10〜11 History of Kanamoto's Evolution
P.24 Kanamoto Group Recovery and Reconstruction Activities

Construction equipment rental
is an infrastructure business
indispensable to society
From a broad scope, we can see that construction
equipment rental has become an integral part of theconstruction industry, an infrastructure business thatis indispensable to society. It cannot be said,
however, that public recognition of the construction
equipment rental business is high. As one of theearliest corporations to engage in this business andpioneer the market, we hope to contribute tosolving issues facing the construction industry andsociety, such as addressing construction DX anddecarbonization, and to create and provide newvalue, thereby increasing public awareness of theGroup. We intend to continue to build theKanamoto Brand, in which our customers andshareholders place their trust and expectations.

At the Kanamoto Group, we take pride in maintenanceand technological development, both of which aresupported by people. The Group s corporate
culture of placing priority on people is deeply
rooted in our Company, and has created a culture oforiginality and ingenuity at each sales oﬃce andamong the teams in each job category. We believethat Kanamoto Group's human resources, who havedeveloped in this environment, are directly
connected to our customers and fully appreciate theon-site needs of construction projects, and that thisis how our technology is reﬁned and innovation isborn. The availability of human resources is one of
our strengths, and we will continue to focus onhuman resource development in the future.
P.42〜43 Developing and Strengthening Excellent Human Resources〉

Development capabilities
to create what is needed
on-siteProviding 620,000 itemswith One-stop Solution &full support

We have established a system that directly links
development with on-site requests by assigning asales employee in each area who also serves in the
New Products Oﬃce, a department for technologicaldevelopment. We have developed many devices
and systems for remote control and safetyassurance. In recent years, we have been working
on research and development of new systems andequipment for construction DX in collaboration withdiverse companies across industry boundaries.
One of the Group's strengths is its development
capability to meet the needs of construction sites.

Along with our technical capabilities, One-Stop
Solution is among our strengths.
We have always worked hard to fully support ourcustomers, with approximately 1,100 models and620,000 rental items in our possession, so that wecan provide everything needed at construction sites.
Furthermore, in order to respond to the increasing
sophistication and specialization of on-site needs,
the Group is strengthening its solutions capabilities
through alliances and mergers and acquisitions withcompanies that possess highly specialized
technologies.

Introduction
Continuing to respondto the needs of society
through our business

A unique corporate culturethat nurtures humanresources

P.28〜29 Kanamoto's Construction DX Initiatives〉

P.16 A Full Line-up of Roughly 620,000 Rental Items in Japan〉〉P.18〜19 Kanamoto Value Creation Process

04 Kanamoto 2023

Kanamoto 2023 05

Message from the President

Business Environment
Needs changing from new construction tomaintenance and repair
In the market environment surrounding theconstruction equipment rental business, trends inconstruction investment are what we are watching
most closely. In the short term, we expect bothpublic and private investment to remain ﬁrm.

industry, but also respond to the needs of society,and therefore, we intend to act proactively.
P.28〜29 Kanamoto's Construction DX Initiatives〉

Business Report,

Outlook for the Current
Fiscal Year
Signs of becoming a truly
extensive general rental
company

P.22〜23 The High Level of Construction Demand〉

However, the structure of construction demand andthe content of needs are changing dramatically. Oneof these major changes is a shift in demand fromnew construction to maintenance and repair. In oureﬀorts to cope with the increase in repair work, weare reviewing everything having to do with our rental
equipment lineup, maintenance methods and sales
channels, while also developing and introducing
new products and technologies to extend the life of
infrastructure.
P.26〜27 Improvement of Maintenance Productivity andTechnological Development〉

Lineup for construction DX
and environmental measures
Another major change is the growing need forequipment utilizing IoT/ICT, remotely controlled
equipment, and environmentally friendly equipment.
We can expand our business by responding to thischanging need ahead of time and oﬀering the latest
equipment in our lineup. Our lineup of equipmentthat responds to the progress of construction DX
and reduces environmental impact will not only
contribute to solving issues in the construction

Unfortunately, the results for the (58th) ﬁscal year
ended October 31, 2022 were by no meanssatisfactory from a quantitative standpoint. Even
though we were impacted by the unexpectedcircumstances of the COVID-19 pandemic, thefailure to achieve the ﬁgures we committed to as alisted company is a major negative, and we take itvery hard.
Qualitatively, on the other hand, we see this as an
unwavering ﬁrst step toward becoming a general
rental company. In terms of expanding our domestic
base of operations, we were able to enhance oursolution capabilities in various ﬁelds by bringing
SOOKI Co., Ltd. into the Group through M&A. In
terms of overseas expansion, the Company was able
to strengthen the foundation of its overseas
business by acquiring Porter Plant Group in Australia
through an M&A transaction. We will use these
initiatives as a starting point as we continue to aim
to become a truly extensive general rental company.
P.52〜57 Report of Business Operations for the 58th Business Period〉

Increasing revenue and proﬁt
is a key mission for the ﬁscal
year ending October 31, 2023
With construction demand in Japan remaining ﬁrm,
we believe that increasing revenues and proﬁts inthe ﬁscal year ending October 31, 2023 is an
important mission. By area, Hokkaido and Kyushu
are densely packed with large-scale construction
projects. In Hokkaido, there are redevelopment
construction projects, the extension of the Hokkaido
Shinkansen line, as well as wind power generation

06 Kanamoto 2023

and renewable energy-related projects. Major
projects under way in Kyushu include asemiconductor plant in Kumamoto, redevelopmentin central Fukuoka City, and security-related
projects. Both Hokkaido and Kyushu are regions
where the Group has a large market share, andwhere we must ensure that we increase our orders.
P.30〜31 Construction Demands by Region〉

Medium-Term

With respect to expansion of our domestic base ofoperations, we are pursuing a regional strategy thatprioritizes areas into which we have yet to advance,
and we are steadily increasing our market share inall ﬁve domestic regions. The Market Development
Oﬃce of our Business Coordination Headquarters is
studying and considering where to locate sales
oﬃces, and will continue to develop new oﬃces in atimely and appropriate manner. We also intend to
execute mergers and acquisitions strategically andproactively when necessary.

Focus on establishingfoundation in the Asia andOceania region

Management Plan
Aiming to expand
market share in all ﬁve
regions of JapanThe Medium-Term Management Plan Creative 60(FY2020‒2024), which we are currently working on,
has three key missions: (1) expansion of ourdomestic base of operations, (2) overseas
expansion, and (3) optimization of internal
operational processes. In ﬁscal 2023, the fourth
yearof the "Creative 60" initiative, we will continue
to further explore these three missions andstrengthen our eﬀorts.
P.20〜21 Realization ctualization of the Medium-Term
Management Plan Creative 60〉

In terms of overseas expansion, our top priority is tobuild an earnings base in the Asia and Oceania
region. The eﬀects of the COVID-19 pandemic are
subsiding, and we are putting systems in place forfurther expansion. Next, in Australia, which weentered in 2020, we are focusing eﬀort on
establishing a business foundation while keenly
watching for new M&A opportunities.
P.32〜33 Construction Demands in the Asia and Oceania Region〉

In China, where potential demand is high, we havebeen building sale foundation while balancing risk
and proﬁt since establishing a new company in2017.

Kanamoto 2023 07

Message from the President

Centralized asset managementof four construction equipment
rental companies within the GroupOne particular focus of our optimization of internal
operational processes is systems renewal. This isintended to improve asset eﬃciency by centralizing
management of the assets of the Group's fourconstruction equipment rental companies. We
expect to see the eﬀects of this optimization not
only improving rental equipment utilization rates, butalso in other various areas, such as investment
planning and decisions on when to sell theequipment.
P.34 Optimization of Internal Operational Processes〉

Aiming to becomea rental mall where specialty
shops gather
Under "Creative 60", the theme for the three years
from ﬁscal 2022 onward is "Toward a Strong
Kanamoto Group." Our intention is to become a true
general rental company, enabling our customers toassume that, "Kanamoto can handle any request."
Kanamoto Group aims to make itself a rental mall of
select specialty shops, rather than a general-purpose
department store. Under this strategy, we have
expanded the breadth and depth of our businessdomain by bringing highly specialized companies
under the Group's umbrella through mergers andacquisitions.
P.58〜59 Branch Network and Alliance Group〉

Sustainable Management
The potential of the rental
business as an environmentallyconscious business
It is our responsibility as a public company tocontribute to the formation of a sustainable society.
What is important is not merely to follow social
trends in our work, but to properly associate themwith our business, into which we incorporate ourphilosophy and practices for a sustainable society.
P.35〜37 Important Themes in ESG〉

In terms of contributing to solving global environmental
problems, the rental business itself epitomizes thesharing economy, and we believe that it is abusiness that reduces environmental impact. We arealso playing a part in eﬀorts to decarbonize theconstruction industry overall, promoting initiatives
throughout our operations, such as replacing rental
equipment with exhaust-controlled and hybrid
equipment, and upgrading our own sales ﬂeet tolow-emission vehicles.
P.38〜41 Environmental Impact Reduction Activities〉

C onclusion
Continuing to take onchallenges and grow into
the future
Our growth to date has been the cumulative resultof our eﬀorts to follow the spirit of our Action
Guidelines, which can be said to express our
Corporate Philosophy. The Action Guidelines teachus that breakthroughs are born out of a culture that
accepts change and a spirit of independence andself-reliance, and also that we must continue to takeon challenges as we generate proﬁt and continue tooperate in a way that contributes to society. We
believe that adapting this spirit to the times andboldly taking on challenges is our path towardachieving continual growth by responding to therapidly changing business environment.
In order to continue to grow into the future, we willcontinue to take on the challenge of becoming oneof the ﬁve best construction equipment rental
companies in the world by marshaling the Group's
c o l l e c t i v e s t r e n g t h s , w h i l e b u i l d i n g a solid

foundation for generating proﬁts regardless of
ﬂuctuations in the business environment.

A company thatall stakeholders can relate to
We would like to grow as a company that is
sympathetic to all stakeholders and a company thatthey can relate to. In the future, we will continue tofulﬁll the Kanamoto Group philosophy to be an
excellent and dynamic corporate group that uses its
solid earnings as a base to reward shareholders,c ust omer s, and employe es. We wi l l stri ve to
become a true general construction equipment
rental company by executing the Medium-Term
Management Plan "Creative 60" extending until theﬁscal year ending October 31, 2024.
We would like to ask for the continued andunwavering support of our shareholders and otherinvestors.

A Governance structurethat contributes to sustainableenhancement of corporate value
The Kanamoto Group adopts various corporate
governance systems to implement the best andadvanced corporate governance system.
We have adopted an outside director system toensure more eﬃcient and sound management aswell as transparency about our decision making. The
executive oﬃcer system also better clariﬁes
supervision and accountability functions.
We will continue to build a governance structurethat contributes to the sustainable enhancement ofcorporate value by reviewing it as necessary in
response to changes in the external environment.
P.44〜49 Corporate Governance〉

08 Kanamoto 2023

Kanamoto 2023 09

History of Creating and Evolving Corporate Value

1983

History of Creating and Evolving
Corporate Value

Established branch in Chiba Prefecture(began branch development in the Kanto Region)

Hokkaido̶the center of steel manufacturing̶in October 1964. Over the years,
Kanamoto has pioneered change throughout the world and continued to spearhead its own evolution

Established the Construction Equipment Rental
Division Tokyo Oﬃce
(Bunkyo Ward, Tokyo)

and forming alliances to publicly listing company stock and entering into overseas markets.
This section introduces the historic growth trajectory always in step with change at Kanamoto.
* Please also see Corporate History (p. 62) for more detailed information about the history of Kanamoto.

1971

Kanamoto Shoten Co., Ltd. Established(Reorganization in Muroran, Hokkaido)

Began branch development in Hokkaido

Zenchu Kanamoto appointed President
and Chief Executive Oﬃcer, and Taichu
Kanamoto appointed Executive Director

Established branch in Aomori
Prefecture, marking the ﬁrst
expansion outside of Hokkaido(began branch developmentin the Tohoku Region)

Computer Divisionequipment roomin the 1980s

Began earnest executionof alliance strategy, including conclusion ofalliance with Machida Kikou Co., Ltd. andacquisition of Kanatech Co., Ltd. stock

Sapporo Securities Exchange on the day
Kanamoto's stock was listed

Hachinohe Oﬃce(now the Hachinohe Equipment Repair Center)

Company name changed
to Kanamoto Co., Ltd.

1973
Safe from Kanamoto's
sole proprietor era

Indigo blue dyed apron
from the Kanamoto Shoten era

Established new companies
in Thailand and Shanghai, China

Established branch in Fukuoka Prefecture(began branch development in Kyushu)

2020
Expanded
operations
into Australia

2007
Established branch in Hiroshima Prefecture(began branch development in the Chugoku
Region)Relocated head oﬃcefunctions to Sapporo,
Chuo Ward
Tokyo Stock Exchange on the day

2022
Transition to Tokyo Stock Exchange

Introduced special beneﬁts plan for shareholders

Kanamoto's stock was listed

KANAMOTO AUSTRALIAHOLDINGS PTY LTD

Prime Market

1980s

1990s

2000s

2010〜

Kanamoto comes into existence amid a period of
rapid economic growth as an archetype of theconstruction machine rental business of today.

Branch expansion begins and core businesses
transform, expand and penetrate new businessdomains.

The company grows into a publiccompany and fosters new growth
toward the information age.

Sapporo Securities Exchange and Tokyo Stock
Exchange list Kanamoto stock on the second
section before a ﬁrst section stock listing.

Kanamoto forms an alliance group and entersoverseas markets for the ﬁrst time.

Kanamoto celebrates its 50th anniversary andfurther hones its determination for innovation.

Left axis ：Non-consolidated net sales

Consolidated net sales

Consolidated net sales projection

Right axis：

Non-consolidated ordinary proﬁt

Consolidated Ordinary proﬁt

Consolidated ordinary proﬁt projection

1970

1964

Tokaido Shinkansen
operations begun
Tokyo Olympics held

1969

500

'67

'68

10 Kanamoto 2023

'69

'70

'71

'72

'73

'74

'75

'76

The International
Exposition, Tsukuba("Tsukuba '85") opened

1978

Tomei Expressway
opened to traﬃc overits entire length

Kansai International
Airport opened

1985

1998

'77

'78

'79

'80

'81

'82

2021

Hokkaido Shinkansen (between Shin-Aomori and
Shin-Hakodate-Hokuto) opened

2011

Linear Chuo Shinkansen Linedevelopment plan decided

Olympic Winter Games(Nagano Games) held

New Tokyo
International Airport(Narita Airport) opened

2016

2004

Kyushu Shinkansen opened

1994

Japan World Exposition
opened

1,000

'66

2017

1970s

¥100 million
2,000

0

Stock selected as a constituent issue for
the JPX-Nikkei Mid and Small Cap Index

1960s
Change in Net Sales/Ordinary Proﬁt

1,500

Former headquarters building (Muroran)
completed

Established subsidiary in Shanghai,
China and began expansion outside of Japan

Listed stock on the Second
Section of the Tokyo Stock
Exchange

Taichu Kanamoto
appointed President
and Chief Executive Oﬃcer

Tetsuo Kanamoto appointed President
and Chief Executive Oﬃcer, and Kanchu
Kanamoto appointed Chairman of theBoard and Representative Director

Expanded operations into Malaysia

2006

1996

1981

Stock selected as a constituent issue for
the JPX-Nikkei Index 400

Established branch in Kagawa Prefecture(began branch development in Shikoku)

Established branch in Osaka Prefecture (beganbranch development in the Kinki Region)

1972

Successively expanded operations
into Indonesia, Vietnam, Thailand, thePhilippines, and ASEAN countries

2018

2004

Established branch in Aichi Prefecture (beganbranch development in the Chubu Region)

Kanamoto Shoten in Kaigan-cho, Muroran2015

Kanamoto Hamamatsucho K Building（Business Coordination
Headquarters）

2000

Listed stockon the Sapporo
Securities Exchange

Tomakomai Sub-branch (now the Tomakomai Branch)

50th anniversary of Kanamoto's establishment

2016

Completed construction on the Kanamoto
Hamamatsucho
K Building

1991

1994

Celebration commemorating
elevation of stock to First Sectionof the Tokyo Stock Exchange

1999

Completed online
computer system network
linking all branches

1979

Changed stock trading unit size from
1,000 shares to 100 shares

Kanchu Kanamoto
appointed President and Chief ExecutiveOﬃcer, and Taichu Kanamoto appointed
Chairman of the Board and Representative
Director

1985

in many ways from transforming and expanding core businesses, developing strategic bases,

1964

Stock elevated to
the First Section of
the Tokyo Stock
Exchange

Launched Computer and Peripheral Equipment
Division as the Company's third operating
division (Tomakomai, Hokkaido; relocated to
Bunkyo-ku, Tokyo the following year)

The history of Kanamoto began in Muroran City,

2014

1998

2015

2020 Tokyo Olympics
and Paralympic Games held¥100 million
200

2018

Hokuriku Shinkansen(between Nagano andKanazawa) opened

150

Osaka selected as venue
for international exhibition(Osaka Expo) in 2025

100

50

'83

'84

'85

'86

'87

'88

'89

'90

'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

'18

'19

'20

'21

'22

'23

0

Kanamoto 2023 11

Kanamoto in Numbers

Kanamoto in Numbers
Kanamoto's strength is in our ability to support clients responsively.
These ﬁgures focus on the source of the company's responsiveness,

Group Market
Rankings and
Sales
〉P52

Domestic

2

Worldwide〉P58

13,229 million yen

Domestic

Overseas

locationslocations〉P16

12 Kanamoto 2023

Note: Number of qualiﬁcations
held is the cumulative
total of all qualiﬁcations(one person holding
multiple qualiﬁcations
are counted separately
for each of his or her
qualiﬁcations).
〉P43

550 23
Number of Alliance Group
Companies

Number of
Rental Itemsth188,028 million yen

Consolidated
operating proﬁt

Personnel(Certiﬁed)

Source：International Rental News (As of June 16, 2022)

Consolidated
Net Sale

Number of
Locations andGroup Companies

8ndincluding our nationwide location network, our technological capabilities, and other features.

Portable Generator
Mechanic

892 578(Total of Expert, 1st Class,and 2nd Class Mechanic)

Organic Solvent
Work Manager

Hazardous Materials
Handling Manager

385 418

Vehicle-type Construction Equipment Operators

4,433

Mobile Crane Operator

2,113

35 companies

1,100 models,
620,000 items

Approx.

