Feature　Complete our long-term vision “BULL55”, and move to a new growth stage

Kanamoto’s long-term vision “BULL55” – Build Up a Legendary Leading company plan for the 55th – which was formulated with the goal of the Kanamoto Group evolving into “an excellent and dynamic group that uses its solid earnings as a base to reward shareholders, customers and employees”, generally is progressing with results in line with our initial plan. The current fiscal year is the last fiscal year of the plan and will be an extremely important period for overall completion in preparation for the Company’s next growth stage.
In Japan, we are aggressively pursuing expansion of our base of operations in the Kanto and Koshinetsu regions, where large-scale projects including the Linear Chuo Shinkansen, infrastructure maintenance related to the Tokyo Olympics, and redevelopment projects are planned, and building an organization to strengthen net sales and earnings in the Tokyo metropolitan area, based on the medium to long-term demand outlook. Overseas we will proceed strategically with the creation of our overseas business base as an engine for long-term growth, centered on ASEAN countries where there is strong latent demand.
At the same time, to enhance risk resilience and ensure we can respond quickly to changes in the operating environment, we will further enhance performance management, strengthen our governance structure and strive to build a sustainable growth management structure for the long term.

Priority policies under Kanamoto’s Long-term Vision “BULL55”

• 1. Domestic
  　Expansion of domestic base of operations

  In addition to focusing on the Tokyo metropolitan area where much of Japan’s public and private sector
  demand is concentrated, Kanamoto will undertake branch development, pursue M&A, and remain on a growth track in areas west of the Kanto Region, while maintaining net sales in the Hokkaido and Tohoku regions.

• 2. Overseas
  　Overseas development

  Kanamoto will maintain or expand its existing subsidiaries in Shanghai, Hong Kong, and Singapore, further expand overseas operations in the rapidly developing ASEAN countries, and take steps to develop business
  operations in countries such as Indonesia, Thailand, Vietnam and the Philippines where demand is anticipated for
  specialized equipment for engineering works such as ground improvement and the shield tunneling method, sectors in which the Kanamoto Group possesses unique expertise.

• 3. Internal
  　Optimization of internal operational processes

  Kanamoto considers its construction equipment management system and improvements in operating efficiency to be the wellspring of the Kanamoto Group’s earnings, and seeks to increase operating efficiency and reduce costs through stronger control over rental unit prices and operational process improvements.
  Kanamoto will also further boost the efficiency of operations through the expansion of its business unit support functions and systems integration with related Group companies.

To help grasp the operating environment surrounding the Kanamoto Group, the report on the following pages looks at the domestic and overseas construction demand expected to receive short-term, concentrated investment in the future.

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