FINANCIAL REPORT
April 2022 - March 2023

Business Policies
1. Basic Management Policy
Amano's management philosophy is to create new values and contribute to the realization of asafe, comfortable and a wholesome society in the fields of "People & Time" and "People & Air."
Under this management philosophy and based on an optimal governance structure that responds to changes in the business environment, we will strive to maximize corporate value by
ensuring sustained growth through the creation of new businesses and markets with a mediumto long-term global perspective, in addition to expanding our existing businesses. Furthermore,
we will aim to become a company that has the trust and high regard of all the stakeholders
including customers, business partner companies, shareholders, employees and local communities by constantly returning a fair profit earned through business activities.

2. Our Medium-long Term Business Strategy
Amano launched the 9th Medium-Term Business Plan for the three years from April 2023 toMarch 2026, the detail of which is available for inspection on the Amano’s website.(https://www.amano.co.jp/en/ir/managementpolicy/plan/)[1] Basic policies
In the 9th Medium-Term Business Plan, we have set "The 4th Stage Towards a 100-year Company - Commitment to Paradigm Shift Leading to Sustainable Management" as our management concept.
Starting as a hardware manufacturer, we have grown as a company that provides total solutions including services such as software, cloud services, and consigned businesses, etc., in response to changing market needs and technological innovation. To further develop this trend,
we will promote DX in each business field and execute strategic investments in software-based
assets, IoT, AI, etc. In addition, we will improve customer convenience by enhancing the functions of standard products and further enhance our competitive advantage in terms of profitability. Furthermore, we will develop and expand our management infrastructure and work tosolve social issues such as maximizing the value of human capital and reducing environmental
impact.
Under this policy, we will expand our business performance based on the three growth drivers, aiming to achieve sales of ¥160,000 million, operating profit of ¥21,000 million, operating
profit margin (OPR) of 13%, and ROE of 12% in the fiscal year ending March 31, 2026, thefinal year of this plan.
Expansion of business performance based on the three growth drivers in the 9th Medium-TermBusiness Plan.
(i) Information Systems: Software plus cloud services(ii) Parking Systems: Proposals centric to the Data center for Systems and Management Services(ii) Clean Systems: Robot plus cloud service proposals[2] Numerical targets

Net sales
Operating profit
Operating profit ratio (%)
Ordinary profit
Net income attributable to owners of the parent company(Millions of yen)

FY 2023(year ending March 2024)
AmountYoY (%)
140,000
5.4
17,70012.1
12.6%–
18,5009.1
12,50010.7

1FY 2024(year ending March 2025)
AmountYoY (%)
150,000
7.1
19,50010.2
13.0%–
20,50010.8
13,5008.0

FY 2025(year ending March 2026)
AmountYoY (%)
160,000
6.7
21,0007.7
13.1%–
22,0007.3
14,500

7.4

3. Basic Policy on Distribution of Profits and Payment of Dividends for This Fiscal Yearand the Next
Amano places great importance on our policy of paying dividends to shareholders. Our fundamental policy to return profits to shareholders is to make appropriate performance-based
distributions and to buy back shares, as it deems necessary. We aim to maintain a dividend
payout ratio of at least 40% on a consolidated basis, a net asset dividend rate of at least 2.5%,
and a total return ratio of at least 55%.
In line with this policy, taking into account our current-year operations results, we plan to pay
a year-end dividend of ¥80 per share, and the annual per-share dividend for this fiscal year
will be ¥110 (including ¥30 per share paid as the interim dividend), an increase of ¥15 fromthe annual per share dividend of ¥95 for the previous fiscal year.
In addition, the Board of Directors approved a resolution regarding the acquisition of treasury
stock on April 26, 2023. The detail of this matter is available for inspection on the Amano’s
website. (https://www.amano.co.jp/en/ir/dl/news/2023/20230426_4.pdf)
As a result, the consolidated payout ratio will be 71.4%, the net asset dividend rate will be 6.8%,
and the total return ratio will be 92.7%.
With regard to the dividend for the next fiscal year ending March 31, 2024, in line with our
Basic Policy on Distribution of Profits and in view of our outlook for the next fiscal year, wecurrently aim to pay an annual per share dividend of ¥115 (with an interim dividend of ¥35
and a year-end dividend of ¥80).
Retained earnings will be earmarked to fund effective investment aimed at the fundamental
enhancement of the capacity to conduct our business operations. This will include the expansion and strengthening of existing business fields, strategic investment in growth fields, andspending on research and development, as well as the rationalization of production plants andequipment for the purpose of reducing costs and further improving product quality, etc.

