Fiscal Year Ending October 31, 2021
Operating Results Briefing Materials
December 13, 2021

Stock Code: 9678
(Tokyo Stock Exchange, First Section/Sapporo Securities Exchange)
President and CEO
Executive Division
Manager, Business
Coordination
Headquarters

TetsuoKanamoto

Executive Director
Division Manager,
Accounting Division
General Manager,
Public Relations Office
General Manager

Shun Hirose

1
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Cont
ents

01

Consolidated Operating Results for the Fiscal YearEnding October 31, 2021

02

Projected Consolidated Operating Results for the Fiscal
Year Ending October 31, 2022

03

Future Expansion: Creative 60

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KanamotoCo.,
Ltd.
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Ltd.AllAllRights
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Reserved.

2

Consolidated Operating Results for the Fiscal YearEnding October 31, 2021

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3

Consolidated Operating Results for the
Fiscal Year Ending October 31, 2021
(Millions of yen)

Operating profit

Ordinary profit

Profit attributable toowners of parent

189,416

14,624

15,3918,907￥235.55

5.8％

2.6%

7.9％

5.2％

－

179,053

14,25014,2688,466￥221.45− 0.9％− 20.1%− 21.9％− 25.9％－180,694

17,842

18,277

11,430￥295.30

Net sales
Consolidated operating results for the fiscal year
ending October 31, 2021
% change from prior year
Consolidated operating results for fiscal year
ended October 31, 2020% change from prior year
Consolidated operating results for fiscal year
ended October 31, 2019

250,000Up

5.8%

200,000

25,000Up
150,000

25,00025,00020,000

Profit attributable to ownersof parent and EPS

Ordinary profit

Operating profit

Net sales

2.6%

15,000EPS

20,000Up

7.9%

400.0020,000300.0015,00015,000Up
100,000

10,00010,00010,00050,000

5,000

5,000

5,000

0

0

0

0

FY19

FY20

FY21

FY19

FY20

FY21

FY19

FY20

FY21

5.2% 200.00
100.00

0.00

FY19

FY20

FY21

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4

Consolidated Results by Segment
The Construction Equipment Rental Business makes up 90.3% of total sales while Other
Businesses contributed 9.7%.
Other Businesses

Construction Equipment
Rental Business(Steel Product Sales Business, Information‐related Business,
Welfare‐related Business, etc.)

90.3%

9.7%

171,020 million yen

18,395 million yen(Up 6.3% from prior year)(Up 0.9% from prior year)

Operating profit
13,043 million yen

Operating profit
1,110 million yen

Net sales: 189,416 million yen (Up 5.8% from prior year)
5
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Changes in Consolidated Net Sales from
Construction Equipment Rental by Region% change from prior year by region

Hokkaido Region

Up 4.2%

Tohoku Region

Down 5.4%

Kanto & Koushinetsu
RegionUp 0.5%

West Japan Region

Up 6.4%

Kyushu & Okinawa
RegionUp 3.6%

Consolidated total net
sales of construction
equipment rentals

Up 3.6%

FY17

FY18

FY19

FY20

FY21
6

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Construction Equipment Rental Business:
Sales Ratio of Equipment Rentals by Region

FY2021

FY2020Overseas
0.4%

Kyushu &Okinawa Region
14.4％
West Japan Region
13.4％

Kanto &
Koushinetsu Region
22.5％

Hokkaido
Region22.5％

Overseas
2.9%
Kyushu &Okinawa Region
Hokkaido
14.4％
Region22.7％
West Japan Region
13.8％

Tohoku Region
26.8％

Tohoku Region
Kanto &
24.4％
Koushinetsu Region
21.8％

7
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Assets Balance Sheet(Millions of yen)

FY2020

FY2021

ChangeAssetsCurrent assets

120,952

126,751

5,798

Cash and deposits

48,56356,093

7,529

Notes and accounts receivable ‐ trade41,45139,305− 2,145

Other current assets

30,93731,352414

Non‐current assets

180,581

177,003− 3,577

Property, plant and equipment

158,921156,135− 2,785

Rental equipment

254,532

262,239

7,707− 153,225− 164,193− 10,968

101,307

98,046− 3,261

Other property, plant and equipment

57,61358,089475

Intangible assets

7,368

6,904

− 464

Investments and other assets

14,291

13,963− 327

301,533

303,754

2,221

Accumulated depreciation
Rental equipment, net

Total assets

8
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Liabilities and Net Assets(Millions of yen)

