Kanamoto : Fiscal Year ended Oct, 2023 (Full Year)

Fiscal Year Ended October 31, 2023

Financial Statements Bulletin (Japan GAAP)

Listed Company Name	Kanamoto Co., Ltd.	December 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 [phone]

Scheduled date for Regular General Meeting of the ShareholdersJanuary 25, 2024

Scheduled date for commencement of dividend payments	January 26, 2024
Scheduled date for submission of Annual Securities Report	January 25, 2024
Preparation of Supplementary Explanatory Materials:	Yes
Earnings Briefings (For institutional investors and analysts):	Yes

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

1. Consolidated Operating Results for the Fiscal Year Ended October 31, 2023 (November 1, 2022 - October 31, 2023)

(1)Consolidated Operating Results			(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 ended	197,481		5.0		11,958	-9.6		12,488	-9.4			6,721	-19.5
	October 31, 2023
	Fiscal year ended	188,028		-		13,229	-9.5		13,780	-10.5			8,345	-6.3
	October 31, 2022
	(Note) Comprehensive	income (millions	of yen)
	Fiscal year ended October 31, 2023			8,410	(-21.2%)
	Fiscal year ended October 31, 2022			10,676	(-4.5%)
		Earnings per	Earnings per			Ordinary Profit to	Operating
		Share on a Fully	ROE
		Share	Total Assets	Margin
		Diluted Basis
		Yen				Yen			%		%		%
	Fiscal year ended	185.40				-			5.0		4.0		6.1
	October 31, 2023
	Fiscal year ended	224.64				-			6.4		4.5		7.0
	October 31, 2022

(Reference) Investment profit or loss accounted for by the equity method (millions of yen)

Fiscal year ended October 31, 2023	−
Fiscal year ended October 31, 2022	−

(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 fiscal year ended October 31, 2022, the percentage of change for net sales from the results for the fiscal year ended October 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	Net Assets per Share
		Millions of yen		Millions of yen	%	Yen
	As of October 31,		316,440		143,677	42.5	3,729.73
	2023
	As of October 31,		305,320		140,611	43.2	3,571.98
	2022
	(Reference) Equity (millions of yen)
	As of October 31, 2023	134,495
	As of October 31, 2022	131,958

− 1 −

(3)Consolidated Cash Flows

	Net Cash Provided by	Net Cash Provided by	Net Cash Provided by	Cash and Cash
	(Used in) Operating	(Used in) Investing	(Used in) Financing	Equivalents at End of
	Activities	Activities	Activities	Period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Fiscal year ended	37,960	-6,699	-33,995	45,093
October 31, 2023
Fiscal year ended	33,158	-11,331	-30,893	47,047
October 31, 2022

2. Dividends

		Annual Dividends per Share
	End of	End of	End of
	first	second	third	Year-end
	quarter	quarter	quarter
	Yen	Yen	Yen	Yen
Fiscal year ended	-	35.00	-	40.00
October 31, 2022
Fiscal year ended	-	35.00	-	40.00
October 31, 2023
Fiscal year ending
October 31, 2024	-	35.00	-	40.00
(projected)

	Dividends in	Dividend	Dividends on
Full-year	Total	Payout Ratio	Net Assets
(Full Year)	(Consolidated)	(Consolidated)
Yen	Millions of yen	%	%
75.00	2,770	33.4	2.2
75.00	2,704	40.5	2.1
75.00		32.0

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2024 (November 1, 2023 - October 31, 2024)

(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
Interim period	101,000	3.8	5,900	10.7	6,000	9.3	3,400	16.3	95.51
Full year	205,300	4.0	14,100	17.9	14,300	14.5	8,300	23.5	234.34

(Note) At a meeting of the Board of Directors held on December 8, 2023, the Company resolved to acquire its own shares, and the "Earnings per Share" in the projected consolidated operating results for the fiscal year ending October 31, 2024 takes into account the impact of this acquisition of own shares.

