Fiscal Year Ending October 31, 2021
Second Quarter Operating Results Briefing Materials
June 7, 2021

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

TetsuoKanamoto

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

Shun Hirose

1
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Cont
ents

01

Consolidated Second Quarter Operating Results for the
Fiscal Year Ending October 31, 2021

02

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

03

Future Expansion: Creative 60

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Ltd.
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Reserved.

2

Consolidated Second Quarter Operating Results for the
Fiscal Year Ending October 31, 2021

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3

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

Net sales

Operating profit

Ordinary profit

Quarterly profit
attributable to owners ofparentEPS

Projected consolidated second quarter operating
results for the fiscal year ending October 31,
2021

95,900

8,100

8,200

4,700

￥124.33

Consolidated second quarter operating results
for the fiscal year ending October 31, 2021

95,225

8,118

8,683

4,943

￥130.75

4.2%− 12.1%− 4.0%− 7.5%－

91,414

9,239

9,046

5,344

￥138.33− 0.5%− 18.0%− 21.4%− 26.3%－91,856

11,266

11,511

7,255￥187.62% change from prior year
Consolidated second quarter operating results
for fiscal year ended October 31, 2020% change from prior year
Consolidated second quarter operating results
for fiscal year ended October 31, 2019

Net sales

Up

4.2%

Operating profit

Ordinary profit
16,00016,000Quarterly profit attributableto owners of parent and EPS

200.00100,000

16,00075,00012,00050,000

8,000

8,000

8,000

25,000

4,000

4,000

4,000

50.00

0

0

0

0

0.00

FY19

FY20

FY21

Down

FY19

FY20

12.1%

FY21

Down

12,000

FY19

FY20

4.0%

FY21

150.0012,000

Down

FY19

FY20

7.5% 100.00

FY21

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4

Consolidated Second Quarter Results by Segment
The Construction Equipment Rental Business makes up 90.9% of total sales while Other
Businesses contributed 9.1%.
Other Businesses

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

90.9%

9.1%

86,603 million yen

8,622 million yen(Up 4.3% from prior year)(Up 3.3% from prior year)

Net sales: 95,225 million yen (Up 4.2% from prior year)
5
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Changes in Consolidated Second Quarter Net Sales from
Construction Equipment Rental by Region% change from prior year by region

Hokkaido Region

Up 1.2%

Tohoku Region

Down 3.4%

Kanto & Koushinetsu Down 3.1%
RegionWest Japan Region

Up 5.4%

Kyushu & Okinawa
RegionUp 1.1%

Consolidated total net
sales of construction
equipment rentals

Up 2.0%
FY17

FY18

FY19

FY20

FY21
6

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

FY2020_2Q

FY2021_2Q

Overseas0.4%

Overseas
2.8%

Kyushu &Okinawa Region
14.6%

Hokkaido
Region20.1%

West Japan Region
14.2%

Kanto &
Koushinetsu Region
23.6%

Kyushu &Okinawa Region
14.5%
West Japan Region
14.6%

Tohoku Region
27.1%

Hokkaido
Region20.0%

Tohoku Region
25.6%

Kanto &
Koushinetsu Region
22.5%

7
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Assets Balance Sheet(Millions of yen)

FY2020_4Q

FY2021_2Q

ChangeAssetsCurrent assets

120,952

119,397−1,554

Cash and deposits

48,56352,253

3,690

Notes and accounts receivable ‐ trade41,45135,029−6,422Other current assets

30,937

32,114

1,177

Non‐current assets

179,795

181,087

1,291

Property, plant and equipment

156,171

157,567

1,395

Rental equipment

251,783

258,526

6,743−153,225−159,208−5,983

Rental equipment, net

98,55799,318760

Buildings and structures

39,804

41,903

2,098

Accumulated depreciation−23,293−24,061−768

Buildings and structures, net

16,51017,841

1,330

Other property, plant and equipment

41,10240,407−695

Intangible assets

9,332

9,190

−141

Investments and other assets

14,291

14,32837

300,748

300,485‐262 8

Accumulated depreciation

Total assets

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Liabilities and Net Assets(Millions of yen)

FY2020_4Q

FY2021_2Q

ChangeLiabilities
Current liabilities

87,606

83,191−4,414

Notes and accounts payable ‐ trade37,97533,396−4,579Accounts payable ‐ other

25,48925,186‐302

Other current liabilities

24,141

24,608467

Non‐current liabilities

86,95385,695−1,257

Long‐term loans payable

30,082

31,297

1,215

Long‐term accounts payable ‐ other

52,24649,247−2,999Other non‐current liabilities

4,623

5,149

525

174,559

168,887−5,672

117,744

121,209

3,464

Accumulated other comprehensive
income

1,346

2,750

1,404

Non‐controlling interests

7,097

7,638

540

Total net assets

126,188

131,598

5,409

Total liabilities and net assets

300,748

300,485−262 9Total liabilities
Net assets
Total shareholders’ equity

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

Cash and cash equivalents were 51,717 million yen, up
3,694 million yen compared to the previous
consolidated fiscal year.
30,000