FY2020

FY2021

ChangeLiabilities
Current liabilities

87,60687,230− 376

Non‐current liabilities

87,73881,607− 6,131

Long‐term loans payable

30,082

31,4601,377

Long‐term accounts payable ‐ other

52,24644,486− 7,760

Other non‐current liabilities

5,409

5,660

251

175,345

168,837− 6,507

117,744

124,226

6,482

Accumulated other comprehensive
income

1,346

2,729

1,383

Non‐controlling interests

7,097

7,960

863

Total net assets

126,188

134,917

8,728

Total liabilities and net assets

301,533

303,754

2,221

Total liabilities
Net assets
Total shareholders’ equity

9
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Cash Flows
Cash and cash equivalents were 55,557 million yen, up
7,534 million yen compared to the previous
consolidated fiscal year.
50,000
FY2020

FY2021

Change(Millions of yen)
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

FY202040,70139,35140,000Cash flow from operating
activities

40,701

Cash flow from investing
activities− 14,040

Cash flow from financing
activities− 22,204

Net increase (decrease) incash and cash equivalents

4,473

7,274

2,801

Cash and cash
equivalents at beginningof period

43,511

48,023

4,511‐10,000

Cash and cash
equivalents carried overat end of second quarter

48,02355,557

7,534‐20,000

39,351

FY2021− 1,349
30,000− 3,373

10,66620,000− 28,794− 6,589
10,0000‐3,373‐14,040‐22,204‐30,000‐28,794

10

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Main Comparative Index: EBITDA+ (Consolidated)
EBITDA+ is one major indicator for the amount of new capital investments in rental equipment and other assets.
(Millions of yen)

60,00040,00020,0000FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022/E

Operatingp r o f i t

6,430

11,392

16,454

16,27015,134

16,665

17,59917,842

14,25014,624

15,600Depreci ation

12,073

14,767

17,486

19,752

22,45824,57025,722

27,70529,07331,71232,000E B I T D A
Property, plantand equipment
equivalents

18,503 26,159 33,940 36,022 37,592 41,235 43,321 45,547 43,324 46,336 47,600
7,953

7,695

7,563

7,306

8,938

10,310

10,542

10,775

10,461

10,694

11,100EBITDA+

26,456 33,854 41,503 43,328 46,530 51,545 53,863 56,322 53,785 57,030 58,700

Property, plantand equipment
investment

29,806 37,611 42,400 37,367 38,294 37,674 46,992 52,093 51,567 37,266 47,200

Free cash flow

△3,350 △3,757

△894

5,960

8,235

13,871

6,871

4,229

EBITDA+ refers to EBITDA (operating profit and depreciation) plus property, plant and equipment equivalents.

2,218

19,764

11,50011

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Changes in Quarterly Financial Results
The sales trends show sales peaking at the end of the fourth quarter to the first quarterwith a decline in the second and third quarters.
Net sales

50,00045,00047,73042,264

43,11343,085

Operating profit

46,87044,12645,431

41,96747,565(Millions of yen)
47,960 10,000
46,2299,000

41,54739,72540,00046,092

45,982

47,6608,000

35,0007,000

30,0006,000

25,0005,000

20,0004,000

15,0003,000

10,000

2,000

5,000

1,000

0

0

FY2018
1Q

2Q

3Q

FY2019
4Q

1Q

2Q

3Q

FY2020
4Q

1Q

2Q

3Q

FY2021
4Q

1Q

2Q

3Q

4Q

Net sales

42,264 43,085 39,725 43,113 44,126 47,730 41,967 46,870 45,431 45,982 41,547 46,092 47,660 47,565 46,229 47,960

Operatingprofit

5,370

5,624

2,421

4,183

3,913

7,352

1,963

4,612

4,266

4,973

1,418

3,592

3,981

4,136

2,777

3,728

12
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Projected Consolidated Operating Results
for the Fiscal Year Ending October 31, 2021

13

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Corporate Service Price Index (Construction Rental Equipment)
The construction equipment rental index shows a stable trend.
110

100

90

80
2010/1 2010/7 2011/1 2011/7 2012/1 2012/7 2013/1 2013/7 2014/1 2014/7 2015/1 2015/7 2016/1 2016/7 2017/1 2017/7 2018/1 2018/7 2019/1 2019/7 2020/1 2020/7 2021/1 2021/7

Source: Bank of Japan Corporate Service Price Index (CSPI) on the 2015 Year Base (Construction Rental Equipment)

14

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Overview of Construction Equipment Rental Industry
Net sales in the industry are approximately 2% to 3% of the total domestic investment in construction.
The industry has roughly 2,000 competitors in construction equipment rentals.
Kanamoto and other major wide‐area contractors make up 38% the market based on recent non‐consolidated
comparison data of each company.

