Message from the President

Pursue our potential in Japan and abroad while undertaking earthquake disaster reconstruction works as our first principle.

What were Kanamoto's operating results for fiscal 2012?

During the fiscal year the global economy put downward pressure on Japan's economy, as China's growth slowed because of Europe's prolonged financial crisis. It was a year of dramatic political events as well, ranging from the U.S. presidential election to the turnover of political leadership in China. In addition, with Japan's economy still unable to break the grip of deflation, the strong yen became a drag on exporting companies, and a recovery in the business climate remained elusive.
Despite being faced with this severe management environment, for the Business Period ended October 2012 Kanamoto was able to report record revenue and earnings growth. Revenues amounted to ¥86.106 billion, operating income was ¥6.430 billion and ordinary income was ¥5.932 billion, while net income totaled ¥3.575 billion. These consolidated operating results were substantially higher than the Company's initial plan.

What were the company's main initiatives during the year?

Since the Great East Japan Earthquake two years ago, the Kanamoto Group has declared restoration and recovery of the devastated region to be its most important policy. Along with establishing a new branch in Iwate Prefecture during the fiscal year, we worked to strengthen our "response capabilities" through measures such as shifting the points where we focus our human resource and rental assets.
During the period we were able to achieve commensurate results in regions that were unaffected by the disaster as well. In particular, we believe we were able to expand the scope of our activities and significantly improve our solution function as a group by welcoming Unite Co., Ltd., a leading company in every aspect of road works, as the newest member of the Kanamoto Group.

What actions will Kanamoto pursue in the future?

As full-scale restoration work gets underway in the future, the demand for construction equipment rentals is expected to increase further as well. Kanamoto must play a key role in this restoration and recovery, and we are positioned to continue our efforts through every company in the Kanamoto Group.
In regions unaffected by the earthquake, we will strive to enhance and expand the foundation of our business in Japan through steps such as M&A and branch development in metropolitan markets and regions where the Company does not have offices, while comprehensively verifying the results.
In our overseas business we will push to expand operations in mainland China and Hong Kong and in Singapore, and we plan to develop branches in new regions with a focus on countries in Southeast Asia. Broadening earnings opportunities in newly emerging countries, which are undergoing significant development, is one of the most important measures the Kanamoto Group should emphasize. In the years ahead as well, the Kanamoto Group will maintain a focus on its overseas operations.