Fiscal Year Ending October 31, 2022
Operating Results Briefing Materials
December 12,2022
Stock Code: 9678
(Tokyo Stock Exchange Prime Market/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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Content

01

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

02

Projected Consolidated Operating Results for
the Fiscal Year Ending October 31, 2023

03

Future Expansion: Creative 60

2
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01

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

3
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Consolidated Operating Results for the
Fiscal Year Ending October 31, 2022
(Millions of yen)

Operating profit

Ordinary profit

Profit attributable toowners of parent

188,028

13,22913,7808,345￥224.64－− 9.5％− 10.5％− 6.3％－

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

Net sales
Consolidated operating results for the
fiscal year ending October 31, 2022
% change from prior year
Consolidated operating results for fiscal
year ended October 31, 2021
% change from prior year
Consolidated operating results for fiscal
year ended October 31, 2020

Ordinary profit

Operating profit

Net sales
250,000

25,00025,00025,000200,000

20,00020,00020,000Down
150,000

9.5%

15,000

Down

10.5%

EPS

Profit attributable to ownersof parent and EPS

300.0015,00015,000Down
100,000

10,00010,00010,00050,000

5,000

5,000

5,000

0

0

0

0

FY20

FY21

FY22

FY20

FY21

FY22

400.00

FY20

FY21

FY22

6.3% 200.00
100.00

0.00

FY20

FY21

FY22

※The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year ended October 31, 2022, and the figures for the fiscal year ended October 31,
2022 are figures after the application of the said accounting standard.

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4

Consolidated Results by Segment
The Construction Equipment Rental Business makes up 90.6% of total sales
while Other Businesses contributed 9.4%.
Other Businesses
Construction Equipment(Steel Product Sales Business, Information-relatedRental BusinessBusiness, Welfare-related Business, etc.)

90.6%

9.4%

170,433million yen

17,594 million yen

Operating profit
11,508 million yen

Operating profit
1,232 million yen（ Down 11.8％from prior year ）（ Up 11.0％from prior year ）Net sales: 188,028 million yen
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 5.9%

Tohoku Region

Down 7.0%

Kanto & Koushinetsu
RegionUp 4.4%

West Japan Region

Up 0.9%Kyushu & Okinawa
RegionUp 2.8%

Consolidated total net
sales of construction
equipment rentals Up 2.2％

FY18

FY19

FY20

FY21

FY22
6

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

FY2021

FY2022

Overseas
Kyushu & 2.9％
Okinawa Region
14.4％
Hokkaido Region
22.7％

Overseas
3.9％West Japan Region
13.8％
Tohoku Region
24.4％
Kanto &
Koushinetsu Region
21.8％

Kyushu &Okinawa Region
14.5％

Hokkaido Region
23.5％

West Japan Region
13.6％
Kanto &
Koushinetsu Region
22.3％

Tohoku Region
22.2％

7
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Assets Balance Sheet(Millions of yen)

FY2021

FY2022

ChangeAssetsCurrent assets

126,751

118,066− 8,684

Cash and deposits

56,09347,565− 8,527

Other current assets

70,65870,501− 156

Non-current assets

177,003

187,253

10,249Property, plant and equipment

156,135

161,728

5,592

Rental equipment

262,239

282,605

20,366− 164,193− 181,989− 17,795

98,046100,616

2,570

Other property, plant and equipment

58,08961,111

3,022

Intangible assets

6,904

6,717

− 187

Investments and other assets

13,96318,808

4,844

303,754305,320

1,565

Accumulated depreciation
Rental equipment, net

Total assets

8
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Liabilities and Net Assets(Millions of yen)