Local contractors

34%

Major wide area
contractors(4 companies)

38%
Second‐tier medium‐sized contractors

28%

Aktio Corporation (Unlisted)
Kanamoto Co., Ltd. (Tokyo Stock
Exchange, First Section/Sapporo
Securities Exchange)
Nishio Rent All Co., Ltd. (Tokyo Stock
Exchange, First Section)
Nikken Corporation (Unlisted)
Taiyokenki Rental Co., Ltd. (Unlisted)
Rent Corporation (Unlisted)
Kyosei Rentemu Co., Ltd. (Aktio subsidiary)
Unite Co., Ltd. (Kanamoto subsidiary)
Nishiken Co., Ltd. (Kanamoto subsidiary)
Sacos Corporation (Nishio Rent All Co., Ltd.),
etc.

Source: Calculated from the volume base in the Ministry of Land, Infrastructure, Transport and Tourism Construction Statistics Guidebook, securities reports, Kensetsukikai rental
nenkan, corporate website information of each company, and other such materials.
Second‐tier medium‐sized contractors are calculated as organizations expanding to bases in multiple prefectures.

15

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Projected Consolidated Operating Results for the
Fiscal Year Ending October 31, 2022
Regarding the outlook for the next fiscal year, public sector investment is expected toremain steady, and private sector construction investment is also expected tocontinue at a moderate pace of recovery.

Net sales

Operating profit

Ordinary profit

Profit attributable toowners of parent

191,100

15,60015,8009,700¥262.19

－

6.7％

2.7％

8.9％

－

189,416

14,624

15,3918,907¥235.55

5.8％

2.6％

7.9％

5.2％

－

Projected consolidated results for the
fiscal year ending October 31, 2022
% change from prior year
Consolidated results for fiscal year
ended October 31, 2021
% change from prior year

250,000

Net sales(Millions of yen)

25,000200,000

20,000150,000

15,000Operating profit

25,000Up

Ordinary profit

6.7% 20,000

25,000Up

EPS

Profit attributable to owners ofparent and EPS

2.7% 20,000

15,000300.0015,000Up
100,000

10,00010,00010,00050,000

5,000

5,000

5,000

0

0

0

0

FY20

FY21

FY22/E

FY20

FY21

FY22/E

FY20

FY21

FY22/E

400.008.9% 200.00
100.00

0.00

FY20

FY21

※As the Company will apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. from the beginning of the fiscal year ending October 31, 2022, the above projected consolidated operating
results are after the application of the said accounting standard. As a result, the percentages for net sales for the previous fiscal year and the same period of the previous year are not shown.

FY22/E

16

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Future Expansion: Creative 60

17

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Creative 60■ Priority Measures of the Creative 60 Medium‐Term Corporate Management Plan

1.Expansion of the Kanamoto Domestic Base of Operations— Concentrate the Collective Group Capabilities‐ Deeply mine existing areas‐ Enter new areas and develop areas where Kanamoto has low market share‐ Expand into non‐construction sectors

2. Overseas Expansion—Upgrade to Overseas Strategy 2.0 (Next Generation)‐ Optimize a global portfolio‐ Establish a Kanamoto global platform‐ Inorganic strategy: Overseas M&A initiatives‐ Lay the groundwork to raise overseas sales to 10% of total net sales

3.Optimize Internal Operational Processes—Increase Rental Business Profitability‐ Integrate marketing and sales strategies with IT‐ Invest resources in product planning and research and development to develop the technology andsystems needed at construction sites
i.e.: Kana Robo Naccident AX Q‐een ICT construction equipment
Softbank and Kanamoto Remote Control Demonstration of Construction Machinery, and Iwasaki and Kanamoto partnership‐ Improve operational efficiency‐ Build an environment to promote Group logistics i.e.: Cost control, stable long‐term operations‐ Place emphasis on recruiting and developing human resources

18
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Creative 60< Priority measures>

01

Expansion of the Kanamoto Domestic
Base of Operations

02

Overseas Expansion

03

Optimize Internal Operational Processes
19
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Creative 60

Expansion of the Kanamoto Domestic
Base of Operations
Overseas Expansion
Optimize Internal Operational Processes

