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

2024

Published in March 2024

I N T E G R AT E D
REPORT

2024

CONTENTS
4 Introduction

Mission Statement

Evolution into a Stronger Kanamoto Group

10 History of Creating and Evolving
Corporate Value
12 Kanamoto in Numbers

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 rainsaﬄicting various regions of Japan.
Much of the infrastructure in Japan is also in dire need of repair or replacement.
Our Group will always unify in an eﬀort to ensure the safety and security of Japan.

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

14 Ten-Year Summary (Consolidated)
16 Business Overview
18 Kanamoto Value Creation Process
20 Actualization of the "Creative 60"
Medium-Term Management Plan

Build a foundation for sustainable growth.

Group Value

Sustainability Section(ESG Initiatives)● Become a true general construction equipment rental company

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.

● Act as a large-scale rental mall that functions as a centralized site
for specialty stores● Accumulate and share all types of solutions

36 ESG Management
38 Environmental Activities
40 TCFD Initiatives
42 Social Activities

Action Guidelines
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

Editorial Policy
The Kanamoto Integrated Report emphasizes operating performance, business summa-

not only thinking for yourself but taking initiative. All of our employees embody the spirit ofthese action guidelines as principles inspiring the entire Kanamoto Group.
The drive to maintain growth while responding to the bewildering changes in the businessand Governance (ESG) initiatives that act as a foundation supporting growth. We hope
to oﬀer all shareholders, investors and other stakeholders a multifaceted view of
Our editorial team publishes this report with reference to the International Integrated
Reporting Framework advocated by the International Integrated Reporting Council(IIRC).

52 Financial Section
58 Branch Network
59 Alliance Group

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 theplans, strategies and other activities of Kanamoto Co., Ltd. The forward-looking
statements included herein may diﬀer substantially from actual management andcorporate philosophy. The pursuit of innovation without fear of breaking convention

operating performance due to various known and unknown risks and uncertainties.

and deepen the ﬁelds we take on. We are conﬁdent that by never wavering from these

Facts and Datasustainable growth at the Kanamoto Group.

environment lies in our action guidelines, which have supported our history as a type of
requires our employees to continuously renew their way of thinking. We must also expand

50 Board of Directors

ries and other ﬁnancial data as well as non-ﬁnancial data such as Environmental, Social,

The ﬁrst guideline demonstrates our vision as an organization. The second embodies ourrole as a corporate organization to generate earnings. The third stresses the importance of

44 Governance

60 Corporate Proﬁle61 Organization Chart
62 Corporate History
63 Stock Information●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.

action guidelines will lead Kanamoto to new horizons.

02 Kanamoto 2024

Kanamoto 2024 03

Message from the President

Aiming to become one of
the world's top 5 general construction
equipment rental companies,
we continue to pursue innovation andtake on challenges

portable toilets to the disaster areas from early morning on the day after the earthquake occurred, in response torequests from the Japan Self-Defense Forces with whom we have a disaster relief agreement. In addition to theJapan Self-Defense Forces, our Company has concluded disaster relief agreements with many local governments,
companies, and organizations. Disaster response, recovery, and reconstruction assistance are part of our mission.
We have renewed our determination to respond to the demands and expectations of society while reaﬃrming theimportance of our responsibility as an infrastructure business indispensable to society.
P.24 Kanamoto Group's Post-Disaster Recovery and Reconstruction Activity Support

Kanamoto Group Strengths
The Group's greatest strength lies in its high-level of technical capabilities. Based on our high-level of technicalcapabilities, we organically combine both tangible and intangible business resources to create a business structure
for providing a high-quality construction equipment rental service to our customers.

Using a system that directly connect us with work sites and our technical capabilities to develop new devices and systems

Tetsuo Kanamoto
President and CEO
Kanamoto Co., Ltd.

Kanamoto has developed many devices and systems for remote operation and safety assurance. This is because we haveestablished a proprietary system that directly links development with on-site requests by assigning a sales employee in eacharea who also works in the technology development section, and also due to the advanced technical capabilities possessedby our development section. We will continue to focus on the development of new devices and systems using a system that
directly connect us with work sites and advanced technical capabilities in response to increasingly sophisticated requirements,
such as the promotion of digital transformation in construction, labor savings, and environmental impact reduction.
P.28‒29 Promotion of Digital Transformation in Construction

Kanamoto is a one-stop shop that provides comprehensive support based on
its technology and expertise
The Kanamoto Group has established itself as a one-stop shop with a comprehensive support system with

Introduction

approximately 1,100 models and 620,000 rental items in our possession to ensure that everything needed at

Sixty years of expansion and growth driven by innovation and taking on challenges

by conducting thorough maintenance on a daily basis. I believe that our Group has earned the trust and reputation

2024 marks the 60th anniversary of Kanamoto s establishment. Looking back at our history, I think that pursuing innovation and

In addition, it is essential that all rental items are always in optimal condition for responding to disasters, and musttaking on challenges cumulatively is what has brought the Company forward. Started in Muroran City, Hokkaido, we expanded ourbusiness by shifting our core business to construction equipment rental. This led to the spread of branches initially from the Tohoku
Region to the Kanto Region and then later throughout Japan. In 2006, Kanamoto expanded overseas. Driven by innovation andtaking on challenges, Kanamoto has grown into an industry-leading general construction equipment rental company ranked eighthworldwide in terms of size.
P.10‒11 History of Kanamoto s Evolution

The construction equipment rental business has become an integral part of the civil engineering and constructionindustries, and is an infrastructure business indispensable to society. As a pioneer and market leader in theconstruction equipment rental business, we believe that our mission is to create new value by contributing to theresolution of social issues, such as the realization of a decarbonized society and the prolongation of infrastructureservice life, in addition to the challenges faced by the construction industry, such as responding to increasing
construction demand and labor shortages, and the promotion of digital transformation in construction.
P.18‒19 Kanamoto Value Creation Process

In addition, Kanamoto has also devoted its eﬀorts to helping with countless disaster recoveries. We have been
making eﬀorts to provide support based on our past experience in response to the Noto Peninsula Earthquake that

construction sites is available. This system is supported by our technical capabilities. Maintenance staﬀ areassigned to the workshops at each of our sales oﬃces to ensure that all rental items are kept in perfect conditionof our customers because of our high skills/expertise and the strong loyalty of our maintenance staﬀ.
be immediately available and ready in a timely manner. With this in mind, we will strive to further improve ourmaintenance techniques and expertise, and strengthen our one-stop and full support system to provide solutions
that our customers can trust.
P.16 A Full Line-up and Reliable Maintenance Systems

Building a stable management base with high technical capabilities
From a management perspective, our uncompromising maintenance contributes to higher proﬁtability in terms ofboth aspects of increasing the longevity of rental equipment and enhancing the asset value of equipment sold in
the used equipment market. In the equipment rental business ﬂow, which involves the recovery of investment
outlays for the purchase of assets through rental income before ultimately selling of the equipment, a key tosuccess is to have a suﬃcient amount of available assets that are already fully depreciated but are still good foruse. We have met this challenge with our advanced technical capabilities, and established a stable businessfoundation.
P.16 Rent and Saleoccurred in January 2024, by instructing each of our business areas to send heavy equipment, generators, and

04 Kanamoto 2024

Kanamoto 2024 05

Message from the President

Business Environment

Medium-Term Corporate Management Plan and 2030 Vision

The major trend of shifting from new construction to repair remains unchanged

On a good path toward becoming a general construction equipment rental company

Looking at trends in construction demand, there has been no change in the major trend of shifting from new

The fourth year of our current Medium-Term Corporate Management Plan Creative 60 (FY2020 to FY2024), hasconstruction to maintenance and repair. This trend is expected to continue in the future. We will continue to takealso come to an end. Considering that we were impacted by COVID-19 during three and a half years of the plan,measures in anticipation of an increase in repair work.

we have not been able to obtain satisfactory quantitative results. However, I believe that we were able to head on

In addition, since measures for longer lasting infrastructure are also an important issue, we will focus on shifting toa good path toward becoming a general construction equipment rental company.

preventive maintenance and developing/introducing related technologies.

At the end of the ﬁrst half of the current ﬁscal year, we will analyze and examine the trends up to that point,
identify the points that we need to focus on more, and reﬂect this in the next Medium-Term Corporate

P.26‒27 Measures for Longer Lasting Infrastructure

In the short term, there is a focus on expanding investment in semiconductor manufacturing, logistics facilities, andManagement Plan. Since we are engaged in the rental business, we must make the greatest eﬀorts on eﬃcient

the security-related ﬁeld. Overall, however, there is no signiﬁcant change in the market with both public andasset management, and I feel that there is still room to push forward in that area.

private investments expected to remain ﬁrm.
P.22‒23 Strengthening Our Ability to Respond to Construction Demand

P.20‒21 Toward the Realization of the Creative 60 Medium-Term Corporate Management Plan
P.30‒31 Demand On Infrastructure Development and Factory Construction Is On the Rise

Enhancing our lineup of remotely controlled equipment and environmentallyfriendly equipment
In recent years, there has been a great increase in demand for equipment leveraging IoT and AI technologies,
remotely controlled equipment, and environmentally friendly equipment. In particular, the need for heavy equipmentthat can be controlled remotely is accelerating against the backdrop of the development of communication
technology and the frequent occurrence of large-scale disasters, in addition to responding to labor shortages.

For our overseas business, we have set a overseas sales ratio target of 10%. The aim is to increase sales in ouroverseas business, where a high proﬁt margin can be expected and thereby improve the proﬁt margin of the Group.
Since the goal is to more than double the overseas sales ratio over the next six years, I believe that we will carry out
overseas M&As. Currently, we are expanding business in Asia and Oceania, and are looking to expand into new areas
as well as grow our existing bases. At this point, I think that North America is a promising region to expand in next.
P.32‒33 Asia and Oceania Region Sustains Strong Demand for Construction

We will achieve our 2030 target of ROE above 8% ahead of schedule

In response to such on-site demands, it is imperative to develop new products and technologies while enhancing

In December 2022, we announced our 2030 Vision aimed at realizing a form of management that maintains an

our lineup of equipment that contributes to labor saving and reduces environmental impact. In addition, sinceawareness of cost of capital and share price. We have made a commitment to achieving the numerical targets ofexpanding our share in this area is a theme directly leading to the sustainable growth of the Group, I believe that

ROE above 8% and a total payout ratio of above 50% by 2030. Although ROE is currently below 7%, we recognize

we must build a business structure that is viable as a proﬁtable business.

that we must achieve ROE above 8% ahead of 2030.

P.28‒29 Promotion of Digital Transformation in Construction

P.38‒39 Kanamoto Group s Environmental Initiatives

The main way to increase ROE is to increase proﬁt. This means that ﬁguring out how to increase the utilization rateof rental assets in order to make a proﬁt is most important. In addition, we will work to optimize rental unit prices

Business Report, Outlook for the Current Fiscal Year
Aiming to achieve double-digit proﬁt growth in the ﬁscal year ending October 31, 2024

by passing on cost increases to prices. At the same time, I think that capital policies, including the provision of
stable dividends and share buybacks, must be implemented in a timely and appropriate manner.

Measures for a form of management that maintains an awareness of cost of capital and share priceIn the (59th) ﬁscal year ended October 31, 2023, we were unable toAnalysis of Current Financial Conditions

achieve satisfactory results due to a decrease in proﬁt despite an

Improving PBR is an Important Management Issue

increase in revenue. Although we were able to secure some growth
momentum, we were unable to secure a level of proﬁtability suﬃcientenough to absorb the rising costs associated with global inﬂation.
P.52‒53 Report of Operating Results and Financial Position for the 59th Business Period

As for the future, it is important to ﬁgure out whether the forecasts on
which investment decisions were based were appropriate, and whether
the volume, timing, area, and model mix for investment were appropriate.
As we further promote digital transformation and optimization of internal

In order to improve over the current values (ROE below 8% and a PBR less than 1), we have set numerical targets for 2030
while establishing measures for a form of management that maintains an awareness of cost of capital and share price.
Aiming to achieve capital eﬃciency exceeding the current cost of capital of approximately 7% (Capital Asset Pricing Model), we
will focus on eﬃciency and raise both the rental rate and unit price of rental equipment. First, we will strive to achieve earlyrecovery of ROE 8% or more, and 10% or more in the medium to long term, and meet the expectations of our shareholders
with a total payout ratio of 50% or more based on stable dividends that we have continued to provide for a long time.
We will strive to achieve sustainable growth by continuing to invest in rental equipment, human capital, and M&A bothin Japan and overseas, aiming to become one of the top 5 in the world from our current status as the eighth-largest
general construction equipment rental company.

operations to improve the operational eﬃciency of rental assets, I believe

Initiatives

Measuresthat optimizing investment is also an important issue.

