Three-Month Consolidated Financial Reportfor the Fiscal Year Ending October 31, 2023 (Japan GAAP)
Listed Company Name
Company Code Number
Listing Exchanges
URL
Representative
Inquiries

March 3, 2023
Kanamoto Co., Ltd.
9678
Tokyo Stock Exchange, Sapporo Stock Exchange
https://www.kanamoto.co.jp
Tetsuo Kanamoto
President and CEO
Shun Hirose
Director & Corporate Officer, Division Manager,
Accounting Division
TEL 81-11-209-1600

Scheduled date for submission of Quarterly Report
Scheduled date for commencement of dividend payments
Preparation of Quarterly Settlement Supplementary Explanatory Materials
Quarterly Earnings Briefings

March 16, 2023

–

No
No

(Numbers less than one million yen have been rounded down)

1.

Consolidated Operating Results for the Three-Month Period of the Fiscal Year Ending October
31, 2023(November 1, 2022 – January 31, 2023)(1) Consolidated Operating Results (Cumulative)
Net Sales
Millions of yen(Percentages show the change from the prior year)

Operating Profit%

Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Profit%

Millions of yen%

Millions of yen%

Fiscal year ending
October 31, 2023:
First quarter

49,508

5.9

3,096

-6.5

3,267

-6.9

1,738

-16.1

Fiscal year ended
October 31, 2022:
First quarter

46,730

–

3,311

-16.2

3,509

-16.0

2,072

-8.5

(Note) Comprehensive income (millions of yen)
Fiscal year ending October 31, 2023, First quarter
Fiscal year ended October 31, 2022, First quarter

Earnings per
Share

1,451 (-45.0%)
2,636 (-19.7%)

Earnings per
Share on a Fully
Diluted Basis

Yen

Yen

Fiscal year ending
October 31, 2023:
First quarter

47.31

–

Fiscal year ended
October 31, 2022:
First quarter

55.04

–

(Note)As the Company has 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 ended October 31, 2022, the percentage of change for net
sales from the results for the three months ended January 31, 2021, which was prior to the application of the said
accounting standard, etc. is not shown.

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of January 31,
2023

309,173

139,11242.1

As of October 31,
2022

305,320

140,611

43.2(Reference) Equity (millions of yen)
As of January 31, 2023
As of October 31, 2022

130,268
131,958

 1 

2. Dividends
Annual Dividends per Share
End offirst quarterEnd ofsecond quarter

Yen

Fiscal year ended October 31,
2022–

Fiscal year ending October 31,
2023–

End ofthird quarter

Yen

Fiscal year ending October 31,
2023 (projected)

Year-end

Yen

Full-year
Yen

Yen

35.00

–

40.00

75.00

35.00

–

40.00

75.00

(Note) Has the Company revised its most recently released dividend projection?: No

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2023
(November 1, 2022 – October 31, 2023)(Percentages show the change from the prior year)
Net Sales
Millions of yen

Operating Profit% Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Profit% Millions of yen% Millions of yen