Manabu Yamazaki
President andRepresentative Director

2General Business Results
Business Results in the Year Ended March 31, 2023

General Business Results for This
Fiscal Year
During the consolidated fiscal year
under review, the world economy
showed signs of recover y amid
progress in balancing economic activities with measures to prevent infection by the COVID-19. However,it seems that the future outlook for
the Japanese economy continues tobe uncertain due to the concerns
about a recession in Europe and the
U.S., various price hikes against the
backdrop of the global supply chain
disruptions, the impact of the situation in Ukraine, and unstable currency fluctuations, etc.
Amid this business environment,
we the Amano Group set forth the
management concept of "The 3rd
Stage Towards a 100-year Company-Establishing a solid businessfoundation that leads to sustainablegrowth" in our 8th Medium-TermBusiness Plan launched in April 2021,
in which we will promote strategic
investments into growth drivers inorder to respond to digital transformation (DX), and we shall establish
unrivaled competitive advantage by
raising the synergistic effects of thestrengths of each of our businessdivisions.
As a result, during the fiscal year
under review, Amano recorded net
sales of ¥132,810 million, up by
12.1% year-on-year. Operating profit
i n c r e a s e d by 22.4% t o ¥15,787
million, ordinary profit went up by
21.8% to ¥16,960 million, and net
income attributable to owners of
the parent company increased by
16.0% to ¥11,288 million, resulting
in increases in both sales and profit.
(Main factors behind the businessresults)( i )	 A t non-consolidated Amano,sales of the Information Systems grew mainly in software,reflecting the continued strong
investment in systems for DX
initiatives and business efficiency
improvement with the tailwindof “work style reform” continuing. Sales for the Environmental
Systems continued to grow, especially for standard equipment.
On the other hand, sales for theParking Systems increased due
to continued recovery, but failed
to make up for the fir st half
downfall resulted in the plan not
being achieved.
(ii)	In domestic group companies,
the consigned parking lot management ser vice business performed well, approaching preCOVID-19 results, and T&A
cloud service for work management continued to grow dueto an increase in inquiries from
customers.
(iii)	In overseas markets, sales increased in Nor th America,
Europe, and Asia partly due tothe effect of yen depreciation.
In particular, overall sales in Asia
increased by double digits due tosignificant growth in the Parking
Systems in Korea, Hong Kong,and Malaysia. In North America,
although sales of parking systems increased due to the effect of launching a new product,earnings improvement was notachieved to continued investment in development and otherfactors.

The following is a breakdown of sales by business division.

Sales by business division
Category
Time Information System business:
Information Systems
Time Management Products
Parking Systems
Subtotal
Environment System business:
Environmental Systems
Clean Systems
Subtotal
Total(Millions of yen)

FY2021
FY2022(April 1, 2021–March 31, 2022) (April 1, 2022–March 31, 2023)
Amount Ratio (%) Amount Ratio (%)

ChangeAmount

%28,8082,700
55,58187,090

24.3
2.3
46.9
73.5

31,3532,841
64,70898,903

23.6
2.1
48.7
74.4

2,545
141
9,126
11,813

8.8
5.2
16.4
13.6

19,977
11,361
31,339118,429

16.9
9.6
26.5
100.0

20,83813,06833,906
132,810

15.7
9.9
25.6
100.0

860
1,706
2,567
14,381

4.3
15.0
8.2
12.1

3

Time Information System business

Parking Systems

The sales in this business totaled¥98,903 million, up by ¥11,813 million (up 13.6%) year-on-year. The
following is a breakdown of sales bybusiness division.

¥64,708 million (up 16.4% year-on-year)

Information Systems¥31,353 million (up 8.8% year-on-year)

Domestic sales for the current term
were as follows. For Amano, on an
unconsolidated basis, software sales
increased by ¥641 million (6.9%)
due to a recover y in order s forsmall to medium-sized businesses,
hardware sales increased by ¥81
million (3.1%), and sales generated
by maintenance contracts and supplies services increased by ¥72 million (1.6%) year-on-year. The cloudservices developed by Amano Business Solutions Corporation continued to perform strongly.
Overall overseas sales increasedby ¥1,664 million (14.6%), because
sales for both Accu-Time Systems,
Inc. in Nor th America and Horoquartz S.A. in Europe increased.

Time Management Products¥2,841 million (up 5.2% year-on-year)

During the current term for Amano,
on an unconsolidated basis, thesales of standard time recorders increased, although sales of PC-linked
time recorders decreased, while
overall sales increased ¥19 million(0.9%) year-on-year partly due to anincrease in exports.
Overall overseas sales increasedby ¥195 million (35.7%), as sales inNorth America and Asia increased.

Domestic sales for the current term
were as follows. For Amano, on
an unconsolidated basis, domestic
parking equipment sales increasedby ¥377 million (2.8%) due to arecovery trend, while sales generated by maintenance contracts andsupplies services increased by 937
million (10.7%). Sales continued toincrease in the consigned parking
lot management ser vice business
operated by Amano Management
Service because it is on a recovery
trend. As a result of the continued
investment by them, the number ofparking spaces under management
increased by 34,500 (5.3%) from theend of the previous fiscal year.
Overall overseas sales increased by¥7,186 million (32.2%) due to theincrease in the sales of Amano McGann, Inc. in North America and thesignificant increase in sales of theconsigned parking lot management
ser vice business in Korea, Hong
Kong, and Malaysia in Asia.

Environment System business
The sales in this business totaled¥33,906 million, up by ¥2,567 million (up 8.2%) year-on-year. The following is a breakdown of sales bybusiness division.

Environmental Systems¥20,838 million (up 4.3% year-on-year)

During the current term for Amano,
on an unconsolidated basis, domestic sales of standard equipment
increased by ¥271 million (3.8%),
although the trend was slowdown.

4

On the other hand, sales of large
dust collectors decreased by ¥50
million (1.0%) with the recovering
signs of orders, while sales generated by maintenance contracts andsupplies services increased by ¥409
million (10.1%) year-on-year.
Overall overseas sales increasedby ¥282 million (8.0%) as sales in
Asia increased due to a recovery in
China.

Clean Systems¥13,068 million (up 15.0% year-on-year)

During the current term for Amano,
on an unconsolidated basis, overall
domestic sales of cleaning equipment increased by ¥160 million(8.0%) led by due to the effect of
the launch of the new robotic floor
scrubber, and domestic sales generated by maintenance contracts andsupplies services decreased by ¥40
million (1.8%) year-on-year.
Overall overseas sales increased by¥1,610 million (25.0%) as Amano Pioneer Eclipse Corporation in North
America achieved the increase insales.