FY2021

FY2022

ChangeLiabilities
Current liabilities

87,23082,465− 4,764

Notes and accounts payable - trade

37,082

33,714− 3,368

Other current liabilities

50,14748,751− 1,396

Non-current liabilities

81,607

82,242635

Long-term borrowings

31,46034,6593,199

Long-term accounts payable - other

44,486

41,121− 3,365

Other non-current liabilities

5,660

6,462

801

168,837

164,708− 4,129

124,226

127,616

3,389

Accumulated other comprehensive income

2,729

4,342

1,612

Non-controlling interests

7,960

8,652

692

Total net assets

134,917140,611

5,694

Total liabilities and net assets

303,754305,320

1,565

Total liabilities
Net assets
Total shareholders’ equity

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Cash Flows
Cash and cash equivalents were 47,047 million yen, adecrese of 8,510 million yen compared to the previous
consolidated fiscal year.
50,000
FY2021

FY2022

Change40,000

FY2021

FY202239,351
33,158Cash flow from operating
activities

39,351

33,158− 6,193

30,000Cash flow from investing
activities− 3,373− 11,331− 7,957

20,000Cash flow from financing
activities− 28,794− 30,893− 2,099

10,000Net increase (decrease) incash and cash equivalents(Millions of yen)
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

7,274− 8,790− 16,0640− 3,373-10,000

Cash and cash
equivalents at beginningof period

48,023

Cash and cash
equivalents carried overat end of second quarter

55,55755,557− 11,331

7,534-20,000

47,047− 8,510-30,000− 28,794− 30,893-40,000

10
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Changes in Quarterly Financial Results
Net sales
50,00045,00047,73043,11342,264 43,085

46,87044,126

Operating profit

46,09245,431 45,982

47,660 47,565

47,96046,22946,730 46,984(Millions of yen)
49,199 10,000
45,1139,000

41,96741,54739,72540,0008,000

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

FY2022
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 46,730 46,984 45,113 49,199
Operating
5,370 5,624 2,421 4,183 3,913 7,352 1,963 4,612 4,266 4,973 1,418 3,592 3,953 4,107 2,749 3,813 3,311 3,786 2,064 4,067
profit※The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the fiscal year ended October 31, 2022, and the figures as of October 31, 2022 are
figures after the application of the said accounting standard.

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02

Projected Consolidated Operating Results
for the Fiscal Year Ending October 31, 2023

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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 FY2023, construction investment as a whole is expected to increase slightly from the previous year to approximately ¥64 trillion yen
70(Trillions of yen)

(Expectation)(Expectation)(Forecast)

6.1

6.2

6.4

16.2

17.3

17.5

6.2
14.6

6.0
15.3

6.3

6.5

6.5

16.3

17.0

17.0

5.9
16.0

15.7

16.5

16.9

16.7

16.3

15.1

16.1

16.6

17.0

13.0

19.0

18.0

20.2

21.0

21.8

21.6

22.7

24.0

22.9

23.3

23.5

Fiscal year

2005

2010

2015

2016

2017

2018

2019 (Estim.)

2020(Estim.)

2021(F’cast.)

2022(F’cast.)

2023(F’cast.)

Total construction

51.6

41.9

56.6

58.7

61.3

61.8

62.5

60.9

61.3

63.5

64.3

Change from prior fiscal year(-2.4%)(-2.4%)(19.3%)(3.7%)(4.4%)(0.8%)(1.1%)(-2.5%)(0.6%)(3.6%)(1.4%)

Public construction

19.0

18.0

20.2

21.0

21.8

21.6

22.7

24.0

22.9

23.3

23.5

Change from prior fiscal year(-8.9%)(0.3%)(8.6%)(3.9%)(3.8%)(-0.9%)(5.2%)(5.4%)(-4.3%)(1.7%)(0.6%)

18.4

13.0

15.7

16.5

16.9

16.7

16.3

15.1

16.1

16.6

17.0

(0.3%)(1.1%)(5.5%)(4.9%)(2.9%)(-1.2%)(-2.8%)(-7.1%)(6.3%)(3.0%)(2.5%)

14.2

11.0

14.6

15.3

16.3

17.0

17.0

16.0

16.2

17.3

17.5

(4.0%)(-10.0%)(3.9%)(5.0%)(6.8%)(4.1%)(0.2%)(-6.1%)(1.2%)(7.3%)(0.9%)