Strengthen Initiatives Based on the Analysis of
Current Financial Conditions

Speciﬁc Measures to Improve Proﬁtability

In the (60th) ﬁscal year ending October 31, 2024, we are expecting
double-digit proﬁt growth as a result of various management
measures, including the promotion of rental unit price optimization.
P.53 Forecast for the 60th Fiscal Year

06 Kanamoto 2024

1. Increase proﬁtability
2. Strengthen shareholder return policy
3. Continue to actively conduct IR activities

1. Increase the utilization rate of rental assets
2. Consolidate business oﬃces
3. Adjust rental unit prices to make it appropriate

Kanamoto 2024 07

Message from the President

In addition, as stable employment of human resources is also an issue, we are working to improve our namerecognition by sponsoring sporting events.
P.42‒43 Developing and Strengthening Human Resources

An eﬀective governance structure that contributes to sustainableenhancement of corporate value
The Kanamoto Group has adopted the various corporate governance systems used today for the purpose of
establishing the best and most advanced corporate governance.
We have adopted an outside director system to ensure more eﬃcient and sound management as well astransparency about our decision making. The executive oﬃcer system also better clariﬁes supervision andaccountability functions.
Corporate governance becomes the fundamental platform for companies in order to enhance their social value. I
feel that we must continue to maintain an eﬀective governance structure that contributes to the sustainableenhancement of corporate value by reviewing it as needed in response to changes in the external environment.
P.44‒49 Kanamoto Group Corporate Governance

Conclusion
Sustainable Management
Importance of linking ESG to business and continue sustainability-related activities
The Kanamoto Group positions and practices ESG as a central aspect of Group management as a good corporate
citizen coexisting with society. The important thing is to link ESG activities to our business and make themsustainable. From this perspective, we are clarifying the relationship between our Group s business activities andthe SDGs, increasing loyalty for contributions to the realization of a sustainable society as well as strengthening
and accelerating ESG activities.
P.36‒37 ESG Management

In particular, in terms of contributing to the global environment, the rental business itself epitomizes the sharing
economy, and it is a business that reduces environmental impact. In this sense, I feel that we must promote ourbusiness with a sense of mission to contribute to the global environment and meet the expectations of our customers
and society by developing new equipment and technologies that are friendly to the environment and people.
P.38‒41 Environmental and TCFD Initiatives

Improving the value of human capital by developing environments inwhich people can growI think that the added value that can be provided to customers in the construction equipment rental business is
not created by the construction equipment but by each and every employee. I believe that people are the mostimportant management resource for the Group.
With regard to enhancing the value of human capital, our company will pursue a system that enables employees
to engage in creative work by improving an environment that fosters human development based on our basic
policies of engagement and diversity and inclusion. Based on our action plan, which has a deadline of March 2026,
we are focusing our eﬀorts on achieving a work-life balance regardless of gender, and enabling all employees to

To be a company that exchanges love andempathy with all its stakeholders
At the beginning of my message, I said that we have grown driven by
innovation and taking on challenges. I believe that this is the result of
having followed the Action Guidelines, which should be called our
corporate philosophy, like a compass. The Action Guidelines teach usthat breakthroughs are born out of a culture that accepts change and aspirit of independence and self-reliance, and also that we must continue
to take on challenges as we generate proﬁts and continue to operate in a
way that contributes to society. I believe that adapting this spirit to thetimes to put it into practice is our path toward achieving continual
growth.
P.2,P.44 Action Guidelines

Along the way, I envision us becoming A Company Contributing to a
Safe, Prosperous Society with Values Shared by All Stakeholders. We
must be a strong, high-quality corporate group that rewards customers,
employees, and shareholders as stated in the Group Corporate
Philosophy.
We will continue to make eﬀorts to build a solid earnings base that is not
aﬀected by changes in the business environment and contribute to therealization of a sustainable society, and aim to become one of the top
ﬁve construction equipment rental companies in the world and a true
general construction equipment rental company backed by thecomprehensive strength of the Group. I ask for the continued andunwavering support of our shareholders and other investors.

grow with motivation and pride. In our action plan, we have set a numerical target of increasing the number offemale executives by 30%, and are also focusing on the active participation of women.

08 Kanamoto 2024

Kanamoto 2024 09

History of Creating and Evolving Corporate Value

History of Creating and Evolving Corporate Value

1991

The history of Kanamoto began in Muroran City, Hokkaido̶the center of steel manufacturing̶in October

Listed stock on the Sapporo
Securities Exchange

1964. Over the years, Kanamoto has pioneered change throughout the world and continued to spearhead its own evolution in many ways from transforming and expanding core businesses, developing
strategic bases, 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.

1981

1994

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

Began branch development in Hokkaido

Taichu Kanamoto appointed President
and Chief Executive Oﬃcer

Established branch in Aichi Prefecture(began branch development in the Chubu
Region)Kanamoto appointed Executive Director

1983

1979

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

Indigo blue dyed apron
from the Kanamoto Shoten era

1960s

Change in Net Sales/Ordinary Proﬁt¥100 million
2,500

1980s

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

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

Tokaido Shinkansen
operations begun
Tokyo Olympics held

Japan World Exposition
opened

1985

1978

1969

1,000

New Tokyo
International Airport(Narita Airport) opened

Tomei Expressway opened totraﬃc over its entire length

1990s

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

Expanded operations into Malaysia

2020
Expanded operations into Australia

2000s

2010 〜

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

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

2011

2018

2021

Osaka selected as venue
for international exhibition(Osaka Expo) in 2025¥100 million
250

2020 Tokyo Olympics
and Paralympic Games held

200

2016

Linear Chuo Shinkansen Linedevelopment plan decided

1998

2022
Transition to Tokyo Stock Exchange
Prime Market

Introduced special beneﬁts plan for shareholders

Hokuriku Shinkansen(between Nagano andKanazawa) opened

Kyushu Shinkansen
openedOlympic Winter Games(Nagano Games) held

KANAMOTO AUSTRALIAHOLDINGS PTY LTD

2015

2004

Kansai International
Airport opened

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

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

Established branch in Hiroshima Prefecture(began branch development in the Chugoku Region)

Tokyo Stock Exchangeon the day Kanamoto's
stock was listed

1994

1970

1964

2,000

2018

2007

Computer Divisionequipment roomin the 1980s

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

2017
Established new companies
in Thailand and Shanghai, China

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

Completed online computer system

1970s

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

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

2006

network linking all branches

Hachinohe Oﬃce (now theHachinohe Equipment
Repair Center)2016
Tetsuo Kanamoto appointed President
and Chief Executive Oﬃcer, and Kanchu
Kanamoto appointed Chairman of theBoard and Representative Director

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

Chuo Ward1985

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

2004

Relocated head oﬃce functions to Sapporo,

Tokyo the following year)

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

Safe from Kanamoto's
sole proprietor era

Listed stock on the Second Section of theTokyo Stock Exchange

Hokkaido; relocated to Bunkyo-ku,

Former headquarters building (Muroran)
completed
Kanamoto Shoten in Kaigan-cho, Muroran

1996

third operating division (Tomakomai,

1973

of the Tokyo Stock Exchange

Began earnest execution of alliance strategy,
including conclusion of alliance with Machida
Kikou Co., Ltd. and acquisition of Kanatech Co.,
Ltd. stock

Region)Equipment Division as the Company's

2015
Successively expanded operations into
Indonesia, Vietnam, Thailand, thePhilippines, and ASEAN countries

2000(began branch development in the Kinki

Launched Computer and Peripheral

Company name changed to KanamotoCo., Ltd.

50th anniversary of Kanamoto's
establishment

Kanamoto Hamamatsucho
K Building（Business Coordination
Headquarters）

Established branch in Osaka Prefecture

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

1972

1,500

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

1971

Tomakomai Sub-branch(now the Tomakomai
Branch)Stock elevated to the First Section of the Tokyo
Stock Exchange
Kanchu Kanamoto appointed
President and Chief ExecutiveOﬃcer, and Taichu Kanamoto
appointed Chairman of theBoard and Representative
Celebration commemorating
elevation of stock to First Section
Director

Completed construction
on the Kanamoto
Hamamatsucho
K Building

1964
and Chief Executive Oﬃcer, and Taichu

2014
Changed stock trading unit size from
1,000 shares to 100 shares

1999* Please also see Corporate History (p.62) for more detailed information about the history of Kanamoto.

Zenchu Kanamoto appointed President

1998

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

150

100

500

0

50

'66

'67

'68

10 Kanamoto 2024

'69

'70

'71

'72

'73

'74

'75

'76

'77

'78

'79

'80

'81

'82

'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

'24

0

Kanamoto 2024 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,
including our nationwide location network, our technological capabilities, andother features.

Group Market
Rankings and Sales▷ P52

Domestic

Worldwide2
8

Number of Locations andGroup Companies

Personnel (Certiﬁed)

▷ P58

▷ P42

Domestic

543
23

nd

locationsthOverseas

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

Consolidated Net Sale

197,481

Number of Alliance Group Companies

Consolidated operating proﬁt

11,958locationsmillion yen

34

million yen

companies

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

940
401
4,486

Construction
Equipment
Mechanic(Total of Expert, 1st Class,and 2nd Class Mechanic)

Organic Solvent
Work Manager

Hazardous Materials
Handling Manager

Vehicle-type Construction Equipment Operators

Mobile Crane Operator▷ P60

Number of Employees
Non-consolidated

Number of
Rental Items▷ P16

12 Kanamoto 2024

1,100models,
620,000items

Approx.

595
410
2,115

Portable
Generator
Mechanic

Consolidated

2,020
3,910

Average years of service

12.5*Excluding directors and temporary or part-time workers

Kanamoto 2024 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

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

125,555
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

197,481
11,95812,4886,721
43,926

188,082
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
140,611

316,440
143,677

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)
47,04737,960（6,699）（33,995）
45,093

Information per share of common stockyen
258.02
1,758.24
35.00
13.6%

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

229.162,169.93
45.00
19.6%

266.27
1,969.16
35.00
13.1%

304.052,440.41
50.00
16.4%

295.302,981.68
65.00
22.0%

335.54
2,707.49
60.00
17.9%

221.45
3,150.30
65.00
29.4%

185.403,729.73
75.00
40.5%

224.64
3,571.98
75.00
33.4%

235.55
3,357.10
70.00
29.7%

Management index

Millions of yen
41,503
33.7%
15.8%
5.2%

EBITDA
Equity ratio
ROE
ROA
+

EBITDA +46,530
34.8%
11.1%
3.8%

43,328
34.4%
14.4%
4.9%

51,545
38.0%
13.2%
4.8%

56,322
43.1%
10.8%
4.5%

53,863
39.6%
13.0%
5.1%

Net Assets
Equity Ratio

53,785
39.5%
7.2%
3.0%

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

'14

'15

'16

'17

'18

'19

'20

'21

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

14 Kanamoto 2024

'22

'23

0

'14 '15'16 '17'18'19'20 '21

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

'22

'23

57,894
42.5%
5.0%
2.2%

56,241
43.2%
6.4%
2.7%

57,030
41.8%
7.2%
2.9%

8

'14

'15

'16

'17

'18

'19

'20

'21

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

'22

'23

0

'14

'15

'16

'17

'18

'19

'20

'21

'22

'23

ROA
ROA = Net income ÷ Total assets

Kanamoto 2024 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

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

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 civil
FY2023engineering and construction.
Percentage of net sales by business (consolidated)

90.2

9.8％

FY2023
Percentage of net sales by business(consolidated)

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

Steel Product Sales Business

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 selection of 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 steel product sales business was a Kanamoto core business and the 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 executes various other specialized construction projects as well as sells and installs
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 the high-quality
steel products essential to the civil engineering and construction work that supports infrastructure and our livelihoods.