General Financial Condition
for This Fiscal Year(i) Assets, liabilities, and net assets
Total assets amounted to ¥171,250
million (up ¥11,907 million from theprevious consolidated fiscal yearend).
• Current assets: an increase of¥8,211 million due to increases
in notes and accounts receivabletrade and contract assets and raw
materials and supplies, etc.

• Fixed assets: an increase of ¥3,695
million due to an increase in leaseassets, etc.
Total liabilities amounted to ¥49,612
million (up ¥6,541 million from theprevious consolidated fiscal yearend).

• Main income factors:
Posting of income before income
taxes amounting to ¥16,752 million and posting of depreciation
and amortization amounting to¥9,017 million.

• Long-term liabilities: an increase of¥2,852 million due to an increasein lease obligations, etc.

• Main expenditure factors:
Posting of income taxes paid
amounting to ¥5,670 million andposting of increase in inventories
amounting to ¥2,617 million.
Posting of increase in trade notes
and accounts receivable and contract assets amounting to ¥2,002
million..

Net assets amounted to ¥121,638
million (up ¥5,366 million from theprevious consolidated fiscal yearend).

Net cash used in investing activities
totaled −¥7,376 million (an increasein cash outflow of ¥1,484 million
year-on-year).

• Shareholders' equity: an increaseof ¥1,415 million due to posting of net income attributable toowners of the parent company,
etc.

• Main income factors:
Posting of proceeds from withdrawal of time deposits amounting to ¥2,968 million.

• Current liabilities: an increase of¥3,688 million due to an increasein electronically recorded obligations, etc.

• Accumulated other comprehensive income: an increase of ¥3,821
million due to increases in foreign
currency translation adjustments,
etc.

Summary of Cash Flows forThis Fiscal Year
Consolidated cash and cash equivalents decreased by ¥847 million
from the previous fiscal year-end
to a total of ¥55,084 million as ofMarch 31, 2023. The status of eachtype of cash flow at year-end andthe underlying factors are as follows.
Net cash provided by operating
activities totaled ¥18,951 million (adecrease in income of ¥249 million
year-on-year).

• Main expenditure factors:
Posting of increase in time
deposits amounting to ¥5,892
million and posting of payment forpurchase of tangible fixed assets
amounting to ¥2,795 million.
Posting of payment for acquisitionof intangible fixed assets amounting to ¥1,577 million.
Net cash used in financing activities
amounted to −¥13,950 million (anincrease in cash outflow of ¥3,080
million year-on-year).
• Main income factors:
Posting of proceeds from sale andleaseback amounting to ¥1,730
million.
• Main expenditure factors:
Posting of dividends paid amounting to ¥7,399 million and postingof repayments of lease obligations

5

amounting to ¥5,607 million.
Posting of payment for acquisitionof treasury stock amounting to¥2,479 million.

Future Outlook
In the next fiscal year ending March
31, 2024, t h e w o r l d e c o n o m yshowed signs of recover y amid
progress in balancing economic activities with measures to prevent infection by the COVID-19. However,it seems that the future outlook for
the Japanese economy continues
to be uncertain due to the growing
concerns about a financial instability
and a recession in Europe and the
U.S., various price hikes against the
backdrop of the global supply chain
disruptions and the impact of thesituation in Ukraine, etc., and unstable currency fluctuations, etc.
Amid this business environment,
Amano and our group companies
have set "The 4th Stage Towards a
100-year Company-Commitment toa Paradigm Shift Leading to Sustainable Management" as our management concept and work to address
key issues in the 9th Medium-TermBusiness Plan.
The detail of this plan is available forinspection on the Amano’s website.

AMANO Corporation and Subsidiaries

Financial Highlights
For the year ended March 31, 2023
Yen in millions and U.S. dollars in thousands, except per share amounts- See Note 5 to the Consolidated Financial Statements.
Millions of Yen

Thousands of U.S.dollars

2022

2023

2023

¥118,429¥132,810$994,533

9,733

11,28884,529¥131.49¥154.42$1.15695.00

110.000.824

For the years ended March 31:
Net sales
Net income
Per share data (Yen and U.S. Dollars):
Net income per share (Basic)
Cash dividends per common share
At March 31:¥159,342¥171,250$1,282,387

Working capital

70,711

75,236563,397

Total net assets

116,271

121,638

910,873¥28,808¥31,353$234,784

Time management equipment

2,700

2,841

21,275Parking systems

55,58164,708484,559

Environmental systems

19,977

20,838156,043

Cleaning systems

11,361

13,06897,858

Total assets

Sales by product:
Time information systems

Note:U.S. dollar amounts have been translated at the rate of ¥133.54= US $1, the rate prevailing on March 31, 2023.
- See Note 5 to the Consolidated Financial Statements.

Net Sales

Net Income

Net Income Per Share(Millions of Yen)

(Millions of Yen)

(Yen)

140,000

12,000180.00160.00120,000

10,000140.00100,000
8,000

120.0080,000100.00
6,000
80.00

60,0004,000

40,000

60.00
40.00

2,000

20,000
0

20.00

'19

'20

'21

'22

'23

0

'19

'20

'21

6

'22

'23

0

'19

'20

'21

'22

'23

AMANO Corporation and Subsidiaries

Consolidated Financial Statements
As at March 31, 2023

Consolidated Balance Sheet

Thousands of
U.S.dollars

Millions of Yen
Notes

2022

2023

2023

16 and 18¥60,337¥62,399$467,268

Notes and accounts receivable-trade and contract assets

7 and 18

27,99530,958

231,826

Marketable securities

16 and 18

3,219

3,357

25,139

3,687

4,663

34,918

559

791

5,923

Raw materials and supplies

5,741

7,956

59,578Other current assets

4,464

4,112

30,792

AssetsCurrent assets
Cash and bank deposits

Merchandise and finished goods
Work in process

Allowance for doubtful accounts
Total current assets

(468)