Construction Equipment
Mechanic〉P60

Number of Employees
Non-consolidated

2,028

Consolidated

3,832

Average years of service*Excluding directors
and temporary or
part-time workers

11.9
Kanamoto 2023 13

Ten-Year Summary (Consolidated)

Ten-Year Summary (Consolidated)
Millions of yen
Consolidated operating results
Net sales
Operating proﬁt
Ordinary proﬁt
Proﬁt attributable to owners of parent
Plant and equipment investment
Consolidated ﬁnancial position
Total assets
Net assets
Consolidated cash ﬂows
Net 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 period

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

110,831
11,392
11,073
5,809
28,348125,555
16,454
16,0789,299
30,625133,292
16,27016,164
9,557
27,639144,870
15,134
14,405
8,098
29,441

158,428
16,665
17,193
10,744
26,584

168,188
17,59917,925
11,85735,136

180,694
17,842
18,277
11,43039,810179,053
14,25014,268
8,466
38,585

189,416
14,624
15,391
8,907
28,596

188,028
13,22913,7808,345
35,831

169,250
56,192

188,491
65,513

202,578
71,998220,540
81,434

227,155
91,788241,374
102,031

268,182
121,779

301,533
126,188

303,754
134,917305,320
140,61120,759(1,117)(6,532)
32,957

24,782(3,374)(22,405)
31,98033,509(4,488)(24,857)
36,15026,618(8,940)(20,726)
33,06937,788(4,747)(30,960)
35,16035,421(6,980)(26,858)
36,73339,146(5,989)(26,740)
43,51140,701(14,040)(22,204)
48,02339,351(3,373)(28,794)
55,55733,158(11,331)(30,893)
47,047

Information per share of common stockyen
175.501,513.49
20.00
11.4%

Net income per share
Net assets per share
Dividends per share
Dividend payout ratio

266.27
1,969.16
35.00
13.1%

258.02
1,758.24
35.00
13.6%

229.162,169.93
45.00
19.6%

335.54
2,707.49
60.00
17.9%

304.052,440.41
50.00
16.4%

224.64
3,571.98
75.00
33.4%

235.55
3,357.10
70.00
29.7%

221.45
3,150.30
65.00
29.4%

295.302,981.68
65.00
22.0%

Management index

Millions of yen
33,854
32.2%
12.3%
3.4%

EBITDA
Equity ratio
ROE
ROA
+

43,328
34.3%
14.4%
4.7%

41,503
33.6%
15.8%
4.9%

46,530
34.7%
11.1%
3.6%

Net Assets
Equity Ratio

EBITDA +53,863
39.6%
13.0%
4.9%

51,545
37.9%
13.2%
4.7%

ROE

ROA

60,000160,000

Millions of yen

％

50.0

20

％

％

45,000120,000

37.5

15

6

30,00080,000

25.0

10

4

15,00040,000

12.5

5

2

0

0

Millions of yen

0

'13

'14

'15

'16

'17

'18

'19

'20

EBITDA+＝ Operating proﬁt + Depreciation expense +Other depreciation and amortization expense +Low-price rental assets, and others

14 Kanamoto 2023

'21

'22

0

'13 '14'15 '16'17'18'19 '20

Net assets
Equity ratio
Equity ratio = Shareholders equity ÷ Total assets

'21

'22

56,241
43.2%
6.4%
2.7%

57,031
41.8%
7.2%
3.0%

53,785
39.5%
7.2%
3.0%

56,322
43.1%
10.8%
4.5%

8

'13

'14

'15

'16

'17

'18

'19

'20

ROE
ROE = Net income ÷ Shareholders equity = EPS ÷ BPS

'21

'22

0

'13

'14

'15

'16

'17

'18

'19

'20

'21

'22

ROA
ROA = Net income ÷ Total assets

Kanamoto 2023 15

Business Overview

Construction Equipment Rental Business

Other Businesses

Respond to Work Site Requests and Quickly Fulﬁll
Our Mission to Provide Rental
Equipment as Social Infrastructure
The construction business accounts for roughly 90% of
Kanamoto Group earnings.
This core business oﬀers services that respond to every
request received from construction sites, including civilengineering and construction.

We will broaden earnings opportunities
in a diverse range of sectors.
Kanamoto develops Steel Product Sales Business,
Information Product Rental Business,
welfare-related Business and a variety of otherbusinesses alongside its core equipment rental business.

90.6％

9.4％

FY2022
Percentage of net sales by business(consolidated)

FY2022
Percentage of net sales by business (consolidated)

Steel Product Sales BusinessInformation Products Rental Business

A Full Line-up of Roughly 620,000 Rental Items in Japan

Flexible Operating Decisions to Capitalize on Rent and Sale

Steel Product Supply Essential for Civil Engineering and Construction

Latest IT Rental Equipment Available at All Times

Kanamoto possesses roughly 620,000 rental equipment
items made up of approximately 1,100 diﬀerent models.
Whether construction machinery from hydraulic excavators
to dump trucks or temporary housing materials, generators,
or various hand tools, we have put together a line-up of
products that respond to every need. This broad line-up
not only includes diverse models but also a wide selectionof sizes and accessory options. Kanamoto works to provide
a full line-up of items and comprehensive support as a one stop shop
to satisfy the equipment procurement needs of our customers.

The basic business model for rental business is torecover investment outlays for the purchase of assets
through rental income before ultimately selling of theequipment. Easing depreciation and extending the lifeof assets have been key themes for boosting Kanamoto proﬁt margins. We also ﬂexibly judge the timing ofsales for used construction equipment models
in high demand according to global market
conditions.

The steel product sales business was a Kanamoto core business andthe roots of its founding. We primarily sell general steel, sheet pile,
single tube piping, and other steel products in Hokkaido. Kanamoto
also builds Autoclave Lightweight Concrete (ALC), extruded cement
panel, and other exterior walls, installs insulation, and executesvarious other specialized construction projects as well as sells andinstalls insulated waterproof KT roof systems and other construction
materials. Our Group acts as both a material supplier and construction contractor to help customers minimize tedious preparations
and cut costs. The Steel Sales Division will always supply thehigh-quality steel products essential to the civil engineering andconstruction work that supports infrastructure and our livelihoods.

The Information Products Rental Business has continued to oﬀer rentals of the latest IT equipment since
its launch in 1983. In 2012, we opened the Kanamoto
Cyberbrain Warehouse on Rakuten to expand
business through the sale of IT equipment after rental
to individual customers and other avenues as muchas possible by acting as a bridge for everyone to IT
technology. The evolution of technology in thecomputing industry is astounding. The Information
Product Division actively proposes advanced customer-oriented services to oﬀer the latest hardware andsoftware.

Reliable Maintenance Systems Set Up at Every Branch

Substantial Compensation Systems to Rapidly Respond to Diverse Needs

Kanamoto alone has about 230 branches in Japan
while the Group has more than 550 location bases.
Every single one of these bases has highly-skilled
maintenance staﬀ who maintain the rental equipment
on a daily basis to maximize their performance.
Uncompromising maintenance also helps enhance
the asset value of equipment sold in the used equipment market.

Kanamoto has put in place compensation systems to fully
insulate customers from accidents, theft and other inherent
risks of construction equipment or vehicles during rental. In
recent years, user needs to respond to these types of risks
have diversiﬁed as the type of accidents and scope ofcompensation has grown more complex. Kanamoto has
assigned compensation assessment managers to eachregion in an eﬀort to provide the highest level of compensation assessment and services in order to not only incorporate customer needs but also oﬀer peace of mind.

Welfare-related BusinessBroad Line-up to Support In-home CareIn the welfare business, Nishiken Co., Ltd. and Carewell Anshin Co., Ltd. rent and sell assistive technology and nursing
care products. Safety and Security are keywords in welfare businesses. Our broad line-up from personal-use
products to training equipment for care and prevention support the care-giving activities needed in each community and assist individuals receiving care to become more
independent and mobile. Our unique service system goes further via uncompromisingquality control encompassing everything from maintaining devices on-site at factories
to ensuring prompt shipments.

Performance

Performance
Millions of Yen

Millions of Yen

200,000

20,00020,000150,000

15,00015,0001,200

100,000

10,00010,000800

50,000

5,000

5,000

400

0

16 Kanamoto 2023

'13

'14

'15

'16

'17

'18

'19

Left axis

Net sales'20
Right Axis

'21

'22
Operating proﬁt

0

0

1,600

'13

'14

'15

'16

'17

'18

'19

Left axis

Net sales'20
Right Axis

'21

'22

0

Operating proﬁt

Kanamoto 2023 17

Kanamoto Value Creation Process

Kanamoto Value Creation Process
The Kanamoto Group creates value that helps address social issues through therate governance and ideal organizations and structures, while integrating anddevelopment of global businesses centered upon construction, robust corpo-

using management resources founded in the needs of society and customers.

Input: Management resources(Consolidated)

Output: Business activities

Outcome: Value created by Kanamoto

Injection of Sustainable Management Resources to Address Social Issues

Financial and investment capital(As of October 2022)

Business domains￥

305,320million

Society and customer needs

Construction
Equipment
Rental Business

Capital investments in rental assets andother equipment prioritizing operationaleﬃciency and proﬁtability

Other
Businesses(Steel Product Sales Business,
Information Products Rental
Business, Welfare-related
Business)

Human capital(As of October 2022)

Medium-term management plan

Number of Employees

3,832

Expansion of the Kanamoto
Domestic Base of Operations(Excluding directors and temporary or
part-time workers)

Concentrate the Collective Group Capabilities

Diverse human resources with high-levelknowledge and skills

Social capital(As of February 2023)

P.20

〉

P.58

〉

Branch network

Optimize Internal
Operational Processes

Branch network to build an ideal valuechange according to the demand ineach region

Increase Rental Business Proﬁtability▶Broad customer baseworldwide▶Technical and development capabilities responding to on-site demand▶High-quality products andservices▶Brand power cultivatedover almost half a century
Extensive
Rental Asset
Line-up of
620,000 Items

Excellent
Maintenance Staﬀ
and Human
Resources with
High-level Skills
Responding toEquipment
Development
Needs via loT and
ICT Technologies

Operational
System Enhancing
Asset Availability
and Proﬁtability

FYE October 31, 2022
Economic value (Financial)

188,028 million

Net Sales ￥Proﬁt attributable to owners of parent￥8,345 million

Strengthen a high-proﬁt structure
and achieve a stronger
Kanamoto beneﬁting
all stakeholders

Increase value
through consistency

Social value(Non-ﬁnancial)
Contribute to disaster recovery
and reconstruction P.24
Reduce the environmental impact
Improve employee satisfaction
Return profits to shareholders
〉

・
・
・

550 locations
Overseas 23 locations
Japan

Overseas Expansion

Upgrade Overseas Strategy
2.0 (Next Generation)

Kanamoto Strengths

To Become a Company Contributing to a Safe,
Prosperous Society with Values Shared by All Stakeholders

Total assets

P.16

〉

Re-investment Toward Further Value Creation

Build infrastructure that
supports business growth●Corporate governanceSocial Issues, Megatrends and Global Objectives

18 Kanamoto 2023

●Compliance●Risk management●Environmental management

P.35

〉

Contributions Toward a Sustainable Society

Kanamoto 2023 19

Feature

Realization of the Medium-Term
Management Plan "Creative 60"

Priority Measures of the "Creative 60" Medium-Term
Corporate Management Plan

- Further Strengthening Business Resilience to Increase Corporate Value The Group has been working to achieve its Medium-Term Management Plan "Creative 60", but has decided to revise
the plan in light of the business results for the ﬁscal year ended October 31, 2022, and the forecast for the ﬁscal
year ending October 31, 2023, which were announced on December 9, 2022, as well as the recent businessenvironment.
Going forward, we will continue to pursue our existing key initiatives of expansion of our domestic base of operations, overseas expansion, and optimization of internal operational processes, while further strengthening ourbusiness resilience and further increasing our corporate value through sustainability-conscious business development and proactive responses to various changes in the social environment (transformation).
Based on our conviction that the sustained enhancement of corporate value requires a proactive, dynamic response
to environmental and social sustainability issues, we have formulated a Basic Sustainability Policy, and are working
to establish a framework and system to put this policy into practice.
In our Medium-Term Management Plan, we set forth a Sustainability Management Promotion eﬀort, and will incorporate the concept of sustainability into our management more than ever before as we further integrate our Group'sbusiness with solutions to environmental and social issues, with the aim of enhancing corporate value and achieving
sustainable growth.

01

2020

2024
Five years of strengthening
the foundation for 2030

Emissions from use of fuel/emissions frompurchased or acquired electricity, steam,heat, and cooling
50% reduction by 2030 compared to 2013

2030

Sales, proﬁt, ROE, total payout ratio,
human resources, etc.

2020 ‒ 2024
Creative 60 Medium-Term Corporate Management Plan

2030
Vision Realization

We will continue to pursue our three key initiatives while further strengthening our businessresilience and increase our corporate value through sustainability-conscious business development
and proactive responses to various changes in the social environment.

Concentrate the Collective Group Capabilities

Domestic

02

Upgrade Overseas Strategy 2.0 (Next Generation)

Overseas032030
Numerical Targets

Above 8 %225 billion ROE
Operating proﬁt (Consolidated) ￥20 billion Total payout ratio Above 50 %Net sales (Consolidated)￥

Expand into non-construction sectors

Overseas Expansion

Optimize a global portfolio

Inorganic strategy: Overseas M&A initiatives

Establish a Kanamoto global platform

Lay the groundwork to raise overseas sales to
10% of total net sales

Optimize Internal Operational Processes
Increase Rental Business Proﬁtability

Internal

Integrate marketing and sales strategies with IT

Improve operational eﬃciency

Invest resources in product planning and research anddevelopment to develop the technology and systems needed atconstruction sites i.e.: Kana Robo Naccident AX Q-een
ICT construction equipment

Build an environment to promote Group
logistics i.e.: Cost control, stable long-term operations
Place emphasis on recruiting and developing human resources

Cash allocation

2030 Vision
While aiming to build a foundation for sustainable growth, we will contribute to the realization of a sustainable society as a good corporate citizen that coexists with society.

Enter new areas and develop areas
where Kanamoto has low market share

Deeply mine existing areas

Positioning of the Medium-term Corporate Management Plan
One of the best ﬁve construction
equipment rental company in the world

Expansion of the Kanamoto Domestic
Base of Operations

Cash ﬂow
EBITDA

Rental equipment
investment, etc.

Assessment of trending in demands, sustainable growthand increase productivity of domestic core business,strategic investment for strengthening overseas business

M&A, etc.

New businesses, M&As, and other active investments
for acquiring growth foundation to increase group value

Dividend payout and acquisition oftreasury shares, etc.

Continue stable dividend with a target total payout ratioof 50% or more and ﬂexibly purchase treasury shares

To help grasp the operating environment surrounding the Kanamoto Group,
the report on the following pages looks at the domestic and overseas construction
demand expected to receive short-term, concentrated investment in the future.
20 Kanamoto 2023

Kanamoto 2023 21

Feature

01

Domestic

Strengthening Adaptability to Rental Demands
While Aiming for Sustainable Growth
Construction Investments Expected to Grow Strong after Overcoming the COVID-19 Pandemic

National Policy Launches with
¥15 Trillion Project Budget

Elimination of Missing Links toStrengthen the Road System

The amount of construction investment has been rising steadily since around 2012, to an estimated total of ¥67.6
trillion for ﬁscal 2022, 1.5% higher than the amount estimated for ﬁscal 2021 (¥66.6 trillion). Forecasts anticipate¥69.9 trillion of investments throughout ﬁscal 2023, 3.4% increase year on year. Our Group aims to achievesustained growth by providing a steady supply of construction equipment rentals with even greater versatility andspecialization by leveraging our advantages in the civil engineering ﬁeld, which is our forte, while also striving tostrengthen our ability to respond to disaster prevention and mitigation and national land resilience described below.

The new ﬁve-year plan to accelerate emergency measures fornational resilience contributing to the prevention and mitigation ofdisasters which began in ﬁscal 2021 is expected to have a projectbudget of ¥15 trillion. With a supplementary fund of approximately¥1.5 trillion was secured in ﬁscal 2022 alone, a total of 123 disaster
reduction projects will address a wide range of issues such asmeasures to tackle more severe storm and ﬂood damage as well as
imminent large-scale earthquakes, obsolescence measures for atransition to preventative maintenance of infrastructure, andpromotion of a digital transformation aiming to enhance the eﬃciency of policies toward a more resilient Japan. Over ﬁve years, ﬂood
disaster prevention measures to manage river basins will build andreinforce structures such as embankments and proceed river
channel excavation to increase the maintenance rate of class A
rivers prepared for the largest potential ﬂoods after World War II
from 65% to 73%. These projects also intend to increase anti-landslide and embankment measures along emergency transit routes
with a high risk of landslide damage (approx. 33,000 locations) to
73% by ﬁscal 2025. This policy lays out many speciﬁc targets topromote a digital transformation in each ﬁeld, such as an increasein the implementation rate of ICT in port and harbor construction
from 79% in ﬁscal 2019 to 88% by ﬁscal 2025.

The new ﬁve-year plan to accelerate emergency
measures for national resilience contributing to theprevention and mitigation of disasters outlines priority initiatives to eliminate missing links* and expand
expressways to four lanes. These measures will build
a national disaster-resistant expressway network.
T hese emer genc y measu res ai m to hei g hten
resilience to disasters in roughly 200 sections ofroads without junction access, including a back-up
network of national highways to use as an expressway alternative. These projects will also eliminate
30% of the missing links over ﬁve years from ﬁscal
2021 to ﬁscal 2025 for the purpose of ﬁnally connecting all 200 sections of road by ﬁscal 2041. In addition,
construction will prioritize roughly 880 km of provisional two-lane roadways to expand the work for
expansion to 4-lane roadways from 13% in ﬁscal
2019 to 47% by ﬁscal 2025.