Reliable Maintenance Systems Set Up at Every BranchInformation Products Rental Business

Kanamoto alone has about 230 branches in Japan while the Group has more than 540 bases. Every single one of thesebases has highly-skilled maintenance staﬀ who maintain the rental equipment on a daily basis to maximize theirperformance. Uncompromising maintenance also helps enhance the asset value of equipment sold in the used equipment market.

Flexible Operating Decisions to Capitalize on Rent and Sale
The basic business model for rental business is to recover investment outlays for the purchase of assets through rental
income before ultimately selling of the equipment. Easing depreciation and extending the life of assets have been key
themes for boosting Kanamoto proﬁt margins. We also ﬂexibly judge the timing of sales for used construction equipment
models in high demand according to global market conditions.

Substantial Compensation Systems to Rapidly Respond to Diverse Needs
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 of compensation has grown more complex. Kanamoto has
assigned compensation assessment managers to each region in an eﬀort to provide the highest level of compensationassessment and services in order to not only incorporate customer needs but also oﬀer peace of mind.

Steel Product Supply Essential for Civil Engineering and Construction

Latest IT Rental Equipment Available at All Times

The Information Products Rental Business has continued to oﬀer rentals of the latest IT equipment since its launch in1983. In 2012, we opened the Kanamoto Cyberbrain Warehouse on Rakuten to expand business through the saleof IT equipment after rental to individual customers and other avenues as much as possible by acting as a bridge foreveryone to IT technology. The evolution of technology in the IT industry is astounding. The Information Product
Division actively proposes advanced customer-oriented services to oﬀer the latest hardware and software.
Welfare-related BusinessBroad Line-up to Support In-home CareIn the welfare business, Nishiken Co., Ltd. and Carewell Anshin Co., Ltd. rent andsell 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
uncompromising quality 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 2024

'14

'15

'16

'17

'18

'19

'20

Left axis

Net sales'21
Right Axis

'22

'23
Operating proﬁt

0

0

1,600

'14

'15

'16

'17

'18

'19

'20

Left axis

Net sales'21
Right Axis

'22

'23

0

Operating proﬁt

Kanamoto 2024 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)

Outcome: Value created by Kanamoto

Output: Business activities

Injection of Sustainable Management Resources to Address Social Issues

Financial and investment capital(As of October 2023)

Business domains

Kanamoto Strengths

316,440

Construction
Equipment
Rental Businessmillion▶ Capital investments in rental assets andSociety and customer needs

other equipment prioritizing operationaleﬃciency and proﬁtability

Other
Businesses(Steel Product Sales Business,
Information Products Rental
Business, Welfare-related
Business)worldwide▶Technical and development

capabilities responding toon-site demandalmost half a century

Human capital

Medium-term management plan

Number of Employees

3,910

Concentrate the Collective Group Capabilities▶ Diverse human resources with high-levelknowledge and skills

Japan

Overseas▷ P.58Overseas Expansion

Upgrade Overseas Strategy
2.0 (Next Generation)

bases
bases

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

197,481million

Proﬁt attributable to owners of parent

6,721 million

Optimize Internal
Operational Processes

Increase Rental Business Proﬁtability

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 andProﬁtability

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
impactImprove employee satisfaction
Return profits to shareholders
・・・

543
23

▷ P.20

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

Branch network

Net Sales

services(As of October 2023)(As of February 2024)

Economic value (Financial)¥▶High-quality products and▶Brand power cultivated overSocial capitalFYE October 31, 2023

To Become a Company Contributing to a Safe,
Prosperous Society with Values Shared by All Stakeholders▶Broad customer baseTotal assets¥▷ P.16

Re-investment Toward Further Value Creation

Build infrastructure that
supports business growthSocial Issues, Megatrends
and Global Objectives
18 Kanamoto 2024

●Corporate governance●Compliance●Risk management●Environmental management▷ P.35Contributions Toward a Sustainable Society

Kanamoto 2024 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 -Expansion of the Kanamoto Domestic
Base of Operations

Domestic

The Kanamoto Group will aim to achieve the targets in the Medium-Term Corporate Management Plan Creative 60

Concentrate the Collective Group Capabilities

and continue to pursue its existing key initiatives of expansion of our domestic base of operations, overseas expansion, and optimization of internal operational processes, while further strengthening our business resilience andfurther increasing our corporate value through sustainability-conscious business development and proactive
responses to various changes in the social environment (transformation).

Deeply mine existing areas

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

Expand into non-construction sectors

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

Overseas Expansion

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 incorpo-

Overseas

Upgrade Overseas Strategy 2.0 (Next Generation)

rate 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.

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

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

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.

Increase Rental Business Proﬁtability

Integrate marketing and sales strategies with IT

2030

2020 ‒ 2024

Vision Realization

Creative 60 Medium-Term Corporate Management Plan

Optimize Internal Operational Processes

Internal

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.

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

2030 Vision

2030
Numerical Targets¥

Operating proﬁt (Consolidated)

225¥ 20 billion
billion

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

Cash allocation

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.
Net sales (Consolidated)

Improve operational eﬃciency

8
Total payout ratio Above 50 %
ROE

Above

%

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 acquisitionof treasury shares, etc.

Continue stable dividend with a target total payout ratio
of above 50% 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 2024

Kanamoto 2024 21

Feature
Expansion of the Kanamoto Domestic Base of Operations

Domestic

Strengthening Adaptability to Rental Demands
While Aiming for Solid Sustainable Growth
Construction Investments Expected to Grow Strong

National Policy with ¥15 Trillion Project Budget Moves Forward

Promotion of Projects to Strengthen the Road System

The amount of construction investment has been rising steadily since around 2012, to an estimated total of ¥71.9
trillion for ﬁscal 2023, 4.6% higher than the amount estimated for ﬁscal 2022 (¥68.8 trillion). Forecasts anticipate¥72.4 trillion of investments throughout ﬁscal 2024, a 0.7% 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.

With a supplementary fund of approximately ¥1.5
trillion secured in ﬁscal 2023 alone, a total of 123
disaster reduction projects will address a wide range ofissues from measures to tackle more severe storm andﬂood damage as well as imminent large-scale
earthquakes to obsolescence measures for a transition
to preventative maintenance of infrastructure in addition
to the promotion of a digital transformation aiming toenhance the eﬃciency of policies toward a more
resilient Japan. Over ﬁve years, ﬂood disaster prevention
measures to manage river basins will build and reinforce
structures such as embankments and proceed river
channel excavation to increase the maintenance rate ofclass 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 highrisk of landslide damage (approx. 33,000 locations) to
73% by ﬁscal 2025. This policy lays out many speciﬁctargets to promote a digital transformation in each ﬁeld,
such as an increase in 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■ Private Investment in Maintenance Construction (Renovations / Repairs)■ Private Investment in Non-residential Construction(Trillions of yen)

80

60

56.6
51.6

40

14.2

41.9

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

20

0

6.2

58.7

13.0

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

■ Private Investment in Residential Construction■ Public Investment in Construction

66.4

67.8

68.8

8.2

8.9

8.9

17.5

18.2

18.7

15.7

25.1

'20

16.8

24.0

'21

16.9

24.3

'22

71.9

72.4

9.9

10.2

19.0

19.0

17.2

17.2

25.8

26.0

'23

（Prospects） （Prospects） （Outlook）'24（Outlook）

Source: Prepared based on the Construction Economy Model Forecast of Construction Investment (January 2024) published by the Research Institute of Construction and Economy (RICE)

22 Kanamoto 2024

*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 2024 23

Feature
Expansion of the Kanamoto Domestic Base of Operations

Domestic

The Kanamoto Group is Building a Continuous Support System for
Responding to Large-scale Damage Caused by Natural Disasters

Promoting the Realization of Decarbonized Society throughResponding to the Rising Demand for Renewable Energy

The Entire Group Works Together to Provide Construction Machinery and Materials

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
the Great East Japan Earthquake. This phase includes investment of approximately ¥1.6 trillion in support projects that are being carried out.
This new stage of reconstruction is expected to require ongoing support, and the Kanamoto Group will do everything in its power to respond.
Also, as seen with the large earthquake with a magnitude of 7.6 that occurred on the Noto Peninsula in Ishikawa Prefecture on January 1, 2024,
natural disasters have tended to become more frequent and severe in recent years, 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 since 2016 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 and equipment 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 70.70 million kW
installed by March 2023, ranking third in the world after China and the United States, a remarkable development. Windpower is also 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 relatedindustries, it is expected to become a new mainstay industry in Japan. As the construction of the grid system continues toprogress in areas 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 theseprojects.

Recent Major Disasters
2016

April

Trends in Solar Power Generation in Japan2018

Kumamoto earthquake

Hokkaido Eastern Iburi Earthquake

Kumamoto prefecture, etc.

Hokkaido

June/July

Kumamoto/Miyazaki prefectures

Typhoon No.7, and 9 to 11

2019

Hokkaido/Iwate prefecture

June/July

September

Nagasaki/Kagoshima/Kumamoto prefectures

Shizuoka/Yamaguchi/Kochi, Fukuoka/Saga/Nagasaki/
Kumamoto/Oita/Miyazaki/Kagoshima prefectures

Typhoon No.3, 5, etc.

Ishikawa Prefecture

October

May to July

Tokyo and 13 prefectures in the Tohoku,
Kanto Koshinetsu, and Tokai regions

Aomori/Akita/Ibaraki/Saitama/Toyama/
Ishikawa/Shizuoka/Wakayama/Shimane/
Yamaguchi/Fukuoka/Saga/Oita prefectures

Torrential rains in Northern
Kyushu and Typhoon No.3

Typhoon No.18

Typhoon No.21

2021

Niigata/Mie prefectures and the
Kinki region

May to July

Typhoon No.9, 10, etc.
7 prefectures in regions fromTohoku to Kyushu

August/September

MarchWakayama/Nara/Osaka/Nagano/Niigata prefectures

Typhoon No. 7
Kyoto/Hyogo/Tottori prefectures

Torrential rains causedby the seasonal rain front

Okayama/Hiroshima/Ehime prefectures

Typhoon No.19 to 21

2022

5,000
4,000
3,000
2,000
1,000
1993 1995

2000

2005

2010

2015

2020

0

(FY)

Source: "Energy White Paper 2023," Agency for Natural Resources and Energy,
Ministry of Economy, Trade and Industry

Maximizing Implementation at Suitable Sites: Promoting Oﬀshore Wind Power【Legend】
Promotion zone
Promising area
Area that has attained
a speciﬁed level of readiness

May to July

August2018 Japan Floods andTyphoon No.5 to 8

2023 Okunoto Earthquake

AugustKyushu ﬂoods, etc.

September

Typhoon No. 12, and 13

Tottori/Shimane/Kagoshima prefectures

May to JulyMay

Stationary rain front/Typhoon No. 2

9 prefectures in regions fromTohoku to Kyushu

Kyoto/Ehime/Oita prefectures

September

2023

Typhoon No.19 to 21

2020

6,000

Typhoon No.14/15

Saga/Chiba prefectures

September

24 Kanamoto 2024

Tottori/Miyazaki/Kagoshima prefectures

Aomori/Yamagata/Niigata/Ishikawa/
Fukui prefectures

Miyazaki/Kagoshima prefectures

Fukuoka/Oita/Akita prefectures

2018

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

August/September

June/July

7,000

Total amount implemented(cumulative total)

AugustTyphoon No.24

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

(Unit:
10,000 kW)

Torrential rains causedby the stationary rain front

September

Typhoon No.16

2017

July

Kumamoto/Miyagi prefectures

September/October

Torrential rains causedby the seasonal rain front

August/September

September

2022

Shinchimachi, Soma district,
Fukushima Earthquake
Fukushima

Ibaraki/Chiba prefectures

2024

January2024 Noto Peninsula Earthquake
Ishikawa/Toyama/Niigata/Fukui
prefectures

Note: Areas highlighted in light blue indicate themain regions aﬄicted by each disaster.
Source: Disaster Prevention Information page on the
Cabinet Oﬃce website
Earthquake Information, Ishikawa Prefecture website

Source: Current Status of Domestic and Overseas Renewable Energy and Proposed Agenda Items for Discussion in the Current Fiscal Year by theProcurement Price Calculation Committee (October 2023) Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry.

