Kanamoto : Fiscal Year ended Oct, 2024 (Full Year)

Fiscal Year Ended October 31, 2024

Financial Statements Bulletin (Japan GAAP)

Listed Company Name	Kanamoto Co., Ltd.	December 6, 2024
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 Shareholders	January 23, 2025
Scheduled date for commencement of dividend payments	January 24, 2025
Scheduled date for submission of Annual Securities Report	January 23, 2025
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, 2024 (November 1, 2023 - October 31, 2024)

	(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	207,218		4.9	14,569	21.8		15,218	21.9			9,013	34.1
	October 31, 2024
	Fiscal year ended	197,481		5.0	11,958	-9.6		12,488	-9.4			6,721	-19.5
	October 31, 2023
	(Note) Comprehensive	income (millions	of yen)
	Fiscal year ended October 31, 2024		10,565	(25.6%)
	Fiscal year ended October 31, 2023		8,410	(-21.2%)
		Earnings per	Earnings per			Ordinary Profit to	Operating
		Share on a Fully	ROE
		Share	Total Assets	Margin
		Diluted Basis
		Yen			Yen			%		%		%
	Fiscal year ended	253.72			-			6.6		4.8		7.0
	October 31, 2024
	Fiscal year ended	185.40			-			5.0		4.0		6.1
	October 31, 2023

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

	Fiscal year ended October 31, 2024	−
	Fiscal year ended October 31, 2023	−
	(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,		322,853		149,713	43.4	3,950.40
	2024
	As of October 31,		316,440		143,677	42.5	3,729.73
	2023
	(Reference) Equity (millions of yen)
	As of October 31, 2024	140,008
	As of October 31, 2023	134,495

− 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	41,696	-2,729	-33,529	50,586
October 31, 2024
Fiscal year ended	37,960	-6,699	-33,995	45,093
October 31, 2023

2. Dividends

				Annual Dividends per Share		Dividends in	Dividend	Dividends on
			End of	End of	End of
					Total	Payout Ratio	Net Assets
			first	second	third	Year-end	Full-year
			(Full Year)	(Consolidated)	(Consolidated)
			quarter	quarter	quarter
			Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
	Fiscal year ended	-	35.00	-	40.00	75.00	2,704	40.5	2.1
	October 31, 2023
	Fiscal year ended	-	35.00	-	45.00	80.00	2,831	31.5	2.1
	October 31, 2024
	Fiscal year ending
	October 31, 2025	-	40.00	-	40.00	80.00		30.0
	(projected)
(Note)	Breakdown	of year-end dividend for the fiscal year ended October 31, 2024 (yen)
		Ordinary dividend			40.00
		60th anniversary commemorative dividend	5.00

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2025 (November 1, 2024 - October 31, 2025)

(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	102,500	1.8	6,600	6.6	6,600	2.2	3,900	7.6	111.19
Full year	211,100	1.9	15,100	3.6	15,300	0.5	9,300	3.2	266.49

(Note) At a meeting of the Board of Directors held on December 6, 2024, 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, 2025 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, 2024:	38,742,241 shares
As of October 31, 2023:	38,742,241 shares
(b) Number of treasury shares at the end of the period
As of October 31, 2024:	3,300,670 shares
As of October 31, 2023:	2,681,810 shares

1. Average number of shares outstanding during the period Fiscal year ended October 31, 2024: 35,525,825 shares Fiscal year ended October 31, 2023: 36,254,078 shares
2. • 2 −

(Reference) Summary of Non-Consolidated Operating Results

1. Non-Consolidated Operating Results for the Fiscal Year Ended October 31, 2024 (November 1, 2023 - October 31, 2024)

	(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	129,290	8.2	8,268		43.6	9,350		38.1	6,361	77.3
	October 31, 2024
	Fiscal year ended	119,441	3.2	5,759		-10.9	6,772		-9.2	3,588	-27.6
	October 31, 2023
		Earnings per Share	Earnings per Share
		on a Fully Diluted Basis
			Yen			Yen
	Fiscal year ended		179.07			-
	October 31, 2024
	Fiscal year ended		98.99			-
	October 31, 2023
	(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,	231,748	109,555			47.3	3,091.17
	2024
	As of October 31,	230,535	107,003			46.4	2,967.35
	2023
	(Reference) Equity (millions of yen)
	As of October 31, 2024		109,555
	As of October 31, 2023		107,003