Measures and Project Scale of Priority Initiatives in the Five-year Plan to Accelerate Measuresfor National Resilience Contributing to the Prevention and Mitigation of Disasters

Nominal Investment Trends in Domestic Construction(Trillions of yen)

■ Private Investment in Maintenance Construction (Renovations / Repairs)■ Private Investment in Non-residential Construction■ Private Investment in Residential Construction■ Public Investment in Construction

80
66.2
60

40

16.0

56.6
51.6
14.2

20.3

6.2
41.9

20

13.0

30.0

00

6.0

14.6

15.3

15.7

16.5

61.3

61.8

62.3

6.3

6.5

6.5

16.3

17.0

17.0

11.0
18.4

0

58.7

19.0

18.0

05

10

16.9

20.2

21.0

21.8

15

16

17

16.7

16.3

21.6

22.5

18

19

65.4

66.6

8.4

9.4

17.3

17.7

15.3

24.4

20

16.1

23.4

21

67.6
8.3

19.3

16.5

23.5

22

（Prospects） （Prospects） （Outlook）

69.9
9.2

19.9

16.8

24.0

23

（Outlook）

Source: Prepared based on the Construction Economy Model Forecast of Construction Investment (January 2023) published by the Research Institute of Construction and Economy (RICE)

22 Kanamoto 2023

*Missing links are sections of roadway without access to arterial expressways and other road systems. The connection of these roadways to theroad system is designated as an essential measure for supporting regional
independence because it secures alternative routes during large-scaledisasters, strengthens international competitiveness, and bolsters local
economies.

MeasureProjects

BudgetProjects to prevent and minimize the harm to life and property

50

Approx.
¥12.3 trillion

Projects to maintain transportation networks and lifelines andsupport the national economy and lifestyles

28

Obsolescence measures for a transition to preventative maintenanceof infrastructure

21

Approx.
¥2.7 trillion

Digital transformation of policies toward a more resilient nation

12

Approx.
¥0.2 trillion

Advancements in prediction, collection, aggregation,and communication of disaster-related information

12

Projects to tackle severer storm and ﬂood damage as well as
imminent large-scale earthquakes

Promotion of a digital transformation to enhance the eﬃciency ofpolicies toward a more resilient nation

Total

123

Approx.
¥15 trillion

Source: Prepared based on the Five-year Plan to Accelerate Measures for National Resilience Contributing to the Prevention and Mitigation of Disasters released by the Cabinet Secretariat.

Kanamoto 2023 23

Feature

01

Domestic

Kanamoto Group Recovery and Reconstruction Activities:
Our All-out Response to More Frequent and Severe Natural Disasters

Contributing to the Realization of Decarbonized Society throughResponding to the Raising Demand for Renewable Energy

Forming a Continuous Support System with All-out Eﬀort

Strengthening Handling of Constructions for Renewable Energy

The national government has designated the ﬁve-year period from 2021 to 2025 as the second phase of reconstruction and vitalization following theGreat East Japan Earthquake. This phase includes investment of approximately ¥1.6 trillion in projects to provide health and nursing care systems,
develop transportation and logistics networks that will serve as the foundation for development, and practical assistance for rebuilding housing andsupport for independent housing reconstruction. This new stage of reconstruction is expected to require ongoing support, and the Kanamoto Groupwill do everything in its power to respond. In recent years, natural disasters have tended to become more frequent and severe, with large-scale
earthquakes and typhoons, as well as ﬂoods and landslides caused by linear rain zones occurring every year. As shown below, there have been many
disasters in recent years that have been designated by the government as "Major Disasters", resulting in extensive destruction to human life, homes,
infrastructure, and local industries. The Kanamoto Group responds to requests from various regions by providing construction machinery andequipment needed for recovery construction work following these disasters. In the future, we will strengthen cooperation between Group companies,
centralize management resources and build a continuous support system to better use all of our strengths toward more comprehensive support.

Renewable energy sources, including wind and solar power, have been expanding rapidly in recent years. The amount ofsolar power generation installed in Japan has been steadily increasing year by year, with a cumulative 64.76 million kW
installed by 2020, ranking third in the world after China and the United States, a remarkable development. Wind power isalso a potentially economical energy source, as its electricity generation cost is comparable to that of thermal power if it
can be generated on a large scale. In particular, oﬀshore wind power generation is expected to bring about mass implementation, cost reductions, and economic ripple eﬀects. With its large scale of business and broad base of related industries, it
is expected to become a new mainstay industry in Japan. As the construction of the grid system continues to progress inareas suitable for renewable energy, our Group will contribute to a sustainable decarbonized society that takes the global
environment into consideration, while strengthening our ability to respond to the renewable energy ﬁeld by providing
construction machinery and equipment required for construction work, including the foundations for these projects.

Trends in Solar Power Generation in Japan

Recent Major Disasters
June/July 2017
Torrential rains in Northern Kyushu
and Typhoon No.3

（Fukuoka/Oita/Akita prefectures）

August/September 2018

September 2018

Typhoon No.19 to 21

Hokkaido Eastern Iburi
Earthquake（Wakayama/Nara/Osaka/Nagano/Niigata prefectures）(Unit:
10,000 kW)

7,000

October 2019

（Hokkaido）

Total amount implemented(cumulative total)

Typhoon No.19 to 21（Tokyo and 13 prefectures in the Tohoku,
Kanto Koshinetsu, and Tokai regions）

6,000
5,000
4,000

September 2022
Typhoon No.14/15(Shizuoka/Yamaguchi/Kochi, Fukuoka/
Saga/Nagasaki/Kumamoto,
Oita/Miyazaki/Kagoshima prefectures)

August/September 2019

Kumamoto earthquake

Typhoon No.10, 13, 15, 17, etc.

September 2017
Typhoon No.21（Niigata/Mie prefectures andthe Kinki region）

March 2022

June/July 2016

September 2017
Typhoon No.18（Kumamoto/Miyazaki prefectures）（Kyoto/Ehime/
Oita prefectures）（Fukushima）

1,000（9 prefectures in regions
from Tohoku to Kyusyu）（Miyazaki/Kagoshima prefectures）

1993 1995

2000

2005

2010

2015

0

2020 (FY)

Source: "Energy White Paper 2022," Agency for Natural Resources and Energy,
Ministry of Economy, Trade and Industry

Maximizing Implementation at Suitable Sites: Promoting Oﬀshore Wind Power【Legend】
Promotion zone

Kyusyu ﬂoods, etc.

Typhoon No.16

Promising area
Area that has attained
a speciﬁed level of readiness

July 2022

June/July 2019
Note: Areas in parentheses indicate the main
regions aﬄicted by the disaster.
Source: Disaster Prevention Information pageon the Cabinet Oﬃce website

Typhoon No.3, 5, etc.

（Nagasaki/Kagoshima/
Kumamoto prefectures）

May to July 2021

May to July 2018

Torrential rains causedby the seasonal rain front

2018 Japan Floods andTyphoon No.5 to 8

24 Kanamoto 2023

Shinchimachi, Soma district,
Fukushima Earthquake

May to July 2020

September 2016

（Tottori/Shimane/Kagoshima prefectures）

2,000（Aomori/Yamagata/Niigata/Ishikawa/Fukui prefectures）（Saga/Chiba prefectures）

Torrential rains causedby the seasonal rain front

3,000

Torrential rains caused by thestationary rain front/Typhoon No.8

Typhoon No.7, and 9 to 11（Hokkaido/Iwate prefecture）

April 2016
（Kumamoto prefecture, etc.）

August 2022

August/September 2016

（Okayama/Hiroshima/Ehime prefectures）

September/October 2018
Typhoon No.24（Tottori/Miyazaki/
Kagoshima prefectures）

Torrential rains causedby the stationary rain front（Kumamoto/Miyazaki prefectures）

August 2021
Typhoon No.9, 10, etc.

（7 prefectures in regions
from Tohoku to Kyushu）

Source: "Current Status of Domestic and Overseas Renewable Energy and Proposed Agenda Items for Discussion in the Current Fiscal Year by
the Procurement Price Calculation Committee, " Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry.

Kanamoto 2023 25

Feature

01

Domestic

Higher Maintenance Productivity and the Development and
Implementation of Relevant Technology for Longer Lasting Infrastructure
Neglected Road Infrastructure

Expectations for New Technologies Driven by Large-scale Renewal of Infrastructure

Statutory once-a-ﬁve-year close visual inspections of road infrastructure enacted in 2014 assess bridges and otherinfrastructure to put in place ﬁve-year maintenance measures by designating maintenance needs as Category III(immediate maintenance) or Category IV (emergency maintenance). 61,407 bridges were designated Category III or
Category IV in the Annual Report on Road Maintenance (August 2022) prepared by the Ministry of Land, Infrastructure, Transport and Tourism during inspections over the last ﬁve years (ﬁscal 2017 to ﬁscal 2021). As of March 31,
2021, Japan had begun maintenance on 25,642 bridges, only 42% of the total number of bridges requiring maintenance. Similar repairs have also only begun on 70% of tunnels requiring maintenance in 3,873 sites as well as 57%
of road attachments in 5,565 locations. In addition, 4% of the bridges, 20% of tunnels, 7% of road attachments, etc.
assessed as Category I (sound) or II (preventive maintenance) in the ﬁscal 2014 to 2016 inspections had become
Category III or IV after ﬁve years in the ﬁscal 2019 and 2021 inspections. To overcome these challenges, Kanamotopromotes a shift to preventative maintenance and higher maintenance productivity that undertakes the proper
maintenance work before damage and degradation progresses, which is essential to optimizing infrastructure stock.

Japanese infrastructure is clearly aging as shown by once-a-ﬁve-year inspections. The percentage of infrastructure more than 50 years old
includes roughly 30% of road bridges, 22% of tunnels, and 21% of harbor quays. These are just some of the 12 types of infrastructure under thejurisdiction of the Ministry of Land, Infrastructure, Transport and Tourism earmarked for upwards of ¥194.6 trillion in maintenance and renewal
over the next 30 years. Moreover, large-scale refurbishment plans for expressways outside the jurisdiction of the Ministry of Land, Infrastructure,
Transport and Tourism such as roughly ¥5 trillion for three NEXCO companies and roughly ¥1 trillion combined for Metropolitan Expressway
and Hanshin Expressway are underway. In this maintenance environment, the hope of new technology for building and renovating infrastructureis higher than ever. The Kanamoto Group promotes products and technology for infrastructure maintenance and repairs to actively develop new
products and adopt others certiﬁed by the New technology Information System (NETIS)*. We not only have an ample line-up of specialty
construction equipment for ground improvements but also teams of ground improvement experts at Group companies. Our equipment andexpertise helps organization such as petroleum industrial complexes where deep underground construction work, underwater work, andthorough prevention of ground sinking and subsidence are absolutely essential. The demand for such specialized civil engineering equipment is
expected to grow even for overseas projects building infrastructure, such as the Asia and Oceania region described on pages 32 and 33.
*NETIS is a database of technical information aggregated by the Ministry of Land, Infrastructure, Transport and Tourism via the New Technology Utilization System for
Public Works.

Category Ratio for Bridges, Tunnels,
Road Attachments and Other Infrastructure
Categories：

Percentage of Ongoing or Completed Corrective
Maintenance (Category III and IV)

Ⅰ（Sound）
Ⅱ（Preventive maintenance）
Ⅲ（Immediate maintenance）
Ⅳ（Emergency maintenance）

Percentage of completed corrective maintenance
Percentage of ongoing corrective maintenanceCategoryⅢ and Ⅳ: Requires maintenance before next inspection

Bridges（722,176）

0.1％

42％

50％

Percentage of Infrastructure Over 50 Years Old

50
40

18％

10

20

30

40

50

60

70

80

Tunnels（10,989）
2％

10

20

30

40

50

35％

10

20

60

70

80

24％

10

40

50

60

20

80

30

40

90

100

（％）

90

100

（％）

50

60

70

（％）

0

10

20

30

30

23 ％

10

40

50

60

70

（％）

34％

20

36

22

Road Bridges

23

38
5

10

Tunnels

River Management Facilities

43

35

21

16

Drainage/Sewage Piping

Harbor Quays

Estimated Maintenance and Renewal Expenditures in Sectors Under Ministry of Land,
Infrastructure, Transport and Tourism Jurisdiction (Trillions of Yen)

36％

Road attachments, etc.（5,565）

0

66

53

Source: Prepared based on Status and Future of Social Capital materials released by the Ministry of Land, Infrastructure, Transport and Tourism.

30

40

50

60

70

（％）

Note: Figures in parentheses indicate the number of sites.
Source: Prepared based on the Annual Report on Road Maintenance (August 2022) released by the Ministry of Land, Infrastructure, Transport and Tourism.

26 Kanamoto 2023

055

Tunnels（3,873）

13％

70

20

７５

30

34％

0.05％
51％

30

0

35％

Road attachments, etc.（41,407）

0

100

（％）

0.3％
62％

0

90

2040

60

Bridges（61,407）

8％

2030

70

10
0

2020

％

80

2018

2023

2028

2038

2048

30-year Total（2019 to 2048）

Roads

1.9

2.1 - 2.2

2.5 - 2.6

2.6 - 2.7

2.1 - 2.2

71.6 - 76.1

Rivers and other torrents

0.6

0.6 - 0.7

0.6 - 0.8

0.7 - 0.9

0.7 - 0.9

18.7 - 25.4

Sewage systems

0.8

1.0 - 1.0

1.2 - 1.3

1.3 - 1.3

1.3 - 1.3

37.9 - 38.4

Harbors0.3

0.3 - 0.3

0.2 - 0.3

0.2 - 0.3

0.2 - 0.3

6.0 - 8.3

Six other sectors

1.6

1.6 - 1.8

1.3 - 1.4

1.2 - 1.4

1.6 - 1.7

42.3 - 46.4

5.2
（5.2）

5.5 - 6.0
（7.6 - 8.5）

5.8 - 6.4
（7.7 - 8.4）

Total of 12 sectors(Estimated with corrective maintenance)

5.9 - 6.5
6.0 - 6.6
（8.6 - 9.8） （10.9 - 12.3）

176.5 - 194.6（254.4 - 284.6）

Note: Figures for ﬁscal 2018 are estimations. Note: The estimation for rivers and other torrents is the total for rivers, dams, erosion control, and coastlines. Note: The six other sectors refer to airports, sea lane beacons, parks, public housing, government oﬃces and monitoring facilities.
Source: Prepared based on the Estimate of Future Maintenance and Renewal Expenditures for Infrastructure Sectors under the Jurisdiction of the Ministry of Land, Infrastructure, Transport and Tourism (November 30, 2018) released by the Ministry of Land, Infrastructure, Transport and Tourism.

Kanamoto 2023 27

Feature

01

Domestic

Focusing on Construction DX
to Further Improve Productivity
Increasingly Widespread ICT Implementation, and BIM/CIM

Development of Rapidly Evolving IoT and ICT Equipment

Digital Transformation (DX)*1 is coming into increasingly widespread use in the construction industry to compensate
for labor shortages. With the establishment of the Construction RX (Robotics Transformation) Consortium, technological collaboration throughout the industry is under way to improve productivity through the introduction of
construction robots, IoT, and other technologies. The Ministry of Land, Infrastructure, Transport and Tourism is also
strengthening digital transformation initiatives in the infrastructure industry. It launched i-Construction in 2016 topromote ICT construction, which adopts Information Communication Technologies (ICT) in every process on
construction sites from the survey and design to construction and maintenance to save labor and shorten construction periods. The number of ICT construction projects under the jurisdiction of the Ministry of Land, Infrastructure,
Transport and Tourism increases every year, making up 80% or more of the construction projects in ﬁscal 2020 and
2021. BIM/CIM*2 can be seen as two prominent digital technologies of the digital transformation in construction. The

The digital transformation in construction promoted by the construction industry and the Ministry of Land, Infrastructure, Transport andTourism advocates the development of technology for full- and semi-automated construction technologies through robots and Artiﬁcial
Intelligence (AI). The Kanamoto Group has long been setting up departments dedicated to a digital transformation, such as theConstruction ICT Promotion Section, and is actively pursuing the development and adoption of equipment leveraging these IoT and ICT
technologies that includes i-Construction. The New Products Oﬃce leads the Internet of Things Promotion Section as Kanamoto furthers
the development and adoption of technologies from remote-control construction robots that realize wireless operation of general-purpose construction equipment and fully autonomous Tunnel RemOS-WL wheel-type loaders for the excavation of tunnels to contact
prevention systems for construction equipment equipped with AI object recognition functions. We also took on a proof-of-concept
project to realize the remote control of construction equipment with the Softbank Corporation in 2019 in an eﬀort to build a business
scheme in anticipation of commercial services using 5G. In September 2020, we welcomed Sooki Holdings to the Kanamoto Group tooﬀer surveying and measurement equipment rental services, which are key to ICT construction, as well as the development and rentalof automated measurement systems. We also concluded an alliance agreement with Iwasaki Co., Ltd., an established system solutions
company, in May 2021 to promote broader use of ICT construction solutions for ground reinforcement management systems. In 2023,
we are working with Iwasaki and Hemisphere Japan to develop the VR500 model for oﬀset boom machines, which can dig ditcheseﬃciently even in narrow space, and we are working to strengthen this ﬁeld, which is expected to become even more active.

growing number of work and projects using these two digital technologies has grown to a cumulative total of over
2,000 projects as of March 31, 2022. Takenaka Corporation and other Group companies have placed even moreemphasis on this digital transformation through initiatives that include the joint development of BIM × Drone. This
new system facilitates the safe ﬂight of drones inside of buildings obstructing satellite signals by using BIM and Visual
SLAM technologies*3.

*1 A digital transformation leverages data and digitaltechnologies to reform organizational and businessmodels to establish a competitive advantage.
*2 Building/Construction Information Modeling management takes advantage of 3D models from surveying
and planning through design to enhance information
sharing as well as the eﬃciency and functionality of
construction production and management systems.
*3 Simultaneous Localization and Mapping is a technology to use images captured with a camera forsimultaneous positional estimation and environmental
mapping.

Prevalence of ICT Construction
Left axis :Right Axis:

PavingEarthworks
Ratio of ICT Construction

Changes in the Number Business and Construction Projects Using BIM/CIM

Dredging (Ports)

Dredging (Rivers)(No. of constructions)
3,500

2,942
2,397

2,800
2,100

Ground improvements

79％

2,175

1,947

（％）
100

2,685 84％

81％
2,396

2,264

1,890

42％

60
40

1,104

912
700
0

20

Public Press
Releases

ICT Use17

Public Press
Releases

ICT Use18

Public Press
Releases

ICT Use19*Constructions that include multiple construction types are count as one constructionin the total number of constructions.

