CSR Report

Practice CSR activities as the core of operations.
Strive to improve trust and corporate value as a company responsible for the future.

Overview of CSR at Kanamoto

Kanamoto conducts its business activities with the goal of being a "firm trusted by society and entrusted with society's future." Currently these business activities are being accomplished with the support of many stakeholders, beginning with our shareholders and investors but also encompassing groups as diverse as our customers, employees and local communities, while showing growth overseas. We believe that building a deep relationship of trust with stakeholders, supported by proper corporate activities, is indispensable for accomplishing our mission and achieving sustainable growth. Kanamoto has positioned "CSR (Corporate Social Responsibility)" at the heart of its corporate management and is committed to its practice.

Working to further improve corporate value under the simple yet strong philosophy
"contribute to society"

The foundation for a relationship of trust with stakeholders is formed by the fundamental corporate activities demanded by society, including compliance, corporate governance and disclosure. For Kanamoto, these are nothing new. That's because our business operations have always assumed "contributing to society through equitable and appropriate corporate activities" as a starting point, and we have always conducted our business with this firmly in mind. Our approach to environmental protection has been the same, and we have always promoted this policy proactively through actions such as the early introduction of equipment models that meet anti-pollution statutes.
Together with the creation of earnings, which is our intrinsic purpose as a firm, we will continue devoting ourselves to fulfilling our social responsibilities and further increasing our corporate value in the future, through systematic CSR activities at every company of the Kanamoto Group.

The level of awareness of each and every employee increases a firm's "social value".

Actively implementing legal compliance training activities with the goal of spreading a compliance outlook

Establishing a compliance organization and working incessantly to strengthen employee training and compliance systems are absolute prerequisites for fulfilling a firm's social responsibilities. Kanamoto has prepared ethics rules to serve as a standard concerning compliance, and taken steps to strengthen observance of laws and ethics regulations throughout the entire organization, centered on a Compliance Committee chaired by Kanamoto's President and CEO. The Company works to ensure every individual is thoroughly familiar with these guidelines, and manages its organization in accordance with these materials. Efforts include preparing a handbook detailing the Company's employee conduct standards, which we distribute to every employee, and creating an environment where employees can access compliance information easily using Kanamoto's Intranet.
We also have actively undertaken measures to strengthen our compliance organization, including the creation of an information desk within the Company to receive consultations and reports concerning violations of the law or employee misconduct.

Strengthening Kanamoto's corporate governance system to improve sound management

Kanamoto recognizes that corporate governance is the foundation for increasing the value of Kanamoto's operations to society, and is working aggressively to improve the efficiency and soundness of its management.
For management decision-making, we further increased management transparency by introducing the outside director system, and clarified supervisory authority and responsibilities for the execution of Company activities through the introduction of a corporate officer system. In addition, Kanamoto shortened the term of office for directors from two years to one year, creating a more flexible management organization. To audit its management activities, the Company has adopted an Audit Committee system. The Audit Committee is composed of six members (four of whom are outside auditors). This committee fulfills an important role in strengthening Kanamoto's corporate governance organization. It regularly participates in meetings of the Board of Directors, gathers information as a liaison between the Auditing Office and the outside auditing firm, conducts internal audits on all aspects of the Company's businesses, and audits the legality and appropriateness of directors' duties throughout the Group.

Kanamoto's corporate governance organization

Enhancement and operation of a company-wide internal control system

To respond appropriately and implement measures to prevent a recurrence if unforeseen circumstances that will have a serious effect on Company operations have occurred or might occur, the Company has prepared an Emergency Response Manual (Contingency Plan). One measure for further clarifying these activities is Kanamoto's "internal controls reporting system," which all of the Company's employees have been united in supporting since the system was placed into full-scale operation.
To ensure the effectiveness of Kanamoto's company-wide internal controls and each activity process, during the Business Period ended October 2014, guidance and training programs were conducted by the Internal Control and Auditing Office at 53 offices, and internal controls similar to Kanamoto's were also established and put into operation at Kanamoto Group companies. We will respond resolutely at every company when applying the internal control audit report system in the future.

Disclosure that is fair, highly transparent, and timely.
All three conditions must be met if stakeholders are to evaluate Kanamoto properly.