FY2020_2Q

FY2021_2Q

Change25,00021,108Cash flow from operating
activities

21,10820,084−1,024

Cash flow from investing
activities− 1,751− 2,353− 601

20,08420,00015,00010,000Cash flow from financing
activities− 16,522− 14,436

2,085

Net increase (decrease) incash and cash equivalents

2,847

3,694

847

5,000
0
‐5,000Cash and cash
equivalents at beginningof period

43,511

48,023

4,511

Cash and cash
equivalents carried overat end of second quarter

46,35851,717

5,359‐1,751‐2,353‐10,000‐15,000‐20,000‐14,436‐16,522
FY2020_2Q

FY2021_2Q

10
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Main Comparative Index: EBITDA+ (Consolidated)
EBITDA+ is one major indicator for the amount of new capital investments in rental equipment and other assets.
(Millions of yen)

60,00040,00020,0000FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019_2Q

FY2019FY2020_2Q

FY2020

FY2021_2Q

FY2021/E

Operating profit

6,430

11,392

16,454

16,27015,134

16,665

17,59911,266

17,842

9,239

14,2508,118

15,000Depreciation

12,073

14,767

17,486

19,752

22,45824,57025,722

13,53427,705

14,38429,073

15,87730,600E B I T D A

18,503

26,15933,94036,02237,592

41,23543,32124,80045,547

23,62443,32423,99545,600Property, plant andequipment
equivalents

7,953

7,695

7,563

7,306

8,938

10,310

10,542

5,329

10,775

5,186

10,461

5,166

11,400E B I T D A +26,45633,85441,50343,32846,53051,54553,86330,12956,322

28,81053,78529,16157,000Property, plantand equipment
investment

29,806

37,61142,40037,36738,29437,674

46,992

27,45652,093

29,10051,567

20,72547,300Free cash flow

‐3,350‐3,757

‐894

5,960

8,235

13,871

6,871

2,673

4,229

‐290

2,218

8,436

9,700

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

11

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

47,73050,00045,00040,00038,937

41,524 42,264

40,272

43,113 44,126

43,085(Millions of yen)

Operating profit

46,87041,96747,660 47,565

10,0009,000

41,54739,72537,69346,09245,431 45,982

8,000

35,0007,000

30,0006,000

25,0005,000

20,0004,000

15,0003,000

10,000

2,000

5,000

1,000

0

0

FY2017
1Q

2Q

3Q

FY2018
4Q

1Q

2Q

3Q

FY2019
4Q

1Q

2Q

3Q

FY2020
4Q

1Q

2Q

3Q

FY2021
4Q

1Q

2Q

Net sales

38,937 40,272 37,693 41,524 42,264 43,085 39,725 43,113 44,126 47,730 41,967 46,870 45,431 45,982 41,547 46,092 47,660 47,565

Operatingprofit

4,490

5,503

2,104

4,568

5,370

5,624

2,421

4,183

3,913

7,352

1,963

4,612

4,266

4,973

1,418

3,592

3,981

4,136

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

13

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

100

90

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

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

14

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Overview of Construction Equipment Rental Industry
Net sales in the industry are approximately 2% to 3% of the total domestic investment in construction.
The industry has roughly 2,000 competitors in construction equipment rentals.
Kanamoto and other major wide‐area contractors make up 37% the market based on recent non‐consolidated
comparison data of each company.

Local contractors

36%

Major wide area
contractors(4 companies)

37%
Second‐tier medium‐sized contractors

27%

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

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

15

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Projected Consolidated Operating Results for the
Fiscal Year Ending October 31, 2021
The construction demand is expected to continue to show strong growth driven bydisaster recovery and restoration works, disaster prevention construction,
infrastructure renewals, and other such projects.