Kanamoto 2024 25

Feature
Expansion of the Kanamoto Domestic Base of Operations

Domestic

Responding to Higher Maintenance Productivity
and Longer Lasting Road Infrastructure
Expected Need for Road Infrastructure Development in the Future

Supporting Large-scale Infrastructure Upgrades through Our Extensive Lineup of Specialized Equipment

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). 58,888 bridges were designated Category III or Category IV in the Annual Report on Road Maintenance (August 2023) prepared by the Ministry of Land, Infrastructure, Transport and Tourism during inspections as of March 31, 2023. Japan had begun maintenance on 27,708 of those bridges,
only 47% of the total number of bridges requiring attention. Similar repairs have also only begun on 67% of tunnels
requiring attention in 3,586 sites as well as 61% of road attachments in 5,407 locations. In addition, 4% of the bridges,
18% of tunnels, 8% of road attachments, etc. assessed as Category I (sound) or II (preventive maintenance stage) in
inspections conducted between ﬁscal 2014 and ﬁscal 2017 had become Category III or IV after ﬁve years in inspections conducted between ﬁscal 2019 and ﬁscal 2022. To overcome these challenges, Kanamoto promotes a shift topreventative 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.

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

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

Percentage of Infrastructure Over 50 Years Old
2020％

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

Percentage of completed corrective maintenance
Percentage of ongoing corrective maintenance

2030

2040

80
70
60

CategoryⅢ and Ⅳ: Requires maintenance before next inspection

Bridges（723,027）

0.1％

42％

50％

50
40

Bridges（58,888）

７５

30

55

20

8％

19％

30

10

28％

0
0

10

20

30

40

50

60

70

80

Tunnels（11,107）
3％

10

20

30

40

50

36％
10

20

60

70

80

40

10

50

60

80

30

40

90

100

（％）

90

100

（％）

50

60

0

10

20

40

50

0

10

60

70

（％）

35％
20

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 2023) released by the Ministry of Land, Infrastructure, Transport and Tourism.

26 Kanamoto 2024

38
5

10

Tunnels

35

River Management Facilities

16

Drainage/Sewage Piping

43
21

Harbor Quays

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

Road attachments, etc.
（5,407）26％

23

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

（％）

32％
30

36

22

Road Bridges

70

Tunnels（3,586）

13％
70

20

35％

0.1％

51％
30

（％）

0

32％

Road attachments, etc.（41,812）

0

100

0.3％
65％

0

90

66

53

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: Values for 2018 and 2023 are also estimates 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 2024 27

Feature
Expansion of the Kanamoto Domestic Base of Operations

Domestic

Strengthening the Promotion of Digital Transformationin Construction to Further Improve Productivity
Rapid Popularization of ICT Implementation, and BIM/CIM

Active Promotion of IoT and ICT Equipment Development

Digital Transformation (DX)*1 is coming into increasingly widespread use in the construction industry to compensate forlabor shortages. With the establishment of the Construction RX (Robotics Transformation) Consortium, technologicalcollaboration 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 to promote ICT
construction, which adopts Information Communication Technologies (ICT) in every process on construction sites fromthe 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 2021 and 2022. BIM/CIM*2 can be seen as two

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 digital transformation, such as the Construction 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 thedevelopment 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 torealize the remote control of construction equipment with
the Softbank Corporation in 2019 in an eﬀort to build abusiness scheme in anticipation of commercial services using
5G. In September 2020, we welcomed Sooki Holdings to theKanamoto Group to oﬀer surveying and measurement
equipment rental services, which are key to ICT construction,
as well as the development and rental of automatedmeasurement systems. We also concluded an allianceagreement with Iwasaki Co., Ltd., an established systemsolutions company, in May 2021 to promote broader use of
ICT construction solutions for ground reinforcement management systems. In 2023, we are working with Iwasaki andHemisphere Japan to develop the VR500 model for oﬀset
boom machines, which can dig ditches eﬃciently even in
narrow space, and we are working to strengthen this ﬁeld,
which is expected to become even more active.

prominent digital technologies of the digital transformation in construction. The number of work and projects using
these two digital technologies has grown to a cumulative total over 3,000 projects as of March 31, 2023.Takenaka
Corporation and other Group companies have placed even more emphasis on this digital transformation throughinitiatives that include the joint development of BIM × Drone.
This new system facilitates the safe ﬂight of drones inside ofbuildings obstructing satellite signals by using BIM and Visual
SLAM technologies*3. In addition, we have jointly developed
the Sharaku 3-lens camera bar arrangement inspection
system with SHIMIZU CORPORATION and Sharp Corporation, and ﬁrst made it available for rental in 2023 to promote
work style reform at construction sites.
*1 A digital transformation leverages data and digital technologies to reformorganizational and business models 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 for simultaneous positional estimation and environmental
mapping.

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

Prevalence of ICT Construction
Left axis :Right Axis:

PavingEarthworks
Ratio of ICT Construction

Dredging (Ports)

Dredging (Rivers)

Ground improvements

2,942
2,397

2,800
2,100

81％
2,396

79％
1,890

1,947

84％

2,685

2,264

87％
2,379

（％）
100

80
2,064

57％
1,400

40

1,104

700
0

20

Public Press
Releases'18

ICT UsePublic Press
Releases

ICT Use'19*Constructions that include multiple construction types are count as
one construction in the total number of constructions.

28 Kanamoto 2024

Public Press
Releases

ICT Use'20

Public Press
Releases'21

ICT UseCumulative Projects (As of March 31, 2023)

Public Press
Releases

ICT UseBusiness: 1,966 projects

Construction: 1,291 projects

Total: 3,257 projects

757

0

'22

Source: Materials on initiatives to expand the use of ICT construction (September 2023)
published by the Ministry of Land, Infrastructure, Transport and Tourism

445

700
274

600

515

500
60

Construction

994

900
800

(No. of constructions)
3,500

Business(No. of projects)
1,000

126

400

361
107

300
200
100
0

483

212

11
12

19

40 21
13

10

38 28
14

76
16

60

15

34

121

132

65

87

78

147

16

17

54

18

549

389
254

19

20

21

22

Source: Materials on initiatives to expand the use of ICT construction (September 2023) published by the Ministry of Land, Infrastructure, Transport and Tourism

Kanamoto 2024 29

Feature
Expansion of the Kanamoto Domestic Base of Operations

Domestic

Construction of Semiconductor Plants for World s Major Semiconductor
Manufacturers, Building Infrastructure for Osaka Expo, Various Local
Railway Networks, and Other Construction Demand Is on the RiseWork Begins on a Succession of Large-Scale Construction Projects in Japan
In addition to measures toward a more resilient Japan, including measures to protect public infrastructure from disasters anddeterioration, the construction of plants for manufacturing semiconductors, which are indispensable for electronic devices andother products, is steadily underway. TSMC, a Taiwanese semiconductor manufacturer, is building a semiconductor plant inKumamoto Prefecture covering an area of more than 20 ha. TSMC invested around 8.6 billion dollars (approx. ¥1 trillion) in Fab
1 in Kumamoto Prefecture. This amount will include up to around ¥480 billion in subsidies from the Japanese government. Fab
1 opened in February 2024 and planning is underway for the construction of Fab 2, which is scheduled to begin operations by
the end of 2027. In addition, Rapidus, a semiconductor manufacturing company, is building a state-of-the-art semiconductor plantin Chitose City, Hokkaido. The plant is expected to start trial production in April 2025 with a total of ¥5 trillion invested.
SBI Holdings and Taiwan's PSMC plan to jointly build a semiconductor plant in Ohira Village, Miyagi Prefecture. In the fall of 2023,
the two companies concluded an agreement with Ohira Village, Miyagi Prefecture regarding the location of the new plant. Total
investment is expected to exceed ¥800 billion.
In light of these large-scale plant construction projects, we will expand our business activities to meet the active needs of eachregion, including infrastructure development.

Responding to the Construction of Planned Shinkansen Lines and Strengthening Our System
Large-scale transportation infrastructure construction and maintenance projects are also
in full swing in various regions, including the Hokuriku Shinkansen (Kanazawa to Tsuruga),
which opened in 2024. This work not only includes extension construction for extending
the Hokkaido Shinkansen from Shin-Hakodate-Hokuto to Sapporo, but also the ongoing
construction of the Linear Chuo Shinkansen (Shinagawa to Nagoya)̶a massive projectwith an estimated budget of ¥7 trillion to ¥10 trillion̶ set to begin service in 2027 orlater. A project tentatively named the Haneda Airport Access Line began, which has beenplanned since 2016.This project is building a new roughly 5km access line from the
Kanagawa Prefecture Station (tentative name) of the
Linear Chuo Shinkansen under construction
Haneda Airport New Station (tentative) located between Domestic Terminal 1 andTerminal 2 of Haneda Airport to the Tokyo Cargo Terminal. The plan for this project upgrades the existing lines and connects them tothe 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 new routes in ﬁscal 2031. 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.
Kanamoto launched a Specialized Equipment Engineering Division in August 2016 to oversee the new Tunnel Machinery and Water
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 on bullet train lines, the linear Chuo Shinkansen,
and various railway and roadway tunnels.

Various Bullet Train Lines and Linear Chuo Shinkansen Routes

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

Hokkaido Shinkansen

Shinbashi

Fiscal 2030 : Scheduled opening ofShin-Hakodate Hokuto ̶ Sapporo segment

Fiscal 2046 : Scheduled opening of
Tsuruga ̶ Shin-Osaka segument

West Yamanote Route
Saikyo Line
Yamanote Line

Shin-Hakodate
HokutoOshio Line

Hokuriku Shinkansen

SapporoShinagawaShin-Aomori

Tohoku Shinkansen
Tokyo

ine

uka L

Yokos

NagoyaNagasakiKagoshima Chuo2027 or later :Scheduled opening of Shinagawa ̶ Nagoya segment

ine

Ky

uk

ka
id
To

Kamataihin

Linear Chuo Shinkansen

Keikyu Kamata

Note : Planned extension between Nagoya and Osaka

Existing Line
（JR）

Kyushu Shinkansen Line(West Kyushu Route)

New Shinkansen Line intervals
currently open
Intervals currently underconstruction or not yet started

Line

Existing Line（Private Line）
New LineLine Extension

Tokyo Freight Terminal

Tokaido Freight Line

Takeo
Onsen

oL

oL

ine

Shin-Tosu

Tokyo Monorail

Osaka Prefecture is currently undertaking a construction project related to the World Expo, which is scheduled tobe held in 2025. The planned site for the Expo, which is estimated to have an economic impact of approximately
2.7 trillion yen, is Yumeshima, an artiﬁcial island in Osaka Bay(total land area: 390 hectares). The construction cost of thevenue is expected to be ¥235 billion. As a means to transport
visitors to Yumeshima, plans to expand various railway lines areunder review from the Osaka Metro Chuo Line and Keihan
Nakanoshima Line to the JR Yumesaki (Sakurajima) Line. Since
infrastructure development, including redevelopment of the bay
area, is expected to be active, we will continue to strive to meeta wide range of needs for large-scale construction projects inJapan.

kai

Rin

Haneda Airport Access Line

Shin-Osaka

Ke2025 Osaka Expo Redevelopment Project

Tokyo teleport

Coastal Area Route

Osaki

Tokaido/Sanyo Shinkansen

East Yamanote Route

New Haneda Airport Station

Haneda Airport
International Flight
Building

Haneda Airport
Terminal 2 Building

Haneda Airport
Domestic
Terminal
Haneda Airport
Haneda Airport
International Terminal Terminal 1 Building

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

30 Kanamoto 2024

Kanamoto 2024 31

Feature
Overseas Expansion

Overseas

Asia and Oceania Region Sustain Strong Demand forConstruction Including Infrastructure Development

Basic Kanamoto Group Expansion Information and Main Projects by Country(As of 2022(Construction investment data as of 2021))
China
Population(10,000 persons)Growing ASEAN Construction Demand

Real GDP growth rate

Construction business in ASEAN countries continues to grow steadily in Indonesia, Malaysia, Thailand, and othercountries in the region. Infrastructure development associated with the relocation of the new capital in Indonesia
and inward direct investment in Malaysia reached record highs for the second consecutive year. In Thailand, thedevelopment of large-scale industrial parks and the development of roads extending to the border with Laos areaccelerating. In the Philippines, the construction economy is booming due to the government's policy to strengthen
infrastructure and private investment. In 2006, the Kanamoto Group established a subsidiary in Shanghai, China, andlater expanded into Indonesia, Vietnam, Thailand, and the Philippines in 2015. The Group established new companies in Thailand and Shanghai in 2017, and in Malaysia in 2018. In Indonesia, we launched a construction equipment
rental business in October 2023.

