Fiscal Year Ending October 31, 2022
Second Quarter Operating Results Briefing Materials
June 6, 2022
Stock Code: 9678
(Tokyo Stock Exchange, Prime Market/Sapporo Securities Exchange)
President and CEO
Executive Division
Manager, Business
Coordination
Headquarters

TetsuoKanamoto

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

1
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Content

01

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

02

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

03

Future Expansion: Creative 60

2
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01

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

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

Operating profit

Ordinary profit

Quarterly profit
attributable to owners ofparent

93,715

7,098

7,457

4,540

￥121.54－−11.9％−13.5％−8.2％－

95,225

8,061

8,626

4,945

￥130.81

4.2％−12.8%

−4.6％

−7.5％

－

Net sales
Consolidated second quarter operating results
for the fiscal year ending October 31, 2022

% change from prior year
Consolidated second quarter operating results
for fiscal year ended October 31, 2021

% change from prior year

Net sales

Operating profit

EPS

Quarterly profit attributableto owners of parent and EPS

Ordinary profit
16,000200.0013.5% 12,000

150.0016,000100,000

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

FY20

FY21

FY22

Down

FY20

FY21

11.9%

FY22

Down

12,000

FY20

FY21

FY22

Down

FY20

FY21

8.2％ 100.00

FY22※The Company applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter of the fiscal year ending October 31, 2022, and the figures for the second quarter of the fiscal year ending
October 31, 2022 are figures after the application of the said accounting standard. As a result, the percentage of change for net sales from the same period of the previous year is not shown.
In the previous fiscal year, the Company finalized the provisional accounting treatment for business combinations, and the figures for the second quarter of the fiscal year ended October 31, 2021 reflect the finalized content of the provisional accounting treatment.

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Consolidated Second Quarter Results by Segment
The Construction Equipment Rental Business makes up 91.1% of total sales while Other
Businesses contributed 8.9%.
Other Businesses

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

91.1%

8.9%

¥85,417million yen¥8,297million yen

Operating Profit¥6,293 million yen

Operating Profit¥559 million yen

Net sales: ¥93,715 million yen
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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 5.8%

Tohoku Region

Down 9.6%

Kanto & Koushinetsu
RegionUp 3.0%West Japan Region

Down 1.3%

Kyushu & Okinawa
RegionUp 3.6%

Consolidated total net
sales of construction
equipment rentals

Up 0.6%
FY18

FY19

FY20

FY21

FY22
6

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

FY2021_2Q

FY2022_2Q

Overseas
2.8％

Overseas
3.7％

Kyushu &Okinawa Region
14.5％

Hokkaido
Region20.0％West Japan Region
14.6％
Kanto &
Koushinetsu Region
22.5％

Kyushu &Okinawa Region
15.0％

Hokkaido
Region21.0％

West Japan Region
14.3％
Tohoku Region
25.6％

Tohoku Region
23.0％
Kanto &
Koushinetsu Region
23.0％

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Assets Balance Sheet(Millions of yen)

FY2021_4Q

FY2022_2Q

ChangeAssetsCurrent assets

126,751

123,807−2,943

Notes and accounts receivable - trade39,305－－－35,019－Other current assets

87,44588,788

1,343

Non-current assets

177,003

181,002

3,999

Property, plant and equipment

156,135

160,273

4,138

Rental equipment

262,239

272,603

10,363−164,193−171,196−7,002

98,046

101,407

3,361

Other property, plant and equipment

58,08958,866777

Intangible assets

6,904

7,122

218

Investments and other assets

13,963

13,606−357

303,754304,810

1,055

Notes and accounts receivable - trade, and contract assets

Accumulated depreciation
Rental equipment, net

Total assets

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Liabilities and Net Assets(Millions of yen)

FY2021_4Q

FY2022_2Q

ChangeLiabilities

87,23085,327−1,902

Notes and accounts payable - trade

37,082

36,670−412

Accounts payable - other

24,54525,218672

Other Current liabilities

25,602

23,439−2,162

Non-current liabilities

81,607

81,970362

Long-term borrowings

31,46031,342−117

Long-term accounts payable - other

44,48644,365−121

Other Current liabilities

5,660

6,262

602

168,837

167,298−1,539124,226

125,104

877

Accumulated other comprehensive income

2,729

4,043

1,300

Non-controlling interests

7,960

8,377

416

Total net assets

134,917

137,5122,595

Total liabilities and net assets

303,754304,810

1,055

Current liabilities

Total liabilities
Net assets
Total shareholders’ equity

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Cash Flows(Millions of yen)

Cash and cash equivalents were 55,866 million yen, up
308 million yen compared to the previous consolidated
fiscal year.