28 Kanamoto 2023

80

57％

1,400

Public Press
Releases

ICT Use20

Business(No. of projects)
800

Public Press
Releases

ICT Use021

Source: Materials on initiatives to expand the use of ICT construction publishedby the Ministry of Land, Infrastructure, Transport and Tourism (July 2022)

757

700
600

Cumulative Projects (As of March 31, 2022)
Business: 1,417 projects

Construction: 846 projects

Total: 2,263 projects

515

500

274

126

400

361
107

300

212

200
100
0

Construction

11
12

19

40
13

21

10

38
14

76
28

16

60

15

34

121

132

65

87

78

147

16

17

54

18

389

483

20

21

254

19

Source: Materials on initiatives to expand the use of ICT construction published by the Ministry of Land, Infrastructure, Transport and Tourism (July 2022)

Kanamoto 2023 29

Feature

01

Domestic

Building Infrastructure for Osaka Expo, Various Local Railway Networks,
and Other Construction Demand Is on the Rise
2025 Osaka Expo Redevelopment Project

New Linear Chuo Shinkansen Lines and Metropolitan Railway

Large-scale investments into projects to tackle aging public infrastructure is not the only work cultivating new demandin the construction market. Other construction projects are underway for international events and major transportation infrastructure. The 2025 world exposition to be held in Osaka (Expo 2025) is one of these international projects.
Expo 2025 is positioned as one event that will stimulate the economy following the Tokyo Olympics, with an estimated economic eﬀect of approximately ¥2.5 trillion. Spending on Expo site construction is expected to amount to ¥185
billion, which far exceeds the initial forecast by ¥60 billion. Yumeshima, an artiﬁcial island in Osaka Bay (total area of
390 hectares) will host this world exposition. However, access to Yumeshima is currently limited to a single tunnel
road. Therefore, as a means to transport the roughly 28 million visitors anticipated to attend the fair, plans to expand various railway lines are under review
for the Osaka Metro Chuo Line, Keihan Nakanoshima Line, and JR Yumesaki(Sakurajima) Line. Yumeshima also hopes to open an Integrated Resort (IR)with a casino in conjunction with the Expo. Moreover, redevelopment of theharbor area and other infrastructure is expected to accelerate in the future.
Kanamoto is strengthening its ability to support the Expo mainly through theCentral Osaka Sales Oﬃce, which is located within a direct distance of two
Yumeshima Artiﬁcial Island Venue for the Expo 2025
kilometers from the event site in Yumeshima.

Large-scale transportation infrastructure construction and improvement projects are also in full swing in various
regions, including the Nishi Kyushu Shinkansen route (Takeo Onsen to Nagasaki), which opened in 2022. This work
not only includes extension construction for the Hokkaido Shinkansen (Shin-Hakodate-Hokuto to Sapporo), Hokuriku
Shinkansen (Kanazawa to Tsuruga), and other planned Shinkansen lines, but also the ongoing construction of thelinear Chuo Shinkansen (Shinagawa to Nagoya)̶a massive project with an estimated budget of ¥7 trillion to ¥10
trillion̶ set to begin service in 2027. The Japanese Transport Ministry has also begun construction on a project
tentatively named the Haneda Airport Access Line, which has been planned since 2014. This project is building a
new roughly 5km access line from the Haneda Airport New Station (tentative) located between Domestic Terminal
1 and Terminal 2 of Haneda Airport to the Tokyo Cargo Terminal. The plan for this project upgrades the existing lines
and connects them to the new line to provide direct access to Haneda Airport and Tokyo Station as well as the
Utsunomiya, Takasaki and Joban areas. The construction cost is expected to be about ¥300 billion including sections
for upgrade. The project broke ground in ﬁscal 2022 with the new access line expected to bring service to three newroutes in ﬁscal 2029. The East Yamanote Route will run to Tamachi Station area. The West Yamanote Route will run
to Shinjuku and Ikebukuro areas and the Coastal Area Route will link directly to the Rinkai Line area. Kanamotolaunched a Specialized Equipment Engineering Division in August 2016 to oversee the new Tunnel Machinery andWater Treatment Machinery Sections. These types of structural reforms strengthen our ability to ﬂexibly handle all
aspects of infrastructure construction and maintenance in the future uniﬁed as a Group with the increase in work onbullet train lines, the linear Chuo Shinkansen, and various railway and roadway tunnels.

Maishima

Sakurajima

Bentencho

JR Nanba

Naniwasuji Line（plan）

Yumeshima
Shin-imamiya

Osaka-chuo Branch

ShinagawaTokyo

Shin-Tosu
Takeo
Onsen
NagoyaKagoshima Chuo

Fiscal 2027 :Scheduled opening of Shinagawa ̶ Nagoya segment
Note : Planned extension between Nagoya and Osaka

Coastal Area Route

ine

uka L

Yokos

KamataKeikyu Kamata

Existing Line（JR）
New Shinkansen Line intervals
currently open
Intervals currently underconstruction or not yet started

Line

Haneda Airport Access Line

Linear Chuo Shinkansen

Kyushu Shinkansen Line(West Kyushu Route)

kai

Rin

Osaki

Shin-Osaka

Nagasaki

Tokyo teleport

Tokyo Freight Terminal

Tokaido Freight Line

Currently, TSMC, a semiconductor manufacturer in Taiwan that is among the world's largest, is building a semiconductor plant in Kumamoto Prefecture covering an area of 21.3 ha. The total investment is estimated to be about ¥1
trillion, and a second plant is also being considered, which is expected to have a high economic impact amid theglobal shortage of semiconductors. Meanwhile, construction of a Self-Defense Forces base has begun on MageshimaIsland, located west of Tanegashima Island in Kagoshima Prefecture. The construction period is expected to last
about four years, in conjunction with the planned relocation of U.S. carrier-based aircraft training. We will continue
to strive to meet a wide range of needs for large-scale construction projects in Japan.

Shin-Hakodate Hokuto
Shin-Aomori

East Yamanote RouteTohoku Shinkansen

Tokaido/Sanyo Shinkansen

Nankai Main LineWork Begins on a Succession of Large-Scale Construction Projects in Japan

30 Kanamoto 2023

End of ﬁscal 2023：Scheduled opening ofKanazawa ̶ Tsuruga segument
Fiscal 2046 : Scheduled opening of
Tsuruga ̶ Shin-Osaka segument

Tokyo Monorail

Cosmo
SquareSaikyo Line
Yamanote Line

Hokuriku ShinkansenLineShinsakura
jima

ShinbashiWest Yamanote RouteLine

JR Yumesaki (Sakurajima) Lineline extension interval

Midosuji
Line

Kujo

Planned Expo site

Sapporoko

JR Yumesaki (Sakurajima) Line

Nishikujo

Fiscal 2030 : Scheduled opening ofShin-Hakodate Hokuto ̶ Sapporo segment

Oshio Line

Keihan Nakanoshima line
extension interval

Honmachi

Hokkaido ShinkansendoKeihan Nakanoshima line

Nakanoshimakai

Osaka Metro Chuo Lineextension interval

Conceptual Overview of the Haneda Airport Access Line (Tentative) Routes

To

Universal
Studios Japan

Various Bullet Train Lines and Linear Chuo Shinkansen Routes

KyuOsaka Metro Chuo Line

Osaka

in

Kita-umeda

Keih

Yumeshima Conceptual Access Route

New Haneda Airport Station

Haneda Airport
International Flight
Building

Existing Line（Private Line）
New LineLine Extension

Haneda Airport
International Terminal

Haneda Airport
Terminal 2 Building

Haneda Airport
Domestic
Terminal
Haneda Airport
Terminal 1 Building

Source: JR East Group Management Vision "Move UP" 2027

Kanamoto 2023 31

Feature

02

Overseas

Basic Kanamoto Group Expansion Information and Main Projects by Country (as of 2021; Construction investment data as of 2020)

Asia and Oceania Region Sustain Strong Demand forConstruction Including Infrastructure Development

China
Population(10,000 persons)Real GDP growth rate

Growing ASEAN Construction Demand
Construction projects among ASEAN countries have increased signiﬁcantly over the past few years due toincreased government spending on upgrading existing infrastructure combined with new projects, especially incountries such as Indonesia and Malaysia, as well as hydroelectric and thermal power projects. In Thailand, thedemand for construction plant and equipment is further increased due to the expected increase in construction
projects for buildings such as oﬃces and residences. In addition, the Philippine construction economy has beenbooming for more than a decade. This is due to the government's policies to strengthen housing, transportation,and energy, in addition to a strong local economy and private investment. For heavy equipment supporting
construction, renting the equipment tends to be preferred to purchasing, with advantages including reduced
maintenance costs.

Infrastructure Demand as a Source of a Higher Overseas Sales Ratio

Total nominal GDP(billions of US$)

8.4%
17,745Nominal per capita GDP(dollars)

10,525*Construction Investment(Production Volume)(100 Million Dollars)

10,577.9

Population(10,000 persons)Main projects● Jiangsu Plan for Promotion ofTransportation Infrastructure
Development centered upon ahigh-speed railway system andairport expansion (through2035)● Water conservation projects● Plans for a total of $1.4 trillion
in new infrastructure construction (2020‒2025), etc.

Population(10,000 persons)

6,617

Real GDP growth rate

1.5%
506.44

Real GDP growth rate
Total nominal GDP(billions of US$)
Nominal per capita GDP(dollars)
Construction Investment(Production Volume)(100 Million Dollars)

Population(10,000 persons)Main projects● Bangkok-Chiang Mai High Speed
Rail Development Project● High-Speed Rail Linking Three
Airports Project (Don Mueang‒Suvarnabhumi‒U-Tapao)

Nominal per capita GDP(dollars)

7,336

Construction Investment(Production Volume)(100 Million Dollars)

135.9● U-Tapao International
expansion, etc.

Real GDP growth rate

5.7%

Total nominal GDP(billions of US$)

394

Nominal per capita GDP(dollars)

3,572

Construction Investment(Production Volume)(100 Million Dollars)

237.2

2.6%
366.14
3,717●Long Thanh International Airport●Dedicated Express Bus Roadwaysin Ho Chi Minh City
●Hanoi City Yen Xa Sewerage
System Project, etc.

equivalent

167.8

Airport

27,224Main projects● Jakarta-Bandung High-Speed
Railway

Real GDP growth rate

3.7%

Total nominal GDP(billions of US$)

1,112

Nominal per capita GDP(dollars)

4,350● West Sumatra Water Front
Redevelopment in Bali

Construction Investment(Production Volume)(100 Million Dollars)

1,133.3● Soekarno Hatta International
Airport Terminal 4, etc.

●Jakarta-Surabaya limited expresstrain● West Java Patimban Port

Malaysia

Philippines

10,903Main projects

Indonesia● Ta Phut Industrial Port and Laem
Chabang Deep Seaport Development

Population(10,000 persons)

9,946●North-South Express Railway

Thailand

Total nominal GDP(billions of US$)

Thailand is progressing with mega projects centered upon building a transportation network through its Transport
System Development Strategy (2017- 2036). The Philippines launched Build Build Build (BBB) as a plan made up ofroughly 20,000 infrastructure projects from road systems and power plants to hospitals and schools. Vietnam ispushing forward preparations for sewage and drainage systems as well as metropolitan railways in the Ten-Year
Socio-Economic Development Strategy, Hanoi Capital Region Plan 2030, and other national projects. Indonesia hasplans to invest upwards of ¥45 trillion in 25 projects including airports, power generation plants, and otherinfrastructure construction projects over ﬁve years starting in 2020.
Malaysia is also furthering its Penang Transport Master Plan to build
large-scale infrastructure by 2030. Over the next ten years, Australia isundertaking large-scale plans to inject approximately ¥9.7 trillion into
construction and maintenance of transportation infrastructure
throughout the nation. The Kanamoto Group will continue to maintainand expand its business performance while deepening cooperation
with overseas partners in each country, and will seek to develop
business in connection with the growing demand for infrastructure in
Asia and Oceania region.

141,260

Vietnam

Population(10,000 persons)Main projects● Metro Manila subway andnorth-south commuter railway● Clark International
expansion project

Airport● Cebu island monorail system● Mindanao island railway, etc.

3,267

Main projects● East Coast Rail Line (ECRL)
Real GDP growth rate
Total nominal GDP(billions of US$)

3.1%
373

Nominal per capita GDP(dollars)

11,453

Construction Investment(Production Volume)(100 Million Dollars)

136.5● Sewage Treatment Plant and
Sewer Conveyance System(CSTP)● Bayan Lepas Light Rail Transit(LRT) project based on the
Penang Transport Master Plan,
Pan Island Link (PIL), Penang
South Reclamation (PSR), etc.

Australia

Economic Growth Rate Outlook for Major Developed and Emerging Nations (Real GDP/Annual Percent Change)
2023

（％）
12

9
5.2

6
3

1.8

0
-3

0.9

Japan

1.4

1.0

USA

-0.6

0.9

UK

1.6

1.7

Australia

0.7

1.6

1.2

4.5

6.1

4.7
1.8

1.4

Euro zone Developed country/
regions

China

India

ASEAN 5

2.1

Latin America/
Caribbean

3.2

3.7

Middle East/
Central Asia

3.8

4.1

2,575

Real GDP growth rate

4.69%

2024

6.8
4.3

Population(10,000 persons)

4.0

4.2

Emerging market
countries andSub-saharanDeveloping country
AfricaTotal nominal GDP(billions of US$)

Main projects● Inland freight rail (Melbourne to
Brisbane)● Second Sydney airport

1,633.3● High speed rail to link developed
citiesNominal per capita GDP(dollars)

63,529● Expansion of the Snowy Mountains
Hydroelectric Scheme

Construction Investment(Production Volume)(100 Million Dollars)

990.3● Redevelopment of the Barangaroo district in Sydney, etc.

* Nominal per capita GDP (dollars) of China is a ﬁgure as of 2020.
Source : Prepared based on Research Institute of Construction and Economy(RICE) materials, Japan External Trade Organization (JETRO) materials,
The Overseas Construction Association of Japan, Inc. (OCAJI) materials,
and the Ministry of Land, Infrastructure, Transport and Tourism s reporton the spread, response and business impact of the COVID-19 pandemic on major construction markets overseas (March 2021)

Source : Prepared based on the IMF World Economic Outlook (January 2023)

32 Kanamoto 2023

Kanamoto 2023 33

Feature

Sustainability Section (ESG Initiatives)

03
Internal

Optimization of Internal Operational Processes
to Serve as a Basis for Earnings

Sustainability Section（ E S G I n i t i a t i v e s ）The Kanamoto Group strives to create and enhance value founded in a mission to fulﬁll all of our social
responsibilities to ﬁnd harmony with the environment and society and communicate with our stakeholders.

System Improvements to Better Utilization Rates and Proﬁt Margins
Kanamoto calculates rental revenues by multiplying the asset quantities, rental unit prices and utilization rate. The coreearnings of our Group rely on greater management and operational eﬃciency of construction equipment. In particular,
we see the enhancements through the optimization of internal operational processes as one priority issue. Improvements to existing systems are essential to enhancing the utilization rate. As a ﬁrst step we have replaced the plates
and stickers used for the machine codes of existing rental products with IC tags and QR codes to improve warehousemanagement, such as equipment delivery and retrieval as well as inventory management, by using dedicated readersand communication circuits. The Kanamoto Group is also integrating systems across Group companies. These reforms
will minimize diﬀerences in the utilization rate between slow and busy seasons, proportionality improve the utilization
rate, raise rental revenues, and enhance proﬁt margins through permanent cost reductions. The optimization of internal
operational processes includes measures to help promote the digital transformation described on page 28. The plan
strives to shift more toward digital technologies even for business model innovations and work-style reforms.

Information System Enhancements to Boost Operational Eﬃciency

GovernanceWe strive to enhance corporate
value by promoting corporate

governance and practices thatstrengthen compliance.

Kanamoto pioneered the ﬁrst online network in the industry in 1985. Innovation continued with the migration of coresystems from mainframes to open systems in 2004 and the introduction of a new Kanamoto web-based system in2018. These reforms realized greater eﬃciency in every business operation from inventory management of rental
assets to execution statuses of regular maintenance and inspections as well as the selection of models for oﬀeringsin the next quarter. The online Kanamoto system is what facilitates the basic rental foundation to provide the rightequipment in the right quantity at the right time. The system not only oﬀers smooth equipment delivery and pickup
but also signiﬁcantly helps put together a product line-up that meets user needs.
We will continue our work to develop IT governance and strive to enhance eﬃciency of internal business processes
while aggressively pursuing proprietary systems.

Environment

We engage in highly eﬀective
environmental conservation

activities uniﬁed as the KanamotoSocialGroup to ﬁnd harmony with theenvironment.

We advocate fair and honest practices
with society and our stakeholders andprioritize human resource

development as the driving force
to sustainable growth.

34 Kanamoto 2023

CONTENTS36

ESG Management

38

Environmental Activities

40

TCFD Initiatives

42

Social Activities

44

Governance

50

Board of Directors
Kanamoto 2023 35

Sustainability Section (ESG Initiatives)

ESG Management

Kanamoto sees ESG activities as a core managementfoundation and strives to become an enterprise
entrusted with the future as a good corporate citizen
coexisting with society.
ESG Overview

Contributions to the Success of the Sustainable
Development Goals (SDGs)

The Kanamoto Group conducts business for the
purpose of becoming an enterprise entrusted with the
future as a good corporate citizen coexisting withsociety. The shareholders, investors, business partners,
employees, local communities and many other stakeholders make Kanamoto business activities possible as
it expands overseas. To achieve our mission and foster
sustainable growth, the Kanamoto Group must build
close and trusting relationships with our stakeholders
through proper corporate conduct. We position andpractice ESG as a central aspect of Group management.

The seventeen Sustainable Development Goals (SDGs)
adopted at the United Nations Summit in September
2015 are globally shared objectives which at the sametime require innovation from the private sector.
The Kanamoto Group also recognizes the importanceof helping achieve the SDGs through its businessactivities. We have identiﬁed the SDGs most relevant to
our Group businesses from these seventeen andpromote initiatives founded in the priority themes
shown in the table below toward the success of theseobjectives.

Basic Sustainability Policy
Everyone working in the Kanamoto Group will aim to build a foundation for sustainable growth, which is part of our Group Vision, and to contribute to the development of a sustainable society as a member and good corporate citizen of society.