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 9, 2024. 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, 2023	As of October 31, 2024
Assets
Current assets
Cash and deposits	45,611	51,104
Notes and accounts receivable - trade,	41,048	43,478
and contract assets
Electronically recorded monetary claims -	11,474	10,562
operating
Merchandise and finished goods	1,442	1,634
Raw materials and supplies	1,574	1,631
Construction machine parts	15,962	15,095
Other	3,453	3,373
Allowance for doubtful accounts	-269	-204
Total current assets	120,298	126,675
Non-current assets
Property, plant and equipment
Rental equipment	308,318	322,689
Accumulated depreciation	-197,632	-211,172
Rental equipment, net	110,685	111,516
Buildings and structures	47,935	49,597
Accumulated depreciation	-27,522	-29,018
Buildings and structures, net	20,413	20,579
Machinery, equipment and vehicles	10,550	10,876
Accumulated depreciation	-8,798	-9,143
Machinery, equipment and vehicles,	1,752	1,733
net
Land	39,511	39,608
Other	4,091	4,268
Accumulated depreciation	-2,476	-2,636
Other, net	1,614	1,632
Total property, plant and equipment	173,977	175,070
Intangible assets
Goodwill	3,163	2,558
Customer relationship	1,244	1,181
Other	1,369	1,093
Total intangible assets	5,778	4,833
Investments and other assets
Investment securities	10,637	11,450
Deferred tax assets	2,013	1,449
Long-term loans receivable	1,702	1,049
Other	2,508	2,699
Allowance for doubtful accounts	-476	-376
Total investments and other assets	16,386	16,272
Total non-current assets	196,141	196,177
Total assets		316,440	322,853

− 4 −

			(Millions of yen)
		As of October 31, 2023	As of October 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade	36,077	33,728
Short-term borrowings	900	720
Current portion of long-term borrowings	14,600	21,331
Lease liabilities	1,645	1,706
Income taxes payable	2,657	3,517
Provision for bonuses	1,676	1,703
Accounts payable - other	26,075	25,235
Other	3,992	4,875
Total current liabilities	87,624	92,817
Non-current liabilities
Long-term borrowings	35,796	32,402
Lease liabilities	3,626	3,708
Long-term accounts payable - other	42,324	41,088
Retirement benefit liability	354	352
Asset retirement obligations	686	722
Deferred tax liabilities	2,288	1,894
Other	60	153
Total non-current liabilities	85,139	80,322
Total liabilities	172,763	173,140
Net assets
Shareholders' equity
Share capital	17,829	17,829
Capital surplus	19,432	19,546
Retained earnings	97,842	104,177
Treasury shares	-5,906	-7,670
Total shareholders' equity	129,198	133,883
Accumulated other comprehensive income
Valuation difference on available-for-sale	2,983	3,586
securities
Deferred gains or losses on hedges	0	0
Foreign currency translation adjustment	2,343	2,576
Remeasurements of defined benefit plans	-30	-37
Total accumulated other comprehensive	5,296	6,125
income
Non-controlling interests	9,181	9,705
Total net assets	143,677	149,713
Total liabilities and net assets		316,440	322,853

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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, 2023	October 31, 2024
Net sales	197,481	207,218
Cost of sales	140,630	146,989
Gross profit	56,850	60,228
Selling, general and administrative expenses	44,892	45,659
Operating profit	11,958	14,569
Non-operating income
Interest income	70	111
Dividend income	211	236
Insurance claim income	69	63
Rental income	77	73
Temporary transfer charges income	57	58
Foreign exchange gains	111	222
Reversal of allowance for doubtful accounts	83	58
Other	316	314
Total non-operating income	998	1,137
Non-operating expenses
Interest expenses	127	171
Loss on cancellation of leases	39	46
Waste disposal costs	73	75
Other	228	195
Total non-operating expenses	468	489
Ordinary profit	12,488	15,218
Extraordinary income
Gain on sale of non-current assets	57	49
Gain on sale of shares of subsidiaries and	0	1
associates
Gain on sale of investment securities	221	-
Gain on receipt of donated non-current	7	-
assets
Subsidy income	-	41
Total extraordinary income	287	92
Extraordinary losses
Impairment losses	195	88
Loss on sale and retirement of non-current	467	221
assets
Loss on valuation of investment securities	6	-
Total extraordinary losses	668	310
Profit before income taxes	12,106	15,000
Income taxes - current	4,480	5,384
Income taxes - deferred	184	-122
Total income taxes	4,664	5,262
Profit	7,441	9,738
Profit attributable to non-controlling interests	720	725
Profit attributable to owners of parent		6,721	9,013