(Millions of yen)

Net sales

Operating profit

Ordinary profit

Profit attributable toowners of parent

190,300

15,00015,2009,000¥238.03

6.3%

5.3%

6.5%

6.3%

－

Consolidated results for fiscal year
ended October 31, 2020

179,053

14,25014,2688,466￥221.45% change from prior year

− 0.9%− 20.1%− 21.9%− 25.9%－Projected consolidated results for the
fiscal year ending October 31, 2021
% change from prior year

Net salesUp

200,000

6.3% 25,000

160,000

20,000120,000

15,000Operating profit

Ordinary profit

Up

25,00025,00020,00020,0005.3% 15,000

Up

6.5%

10,00010,00040,000

5,000

5,000

5,000

0

0

0

0

FY21/E

FY19

FY20

FY21/E

400.0015,00010,000FY20Profit attributable to ownersof parent and EPS

300.0080,000

FY19

EPS

FY19

FY20

FY21/EUp

6.3%

200.00100.00

0.00

FY19

FY20

FY21/E

16

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Dividend Policy
Year‐end dividend of 65 yen for the fiscal year ended October 31, 2020 (25 yen interim dividend)
Year‐end dividend of 70 yen for the fiscal year ending October 31, 2021 (25 yen interim dividend)(Yen)■Regular dividend ■ Bonus dividend

70

65

65

FY19

FY20 FY21/E

60
45

20

20

20

20

20

20

20

FY07

FY08

FY09

FY10

FY11

FY12

FY13

35

35

FY14

FY15

FY16

50

FY17

FY18

17
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Future Expansion: Creative 60

18

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

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

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

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

19
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Creative 60< Priority measures>

01

Expansion of the Kanamoto Domestic
Base of Operations

02

Overseas Expansion

03

Optimize Internal Operational Processes
20
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Creative 60

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

21
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Expansion of the Kanamoto Domestic Base of Operations
Gradual increase in investment after hitting bottom at 42 trillion yen in fiscal 2010 Approx.
(Trillions of yen)
62 trillion yen forecast for fiscal 2021 (down 1.7% year on year)(Expectation)(Expectation)(Forecast)

70

6.3

6.5

6.7

5.6

6.2

6.0

5.6

15.3

16.3

17.1

17.5

16.8

14.6

16.5

15.7

16.5

16.9

16.7

16.3

15.7

15.1

20.2

21.0

21.8

23.1

24.9

25.7

25.0

60
Public investment in construction

50
Private investment in residential
construction

40

Private investment in non‐residential construction

30

Private RR investment in buildings

20
10

14.2
11.0
18.4
19.0

13.0
18.0

0
Fiscal year

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

2005

2010

2015

2016

2017

2018 (Expectation)

2019 (Expectation)2020 (Forecast)

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

51.6 (‐2.4%)

41.9 (‐2.4%)

56.6 (19.3%)

58.7 (3.7%)

61.3 (4.4%)

63.4 (3.4%)

65.4 (3.1%)

63.2 (‐3.4%)

62.1 (‐1.7%)

Public investment inconstruction

19.0 (‐8.9%)

18.0 (0.3%)

20.2 (8.6%)

21.0 (3.9%)

21.8 (3.8%)

23.1 (5.9%)

24.9 (7.8%)

25.7 (3.2%)

25.0 (‐2.6%)

Private investment in residential
construction

18.4 (0.3%)

13.0 (1.1%)

15.7 (5.5%)

16.5 (4.9%)

16.9 (2.9%)

16.7 (‐1.3%)

16.3 (‐2.3%)

15.7 (‐7.5%)

15.1 (‐0.4%)

Private investment in non‐residential construction

14.2 (4.0%)

11.0 (‐10.0%)

14.6 (3.9%)

15.3 (5.0%)

16.3 (6.8%)

17.1 (4.7%)

17.5 (2.5%)

16.8 (‐3.9%)

16.5 (‐2.2%)

Private RR investment inbuildings――

6.2 (―)

6.0 (‐2.9%)

6.3 (4.5%)

6.5 (3.6%)

6.7 (2.1%)

5.6 (‐16.7%)

5.6 (0.7%)

54.7 (‐3.5%)

42.5 (‐2.8%)

53.7 (19.0%)

55.5 (3.5%)

56.7 (1.1%)

56.8 (0.1%)

57.3 (0.5%)

55.7 (‐2.9%)

54.5 (‐2.0%)

Real investment in construction

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

22

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

Linear Chuo Shinkansen
Hokkaido Shinkansen.
Geothermal Power Generation

Hokuriku Shinkansen
Large‐scale Refurbishments of Three
NEXCO Companies

Solar Power Generation

2025 Osaka Expo
Kyushu Shinkansen:
Takeo to Nagasaki

23
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Expansion of the Kanamoto Domestic Base of Operations
Major Projects Primarily Driving Business Expansion throughout Japan
2025 Osaka Expo‐related projects
Large‐scale repairs of the Tokaido‐Sanyo Shinkansen
Hokuriku Shinkansen: Kanazawa to Tsuruga

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

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

2021

2022

2023

2024

2025

2026

2027

2028

2029～50

24
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Expansion of the Kanamoto Domestic Base of Operations
Many regions suffer damage from landslides caused by earthquakes to floods and landslides
caused by local torrential rain.
September 2018

May to July 2020
Damage due to severe storms and torrential
rains between May 15 to July 31, 2020
(Yamagata, Nagano, Gifu, Shimane, Fukuoka,
Saga, Kumamoto, Oita, and Kagoshima
Prefectures)

July 2017
Northern Kyushu Floods(Asakura City in Fukuoka
Prefecture, etc.)

