Message from the President

I am pleased to report on the operating activities of Kanamoto Co., Ltd. during the Business Period ended October 31, 2017 and discuss our policies for the future.

During the past year, Japan’s economy maintained its second longest phase of sustained growth of the postwar period, surpassing even the “Izanagi Boom” from 1965 through 1970, and continued to exhibit considerable strengths, including a clear recovery in both domestic and overseas demand. The Nikkei Stock Average also reached a new high, 25 years after the bursting of Japan’s economic bubble.
Nevertheless, given the sustained economic results of Abenomics there is a risk as well of an economic slowdown being triggered by the impending phase of higher interest rates in monetary policy, or by the consumption tax hike planned for 2019, and in the months ahead we will need to maintain a vigilant stance regarding the future outlook.

In the domestic construction industry that is the main customer for the Kanamoto Group’s core business of construction equipment rentals, rental demand was supported by robust public works, construction in the Tokyo metropolitan area related to the Tokyo Olympics, large-scale private sector redevelopment projects, and transportation infrastructure construction for the Linear Chuo Shinkansen, and remained vigorous even as Great East Japan Earthquake restoration works entered the final phase.

On the other hand, topics such as the widening regional gap in construction works volume, frequent disaster occurrences, the shift in works from new construction to refurbishment, and labor shortages accompanying the shrinking work force have become more urgent, and with the domestic construction market forecasted to contract after 2020, we recognize that enhancing our response capabilities and further strengthening our business structure will be critical for maintaining the Kanamoto Group’s continuing growth phase.

“BULL55”, the long-term vision we are currently executing, generally is progressing with results that exceed our initial projection, and the remaining two business periods encompassing the final stages will be a vitally important wrap-up phase that will set the Kanamoto Group’s orientation for subsequent periods.
We will continue to pursue our priority policy of ensuring the optimum quantities and models of rental equipment to meet both construction demand and customers’ needs, and resolutely maintain the construction equipment rental business fundamentals of always providing convenience for customers while seeking greater operating efficiency and further productivity improvements through the operation of new systems.
In the years ahead as well, we will move forward to achieve the goal of our new long-term vision to be “an excellent and dynamic group that uses its solid earnings as a base to reward shareholders, customers and employees”.

We look forward to continuing to receive the unwavering support of our shareholders and investors and your encouragement for the Kanamoto Group in the future.

The Business Period ending October 2017 marks the halfway point toward Kanamoto's new long-term vision, and is the final fiscal year of our Medium-term Management Plan. As I take up my management position at this critical time, I pledge to resolutely maintain the Kanamoto Group's present approach and push forward to achieve the goal of our new long-term vision to be "an excellent and dynamic group that uses its solid earnings as a base to reward shareholders, customers and employees".

We look forward to continuing to receive the unwavering support of our shareholders and investors and your encouragement for the Kanamoto Group in the future.

Kanamoto’s directors, auditors and corporate officers