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

30,000

FY2021_2Q

FY2022_2Q

Change25,000Cash flow from operating
activities

20,084

20,913829

Cash flow from investing
activities− 2,353− 2,276

77

20,91320,08420,00015,00010,000Cash flow from financing
activities−14,436−18,521− 4,084

Net increase (decrease) incash and cash equivalents

3,694

308

− 3,3865,000
0-5,000Cash and cash
equivalents at beginningof period

48,02355,557

7,534

Cash and cash
equivalents carried overat end of second quarter

51,71755,8664,148-2,353−2,276-10,000-15,000−14,436-20,000

FY2021_2Q−18,521
FY2022_2Q

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02

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

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

100

90

80
2010/1 2010/7 2011/1 2011/7 2012/1 2012/7 2013/1 2013/7 2014/1 2014/7 2015/1 2015/7 2016/1 2016/7 2017/1 2017/7 2018/1 2018/7 2019/1 2019/7 2020/1 2020/7 2021/1 2021/7 2022/1

Source: Bank of Japan Corporate Service Price Index (CSPI) on the 2015 Year Base (Construction Rental Equipment)
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Overview of Construction Equipment Rental Industry
Net sales in the industry are approximately 2% to 3% of the total domestic investment in construction.
The industry has roughly 2,000 competitors in construction equipment rentals.
Kanamoto and other major wide-area contractors make up 38% the market based on recent non-consolidated
comparison data of each company.

Aktio Corporation (Unlisted)
Kanamoto Co., Ltd. (Tokyo Stock Exchange, Prime

Local contractors Major wide area
contractors
34%(4 companies)

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

38%
Second-tier mediumsized contractors

28%

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.

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

(Millions of yen)

Operating profit

Ordinary profit

Profit attributable toowners of parent

191,100

15,60015,8009,700¥259.65

－

6.7％

2.7％

8.9％

－

189,416

14,624

15,3918,907¥235.55

5.8％

2.6％

7.9％

5.2％

－

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

Net sales

Operating profit

250,000

25,000200,000

20,00025,000Up

Ordinary profit

6.7% 20,000

25,000Up

EPS

Profit attributable to owners ofparent and EPS

2.7% 20,000
Up

15,000150,000

8.9%

400.00300.0015,00015,000200.00100,000

10,00010,00010,00050,000

5,000

5,000

5,000

0

0

0

0

FY20

FY21

FY22/E

FY20

FY21

FY22/E

FY20

FY21

FY22/E

100.00

0.00

FY20

FY21

FY22/E※As the Company will apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. from the beginning of the fiscal year ending October 31, 2022, the above projected consolidated operating
results are after the application of the said accounting standard. As a result, the percentages for net sales for the previous fiscal year and the same period of the previous year are not shown.

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03 Future Expansion: Creative 60

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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
1. 「国内営業基盤の拡充」 ― グループの総力を結集— 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

Expansion—Upgrade
to Overseas
Strategy 2.0 (Next Generation)
22.. Overseas「海外展開」― 海外戦略2.0（NextGeneration）へのバージョンアップ
- 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

Internal Operational Processes—Increase
Rental Business Profitability
33.Optimize. 「内部オペレーションの最適化」―
レンタルビジネスの収益性向上- 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- 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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Creative 60< Priority measures>

01

Expansion of the Kanamoto Domestic
Base of Operations

02

Overseas Expansion

03

Optimize Internal Operational Processes
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Creative 60
Expansion of the Kanamoto Domestic Base of
Operations
Overseas Expansion
Optimize Internal Operational Processes

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Expansion of the Kanamoto Domestic Base of Operations
Gradual increase in investment after hitting bottom at 42 trillion yen in fiscal 2010 Approx.
In fiscal 2022, public investment in construction is expected to slightly decline but the overall investment
in construction should remain at a same level as previous year.
(Expectation)(Expectation)(Forecast)(Trillions of yen)
70