20
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Expansion of the Kanamoto Domestic Base of Operations
Gradual increase in investment after hitting bottom at 42 trillion yen in fiscal 2010 Approx.
In fiscal 2022, public investment in construction is expected to remain steady and the overall
investment in construction should remain at a same level as previous year.
70
Public investment inconstruction

Private investment inresidential construction

40
Private investment in non‐residential construction

Private RR investment inbuildings

30

14.2
13.0

20
10

19.0

18.0

(Trillions of yen)

(Forecast)

6.2

6.3

6.5

6.5

5.9

6.1

6.3

14.6

15.3

16.3

17.0

17.0

16.0

16.6

17.0

15.7

16.5

16.9

16.7

16.3

15.1

15.4

15.1

20.2

21.0

21.8

21.6

22.7

24.0

24.4

24.6

11.0
18.4

(Expectation)

6.0

60
50

(Expectation)0(Trillions of yen; real value is the price in fiscal 2011)

Fiscal year

2005

2010

2015

2016

2017

2018 (Expectation)

2019 (Expectation)2020 (Forecast)

2021 (Forecast)2022(Forecast)Investment in construction(year on year growth rate)

51.6 (‐2.4%)

41.9 (‐2.4%)

56.6 (19.3%)

58.7 (3.7%)

61.3 (4.4%)

61.8 (0.8%)

62.5 (1.1%)

60.9 (‐2.5%)

62.5 (2.7%)

63.0 (0.8%)

Public investment inconstruction

19.0 (‐8.9%)

18.0 (0.3%)

20.2 (8.6%)

21.0 (3.9%)

21.8 (3.8%)

21.6 (‐0.9%)

22.7 (5.2%)

24.0 (5.4%)

24.4 (2.0%)

24.6 (0.8%)

Private investment inresidential construction

18.4 (0.3%)

13.0 (1.1%)

15.7 (5.5%)

16.5 (4.9%)

16.9 (2.9%)

16.7 (‐1.2%)

16.3 (‐2.8%)

15.1 (‐7.1%)

15.4 (1.9%)

15.1 (‐1.9%)

Private investment in non‐residential construction

14.2 (4.0%)

11.0(‐10.0%)

14.6 (3.9%)

15.3 (5.0%)

16.3 (6.8%)

17.0 (4.1%)

17.0 (0.2%)

16.0 (‐6.1%)

16.6 (3.9%)

17.0 (2.2%)

Private RR investment inbuildings――

6.2 (―)

6.0 (‐2.9%)

6.3 (4.5%)

6.5 (3.7%)

6.5 (‐0.5%)

5.9 (‐9.7%)

6.1 (3.8%)

6.3 (4.3%)

57.5 (‐3.4%)

44.9 (‐2.6%)

56.6 (19.0%)

58.6 (3.4%)

60.0 (2.4%)

58.5 (‐2.4%)

57.8 (‐1.3%)

56.4 (‐2.4%)

57.1 (1.3%)

57.7 (1.0％)

Real investment inconstruction

Source: Prepared based on the Construction Economy Model Forecast of Construction Investment (November 2021) published by the Research Institute of Construction and Economy (RICE)

21

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Expansion of the Kanamoto Domestic Base of Operations
Major Projects Primarily Driving Business Expansion throughout Japan
Wind Power Generation

Linear Chuo Shinkansen
Hokkaido Shinkansen.
Geothermal Power Generation

Hokuriku Shinkansen
Large‐scale Refurbishments of Three
NEXCO Companies

Solar Power Generation

2025 Osaka Expo
Kyushu Shinkansen:
Takeo to Nagasaki

22
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Expansion of the Kanamoto Domestic Base of Operations
Major Projects Primarily Driving Business Expansion throughout Japan
2025 Osaka Expo‐related projects
Large‐scale repairs of the Tokaido‐Sanyo Shinkansen
Hokuriku Shinkansen: Kanazawa to Tsuruga

Hokkaido Shinkansen: Shin‐Hakodate‐Hokuto to Sapporo
Kyushu Shinkansen: Takeo Onsen to Nagasaki
Linear Chuo Shinkansen
Shin‐Tomei/Shin‐Meishin Expressway
Large‐scale refurbishments of three NEXCO companies, the Metropolitan Expressway, the Hanshin Expressway, and Honshu‐Shikoku Bridge Expressway
5th Strategic Energy Plan ‐ Basic Plan
Fifth Basic Environment Plan
Plan for Global Warming Measures
Green Growth Strategy Through Achieving Carbon Neutrality in 2050
Five‐Year Acceleration Plan for Disaster Prevention, Disaster Mitigation, and Building National Resilience

