Six-Month Consolidated Financial Report
for the Fiscal Year Ending October 31, 2022 (Japan GAAP)
Listed Company Name | Kanamoto Co., Ltd. | June 3, 2022 |
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 81-11-209-1600 |
Scheduled date for submission of Quarterly Report | June 13, 2022 |
Scheduled date for commencement of dividend payments | July 4, 2022 |
Preparation of Quarterly Settlement Supplementary Explanatory Materials | Yes |
Quarterly Earnings Briefings (For institutional investors and analysts) | Yes |
(Numbers less than one million yen have been rounded down)
1. Consolidated Operating Results for the Six-Month Period of the Fiscal Year Ending October 31, 2022
(November 1, 2021 - April 30, 2022) | |||||||||||||
(1) Consolidated Operating Results (Cumulative) | (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 ending | |||||||||||||
October 31, 2022: | 93,715 | - | 7,098 | -11.9 | 7,457 | -13.5 | 4,540 | -8.2 | |||||
Second quarter | |||||||||||||
Fiscal year ended | |||||||||||||
October 31, 2021: | 95,225 | 4.2 | 8,061 | -12.8 | 8,626 | -4.6 | 4,945 | -7.5 | |||||
Second quarter | |||||||||||||
(Note) Comprehensive | income (millions | of yen) | |||||||||||
Fiscal year ending October 31, 2022, Second quarter | 6,284 | (-9.1%) | |||||||||||
Fiscal year ended October 31, 2021, Second quarter | 6,911 | (29.7%) | |||||||||||
Earnings per | Earnings per | ||||||||||||
Share on a Fully | |||||||||||||
Share | |||||||||||||
Diluted Basis | |||||||||||||
Yen | Yen | ||||||||||||
Fiscal year ending | |||||||||||||
October 31, 2022: | 121.54 | - | |||||||||||
Second quarter | |||||||||||||
Fiscal year ended | |||||||||||||
October 31, 2021: | 130.81 | - | |||||||||||
Second quarter |
(Notes) 1. The Company applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter of the fiscal year ending October 31, 2022, and the figures for the second quarter of the fiscal year ending October 31, 2022 are figures after the application of the said accounting standard. As a result, the percentage of change for net sales from the same period of the previous year is not shown.
2. In the previous fiscal year, the Company finalized the provisional accounting treatment for business combinations, and the figures for the second quarter of the fiscal year ended October 31, 2021 reflect the finalized content of the provisional accounting treatment.
- Consolidated Financial Position
Total Assets | Net Assets | Equity Ratio | ||||
Millions of yen | Millions of yen | % | ||||
As of April 30, | 304,810 | 137,512 | 42.4 | |||
2022 | ||||||
As of October 31, | 303,754 | 134,917 | 41.8 | |||
2021 | ||||||
(Reference) Equity (millions of yen) | ||||||
As of April 30, 2022 | 129,135 | |||||
As of October 31, 2021 | 126,956 |
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(Note) The Company applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the beginning of the first quarter of the fiscal year ending October 31, 2022, and the figures as of April 30, 2022 are figures after the application of the said accounting standard.
2. Dividends
Annual Dividends per Share | |||||||||
End of | End of | End of | Year-end | Full-year | |||||
first quarter | second quarter | third quarter | |||||||
Yen | Yen | Yen | Yen | Yen | |||||
Fiscal year ended October 31, | - | 25.00 | - | 45.00 | 70.00 | ||||
2021 | |||||||||
Fiscal year ending October 31, | - | 35.00 | |||||||
2022 | |||||||||
Fiscal year ending October 31, | - | 40.00 | 75.00 | ||||||
2022 (projected) | |||||||||
(Note) Has the Company revised its | most recently released dividend projection?: No |
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 | |
Full year | 191,100 | - | 15,600 | 6.7 | 15,800 | 2.7 | 9,700 | 8.9 | 259.65 |
(Notes) 1. Has the Company revised its most recently released projected consolidated operating results during the quarter?: No
2. As the Company applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), 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 percentage of change for net sales from the previous fiscal year is not shown.
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Notes
- Changes in material subsidiaries during the period under review (Changes in specific subsidiaries in conjunction with a change in the scope of consolidation): No
- Application of special accounting method in the preparation of quarterly consolidated financial statements: No
- Changes in accounting principles, changes in accounting estimates and retrospective restatements
- Changes in accounting policy in conjunction with revision of accounting standards: Yes
- Changes other than the above: No
- Changes in accounting estimates: No
- Retrospective restatements: No
(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Significant Notes Thereto (4) Notes Concerning Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 13 of the Attachments.
-
Number of shares issued (common shares)
(a) Number of shares issued at the end of the period (including treasury shares)
As of April 30, 2022: | 38,742,241 shares |
As of October 31, 2021: | 38,742,241 shares |
(b) Number of treasury shares at the end of the period | |
As of April 30, 2022: | 1,799,465 shares |
As of October 31, 2021: | 924,846 shares |
(c) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year) | |
Fiscal year ending October 31, 2022: Second quarter: | 37,357,999 shares |
Fiscal year ended October 31, 2021: Second quarter: | 37,810,252 shares |
Note: Quarterly earnings reports are not subject to quarterly review by certified public accountants or independent account auditors.