Public construction
investment
Private residentialbuilding

60
50
40

Private non-residentialbuilding

30

Private building RR
investment

20
10

6.2

6.0

6.3

6.5

6.5

5.9

6.1

6.3

14.6

15.3

16.3

17.0

17.0

16.0

16.4

17.2

15.7

16.5

16.9

16.7

16.3

15.1

15.7

15.5

20.2

21.0

21.8

21.6

22.7

24.0

23.4

23.0

11.0
13.0
18.0

0

Fiscal year

2010

2015

2016

2017

2018

2019(Expectation)

2020(Expectation)

2021(Forecast)2022(Forecast)Investment inconstruction

41.9 (-2.4%)

56.6 (19.3%)

58.7 (3.7%)

61.3 (4.4%)

61.8 (0.8%)

62.5 (1.1%)

60.9 (-2.5%)

61.7 (1.2%)

62.0 (0.5%)

Public investment inconstruction

18.0 (0.3%)

20.2 (8.6%)

21.0 (3.9%)

21.8 (3.8%)

21.6 (-0.9%)

22.7 (5.2%)

24.0 (5.4%)

23.4 (-2.2%)

23.0 (-1.9%)

Private investment inresidential construction

13.0 (1.1%)

15.7 (5.5%)

16.5 (4.9%)

16.9 (2.9%)

16.7 (-1.2%)

16.3 (-2.8%)

15.1 (-7.1%)

15.7 (4.1%)

15.5 (-1.5%)

Private investment in nonresidential construction

11.0 (-10.0%)

14.6 (3.9%)

15.3 (5.0%)

16.3 (6.8%)

17.0 (4.1%)

17.0 (0.2%)

16.0 (-6.1%)

16.4 (2.8%)

17.2 (4.5%)

Private RR investment inbuildings―

6.2 (―)

6.0 (-2.9%)

6.3 (4.5%)

6.5 (3.7%)

6.5 (-0.5%)

5.9 (-9.7%)

6.1 (3.8%)

6.3 (4.3%)

44.9 (-2.6%)

56.6 (19.0%)

58.6 (3.4%)

60.0 (2.4%)

58.5 (-2.4%)

57.8 (-1.3%)

56.4 (-2.4%)

54.9 (-2.7%)

53.9 (-1.7％)(year on year growth rate)

Real investment inconstruction

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

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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

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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 – Sapporo
Kyushu Shinkansen Takeo Onsen – Nagasaki
Linear Chuo Shinkansen
Shin-Tomei/Shin-Meishin Expressway

Large-scale refurbishments of three NEXCO companies, the Metropolitan Expressway, the Hanshin Expressway, and Honshu-Shikoku Bridge Expressway
5th Strategic Energy Plan - Basic Plan
Fifth Basic Environment Plan
Plan for Global Warming Measures
Green Growth Strategy Through Achieving Carbon Neutrality in 2050
Five-Year Acceleration Plan for Disaster Prevention, Disaster Mitigation, and Building National Resilience

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

2022

2023

2024

2025

2026

2027

2028

2029～50

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Expansion of the Kanamoto Domestic Base of Operations
Kanamoto has 215 non-consolidated sales bases throughout Japan.
The Kanamoto Group has steadily expanded its sales base to 541
locations.
Changes in the Number of Domestic Sales Bases

Nakatombetsu Machine Center（Esasi District in Hokkaido Prefecture）

120

112

End oh April 2022

110
99

100

Obama Branch

80（Obama City, Fukui）

78

60
Kitakyushu Branch

43（Kitakyushu City in Fukuoka Prefecture）

45

Marumori Branch

40（Igu District in Miyagi Prefecture）

16

20

12
5
0
Hokkaido Tohoku

Kanto

Chubu

Kinki

Chugoku Shikoku

Kyushu Okinawa

Sooki Holdings Co., Ltd.
（Osaka Prefecture）

Futaba Branch（Futaba District in Fukushima Prefecture）

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

West Japan
7.1%

Kyushu & Okinawa
15.1%

Hokkaido
43.7%
Tohoku27.4%

Kanto & Koushinetsu
6.2%

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

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

Shinkansen Project
Tokyo Gaikan Expressway Project

Source: Hanshin Expressway Co., Ltd., Commercialization of Large-Scale Repair and Renewal Projects (March 30, 2015)
Prepared based on the Annual Report on Road Maintenance (August 2021) released by the Ministry of Land, Infrastructure, Transport and Tourism. tokyo-gaikan-project.com