Earnings per
Share

%

Yen

Interim period

96,700

3.2

6,200

-12.7

6,200

-16.9

3,600

-20.7

97.96

Full year

198,000

5.3

14,0005.8

14,100

2.3

8,400

0.7

228.57(Note) Has the Company revised its most recently released projected consolidated operating results during the quarter?: No 2 Notes(1) Changes in material subsidiaries during the period under review (Changes in specific subsidiaries in
conjunction with a change in the scope of consolidation): No(2) Application of special accounting method in the preparation of quarterly consolidated financial
statements: No(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements(a) Changes in accounting policy in conjunction with revision of accounting standards: No(b) Changes other than the above: No(c) Changes in accounting estimates: No(d) Retrospective restatements: No(4) Number of shares issued (common shares)(a) Number of shares issued at the end of the period (including treasury shares)
As of January 31, 2023:
38,742,241 shares
As of October 31, 2022:
38,742,241 shares(b) Number of treasury shares at the end of the period
As of January 31, 2023:
2,202,190 shares
As of October 31, 2022:
1,799,490 shares(c) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Fiscal year ending October 31, 2023: First quarter:
36,749,709 sharesFiscal year ended October 31, 2022: First quarter:
37,660,982 shares
Note: Quarterly earnings reports are not subject to quarterly review by certified public accountants or
independent account auditors.
Note: Explanation concerning appropriate use of the projected operating results and other items to note
(Note concerning forward-looking statements)
The forward-looking statements, including business results forecasts, contained in these materials are
based on information currently available to the Company and on certain assumptions deemed to bereasonable. The Company does not guarantee the achievement of the projections. Actual operating
results may differ substantially due to a number of factors. Please refer to “1. Qualitative Information
Concerning Quarterly Consolidated Operating Results (3) Explanation Concerning Future Forecasts
Including Projected Consolidated Operating Results” on page 6 of the Attachments for the conditions
used as assumptions for the projected operating results and matters to note before using the projected
operating results.

 3 

○Attachments Table of Contents
1. Qualitative Information Concerning Quarterly Consolidated Operating Results ..................................5(1) Qualitative Information Concerning Consolidated Operating Results ...........................................5(2) Qualitative Information Concerning Consolidated Financial Position ............................................5(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results .......6
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto .....................................7(1) Quarterly Consolidated Balance Sheets ...................................................................................7(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income ........................................................................................................9(Quarterly Consolidated Statements of Income) ...................................................................9(Consolidated Three-Month Period Ended January 31)........................................................9(Quarterly Consolidated Statements of Comprehensive Income) ........................................... 10(Consolidated Three-Month Period Ended January 31)...................................................... 10(3) Notes Concerning Quarterly Consolidated Financial Statements ............................................... 11(Notes Relating to the Going Concern Assumption) ............................................................. 11(Note on Significant Changes to Shareholders’ Equity)......................................................... 11(Segment Information) .................................................................................................... 11 4 

1. Qualitative Information Concerning Quarterly Consolidated Operating Results(1) Qualitative Information Concerning Consolidated Operating Results
During the three-month period under review, while the impact of COVID-19 remained, Japan’s economy
showed signs of a gradual recovery. However, the outlook remains uncertain mainly due to concerns overthe impact of uncertainties in overseas economies and heightened geopolitical risks on Japan’s economy.
In the construction industry in which the Group is involved, although public sector investment remained
firm, backed mainly by Japan’s National Resilience Plan, and signs of a recovery in private sector
construction investment continued, the impact of soaring labor costs, material prices, etc. on profitability,
and other conditions that demand close attention persist.
In such circumstances, in order to achieve the goals of its Medium-Term Corporate Management Plan
“Creative 60” (FY2020-2024), the Group is committed to sustainable development and the enhancementof corporate value mainly through a business strategy that matches regional characteristics using Groupsynergy and the promotion of developing bases for strengthening its overseas business foundation, while
also pursuing a flexible asset strategy that is adapted to the external environment and effective asset
management.
For the three-month period under review, the Group reported net sales of ¥49,508 million, an increaseof 5.9% year on year. On the earnings front, partly due to an increase in selling, general and administrative
expenses caused by rises in depreciation and investment in human resources in preparation for the future,operating profit was ¥3,096 million, a decrease of 6.5% year on year, ordinary profit was ¥3,267 million,a decrease of 6.9% year on year, and profit attributable to owners of parent was ¥1,738 million, a decreaseof 16.1% year on year.
Results for each of the Company’s business segments were as follows.
< Business related to the Construction Equipment Rental Division >In the construction-related business, which is Kanamoto’s core business, although the strength in rental
demand for construction equipment overall returned mainly as public sector investment remained steadyand private sector construction investment has shown signs of a recovery, price competition accompanying
rising construction costs has become increasingly severe.
In addition, the Group is working to ensure a foundation for further improvement in earnings, such as
by enhancing its rental equipment in regions where there is expected to be significant construction demand
and reorganizing its network of bases in order to improve liquidity.
Used construction equipment sales increased 53.5% year on year, as Kanamoto proceeded with sales
to maintain an appropriate asset mix while carrying out the extension of the rental equipment operation
period as planned at the beginning of the fiscal year.
Reflecting these factors, the Group posted net sales in the construction-related businesses of ¥45,110
million, an increase of 5.8% year on year, and operating profit of ¥2,661 million, a decrease of 8.3% year
on year.
< Other businesses >In the Group’s other businesses, net sales was ¥4,397 million, an increase of 7.4% year on year, andoperating profit was ¥304 million, an increase of 5.8% year on year, as the business related to the SteelSales Division as well as the business related to the Information Products Division and welfare-related
business performed well.
(2) Qualitative Information Concerning Consolidated Financial Position
Assets, liabilities, and net assets
Total assets at the end of the first quarter under review stood at ¥309,173 million, an increase of ¥3,853
million compared with the end of the prior fiscal year. This was primarily due to increases of ¥3,682 million 5 