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. Changes in accounting principles, changes in accounting estimates and retrospective restatements
3. 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
4. Number of shares issued (common shares)
5. 1. Number of shares outstanding at the end of the period (including treasury shares)

As of October 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 October 31, 2023:	2,681,810 shares
As of October 31, 2022:	1,799,490 shares

1. Average number of shares outstanding during the period Fiscal year ended October 31, 2023:36,254,078 shares Fiscal year ended October 31, 2022:37,148,669 shares
2. • 2 −

(Reference) Summary of Non-Consolidated Operating Results

1. Non-Consolidated Operating Results for the Fiscal Year Ended October 31, 2023

(November 1, 2022 - October 31, 2023)

(1)Non-Consolidated Operating Results	(Percentages show the change from the prior year)
		Net Sales	Operating Profit	Ordinary Profit	Profit
		Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen	%
	Fiscal year ended	119,441	3.2	5,759		-10.9	6,772	-9.2	3,588	-27.6
	October 31, 2023
	Fiscal year ended	115,714	-	6,462		-13.9	7,454	-12.0	4,959	-8.0
	October 31, 2022
		Earnings per Share	Earnings per Share
		on a Fully Diluted Basis
			Yen			Yen
	Fiscal year ended		98.99			-
	October 31, 2023
	Fiscal year ended		133.50			-
	October 31, 2022
	(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 fiscal year ended October 31, 2022, the percentage of change for net sales from
	the results for the fiscal year ended October 31, 2021, which was prior to the application of the said accounting standard,
	etc. is not shown.
(2)Non-Consolidated Financial Position
		Total Assets	Net Assets		Equity Ratio	Net Assets per Share
		Millions of yen	Millions of yen		%		Yen
	As of October 31,	230,535	107,003		46.4	2,967.35
	2023
	As of October 31,	226,854	107,392		47.3	2,906.99
	2022
	(Reference) Equity (millions of yen)
	As of October 31, 2023		107,003
	As of October 31, 2022		107,392

Note:Financial results reports are not required to be audited by certified public accountants or an audit corporation.

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.

(Methods of obtaining the supplementary materials and the content of the earnings briefings) The Company plans to hold an online meeting for institutional investors and analysts on Monday, December 11, 2023. Following the meeting, the Company will upload the meeting highlights and discussion (voice recording) on the Company's website as quickly as possible, together with the Earnings Briefings materials used that day.

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Consolidated Financial Statements

(1) Consolidated Balance Sheets

			(Millions of yen)
		As of October 31, 2022	As of October 31, 2023
Assets
Current assets
Cash and deposits	47,565	45,611
Notes and accounts receivable -	38,452	41,048
trade, and contract assets
Electronically recorded monetary	8,025	11,474
claims - operating
Merchandise and finished goods	1,729	1,442
Raw materials and supplies	1,432	1,574
Construction machine parts	17,047	15,962
Other	4,098	3,453
Allowance for doubtful accounts	-284	-269
Total current assets	118,066	120,298
Non-current assets
Property, plant and equipment
Rental equipment	282,605	308,318
Accumulated depreciation	-181,989	-197,632
Rental equipment, net	100,616	110,685
Buildings and structures	44,709	47,935
Accumulated depreciation	-26,128	-27,522
Buildings and structures, net	18,581	20,413
Machinery, equipment and vehicles	10,088	10,550
Accumulated depreciation	-8,511	-8,798
Machinery, equipment and	1,576	1,752
vehicles, net
Land	38,688	39,511
Other	4,570	4,091
Accumulated depreciation	-2,305	-2,476
Other, net	2,265	1,614
Total property, plant and	161,728	173,977
equipment
Intangible assets
Goodwill	3,810	3,163
Customer relationship	1,395	1,244
Other	1,511	1,369
Total intangible assets	6,717	5,778
Investments and other assets
Investment securities	9,699	10,637
Deferred tax assets	2,370	2,013
Long-term loans receivable	5,213	1,702
Other	2,081	2,508
Allowance for doubtful accounts	-556	-476
Total investments and other assets	18,808	16,386
Total non-current assets	187,253	196,141
Total assets		305,320	316,440