1

We will aim to help combat climate change and other global environmental issues bycapitalizing on the unique sharing economy traits of a rental business.

2

We will aim to help improve labor conditions throughout society by respecting humanrights and consideration toward employee health and work environment.

3

We will aim for sustainable and mutual prosperity by engaging in fair and proper businessdealings with our partners.

4

We will aim to enhance disaster prevention and mitigation and the national resilience ofJapan as well as improve crisis management of natural disasters and other calamities ascore principles of Kanamoto's crisis management.

The Kanamoto Group s priority themes for ESG
Priority ThemesValuecreationFoundation supporting value creation
36 Kanamoto 2023

Relevant SDGs

Kanamoto Group Activities

Businesses contributing to SDGs

Kanamoto products and services will create new value that helps achieve theSDGs and contribute to the development of a sustainable society.

● A business called "rental" that leads
to decarbonization● Asset shift to environmental measuresfor decarbonization● Initiatives for TCFD

Kanamoto will acknowledge the connection between all of its business activities and the environment,
reduce its environmental burden, and preserve biodiversity to realize a sustainable society even with limited global
resources by complying with environmental laws and regulations and promoting appropriate environmental management.

● Comprehensive disclosure and IR
activities

Kanamoto will practice highly transparent and prompt information disclosure, broaden its disclosure mediums,
and enhance IR activities for shareholders and investors in Japan and overseas.

● Contributions to local communities
as well as art and culture

Kanamoto will aim to strengthen partnerships with local communities, contribute to arts, culture,and education as well as facilitate better communication.

● Stronger health and safety systems

Kanamoto will aim to maintain and improve workplace environments so that all executives
and employees can work safely, energetically and with good mental and physical wellbeing.

● Environment inspiring humanresource development

Kanamoto will aim to build an environment inspiring innovation by ensuring diverse human resources with diﬀerent
perspectives and modes of thinking can each be themselves and fully utilize their skills.

● Corporate governance● Compliance● Internal control systems● Risk management

Kanamoto will promote and strengthen compliance and corporate governanceby acknowledging that corporate governance and compliance are criticalmanagement challenges to enhance corporate value.

Kanamoto 2023 37

Sustainability Section (ESG Initiatives)

Environmental Activities

Kanamoto recognizes the growing importanceof addressing the issue of carbon dioxide emissions
and will continue eﬀorts to help build
a sustainable society
A Rental Business Contributing to Decarbonization
Japan pledged to reach carbon neutrality by 2050 in
October 2020. In April 2021, the government then
set the speciﬁc goal for a 46% reduction of CO2
emissions by 2030 compared to ﬁscal 2013. In October 2021, the Prime Minister s Oﬃce of Japan rolled
out the 6th Strategic Energy Plan, which incorporates
Japan s Green Growth Strategy to achieve thispledge and related goals. This strategy advocates astable energy supply and cost reduction while driving
forward measures to combat climate change.
Kanamoto is also highly aware of the increasing
importance of environmental measures that incorporate decarbonization. Our core Group rental businessis in and of itself a sharing economy, which contributes to decarbonization throughout all of society.
Even in the manufacturing industry in which Kanamoto regularly purchase construction equipment on anannual basis, construction equipment manufacturers
are advancing the development of machines withsuperior energy-savings, such as hybrid, ICT, andelectric-drive equipment. According to the Japan
Construction Equipment Manufacturers Association,
the improvement of fuel eﬃciency in the three major
types of equipment (hydraulic excavators, wheel-typeloaders, and bulldozers), and development and adoption of energy-saving equipment including hybrid
models have been estimated to have the potential toreduce CO2 emissions to approximately 1.6 million
t-CO2 (levels of CO2 in 1990) by 2030. The industry is
set to reduce the manufacturing energy consumption
rate by 17% from the actual achievement of 2013 asa target for CO2 reductions by 2030, which has accelerated decarbonization eﬀorts throughout the manufacturing industry.

Asset Shift to Eco-friendly Equipment Toward Decarbonization
We have long been strategically shifting resources
toward equipment with exhaust control. Every year, we
regularly purchase roughly 3,000 units of equipment
complying with exhaust control regulations to replace
existing construction equipment. This investment not
only optimizes operational processes via eﬃcient
vehicle allocation and Digital Transformation (DX)initiatives but also steadily advances decarbonization.
Our eﬀorts are not limited to Kanamoto rental construction equipment. We also actively adopt commercial
vehicles certiﬁed for high fuel eﬃciency and low
emissions. Kanamoto has been an early adopter ofhybrid technology for commercial vehicles since mass
production began in 1988 and consistently upgrading tovehicles with higher fuel eﬃciency and lower exhaustemissions. Moreover, our branches carry out initiatives
to actively use renewable energy via solar power gener-

ation systems installed on the building roofs. A transition
to renewable energy for in-house power consumption
helps reduce CO2 emissions and secures a supply of
power even during power outages resulting fromlarge-scale disasters or other incidents. This helps establish a system for business continuity necessary fordisaster response. To achieve decarbonization andrealize a sustainable society, the Kanamoto must both
respond to user needs and consider environmental
conservation. We will always strive to provide areliable, eco-friendly
rental business, actively
upgrading equipment tomodels that take advantage of environmentally-friendly technologies.
Solar Power Generation System Installedon the Roof of the Kyoto Branch Oﬃce

Our environmentally friendly products* For more details about our products, please visit our website, etc.

38 Kanamoto 2023

Kanamoto 2023 39

Sustainability Section (ESG Initiatives)

TCFD Initiatives

Kanamoto will enhance information disclosure
on climate change based on the TCFD framework

The primary risks, opportunities, and countermeasures are outlined in the table below.
Impact on businesses

Item

40 Kanamoto 2023

Opportunity*1.The Task Force on Climate-Related Financial Disclosures (TCFD) was established based on the request of G20 in 2015 as a task force by the Financial Stability Board(FSB; agency for conducting auditory functions related to international ﬁnance composed of members from ﬁnancial authorities and central banks of each country). To
reduce the risk of unstable ﬁnancial markets, the TCFD advocates companies disclose various information such as the ﬁnancial impact of climate change risks andopportunities on business activities as well as speciﬁc countermeasure and strategies.
*2.The TCFD Consortium is a group launched by investors and companies that support TCFD disclosure for the purpose of collaborative development and sharing of
scenario analyses and techniques to quantify data in each industry.
*3.2015 United Nations Climate Change Conference (COP21) held in Paris, France in December 2015 adopted the Paris Agreement as a new international framework to
reduce greenhouse gas emissions from 2020 in addition to other environmental initiatives.

4°
C Scenario

2°C/1.5°C Scenario

Adoption ofcarbon tax

Increasing businesscosts of carbon taxes

Small

MediumTransition to eco-friendly equipment
promoting energy savings

Strengthening ofvarious regulations toward
a decarbonized society

Increasing costs andlower demand due toregulations

Small

Large

Transition to eco-friendly equipment
promoting energy savings

Expansion of needs
for energy savings
and renewableenergies

Expansion ofenvironment-related
markets (energy
savings, ZEB, etc.)

Medium

Large

Proactive support of projects forenergy savings and renewableenergy

Large

Large

Stronger solutions utilizing ICT andother technologies

MediumMediumStronger Business Continuity Plans (BCP)
coordinating with suppliers,
insurance companies, and other stakeholders

Rising temperatures
Risk

Our Sustainability Committee led by the President as chairwith members made up of management and employees
deliberates and makes decisions about matters on organizational governance related to climate risks and opportunities.
The Committee also reports to the Board of Directors. On
particularly important policies, the Committee also involves
the Board of Directors in the discussion and approval
process. Each division also incorporates the policies andmeasures approved by the Committee into its businessplans. The Committee then reviews these business plans
and regularly reports to the Board of Directors. Each branchalso reports to the Sustainability Committee, which identiﬁes
and monitors the energy consumption connected to carbon
dioxide emissions, through an established reporting system.

by 2100 due to climate change compared to the temperature before the industrial revolution), the IEA Sustainable
Development Scenario (SDS; scenario assuming international cooperation to achieve the long-term goals of the COP21
Paris Agreement sustain a low temperature rise of less than2°
C by 2100 due to climate change compared to thetemperature before the industrial revolution), and the IEANet Zero by 2050 (NZE2050) analysis. The main scenarios
used for the physical risk and opportunity analysis adopted
the Intergovernmental Panel on Climate Change (IPCC) RCP
8.5 (scenario assuming measures to regulate greenhousegas emissions are not taken resulting in a 2.6°
C to 4.8°
C
temperature rise compared to the temperature before theindustrial revolution), the IPPC RCP 2.6 (scenario assuming
mitigation of greenhouse gas emissions suppresses thetemperature rise to 0.3°
C to 1.7°
C compared to thetemperature before the industrial revolution), and SR1.5(Global Warming of 1.5°
C).

Opportunity

Governance

Climate risks and opportunities have a real and potential
impact on businesses, strategies, and ﬁnancial plans of theorganization. To identify the medium- to long-term impact
climate change issues have on our businesses, Kanamoto
has analyzed scenarios anticipating Construction Equipment
Rental Business in Japan after 2030. This analysis adopted ascenario assuming a 4°
C average temperature rise as well as
a 1.5°C to 2°
C temperature rise worldwide by 2100
compared to that before the industrial revolution. Each ofthese scenarios analyzed shifts in government policy andmarket trends (transition risks and opportunities) and thephysical changes (physical risks and opportunities). The
main scenarios used for the transition risk and opportunity
analysis adopted the International Energy Agency (IEA) State
Policy Scenario (STEPs; scenario assuming the current
environmental policies announced by each country arereached but do not meet the long-term goals of the COP21
Paris Agreement*3 resulting in a roughly 4°
C temperature rise

PhysicalKanamoto recognizes its response to environmental issues,
including climate change, as one priority management
challenge. In July 2021, Kanamoto signed and expressed its
support of the Task Force on Climate-Related Financial
Disclosure (TCFD)*1 and joined the TCFD Consortium*2. Evenas companies pursue low and no carbon eﬀorts and markets
ﬂourish, the impact of climate change becomes even more
severe from unusual weather to ﬂooding. The social missionof the construction machine rental business aims to preventand mitigate disasters as well as help recovery after disasterstrikes. The rental industry also leverages the unique characteristics of a sharing economy, which aims to maximize theeﬃcient use of construction machinery. Kanamoto willdevelop this business in a form that will contribute to social
initiatives to combat climate change.

Strategies

Transition（TCFD Disclosure Guidelines）

Risk

Climate Change Disclosure

Countermeasures

Overview

Greater severity ofnatural disasters

Increasing costs to respond toenvironment changes on
construction sites, etc.
Potential of damage as well as rising
insurance premiums, freight costs, andother expenditures due to disasters

National resilience
initiatives

Growth in demand fornational resilience

Large

Large

Shifts in markets due
to climate change

New demand generated
by climate change measures

MediumMediumStronger sales and marketing of
projects building infrastructure
Stronger sales and market
conforming to market trends

Risk Management

Index and Targets

Our Sustainability Committee led by the President aschair with members made up of management andemployees deliberates and makes decisions about
methods for the organization to identify, assess, andmanage climate risks. The Committee also reports to theBoard of Directors. On particularly important policies,
the Committee also involves the Board of Directors in
the discussion and approval process. Each division also
incorporates the policies and measures approved by theCommittee into business plans. The Committee thenreviews these business plans and regularly reports to
the Board of Directors. As one aspect of risk management, the Committee has not only set targets to reducecarbon dioxide emissions, which are one cause ofclimate change, but has also established a reporting
system to identify and review energy consumption
connected to carbon dioxide emissions.
Kanamoto not only has a Sustainability Committee but
also an Internal Control Committee, Compliance
Committee, and Legal Oﬃce, which creates the foundation that supports its internal control systems to address
climate change and all other business risks.

Kanamoto has set short- to long-term CO2 reduction
targets (total/per unit emissions) up to 2050 andpromotes initiatives to reduce CO2 emissions from its
business activities.

Scope 1

Emissions from the use of purchased electricity,heat, etc.
50% reduction by 2030 compared to 2013

Scope 2Emissions from purchased or acquired
electricity, steam, heat, and cooling 50%
reduction by 2030 compared to 2013

Kanamoto 2023 41

Sustainability Section (ESG Initiatives)

Social Activities

Eﬀorts in Developing and Strengthening Excellent Human Resources
Who Are the Driving Force to Achieve Sustainable Growth
Approach to Ensuring the Diversity of Core Human Resources● Develop human resources who embody the Kanamoto corporate philosophy and action guidelines
Target 2

MeasureTarget 3

Measure[Active Participation of Women in the Workplace]

Term
Five years from April 1, 2021 to March 31, 2026
Details
Target 1

Expand the active roles of women in the workplace and increase
the number of female managers 30%
1. Foster a career path for women into sales and actively hire
women as managers of sales blocks and branches.

Measure2. Strengthen recruitment of women into sales and technicalroles and encourage common internal gatherings andcomprehensive training
3. Expand administrative leadership training and upper management
training to create career paths for womenInitiatives to Strengthen Health and Safety Systems
One Initiative Kanamoto is strengthening is safety
training. We have put in place systems that work toprevent accidents around the Safety and HealthOﬃce led by the president. This oﬃce regularly
conducts in-house seminars and audits and works toraise health and safety awareness at all branches.
Our eﬀorts to strengthen health and safety systems
and eradicate occupational accidents have provensuccessful. As many as 29 branches in Kanamoto are
accident-free over the last 20 years.

42 Kanamoto 2023

Build a workplace where every employee can work over thelong term with a sense of satisfaction and improve the rate
employees take annual paid leave 30%● Support employees who want to independently
acquire skills and certiﬁcations

1. Continue no overtime days to help facilitate work-life balance● Expand training programs and encourage exchange
outside the company with the aim of nurturing diverse
views and values

2. Raise awareness about childcare and nursing care programs
to help build a system of mutual understanding andcooperation in the workplace
Strive to cultivate an image of career and employment in local
children and students
1. Create opportunities for employees and business partners tointeract with children in local communities through various
local events
2. Provide student internships and other educational opportunities and work tours through partnerships with schools[Foreign Nationals]
Kanamoto has already built a proven track record ofactively hiring new graduates and mid-career
candidates from overseas. We also employ several
hundred people with a wide range of backgrounds at
local subsidiaries overseas. Our organization emphasizes skills and performance to evaluate potential
management candidates solely on their character.

That is why we have built systems to extract and nurture
the full potential of each and every employee throughstratiﬁed human resource training and development
programs for sales persons, engineers, and administrators. These speciﬁc internal training programs include
training and follow-up training for new employees, sales
leadership training, ﬁfth-year technical training, administrative leadership training, and administrative step-up
training by occupation, as well as new branch manager
training, block plant manager training, and oﬃce manager training for management. In addition, Kanamoto has
also adopted external e-Learning programs teaching avariety of things, such as compliance and management

skills. Kanamoto has also enhanced support programs
that encourage employees in technical ﬁelds to acquirenecessary certiﬁcations. We also actively promoteparticipation in internal education programs focusing on
on-the-job training as well as external training programs
held by various manufacturers.

Qualiﬁed Repair Technicians and Licensed Operators ofConstruction Equipment(As of February 2023)

Qualiﬁcation

Operation Qualiﬁed
Technician Certiﬁcations

Kanamoto rolled out the action plan below inan eﬀort to build a work-friendly environment
where every executive and employee can reach
their full potential and ﬁnd work-life balance
regardless of gender.

We know excellent human resources with a high level ofexpertise and skills are the driving force of sustainablegrowth. Therefore, we have established the Human
Resource Development Policies below.

Repair Qualiﬁed
Technician Certiﬁcations

We believe human resources are the driving force tosustainable growth. To develop global businesses
and address new market needs, the employment of
human resources who have diverse perspectives andvalues is vital. Therefore, we emphasize skills andperformance to evaluate each person solely by theirpersonal character when hiring core management
regardless of gender, nationality, and age.

Emphasis on Human Resource Development for the Future of Kanamoto

Persons

Construction Equipment Repair Mechanic (Expert)

21

Construction Equipment Repair Mechanic (First Class)294

Construction Equipment Repair Mechanic (Second Class)

577

Portable Generator Repair Mechanic

578

Automobile Repair Technician

553

Gas Welding Technician

809

Organic Solvent Work Manager

385

Hazardous Materials Handling Manager

418

Vocational Training Instructor

15

Vehicle-type Construction Equipment Operator

4,433

Mobile Crane Operator

2,113

Large-scale Equipment (Special) Operating License

542

Sling Crane Technician

964

Forklift Operator

794

Shovel Loader Operator

18

NOTE: Number of qualiﬁcations held is the cumulative total of all qualiﬁcations[Mid-career Candidates]
Kanamoto has always actively hired mid-career
candidates, emphasizing skills and performance toevaluate potential candidates solely on their character. In the future, we will continue to cultivate corehuman resources with a good balance between new
graduates and mid-career hires.

Qualiﬁed Repair
and MaintenanceTechnicians forConstruction
Equipment

Kanamoto discloses impartial and proper information,builds relationships with local communities, and engages
in many other activities that enhance corporate value
Appropriate Disclosure and Comprehensive IR Activities

Patronage to Support Development of Local Arts and Culture

Kanamoto knows the importance of an appropriate
market evaluation of corporate value through fair,
precise, and prompt information disclosure. We
strive to not only provide information about management and business conditions as well as corporate
activities but also timely and active disclosure of valid
information for everyone to understand and assess
the Kanamoto Group. Our IR eﬀorts had actively
focused on presentations at IR events for individual
investors, small meetings with institutional investors
in Japan, and IR events overseas. However, as ameasure to combat the spread of the novel coronavirus infection, the Kanamoto Group has put in placesystems to consistently communicate with shareholders from ﬁnancial results brieﬁngs to online rather
than in person question-and-answer sessions.

Kanamoto believes its patronage to support arts and culture
helps to enhance its corporate value. As part of this support,
we provide Providence, a former beer hall owned by Kanamoto, free of charge to Muroran City in Hokkaido as a venue for its
Port Literature Museum. Kanamoto has also acquired thenaming rights for the Sapporo Civic Hall where 400,000 people
a year attend concerts and take part in life-long learning opportunities. This venue has come to be adored as the Kanamoto
hall. The Kanamoto Group works to not only improve its brandrecognition but also to help vitalize local education and culture.