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Creative 60
Expansion of the Kanamoto Domestic Base of
Operations
Overseas Expansion
Optimize Internal Operational Processes

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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

Indonesia

VietnamThailand
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Overseas Expansion
Overseas sites in Indonesia, Vietnam, Thailand, The Philippines, China, Malaysia, andAustralia

Philippines

Malaysia

China

Australia
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Creative 60

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

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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- 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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Real-time Automatic Rebar Arrangement Inspection System
We aim to start the business in the first half of fiscal 2022 to reduce labor of rebar arrangement inspection atconstruction sites. We strive to contributed to improving work efficiency and innovating workstyles inconstruction sites across Japan in corporation with Sharp Corporation and SHIMIZU CORPORATION.
Developing a system through matching the needs for improving the productivity of rebar inspections andtechnology seeds of image analysis using high-definition cameras, we achieved greater productivity, laborsaving, and improved safety of rebar inspections.

Condition of construction sites orweather conditions that werepreviously impossible to conduct
accurate rebar measurement is madepossible with this technology andenables telepresence and rebar
inspection systems that is more widely
applicableThrough improving productivity and labor-saving,time required for rebar inspections was reduced byabout 75%
Improves productivity of orderer that manage
multiple construction sites through integrating
remote operations
Reduces time required for work as well as improvessafety by enabling non-contact inspection from safe
foothold at construction sites

Rebar Arrangement Inspection System Using Stereo CameraAwards Received by “Real-time Automatic Rebar
Arrangement Inspection System”

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Contributed to the acquisition of Nearly ZEB certification of
the temporary construction office
PENTA-OCEAN CONSTRUCTION CO., LTD. achieved energy-saving rate of 80% including energy
generation at the new construction of the temporary construction office. PENTA-OCEANCONSTRUCTION has acquired Nearly ZEB certification of the Building-Housing Energy-efficiency
Labeling System, and we have contributed to that through enhancing the insulation of the unit
housing.
Enhancing insulation of unit housing
Implement resin sashes with Low-E glass in cold region to further
enhance insulation

Energy-saving

Energy reduction rate:
58%

Reduce burden on lightings through installation of LEDs and motion
sensors
Implementation of highly efficient air conditioners in clod regions

Exterior of construction office

Solar panels

Nearly ZEB Certification
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Kanamoto Value Creation Process
The Kanamoto Group creates value that helps address social issues through the development of global businesses centered upon construction,robust corporate governance and ideal organizations and structures, while integrating and using management resources founded in the needs ofsociety and customers.
Input:Management
resources(consolidated) カナモトが創出する価値
Output:Business activities
Outcome:Value created by Kanamoto
カナモトが創出する価値

Injection of Sustainable Management Resources to Address Social Issues(As of October 2021)
Total assets ¥303,754 million

Society and customer needs⇒Capital investments in rental
assets and other equipment
prioritizing operational efficiency
and profitability

Human capital
Number of Employees 3,793⇒Diverse human resources withhigh –level knowledge

Social capital
Branch network Japan 519 locations
Overseas 21locations⇒Branch network to build an ideal
value change according to thedemand in each region

Business domains

Economic value(Financial)
Construction
Equipment
Rental Business

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

Medium-term management plan
Expansion of Kanamoto DomesticBase of OperationsConcentrate the Collective Group Capabilities
Overseas Expansion–Upgrade Overseas Strategy 2.0(Next Generation)
Optimize internal Operational Processes-Increase Rental Business Profitability

Net Sales¥189,416 million

Profit attributable toowners of parent¥8,907 million⇒Strengthen a high-profit structure
And achieve a stronger Kanamoto
benefiting all stakeholders

Increase value through consistency

Social value(Non-financial)●Contribute to disaster recovery andreconstruction

Kanamoto Strengths
Broad customer base worldwide●Reduce the environmental impact

Technical and development capabilities
responding to on-site demand
High-quality products and services●Improve employee satisfaction●Return profits to shareholders

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

Financial and investment
capitalBrand power cultivated over almost half a century

Re-investment Toward Further Value Creation
Build infrastructure that supports business growth ●Corporate governance ●Compliance ●Risk management ●Environmental management

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

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

E

Businesses contributing
to SDGs

A business called "rental" that
leads to decarbonization
Asset shift to environmental
measures for decarbonization

Environment
Initiatives for TCFD

Foundation supporting value creation

S
SocialActivities

G

GovernanceKanamoto products and services will create new value that helps
achieve the SDGs and contribute to the development of a 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 with environmental
laws and regulations and promoting appropriate environmental
management.