―

―

6.2

6.0

6.3

6.5

6.5

5.9

6.1

6.2

6.4

―

―

―

(-2.9%)(4.5%)(3.7%)(-0.5%)(-9.7%)(3.8%)(2.1%)(2.6%)

57.5

44.9

56.6

58.6

60.0

58.5

57.8

56.4

54.1

52.8

53.5

(-3.4%)(-2.6%)(19.0%)(3.4%)(2.4%)(-2.4%)(-1.3%)(-2.4%)(-4.1%)(-2.3%)(1.2%)

Public construction
investment
Private residentialbuilding
Private nonresidential building

60
50
40
30

14.2
11.0
18.4

20
Private building RR
investment

100Private residentialbuilding
Change from prior fiscal year
Private non-residentialbuilding
Change from prior fiscal year
Private building
renovation
Change from prior fiscal year
Substantive construction
investment
Change from prior fiscal year

Source: Prepared based on the Construction Economy Model Forecast of Construction Investment (Oct. 2022) published by the Research Institute of Construction and Economy (RICE)

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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 2022/1 2022/7

14

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

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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 40% the market based on recent non-consolidated
comparison data of each company.

Local contractors Major wide area

31%

contractors(4 companies)

40%
Second-tier mediumsized contractors

29%

Aktio Corporation (Unlisted)
Kanamoto Co., Ltd. (Tokyo Stock
Exchange Prime Market/Sapporo
Securities Exchange)
Nishio Rent All Co., Ltd. (Tokyo Stock
Exchange Prime Market)
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.

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Projected Consolidated Operating Results
for the Fiscal Year Ending October 31, 2023
While the economic outlook remains uncertain, public investment continues to be firm,and private capital investment is also expected to continue its trend of gradual recovery

Net sales

Operating profit

Ordinary profit

Profit attributable toowners of parent

198,000

14,00014,1008,400¥231.87

5.3％

5.8％

2.3％

0.7％

－

188,028

13,22913,7808,345￥224.64－− 9.5％− 10.5％− 6.3％－

Projected consolidated results for the
fiscal year ending October 31, 2023
% change from prior year
Consolidated results for fiscal year
ended October 31, 2022
% change from prior year

250,000

Net sales

5.3%(Millions of yen)

25,000Operating profit

25,000Ordinary profit

25,000EPS

Profit attributable to owners ofparent and EPS

400.00Up

20,000200,000

5.8%

20,0002.3%

Up15,000150,000

20,000300.00Up

15,00015,0000.7% 200.00

Up
100,000

10,00010,00010,00050,000

5,000

5,000

5,000

0

0

0

0

FY21

FY22

FY23/E

FY21

FY22

FY23/E

FY21

FY22

Y23/E

100.00

0.00

FY21

FY22

※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.

FY23/E

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03 Future Expansion: Creative 60

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Medium-Term Corporate Management Plan Progress Status
External Environment Surrounding the Kanamoto Group and Issues RecognizedExternal Environment -World/Domestic EconomyImpact on Economic Activity Due to the Spread of
COIVD-19

Growing Awareness of SDGs and ESG

Increased Uncertainty in World Affairs

Rapid Acceleration of Digitization

External Environment -Domestic Construction IndustryGrowing Importance and Focus on Sustainability
Rise in Construction Costs due to Supply Shortages of
Semiconductors and Soaring Material and Energy Prices

IssuesRecognized

Promotion of Construction DX and Acceleration of
Digital Transformation which Contribute to Labor-saving
and Safety Improvement at Construction Sites
Worsening Shortage of Skilled Construction Workers

We will aim to help combat climate change and other global environmental issues
by capitalizing on the unique sharing economy traits of a rental business.
We will strive to help improve crisis management not only in Kanamoto crisis management measures
but also those of Japan from disaster prevention and mitigation to national resilience.
We will always respect human rights and consider employee health and the labor environment
with the aim of contributing to better labor conditions in society.