Basic Plan for Life Extension of Infrastructure
Japan Revitalization Strategy to Eliminate Major Accidents of Aging Infrastructure (Administrative Growth Strategy)

2021

2022

2023

2024

2025

2026

2027

2028

2029～50

23
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Expansion of the Kanamoto Domestic Base of Operations
Many regions suffer damage from landslides caused by earthquakes to floods and landslides
caused by local torrential rain.
July 2018

November 2014

September 2018

West Japan Floods

May to July 2020

Damage caused by Typhoon Trami(Okayama, Hiroshima, and Ehime Prefectures)

Damage due to severe storms and torrential
rains between May 15 to July 31, 2020

(Tottori, Miyazaki, and Kagoshima
Prefectures)

Nagano Kamishiro Fault Earthquake(Hakuba/Otari in the Kitaazumi
District)(Yamagata, Nagano, Gifu, Shimane, Fukuoka,
Saga, Kumamoto, Oita, and Kagoshima
Prefectures)

May to July 2021

September 2018
Hokkaido Eastern Iburi Earthquake

July 2014
Damage caused by Typhoon Neoguri(Nagiso‐machi in the Kiso District ofNagano Prefecture and Shiba Village inthe Higashiusuki District of Miyazaki
Prefecture)

Damage due to severe storms and torrential
rains between May 11 to July 14, 2021

September 2017

August 2016

Damage caused by Typhoon Talim（ Tottori , Shimaneand Kagoshima Prefectures ）(Kyoto, Ehime, and Oita Prefectures)

Damaged caused by Typhoons Chanthu, Dianmu,
Mindulle, and Lionrock(Obihiro City in Hokkaido, Iwaizumi‐cho in Iwate
Prefecture, etc.)

July 2017

October 2014

Northern Kyushu Floods(Asakura City in Fukuoka
Prefecture, etc.)

and Bualoi

Damage caused by
Typhoon Vongfong
August 2014

October 2019
Damage caused by Typhoons Hagibis, Neoguri,

October 2017

(Sumoto City/Awaji City in Hyogo
Prefecture)

Typhoon Lan(Iwate, Miyagi, Fukushima, Ibaraki, Tochigi, Gunma,
Saitama, Chiba, Tokyo, Kanagawa, Niigata,
Yamanashi, Nagano, and Shizuoka Prefectures)(Niigata and Mie Prefectures, Kinki
Region, etc.)

Landslides caused by torrential rain
(Asaminami and Asakita Wards in
Hiroshima City)

July 2019
June 2015

Damage caused by the East Asian Monsoon
Season, Typhoon Sepat, and Typhoon Noru

Severe storms in Mie
Prefecture(Odai‐cho in the Taki District)(Nagasaki, Kagoshima, and Kumamoto Prefectures)

April 2016 Kumamoto Earthquakes
June 2018 Osaka Earthquake

July 2017 Northern Kyushu Floods
October 2014

June 2015

Damage caused by Typhoon Talim(Nishinoomote City in Kagoshima
Prefecture)

Flooding caused by severe storms
in Kumamoto Prefecture(Amakusa City)

August 2021
Damage due to severe storms and torrential
rains between August 7 to August 23, 2021
（Aomori, Nagano , Shimane ,Hiroshima, Shimane ,Fukuoka ,Saga and Nagasaki Prefectures ）Source: Cabinet Office website Photos: Institute of Scientific Approaches for Fire and Disaster

August to September 2019
Damage due to severe storms and torrential rains
between August 13 to September 24, 2019

September 2015
Kanto/Tohoku Torrential Rains

September 2018
Strong winds and rains due to Typhoon Hagibis,
Cimaron, and Jebi
(Awashimaura‐mura in Niigata Prefecture, and Oshika‐mura in
Nagano Prefecture, Kozagawa‐cho, Shingu City, Koya‐cho, andShirahama‐cho in Wakayama Prefecture, Toyono‐cho in Osaka
Prefecture, and Nosegawa‐mura and Kamikitayama‐mura in
Nara Prefecture)

Note: The names of disasters in this list only include some of the disasters designated as catastrophic disasters.