in cash and deposits and ¥4,650 million in rental equipment, while long-term loans receivable decreasedby ¥3,706 million.
Total liabilities stood at ¥170,061 million, an increase of ¥5,352 million compared with the end of theprior fiscal year. This was primarily due to increases of ¥2,781 million in notes and accounts payable trade and ¥2,100 million in short-term borrowings.
Total net assets stood at ¥139,112 million, a decrease of ¥1,499 million compared with the end of theprior fiscal year. This mainly reflects decreases of ¥1,477 million due to dividends of surplus, ¥912 million
due to purchase of treasury shares, and ¥625 million in foreign currency translation adjustment, despite
the posting of profit attributable to owners of parent of ¥1,738 million.
As a result, equity ratio was 42.1% compared with 43.2% at the end of the prior fiscal year.
(3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating
Results
There is no change to the projected consolidated operating results announced in the Financial
Statements Bulletin for the Fiscal Year Ended October 31, 2022 (Japan GAAP) on December 9, 2022.

 6 

2. Quarterly Consolidated Financial Statements and Significant Notes Thereto(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of October 31, 2022

As of January 31, 2023

47,56551,24738,452

37,956

8,025

9,418

1,729
1,432
17,0474,098-284
118,066

1,907
1,485
16,8083,165-226
121,762

282,605-181,989
100,616
44,709-26,128
18,581
10,088-8,511

293,019-187,752
105,267
45,870-26,477
19,392
10,288-8,638

1,576

1,650

38,6884,570-2,3052,265
161,728

38,8884,185-2,3501,835
167,034

3,810
1,395
1,511
6,717

3,559
1,303
1,580
6,444

9,699
2,370
5,213
2,081
-556
18,808187,253
305,320

9,051
1,812
1,506
2,096
-534
13,931
187,410309,173

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade,and contract assets
Electronically recorded monetary claims operating
Merchandise and finished goods
Raw materials and supplies
Construction machine parts
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Rental equipment
Accumulated depreciation
Rental equipment, net
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles,
net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Customer relationship
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Long-term loans receivable
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets 7 

(Millions of yen)
As of October 31, 2022

As of January 31, 2023

33,714980
13,913
1,444
1,957
1,579
24,853
4,022
82,46536,496
3,080
13,957
1,585
805
738
24,636
4,775
86,07634,6593,179
41,121
374
657
2,095
154
82,242
164,708

35,9683,679
41,019
373
656
2,082
205
83,984
170,061

17,82919,332
94,399-3,945
127,616

17,82919,332
94,121-4,857
126,427

2,181

2,305

2,198
-37

1,573
-36

4,342

3,841

8,652
140,611305,320

8,843
139,112309,173

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Income taxes payable
Provision for bonuses
Accounts payable - other
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Long-term accounts payable - other
Retirement benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets 8 

