Kanamoto : Notification Concerning Revision of Projected Full-Year Operating Results for the Fiscal Year Ending October 31, 2022

Notification Concerning Revision of Projected Full-Year Operating Results for the Fiscal Year Ending October 31, 2022 2022/09/02 on Japan | Page. 1/1

Friday, September 2, 2022

FOR IMMEDIATE RELEASE

Kanamoto Co., Ltd.

Stock Code 9678

Tokyo Stock Exchange Prime Market, Sapporo Stock Exchange

President and CEO	Tetsuo
	Kanamoto
Director and Corporate Officer, Division	Shun Hirose
Manager, Accounting Division and
General Manager, Public Relations Office
Telephone: [phone]

Notification Concerning Revision of Projected Full-Year Operating

Results for the Fiscal Year Ending October 31, 2022

Kanamoto Co., Ltd. has made the following revisions to its projected operating results for the fiscal year ending October 31, 2022 (November 1, 2021 - October 31, 2022) released on December 10, 2021, based on recent market trends and currently available information.

1. Revised projected figures for full-year consolidated operating results for the fiscal year ending October 31, 2022

(November 1, 2021 - October 31, 2022)

(Unit: Millions of yen except earnings per share, which is in yen)

							Operating			Ordinary			Profit			Earnings
			Net Sales							Attributable
					Profit			Profit			to Owners of			per Share
															Parent
Prior projection	( A )	1 9 1	, 1 0 0	1 5	, 6 0 0	1 5	, 8 0 0	9	, 7 0 0	2 5 9 . 6 5
Revised projection	( B )		1 8 6	, 9 0 0		1 3	, 5 0 0		1 4	, 0 0 0		8	, 6 0 0		2 3 1 . 0 7
Increase/decrease	( B - A )	- 4	, 2 0 0	- 2	, 1 0 0	- 1	, 8 0 0	- 1	, 1 0 0		―
Percent change	( % )		- 2 . 2 %		- 1 3 . 5 %			- 11 . 4 %			- 11 . 3 %			―
Prior fiscal year	1 8 9	, 4 1 6	1 4	, 6 2 4	1 5	, 3 9 1	8	, 9 0 7	2 3 5 . 5 5
(Reference) (Fiscal year ended
October 31, 2021)

(Note) As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year ending October 31, 2022, the results for the prior fiscal year are presented using the results prior to the application of the accounting standard and relevant ASBJ regulations.

Notification Concerning Revision of Projected Full-Year Operating

Results for the Fiscal Year Ending October 31, 2022

Page. 2/2

2. Revised projected figures for full-yearnon-consolidated operating results for the fiscal year ending October 31, 2022

(November 1, 2021 - October 31, 2022)

(Unit: Millions of yen except earnings per share, which is in yen)

			Net Sales			Ordinary			Profit			Earnings
					Profit					per Share
Prior projection	( A )	11 7	, 2 0 0	9	, 6 0 0	6	, 5 0 0	1 7 5 . 7 0
Revised projection	( B )		11 4	, 8 0 0		7	, 8 0 0		5	, 3 0 0		1 4 2 . 4 0
Increase/decrease	( B - A )	- 2	, 4 0 0	- 1	, 8 0 0	- 1	, 2 0 0		―
Percent change	( % )		- 2 . 0 %		- 1 8 . 8 %			- 1 8 . 5 %			―
Prior fiscal year	11 7	, 6 8 7	8	, 4 7 1	5	, 3 9 2	1 4 2 . 6 1
(Reference) (Fiscal year ended
October 31, 2021)

(Note) As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the fiscal year ending October 31, 2022, the results for the prior fiscal year are presented using the results prior to the application of the accounting standard and relevant ASBJ regulations.

3. Reasons for the revision

In the construction industry related to the Kanamoto Group, the trend in public works spending is expected to remain steady and the trend in private sector construction investment is expected to show signs of recovery for the balance of the fiscal year ending October 31, 2022 amid the impact of global inflation for society as a whole as well as COVID-19. A full-scale recovery of construction equipment rental demand, however, is expected to take somewhat longer due to factors such as variations by region.

Furthermore, operating profit, ordinary profit, and profit attributable to owners of parent are projected to be lower than initially planned as well, reflecting the trend for rental demand in addition to the effect of the increase of investment into the human resources who will be responsible for future growth. In light of these factors, the Company decided to revise its projected full-year consolidated operating results.

End