Infrastructure Demand as a Source of a Higher Overseas Sales Ratio
Infrastructure projects are underway in various countries in the Asia and Oceania region. The Transport System
Development Strategy (2017-2036) in Thailand and the Build Better More (BBM) Program in the Philippines continue
to promote infrastructure development. In Vietnam, the 10-Year Social Economic Development Strategy and in
Malaysia, the Penang Transport Master Plan, a large-scale infrastructure development plan, have been formulated topromote large-scale infrastructure development. Australia is undertaking large-scale plans to invest approximately¥9.7 trillion in construction and maintenance of transportation infrastructure throughout the nation over the next ten
years. Although we are currently expanding our operations in countries such as China, Thailand, Malaysia and thePhilippines, among our overseas bases, Australia is the country where we experience the highest level of sales. In
2020, we acquired two holding companies and three main operatingcompanies of the Porter Plant Group (PPG), a corporation domiciled inAustralia, which is involved in the construction equipment rental businessand other businesses. As a result, the Group s overseas sales for the ﬁscal
year ended October 31, 2022 increased more than three times
compared to levels in the ﬁscal year ended October 31, 2019. At each of
our overseas bases, we are strengthening our sales system by focusing on
training local staﬀ in charge of sales and technical aﬀairs. As we consider
expanding into North America in the future, we will strengthen the sales
structure of our overseas bases and develop our business in response to
the growing demand for infrastructure in the Asia and Oceania region.

Total nominal GDP(billions of US$)

2024

9
6
3
0
-3

4.6
0.9

0.8

Japan

2.1

1.7

USA

0.6

1.6

UK

1.4

2.1

Australia

0.9

1.7

1.5

6.5

6.5

4.1

4.7

4.4
1.9

1.8

Euro zone Developed country/
regions

China

India

ASEAN-5

2.5

2.9

4.2

Latin America and Middle East/
the Caribbean
Central Asia

3.8

4.1

2025

4.1

4.2

Emerging market
Sub-saharan countries/Developing
Africacountries

3.0%
17,963.2

Nominal per capita GDP(dollars)

12,814

Construction Investment(Production Volume)(100 Million Dollars)

12,426.5

主Main
要 プロジェクト
projects●Construction of Dalian Wind Power
Generation Industry Park
●Construction of sponge cities as adisaster prevention measure●Jiangsu Plan for Promotion of Transportation Infrastructure Development centered
upon a high-speed railway system andairport expansion (through 2035)●Water conservation projects●Plans for a total of $1.4 trillion in new
infrastructure construction, etc.

Population(10,000 persons)

9,946

Real GDP growth rate

8.0%

Total nominal GDP(billions of US$)

408.8

Nominal per capita GDP(dollars)

4,087

Construction Investment(Production Volume)(100 Million Dollars)

215.8

Thailand
Population(10,000 persons)

6,609

Real GDP growth rate

2.6%

Total nominal GDP(billions of US$)

495.3

Nominal per capita GDP(dollars)

7,651

Construction Investment(Production Volume)(100 Million Dollars)

137.3

Population(10,000 persons)Main projects●Development of Smart Park, locatedin Map Ta Phut Industrial Estate inRayong Province●Bangkok-Chiang Mai High Speed RailDevelopment Project●High-speed railway line which willconnect three major airports●Ta Phut Industrial Port and Laem
Chabang Deep Seaport Development●U-Tapao International Airport
expansion, etc.

10,903*

Real GDP growth rate

7.6%

Total nominal GDP(billions of US$)

404.3

Nominal per capita GDP(dollars)

3,623

Construction Investment(Production Volume)(100 Million Dollars)

273.6

Main projects●North-South Express Railway●Long Thanh International Airport●Hanoi City Yen Xa Sewerage
System Project●Hanoi City Metro Rail System
Project, etc.

Indonesia
Population(10,000 persons)Real GDP growth rate
Total nominal GDP(billions of US$)27,870*5.3%
1,319.1

Nominal per capita GDP(dollars)

4,784

Construction Investment(Production Volume)(100 Million Dollars)

1,238.3

Main projects●Relocation of Indonesiaʼs capital toEast Kalimantan Province●West Java Patimban Port development project●Jakarta Mass Rapid Transit: Extensionof the North-South Line and construction of the new East-West Line●Jakarta Sewerage System project●East Java non-ferrous metal reﬁning
plant construction●Construction of the Trans-Sumatra Toll Road, etc.

Malaysia

Philippines

Economic Growth Rate Outlook for Major Developed and Emerging Nations (Real GDP/Annual Percent Change)（％）
12

141,175

VietnamMain projects●Metro Manila subway andnorth-south commuter railway●Davao City Bypass Construction Project●Flood risk protection project inCavite● Metro Manila seismic improvement, etc.

Population(10,000 persons)

3,301

Real GDP growth rate

8.7%

Total nominal GDP(billions of US$)

406.3

Nominal per capita GDP(dollars)

12,364

Construction Investment(Production Volume)(100 Million Dollars)

134.0

Main projects●Construction of roads in Sabah
and Sarawak●Kuala Lumpur City MRT and LRT●East Coast Rail Line (ECRL)●Komtar-Bayan Lepas Light RailTransit (LRT) project based on the
Penang Transport Master Plan, Pan
Island Link (PIL), Penang South
Reclamation (PSR), etc.

Australia
Population(10,000 persons)

2,627

Real GDP growth rate

3.7%

Total nominal GDP(billions of US$)1,675.4

Nominal per capita GDP(dollars)

52,265Construction Investment(Production Volume)(100 Million Dollars)

1，
188.1

Main projects●Sydney Metro City
●Inland freight rail (Melbourne to
Brisbane)●Western Sydney Airport andsurrounding city development●Expansion of Snowy Hydroelectric Power Plant, etc.

*The population ﬁgure for Indonesia is a 2023 estimate.
*The population ﬁgure for the Philippines is the population as of 2020.
Sources: Prepared based on Japan External Trade Organization (JETRO)
materials, Research Institute of Construction and Economy (RICE)
materials, and ASEAN at a Glance̶ASEAN Basic Economic Statistics
Data, Asia and Oceania Bureau, Regional Policy Division, Ministry ofForeign Aﬀairs (December 2023)

Source : Prepared based on the IMF World Economic Outlook (January 2024)

32 Kanamoto 2024

Kanamoto 2024 33

Sustainability Section（ESG Initiatives ）FeatureOptimize Internal Operational Processes

Internal

Sustainability Section（ E S G I n i t i a t i v e s ）Improving and Promoting Proﬁtability throughthe Optimization of Internal Operational Processes

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

Environment

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.

We engage in highly eﬀective
environmental conservation

activities uniﬁed as the Kanamoto
Group to ﬁnd harmony with theenvironment.

Information System Enhancements to Boost Operational Eﬃciency
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.

SocialGovernanceWe strive to enhance corporate

We advocate fair and honest practices

value by promoting corporate

with society and our stakeholders andgovernance and practices thatprioritize human resource

strengthen compliance.

development as the driving force
to sustainable growth.

CONTENTS
34 Kanamoto 2024

36

ESG Management

40

TCFD Initiatives

44

Governance

38

Environmental Activities

42

Social Activities

50

Board of Directors

Kanamoto 2024 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 sustainablegrowth, 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 by capitalizing on the unique sharing economy traits of a rental business.

3

We will aim for sustainable andmutual prosperity by engaging infair and proper business dealings
with our partners.

2

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

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 as core
principles of Kanamoto's crisis management.

The Kanamoto Group s priority themes for ESG
Priority ThemesValuecreationFoundation supporting value creation
36 Kanamoto 2024

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 2024 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

Our environmentally friendly products

A Rental Business Contributing to Decarbonization
Japan pledged to reach carbon neutrality by 2050 in
October 2020. In April of the following year, thegovernment then set the speciﬁc goal for a 46%
reduction of CO2 emissions by 2030 compared toﬁscal 2013. In February 2023, the Cabinet approved
the Basic Policy for the Realization of GX , and policy
decisions were made on initiatives in various ﬁelds toachieve a stable supply of energy and economic
growth. Kanamoto is also highly aware of the increasing importance of environmental measures that incorporate decarbonization. Our core Group rental
business is in and of itself a sharing economy, which
contributes to decarbonization throughout all ofsociety. Even in the manufacturing industry in which
Kanamoto regularly purchases construction equipment on an annual basis, construction equipment
manufacturers are advancing the development ofmachines with superior energy-savings, such as
hybrid, ICT, and electric-drive equipment. According

to the Japan Construction Equipment Manufacturers
Association, the improvement of fuel eﬃciency in thethree major types of equipment (hydraulic excavators, wheel-type loaders, and bulldozers), and development and adoption of energy-saving equipment
including hybrid models have been estimated tohave the potential to reduce CO2 emissions toapproximately 1.6 million t-CO2 (levels of CO2 in1990) by 2030. The industry is set to reduce the
manufacturing energy consumption rate by 17% fromthe actual achievement of 2013 as a target for CO2
reductions by 2030, which has accelerated decarbonization eﬀorts throughout the manufacturingindustry. We have newly introduced a biofuel generator and made it available for rental. The introductionof this product, which uses biofuel instead of diesel
fuel, will contribute to the reduction of CO2 emissions
at construction sites and the realization of carbon
neutrality by 2050.

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 generation 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

38 Kanamoto 2024

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 to models that take advantage ofenvironmentally-friendly technologies.

Clean Energy House
Using clean energy from sunlight allows indoor power to be supplied
independently. It can generate power either oﬀ-grid (stand-alone) or
on-grid (grid-interconnected).
Solar Power Generation System Installed on the Roof of the Kyoto Branch Oﬃce

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

Kanamoto 2024 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 2024

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.

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

Overview

4°
C Scenario

2°C/1.5°C Scenario

Countermeasures

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 renewableenergyRising temperatures

Increasing costs to respond toenvironment changes on
construction sites, etc.

Large

Large

Stronger solutions utilizing ICT andother technologies

Greater severity ofnatural disasters

Potential of damage as well as rising
insurance premiums, freight costs, andother expenditures due to disasters

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

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 2024 41

Sustainability Section（ESG Initiatives ）Social Activities

Eﬀorts in Developing and Strengthening Excellent Human Resources
Who Are the Driving Force to Achieve Sustainable Growth[Active Participation of Women in the Workplace][Foreign Nationals]

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

Kanamoto has already built a proven trackTermwide range of backgrounds at local subsid-

Basic Policy for Enhancing Human Capital
1. Basic Policy

In our construction equipment rental business model, we believe that the added value we can provide to our customers is
not from the construction equipment itself, but from each and every employee. Therefore, it is important to increase the valueof human capital by thoroughly training human resources and improving their skills. The following two initiatives will serve as
fundamental principles that the additional policies listed below will realize.

(1) Engagement

The following three action guidelines are at the core of
the Group's operations.
a．Pursue innovation and mobilize every resource toenergize our company
b．Always remember Kanamoto competes for proﬁts
c．Maintain a self-directed and independent mind

Based on these guidelines, we have been working to
improve employee loyalty for many years, and aim tofurther increase this to an engagement where thecompany and employees trust each other.

(2) Diversity and Inclusion

Target 1

We will foster a sense of unity that allows us to recognize andaccept diﬀerences among employees, such as race,nationality,
gender, and age.

Measurea. Among the full-time 2,041 employees, 24 are non-Japanese, or 1.2%
b. As of June 2023, the employment rate of persons with disabilities is3.45% (the statutory employment rate is 2.3%)
c. The ratio of new graduate hires to career hires is 35.2%/64.8%.
The ratio of managers and employees was nearly equivalent to that ratio
at 34.7%/65.3%.

Target 2

Target 3

Measure2. Human Resource Development Policies
We know excellent human resources with a high level of expertise andskills are the driving force of sustainable growth. Therefore, we haveestablished the Human Resource Development Policies below.