Former Providence Beer Hall Provided
to Muroran City in Hokkaido Free of Charge

Kanamoto Hall (Sapporo Civic Hall) Housing aLarge 1,500-person Event Hall as well as
Small, Medium and Large Conference Rooms

Kanamoto 2023 43

Sustainability Section (ESG Initiatives)

GovernanceKanamoto Group Corporate GovernanceCorporate Governance Structure(As of February 1, 2023)

Overview and Logic Behind Kanamoto Corporate Governance

Basic Approach to Corporate GovernanceThe basic Kanamoto approach to corporate governance is to engage in business activities according toa management philosophy that builds and strengthens trust with shareholders, customers, partnercompanies and local communities as well as employees and their families, which not only enhances
corporate value but also helps realize the sustainable
development of our Group. Therefore, we strive tobuild internal management systems as well as

maintain and improve the transparency and fairnessof management. Our basic approach to corporate
governance establishes an information cycle fortimely information disclosure and feedback to
management as well as engages in prompt andprecise governance measures. We have also deﬁned
the action guidelines below to raise speciﬁc awareness throughout the Kanamoto Group about ourmanagement philosophy.

１

2

Seek change,

Always remember

and mobilize every resource

Kanamoto is a teamcompeting to win proﬁts

The external environment around
Kanamoto is always changing andwill never stop. Our Group must
evolve to adapt to these changes and avoid weakness andbankruptcy in the future. Ceaseless self reformation is essential toachieve an ever vibrant organization. Previous success clearly leads
to over-conﬁdence. We must
quickly put our successes in thepast and learn from our mistakes
in the pursuit of mental readiness.

The product and service oﬀeringsof a company strive to accomplish many things from contributing to society and paying taxes toensure stable employment.
However, any eﬀort is pointless if
the company ceases to exist.
Only proﬁt guarantees the survival of a company, and revenue isearned by beating the competition. However, proﬁt should not
be earned by any means necessary. Every company and its
employees must adhere to compliance as business professionals
while never engaging in inappropriate acts as a public entity(company).

Kanamoto Corporate Governance Structure
General Meeting of the Shareholders

Maintain a self-directed
and independent mind

None of us can rely on others toprotect our company and ourlifestyles. We must trust in ourown abilities to take us leaps andbounds ahead and understandthat no one will help us overcome
our failures. All of us must be
responsible for our actions. The
best time to evolve and diﬀerentiate oneself from competitors iswhen the business environment
around us is unfavorable.

corporate auditors has been put in place to execute
managerial audits. Currently, three of the ﬁve corporate auditors at Kanamoto are outside auditors andindependent oﬃcers. The selection of highly independent outside auditors strengthens management
supervisory functions and allows us to eﬀectively use
functions of auditors, ensuring uncompromising
corporate governance.
The Board of Directors is also comprised of eight
members who are well versed in Kanamoto Groupbusinesses, and of ﬁve highly independent outside
directors who bring unique management experienceand expertise from other industries, to facilitate rapid
and accurate management decision-making.

Election and dismissal(Decision-making and supervision)
Board of Directors (Directors and Outside Directors)
Consulation and reporting

Collaboration
Accounting audits

Accounting auditors（Audit corporation）

Audit by Auditors

Corporate Auditors（Auditors and Outside Auditors）

Election and dismissal

President and CEO
Sustainability Committee

Election and dismissal

ReportingInternal Control Committee
Compliance Committee

Direction

Election and dismissal

to energize the company

3

Corporate governance is the fundamental platform
for companies to enhance their social value. Kanamoto and the Kanamoto Group have adopted thevarious corporate governance systems used today forthe purpose of establishing the best and mostadvanced corporate governance considering theconditions and scale of the organization. We haveadopted an outside director system to ensure more
eﬃcient and sound management as well as transparency about our decision making. The executive oﬃcer
system put in place at Kanamoto also better clariﬁes
supervision and accountability functions.
A one-year term for director appointments establishes a ﬂexible management system while a board ofInternal Control and
Auditing Oﬃce

Internal Audit

Legal Oﬃce
Consultation and Advice（Execution of activities）
Corporate oﬃcers
Operating divisions

Consultation and Advice

Advising attorney* Please refer to the Corporate Governance Report for more details on corporate governance.

44 Kanamoto 2023

Kanamoto 2023 45

Sustainability Section (ESG Initiatives)a. Board of Directors
Currently, the Board of Directors is composed of 13
directors, ﬁve of whom are outside directors, forbroader perspectives in decision-making and oversightof business execution. As the highest decision-making
authority on the execution and supervision of management strategies and business plans, the Board of
Directors strives to respond quickly to continually
evolving business conditions according to rules
governing the Board of Directors by not only holding
regular Board of Directors meetings but also extraordinary Board of Directors meetings when necessary.
Members of the Board of Corporate Auditors as well
as executive oﬃcers (ten members excluding individuals serving concurrently as director) attend these
Board of Directors meetings.
Chairman of the Board

Representative Director Kanchu Kanamoto
Board members
President and CEO Tetsuo Kanamoto, Director Tatsuo
Kanamoto, Director Kazunori Hashiguchi, Director Akira
Sannomiya, Director Jun Watanabe, Director Shun
Hirose, Director Hideaki Yamashita, Outside Director
Susumu Naito, Outside Director Eiji Arita, Outside
Director Motoki Yonekawa, Outside Director Ayako
Tabata, and Outside Director Tetsuya Okawa

b. Board of Corporate Auditors
Kanamoto is a company with a Board of Corporate
Auditors. Currently, the Board of Corporate Auditors
consists of ﬁve corporate auditors, three of whom areoutside corporate auditors. All members of the Boardof Corporate Auditors regularly attend Board of Direc-

tors meetings to oversee the business execution of
directors and fulﬁll supervisory functions while creating
an environment where management appropriately
exchanges information and shares opinions on a daily
basis.
ChairmanStanding Corporate Auditor Eichu Kanamoto
Board members

Standing Corporate Auditor Naoyuki Yokota, Outside Corporate
Auditor Noriaki Ikushima, Outside Corporate Auditor Yasushi
Ishiwaka, Outside Corporate Auditor Iwao Takeuchic. Corporate Oﬃcer System
Kanamoto introduced the corporate oﬃcer system in2001 to build a framework that clariﬁes responsibilities
for business execution, enhances dissemination ofmanagement policies and other top-down directives,
and raises employee awareness about corporate
policy. These corporate oﬃcers formulate meticulous
management strategies to quickly adapt to changes in
the market environment as well as ensure comprehensive management of each business division and aﬃliatecompany. Currently, Kanamoto has 17 corporate
oﬃcers, seven of whom serve concurrently as director.
d. Sustainability Committee
The Sustainability Committee chaired by the president
was established for the purpose of building a foundation for sustainable growth, which is part of our Group
Vision, and contributing to the development of asustainable society as a member and good corporate
citizen of society.

Skill Matrix
Name

Corporate
management

Dialogue withcapital markets

Rental business andindustry knowledge

Global business

Kanchu Kanamoto
Tetsuo Kanamoto

Finance andaccounting

Legal andcompliance

About Oﬃcer Remuneration
Amounts and Calculation Methods for Oﬃcer Remuneration
Several Kanamoto directors serve concurrently as corporate oﬃcers. Kanamoto believes in an approach that clearly
separates remuneration for these duties. Director remuneration is ﬁxed remuneration for management decision-making and auditing functions, while corporate oﬃcer remuneration reﬂects a performance-based evaluation, which links
the ﬁxed portion of the remuneration with business performance to function as incentives.
The President and Chief Executive Oﬃcer with the consent
of the Board of Directors has discretion to determine anamount of compensation for each director within the upper
limit of remuneration approved at the General Meeting of
Shareholders according to an evaluation of each director.
Kanamoto determines ﬁxed remuneration for outside
directors according to their role and independence.
Kanamoto determines remuneration for corporate auditors
through deliberation with the Board of Corporate Auditors
within the upper limit of remuneration approved at theGeneral Meeting of Shareholders.
The Board of Directors has determined the remunerationfor each individual is in line with the relevant decision-making policies.
A resolution at the 26th General Meeting of Shareholders
convened on January 24, 1991 set the upper limit of
remuneration for directors at an annual amount of ¥240
million (not including the employee salaries). The number of
directors at the conclusion of the 58th General Meeting ofshareholders held on January 26, 2023 was nine directors.
The 56th General Meeting of Shareholders convened on
January 28, 2021 set the upper limit of remuneration

Sales andmarketingTotal Remuneration and Other Compensation by Oﬃcer Classiﬁcation,
Total Amount by Type of Remuneration and Other Compensation, and Eligible Number of Oﬃcers

Tatsuo Kanamoto
Kazunori Hashiguchi
Akira Sannomiya
Jun Watanabe
Shun Hirose
Hideaki Yamashita
Susumu Naito
Eiji Arita
Motoki Yonekawa
Ayako Tabata
Tetsuya Okawa

provided for under the transfer-restricted stock-based
compensation system for directors (excluding outside
directors) to no more than ¥100 million annually.
A resolution at the 42nd General Meeting of Shareholders
convened on January 26, 2007 set the upper limit of
remuneration for corporate auditors at an annual amount of¥50 million. The number of corporate auditors at theconclusion of the General Meeting of shareholders this year
is two corporate auditors.
The President and Chief Executive Oﬃcer Tetsuo Kanamotowith the consent of the Board of Directors has discretion todetermine an amount of remuneration for individual
directors. Kanamoto has given the Representative Director
and President this discretion because it has determined him
to be the best person to evaluate the divisions of which
each director is in charge.
Kanamoto provides incentives to directors (excluding
outside directors; hereinafter eligible directors) for sustainable enhancements of corporate value and a transfer-restricted stock-based compensation system in order tobetter share value with the shareholders. The eligible
directors will receive payment of all monetary compensation claims to be paid as property contributed in-kind toissue or dispose of common Company stock based on theapproval of the Board of Directors. The monetary compensation claim shall not exceed ¥100 million annually, which
equates to the issue or disposal of no more than a total of
50,000 shares in common Company stock. Moreover, theBoard of Directors shall determine the speciﬁc payment
period and allocation of payment to each eligible director.

Oﬃcer
Classiﬁcation

Total
Remuneration
and Other
Compensation(Millions of Yen)

Directors(excluding outside directors)
Corporate Auditors(excluding outside corporate auditors)
Outside Corporate Oﬃcers

Total Amount by Type of Remuneration and Other Compensation (Millions of Yen)

Numberof EligibleOﬃcers(Persons)

Fixed
Remuneration

Performancebased
Compensation

Retirement
Beneﬁts

Non-monetary
remuneration, etc.
from compensation
included on the left

109

109

−

−

14

9

25

25

−

−

−

2

10

10

−

−

−

6

(Note) Breakdown of the total non-monetary remuneration, etc. for directors (excluding outside directors) is ﬁxed remuneration of ¥14 million.

Material Salaries Paid to Corporate Oﬃcers Serving Concurrently as Employees
Total (Millions of Yen)

Number of Eligible Oﬃcers (Persons)Details108

7

Amount paid as employee salaries

Note: Not intended as an exhaustive representation of each individual's knowledge and experience.

46 Kanamoto 2023

Kanamoto 2023 47

Sustainability Section (ESG Initiatives)

ComplianceInternal control systems

Kanamoto Actively Raises Awareness About Legal and Regulatory Compliance for the Purpose of Increasing Compliance Throughout the Organization

Other Corporate Governance Matters

We believe that the foundation that supports a company is fortiﬁed by strengthening its compliance structure.
Therefore, Kanamoto conducts a variety of activities to raise awareness about compliance.

Initiatives to Establish Compliance
Promotion System
Kanamoto formulated Ethics Guidelines and created
a compliance manual based on the guidelines toestablish a legal and ethical framework of compliance for the entire company centered upon the
Compliance Committee, which is chaired by thepresident.

Utilization of Consultation and Reporting Hotline
Kanamoto has launched a consultation and reporting
hotline as a contact point to consult and report on
unlawful or inappropriate actions from both insideand outside of the company to actively strengthen
the compliance system. This system is used by thecompany and our group companies when the person
is not sure what is the right thing to do to performtheir duties in accordance with our code of conduct,
or if you suspect that another employee's behavior
may be in violation.
Of course, we carefully handle all of the information
so that every whistleblower remains anonymous.

Raising Compliance Awareness
Kanamoto has created a manual as common compliance standards so that all executives and employeesof the company and its group companies can operatewith the same level of compliance. We are raisingcompliance awareness through holding regulartraining to raise awareness. We also create anddistribute a handbook summarizing the standards of
employee conduct.

Board of Directors
President and Chief Executive Oﬃcer
Appointment• Build, maintain, and manage compliance structure
as well as department training and awarenessraising activity• Monitor compliance status of departments as well
as report and consult with Compliance Committee

Consult/Report

Guide/Advice

Status of Systems to Ensure Proper Business Practices at Subsidiaries Subject to Mandatory Reporting
Kanamoto oversees Group company management in accordance with the Guidance Rules for Aﬃliated Company
Operations. The regulations make regular reports from Group companies on business performance, operating results
and ﬁnancial conditions mandatory while also ensuring proper business practices through audits by the Internal
Control and Auditing Oﬃce when necessary.

Kanamoto adamantly prohibits any and all business dealings and relationships with antisocial forces, individuals orgroups who threaten public order and safety or obstruct sound corporate operations in its Ethics Guidelines. We are
not only uncompromising in our stance of exclusion but also strive to gather information from specialized external
agencies and conduct internal employee training and other enlightenment programs through the proper departments. In emergency situations, Kanamoto seeks assistance from competent police departments, legal counsel andother relevant authorities to systematically intercept and stop unreasonable demands from antisocial elements.

Board of Corporate Auditors

Person in charge of compliance

Kanamoto has established a variety of bodies as its internal control system. The Internal Control and Auditing Oﬃce
carries out, evaluates, improves and when necessary rectiﬁes the level of compliance with internal procedures andrules as well as laws and regulations applying to all business activities in addition to internal control pertaining tobranch operation, consolidated subsidiaries, and other ﬁnancial reporting. The Legal Oﬃce handles all legal aﬀairs.
Kanamoto has also established a Compliance Committee chaired by Kanamoto President and CEO and an Internal
Control Committee chaired by the General Manager of the Administration Division.

Basic Approach and Current Measures for the Exclusion of Antisocial Forces

Kanamoto Group Compliance Structure〈At each branch, department, Group company〉

Kanamoto Internal Control System

Appointment
ReportConsult

SupportGuide

Compliance Committee
Chairperson: President• Inspect and improve ethical standard compliance• Build, maintain, and manage compliance structure
as well as training and awareness raising activity• Create and revise the compliance manual• Monitor compliance status• Handle reports and consultations from person in
charge of compliance

ReportConsultation and Reporting Hotline (consultation and reporting system)• Internal hotline• External hotline (corporate lawyer)

Training/
Awarenessraising

Consult/Report

Kanamoto Group employees

48 Kanamoto 2023

Kanamoto 2023 49

Sustainability Section (ESG Initiatives)

Board of Directors （As of February 1, 2023）(Note1) Asterisk indicates directors who hold the additional post of Corporate Oﬃcer.
(Note2) Only the position titles at Kanamoto are shown, and oﬃcial positions being performed concurrently have been omitted.

Directors

Kanchu Kanamoto

Tetsuo Kanamoto*

Tatsuo Kanamoto*Kazunori Hashiguchi*

Chairman of the Board andRepresentative Director

President and CEO
Executive Division Manager,
Business Coordination
Headquarters

Division Manager, Construction
Equipment Rental Division
Regional Manager, Construction Equipment
Rental Division Hokkaido Region
General Manager, Steel Sales Division

Division Manager, Human
Resources Division
General Manager, Business
Development Oﬃce

Akira Sannomiya*

Jun Watanabe*

Shun Hirose*

Hideaki Yamashita*

Division Manager,
Business Administration Division
Division Manager,
Used Products Sales Division
President and CEO Kanatech Co., Ltd.

Division Manager, National
Special Demand Sales Division
General Manager, New Products Oﬃce
President and CEO
KG Flowtechno Co., Ltd.

Division Manager, Accounting Division
General Manager, Public Relations Oﬃce
General Manager, Bill Collection Center

Division Manager,
Overseas Business Division

Susumu Naito

Eiji Arita

Motoki Yonekawa

Ayako Tabata

Outside Director

Outside Director

Outside Director

Outside Director

Auditors

Tetsuya Okawa

Eichu Kanamoto

Naoyuki Yokota

Noriaki Ikushima

Outside Director

Standing Corporate Auditor

Standing Corporate Auditor

Outside Corporate Auditor

Yasushi Ishiwaka

Iwao Takeuchi

Outside Corporate Auditor

Outside Corporate Auditor

Corporate Oﬃcers

Hiroshi Kumagai
Division Manager,
Information System
Division

50 Kanamoto 2023

Satoru Toiya

Division Manager,
Construction Equipment
Rental Division
President and CEO
Assist Co., Ltd.

Nobuyuki Sato Hideki Nakaya
Division Manager,
Business Planning
Division

General Manager, Internal
Control and AuditingOﬃce
General Manager,
Business Process
Reengineering Oﬃce

Seiichi Tanaka
President and CEONISHIKEN.CO., LTD.

Mitsuo Watanabe
President and CEO
Unite Co., Ltd.

Takashi Onoda
Division Manager,
Administration
Division
General Manager,
Secretary Oﬃce

Keiji Yamane

Regional Manager,
Construction Equipment
Rental Division Kanto &Koshinetsu Region
Division Manager,
Specialized Equipment
Engineering Division

Toru Ito

Regional Manager,
Construction
Equipment
Rental Division
Tohoku Region
President and CEO
CENTRAL Co., Ltd.

Yasuhito Fujiwara
General Manager,
Aﬃliated BusinessOﬃce

Kanamoto 2023 51

Facts and Data
Report of Operating Results and Financial Position for the 58th Business Period(November 1, 2021 ‒ October 31, 2022)

Matters Concerning the Corporate Group(Millions of yen; % change from prior year)

Summary of consolidated ﬁscal year operating results

Summary of consolidated operating results by business segment

During the current consolidated ﬁscal year, the Japanese
economy showed signs of recovery in economic activities that
had been stagnant due to the COVID-19 pandemic, butconditions remained unpredictable due to the prolonged
situation in Ukraine, soaring raw material prices, and growing
concerns of an economic recession due to global monetary
tightening and other factors.