(491)

(3,677)

105,537

113,749

851,797

Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation

28,59129,016217,283(19,697)(20,419)(152,905)

8,894

8,597

64,378

7,355

7,807

58,462

Accumulated depreciation(6,629)(6,914)(51,775)

Machinery and vehicles (net)

725

892

6,680

Buildings and structures (net)
Machinery and vehicles

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures (net)Land
Lease assets

17

15,755

16,704125,086(13,717)(14,422)(107,998)

2,038

2,281

17,081

5,818

5,846

43,777

15,041

19,149143,395

Accumulated depreciation(7,035)(7,995)(59,870)

Lease assets (net)

8,005

11,15383,518Construction in progress

298

364

2,726

Total tangible fixed assets

25,78029,135

218,174

Goodwill

1,417

1,214

9,091
23,918Intangible fixed assets
Software

2,980

3,194

Software in progress

1,110

702

5,257

Other

1,740

1,729

12,947

Total intangible fixed assets

7,249

6,840

51,221

14,694

14,974112,131

522

458

3,430

1,547

1,661

12,438Investments and other assets
Investment securities

6 and 18

Claims in bankruptcy and similar claims
Fixed leasehold deposits

128

115

861

2,505

2,591

19,402

Other

1,911

2,194

16,430Allowance for doubtful accounts

(533)

(470)

(3,520)Net defined benefit assets
Deferred tax assets

20

Total investments and other assets
Total fixed assets
Total assets

7

20,776

21,525

161,188

53,80557,501

430,590¥159,342¥171,250$1,282,387

Consolidated Balance Sheet

Thousands of
U.S.dollars

Millions of Yen
Notes

2022

2023

2023

¥5,605¥6,138$45,964
47,057

Liabilities
Current liabilities
Notes and accounts payable-trade

5,667

6,284

Short-term bank loans

367

266

1,992

Lease liabilities

3,610

4,150

31,077

Accrued income taxes

3,426

3,523

26,382

Accrued bonuses

20,713

Electronically recorded obligations

18

2,569

2,766

Accrued officers' bonuses

128

130

973

Other current liabilities

13,45015,252

114,213

Total current liabilities

34,82538,513

288,400
58,342Long-term liabilities
4,994

7,791

Deferred tax liabilities

20

12

16

120

Net defined benefit liabilities

19

2,377

2,281

17,081

Lease liabilities

Provision for stock benefit

293

357

2,673

Provision for directors' stock benefit

203

249

1,865

Asset retirement obligations

33

34

255

Other long-term liabilities

331

367

2,748

Total long-term liabilities
Total liabilities
Net assets

8,245

11,098

83,106

43,071

49,612

371,514

15

Shareholders' equity
Common stock

18,23918,239136,581

Capital surplus

19,293

19,293

144,474Retained earnings

86,244

90,133674,951

Treasury stock(6,546)(9,019)(67,538)

Total shareholders' equity

117,230

118,646

888,468

Net unrealized gains (losses) on available- for-sale securities

2,088

2,237

16,752

Accumulated other comprehensive income
Foreign currency translation adjustments(3,250)

248

1,857

Remeasurements of defined benefit plans

(549)

(375)

(2,808)

Total accumulated other comprehensive income(1,711)

2,109

15,793

752

882

6,605

Non-controlling shareholders' interests
Total net assets
Total liabilities and net assets

8116,271

121,638

910,873¥159,342¥171,250$1,282,387

AMANO Corporation and Subsidiaries

Consolidated Statement of Income, andConsolidated Statement of Comprehensive Income
For the year ended March 31, 2023

Consolidated Statement of Income

Thousands of
U.S.dollars

Millions of Yen
2022¥118,429
64,87653,5522023¥132,810
72,55560,2542023$994,533
543,320451,206

36,7383,921
40,65912,89340,551
3,916
44,467
15,787

303,662
29,325332,986
118,219

203
208
122
28
108
228
385
1,285

265
245
161
70
48
172
440
1,405

1,984
1,835
1,206
524
359
1,288
3,295
10,521

138
21
99
258
13,919

151
0
80
232
16,960

1,131
0
599
1,737
127,003

11

412
412

11
11

82
82

12
13

49
5
–
24
–
78
14,253
4,745
(271)
4,474
9,778
45
¥9,733

58
1
11
–
150
220
16,752
5,584
(186)
5,397
11,35465¥11,288

434
7
82

Notes
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Selling expenses
General and administrative expenses
Total selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Insurance dividend income
Insurance income
Foreign exchange gains
Equity in earnings of affiliates
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Foreign withholding tax
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of fixed assets
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Loss on sale of fixed assets
Office transfer expenses
Sublease loss
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes
Income taxes
Deferred income taxes
Total income taxes
Net income
Net income attributable to non-controlling shareholders
Net income attributable to owners of the parent company

920

Consolidated Statement of Comprehensive Income

Thousands of
U.S.dollars

Millions of Yen

Net income
Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted forusing equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent company
Comprehensive income attributable to non-controlling shareholders

9

1,123
1,647
125,446
41,815(1,393)40,41585,023
487$84,5292022¥9,7782023¥11,3542023$85,023

