KANAMOTO CO.,LTD. Notice Regarding Revision of the Medium-Term Management Plan 2022/12/09 on Japan | Page. 1/1
Friday, December 9, 2022
FOR IMMEDIATE RELEASE
Kanamoto Co., Ltd.
Stock Code 9678
Tokyo Stock Exchange Prime Market, Sapporo Securities Exchange
President and CEO | Tetsuo |
Kanamoto | |
Director and Corporate Officer, Division | Shun Hirose |
Manager, Accounting Division and General | |
Manager, Public Relations Office | |
Telephone: +81-11-209-1631 |
Notice Regarding Revision of the Medium-Term Management Plan
We would like to inform you that we have revised the Medium-Term Management Plan "Creative 60" (FY2020-FY2024) announced on December 6, 2019 as follows:
1. Reasons for the revision
When the medium-term management plan was announced public investment remained firm, centering on disaster prevention/mitigation-related construction and maintenance/renewal of aging social infrastructure, and private construction investment also showed signs of improvement, centering on redevelopment projects in metropolitan areas in the construction industry which the Group is involved in.
However, from the initial year of FY2020, the socio-economic environment changed unexpectedly due to the spread of COVID-19, and the business environment continued to be more severe than originally anticipated, including rising construction costs due to shortages in the supply of semiconductors, soaring material and energy prices, and a worsening shortage of skilled construction workers.
Under these circumstances, although the Group has been working to achieve the Medium-Term Management Plan "Creative 60," based on the financial results for the fiscal year ended October 2022 and the earnings forecast for the fiscal year ending October 2023 announced today, as well as the recent business environment, we have decided to revise the medium-term corporate management plan.
In the future, we will also continue to follow the conventional priority measures of expansion of the Kanamoto domestic base of operations, overseas expansion, optimize internal operational processes. Furthermore, we will further strengthen the resilience of our business by developing our business with an awareness of sustainability and actively responding to various changes in the social environment (transformation), and we will further increase our corporate value.
2. Revised contents
- Revision of management target figures (consolidated)
Initial Plan | Revised Plan | |
Fiscal Year Ending | Fiscal Year Ending | |
October 31, 2024 | October 31, 2024 | |
Net sales | ¥228 billion | ¥203 billion |
Operating profit | ¥23 billion | ¥14.6 billion |
Equity ratio | 48.7% | 44.9% |
EPS | ¥387.54 | ¥250.82 |
BPS | ¥4,036.19 | ¥3,973.96 |
ROA | 4.8% | 2.9% |
ROE | 10.0% | 6.5% |
EBITDA+ | ¥72.7 billion | ¥61.2 billion |
Latest Performance
Fiscal Year Ended October 31, 2022
¥188 billion
¥13.2 billion
43.2%
¥224.64
¥3,571.98
2.7%
6.4%
¥56.2 billion
Notice Regarding Revision of the Medium-Term Management Plan 2022/12/09 on Japan | Page. 2/2
(2) Sustainability management promotion
For the Company to sustainably improve corporate value, based on the idea that is necessary to actively and proactively respond to issues related to environmental and social sustainability, we will formulate a basic sustainability policy, and we are working to develop a framework and system to put this into practice.
In this medium-term management plan, we have included promotion of sustainability management to incorporate sustainability into management more than ever. We are aiming to solve problems related to environmental and social issues and further integrate them with the business of the Group and we aim to improve corporate value to achieve sustainable growth.
* For details, please refer to the attached document.
End
Medium-Term Corporate
Management Plan"Creative 60"
1
Copyright © 2022 Kanamoto Co., Ltd. All Rights Reserved.
Medium-Term Corporate Management Plan Progress Status
External Environment Surrounding the Kanamoto Group and Issues Recognized
External Environment -World/Domestic Economy-
Impact on Economic Activity Due to the Spread of
COIVD-19
Increased Uncertainty in World Affairs
External Environment -Domestic Construction Industry-
Growing Importance and Focus on Sustainability
Rise in Construction Costs due to Supply Shortages of Semiconductors and Soaring Material and Energy Prices
Growing Awareness of SDGs and ESG
Rapid Acceleration of Digitization
Promotion of Construction DX and Acceleration of
Digital Transformation which Contribute to Labor-saving
and Safety Improvement at Construction Sites
Worsening Shortage of Skilled Construction Workers
Issues
Recognized
We will aim to help combat climate change and other global environmental issues
by capitalizing on the unique sharing economy traits of a rental business.