We will engage in fair and proper business dealings with our business partners with the aim of fostering mutually sustainable prosperity.
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Medium-Term Corporate Management Plan Progress Status
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

2Overseas 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 and systems
needed at construction sites
i.e.: Kana Robo Naccident AX Q-een ICT construction equipment
・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
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Medium-term Corporate Management Plan Priority Measures Progress“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

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Medium-term Corporate Management Plan Priority Measures Progress“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)

2022

2023

2024

2025

2026

2027

2028

2029～50

21
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Medium-term Corporate Management Plan Priority Measures Progress“Expansion of the Kanamoto Domestic Base of Operations”
Steady expansion of the sales base by developing bases in response to changes in the economic environment.
[TOPICS] 2020 September Made Sooki Holdings Co., Ltd. (Osaka) a subsidiary company
2022 May
Acquisition of business from Central Co., Ltd. by our subsidiaryNEKCo., Ltd.
July
Central Co., Ltd. (Formerly: NEKCo., Ltd.) started business
October 31, 2019

October 31, 2022

Increase/DecreaseNon-consolidated

202

229

27 base increase

Alliance Group

505

551

46 base increase*Excludes overseas branches

Change in number of domestic branches
140
Oct. 31, 2019120

Oct. 31, 2022
115

107 110

103

100

102

102

98

77

80
60

41 43

42

47

40
15 18

20

5

5

14 12

0
Hokkaido

Tohoku

Kanto

Chubu

Kinki

Chugoku
Shikoku
KyushuOkinawa
22
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Medium-term Corporate Management Plan Priority Measures Progress“Expansion of the Kanamoto Domestic Base of Operations”
Stronger strategic regional promotion and sales as well as share expansion thatprioritize areas without a sales presence.

Hokkaido

Kanto &
Koushinetsu

West Japan
FY2019FY2019FY2022

FY2022FY2019

7.9%

8.4%

52.8%

FY2022

54.4%

TohokuFY2022FY20194.3%

4.7%

KyushuFY202226.6%

FY2019

17.4%

30.6%

17.7%

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.

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Medium-Term Corporate Management Plan Priority
Measures Progress “Overseas Expansion”
The ratio of overseas rental sales by region in the Construction Equipment Rental Business expandedfrom 0.5% in fiscal year ended October 31, 2019 to 3.9%in fiscal year ended October 31, 2022.
We aim for further development in the medium- to long-term.
[TOPICS] 2020 October Established KANAMOTO AUSTRALIA HOLDINGS PTY LTD in Australia
Made Porter Plant Group (Australia) a subsidiary company

Overseas
Kyushu &Okinawa Region
14.2％
West Japan
Region13.2％％
Hokkaido
Region22.2％

Kyushu &Okinawa Region
14.5％

West Japan
Region13.6％

FY2019Kanto &
Koushinetsu Region
22.5％

Overseas

TohokuRegion27.4％％
Hokkaido
Region23.5％

FY2022

Kanto & Koushinetsu
Region22.3％

TohokuRegion22.2％

24
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Medium-Term Corporate Management Plan Priority Measures
Progress “Optimize Internal Operational Processes”
Completed unification of core systems for major groupcompanies.

Aiming to integrate marketing and sales strategies with IT, and maximize asset efficiency, we have
set up a dedicated team for building a system for strengthening cooperation between purchase,
rental, and sales as well as improving operational
RentalAmountUtilizati
Rentalefficiency of rental assets.
unitof
assetsprice

on ratesales

In response to construction DX, we will we will engage in ICT, IoT, etc.
from the research and development stage in cooperation withconstruction companies and manufacturers.
With regard to environmental measures, we will have to wait fortechnological progress in construction machinery, etc., but we will makesteady progress as we will be able to adding solar generation facilities to ourunit housing, which serve as onsite offices, and compatibility to biofuels.
In terms of strengthening human capital, we are making progress on various
training and support systems as well as support for women's empowerment.
25
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Revision of the Medium-Term Corporate Management Plan
Consolidated Business Results
Overcome growth constraints resulting from changes in the external environment (steep increases inmaterials and labor costs, intensified competition, etc.) and changes in Kanamoto’s own environment(increases in cost of rental equipment, personnel expenses, etc.), and create a strong Kanamoto Group forthe new era.
(Millions of yen)
250,000