212
1,990
70

150
3,583
174

1,123
26,831
1,303

0

0

0

2,273
12,052

3,907
15,262

29,257
114,288

12,008¥43

15,109¥152

113,142$1,138

AMANO Corporation and Subsidiaries

Consolidated Statement of Changes in Net Assets
For the year ended March 31, 2023
Fiscal Year ended March 31, 2022 (April 1, 2021 to March 31, 2022)
Millions of Yen
Shareholders' equity
Common stock

Capital surplus

Balance at beginning of period
Cumulative effects of changes in accounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period¥18,239¥19,293

18,23919,293––

Balance at end of period¥18,239¥19,293

Balance at beginning of period
Cumulative effects of changes in accounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period
Balance at end of period

Total shareholders'equity(¥4,443)¥114,838(4)(4,443)
114,833

Retained earnings Treasury shares¥81,749(4)
81,744(5,234)
9,733(2,154)52(5,234)
9,733(2,154)52

4,499(2,102)

2,397¥86,244(¥6,546)¥117,230

Accumulated other comprehensive income
Net unrealized
RemeasureTotal accuNon-controlling Total net assets
gains (losses)
Foreign curments ofmulated otherinterests
on availablerency transla- defined
benefitcomprehensive
for-sale securi- tion adjustment
plansincometies¥1,875(¥5,242)(¥620)(¥3,986)¥733¥111,585(4)
1,875(5,242)(620)(3,986)
733
111,581

212
212

1,991
1,991

70
70

2,274
2,274

18
18

(5,234)
9,733(2,154)
52
2,293
4,690

¥2,088(¥3,250)(¥549)(¥1,711)¥752¥116,271

10

Fiscal Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)
Millions of Yen
Shareholders' equity
Common stock

Capital surplus

Balance at beginning of period
Cumulative effects of changes in accounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period¥18,239¥19,293

18,23919,293––

Balance at end of period¥18,239¥19,293

Balance at beginning of period
Cumulative effects of changes in accounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period
Balance at end of period

Total shareholders'equity(¥6,546)¥117,230–(6,546)117,230

Retained earnings Treasury shares¥86,244–
86,244(7,399)11,288(2,479)5(7,399)11,288(2,479)5

3,888(2,473)

1,415¥90,133(¥9,019)¥118,646

Accumulated other comprehensive income
Net unrealized
RemeasureTotal accuNon-controlling Total net assets
gains (losses)
Foreign curments ofmulated otherinterests
on availablerency transla- defined
benefitcomprehensive
for-sale securi- tion adjustment
plansincometies¥2,088(¥3,250)(¥549)(¥1,711)¥752¥116,271–
2,088(3,250)(549)(1,711)
752
116,271

148
148

3,498
3,498

174
174

3,821
3,821

129
129

(7,399)11,288(2,479)
5
3,951
5,366

¥2,237¥248(¥375)¥2,109¥882¥121,638

Thousands of U.S. dollars
Shareholders' equity
Total shareholders'equity($49,019)$877,864–(49,019)
877,864

Common stock

Capital surplus

Retained earnings Treasury shares

Balance at beginning of period
Cumulative effects of changes in accounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period$136,581$144,474

136,581

144,474––

29,115(18,519)

10,596

Balance at end of period$136,581$144,474$674,951($67,538)$888,468$645,829–
645,829(55,407)
84,529(18,564)37(55,407)
84,529(18,564)
37

Accumulated other comprehensive income
Net unrealized
RemeasureTotal accuNon-controlling Total net assets
gains (losses)
Foreign curments ofmulated otherinterests
on availablerency transla- defined
benefitcomprehensive
for-sale securi- tion adjustment
plansincometies
Balance at beginning of period
Cumulative effects of changes in accounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Net changes in items other than shareholders' equity
Total changes during period$15,636($24,337)($4,111)($12,813)$5,631

15,636(24,337)(4,111)(12,813)

5,631$870,683–
870,683

1,108
1,108

26,194
26,194

1,303
1,303

28,613
28,613966
966(55,407)
84,529(18,564)37
29,58740,183

Balance at end of period$16,752$1,857($2,808)$15,793$6,605$910,873

11

AMANO Corporation and Subsidiaries

Consolidated Statement of Cash Flows
For the year ended March 31, 2023
Thousands of
U.S.dollars

Millions of Yen
2022

2023

2023

Income before income taxes¥14,253¥16,752$125,446

Depreciation and amortization

8,070

9,017

67,523

Amortization of goodwill

351

311

2,329

Increase (decrease) in net defined benefit liabilities

148

108

809

Increase (decrease) in provision for stock benefit

83

70

524

Notes
Cash flows from operating activities

Increase (decrease) in provision for directors' stock benefit

32

45

337

Increase (decrease) in allowance for doubtful accounts

(28)

(113)

(846)

Interest and dividend revenue

(411)

(511)

(3,827)

Equity in (earnings) losses of affiliates

(228)

(172)

(1,288)Interest expenses

138

151

1,131

Foreign currency translation loss (gain)

(114)

(79)

(592)

Loss (gain) on sale of fixed assets

(406)

(10)

(75)

Loss on disposal of fixed assets

49

58

434

(Increase) decrease in trade notes and accounts receivable and contract assets

24–

Loss (gain) on valuation of investment securities

–

150

1,123

(Increase) decrease in trade notes and accounts receivable and contract assets(274)(2,002)(14,992)(19,597)(Increase) decrease in inventories(645)(2,617)

Increase (decrease) in trade payables

672

853

6,388

Increase (decrease) in other current liabilities

(346)

1,041

7,795

Other

272

591

4,426

Subtotal

21,641

23,644177,056

Receipts from interest and dividends

524

614

4,598

Interest paid

(137)

(151)

(1,131)(2,938)(5,670)(42,459)