− 6 −

(Consolidated Statements of Comprehensive Income)

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	October 31, 2023	October 31, 2024
Profit	7,441	9,738
Other comprehensive income
Valuation difference on available-for-sale	814	600
securities
Deferred gains or losses on hedges	0	0
Foreign currency translation adjustment	144	233
Remeasurements of defined benefit plans,	9	-7
net of tax
Total other comprehensive income	968	826
Comprehensive income	8,410	10,565
Comprehensive income attributable to
Comprehensive income attributable to	7,675	9,842
owners of parent
Comprehensive income attributable to non-	734	722
controlling interests

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(3) Consolidated Statements of Changes in Equity

Prior 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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Current fiscal year (From November 1, 2023 to October 31, 2024)

(Millions of yen)

					Shareholders' equity
	Share capital		Capital surplus		Retained earnings	Treasury shares		Total shareholders'
					equity
Balance at beginning of	17,829			19,432			97,842		-5,906			129,198
period
Changes during period
Dividends of surplus								-2,679						-2,679
Profit attributable to								9,013						9,013
owners of parent
Change in ownership
interest of parent due
to transactions with					88									88
non-controlling
interests
Purchase of treasury										-2,000			-2,000
shares
Restricted stock					25						236			261
compensation
Net changes in items
other than
shareholders' equity
Total changes during		-			113			6,334		-1,763			4,684
period
Balance at end of period	17,829			19,546			104,177		-7,670			133,883
		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	2,983		0	2,343			-30	5,296	9,181	143,677
period
Changes during period
Dividends of surplus										-				-2,679
Profit attributable to										-				9,013
owners of parent
Change in ownership
interest of parent due
to transactions with										-				88
non-controlling
interests
Purchase of treasury										-				-2,000
shares
Restricted stock										-				261
compensation
Net changes in items
other than	602		0	233			-7	828		523	1,352
shareholders' equity
Total changes during	602		0	233			-7	828		523	6,036
period
Balance at end of period	3,586		0	2,576			-37	6,125	9,705	149,713

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(4) Consolidated Statements of Cash Flows

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		October 31, 2023	October 31, 2024
Cash flows from operating activities
Profit before income taxes	12,106	15,000
Depreciation	34,252	35,625
Impairment losses	195	88
Amortization of goodwill	638	649
Loss (gain) on sale and retirement of non-	409	171
current assets
Cost transfer resulting from sale of rental	1,217	1,228
equipment
Purchase of construction equipment and	-1,059	-2,163
materials
Purchase of rental equipment	-5,623	-4,225
Loss (gain) on sale of investment securities	-221	-
Loss (gain) on valuation of investment	6	-
securities
Loss (gain) on sale of shares of subsidiaries	-0	-1
and associates
Increase (decrease) in allowance for	-100	-167
doubtful accounts
Increase (decrease) in provision for bonuses	65	26
Increase (decrease) in retirement benefit	-6	-13
liability
Interest and dividend income	-281	-347
Assets buy on the installment plan purchase	662	867
payment interest for rentals
Interest expenses	127	171
Foreign exchange losses (gains)	-104	-224
Decrease (increase) in accounts receivable -	-5,456	-1,490
trade, and contract assets
Decrease (increase) in inventories	223	-289
Increase (decrease) in trade payables	2,017	-2,538
Increase (decrease) in accounts payable -	2,454	1,886
other
Other, net	625	2,580
Subtotal	42,147	46,837
Interest and dividends received	278	345
Interest paid	-790	-1,045
Income taxes paid	-3,674	-4,440
Net cash provided by (used in) operating	37,960	41,696
activities

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