30,000Net sales

Operating profit

200,000

24,000150,000

18,000100,000

12,00050,000

6,000

0

0

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023/E

FY2024/E

Net sales

133,292

144,870

158,428

168,188

180,694

179,053

189,416

188,028

198,000

203,000

Operating profit

16,27015,134

16,665

17,59917,842

14,25014,624

13,22914,00014,600Operating profit
margin

12.2％

10.4％

10.5％

10.5％

9.9％

8.0%

7.7%

7.0%

7.1%

7.2%

Ordinary profit

16,164
9,557
71,998
202,578

14,405
8,098
81,434
220,540

17,193
10,744
91,788227,155

17,925
11,857102,031
241,374

18,277
11,430121,779
268,182

14,268
8,466
126,188
300,362

15,391
8,907
134,917
303,754

13,7808,345
140,611305,320

14,1008,400
144,468
308,592

14,8008,900
149,430
310,354

Profit attributable toowners of parent

Net assets
Total assets

BULL55 Expand operations

Strengthenorganization

Towards a strong Kanamoto Group

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Revision of the Medium-Term Corporate Management Plan
Numerical Targets
Medium-term Corporate Management Plan - “Creative 60” - (FY2020 - FY2024)
Numeric targets(Millions of yen)

FY2019Net sales

FY2020

FY2021

FY2022

FY2023/E

FY2024/E

FY2024/E(Initial plan)

1,806

1,790

1,894

1,880

1,980

2,030

2,280

178

142

146

132

140

146

230

Equity ratio

43.1%

39.6%

41.8%

43.2%

43.8%

44.9％

48.7%

EPS (yen)295.30221.45235.55224.64231.87250.82387.54

BPS (yen)

2,981.68

3,150.30

3,357.10

3,571.98

3,752.40

3,973.96

4,036.19

ROA

4.5%

3.0%

3.0%

2.7%

2.7%

2.9%

4.8%

ROE

10.8%

7.2%

7.2%

6.4%

6.3%

6.5%

10.0%

563

537

570

562

597

612

727

Operating profit

EBITDA+

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Revision of Medium-Term Corporate Management Plan
Positioning and Sustainability Management
Medium-Term Corporate Management Plan”Creative 60” (FY2020 - FY2024)
TOP5 in the global construction equipment rental industry

Positioning of the Medium-term
Corporate Management Plan
2020

Five years of “strengthening the foundation” for 2030

Emissions from use of fuel/emissions from purchased or acquired
electricity, steam, heat, and cooling
50% reduction by 2030 compared to 20132024

2020 – 2024
Medium-Term Corporate Management Plan “Creative 60”

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

2030

2030
Vision Realization

We will improve corporate value by further strengthen the resilience of our business by developing our business with anawareness of sustainability and by actively responding to various changes in the social environment under the three priority
measures.

Sustainability Management Promotion
Our basic principle of sustainability is striving to continuously improve our own corporate value while also contributing to thesustainable development of society. As such, we are strive to contribute to solving social issues through our main business ofrenting construction machinery.
In July 2021, we also endorsed the recommendations of
the Task Force on Climate-related Financial Disclosures (TCFD) as we continue to operate with the SDGs in mind.
In addition, in order to continuously improve corporate value, we believe that it is necessary to actively and proactively
respond to issues related to environmental and social sustainability, we will formulate a basic sustainability policy, and wehave put in place a framework and system to put this into practice.

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Revision of Medium-Term Corporate Management Plan
Basic Sustainability Policy
Basic Sustainability Policy

Everyone working in the Kanamoto Group will aim to build a foundation forsustainable growth, which is part of our Group Vision, and to contribute to thedevelopment of a sustainable society as a member and good corporate citizen ofsociety.
1

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

2

We will aim to help improve labor conditions throughout society by respecting human rights andconsideration toward employee health and work environment.

3

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

4

We will aim to enhance disaster prevention and mitigation and the national resilience of Japan aswell as improve crisis management of natural disasters and other calamities as core principles ofKanamoto's crisis management.