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. Qualitative Information Concerning Quarterly Consolidated Operating Results (3) Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results" on page 6 of the Attachments for the conditions used as assumptions for the projected operating results and matters to note before using the projected operating results.
(Methods of obtaining the quarterly settlement supplementary explanatory materials and the content of the quarterly earnings briefings)
The Company plans to hold an online meeting for institutional investors and analysts on Monday, June 6, 2022.
Following the meeting, the Company will upload the meeting highlights and the discussion (voice recording) on the Company's website as quickly as possible, together with the quarterly earnings briefings materials used that day.
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○Attachments Table of Contents | ||
1. Qualitative Information Concerning Quarterly Consolidated Operating Results .................................. | 5 | |
(1) | Qualitative Information Concerning Consolidated Operating Results ........................................... | 5 |
(2) | Qualitative Information Concerning Consolidated Financial Position ............................................ | 6 |
(3) | Explanation Concerning Future Forecasts Including Projected Consolidated Operating Results ....... | 6 |
2. Quarterly Consolidated Financial Statements and Significant Notes Thereto ..................................... | 7 | |
(1) | Quarterly Consolidated Balance Sheets................................................................................... | 7 |
(2) | Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of | |
Comprehensive Income ........................................................................................................ | 9 | |
(Quarterly Consolidated Statements of Income) ................................................................... | 9 | |
(Consolidated Six-Month Period Ended April 30)................................................................ | 9 | |
(Quarterly Consolidated Statements of Comprehensive Income) ........................................... | 10 | |
(Consolidated Six-Month Period Ended April 30).............................................................. | 10 | |
(3) | Quarterly Consolidated Statements of Cash Flows .................................................................. | 11 |
(4) | Notes Concerning Quarterly Consolidated Financial Statements ............................................... | 13 |
(Notes Relating to the Going Concern Assumption) ............................................................. | 13 | |
(Note on Significant Changes to Shareholders' Equity)......................................................... | 13 | |
(Changes in Accounting Policies)....................................................................................... | 13 | |
(Supplemental Information) ............................................................................................. | 14 | |
(Segment Information).................................................................................................... | 14 |
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1.Qualitative Information Concerning Quarterly Consolidated Operating Results
(1) Qualitative Information Concerning Consolidated Operating Results
During the six-month period under review, Japan's economy showed signs of picking up due to measures against infection and the easing of restrictions on economic activity despite the continuing impact of COVID-19. However, amid downside risk becoming more apparent due to semiconductor supply shortages, rising raw material prices, etc., uncertainties are intensifying against the backdrop of factors such as the deterioration of the situation in Ukraine.
In the construction industry in which the Group is involved, although public sector investment remained steady and private sector construction investment has shown signs of gradual recovery, difficulties are increasing in the environment surrounding the industry as rising material and energy prices as well as the shortage of skilled construction workers are becoming increasingly more severe.
In such circumstances, based on the three key measures in the Medium-Term Corporate Management Plan "Creative 60" (FY2020-2024), the Group is strengthening the Alliance Group's foundations and working to further develop business through synergistic effects within the Group. In addition, the Group is committed to sustainable development and the enhancement of corporate value through the promotion of flexible investment strategy that responds to actual demand, and the acceleration of the improvement of capital efficiency.
For the six-month period under review, the Group reported net sales of ¥93,715 million. On the earnings front, partly due to an increase in selling, general and administrative expenses caused by investment in human resources in preparation for the future, operating profit decreased 11.9% from the same period of the prior fiscal year to ¥7,098 million, ordinary profit declined 13.5% to ¥7,457 million, and profit attributable to owners of parent decreased 8.2% to ¥4,540 million.
Please note that 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 first quarter. For details, please refer to "2. Quarterly Consolidated Financial Statements and Significant Notes Thereto
- Notes Concerning Quarterly Consolidated Financial Statements (Changes in Accounting Policies)." Operating results for each of the Company's business segments were as follows.
< Business related to the Construction Equipment Rental Division >
In the construction-related business, which is Kanamoto's core business, although performance remained steady, primarily in disaster prevention and reduction and activities being carried out for Japan's National Resilience Plan as well as maintenance and renewal of aging social capital, a full-scale recovery in rental demand for construction equipment did not eventuate as some regional disparities in construction demand became more apparent.
In addition, the Group is strengthening its ability to respond to the fields of maintenance and repair of social capital and renewable energy in light of medium- to long-term changes in the construction market in addition to promoting the acceleration of digital transformation as well as technological development and business alliances for customers' diversifying needs despite the promotion of the appropriate deployment and efficient operation of rental equipment.
Used construction equipment sales decreased 5.8% year on year, as Kanamoto has carried out the extension of the rental equipment operation period as planned at the beginning of the fiscal year.
Reflecting these factors, the Group posted net sales in the construction-related businesses of ¥85,417 million, and operating profit of ¥6,293 million, a decrease of 13.6% year on year.
< Other businesses >
In the Group's other businesses, net sales was ¥8,297 million and operating profit increased by 2.8% year on year to ¥559 million, as the business related to the Steel Sales Division as well as the business related to the Information Products Division and welfare-related business performed well.
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Kanamoto Co. Ltd. published this content on 10 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 June 2022 04:51:03 UTC.