Operation Qualiﬁed
Technician Certiﬁcations

That is why we have built systems to extract and nurture the fullpotential of each and every employee through stratiﬁed human resource
training and development programs for sales persons, engineers, andadministrators. These speciﬁc internal training programs include training
and follow-up training for new employees, sales leadership training,ﬁfth-year technical training, administrative leadership training, andadministrative step-up training by occupation, as well as new branchmanager training, block plant manager training, and oﬃce manager
training for management. In addition, Kanamoto has also adopted
external e-learning programs teaching a variety of things, such ascompliance and management skills. Kanamoto has also enhanced
support programs that encourage employees in technical ﬁelds toacquire necessary certiﬁcations. We also actively promote participation
in internal education programs focusing on on-the-job training as well as
external training programs held by various manufacturers.

(As of February 2024)

Qualiﬁcation
Repair Qualiﬁed
Technician Certiﬁcations

1.Develop human resources who embody the Kanamoto corporate
philosophy and action guidelines
2.Support employees who want to independently acquire skills andcertiﬁcations
3.Expand training programs and encourage exchange outside thecompany with the aim of nurturing diverse views and values

Qualiﬁed Repair Technicians and Licensed
Operators of Construction Equipment

Persons

Construction Equipment Repair Mechanic (Expert)

26

Construction Equipment Repair Mechanic (First Class)

304

Construction Equipment Repair Mechanic (Second Class)

610

Portable Generator Repair Mechanic

595

Automobile Repair Technician

545

Gas Welding Technician

804

Organic Solvent Work Manager

401

Hazardous Materials Handling Manager

410

Vocational Training Instructor

14

Vehicle-type Construction Equipment Operator

4,486

Mobile Crane Operator

2,115

Large-scale Equipment (Special) Operating License

551

Sling Crane Technician

960

Forklift Operator

827

Shovel Loader Operator

19

NOTE: Number of qualiﬁcations held is the cumulative total of all qualiﬁcations

3. In-house Environment Improvement Policies(1) We will create an environment where employees can work safely with good mental and physical wellbeinga. Strengthen health and safety systems
b. Maintain and improve physical and mental health・ In November 2022, we introduced a cafeteria plan for employees called Beneﬁt Station
・ In March 2023, the conventional system in which there were seven holidays for every four weeks of work
was changed to eight holidays for every four weeks of work
・ Kanamoto's Health and Productivity Management Declaration is announced in October 2023; Company isrecognized as a Certiﬁed Health & Productivity Management Outstanding Organization in March 2024

c. Anti-harassment measures

・Conducted an e-learning course on anti-harassment for all managers in February 2022, totaling approximately
220 minutes and continue to provide anti-harassment training for employees to be promoted in future as well

42 Kanamoto 2024

mid-career candidates from overseas. We
also employ several hundred people with aFive years from April 1, 2021 to March 31, 2026

iaries overseas. Our organization emphasiz-

Details

potential management candidates solely

es skills and performance to evaluate

Expand the active roles of women in the workplace and increase the numberof female managers 30%

on their character.

1. Foster a career path for women into sales and actively hire women as managers ofsales blocks and branches.

[Mid-career Candidates]

2. Strengthen recruitment of women into sales and technical roles and encouragecommon internal gatherings and comprehensive training

Kanamoto

3. Expand administrative leadership training and upper management training to create career
paths for women

Measurerecord of actively hiring new graduates andBuild a workplace where every employee can work over the long term with a sense ofsatisfaction and improve the rate employees take annual paid leave 30%
1. Continue no overtime days to help facilitate work-life balance
2. Raise awareness about childcare and nursing care programs to help build a system
of mutual understanding and cooperation in the workplace
Strive to cultivate an image of career and employment in local children and students

hasalwaysactively

hired

mid-career candidates, emphasizing skills
and performance to evaluate 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-careerhires.

1. Create opportunities for employees and business partners to interact with children inlocal communities through various local events
2. Provide student internships and other educational opportunities and work tours
through partnerships with schools

Initiatives to Strengthen Health and Safety Systems
One Initiative Kanamoto is strengthening is safety training. We have put in place systems that work to prevent
accidents around the Safety and Health Oﬃce led by the president. This oﬃce regularly conducts in-house seminars
and audits and works to raise health and safety awareness at all branches. Our eﬀorts to strengthen health andsafety systems and eradicate occupational accidents have proven successful. As many as 31 branches in Kanamoto
are accident-free over the last 20 years.

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. We have also put inplace systems to consistently communicate withstakeholders by switching ﬁnancial results brieﬁngs
and question-and-answer sessions to online.

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 2024 43

Sustainability Section（ESG Initiatives ）GovernanceKanamoto Group Corporate GovernanceCorporate Governance Structure(As of February 1, 2024)

Overview and Logic Behind Kanamoto Corporate Governance

Basic Approach to Corporate Governancemaintain 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.

The 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

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 ofcorporate 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 composed 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.

Kanamoto Corporate Governance Structure2

Pursue innovation andAlways remember

mobilize every resource

to energize our company
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.

Kanamoto competes for
proﬁtsThe product and service oﬀeringsof a company strive to accomplish many things from contributing to society and paying taxes toensuring 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).

3

General Meeting of the Shareholders
Election and dismissal

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.

(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

１

Internal 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 2024

Kanamoto 2024 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 59th General Meeting ofshareholders held on January 25, 2024 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 ofRemuneration and Other Compensation, and Eligible Number of Oﬃcers

Tatsuo Kanamoto
Kazunori Hashiguchi
Akira Sannomiya

OﬃcerClassiﬁcation

Shun Hirose

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

Hideaki Yamashita

Outside Corporate Oﬃcers

Jun Watanabe

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.

Total
Remuneration
and Other
Compensation(Millions of Yen)

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

Performancebased
Compensation

Retirement
Beneﬁts

110

110

−

−

14

9

25

25

−

−

−

2

10

10

−

−

−

7

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

Eiji Arita

Material Salaries Paid to Corporate Oﬃcers Serving Concurrently as Employees

Motoki Yonekawa
Ayako Tabata
Tetsuya Okawa

Numberof EligibleOﬃcers(Persons)

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

Total (Millions of Yen)

Number of Eligible Oﬃcers (Persons)Details

94

7

Amount paid as employee salaries

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

46 Kanamoto 2024

Kanamoto 2024 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
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.

Other Corporate Governance Matters
Kanamoto Internal Control System
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.

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.

Basic Approach and Current Measures for the Exclusion of Antisocial Forces
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.

Kanamoto Group Compliance Structure
Board of Directors

Board of Corporate Auditors

President and Chief Executive Oﬃcer
Appointment

Person in charge of compliance〈At each branch, department, Group company〉• 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

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 2024

Kanamoto 2024 49

Sustainability Section（ESG Initiatives ）Board of Directors （As of April 1, 2024）
Directors(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.

Kanchu Kanamoto

Tetsuo Kanamoto*

Tatsuo Kanamoto*Kazunori Hashiguchi*

Chairman of the Board andRepresentative Director

President and CEO
Executive Division Manager,
Business Coordination
Headquarters

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, Construction Equipment
Rental Division
Division Manager, Customer Speciﬁc
Equipment 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

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

Tetsuya Okawa

Auditors

Corporate Oﬃcers

Hiroshi Kumagai

Satoru Toiya

Nobuyuki Sato

Hideki Nakaya

Seiichi Tanaka

Mitsuo Watanabe

Takashi Onoda

Keiji Yamane

Toru Ito

Yasuhito Fujiwara

Division Manager,
Information System
Division

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

Division Manager,
Corporate Planning
Division

General Manager,
Internal Control and
Auditing Oﬃce

President and CEONISHIKEN.CO., LTD.

President and CEO
Unite Co., Ltd.

Division Manager,
Administration
Division
General Manager,
Secretary Oﬃce

Regional Manager,
Construction Equipment
Rental Division Kyushu
RegionDivision Manager,
Specialized Equipment
Engineering Division

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

General Manager,
Aﬃliated Business
Oﬃce

50 Kanamoto 2024

Kanamoto 2024 51

Facts and Data

Report of Operating Results and Financial Position for the 59th Business Period(November 1, 2022 ‒ October 31, 2023)

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

19,393（10.2%）

Summary of consolidated ﬁscal year operating results

Summary of consolidated operating results by business segment

During the ﬁscal year under review, Japan s economy showedsigns of a gradual recovery due to the normalization of
economic activities accompanying the easing of regulations
that were implemented in response to COVID-19. However,
the outlook remained uncertain due to rising raw material
prices caused by unstable international conditions as well as
due to global monetary tightening, ﬂuctuations in ﬁnancial andcapital markets and other factors.
In the construction industry in which the Group is involved,
construction investment was relatively steady due to a
gradual recovery of private sector construction investment inaddition to stable public sector investment. However, in
addition to concerns about delays in equipment supply due torising construction costs and semiconductor supply shortages,
the situation still requires monitoring mainly regarding
restrained capital investment due to an economic recession.
In such circumstances, in order to achieve the goals of its
Medium-Term Corporate Management Plan Creative 60(FY2020-2024), the Group promoted regional strategies toenhance proﬁt margins and maximize synergistic eﬀects by
eﬃciently using management resources, and also promoted
reorganizing the organizational structure and strengthening
collaboration between departments, strengthened the asset
management system in order to improve utilization rates andoptimize the rental unit price, advanced its execution andmanagement capabilities, and worked to expand the stableearnings foundation.
Consequently, in the ﬁscal year ended October 31, 2023, theGroup reported net sales of ¥197,481 million, an increase of
5.0% year on year. On the earnings front, partly due toinvestment in human resources in preparation for the future in
addition to increases in depreciation and selling, general andadministrative expenses caused by an absorption-typemerger within the Group, operating proﬁt was ¥11,958
million, a decrease of 9.6% year on year, ordinary proﬁt was¥12,488 million, a decrease of 9.4% year on year, and proﬁt
attributable to owners of parent was ¥6,721 million, adecrease of 19.5% year on year.

Business related to the Construction Equipment Rental Division
In the construction-related business, which is Kanamoto s
core business, although there were diﬀerences by region,
the strength of rental demand for construction equipment
has continued to return due to the progress of various
types of large-scale projects, such as the construction ofsemiconductor plants in Hokkaido and Kyushu, and security-related construction in addition to the continuation ofredevelopment work in urban areas, extension projects forbullet trains and renewable energy-related work.
In addition, in order to strengthen its response to various
construction projects, the Group sought to make more
eﬃcient use of its assets and worked to resolve the issue of
stable supply of rental equipment in response to rising
construction demand. It also promoted technologicaldevelopment and business alliances to realize digitaltransformation at construction sites and reduction ofenvironmental impact.
As a result, sales by region in this business were up 1.1%
year on year in the Hokkaido Region, up 8.4% in the Tohoku
Region, up 5.0% in the Kanto & Koushinetsu Region, up
1.2% in the Nishi-nihon Region, and up 8.7% in the Kyushu& Okinawa Region.
Used construction equipment sales increased 5.0% year on
year, as Kanamoto proceeded with sales in accordancewith the plan at the beginning of the term in order tomaintain an appropriate asset mix while carrying out theextension of the rental equipment operation period.
Reﬂecting these factors, the Group posted net sales in theconstruction-related businesses of ¥178,087 million, an
increase of 4.5% year on year, and operating proﬁt of¥10,309 million, a decrease of 10.4% year on year.

Consolidated Operating Results
Fiscal year ended
October 31, 2022
Net sales

Other businesses
In the Group s other businesses, net sales were ¥19,393
million, an increase of 10.2% year on year, and operating
proﬁt was ¥1,144 million, a decrease of 7.1% year on year,
as the steel, information, and welfare-related businesses
performed as planned.

Divisional Sales (Consolidated)
Fiscal year ended
October 31, 2022

Fiscal year ended
October 31, 2023（
188,028（ ー ） 197,481

5.0）Construction equipment
rental business

Operating proﬁt

13,229（ - 9.5）

11,958（ - 9.6）

Other businesses

Ordinary proﬁt

13,780（ - 10.5）

12,488（ - 9.4）

Total

8,345（ - 6.3）

6,721
（ - 19.5）

Proﬁt attributable toowners of parent

Net income per share ￥ 224.64￥ 185.40(Millions of yen; % change from prior year)

52 Kanamoto 2024

9.8%

Consolidated Sales and Sales Ratio by Segment

Fiscal year ended
October 31, 2023

170,433

178,087（ 4.5）

17,594

19,393（10.2）

188,028

197,481（ 5.0）(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.