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Revision of the Medium-Term Corporate Management Plan
2030 Vision
2030 Vision

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.
2030 Numerical Targets
Net sales(Consolidated)

Operating profit(Consolidated)

225 billion¥

20 billion

¥

ROE

Over

Total return
ratio
Over

8%

50%
30

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Revision of the Medium-Term Corporate Management Plan
Investment Strategy Cash Allocation
Promote flexible investment strategy that meet actual demand
Cash Allocation
・ In addition to capital investment in rental assets based on demand trends, we will invest resources in growth investmentsfrom a medium to long-term perspective
・ In order to improve capital efficiency, we will implement proactive and continuous shareholder returns
・ We strive to balance operating cash flow and investment cash flow to maintain financial soundness
・ For growth investment opportunities such as M&A, we will use financial leverage while monitoring financial soundness

Rental equipment
investment, etc.

Ascertain demand trends, make strategic
investments to achieve sustainable growth andimprove productivity in core domestic
businesses, and strengthen overseas businesses.

M&A, etc.

Aggressive investment in acquisition of growth
foundation such as new businesses and M&A inorder to improve group value.

Dividend payout andacquisition of treasury
shares, etc.

Continue to pay stable dividends with a target ofa total payout ratio of 50% or more.

Cash flows
EBITDA

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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)

60,00040,00020,0000FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023/E

Operating profit

11,392

16,454

16,27015,134

16,665

17,59917,842

14,25014,624

13,22914,000Depreciation

14,767

17,486

19,752

22,45824,57025,722

27,70529,07331,71232,52834,300E B I T D A

26,15933,94036,02237,592

41,23543,32145,54743,324

46,33645,75848,300Property, plant andequipment equivalents

7,695

7,563

7,306

8,938

10,310

10,542

10,775

10,461

10,694

10,483

11,500+33,85441,50343,32846,53051,54553,86356,32253,78557,03056,24159,800Property, plant ande q u i p m e n t
i n v e s t m e n t

37,61142,40037,36738,29437,674

46,99252,09351,56737,26642,78653,300Free cash flow

△3,757

△894

5,960

8,235

13,871

6,871

4,229

2,218

19,764

13,4546,500

E B I T D A

EBITDA+ refers to EBITDA (operating profit and depreciation) plus property, plant and equipment equivalents.
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Revision of the Medium-Term Corporate Management Plan
Dividend Policy
Year-end dividend of 75 yen for the fiscal year ended October 31, 2022 (35 yen interim dividend)Year-end dividend of 75 yen for the fiscal year ending October 31, 2023 (35 yen interim dividend)Continue to pay stable dividends, acquire treasury stock in a flexible manner(Yen)■Regular dividend ■ Bonus dividend

60

65

65

FY19

FY20

70

75

75

FY22

FY23/E

50
45

20

20

20

20

20

20

FY08

FY09

FY10

FY11

FY12

FY13

35

35

FY14

FY15

FY16

FY17

FY18

FY21

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[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/

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

FY2009Net sales

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022 FY2023/E

63,863 70,173 71,086 86,106 110,831 125,555 133,292 144,870 158,428 168,188 180,694 179,053 189,416 188,028 198,000

Operatingprofit

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 13,229 14,000

Ordinary profit

-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 13,780 14,100

Profit attributable toowners of parent-1,158

1,041

1,165

3,575

8,466

5,809

9,299

9,557

8,345

8,400

Net assets

36,541 37,025 37,592 41,399 56,192 65,513 71,998 81,434 91,788 102,031 121,779 126,188 134,917 140,611-

Total assets

96,435 108,509 115,120 137,343 169,250 188,082 202,578 220,540 227,155 241,374 268,182 301,533 303,754 305,320-

Net sales

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

8,907

Operating profit

200,000

30,000160,000

24,000120,000

18,00080,00012,00040,000

6,000

0

0

FY2009 FY2010 FY2011 FY2012

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023/E

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Reference: Share price between December 2012 to December 2022

2,000

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