− 4 −

			(Millions of yen)
		As of October 31, 2022	As of October 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	33,714	36,077
Short-term borrowings	980	900
Current portion of long-term	13,913	14,600
borrowings
Lease liabilities	1,444	1,645
Income taxes payable	1,957	2,657
Provision for bonuses	1,579	1,676
Accounts payable - other	24,853	26,075
Other	4,022	3,992
Total current liabilities	82,465	87,624
Non-current liabilities
Long-term borrowings	34,659	35,796
Lease liabilities	3,179	3,626
Long-term accounts payable - other	41,121	42,324
Retirement benefit liability	374	354
Asset retirement obligations	657	686
Deferred tax liabilities	2,095	2,288
Other	154	60
Total non-current liabilities	82,242	85,139
Total liabilities	164,708	172,763
Net assets
Shareholders' equity
Share capital	17,829	17,829
Capital surplus	19,332	19,432
Retained earnings	94,399	97,842
Treasury shares	-3,945	-5,906
Total shareholders' equity	127,616	129,198
Accumulated other comprehensive
income
Valuation difference on available-for-	2,181	2,983
sale securities
Deferred gains or losses on hedges	-	0
Foreign currency translation	2,198	2,343
adjustment
Remeasurements of defined benefit	-37	-30
plans
Total accumulated other	4,342	5,296
comprehensive income
Non-controlling interests	8,652	9,181
Total net assets	140,611	143,677
Total liabilities and net assets		305,320	316,440

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(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

(Consolidated Statements of Income)

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	October 31, 2022	October 31, 2023
Net sales	188,028	197,481
Cost of sales	132,196	140,630
Gross profit	55,831	56,850
Selling, general and administrative	42,602	44,892
expenses

Operating profit Non-operating income

Interest income Dividend income Insurance claim income Rental income

Temporary transfer charges income Foreign exchange gains Reversal of allowance for doubtful accounts

Other

Total non-operating income Non-operating expenses

Interest expenses

Loss on cancellation of leases Waste disposal costs Compensation for damage Provision of allowance for doubtful accounts

Other

Total non-operating expenses Ordinary profit Extraordinary income

Gain on sale of non-current assets Gain on sale of investment securities Gain on sale of shares of subsidiaries and associates

Gain on revision of retirement benefit plan Gain on receipt of donated non-current assets Gain on extinguishment of tie-in shares Total extraordinary income

Extraordinary losses Impairment losses

Loss on sale and retirement of non- current assets

Loss on valuation of investment securities

Loss on valuation of shares of subsidiaries and associates Total extraordinary losses

Profit before income taxes Income taxes - current Income taxes - deferred Total income taxes Profit

Profit attributable to non-controlling interests Profit attributable to owners of parent

13,229	11,958
62	70
180	211
35	69
77	77
77	57
262	111
40	83
349	316
1,086	998
102	127
38	39
62	73
122	-
19	-
190	228
536	468
13,780	12,488
19	57
-	221
6	0
34	-
-	7
135	-
196	287
-	195
222	467
4	6
174	-
402	668
13,574	12,106
4,174	4,480
344	184
4,518	4,664
9,056	7,441
711	720
8,345	6,721

− 6 −

(Consolidated Statements of Comprehensive Income)

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	October 31, 2022	October 31, 2023
Profit	9,056	7,441
Other comprehensive income
Valuation difference on available-for-	-67	814
sale securities
Deferred gains or losses on hedges	-0	0
Foreign currency translation adjustment	1,657	144
Remeasurements of defined benefit	30	9
plans, net of tax

Total other comprehensive income Comprehensive income Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

1,620968

10,6768,410

9,9577,675

718734

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(3) Consolidated Statements of Changes in Equity

Prior fiscal year (From November 1, 2021 to October 31, 2022)

(Millions of yen)

					Shareholders' equity
	Share capital		Capital surplus		Retained earnings	Treasury shares		Total shareholders'
					equity
Balance at beginning of	17,829			19,326			89,048		-1,978			124,226
period
Cumulative effects of
changes in accounting								-0						-0
policies
Restated balance	17,829			19,326			89,048		-1,978			124,226
Changes during period
Dividends of surplus								-2,994						-2,994
Profit attributable to								8,345						8,345
owners of parent
Change in ownership
interest of parent due
to transactions with					5									5
non-controlling
interests
Purchase of treasury										-2,000			-2,000
shares
Restricted stock					0						33			33
compensation
Net changes in items
other than
shareholders' equity
Total changes during		-			6			5,350		-1,967			3,389
period
Balance at end of period	17,829			19,332			94,399		-3,945			127,616
		Accumulated other comprehensive income
	Valuation							Remeasure-		Total	Non-	Total net
	difference		Deferred	Foreign
			ments of	accumulated	controlling
	on		gains or	currency		assets
			defined		other	interests
	available-		losses on	translation
			benefit	comprehen-
	for-sale		hedges	adjustment
		plans	sive income
	securities
Balance at beginning of	2,249		0	541			-60	2,729	7,960	134,917
period
Cumulative effects of
changes in accounting														-0
policies
Restated balance	2,249		0	541			-60	2,729	7,960	134,917
Changes during period
Dividends of surplus										-				-2,994
Profit attributable to										-				8,345
owners of parent
Change in ownership
interest of parent due
to transactions with										-				5
non-controlling
interests
Purchase of treasury										-				-2,000
shares
Restricted stock										-				33
compensation
Net changes in items
other than	-67		-0	1,657			23	1,612		692	2,304
shareholders' equity
Total changes during	-67		-0	1,657			23	1,612		692	5,694
period
Balance at end of period	2,181			-	2,198			-37	4,342	8,652	140,611