April 2016 Kumamoto Earthquakes

Damage caused by Typhoon
Trami

July 2018

November 2014

West Japan Floods

Nagano Kamishiro Fault Earthquake(Hakuba/Otari in the Kitaazumi
District)(Okayama, Hiroshima, and Ehime Prefectures)

September 2018
Hokkaido Eastern Iburi Earthquake(Tottori, Miyazaki, and Kagoshima
Prefectures)
July 2014
Damage caused by Typhoon Neoguri(Nagiso‐machi in the Kiso District ofNagano Prefecture and Shiba Village inthe Higashiusuki District of Miyazaki
Prefecture)

September 2017

August 2016

Damage caused by Typhoon Talim

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

October 2014
August 2014

Damage caused by
Typhoon Vongfong

Landslides caused by torrential rain

(Sumoto City/Awaji City in Hyogo
Prefecture)(Asaminami and Asakita Wards in Hiroshima City)

October 2017
Typhoon Lan(Niigata and Mie Prefectures, Kinki
Region, etc.)

October 2019
Damage caused by Typhoons Hagibis, Neoguri,

July 2019
Damage caused by the East Asian Monsoon
Season, Typhoon Sepat, and Typhoon Noru
(Nagasaki, Kagoshima, and Kumamoto Prefectures)

July 2017 Northern Kyushu Floods

June 2015

and Bualoi

Severe storms in Mie
Prefecture(Odai‐cho in the Taki District)(Iwate, Miyagi, Fukushima, Ibaraki, Tochigi, Gunma,
Saitama, Chiba, Tokyo, Kanagawa, Niigata,
Yamanashi, Nagano, and Shizuoka Prefectures)

June 2018 Osaka Earthquake
October 2014

June 2015

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

Flooding caused by severe storms
in Kumamoto Prefecture

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

September 2015
Kanto/Tohoku Torrential Rains(Amakusa City)
September 2018
Strong winds and rains due to Typhoon Hagibis,
Cimaron, and Jebi
(Awashimaura‐mura in Niigata Prefecture, and Oshika‐mura in
Nagano Prefecture, Kozagawa‐cho, Shingu City, Koya‐cho, andShirahama‐cho in Wakayama Prefecture, Toyono‐cho in Osaka
Prefecture, and Nosegawa‐mura and Kamikitayama‐mura in
Nara Prefecture)

Source: Cabinet Office website Photos: Institute of Scientific Approaches for Fire and Disaster

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

25

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Expansion of the Kanamoto Domestic Base of Operations
Kanamoto has 210 non‐consolidated sales bases throughout Japan.
The Kanamoto Group has steadily expanded its sales base to 515 locations.
Changes in the Number of Domestic Sales Bases120

End of April 2021

108
100

Obama Branch (Obama City, Fukui)

112

95
Kurashiki Branch(Kurashiki City, Okayama Prefecture)

77

80

60

43

Sapporo Small Machine Center(Sapporo City)

Kitakyushu Branch(Kitakyushu City in Fukuoka Prefecture)

45

40

17

20

13

Marumori Branch(Igu District in Miyagi Prefecture)5

Futaba Branch

0(Futaba District in Fukushima Prefecture)
Hokkaido

Tohoku

Kanto

Chubu

Kinki

Chugoku

Shikoku

KyushuOkinawa Specialized Equipment Engineering Division

Arao Machine Center(Arao City in Kumamoto Prefecture)

Sooki Holdings Co., Ltd.
(Osaka Prefecture)

26

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Expansion of the Kanamoto Domestic Base of Operations
Stronger strategic regional promotion and sales as well as share
expansion that prioritize areas without a sales presence.
October 31, 2020

West Japan
6.6%

Kyushu & Okinawa
14.8%

Hokkaido
47.0%
Tohoku27.6%

Kanto & Koushinetsu
6.1%

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

27

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

Consolidated SubsidiaryNon‐consolidated Subsidiary

Affiliate company

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

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

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

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

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

2017 TOYU ENGINEERING CO., LTD
MEIGI ENGINEERING CO., LTD.
2016 NISHIKEN CO., LTD.
2015 EIWASHOUKAI CO., LTD.

2014 SHANGHAI KG MACHINERY CO., LTD.

2014 ASAHI RENTAX CO., LTD.

2011 KANAMOTO & JP NELSONEQUIPMENT (S) PTE. LTD.

2012 UNITE CO., LTD.

2009 KANAMOTO (HK) CO., LTD.

2008 TOYO INDUSTRY CO., LTD.

KG FLOWTECHNO CO., LTD.

