Nine-Month Consolidated Financial Report

for the Fiscal Year Ending October 31, 2023 (Japan GAAP)

Listed Company Name

Kanamoto Co., Ltd.

September 8, 2023

Company Code Number

9678

Listing Exchanges

Tokyo Stock Exchange, Sapporo Stock Exchange

URL

https://www.kanamoto.co.jp

Representative

Tetsuo Kanamoto

President and CEO

Inquiries

Shun Hirose

Director & Corporate Officer, Division Manager,

Accounting Division

TEL 81-11-209-1600

Scheduled date for submission of Quarterly Report

September 13, 2023

Scheduled date for commencement of dividend payments

-

Preparation of Quarterly Settlement Supplementary Explanatory Materials

No

Quarterly Earnings Briefings

No

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

1. Consolidated Operating Results for the Nine-Month Period of the Fiscal Year Ending October 31, 2023

(November 1, 2022 - July 31, 2023)

(1) Consolidated Operating Results (Cumulative)

(Percentages show the change from the prior year)

Net Sales

Operating Profit

Ordinary Profit

Profit Attributable to

Owners of Parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Fiscal year ending

October 31, 2023:

145,155

4.6

7,755

-15.4

8,152

-15.8

4,220

-28.8

Third quarter

Fiscal year ended

October 31, 2022:

138,828

-

9,162

-15.2

9,679

-15.6

5,927

-13.2

Third quarter

(Note) Comprehensive

income (millions

of yen)

Fiscal year ending October 31, 2023, Third quarter

5,659

(-30.2%)

Fiscal year ended October 31, 2022, Third quarter

8,108

(-7.0%)

Earnings per

Earnings per

Share on a Fully

Share

Diluted Basis

Yen

Yen

Fiscal year ending

October 31, 2023:

116.21

-

Third quarter

Fiscal year ended

October 31, 2022:

159.27

-

Third quarter

(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 nine months ended July 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 July 31, 2023

309,171

140,933

42.7

As of October 31,

305,320

140,611

43.2

2022

(Reference) Equity (millions of yen)

As of July 31, 2023

131,976

As of October 31, 2022

131,958

− 1 −

2. Dividends

Annual Dividends per Share

End of

End of

End of

Year-end

Full-year

first quarter

second quarter

third quarter

Yen

Yen

Yen

Yen

Yen

Fiscal year ended October 31,

-

35.00

-

40.00

75.00

2022

Fiscal year ending October 31,

-

35.00

-

2023

Fiscal year ending October 31,

40.00

75.00

2023 (projected)

(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

Operating Profit

Ordinary Profit

Profit Attributable to

Earnings per

Owners of Parent

Share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full year

198,000

5.3

14,000

5.8

14,100

2.3

8,400

0.7

231.28

(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
    1. Changes in accounting policy in conjunction with revision of accounting standards: No
    2. Changes other than the above: No
    3. Changes in accounting estimates: No
    4. Retrospective restatements: No
  5. Number of shares issued (common shares)
    1. Number of shares issued at the end of the period (including treasury shares)

As of July 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 July 31, 2023:

2,681,790 shares

As of October 31, 2022:

1,799,490 shares

  1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Fiscal year ending October 31, 2023: Third quarter:

36,319,334 shares

Fiscal year ended October 31, 2022: Third quarter:

37,218,062 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 be reasonable. 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

6

(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 of

Comprehensive Income

9

(Quarterly Consolidated Statements of Income)

9

(Consolidated Nine-Month Period Ended July 31)

9

(Quarterly Consolidated Statements of Comprehensive Income)

10

(Consolidated Nine-Month Period Ended July 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 nine-month period under review, Japan's economy saw progress in the normalization of economic activities against the backdrop of the classification of COVID-19 being changed to Class V. However, the outlook remained uncertain due to factors such as unstable conditions overseas and financial market trends.

In the construction industry in which the Group is involved, changes in construction demand and needs continue to necessitate even closer attention due to the deep impact of soaring construction material prices, delivery delays, etc., despite the gradual recovery of private sector construction investment in addition to stable public sector investment.

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 to enhance profit margins and maximize synergistic effects by efficiently using management resources while also promoting the establishment of a structure that will enhance organizational capabilities and planning and implementation capabilities by strengthening collaboration between departments.

For the nine-month period under review, the Group reported net sales of ¥145,155 million, an increase of 4.6% year on year. On the earnings front, partly due to investment in human resources in preparation for the future in addition to increases in depreciation and selling, general and administrative expenses caused by an absorption-type merger within the Group, operating profit was ¥7,755 million, a decrease of 15.4% year on year, ordinary profit was ¥8,152 million, a decrease of 15.8% year on year, and profit attributable to owners of parent was ¥4,220 million, a decrease of 28.8% 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, the strength of rental demand for construction equipment overall returned due to the progress of various types of large-scale projects, such as the construction of semiconductor plants in Hokkaido and Kyushu, and security-related construction in addition to the continuation of redevelopment work in urban areas, extension projects for bullet trains and renewable energy-related work.

Furthermore, the Group worked to enhance the utilization rate of assets and strengthen the service system, such as by proactively enhancing and appropriately deploying its rental equipment after ascertaining trends in demand, while also working to improve the earnings structure by optimizing the rental unit price.

Used construction equipment sales decreased 9.1% year on year, as Kanamoto proceeded with sales in accordance with the initial plan in order to maintain an appropriate asset mix while carrying out the extension of the rental equipment operation period.

Reflecting these factors, the Group posted net sales in the construction-related businesses of ¥131,108 million, an increase of 4.2% year on year, and operating profit of ¥6,598 million, a decrease of 16.8% year on year.

< Other businesses >

In the Group's other businesses, net sales was ¥14,047 million, an increase of 8.5% year on year, and operating profit was ¥777 million, a decrease of 10.1% year on year, as the business related to the Steel Sales Division as well as the business related to the Information Products Division and welfare-related business performed as planned.

− 5 −

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Kanamoto Co. Ltd. published this content on 08 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 September 2023 07:18:07 UTC.