111

514

3,849

19,20018,951

141,913(28,830)

Income taxes paid
Income taxes refunded
Net cash provided by operating activities
Cash flows from investing activities
Payment for acquisition of securities(3,850)(3,850)

Proceeds from redemption of securities

3,450

4,050

30,328

Payment for purchase of tangible fixed assets(1,951)(2,795)(20,930)

771

18

135

Payment for acquisition of intangible fixed assets(1,597)(1,577)(11,809)

Payment for acquisition of investment securities(2,110)(306)(2,291)

Payments for acquisition of businesses

(200)

–

Increase in time deposits(2,962)(5,892)(44,122)

Proceeds from withdrawal of time deposits

2,428

2,968

22,226129

752(5,891)(7,376)(55,234)

Proceeds from sale of tangible fixed assets

Other
Net cash used in investing activities
Cash flows from financing activities
Increase in short-term loans payable

358

213

1,595

Repayment for short-term bank loans

(519)

(385)

(2,883)

Payment for acquisition of treasury stock(2,154)(2,479)(18,564)

Repayments of lease liabilities(4,606)(5,607)(41,987)

Proceeds from sale and leaseback

1,312

1,730

12,955

Dividends paid

(5,234)(7,399)(55,407)

Payment of dividends to non-controlling shareholders
Net cash flows from financing activities

(25)

(22)

(165)

(10,870)(13,950)(104,463)
11,442947

1,528

Net increase (decrease) in cash and cash equivalents

3,385

(847)

(6,343)

Cash and cash equivalents at the beginning of period

52,54655,931

418,833¥55,931¥55,084$412,491

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of period

16

12

AMANO Corporation and Subsidiaries

Notes to the Consolidated Financial Statements[Basis of Consolidated Financial Statements]
The accompanying consolidated financial statements of AMANO Corporation [hereafter, "the Company"] and its subsidiaries have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations in Japan.
The accounts of the Company and its domestic subsidiaries included in the consolidation are based on the accounting records maintained in accordance withaccounting principles generally accepted in Japan, which are different in certain respects as to the application and the disclosure requirements of International
Financial Reporting Standards.
As permitted by the Financial Instruments and Exchange Act, amounts of less than one million yen have been rounded down. As a result, the totals shown in theaccompanying consolidated financial statements (both in Japanese yen and U.S. dollars) do not necessarily agree with the sums of the individual amounts.
Certain amounts in the prior year's financial statements have been reclassified to conform to the current year's presentation.

1. Scope of Consolidation(1) Consolidated subsidiaries :28 companies
Name of principal consolidated subsidiaries:(a) Domestic Companies
AMANO MANAGEMENT SERVICE CORPORATION, AMANO MAINTENANCE ENGINEERING CORPORATION, AMANO BUSINESSSOLUTIONS CORPORATION, AMANO MUSASHI ELECTRIC CORPORATION, AMANO SECURE JAPAN CORPORATION, ENVIRONMENTAL TECHNOLOGY CO., LTD., AMANO AGENCY CORPORATION(b) Overseas Companies
AMANO USA HOLDINGS, Inc., AMANO McGann, INC., AMANO PIONEER ECLIPSE CORPORATION., ACCU-TIME SYSTEMS, INC.,
AMANO CINCINNATI, INC., AMANO TIME & ECOLOGY DE MEXICO S.A.DE C.V., AMANO EUROPE HOLDINGS, N.V., AMANOEUROPE, N.V., AMANO TIME&PARKING SPAIN S.A., HOROQUARTZ S.A., AMANO KOREA CORPORATION, AMANO MALAYSIA
SDN. BHD., AMANO INTERNATIONAL TRADING(SHANGHAI) CO., LTD., AMANO PARKING SERVICE Ltd., AMANO TIME & AIR
SINGAPORE PTE. LTD., PT. AMANO INDONESIA, AMANO THAI INTERNATIONAL CO., LTD., Amano Vietnam Co., Ltd.

(2) Name of unconsolidated subsidiaries· AMANO SOFTWARE ENGINEERING(SHANGHAI)CO.,LTD.
· Mobile Parking Ltd.
· Amano Parking Europe, N.V.
(The reason for excluding these subsidiaries from consolidation)
Unconsolidated subsidiaries are excluded from the scope of consolidation because these companies are small companies and the sums of each of the total
assets, net sales, net income and retained earnings (equal to share interest) of these companies have not had any significant impacts on the consolidated
financial statements.

2. Matters Concerning Application of the Equity Method
The number of an unconsolidated subsidiary accounted for by the equity method:0 company
The number of an affiliated company accounted for by the equity method:1 company
The affiliate accounted for by the equity method is listed below:· CREO CO., LTD.
The name of a major affiliated company that do not apply the equity method is listed below:· Preferred Robotics, Inc.
(The reason for not applying the equity method)
Unconsolidated subsidiaries (3 companies) and an affiliate (1 company) have been excluded from the scope of equity method because their net income orloss (equal to share interest) and retained earnings (equal to share interest) have a minimal effect on the consolidated financial statements and they are notsignificant as a whole.

3. Accounting Periods of Consolidated Subsidiaries
The accounts of the overseas consolidated subsidiaries are consolidated using their financial statements as of their respective fiscal year end, which falls on
December 31, 2022 and necessary adjustments are made to their financial statements to reflect any significant transactions from January 1 to March 31,
2023. All significant intercompany balances and transactions have been eliminated in consolidation.