9.4%

FY2023

17,594

9.7%

Net sales

197,481（5.0％）FY2022

18,395（0.9%）

Net sales

188,02890.2%

FY2021

Net sales

189,416（5.8％）

90.3%

171,020（6.3%）

178,087（4.5%）

90.6%

170,433

Construction Equipment Rental Business

Other Businesses

Forecast for the 60th ﬁscal year (ending October 31, 2024)
Regarding the outlook for the 60th term (ﬁscal year ending October2024) , while public sector investment is expected to remain steady andprivate sector construction investment is also expected to continue its
recovery trend, the situation needs to be continuously monitored due tothe impact of global monetary tightening and geopolitical risks as wellas due to concerns that rising construction costs and other factors will
dampen the recovery in demand. In addition, equipment procurement
costs and maintenance costs continue to increase due to soaring
material prices, crude oil prices, etc., and challenging conditions are
expected to remain in the business environment.
In such circumstances, to achieve the goals of its Medium-Term
Corporate Management Plan Creative 60 (FY2020-2024), the Groupwill focus on eﬀective asset investment and strengthening of the
management system while optimizing the rental unit price using thesystem, and strive to continue measures for enhancing utilization rates,

based on the promotion of three key measures: expansion of domestic
bases for operations, overseas expansion, and optimization of internal
operations. Moreover, in addition to developing and introducing
technology that can be applied to labor-saving, eﬃciency and safetymeasures at sites, environmental measures, etc., the Group will work toprovide high-quality services and increase added value by actively
engaging in business alliances.
Through the above measures, for the ﬁscal year ending October 31,
2024, the Group expects net sales of ¥205.3 billion, a growth of 4.0%
year on year, and on the earnings front, it expects operating proﬁt of¥14.1 billion, a growth of 17.9%, ordinary proﬁt of ¥14.3 billion, agrowth of 14.5%, and proﬁt attributable to owners of parent of ¥8.3
billion, a growth of 23.5%, partly due to investment in human resourcesin preparation for the future in addition to eﬀective growth investment
based on the business environment.

Projected Operating Results for the 60th ﬁscal year (ending October 31, 2024)
Consolidated full-year projection
Net sales

205,300（ 4.0）

Operating proﬁt

14,100（17.9）

Ordinary proﬁt

14,300（14.5）

Consolidated：Proﬁt attributable to owners of parent
Net income per share*Purchase of treasury shares was resolved during the Board of Directors meeting on December 8, 2023.
Net income per share in the forecast of consolidated business results for the 60th term (ﬁscal year
ended October 31, 2024) takes in account eﬀects of the purchase of treasury shares.

8,300（23.5）￥ 234.34(Millions of yen; % change from prior year)

Kanamoto 2024 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, 2023)(As of October 31, 2022)

Prior consolidated
ﬁscal year

Current consolidated
ﬁscal year

Millions of yen

Millions of yen

Millions of yen

Millions of yen¥ 33,714¥ 36,077

980

900(As of October 31, 2022)

Liabilities

AssetsCurrent liabilities

Current assets¥ 47,565¥ 45,611

Notes and accounts payable - trade

Notes and accounts receivable - trade, and contract assets

38,452

41,048

Short-term borrowings

Electronically recorded monetary claims - operating

8,025

11,474Current portion of long-term borrowings

13,913

14,600

Merchandise and ﬁnished goods

1,729

1,442

Lease liabilities

1,444

1,645

Raw materials and supplies

1,432

1,574

Income taxes payable

1,957

2,657

Construction machine parts

17,047

15,962

Provision for bonuses

1,579

1,676

Other

4,098

3,453

Accounts payable - other

24,85326,075

Allowance for doubtful accounts

(284)

(269)

Other

4,022

3,992

118,066

120,298

Total current liabilities

82,46587,624Long-term borrowings

34,65935,796

Cash and deposits

Total current assets
Non-current assets

Non-current liabilities

Property, plant and equipment
282,605

308,318

Lease liabilities

3,179

3,626

Accumulated depreciation(181,989)(197,632)

Long-term accounts payable - other41,12142,324

Rental equipment, net

100,616

110,685

Retirement beneﬁt liability

374

354

Buildings and structures

44,70947,935

Asset retirement obligations

657

686

Accumulated depreciation(26,128)(27,522)

Deferred tax liabilities

2,095

2,288

Buildings and structures, net

18,581

20,413

Other

154

60

Machinery, equipment and vehicles

10,08810,550Total non-current liabilities

Accumulated depreciation(8,511)(8,798)

Machinery, equipment and vehicles, net

1,576

1,752

38,68839,511

Rental equipment

Land

Total liabilities

82,242

85,139164,708

172,763

4,570

4,091

Accumulated depreciation(2,305)(2,476)

Other, net

2,265

1,614

161,728

173,977

Share capital

17,82917,829Goodwill

3,810

3,163

Capital surplus

19,332

19,432Customer relationship

1,395

1,244

Retained earnings

94,39997,842

Other

1,511

1,369

Treasury shares(3,945)(5,906)

Total intangible assets

6,717

5,778

127,616

129,198

Other

Total property, plant and equipment
Intangible assets

Investments and other assets

Net assets
Shareholders equity

Total shareholders equity

9,699

10,637

Valuation diﬀerence on available-for-sale securities

2,181

2,983

Deferred tax assets

2,370

2,013

Deferred gains or losses on hedges−0Long-term loans receivable

5,213

1,702

Foreign currency translation adjustment

2,198

2,343

Other

2,081

2,508

Remeasurements of deﬁned beneﬁt plans

(37)

(30)

Allowance for doubtful accounts

(556)

(476)

Total accumulated other comprehensive income

4,342

5,296

Total investments and other assets

18,80816,386

Total non-current assets

187,253

196,141¥ 305,320¥ 316,440

Total assets

54 Kanamoto 2024

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

8,652

9,181

140,611

143,677¥ 305,320¥ 316,440

Current consolidated ﬁscal year

Millions of yen

Millions of yen¥ 188,028
132,196
55,83142,602
13,229¥ 197,481
140,630
56,85044,892
11,958

62
180
35
77
77
262
40
349
1,086

70
211
69
77
57
111
83
316
998

102
38
62
122
19
190
536
13,780

127
39
73
−
−
228
468
12,488

19
−
6
34
−
135
196

57
221
0
−
7
−
287

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

195
467
6
−
668
12,106
4,480
184
4,664
7,441
720
¥ 6,721Net sales
Cost of sales
Gross proﬁt
Selling, general and administrative expenses
Operating proﬁt
Non-operating income
Interest income
Dividend income
Insurance claim income
Rental income
Temporary transfer charges income
Foreign exchange gains
Reversal of allowance for doubtful accounts
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of leases
Waste disposal costs
Compensation for damage
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary proﬁt
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates
Gain on revision of retirement beneﬁt plan
Gain on receipt of donated non-current assets
Gain on extinguishment of tie-in shares
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on sale and retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries and associates
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(From November 1, 2022 to October 31, 2023)

Consolidated Statements of Comprehensive Income
Prior consolidated ﬁscal year

Accumulated other comprehensive income

Investment securities

Prior consolidated ﬁscal year

(From November 1, 2021 to October 31, 2022)(As of October 31, 2023)

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, 2021 to October 31, 2022)(From November 1, 2022 to October 31, 2023)

Millions of yen

Millions of yen¥ 9,056¥ 7,441

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

814
0
144
9
968
8,410

9,957
¥ 718

7,675
¥ 734

Kanamoto 2024 55

Facts and Data

Consolidated Financial Statements
Consolidated Statements of Changes in Equity (From November 1, 2021 to October 31, 2023)

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¥ 19,326¥ 89,048¥ (1,978)¥ 124,226

Cumulative eﬀects of changes in accounting policies
Restated balance(0)17,82919,326(0)

89,048(1,978)124,226

Changes during period
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

Restricted stock compensation

0

5

Purchase of treasury shares(2,000)(2,000)33

33

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

−

6

5,350

(1,967)

3,389

17,82919,332

94,399(3,945)

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

Changes during period
Dividends of surplus(2,739)(2,739)Proﬁt attributable to owners of parent

6,721

6,721

Change in scope of consolidation

(538)

(538)

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

98

98

Purchase of treasury shares

Restricted stock compensation

0

Balance at end of period

Balance at beginning of period

(60)

2,729

(5,645)(5,623)

Proceeds from sale of shares of subsidiaries and associates

22

16

Loss (gain) on sale of investment securities

−

(221)

(5,761)(793)

Loss (gain) on valuation of investment securities

4

6

Proceeds from collection of loans receivable

583

176

Collection of long-term accounts receivable - other

126

―

0

(183)

(11,331)(6,699)

Redemption of bonds

(24)

―

Net increase (decrease) in short-term borrowings

20

(80)

Proceeds from long-term borrowings

15,894

14,205

Repayments of long-term borrowings(14,684)(15,511)

Repayments of installment payables(25,686)(26,185)

Repayments of lease liabilities(1,397)(1,576)

Purchase of treasury shares(2,000)(1,999)Dividends paid

(2,993)(2,739)Purchase of rental equipment

Loan advances

662

Interest expenses

102

127

Foreign exchange losses (gains)

(238)

(104)

Decrease (increase) in trade receivables andcontract assets

520(5,456)

Decrease (increase) in inventories

(15)

223

(3,736)

2,017

Dividends paid to non-controlling interests

(20)

(22)

Purchase of shares of subsidiaries not
resulting in change in scope of consolidation

−

(84)

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

Eﬀect of exchange rate change on cash and cash equivalents

276

48

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

Cash and cash equivalents at beginning of period

55,55747,047

279

−

−

731

47,04745,093

33
692

2,304

(67)

(0)

1,657

23

1,612

692

5,694

2,181

−

2,198

(37)

4,342

8,652

140,611¥ 2,181−¥ 2,198¥ (37)¥ 4,342¥ 8,652¥ 140,611

Changes during period
Dividends of surplus−(2,739)Proﬁt attributable to owners of parent

−

6,721

Change in scope of consolidation

−

(538)

−

98

Purchase of treasury shares−(1,999)Restricted stock compensation−

40

56 Kanamoto 2024

(742)

598

134,917−

Balance at end of period(815)

Assets buy on the installment plan purchase
payment interest for rentals

7,960

Restricted stock compensation

Total changes during period

Purchase of shares of subsidiaries

(769)

(281)

5

Net changes in items other than shareholders equity(1,059)Purchase of construction equipment and materials(243)(2,000)Change in ownership interest of parent due totransactions with non-controlling interests(331)

Interest and dividend income−

Balance at beginning of period

(471)

(6)

−

Balance at end of period

Purchase of intangible assets24¥ 134,917

Purchase of treasury shares

Total changes during period

80

1,217

Increase (decrease) in retirement beneﬁt liability¥ 7,960

8,345

1,612

35

775

65

−

23

Proceeds from sale of property, plant and equipment

Cost transfer resulting from sale of rental equipment

14

Total net
assetsProﬁt attributable to owners of parent

1,657(5,254)409

Increase (decrease) in provision for bonuses

Non-controllinginterests(2,994)(0)(4,793)

202

(100)

−

(67)

Purchase of property, plant and equipment

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

45

Dividends of surplus

Net changes in items other than shareholders equity

358

638

Increase (decrease) in allowance for doubtful accounts

Changes during period

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

25

615

(0)

(0)
541

Proceeds from sale of investment securities

Amortization of goodwill(6)¥ 129,198

0(24)

Loss (gain) on sale of shares of subsidiaries and associates¥ (5,906)

2,249

(301)

195

−

Cumulative eﬀects of changes in accounting policies
Restated balance

Purchase of investment securities−

Impairment losses(135)¥ 97,842¥ 2,729

747

34,252

Loss (gain) on extinguishment of tie-in shares¥ 19,432¥ (60)

741

31,912−¥ 17,829¥ 541

Proceeds from withdrawal of time deposits

Depreciation

174

1,582

0

(747)

12,106

Loss on valuation of shares of subsidiaries and associates(1,960)¥ 2,249(722)

13,57440

3,443

Foreign
Total accumulated
Remeasurements
currency
otherof deﬁned
translation
comprehensive
beneﬁt plansadjustment
incomePayments into time deposits

Proﬁt before income taxes

39

99

Valuation
Deferred
diﬀerence on
gains oravailable-for-sale losses on
securities
hedgesCash ﬂows from investing activities(1,999)−

Accumulated other comprehensive income

Cash ﬂows from operating activities（Millions of yen）

Fiscal year Fiscal year
ended
ended
October 31, October 31,
2022
2023

(1,999)Net changes in items other than shareholders equity
Total changes during period（Millions of yen）

Fiscal year Fiscal year
ended
ended
October 31, October 31,
2022
2023

802

0

144

7

953

528

1,482

802

0

144

7

953

528

3,065

¥ 2,9830¥ 2,343¥ (30)¥ 5,296¥ 9,181¥ 143,677

Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other

2,105

2,454

Other, net(1,280)625

Subtotal

38,60142,147

Interest and dividends received

245

278

Interest paid

(704)

(790)

Income taxes paid

(4,985)(3,674)

Net cash provided by (used in) operating activities

33,15837,960

Other, net
Net cash provided by (used in) investing activities

Cash ﬂows from ﬁnancing activities

Increase in cash and cash equivalents resulting
from merger with unconsolidated subsidiaries
Increase in cash and cash equivalents resulting
from inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

Kanamoto 2024 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 543 locations in Japan and 566 locations with overseas combined.
KANAMOTO & JP NELSONEQUIPMENT (M) SDN. BHD.

