Kanamoto : Fiscal Year ended October 31, 2021 Financial Statements Bulletin (Japan GAAP)

Fiscal Year ended October 31, 2021

Financial Statements Bulletin (Japan GAAP)

Listed Company Name	Kanamoto Co., Ltd.	December 10, 2021
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 27, 2022
Scheduled date for commencement of dividend payments	January 28, 2022
Scheduled date for submission of Annual Securities Report	January 27, 2022
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, 2021

(November 1, 2020 - October 31, 2021)

(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	189,416		5.8	14,624		2.6		15,391	7.9			8,907	5.2
	October 31, 2021
	Fiscal year ended	179,053		-0.9	14,250		-20.1		14,268	-21.9			8,466	-25.9
	October 31, 2020
	(Note) Comprehensive	income (millions	of yen)
	Fiscal year ended October 31, 2021			11,174	(25.1%)
	Fiscal year ended October 31, 2020			8,936	(-24.1%)
			Earnings per		Earnings per					Ordinary Profit to		Operating
				Share on a Fully		ROE
			Share				Total Assets		Margin
				Diluted Basis
			Yen				Yen				%			%			%
	Fiscal year ended	235.55				-				7.2			5.1			7.7
	October 31, 2021
	Fiscal year ended	221.45				-				7.2			5.0			8.0
	October 31, 2020
	(Reference)	Investment	profit or loss accounted for by the equity method (millions of yen)
		Fiscal year ended October 31, 2021	−
		Fiscal year ended October 31, 2020	−
(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,	303,754		134,917				41.8			3,357.10
	2021
	As of October 31,	301,533		126,188				39.5			3,150.30
	2020
	(Reference)	Equity (millions of yen)
		As of October 31, 2021	126,956
		As of October 31, 2020	119,091

(Note) In the fiscal year ended October 31, 2021, the Company finalized the provisional accounting treatment for business combinations, and the figures for the fiscal year ended October 31, 2020 reflect the finalized content of the provisional accounting treatment.

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(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	39,351	-3,373	-28,794	55,557
October 31, 2021
Fiscal year ended	40,701	-14,040	-22,204	48,023
October 31, 2020

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	-	25.00	-	40.00	65.00	2,468	29.4	2.1
October 31, 2020
Fiscal year ended	-	25.00	-	45.00	70.00	2,647	29.7	2.2
October 31, 2021
Fiscal year ending
October 31, 2022	-	35.00	-	40.00	75.00		28.6
(projected)

3. Projected Consolidated Operating Results for the Fiscal Year Ending October 31, 2022 (November 1, 2021 - October 31, 2022)

(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	95,500	-	8,200	1.0	8,300	-4.4	5,100	3.2	137.85
Full year	191,100	-	15,600	6.7	15,800	2.7	9,700	8.9	262.19

(Notes)1. As the Company will apply the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc. from the beginning of the fiscal year ending October 31, 2022, the above projected consolidated operating results are after the application of the said accounting standard. As a result, the percentages for net sales for the previous fiscal year and the same period of the previous year are not shown.

2. At a meeting of the Board of Directors held on December 10, 2021, 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, 2022 takes into account the impact of this acquisition of own shares. Please refer to "Material Events after the Close of the Consolidated Fiscal Year" on page 24 of the Attachments for more information on the acquisition.

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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, 2021:	38,742,241 shares
As of October 31, 2020:	38,742,241 shares
(b) Number of treasury shares at the end of the period
As of October 31, 2021:	924,846 shares
As of October 31, 2020:	939,142 shares
(c) Average number of shares outstanding during the period
Fiscal year ended October 31, 2021:	37,813,895 shares
Fiscal year ended October 31, 2020:	38,232,825 shares

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(Reference) Summary of Non-Consolidated Operating Results

1. Non-Consolidated Operating Results for the Fiscal Year Ended October 31, 2021

(November 1, 2020 - October 31, 2021)

(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	117,687	-0.8	7,503		-8.2	8,471	-2.7	5,392	-7.9
	October 31, 2021
	Fiscal year ended	118,654	-2.7	8,170		-29.1	8,702	-30.1	5,856	-30.3
	October 31, 2020
		Earnings per Share	Earnings per Share
		on a Fully Diluted Basis
			Yen			Yen
	Fiscal year ended		142.61			-
	October 31, 2021
	Fiscal year ended		153.18			-
	October 31, 2020
(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,	229,544	107,480		46.8	2,842.10
	2021
	As of October 31,	232,009	103,802		44.7	2,745.86
	2020
	(Reference) Equity (millions of yen)
	As of October 31, 2021		107,480
	As of October 31, 2020		103,802

2. Projected Non-Consolidated Operating Results for the Fiscal Year Ending October 31, 2022 (November 1, 2021 - October 31, 2022)

(Percentages show the change from prior year)

	Net Sales		Ordinary Profit	Profit		Earnings per Share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Interim period	58,300	-	4,800	6.5	3,200	8.6	86.50
Full year	117,200	-	9,600	13.3	6,500	20.5	175.70

(Notes)1. As the Company will apply the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc. from the beginning of the fiscal year ending October 31, 2022, the above projected consolidated operating results are after the application of the said accounting standard. As a result, the percentages for net sales for the previous fiscal year and the same period of the previous year are not shown.

2. At a meeting of the Board of Directors held on December 10, 2021, 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, 2022 takes into account the impact of this acquisition of own shares. Please refer to "Material Events after the Close of the Consolidated Fiscal Year" on page 24 of the Attachments for more information on the acquisition.

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. Please refer to "1. Overview of Operating Results and Others (4) Future Outlook" on page 9 of the Attachments for the conditions used as assumptions for the projected operating results and matters to note before using the projected operating results.

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(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 13, 2021. 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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