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Current fiscal year (From November 1, 2022 to October 31, 2023)

(Millions of yen)

					Shareholders' equity
	Share capital		Capital surplus		Retained earnings	Treasury shares		Total shareholders'
					equity
Balance at beginning of	17,829			19,332			94,399			-3,945			127,616
period
Changes during period
Dividends of surplus								-2,739							-2,739
Profit attributable to								6,721							6,721
owners of parent
Change in scope of								-538							-538
consolidation
Change in ownership
interest of parent due
to transactions with					98										98
non-controlling
interests
Purchase of treasury											-1,999			-1,999
shares
Restricted stock					0						39			40
compensation
Net changes in items
other than
shareholders' equity
Total changes during		-			99			3,443			-1,960			1,582
period
Balance at end of period	17,829			19,432			97,842			-5,906			129,198
		Accumulated other comprehensive income
	Valuation							Remeasure-		Total		Non-	Total net
	difference		Deferred	Foreign
			ments of	accumulated	controlling
	on		gains or	currency		assets
			defined		other		interests
	available-		losses on	translation
			benefit	comprehen-
	for-sale		hedges	adjustment
		plans	sive income
	securities
Balance at beginning of	2,181			-	2,198			-37	4,342		8,652	140,611
period
Changes during period
Dividends of surplus										-					-2,739
Profit attributable to										-					6,721
owners of parent
Change in scope of										-					-538
consolidation
Change in ownership
interest of parent due
to transactions with										-					98
non-controlling
interests
Purchase of treasury										-					-1,999
shares
Restricted stock										-					40
compensation
Net changes in items
other than	802		0	144			7	953			528	1,482
shareholders' equity
Total changes during	802		0	144			7	953			528	3,065
period
Balance at end of period	2,983		0	2,343			-30	5,296		9,181	143,677

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(4) Consolidated Statements of Cash Flows

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		October 31, 2022	October 31, 2023
Cash flows from operating activities
Profit before income taxes	13,574	12,106
Depreciation	31,912	34,252
Impairment losses	-	195
Amortization of goodwill	615	638
Loss (gain) on sale and retirement of	202	409
non-current assets
Cost transfer resulting from sale of	775	1,217
rental equipment
Purchase of construction equipment and	-769	-1,059
materials
Purchase of rental equipment	-5,645	-5,623
Loss (gain) on sale of investment	-	-221
securities
Loss (gain) on valuation of investment	4	6
securities
Loss on valuation of shares of	174	-
subsidiaries and associates
Loss (gain) on extinguishment of tie-in	-135	-
shares
Loss (gain) on sale of shares of	-6	-0
subsidiaries and associates
Increase (decrease) in allowance for	45	-100
doubtful accounts
Increase (decrease) in provision for	14	65
bonuses
Increase (decrease) in retirement	24	-6
benefit liability
Interest and dividend income	-243	-281
Assets buy on the installment plan	598	662
purchase payment interest for rentals
Interest expenses	102	127
Foreign exchange losses (gains)	-238	-104
Decrease (increase) in trade receivables	520	-5,456
and contract assets
Decrease (increase) in inventories	-15	223
Increase (decrease) in trade payables	-3,736	2,017
Increase (decrease) in accounts	2,105	2,454
payable - other
Other, net	-1,280	625
Subtotal	38,601	42,147
Interest and dividends received	245	278
Interest paid	-704	-790
Income taxes paid	-4,985	-3,674
Net cash provided by (used in)	33,158	37,960
operating activities

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