24

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Expansion of the Kanamoto Domestic Base of Operations
Kanamoto has 212 non‐consolidated sales bases throughout Japan.
The Kanamoto Group has steadily expanded its sales base to 515 locations.
Changes in the Number of Domestic Sales Bases
Nakatombetsu Machine Center（ Esasi District in Hokkaido Prefecture ）

120

112

End of October 2021

109

Obama Branch (Obama City, Fukui)

100

94
Kurashiki Branch(Kurashiki City, Okayama Prefecture)77

80

Sapporo Small Machine Center(Sapporo City)

60

43

Kitakyushu Branch(Kitakyushu City in Fukuoka Prefecture)

45

40
Marumori Branch(Igu District in Miyagi Prefecture)

17

20

12
5
0
Hokkaido

Tohoku

Kanto

Chubu

Kinki

Chugoku

Shikoku

KyushuOkinawa

Specialized Equipment
Engineering Division
Arao Machine Center(Arao City in Kumamoto Prefecture)

Sooki Holdings Co., Ltd.
(Osaka Prefecture)

Futaba Branch(Futaba District in Fukushima Prefecture)25

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Expansion of the Kanamoto Domestic Base of Operations
Stronger strategic regional promotion and sales as well as share
expansion that prioritize areas without a sales presence.
October 31, 2021

West Japan
7.1%

Kyushu & Okinawa
15.1%

Hokkaido
43.7%
Tohoku27.4%

Kanto & Koushinetsu
6.2%

Source: Calculated uniformly at 2.5% according to the volume base in the Ministry of Land, Infrastructure, Transport and Tourism Construction Statistics Guidebook.
Note: These figures fluctuate with retroactive revisions of the Construction Statistics Guidebook.

26

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Expansion of the Kanamoto Domestic Base of Operations
Growth is driven by ongoing M&A in addition to unique site expansion.
M&A History

Consolidated SubsidiaryNon‐consolidated Subsidiary

Affiliate company

2020 KANAMOTO AUSTRALIA HOLDINGS PTY LTD
MADICA PTY LTD
PORTER EXCAVATIONS PTY.LTD.
PORTER GROUP NOMINEES PTY LTD
PORTER UTILITIES HOLDINGS PTY LTD
PORTER UTILITIES PTY LTD

2020 SOOKI HOLDINGS CO., LTD.
SOOKI Co., Ltd.
2020 SOOKI SALES CO., LTD.

2018 KANAMOTO & JP NELSONEQUIPMENT (M) SDN. BHD.

2019 KOMATSU DOBOKU TSUSHO CO., LTD.
SAFETY ISHIKAWA CO., LTD.
2018 CAREWELL ANSHIN CO., LTD.
SANWA KIKAI LEASE CO., LTD.

2017 KANAMOTO (CHINA) INVESTMETN CO., LTD.
2015 PT KANAMOTO INDONESIA
KANAMOTO FECON HASSYU CONSTRUCTION EQUIPMENT RENTAL JSC
SIAM KANAMOTO CO., LTD.

2017 TOYU ENGINEERING CO., LTD
MEIGI ENGINEERING CO., LTD.
2016 NISHIKEN CO., LTD.

2015 KNK MACHINERY&EQUIPMENT CORPORATION
2014 SHANGHAI KG MACHINERY CO., LTD.

2014 ASAHI RENTAX CO., LTD.
2012 UNITE CO., LTD.
2008 TOYO INDUSTRY CO., LTD.

KG FLOWTECHNO CO., LTD.

2007 KYUSHU KENSAN CO., LTD.
2004 KANKI CO., LTD.
2001 DAIICHI KIKAISANGYO CO., LTD.
2000 KANATECH CO., LTD.
1999 ASSIST CO., LTD.
1972 Company changes name to Kanamoto Co., Ltd.
1964 Kanamoto Shoten Co., Ltd. established27
Copyright © 2021 Kanamoto Co., Ltd. All Rights Reserved.

Expansion of the Kanamoto Domestic Base of Operations
Overview of Infrastructure Obsolescence Measures and Transportation Infrastructure Projects
Large‐scale repairs
andrefurbishment

Tokyo Gaikan Expressway Project

Shinkansen Project

Source: Hanshin Expressway Hanshin Expressway Large‐scale Renewal/Repair Project (March 30, 2015) and Ministry of Land, Infrastructure, Transport and Tourism Annual Report on Road Maintenance (Sept.2020)
Tokyo Gaikan Expressway Project Main Line Tunnel Construction | Learn About Construction | Tokyo Gaikan Expressway Project (tokyo‐gaikan‐project.com; Only in Japanese)28

Copyright © 2021 Kanamoto Co., Ltd. All Rights Reserved.