We will strive to help improve crisis management not only in Kanamoto crisis management measures
but also those of Japan from disaster prevention and mitigation to national resilience.
We will always respect human rights and consider employee health and the labor environment
with the aim of contributing to better labor conditions in society.
We will engage in fair and proper business dealings with our business partners with the aim of fostering mutually sustainable prosperity.
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Copyright © 2022 Kanamoto Co., Ltd. All Rights Reserved.
Medium-Term Corporate Management Plan Progress Status
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 and systems 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 | 3 |
Copyright © 2022 Kanamoto Co., Ltd. All Rights Reserved. | |
Medium-term Corporate Management Plan Priority Measures Progress
"Expansion of the Kanamoto Domestic Base of Operations"
Steady expansion of the sales base by developing bases in response to changes in the economic environment.
[TOPICS] 2020 September | Made Sooki Holdings Co., Ltd. (Osaka) a subsidiary company | |||
2022 May | Acquisition of business from Central Co., Ltd. by our subsidiaryNEKCo., Ltd. | |||
July | Central Co., Ltd. (Formerly: NEKCo., Ltd.) started business | |||
October 31, 2019 | October 31, 2022 | Increase/Decrease | ||
Non-consolidated | 202 | 229 | 27 base increase | |
Alliance Group | 505 | 551 | 46 base increase | |
Change in number of domestic branches | *Excludes overseas branches |
140 | Oct. 31, 2019 | Oct. 31, 2022 | ||||||||||||||
120 | 110 | 115 | ||||||||||||||
107 | 103 | 102 | 98 | 102 | ||||||||||||
100 | ||||||||||||||||
80 | 77 | |||||||||||||||
60 | 47 | |||||||||||||||
40 | 41 | 43 | 42 | |||||||||||||
20 | 15 | 18 | 5 | 5 | 14 | 12 | ||||||||||
0 | 4 | |||||||||||||||
Hokkaido | Tohoku | Kanto | Chubu | Kinki | Chugoku | Shikoku | Kyushu | Okinawa |
Copyright © 2022 Kanamoto Co., Ltd. All Rights Reserved.
Medium-term Corporate Management Plan Priority Measures Progress
"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.
Hokkaido
FY2022 | |
Kanto & | FY2019 |
FY2019 | |
Koushinetsu |
West Japan | 7.9% | 8.4% | 52.8% |
FY2019 | FY2022 |
FY2022
54.4%
Tohoku | FY2022 | |
FY2019 | ||
4.3% | ||
4.7% | ||
Kyushu | 26.6% | 30.6% |
FY2022 | ||
FY2019
17.4% | 17.7% | |
Source: Calculated uniformly at 2.5% according | 5 | |
Note: These figures fluctuate with retroactive |
Copyright © 2022 Kanamoto Co., Ltd. All Rights Reserved.
Medium-Term Corporate Management Plan Priority Measures Progress
"Overseas Expansion"
The ratio of overseas rental sales by region in the Construction Equipment Rental Business expanded from 0.5% in fiscal year ended October 31, 2019 to 3.9%in fiscal year ended October 31, 2022.
We aim for further development in the medium- to long-term.
[TOPICS] 2020 October Established KANAMOTO AUSTRALIA HOLDINGS PTY LTD in Australia Made Porter Plant Group (Australia) a subsidiary company
Overseas％ Overseas％
Kyushu & | Kyushu & | ||||
Okinawa Region | Hokkaido | Hokkaido | |||
％ | Okinawa Region | ||||
14.2 | Region | ％ | Region | ||
22.2％ | 14.5 | 23.5％ | |||
West Japan | |||||
Region | FY2019 | West Japan | FY2022 | ||
13.2％ | |||||
Region | |||||
13.6％ | Tohoku | ||||
Kanto & | Tohoku | ||||
Region | |||||
Region | Kanto & Koushinetsu | ||||
Koushinetsu Region | |||||
22.2％ | |||||
27.4％ | Region | ||||
22.5％ | |||||
22.3％ | |||||
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Kanamoto Co. Ltd. published this content on 09 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 December 2022 05:16:06 UTC.