2007 KYUSHU KENSAN CO., LTD.
2004 KANKI CO., LTD.
2001 DAIICHI KIKAISANGYO CO., LTD.
2000 KANATECH CO., LTD.
1999 ASSIST CO., LTD.
1972 Company changes name to Kanamoto Co., Ltd.
1964 Kanamoto Shoten Co., Ltd. established28
Copyright © 2021 Kanamoto Co., Ltd. All Rights Reserved.

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

Tokyo Gaikan Expressway Project

Shinkansen Project

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

29

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

Creative 60

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

30
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Overseas Expansion
Overseas Expansion—Upgrade Overseas Strategy 2.0 (Next Generation)‐ Optimize a global portfolio
i.e.: Selection and distribution of management resources‐ Establish a Kanamoto global platform
i.e.: Configuration of a framework for overseas sites‐ Inorganic strategy: Overseas M&A initiatives‐ Lay the groundwork to raise overseas sales to 10% of total net sales

31
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Overseas Expansion

32
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Creative 60

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

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

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

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

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

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Iwasaki×kanamoto
Business Alliance to Expand ICT Construction Solutions
Total support of built‐in machine systems through the provision of excavator system as well as
ground improvement systems

Hemisphere
UniStrongJapan Excavator system

MITS method, surface layer and intermediate layer
ground improvement management systems

Broadly promote ICT construction solutions, strengthen sales and enhance services throughout Japan36
Copyright © 2021 Kanamoto Co., Ltd. All Rights Reserved.

Kanamoto Value Creation Process

Re‐investment
Value creation system

Management resources
Financial and investment capital

Value created by Kanamoto

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

Society and customer needs

Construction
Equipment Rental
Business

Human capital

Medium‐ to long‐term growth strategy

3,676 consolidated employees=> Diverse human resources with high‐level knowledge and skills

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

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

179,053 million yen

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

300,362 million yen in total assets=> Capital investments in rental assets
and other equipment prioritizing
operational efficiency and profitability

8,466 million yen=> Strengthen a high‐profit structure andachieve a stronger Kanamoto benefiting all
stakeholders

Balance

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

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

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

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

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ESG
The Kanamoto Group’s priority themes for ESG

ValuecreationFoundation supporting value creation

E

Businesses
contributing to SDGs

Environment

Environment

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

GInternal control systems

GovernanceRisk management

Corporate governanceCompliance

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

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

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

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

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

ESG
Electric Vehicle
Hybrid Car

Ultra‐low Noise Construction Equipment inCompliance with Tier 4 Emission Regulations

Four LED Hybrid Floodlight
Hybrid Truck

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

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

2. Strengthen entry into the renewable energy sector

3. Develop ICT and IoT solutions

4. Strengthen regional revitalization

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

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

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

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

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

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021/E
Net sales
OperatingprofitOrdinary
profitProfit attributableto owners ofparent68,023 68,626 69,411 63,863 70,173 71,086 86,106 110,831 125,555 133,292 144,870 158,428 168,188 180,694 179,053 190,300
4,068

4,236

2,227

137

2,648

2,905

6,430 11,392 16,454 16,270 15,134 16,665 17,599 17,842 14,250 15,000

3,788

4,416

2,028

‐222

2,083

2,239

5,932 11,073 16,078 16,164 14,405 17,193 17,925 18,277 14,268 15,200

1,742

3,035

644 ‐1,158

1,041

1,165

3,575

8,466

9,000

Net assets

38,051 39,973 38,202 36,541 37,025 37,592 41,399 56,192 65,513 71,998 81,434 91,788 102,031 121,779 126,188‐

Total assets

86,815 85,155 91,741 96,435 108,509 115,120 137,343 169,250 188,082 202,578 220,540 227,155 241,374 268,182 300,362‐

200,000

Net sales

5,809

9,299

9,557

Operating profit

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

30,000160,000

24,000120,000

18,00080,00012,00040,000

6,000

0

0

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Reference: Share price between June 2011 to June 2021

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