Comprehensive disclosure andIR activities

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

Contributions to local
communities as well as art
and culture

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

Stronger health and safetysystems

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 caneach be themselves and fully utilize their skills.

Corporate governanceComplianceInternal control systems

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

Risk management

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

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

Disclosing Climate Change Data in Accordance with TCFD Supporter Guidelines-

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

-

We are participating in the TCFD Consortium.

-

We utilizing scenario analyses.

-

We are strengthening our corporate governance system tocombat climate change.

-

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

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Investment strategy
Promote flexible investment strategy that meet actual demand based on businessportfolio management

Rental equipment
investment, etc.
Cash flows
EBITDA
M&A, etc.
Finance
Dividend payout and acquisitionof treasury shares, etc.

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

60,00040,00020,0000FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020_2Q

FY2020

FY2021_2Q

FY2021

FY2022_2Q

FY2022/E

Operating profit

11,392

16,454

16,27015,134

16,665

17,59917,842

9,239

14,2508,061

14,624

7,098

15,600Depreciation

14,767

17,486

19,752

22,45824,57025,722

27,705

14,38429,073

15,93431,712

16,08432,000E B I T D A

26,15933,94036,02237,592

41,23543,32145,547

23,62443,32423,99546,33623,18347,600Property, plant andequipment
equivalents

7,695

7,563

7,306

8,938

10,310

10,542

10,775

5,186

10,461

5,166

10,694

5,096

11,100E B I T D A +33,85441,50343,32846,53051,54553,86356,322

28,81053,78529,161

57,03028,27958,700Property, plantand equipment
investment

37,61142,40037,36738,29437,674

46,99252,093

29,10051,567

20,72537,26623,357

47,200Free cash flow

△3,757

△894

5,960

8,235

13,871

6,871

4,229

△290

2,218

8,436

19,764

4,921

11,500EBITDA+ refers to EBITDA (operating profit and depreciation) plus property, plant and equipment equivalents.
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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

2022 Central Co., Ltd.（plan）
2020 SOOKI HOLDINGS CO., LTD.
SOOKI Co., Ltd.
2020 SOOKI SALES CO., LTD.

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

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

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

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

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

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

KG FLOWTECHNO CO., LTD.

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.

38

1964 Kanamoto Shoten Co., Ltd. established

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Priority Areas
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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Dividend Policy
Year-end dividend of 70 yen for the fiscal year ended October 31, 2021 (25 yen interim dividend)Year-end dividend of 75 yen for the fiscal year ending October 31, 2022 (35 yen interim dividend)
Treasury shares will also be acquired flexibly(Yen)■Regular dividend ■ Bonus dividend
60

65

65

70

75

50
45
35
20

20

20

20

20

35

20

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22/E

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

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

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

FY2008FY2009FY2010FY2011FY2012FY2013

Net sales

69,411

63,86370,17371,086

86,106 110,831 125,555 133,292 144,870 158,428 168,188 180,694 179,053 189,416 191,100

Operatingprofit

2,227

137

2,648

2,905

6,430

11,392

16,454

16,27015,134

16,665

17,59917,842

14,25014,624

15,600Ordinary profit

2,028

-222

2,083

2,239

5,932

11,073

16,07816,164

14,405

17,193

17,925

18,277

14,26815,39115,800

Profit attributable toowners of parent

644-1,158

1,041

1,165

3,575

5,809

9,299

9,557

8,098

10,744

11,857

11,430

8,466

8,907

9,700

Net assets

38,20236,54137,02537,592

41,39956,19265,513

71,99881,434

91,788 102,031 121,779 126,188 134,917-

Total assets

91,741

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

Net sales

200,000

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021 FY2022/E

Operating profit

30,000160,000

24,000120,000

18,00080,00012,00040,000

6,000

0

0

FY2008 FY2009 FY2010 FY2011 FY2012

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

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