Business related to the Construction
Equipment Rental Division

In the construction industry in which our Group is involved,
public-sector investment remained strong and private-sector
investment showed signs of gradual recovery, although thesituation still requires careful attention as the supply shortageof semiconductors, soaring material prices, and a chronic
shortage of skilled construction workers have also become
serious.
In such circumstances, based on the three key measures ofthe Medium-Term Management Plan "Creative 60"(FY2020‒2024), the Group strove to further improve management eﬃciency by strengthening the foundation of ourAlliance Group in Japan and overseas and pursuing synergies,
while at the same time promoting a ﬂexible investment
strategy that meets actual demand. In addition, we focusedon sustainable development and increasing corporate value
by realizing eﬃcient utilization of rental assets and building anorganizational structure for sustainable solutions to issues.
In the ﬁscal year ended October 31, 2022, the Group reported net sales of ¥188,028 million. Proﬁts were aﬀected by thetrend in rental demand, and by an increase in sales-related
and administrative expenses due to future-oriented
investment in human resources. Operating proﬁt decreased
9.5% to ¥13,229 million, ordinary proﬁt decreased 10.5% to¥13,780 million, and proﬁt attributable to owners of parent
decreased 6.3% to ¥8,345 million.

Consolidated Operating Results
Fiscal year ended
October 31, 2021
Net sales

Other businesses
In the Group s other businesses, net sales was ¥17,594
million and operating proﬁt increased by 11.0% 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.

Divisional Sales (Consolidated)
Fiscal year ended
October 31, 2021

189,416（5.8） 188,028（ ー ）Construction equipment
rental business

Operating proﬁt

14,624（2.6）

13,229（ - 9.5）

Other businesses

Ordinary proﬁt

15,391（7.9）

13,780（ - 10.5）

Total

8,907（5.2）

8,345（ - 6.3）

Proﬁt attributable toowners of parent
Net income per share￥ 235.55￥ 224.64(Millions of yen; % change from prior year)

52 Kanamoto 2023

17,5949.7%

FY2022

18,395（0.9%）

In the construction-related business, which is Kanamoto's
core business, public-sector investment remained ﬁrm,
centering on national land resilience measures andinfrastructure-related construction. Private-sector investment showed signs of picking up, but regional diﬀerences,
as well as delays and slow progress in construction due tosoaring material prices at some sites, prevented afull-ﬂedged recovery in construction equipment rental
demand. The Group also strove to strengthen its ability to
be responsive with maintenance in the ﬁelds of repair ofsocial capital and renewable energy, where further investment is expected to grow in the future. At the same time,
we promoted technological development and businessalliances to realize DX at construction sites and to reduce
environmental impact through the use of digital technology.
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 carriedout the extension 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.

Fiscal year ended
October 31, 2022

9.4%

Consolidated Sales and Sales Ratio by Segment

Fiscal year ended
October 31, 2022

（ ー ）171,020（6.3） 170,433（ ー ）18,395（0.9） 17,594（ ー ）189,416（5.8） 188,028(Millions of yen; % change from prior year)(Note) Since the Company has applies the Accounting Standard for Revenue
Recognition (ASBJ Statement No. 29, March 31, 2020) and relevant
ASBJ regulations from the beginning of the 58th term, the above ﬁgures
for the 58th term (ﬁscal year ended October 31, 2022) are ﬁgures after
the application of the said accounting standard and relevant ASBJ
regulations. As a result, year on year changes are not shown.

10.2%

18,226（-3.4%）

Net sales

188,028

FY2021

Net sales

189,416（5.8％）FY202090.6%

Net sales

179,053（-0.9％）

170,433

90.3%

89.8%

171,020（6.3%）

160,826（-0.6%）

Construction Equipment Rental Business

Other Businesses

Forecast for the 59th ﬁscal year (ending October 31, 2023)
As for the outlook for the ﬁscal year ending October
31, 2023, public-sector investment is expected toremain ﬁrm and private-sector construction investment is also expected to continue its gradual recovery
trend. However, the outlook is expected to remain
uncertain due to concerns that heightened geopolitical risks, yen depreciation, and rising construction
costs may dampen the recovery in demand. On theother hand, we believe that the demand stemmingfrom eﬀorts to achieve a sustainable society, including
decarbonization and digitalization, is expected tocontinue to grow and will require more focused
responses. Under these circumstances, the Group willbuild a solid proﬁt base by further pursuing theeﬃcient use of the assets we own, based on the three
key measures of expansion of our domestic base ofoperations, overseas expansion, and optimization ofinternal operational processes, in order to achieve thegoals of our Medium-Term Management Plan, Creative
60 (FY2020-FY2024). In addition, we will continue topromote growth strategies for the future in areas suchas renewable energy and ICT, while working to develop sustainable solutions to issues toward realizing asustainable society and sustained growth for theCompany. As a result of the above measures, for theﬁscal year ending October 31, 2023, we forecast
consolidated business results of ¥198,000 million insales (up 5.3% year on year), ¥14,000 million in
operating proﬁt (up 5.8% year on year), ¥14,100
million in ordinary proﬁt (up 2.3% year on year), and¥8,400 million in proﬁt attributable to owners ofparent (up 0.7% year on year).

Projected Operating Results for the Fiscal Year Ending October 31, 2023
Consolidated full-year projection

Non-consolidated full-year projection

198,000（5.3）

118,900（2.8）

Operating proﬁt

14,000（5.8）−

Ordinary proﬁt

14,100（2.3）

7,900（6.0）

8,400（0.7）

5,300（6.9）

Net sales

Consolidated：Proﬁt attributable to owners of parent / Non-consolidated：Net income
Net income per share￥ 231.87*Purchase of treasury shares was resolved during the Board of Directors meeting on December 9, 2022.
Net income per share in the forecast of consolidated business results for the 59th term (ﬁscal year
ending October 31, 2023) takes in account eﬀects of the purchase of treasury shares.

￥ 146.30(Millions of yen; % change from prior year)

Kanamoto 2023 53

Facts and Data

Consolidated Financial Statements
Consolidated Balance Sheets

Consolidated Statements of Income

Prior consolidated
ﬁscal year

Current consolidated
ﬁscal year
(As of October 31, 2022)(As of October 31, 2021)

Prior consolidated
ﬁscal year

Current consolidated
ﬁscal year

Millions of yen

Millions of yen

Millions of yen

Millions of yen(As of October 31, 2021)(As of October 31, 2022)

Liabilities

AssetsCurrent liabilities

Current assets
Cash and deposits¥ 56,093¥ 47,565

Notes and accounts payable - trade¥ 37,082¥ 33,714

Notes and accounts receivable - trade39,305−

Short-term borrowings

960

980

Notes and accounts receivable - trade, and contract assets−

38,452Current portion of bonds payable

24−

Electronically recorded monetary claims - operating

7,319

8,025

Current portion of long-term borrowings

13,055

13,913Merchandise and ﬁnished goods

1,666

1,729

Lease obligations

1,269

1,444

Costs on construction contracts in progress

82−

Income taxes payable

2,681

1,957

Raw materials and supplies

1,375

1,432

Provision for bonuses

1,548

1,579

Construction machine parts

18,05517,047

Accounts payable - other

24,54524,853

Other

3,123

4,098

Other

6,063

4,022

Allowance for doubtful accounts

(269)

(284)

Total current liabilities

87,23082,465

126,751

118,066

31,46034,659Total current assets
Non-current assets

Non-current liabilities
Long-term borrowings

Property, plant and equipment

Lease obligations

2,888

3,179

262,239

282,605

Long-term accounts payable - other

44,486

41,121

Accumulated depreciation(164,193)(181,989)

Retirement beneﬁt liability

566

374

Rental equipment, net

98,046100,616

Asset retirement obligations

588

657

Buildings and structures

42,68044,709Deferred tax liabilities

1,501

2,095

Accumulated depreciation(24,656)(26,128)

Other

Buildings and structures, net

18,024

18,581

Total non-current liabilities

Machinery, equipment and vehicles

9,764

10,088

Accumulated depreciation(8,141)(8,511)

Machinery, equipment and vehicles, net

1,623

1,576

37,68438,688

Rental equipment

Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment

2,899

4,570

(2,143)(2,305)

756

2,265

156,135

161,728

Intangible assets

Total liabilitie

115

154

81,607

82,242

168,837

164,708

Net assets
Shareholders equity
Share capital

17,82917,829Goodwill

4,111

3,810

Capital surplus

19,326

19,332Customer-related assets

1,276

1,395

Retained earnings

89,04894,399

Other

1,516

1,511

Treasury shares

Total intangible assets

6,904

6,717

Total shareholders equity

Investment securities

9,249

9,699

Deferred tax assets

2,175(1,978)(3,945)

124,226

127,616

Valuation diﬀerence on available-for-sale securities

2,249

2,181

2,370

Deferred gains or losses on hedges

0

−

977

5,213

Foreign currency translation adjustment

541

2,198

2,069

2,081

Remeasurements of deﬁned beneﬁt plans

(60)

(37)

Total accumulated other comprehensive income

2,729

4,342

7,960

8,652

Investments and other assets

Long-term loans receivable
Other

(507)

(556)

Total investments and other assets

13,96318,808

Total non-current assets
Total assets

54 Kanamoto 2023

177,003

187,253¥ 303,754¥ 305,320

Non-controlling interests
Total net assets
Total liabilities and net assets

134,917140,611¥ 303,754¥ 305,320

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

Millions of yen

Millions of yen¥ 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
20
18
−
−
59

19
6
−
34
135
196

275
172
174
81
703
14,747
5,145
(190)
4,954
9,793
885
¥ 8,907

222
4
174
−
402
13,574
4,174
344
4,518
9,056
711
¥ 8,345

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
Foreign exchange losses
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 and associates
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 assets
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
Loss on extinguishment of tie-in shares
Total extraordinary losses
Proﬁt before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Proﬁt
Proﬁt attributable to non-controlling interests
Proﬁt attributable to owners of parent

Consolidated Statements of Comprehensive Income
Prior consolidated ﬁscal year

Accumulated other comprehensive income

Allowance for doubtful accounts

Prior consolidated ﬁscal year
(From November 1, 2020 to October 31, 2021)

Proﬁt
Other comprehensive income
Valuation diﬀerence on available-for-sale 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 to owners of parent
Comprehensive income attributable to non-controlling interests

Current consolidated ﬁscal year

(From November 1, 2020 to October 31, 2021)(From November 1, 2021 to October 31, 2022)

Millions of yen

Millions of yen¥ 9,793¥ 9,056

727
0
667
(14)
1,381
11,174

(67)
(0)
1,657
30
1,620
10,676

10,290
¥ 884

9,957
¥ 718

Kanamoto 2023 55

Facts and Data

Consolidated Financial Statements
Consolidated Statements of Changes in Equity (From November 1, 2020 to October 31, 2022)

Consolidated Statements of Cash Flows

Shareholders' equity（Millions of yen）

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders equity¥ 17,829¥ 19,324¥ 82,599¥ (2,009)¥ 117,744

Changes during period
Dividends of surplus(2,457)(2,457)

Proﬁt attributable to owners of parent

8,907

8,907

Purchase of treasury shares
2

Restricted stock compensation

(0)

(0)

31

33

Net changes in items other than shareholders equity
Total changes during period
Balance at end of period
Balance at beginning of period

2

−

6,449

6,482

17,82919,32689,048(1,978)124,226¥ 17,829¥ 19,326¥ 89,048¥ (1,978)¥ 124,226(0)(0)

Cumulative eﬀects of changes in accounting policies
Restated balance30

19,326

17,82989,048(1,978)124,226

Dividends of surplus(2,994)(2,994)

Proﬁt attributable to owners of parent

8,345

8,345

Change in ownership interest of parent due totransactions with non-controlling interests

5

5

Purchase of treasury shares
0

Restricted stock compensation(2,000)(2,000)33

33

Net changes in items other than shareholders equity
Total changes during period

−

6

5,350

(1,967)3,389¥ 17,829¥ 19,332¥ 94,399¥ (3,945)¥ 127,616

Accumulated other comprehensive income
Valuation
Deferred
diﬀerence on
gains oravailable-for-sale losses on
securities
hedgesBalance at beginning of period¥ 1,522−

Foreign
Total accumulated
Remeasurements
currency
otherof deﬁned
translation
comprehensive
beneﬁt plansadjustment
incomeNon-controllinginterests

Total net
assets¥(49)¥ 7,097¥ 126,188¥(126)¥ 1,346

Changes during period
Dividends of surplus−(2,457)

Proﬁt attributable to owners of parent

−

8,907

Purchase of treasury shares−(0)

Total changes during period
Balance at end of period
Balance at beginning of period

33−

Restricted stock compensation
Net changes in items other than shareholders equity

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¥ 2,249

0

¥ 541

¥(60)

¥ 2,729¥ 7,960¥ 134,917

2,249

0

541

(60)

2,729

7,960

134,917(0)

Cumulative eﬀects of changes in accounting policies
Restated balance
Changes during period
Dividends of surplus−(2,994)

Proﬁt attributable to owners of parent

−

8,345

Change in ownership interest of parent due totransactions with non-controlling interests−

5

Purchase of treasury shares−(2,000)Restricted stock compensation−

33

Net changes in items other than shareholders equity
Total changes during period
Balance at end of period

56 Kanamoto 2023

Cash ﬂows from operating activities

(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（Millions of yen）

Fiscal year Fiscal year
ended
ended
October 31, October 31,
2021
2022

Cash ﬂows from investing activities

Proﬁt before income taxes

14,747

13,574

Payments into time deposits

(757)

(722)

Depreciation

31,064

31,912

Proceeds from withdrawal of time deposits

763

741

Amortization of goodwill

648

615

Purchase of investment securities

(9)

(301)

Loss (gain) on sale and retirement of non-current assets

254

202

Proceeds from sale of investment securities

32

25

Cost transfer resulting from sale of rental equipment

793

775

Purchase of property, plant and equipment(3,528)(4,793)

Proceeds from sale of property, plant and equipment

95

35

Purchase of construction equipment and materials

(968)

(769)

(562)

(471)

(5,424)(5,645)

Proceeds from sale of intangible assets

12−

Loss (gain) on valuation of investment securities

172

4

Purchase of shares of subsidiaries

(8)

(815)

Loss on valuation of shares of subsidiaries and associates

174

174

Proceeds from sale of shares of subsidiaries and associates

22

22

Loss (gain) on extinguishment of tie-in shares

81

(135)

Loan advances(14)(5,761)

Loss (gain) on sale of shares of subsidiaries and associates

(20)

(6)

Proceeds from collection of loans receivable

177

583

Increase (decrease) in allowance for doubtful accounts

(76)

45

Collection of long-term accounts receivable - other

186

126

Increase (decrease) in provision for bonuses

70

14

Other, net

216

0(3,373)(11,331)

Increase (decrease) in retirement beneﬁt liability

47

24Interest and dividend income

(206)

(243)

Assets buy on the installment plan purchase
payment interest for rentals

622

598

Interest expenses

102

102

Redemption of bonds

(44)

(24)

Foreign exchange losses (gains)

(95)

(238)

Net increase (decrease) in short-term borrowings

(75)

20

Proceeds from long-term borrowings

14,98015,894

Decrease (increase) in trade receivables

1,242

−

Decrease (increase) in trade receivables andcontract assets

Repayments of long-term borrowings(14,415)(14,684)−−520

Repayments of installment payables(25,331)(25,686)

(513)

(15)

Repayments of lease obligations(1,432)(1,397)

Increase (decrease) in trade payables(1,237)(3,736)(0)(2,000)

Increase (decrease) in accounts payable - other

1,886

2,105

(2,454)(2,993)

Other, net

1,252(1,280)

Dividends paid to non-controlling interests

(20)

(20)

Subtotal

44,61938,601

Net cash provided by (used in) ﬁnancing activities(28,794)(30,893)Eﬀect of exchange rate change on cash and cash equivalents

90

276

Interest and dividends received

202

245

Net increase (decrease) in cash and cash equivalents

7,274(8,790)Interest paid

(727)

(704)

Cash and cash equivalents at beginning of period

48,02355,557

Income taxes paid

(4,742)(4,985)

Increase in cash and cash equivalents resulting
from merger with unconsolidated subsidiaries

260

279

Net cash provided by (used in) operating activities

39,351

33,158Cash and cash equivalents at end of period

55,55747,047Purchase of rental equipment

Changes during period

Balance at end of period（Millions of yen）

Fiscal year Fiscal year
ended
ended
October 31, October 31,
2021
2022

Decrease (increase) in inventories

Purchase of intangible assets

Net cash provided by (used in) investing activities

Cash ﬂows from ﬁnancing activities

Purchase of treasury shares
Dividends paid

Kanamoto 2023 57

Facts and Data

Branch Network

Promoting Favorable Business Alliances with
Leading Companies Worldwide and M&A Strategy to
Drive Synergy and Enable the Highest Quality Services

Alliance Group

Development and Expansion of a Worldwide Sales Business Platform
via an Ever Broadening Kanamoto Branch Network

The Kanamoto Group branch alliance boasts 550 locations in Japan and 573 locations with overseas combined.
KANAMOTO
AUSTRALIA
HOLDINGS PTY LTD

Branch Strategies in Japan
Our fundamental branch strategy in Japan fosters need-oriented development accounting for large scale projects in various
regions while building a solid business base through expansion
strategies in Tokyo and other metropolitan areas where public
and private demand are concentrated in addition to fromkanamoto co.,ltd

Kanto to the west and Kyushu where Kanamoto does not yet
have a presence. Kanamoto will continue to build a morecomprehensive branch network by eﬀectively expanding
branches while promoting favorable business alliances and
M&A strategies with leading companies in each region.

229 branches

Assist Co., Ltd.
Engaged in the rental and sale of furniture,
ﬁxtures and safety products.
23 branches

Kanatech Co., Ltd.
Engaged in the design and sale of modular
housing units for temporary use.
13 branches

Overseas Business Expansion
Kanamoto has steadily laid a foundation for business overseas
since it opened bases in China while responding to thelarge-scale projects underway centered upon infrastructures,such as expressways, subways and harbor.
We also established local overseas aﬃliates in Indonesia,
Vietnam, Thailand, the Philippines, China, and Malaysia
between 2015 and 2018 as well as Australia in 2020 toaccelerate business overseas and aims to capture the rental
construction equipment demand in each country.
The expansion of our businesses overseas is one priority

Kanki Co., Ltd.

measure of the Kanamoto to penetrate the massive Chinese
market, the remarkable growth in ASEAN nations and Australia
that is roughly 20 times the size of Japan. In each of thesecountries, we anticipate demand for specialized civil engineering equipment, such as for ground improvement and tunneling,
and aerial work platforms to grow in ﬁelds the Kanamoto
Group has unique expertise. The Kanamoto Group will rapidly
solidify its foundation for business overseas in the future byclearly addressing these large project needs.