Creative 60

Expansion of the Kanamoto Domestic
Base of Operations
Overseas Expansion
Optimize Internal Operational Processes

29
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Overseas Expansion
Overseas Expansion—Upgrade Overseas Strategy 2.0 (Next Generation)‐ Optimize a global portfolio
i.e.: Selection and distribution of management resources‐ Establish a Kanamoto global platform
i.e.: Configuration of a framework for overseas sites‐ Inorganic strategy: Overseas M&A initiatives‐ Lay the groundwork to raise overseas sales to 10% of total net sales

30
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Overseas Expansion

31
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Creative 60

Expansion of the Kanamoto Domestic
Base of Operations
Overseas Expansion
Optimize Internal Operational Processes

32
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Optimize Internal Operational Processes
Optimize Internal Operational Processes—Increase Rental Business Profitability‐ Integrate sales strategy (marketing, sales) and IT‐ Invest resources in product planning and R&D as well as develop technologies
and systems needed at construction sites
Kana Robo Naccident AX Q‐een ICT construction equipment
SoftBank and Kanamoto verification testing for remote control of construction
equipment and Iwasaki and Kanamoto business alliance‐ Improve operational efficiency‐ Build an environment to promote Group logistics
i.e.: Cost control, stable long‐term operations‐ Place emphasis on recruiting and developing human resources
33
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Optimize Internal Operational Processes
Verification Testing to Realize Remote Control of Construction Equipment
Verification testing taking into account weather, network load and other factors aims to provide
commercial services from 2022.
SoftBank ×Kanamoto

Remote work environment atconstruction sites where there isa lot of delicate and dangerous
work

5G high‐capacity communication+
Requires configuration of a stable wirelessand transmission communication
environment

Verify the remote control of construction equipment using priority control functions ofcommunication network and a closed network anticipating commercial 5G services

34
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Kanamoto Value Creation Process

Re‐investment
Value creation system

Management resources
Financial and investment capital

Value created by Kanamoto

Business activities
Economic value (Financial)
Net sales
Profit attributable toowners of parent

Society and customer needs

Construction
Equipment Rental
Business

Human capital

Medium‐ to long‐term growth strategy

3,793 consolidated employees=> Diverse human resources with high‐level knowledge and skills

Expansion of the Kanamoto Domestic Base of
Operations
Overseas Expansion
Optimize Internal Operational Processes

Social capital
Branch Network: 515 domestic locations
21 overseas locations=> Branch network to build an ideal
value chain according to the demand ineach region

189,416 million yen

Other Businesses(Steel Product Sales Business,
Information‐related Business,
Welfare‐related Business, etc.)

303,754 million yen in total assets=> Capital investments in rental assets
and other equipment prioritizing
operational efficiency and profitability

8,907 million yen=> Strengthen a high‐profit structure andachieve a stronger Kanamoto benefiting all
stakeholders

Balance

Social value (Non‐financial)
Kanamoto Strengths
Broad customer base worldwide
Technical and development capabilities
responding to on‐site demand
High‐quality products and services
Brand power cultivated over almost half a century

Build infrastructure that supports business growth ● Corporate governance ● Compliance ● Risk management ● Environmental management● Contribute to disaster recovery andreconstruction● Reduce the environmental impact● Improve employee satisfaction● Return profits to shareholders

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

The Kanamoto Group creates value that helps address social issues through the development of global businesses centered upon the Construction
Equipment Rental Business, robust corporate governance and ideal organizations and structures, while integrating and using management
resources founded in the needs of society and customers.

35
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Sustainability Initiatives
Establishment of Basic Sustainability Policy
1. We will capitalize on the unique properties of the rental business as sharing economy, and contribute to solving
climate change and other global environmental issues.
2. We will always respect human rights and consider employee health and the labor environment with the aim ofcontributing to better labor conditions in society.
3. We will engage in fair and proper business dealings with our business partners with the aim of fostering mutuallysustainable prosperity.
4. We will strive to help improve crisis management not only in Kanamoto crisis management measures but also thoseof Japan from disaster prevention and mitigation to national resilience.
‐ Launch of Sustainability Website

36
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Sustainability Initiatives(ESG)The Kanamoto Group’s priority themes for ESG

ValuecreationFoundation supporting value creation

E

Businesses
contributing to SDGs

Environment

Environment

SSocialComprehensive disclosure and IR
activities
Stronger information security
Stronger health and safetysystems
Environment inspiring humanresource development

GInternal control systems

GovernanceRisk management

Corporate governanceCompliance

Kanamoto products and services will create new value thathelps achieve the SDGs and contribute to the development ofa sustainable society.

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 withenvironmental laws and regulations and promoting appropriate
environmental management.