Enhance fair and speedy disclosure and IR activities

Kanamoto has always practiced fair, highly transparent and prompt information disclosure. To release information on a timely basis, Kanamoto posts information on the Tokyo Stock Exchange TDnet system, while also reporting it promptly on Kanamoto's website, where English translations of the documents disclosing the information are also made available. All materials providing information about the Company and the Kanamoto Group, including videos of the Company's financial statement briefings and briefing materials distributed to participants, the Kanamoto Examiner issued quarterly to shareholders, and the Annual Report, can be viewed on the Company's website.
Kanamoto also considers direct conversations with its stakeholders to be an important aspect of its disclosure efforts. Kanamoto actively exhibits at IR events, including the Tokyo Stock Exchange IR Fair for individual investors, Sapporo Stock Exchange individual investor briefing meetings and the Nikkei IR Fair for individual investors, and holds company briefings throughout Japan each year. Kanamoto also holds quarterly briefings with securities analysts and domestic institutional investors, and devotes efforts to implementing IR activities overseas.

Bolster proper control and security of personal information

Kanamoto handles a vast amount of personal information pertaining to clients, shareholders and investors and other stakeholders. Accordingly, the Company formulated a Privacy Policy (Personal Information Protection Policy) to ensure appropriate management of this data. We also have a reliable system in place for responses and countermeasures in the event personal data is leaked outside the Company.
One example of Kanamoto's commitment to personal data protection is its use of the latest encryption technologies to strengthen Internet security and protect information sent to individuals making inquiries via the Company's website.

Kanamoto encourages its employees to foster and make use of their unique personalities and capabilities to the greatest extent possible. Because our "human resources" are the very driver of sustainable growth.

Measures to upgrade safety and health systems

One effort Kanamoto has strengthened is safety training, and we have created a system for preventing worker accidents that is spearheaded by the Safety and Health Office, which reports to the company president. This body regularly implements in-house training courses and audits, and works to raise safety and health awareness, and during the Business Period ended October 2014 covered all of Kanamoto's offices in combination with the safety patrols operated by the safety and health working groups at 79 offices.
These activities to strengthen Kanamoto's safety and health systems and eliminate accidents have proven successful, and as a result, the number of branches that have achieved a zero accident rate for a continuous period of at least three years has increased to 126 branches. The best record is held by 22 branches that have not suffered any accidents for a period of at least 20 years.

Emphasizing personnel training for Kanamoto's future

Kanamoto considers well-trained personnel who possess high-level knowledge and skills to be the force driving sustained growth. Kanamoto therefore has created an organization that encourages and nurtures the capabilities of each employee to the maximum extent, by implementing personnel training and development programs attuned to individuals with management duties and those responsible for maintenance and repairs.
Given the need for employees to have numerous qualifications for technical work and maintenance and repairs in particular, Kanamoto works diligently to train individuals engaged in these areas. In addition to providing in-house maintenance and repair training, Kanamoto has expanded its training system to support the acquisition of maintenance technology through participation in manufacturer-sponsored maintenance and repair training, and encourages employees to obtain advanced qualifications.

Number of Repair Qualified Technicians and Operation Qualified Technicians (As of February 2015)

Kanamoto will continue implementing effective environmental conservation activities for our biggest stakeholder – the Earth.

"Equipment rentals" are an environmentally-conscious business

Rental is a service that enables customers to use equipment through "time sharing." So we might say rentals are an environmentally-friendly business, because the more rentals are used, the more effective the use of a resource. Consequently, rental equipment is linked to energy savings and resource conservation by society, and can be viewed as one solution to environmental problems.
As described below, Kanamoto strives to maintain an ample inventory of environment-friendly construction equipment. Using Kanamoto, in other words, might be called an effective environmental protection measure.
To help more people gain better insight into these environmental efforts by the Company and see how Kanamoto's businesses are environmentally friendly, Kanamoto participates actively in various environmental events throughout Japan with environmental action and ecology themes.

Helping to preserve the environment while meeting customers' needs. That's Kanamoto's green activity.

At Kanamoto, we view consideration of the global environment as an important obligation for fulfilling our social responsibilities as a corporation. For many years, we have been implementing a systematic shift of rental assets to models that clear anti-pollution statutes for gas, noise and other emissions. As of 2014, 99% of the Company's rental construction equipment portfolio consists of the latest environmentally-friendly models that clear anti-pollution regulations.
Kanamoto will fulfill its responsibility to protect the environment even as we meet user needs. This is just one part of Kanamoto's green actions. In the years ahead, Kanamoto will actively continue to upgrade its inventory to equipment that utilizes "green technologies."

Aggressive introduction of fuel-efficient, low-emission vehicles, even for corporate automobiles

At Kanamoto we have actively introduced automobiles certified as fuel-efficient, low-emission vehicles for the Company's own fleet, in addition to our inventory of rental construction equipment.
Kanamoto selected hybrid automobiles as its corporate vehicles soon after the start of mass production in 1998. Since then we have continued to upgrade our fleet to these and other fuel-efficient, low-emission vehicles.

Example of environment-friendly equipment introduced by Kanamoto