Engaged in the development of business in the rental and design, manufactureand sale of specialized equipment used for projects such as ground improvement
work and the construction of underground structures.
2 branches

CENTRAL Co., Ltd.
Engaged in the rental and sale of construction
equipment.
21 branches

Engaged in the oversight, management, instruction andfurther development of business activities of Sooki Co.,
Ltd. as its stock owner.
1 branch

Consolidated Subsidiaries Non-consolidated Subsidiaries Aﬃliated Companies Alliance Companies

Total

Domestic

Hokkaido

83

27

0

0

0

110

Tohoku

59

36

0

6

1

102

Kanto

42

34

16

1

5

98

Chubu

24

9

5

3

2

43

Kinki

9

25

1

1

11

47

Chugoku

4

15

0

0

0

19

Shikoku

4

1

0

0

0

5

Kyushu

4

107

0

0

3

114

Okinawa

0

0

0

0

12

12

Sooki Co., Ltd.

Toyo Industry Co., Ltd.
Engaged in the rental and sale of shield tunnelingmethod-related peripheral equipment.
3 branches

Overseas

0

0

4

0

0

1

NISHIKEN CO., LTD.

Thailand

0

0

3

0

0

3

Philippines

0

0

0

1

0

1

Vietnam

0

0

3

0

0

3

Engaged in the rental and sale of construction equipment,
rental and sale of welfare nursing care devices, andproduction and execution of image graphics.
106 branches

Malaysia

0

0

1

0

0

1

229

267

31

12

34

573

PORTER GROUP NOMINEESPTY LTD

SIAM KANAMOTO
CO., LTD.

Wholly-owned subsidiary of Porter Excavations Pty
Ltd.
1 branchEngaged in the rental and sale of construction
equipment in the Kingdom of Thailand.
2 branches

PORTER UTILITIESHOLDINGS PTY LTD
Wholly-owned subsidiary of Porter Utilities Pty Ltd.
1 branch

PORTER UTILITIESPTY LTDSK ADMINISTRATIONSERVICE (THAILAND)
CO., LTD.

Company entrusted with business of SIAM KANAMOTO CO., LTD.
1 branchAsahi Rentax
Co., Ltd.

Engaged in the construction of gas facilities inAustralia.
1 branchEngaged in the rental and sale of furniture, ﬁxturesand safety products.
6 branches

KANAMOTO (CHINA)INVESTMENT CO., LTD.

TOYU ENGINEERING
CO., LTD.

Engaged in the rental and sale of construction equipment
in Shanghai, People s Republic of China.
3 branches

Engaged in the rental and sale of specialized
equipment for tunneling works.
3 branches

Carewell AnshinCo., Ltd.

MEIGI ENGINEERING
CO.,LTD.

Engaged in the rental and sale of construction
equipment.
4 branches

1

Total

Engaged in the import and sale of construction
equipment in Jakarta, Republic of Indonesia. 1 branch

Engaged in the rental and sale of construction
equipment.
15 branches

1

10Engaged in the rental and sale of construction
equipment in Australia.
5 branches

KNK
MACHINERY & EQUIPMENTCORPORATION

00PT KANAMOTOINDONESIA

Komatsu Doboku
Tsusho Co., Ltd.

30

PORTER EXCAVATIONS
PTY.LTD.

Engaged in the rental and sale of construction
equipment in Malaysia.
1 branch

Daiichi Kikaisangyo
Co., Ltd.

00Engaged in the civil engineering and publicconstruction in Australia.
1 branchEngaged in the design, manufacture, rental andsale of shotcrete plants.
２ branches

0

10

KANAMOTO & JP NELSONEQUIPMENT (M) SDN. BHD.

MADICA PTY LTD

Engaged in the rental and sale of nursing careproducts and nursing care services.
16 branches

China

0

Engaged in the rental and sale of construction equipmentin the Socialist Republic of Viet Nam.
3 branches

Engaged in the rental and sales of measurement instruments,
the development and rental of automated measurement
systems, and on-site adoption and support.
9 branches

Indonesia

Australia

58 Kanamoto 2023

KG FlowtechnoCo., Ltd.

Sooki Holdings
Co., Ltd.

Kanamoto and Group company operating branches in Japan (As of February 1, 2023)
Kanamoto Co., Ltd.

Engaged in the rental and sale of construction
equipment.
8 branches

Engaged in the asset management of ﬁve Porter
Plant enterprises in Australia.
1 branch

KANAMOTO FECON HASSYUCONSTRUCTION EQUIPMENTRENTAL JSC

Unite Co., Ltd.
Engaged in the rental and sale of road construction
equipment and road works construction.
53 branches

Safety ishikawa
Co., Ltd.
Engaged in the rental and sale of furniture, ﬁxturesand safety products.
1 branch

SOOKI SALES
Co., Ltd.

Engaged in the rental and sale of construction
equipment in the Republic of the Philippines. 1 branch

SUGAKIKAI KOGYO
CO., LTD.
Engaged in the rental and sale of construction
equipment.
22 branches

Machida Kikou
Co., Ltd.

Engaged in the 3D measurement operations, 3D data analysis
services, and the sale and rental of 3D scanners. 1 branch

Engaged in the rental and sale of construction
equipment.
12 branches

SHANGHAI KG
MACHINERY CO., LTD.

Consolidated subsidiaries indicated in blue,

Engaged in development of a construction equipment rental businessand construction equipment and construction materials import andexport business in Shanghai, People s Republic of China.
1 branch

red, aﬃliated companies indicated in green,

non-consolidated subsidiaries indicated inand alliance companies indicated in purple.

Kanamoto 2023 59

Facts and Data

Corporate Proﬁle (As of October 31, 2022)

Organization Chart (As of October 31, 2022)
General Meeting of the Shareholders
Corporate Auditors

Company Name

Board of Directors

Kanamoto Co.,Ltd.

Secretary Oﬃce

Head Oﬃce

Principal Shareholders

1-19, Odori Higashi 3-chome Chuo-ku, Sapporo,
060-0041 JapanThe Master Trust Bank of Japan, Ltd. (Trust account)

Business Coordination Headquarters
1-7-7, Shiba Daimon, Minato-ku, Tokyo 105-0012
Japan
Established
October 28, 1964
Capitalization

Internal Control and Auditing Oﬃce

The Hokkaido Bank, Ltd.

Legal Oﬃce

Kanamoto Capital Company
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

Safety and Health Oﬃce

North Paciﬁc Bank, Ltd.

Business Development Oﬃce

Tokio Marine & Nichido Fire Insurance Co., Ltd.
CEP LUX-ORBIS SICAVPrimary Customers (Alphabetic order)

9678

Human Resources Section, Welfare Section

ORIX Corporation

Listing Exchanges

Stock CodeHuman Resources Division

SMBC Nikko Securities Inc.

Others

Sapporo Securities Exchange

Public Relations Oﬃce

Custody Bank of Japan, Ltd. (Trust account)¥17,829 million (Paid-in capital)

Tokyo Stock Exchange, Prime Market

Sapporo, Tokyo

President and CEO

Business Process Reengineering Oﬃce

Operations Control Headquarters

Accounting Division
Accounting Section 1, Accounting Section 2,
Treasury & Securities Section

Credit Management Division
Credit Management Section, Credit Analysis Section

Information System Division

Bill Collection Center
Sapporo, Tokyo, Osaka

Denyo Co., Ltd.

HANWA CO., LTD.

Administration Division
Administration Section, Facilities Management Section

System Support Section, System Solutions Section

AICHI CORPORATION
Fudo Tetra Corporation

Business Administration Division
Business Administration Section, Procurement Section,
Business Support Section

Business Planning Division
Business Coordination Headquarters

Quality Assurance Oﬃce

HAZAMA ANDO CORPORATION

Aﬃliated Business Oﬃce

38,742 thousand

Hitachi Construction Machinery Japan Co., Ltd.

Market Development Oﬃce

Consolidated Net Sales

Isuzu Motors Limited

Common Shares Issued and Outstanding¥188,028 million (Fiscal year ended October 31, 2022)
Number of Employees
Non-consolidated: 2,028 (Excluding directors and temporary or part-time workers)
Consolidated: 3,832 (Excluding directors and temporary or part-time workers)
Principal Businesses
Rental of construction equipment
Sale of steel products

Rental of engineering workstations and computer
peripherals

Primary Lenders
MUFG Bank, Ltd.

North Paciﬁc Bank, Ltd.
The 77 Bank, Ltd.

The Hokkaido Bank, Ltd.
JA - Hokkaido Shinren
Mizuho Bank, Ltd.

The Norinchukin Bank

The Aomori Bank, Ltd.

The Bank of Fukuoka, Ltd.

THE NISHI-NIPPON CITY BANK, LTD.
Others60 Kanamoto 2023

Hino Motors, Ltd.

HOKUETSU INDUSTRIES CO., LTD.

New Products Oﬃce
Internet of Things Promotion Section

ITOCHU TC CONSTRUCTION MACHINERY CO., LTD.

Used Products Sales Division

KAJIMA CORPORATION

Komatsu Customer Support Japan Ltd.
Kumagai Gumi Co., Ltd.

MAEDA CORPORATION

Mitsubishi Fuso Truck and Bus Corporation
MITSUI & CO., LTD

Nippon Caterpillar LLCNISHIMATSU CORPORATION CO., LTD.

Construction Equipment Rental Division

National Special Demand Sales Division

Steel Sales Division

Regional Sales Section, Ground Improvement Section,
Foundation Equipment Section, Special Demand Section

Information Products Division

Specialized Equipment Engineering Division

Overseas Business Division

Water Treatment Machinery Section, Tunnel Machinery Section,
Construction ICT Promotion Section, Industrial Plant Machinery Section

OBAYASHI CORPORATION

Hokkaido Region

PENTA-OCEAN CONSTRUCTION CO., LTD.

Dohoku Block, Hokumou Block, Senkon Block, Tokachi Block,
Sorachi Block, Doou Block, Nittan Block, Donan Block,
AED Center, Temporary Scaﬀolding Division

Okumura Corporation

SAKAI HEAVY INDUSTRIES, LTD.

Tohoku Region

SHIMIZU CORPORATION

Aomori Block, Iwate Block, Akita Block, Miyagi Block,Yamagata Block, Fukushima BlockTADANO LTD.

TAISEI CORPORATION

Kanto & Koshinetsu Region

Takenaka Corporation

Kitakanto Block, Gunma & Nagano Block, Chiba Block,Tokyo Block, Kanagawa & Shizuoka & Yamanashi Block,Niigata BlockTODA CORPORATION

Toyota Mobility Service Co., Ltd.

TSURUMI MANUFACTURING CO., LTD.

West Japan Region

YANMAR CONSTRUCTION EQUIPMENT CO., LTD.

Hokuriku Block, Tokai Block, Kinki Block, Chugoku & Shikoku Block

OthersHead Oﬃce

Business Coordination
Headquarters

Kyushu Region

Kanamoto 2023 61

Facts and Data

Corporate History
Date

Stock Information (As of October 31, 2022)
Event

1964

OctoberKanamoto Shoten Co., Ltd. established in Muroran, Hokkaido and started sales of general steel, steelmaking raw materials,
and machinery as well as rental of construction equipment

1971

October

Established Tomakomai Sub-branch (now the Tomakomai Branch, Construction Equipment Rental Division Hokkaido Region
and Tomakomai Branch, Steel Sales Division) in Tomakomai, Hokkaido and began store development in the Hokkaido Region

1972

DecemberCompany name changed to Kanamoto Co., Ltd.

1979

September

1980
1983

Stock Information

Summary of Common Stock

Listing Exchanges

Tokyo Stock Exchange, Prime Market
Sapporo Securities Exchange

Number of shares issued

Established Hachinohe Branch (now the Hachinohe Equipment Repair Center) in Kamikita-gun, Aomori Prefecture andbegan store development in the Tohoku Region

Stock Code9678

Common Shares Issued and Outstanding

38,742 thousand

Total number of shareholders

NovemberMerged with Muroran Steel Co., Ltd. (Head Oﬃce: Muroran, Hokkaido) to change the par value of share from ¥500 to ¥50.

July

Fiscal year

Established Chiba Branch (now the Sodegaura Branch) in Sodegaura City, Chiba Prefecture and began store development in the Kanto Koshinetsu Region

From November 1 to October 31

September

Launched Information Products Division in Tomakomai, Hokkaido and stated handling computers, micro devices, etc.

Regular General Meeting of the Shareholders

During January

1985

NovemberCompleted online computer system network linking all branches which is core of the management strategy

Date of record with respect to voting rights
at a Regular General Meeting

October 31

1991

June

Listed stock on the Sapporo Securities Exchange

Date of record for distribution of interim dividends

April 30

1994

July

Established Osaka Branch (now the Osaka East Branch) in Higashi-Osaka City, Osaka Prefecture and began store development in the West Japan Region

1996

Date of record for distribution of year-end dividends October 31

March

Listed stock on the Second Section of the Tokyo Stock Exchange

June

Relocated head oﬃce functions from Muroran to Chuo Ward in Sapporo, Hokkaido

Method of public notice

1998

April

Designated to the First Section of the Tokyo Stock Exchange

1999

July

Acquired stock of Assist Co., Ltd.

2000

October

Acquired stock of Kanatech Co., Ltd.

2001

NovemberAcquired stock of Daiichi Kikaisangyo Co., Ltd.

2004

September

Acquired stock of Kanki Co., Ltd.

2007

February

Acquired stock of Kyushu Kensan Co., Ltd.

2008

July

Acquired stock of Toyo Industry Co., Ltd.

NovemberAcquired stock of KG Machinery Co., Ltd. (now KG Flowtechno Co., Ltd.)

2012

June

Acquired stock of Unite Co., Ltd.

2014

March

KG Flowtechno Co., Ltd. established Shanghai KG Machinery Co., Ltd. in Shanghai, China

July

Acquired stock of Asahi Rentax Co., Ltd.

January

PT KANAMOTO INDONESIA established in Indonesia and began operations

June

Established KANAMOTO FECON HASSYU CONSTRUCTION EQUIPMENT RENTAL JSC in Vietnam through a joint
investment with FECON HASSYU and began operations

July

SIAM KANAMOTO CO., LTD. established in Thailand and began operations

October

KNK MACHINERY & EQUIPMENT CORPORATION established in the Philippines through a joint investment with KILTONINVESTMENTS HOLDINGS CO., INC. began operations

2016

March

Acquired stock of NISHIKEN CO., LTD.

2017

July

Established SK ADMINISTRATION SERVICE (THAILAND) CO., LTD. in Thailand

AugustAcquired stock of TOYU ENGINEERING CO., LTD. and MEIGI ENGINEERING CO., LTD.

December

KANAMOTO (CHINA) INVESTMENT CO., LTD. Established in Shanghai City, China started operations

February

NISHIKEN CO., LTD. acquired stock of Carewell Anshin Co., Ltd.

July

Established Kyushu General Equipment Center in Chikugo City, Fukuoka Prefecture and Fukuoka Branch in Higashi-ku,
Fukuoka City and began store development in the Kyushu Region

AugustAcquired stock of Sanwa Kikai Lease Co., Ltd.

November

KANAMOTO & JP NELSON EQUIPMENT (M) SDN. BHD., established in Malaysia and began operations

2019

September

Komatsu Doboku Tsusyo Co., Ltd. acquired the stock of Safety Ishikawa Co., Ltd. and converted the company into a subsidiary

2020

September

Acquired Sooki Co., Ltd. and Sooki Sales Co., Ltd. following the acquisition of Sooki Holdings Co., Ltd.

October

Acquired Porter Excavations Pty Ltd. and Porter Utilities Pty Ltd. following the acquisitions of Madica Pty Ltd., Porter Group
Nominees Pty Ltd., and Porter Utilities Holdings Pty Ltd. through Kanamoto Australia Holdings Pty Ltd. established inAustralia

January

Merged NISHIKEN CO., LTD. with Kyushu Kensan Co., Ltd.

March

Established NEK Corporation (now CENTRAL Co., Ltd.) in Oshu City, Iwate Prefecture

April

Transitioned to Tokyo Stock Exchange Prime Market

June

Absorbed Sanwa Kikai Lease Co., Ltd.

2015

2018

2022

62 Kanamoto 2023

38,742,241
8,929

Distribution of shares by shareholder type（Trading units）
Financial institutions

Individuals and other

113,446

100,90929.30％

26.06％

Kanamoto s website,
Nihon Keizai Shinbun**Public notices of Kanamoto Co., Ltd. will be released on Kanamoto s website(https://www.kanamoto.co.jp and https://www.kanamoto.ne.jp).
When the Company cannot make electronic notiﬁcation because of unavoidable reasons,the public notices of the Company will be published in the Nihon Keizai Shinbun.

Registered ﬁnancial
institutions ﬁrms

27,426

Transfer agent
Mitsubishi UFJ Trust and Banking Corporation

7.08％

Administrative Oﬃce
Mitsubishi UFJ Trust and Banking Corporation Transfer Agent Division 4-5,
Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212 Japan

Foreign corporations, etc.

Other corporations

90,879Mailing address and telephone number
Mitsubishi UFJ Trust and Banking Corporation Transfer Agent Division
New Tokyo Post Oﬃce P.O. Box No. 29 137-8081 Japan
TEL : 0120-232-711

54,53623.47％

14.09％(Note 1) Of 1,799,490 treasury stock shares, 17,994 units are included in
Individuals and other.
(Note 2) Other corporations includes 42 units of shares held in the name of
the Japan Securities Depository Center, Inc.
(Note 3) The number of shares of one trading unit is 100 shares.

Share price chart
5,000

4,000

3,000

2,000

1,000

yen

0

2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023
7

1

7

1

7

1

7

1

7

1

7

1

7

1

7

1

7

1

7

1

Kanamoto 2023 63