MADICA 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 from

Kanamoto 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.

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
measure of the Kanamoto to penetrate the massive Chinese

Assist Co., Ltd.

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.

Kanatech Co., Ltd.

PORTER GROUP NOMINEESPTY LTD

SIAM KANAMOTO
CO., LTD.

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

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

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

KG FlowtechnoCo., Ltd.
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.
20 branches

SOOKI Co., Ltd.
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

Domestic

Hokkaido

83

26

0

0

0

109

Tohoku

58

33

0

0

2

93

Kanto

43

35

16

1

8

103

Chubu

23

9

5

3

2

42

Kinki

9

25

1

1

11

47

Chugoku

4

15

0

0

0

19

Shikoku

4

2

0

0

0

6

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

Kyushu

4

104

0

0

4

112

Okinawa

0

0

0

0

12

12

Overseas

China

0

3

1

0

0

4

Indonesia

0

0

1

0

0

1

Thailand

0

0

3

0

0

3

Philippines

0

0

0

1

0

1

Vietnam

0

0

3

0

0

3

Malaysia

0

0

1

0

0

1

Australia
Total

0

10

0

0

0

10

228

262

31

6

39

566

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

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

Total

PORTER EXCAVATIONS
PTY.LTD.

Engaged in the rental and sale of construction
equipment in Malaysia.
1 branchEngaged in the rental and sale of construction
equipment in Australia.
5 branches

SOOKI HOLDINGS
Co., Ltd.

Consolidated Subsidiaries Non-consolidated Subsidiaries Aﬃliated Companies Alliance Companies

Engaged in the civil engineering and publicconstruction in Australia.
1 branchEngaged in the rental and sale of furniture,
ﬁxtures and safety products.
21 branches

Kanki Co., Ltd.

Kanamoto and Group company operating branches in Japan (As of February 1, 2024)
Kanamoto Co., Ltd.

228 branches

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

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

KANAMOTO
AUSTRALIA
HOLDINGS PTY LTD

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

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 branch

TOYU ENGINEERING
CO., LTD.

Engaged in the construction of gas facilities inAustralia.
1 branchEngaged in the rental and sale of specialized
equipment for tunneling works.
3 branches

KANAMOTO (CHINA)INVESTMENT CO., LTD.

MEIGI ENGINEERING
CO.,LTD.

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

Engaged in the design, manufacture, rental andsale of shotcrete plants.
２ branches

Carewell AnshinCo., Ltd.
Engaged in the rental and sale of nursing careproducts and nursing care services.
16 branches

Komatsu Doboku
Tsusho Co., Ltd.
Engaged in the rental and sale of construction
equipment.
4 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 3D measurement operations, 3D data analysis
services, and the sale and rental of 3D scanners. 1 branch

KNK
MACHINERY & EQUIPMENTCORPORATIONEngaged in the rental and sale of construction
equipment in the Republic of the Philippines. 1 branch

SIC Agora eX
Corporation
Engaged in the rental and sale of construction equipment
and environmental plant equipment.
4 branches

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

Machida Kikou
Co., Ltd.
Engaged in the rental and sale of construction
equipment.
12 branches

SHANGHAI KG
MACHINERY CO., LTD.
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

KANAMOTO FECON HASSYUCONSTRUCTION EQUIPMENTRENTAL JSC

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

Consolidated subsidiaries indicated in blue, non-consolidated subsidiaries indicated in red, aﬃliated companies indicated in green,
and alliance companies indicated in purple.

58 Kanamoto 2024

Kanamoto 2024 59

Facts and Data

Corporate Proﬁle (As of October 31, 2023)

Organization Chart (As of April 1, 2024)
General Meeting of the Shareholders
Corporate Auditors

Company Name

Board of Directors

Kanamoto Co.,Ltd.
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

Common Shares Issued and Outstanding

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 NISHI-NIPPON CITY BANK, LTD.
The Aomori Bank, Ltd.

The Bank of Fukuoka, Ltd.
Others60 Kanamoto 2024

Safety and Health Oﬃce

Denyo Co., Ltd,Business Development Oﬃce

HOKUETSU INDUSTRIES CO., LTD.

DX Strategy Oﬃce
Operations Control Headquarters

Denyo Co., Ltd.

Fudo Tetra Corporation

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

Administration Division
Administration Section

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

Credit Management Division
Credit Management Section, Credit Analysis Section

Information System Division
System Support Section, System Solutions Section

Property Development and Management Division
Bill Collection Center
Sapporo, Tokyo, Osaka

AICHI CORPORATIONBusiness Coordination Headquarters

Quality Assurance Oﬃce

HANWA CO., LTD.

Aﬃliated Business Oﬃce

HAZAMA ANDO CORPORATION
Hino Motors, Ltd.

Isuzu Motors Limited

Consolidated: 3,910 (Excluding directors and temporary or part-time workers)

Legal Oﬃce

North Paciﬁc Bank, Ltd.

Consolidated Net Sales

Non-consolidated: 2,020 (Excluding directors and temporary or part-time workers)

Internal Control and Auditing Oﬃce

Tokio Marine & Nichido Fire Insurance Co., Ltd.

Hitachi Construction Machinery Japan Co., Ltd.

Number of Employees

Secretary Oﬃce
Sapporo, Tokyo

The Hokkaido Bank, Ltd.

38,742 thousand¥197,481 million (Fiscal year ended October 31, 2023)

Public Relations Oﬃce

SMBC Nikko Securities Inc.

Primary Customers (Alphabetic order)

9678

Human Resources Section, Welfare Section

Kanamoto Capital Company

Listing Exchanges

Stock CodePresident and CEO

ORIX Corporation

Others

Sapporo Securities Exchange

Human Resources Division

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

Tokyo Stock Exchange, Prime Market

Corporate Planning Division

New Products Oﬃce
Internet of Things Promotion Section

HOKUETSU INDUSTRIES CO., LTD.

Used Products Sales Division

ITOCHU TC CONSTRUCTION MACHINERY CO., LTD.
KAJIMA CORPORATION

Construction Equipment Rental Division

Komatsu Customer Support Japan Ltd.

Steel Sales Division

Kumagai Gumi Co., Ltd.

MAEDA CORPORATION

Information Products Division

Mitsubishi Fuso Truck and Bus Corporation

Overseas Business Division

MITSUI & CO., LTD

Nippon Caterpillar LLC

National Sales Division
National Sales Section

Customer Speciﬁc Equipment Sales Division
Ground Improvement Section, Foundation Equipment Section,
Special Demand Section

Specialized Equipment Engineering Division
Water Treatment Machinery Section, Tunnel Machinery Section,
Construction ICT Promotion Section, Industrial Plant Machinery Section

NISHIMATSU CORPORATION CO., LTD.
OBAYASHI CORPORATION

Hokkaido Region

Okumura Corporation

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

PENTA-OCEAN CONSTRUCTION CO., LTD.
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 2024 61

Facts and Data

Corporate History
Date

Stock Information (As of October 31, 2023)
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.

Fiscal year

From November 1 to October 31

July

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

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

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

1996

March

Listed stock on the Second Section of the Tokyo Stock Exchange

Method of public notice

June

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

1998

April

Designated to the First Section of the Tokyo Stock Exchange

1999

July

Acquired stock of Assist Co., Ltd. (now a consolidated subsidiary)

2000

October

Acquired stock of Kanatech Co., Ltd. (now a consolidated subsidiary)

2001

NovemberAcquired stock of Daiichi Kikaisangyo Co., Ltd.

2004

September

Acquired stock of Kanki Co., Ltd. (now a consolidated subsidiary)

2008

July

Acquired stock of Toyo Industry Co., Ltd. (now a consolidated subsidiary)

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

2012

June

Acquired stock of Unite Co., Ltd. (now a consolidated subsidiary)

2014

March

KG Flowtechno Co., Ltd. established Shanghai KG Machinery Co., Ltd. (now a non-consolidated subsidiary) in Shanghai, China

2015

January

PT KANAMOTO INDONESIA (now a non-consolidated subsidiary), established in Indonesia, began operations

June

Established KANAMOTO FECON HASSYU CONSTRUCTION EQUIPMENT RENTAL JSC (now a non-consolidated
subsidiary) in Vietnam through a joint investment with FECON HASSYU and began operations

July

SIAM KANAMOTO CO., LTD. (now a non-consolidated subsidiary), established in Thailand, began operations

October

KNK MACHINERY & EQUIPMENT CORPORATION (now an associated company) established in the Philippines
through a joint investment with KILTON INVESTMENTS HOLDINGS CO., INC. began operations

2016

March

Acquired stock of NISHIKEN CO., LTD. (now a consolidated subsidiary)

2017

July

Established SK ADMINISTRATION SERVICE (THAILAND) CO., LTD. (now a non-consolidated subsidiary) in Thailand

AugustAcquired stock of TOYU ENGINEERING CO., LTD. (now an associated company) and MEIGI ENGINEERING CO., LTD. (now an associated company)

December

KANAMOTO (CHINA) INVESTMENT CO., LTD. (now a consolidated subsidiary) established in Shanghai City, China started operations

February

NISHIKEN CO., LTD. acquired stock of Carewell Anshin Co., Ltd. (now a non-consolidated subsidiary)

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

November

KANAMOTO & JP NELSON EQUIPMENT (M) SDN. BHD., (now a non-consolidated subsidiary) established in Malaysia began operations

2019

September

Made Safety Ishikawa Co., Ltd. (now a non-consolidated subsidiary) a subsidiary following the stock acquisitionof Komatsu Doboku Tsusyo Co., Ltd. (now a non-consolidated subsidiary)

2020

September

Made Sooki Co., Ltd. (now a consolidated subsidiary) and Sooki Sales Co., Ltd. (now a non-consolidated subsidiary) subsidiaries following the stock acquisition of Sooki Holdings Co., Ltd. (now a consolidated subsidiary)

OctoberKanamoto Australia Holdings Pty Ltd. (now a consolidated subsidiary) established in Australia made Porter Excavations Pty Ltd. (now a consolidated subsidiary) and Porter Utilities Pty Ltd. (now a consolidated subsidiary) its subsidiaries following the stock acquisition of Madica Pty Ltd. (now a consolidated subsidiary), Porter Group Nominees Pty
Ltd. (now a consolidated subsidiary), and Porter Utilities Holdings Pty Ltd. (now a consolidated subsidiary)

March

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

April

Transitioned to Tokyo Stock Exchange Prime Market

November

NISHIKEN CO., LTD. absorbed Daiichi Kikaisangyo Co., Ltd.

2018

2022
2023

62 Kanamoto 2024

38,742,241
6,750

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

Individuals and other121,755

97,81931.45％

25.26％

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

20,781

Transfer agent
Mitsubishi UFJ Trust and Banking Corporation

5.37％

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

90,236

Mailing 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

56,59023.31％

14.61％(Note 1) Of 2,681,810 treasury stock shares, 26,818 units of shares are included
in Individuals and other .
(Note 2) 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

2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 2024
7

1

7

1

7

1

7

1

7

1

7

1

7

1

7

1

7

1

7

1

Kanamoto 2024 63