4. Summary of Significant Accounting Policies(1) Valuation standards and methods for significant assets(a) Marketable securities
Held-to-maturity debt securities
Amortized cost method applied
Other securities for which market quotations are available are stated at fair value.
The fair value method based on the market price, etc. as of the end of the fiscal year
(Unrealized gains or losses on available-for-sale securities are included directly in the net assets, and costs of selling available-for-sale securities iscalculated by the moving-average method.)
Other securities for which market quotations are unavailable are stated at cost for moving average method.
(b) Derivatives
The fair value method(c) Inventories
Inventories are stated at cost (after any writedown due to reduced profitability). Cost is determined principally using the periodic average method.

13

(2) Depreciation methods for significant depreciable assets(a) Property, plant and equipment (excluding Leased Assets)
Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the declining balance method, based on
the estimated useful lives, except for buildings acquired on or after April 1, 1998 and for facilities attached to buildings and structures acquired on orafter April 1, 2016, which are computed on the straight-line method.
The ranges of the useful lives of assets are:
Buildings and structures 5-50 years
Machinery and vehicles 7-17 years(b) Intangible assets (excluding Leased Assets)
Intangible assets are amortized using the straight-line method.
Software developed for external sale is amortized over the estimated sales period, 3 years. Software costs for internal use are amortized by the straight-line
method over their expected useful lives (5 years).
(c) Leased Assets
Leased assets in finance lease transactions not involving transfer of ownership are depreciated by the straight-line method over the term of the lease, witha residual value of zero. For some of its subsidiaries which prepare the financial statements based on IFRS or US-GAAP, in principle, lessees recognize allleases on the balance sheet as assets and liabilities.

(3) Accounting standards for significant allowances(a) Allowance for doubtful accounts
In general, the Company and its subsidiaries provide the allowance based on the past receivables loss experience for a certain reference period. Furthermore, for receivables from companies with financial difficulty, which could affect the debtors' ability to perform their obligations, the allowance isprovided for estimated unrecoverable amounts individually.
(b) Accrued bonuses
Accrued employees' bonuses at the balance sheet date are based on an estimate of the amounts to be paid as bonuses for services rendered by employeesby that date.
(c) Accrued officers' bonuses
Accrued directors' bonuses at the balance sheet date are based on an estimate of the amounts to be paid as bonuses for services rendered by directors bythat date.
(d) Provision for stock benefit
In order to prepare for the payment of company stocks to employees under the stock benefit program, provision for stock benefit is recorded based on
the estimated amount of stock benefit obligation corresponding to the merit points allocated to the employees in the current consolidated fiscal year.
(e) Provision for directors’ stock benefit
In order to prepare for the payment of company stocks to directors under the share payment program, provision for stock benefit is recorded basedon the estimated amount of stock benefit obligation corresponding to the merit points allocated to the directors in the current consolidated fiscal
year.

(4) Retirement benefits(a) Method of attributing estimated amounts of retirement benefits to periods
The Company and some of its subsidiaries recognize accrued pension and severance costs to employees based on the actuarial valuation of projected benefit obligation and plan assets at their value. The retirement benefit obligation for employees is attributed to each period by the benefit formula method.
(b) Treatment method for actuarial differences and prior service costs
Prior service costs are amortized based on the straight-line method over a period years (7-10years) within the average remaining service period of employees. Actuarial gains and losses are amortized based on the straight-line method over a period years (7-10years) within the average remaining service
period of employees starting from the beginning of the subsequent year of when the cost is incurred.

(5) Recognition criteria for significant revenue and expenses
The Company and its subsidiaries recognizes revenue based on the following five-step approach:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
Major businesses of the Company and its subsidiaries are the manufacturing and sales of Information Systems, Time Management Products, Parking
Systems, Environmental Systems, and Clean Systems. See “Segment Information 1. Outline of Reporting Segments” for details. The Company and its
subsidiaries normally recognize revenue for the sales of these products upon the completion of acceptance inspection by the customer, because the Company
and its subsidiaries have determined that the customer gains control over the products and its performance obligation is satisfied upon the completion of thecustomer’s acceptance inspection. For some non-installed products and domestic sales of supplies, etc., if the period from shipment to acceptance inspection
by the customer is normal, revenue is recognized at the time of shipment. Revenue is measured at the price promised to the customer in the contract, after
deducting any trade discounts and/or returns, etc.
The Company and its subsidiaries may provide the customer with maintenance and other services related to these products. In this case, revenue for suchservices is recognized over the contract period as the performance obligations for such services are satisfied basically over the passage of time.
Revenue for some of construction contracts for Parking systems and Environmental systems is recognized based on the percentage of completion pertaining
to the satisfaction of performance obligation because the Company and its subsidiaries have determined that the performance obligation is satisfied over acertain period. For constructions whose construction period is extremely short, revenue is recognized when the installation that fully satisfies the performance obligation is completed. The percentage of completion pertaining to the satisfaction of performance obligation is estimated based on the percentageof actual cost to estimated total cost (input method) if the result of performance obligation can be reasonably measured.

14

(6) Foreign currency translation
Receivables and payables in foreign currencies are translated at the foreign exchange rates prevailing at the respective balance sheet dates and the resulting
transaction gains or losses are included in net profit or loss for the period. Also the assets and liabilities of foreign subsidiaries are translated at the foreign exchange rates prevailing at the respective balance sheet dates. On the other hand, all the profit and loss accounts are translated at the average foreign exchange
rates for the respective periods. Differences arising from translation are presented as "Foreign currency translation adjustments" and "Non-controllinginterests in consolidated subsidiaries" in the accompanying consolidated financial statements.

(7) Goodwill amortization method and amortization periods
Goodwill is amortized over the estimated useful life, or where the amount of goodwill is immaterial, is charged to income in the year of acquisition.