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements ofComprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Three-Month Period Ended January 31)(Millions of yen)Three months ended
January 31, 2022

Three months ended
January 31, 2023

46,73033,006
13,724
10,412
3,311

49,50835,414
14,094
10,997
3,096

12
72
20
18
156
280

15
86
20
4
140
268

25
7
51
83
3,509

28
9
58
96
3,267

5

3

6

0

31
43

–
4

31

77

4
36
3,515
735
495
1,230
2,284
211
2,072

–
77
3,194
709
537
1,247
1,946
208
1,738

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of shares of subsidiaries andassociates
Gain on revision of retirement benefit plan
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current
assetsLoss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent 9 

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Three-Month Period Ended January 31)(Millions of yen)Three months ended
January 31, 2022

Three months ended
January 31, 2023

2,284

1,946

-55

128

-0
368

–
-625

39

1

351
2,636

-495
1,451

2,414

1,237

221

213

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
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 toowners of parent
Comprehensive income attributable to noncontrolling interests

 10 

(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes Relating to the Going Concern Assumption)
The Company had no material items to report.
(Note on Significant Changes to Shareholders’ Equity)
The Company repurchased 402,700 shares of treasury shares in accordance with the resolution of themeeting of the Board of Directors held on December 9, 2022. As a result, treasury shares increased by¥912 million during the three-month period ended January 31, 2023, resulting in ¥4,857 million as of theend of the three-month period ended January 31, 2023.
(Segment Information)I
Three-month period ended January 31, 2022 (From November 1, 2021 to January 31, 2022)
1.

Information concerning the amount of net sales and income or loss by reporting segment, andinformation on disaggregation of revenue(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)

32,016

1,829

33,846

6,961

2,033

8,994

3,600

231

3,832

42,5784,094

46,672Total

Net sales
Rental contracts
Sales of merchandise andfinished goods
Other
Revenue from contracts withcustomers
Other revenues

57

–

57

Net sales to outside customers
Net sales or transfers between
related segments

42,636

4,094

46,730

–

–

–

Total

42,636

4,094

46,730

2,901

287

3,189

Segment income(Note) The “Other businesses” classification encompasses business segments not included in
the reporting segment, and includes business related to the Steel Sales Division andbusiness related to the Information Products Division, welfare-related business andother businesses.
2.

Difference between total reporting segment income or loss and the amount reported on the Quarterly
Consolidated Statement of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
IncomeAmountReporting segment total

2,901

Income for “Other businesses” classification

287

Other adjustments

122

Operating profit reported on the Quarterly
Consolidated Statement of Income 11 

3,311

IIThree-month period ended January 31, 2023 (From November 1, 2022 to January 31, 2023)
1.

Information concerning the amount of net sales and income or loss by reporting segment, andinformation on disaggregation of revenue(Millions of yen)
Reporting segment
Business related to
the Construction
Equipment Rental
Division

Other businesses(Note)Total

Net sales
Rental contracts
Sales of merchandise andfinished goods
Other
Revenue from contracts withcustomers
Other revenues

33,777

1,917

35,694

7,573

2,156

9,729

3,729

323

4,053

45,0804,397

49,47830–

30

Net sales to outside customers
Net sales or transfers between
related segments

45,1104,397

49,508

–

–

–

Total

45,1104,397

49,508

2,661

304

2,965

Segment income(Note) The “Other businesses” classification encompasses business segments not included in
the reporting segment, and includes business related to the Steel Sales Division andbusiness related to the Information Products Division, welfare-related business andother businesses.
2.

Difference between total reporting segment income or loss and the amount reported on the Quarterly
Consolidated Statement of Income, and the main reasons for the difference (Matters Pertaining toReconciliation of Difference)(Millions of yen)
IncomeAmountReporting segment total

2,661

Income for “Other businesses” classification

304

Other adjustments

130

Operating profit reported on the Quarterly
Consolidated Statement of Income 12 

3,096