Kanamoto will practice highly transparent and prompt informational disclosure, broaden its
disclosure mediums, and enhance IR activities for shareholders and investors in Japan andoverseas.
Kanamoto will ensure the highest level of security to manage and protect informational
assets responsibly as a Group handling personal information and many other informational
assets.
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.
Kanamoto will aim to build an environment inspiring innovation by ensuring diverse humanresources with different perspectives and modes of thinking can each be themselves andfully utilize their skills.

Kanamoto will promote and strengthen compliance andcorporate governance by acknowledging that corporate
governance and compliance are critical management
challenges to enhance corporate value.

37
Copyright © 2021 Kanamoto Co., Ltd. All Rights Reserved.

Sustainability Initiatives(TCFD)
Shifting Assets to Environment‐friendly Equipment‐‐

We are replacing existing models with equipment complying withexhaust gas regulations.
We are adopting commercial vehicles certified for high fuelefficiency and low emissions.

Disclosing Climate Change Data in Accordance with TCFD Supporter Guidelines‐

We have pledged our support to the Task Force on Climate‐
Related Financial Disclosures (TCFD).

‐

We are participating in the TCFD Consortium.

‐

We utilizing scenario analyses.

‐

We are strengthening our corporate governance system tocombat climate change.

‐

We have set long‐term and other CO2 reduction
targets toward carbon neutrality by 2050.

38
Copyright © 2021 Kanamoto Co., Ltd. All Rights Reserved.

Future Endeavors
1. Strengthen entry into the maintenance and repair sector

2. Strengthen entry into the renewable energy sector

3. Develop ICT and IoT solutions

4. Strengthen regional revitalization

39
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Dividend Policy
Year‐end dividend of 70 yen for the fiscal year ended October 31, 2021 (25 yen interim dividend)
Year‐end dividend of 75 yen for the fiscal year ending October 31, 2022 (35 yen interim dividend)(Yen)■Regular dividend ■ Bonus dividend

60

65

65

FY19

FY20

70

75

50
45

20

20

20

20

20

20

FY08

FY09

FY10

FY11

FY12

FY13

35

35

FY14

FY15

FY16

FY17

FY18

FY21 FY22/E

40
Copyright © 2021 Kanamoto Co., Ltd. All Rights Reserved.

[Disclaimer]
Certain information other than historical facts set forth in this briefing and the briefing materials contain forward‐looking
information.
These forward‐looking statements are determined based on currently available information and include elements which may differ
substantially from original forecasts.
Therefore, we ask that you refrain from fully rely on these forecasts.
Please be aware actual performance may differ from these forecasts due to changes in a variety of circumstances.

Contact
Kanamoto Public Relations Office
1‐19, Odori Higashi 3‐chome Chuo‐ku, Sapporo, Hokkaido 060‐0041 Japan
Tel: +81‐11‐209‐1631 (8:30 a.m. to 5:00 p.m. except on weekends and holidays)
Company website: https://www.kanamoto.co.jp/en/
IR Information: https://www.kanamoto.ne.jp/en/

41
Copyright © 2021 Kanamoto Co., Ltd. All Rights Reserved.

Reference: 15‐year Management Index (Consolidated)(Millions of yen)

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021 FY2022/E

Net sales

69,411 63,863 70,173 71,086 86,106 110,831 125,555 133,292 144,870 158,428 168,188 180,694 179,053 189,416 191,100

Operatingprofit

2,227

137

2,648

2,905

6,430 11,392 16,454 16,270 15,134 16,665 17,599 17,842 14,250 14,624 15,600

Ordinary profit

2,028

‐222

2,083

2,239

5,932 11,073 16,078 16,164 14,405 17,193 17,925 18,277 14,268 15,391 15,800

Profit attributable toowners of parent

644‐1,158

1,041

1,165

3,575

5,809

9,299

8,907

9,700

Net assets

38,202 36,541 37,025 37,592 41,399 56,192 65,513 71,998 81,434 91,788 102,031 121,779 126,188 134,917‐

Total assets

91,741 96,435 108,509 115,120 137,343 169,250 188,082 202,578 220,540 227,155 241,374 268,182 301,533 303,754‐

Net sales

200,000

9,557

8,098 10,744 11,857 11,430

8,466

Operating profit

30,000160,000

24,000120,000

18,00080,00012,00040,000

6,000

0

0

FY2008 FY2009 FY2010 FY2011 FY2012

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022/E

42
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Reference: Share price between June 2011 to June 2021

43
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