(8) Cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, cash in banks which can be withdrawn at any time and short-term investments with a maturity of threemonths or less when purchased which can easily be converted to cash and are subject to little risk of change in value.

(9) Other important matters for preparation of consolidated financial statements
Not applicable[Change of Accounting Policy](Application of ASU 2016-02 "Leases")
For those of its subsidiaries that are subject to US-GAAP, they have applied ASU 2016-02 "Leases" from the current fiscal year. Accordingly, in principle,
lessees recognize all leases on the current fiscal year consolidated balance sheet as assets and liabilities. In adopting this accounting standard, they have adopted the permitted transitional measure whereby the cumulative effect when applying this standard, is recognized on the effective date of application.
As a result, compared with the previous accounting standard, the balance of lease assets under tangible fixed assets increased by ¥662 million, lease obligations under current liabilities by ¥148 million, and lease obligations under long-term liabilities by ¥513 million at the beginning of the current fiscal year.
The effect of this change on profit and loss for the current fiscal year was negligible.

[Accounting Standard Issued but Not yet Effective]“Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022, Accounting Standards Board of Japan)"Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, October 28, 2022, AccountingStandards Board of Japan)"Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022, Accounting Standards Board of Japan)(1) Overview
Provides for the treatment of income tax classification or total other comprehensive income and tax effects on sale of shares of subsidiaries, etc. when group
corporation taxation is applied.

(2) Scheduled date of application
It will be applied from the beginning of the fiscal year ending March 31, 2025.

(3) Effect of application of the accounting standards, etc.
The effect of application of the accounting standards, etc. on the consolidated financial statements is currently under evaluation.

[Additional Information](Directors' Compensation BIP Trust and Employee Stock Ownership Plan (J-ESOP))
For the purpose of enhancing the motivation to contribute the improvement of medium to long-term business performance and to increase the corporate
value, the Company and some of its subsidiaries have introduced the Compensation BIP Trust system for directors(excluding external directors and directors
residing overseas) and operating officers (excluding officers residing overseas), as well as the Employee Stock Ownership Plan (J-ESOP) system for employees who meet the prescribed requirements.
(a) Outline of the system
Under the system, a trust is established with money contributed by the Company as a source, stocks of the Company are acquired by the trust, and thestocks are granted to the eligible persons. Furthermore, as for the executive compensation BIP trust, the trust period will be extended for the same period as
the initial trust period as a stock compensation plan linked to the period of the 8th Medium-Term Business Plan which started in April 2020.
Under the Directors' Compensation BIP Trust, in accordance with the stock distribution rules and based on points granted according to the attainment
level of numerical targets related to their positions and management indicators, stocks of the Company are provided by the trust to directors and operating
officers.
Under the Employee Stock Ownership Plan (J-ESOP), in accordance with the stock distribution rules and based on points granted according to their positions and operating performance, stocks of the Company are provided by the trust to employees who meet certain requirements.
(b) Stocks of the Company that remain in the trust
Stocks of the Company that remain in the trust are recorded as treasury stock in the net assets section with the book value of the trust (excluding incidental
expenses).
The book value and the numbers of the treasury stock at March 31, 2023 are ¥987 million and 398,219 shares, respectively.
In addition, the 107th Annual Shareholders Meeting approved "Revision of Performance-Based Stock Compensation for Executives, etc." on June 29, 2023.

5.United States Dollar Amounts
The Company maintains its accounting records in Japanese yen. The U.S. dollar amounts included in the consolidated financial statements and notes there
to represent the arithmetical results of translating Japanese yen to U.S. dollars at a rate of ¥ 133.54= US$1, the approximate effective rate of exchange
prevailing on March 31, 2023. The inclusion of U.S. dollar amounts is solely for convenience of readers outside Japan and is not intended to imply that yen
amounts could be converted, realized, or settled in U.S. dollars at that, or any other rate.

15

[Consolidated Balance Sheet]

6. Investments in Unconsolidated Subsidiaries and Affiliates
Among investments in securities, the amount in aggregate corresponding to unconsolidated subsidiaries and affiliates are as follows:
Millions of Yen
2022¥4,31653

Investments in equity securities
Others2023¥4,38953

Thousands of
U.S.dollars
2023$32,867397

7. Notes and Accounts Receivable
Of the notes receivable, accounts receivable and contract assets, the amounts of receivables and contract assets arising from thecontract with the customer are as follows:
2022

2023

Thousands of
U.S.dollars
2023

Trade notes receivable¥2,335¥1,429$10,701

Accounts receivable

24,902

28,274

211,727

757

1,254

9,390

2022

2023

Thousands of
U.S.dollars
2023¥4,540¥5,186$38,835

Millions of Yen

Contract assets

8. Other Current Liabilities
Of the others, the amount of contract liability is as follows:
Millions of Yen
Contract liability

16

[Consolidated Statement of Income]9. Selling, General and Administrative Expenses
Selling, general and administrative expenses during the years ended March 31, 2022 and 2023 principally include:
Millions of Yen
2022¥1,788128
1,123
18,73785
70
38

Employees' bonuses
Directors' bonuses
Retirement benefits
Salaries and allowances
Allowance for doubtful accounts
Allowance for Provision for stock benefit
Allowance for Provision for directors’ stock benefit

2023¥1,964130
1,103
20,1377
56
51

Thousands of
U.S.dollars
2023$14,707973
8,260
150,79452
419
382

10. Research and Development Costs
Research and development costs included in selling, general and administrative expenses and manufacturing cost are as follows:
2022

2023

Thousands of
U.S.dollars
2023¥2,015¥2,370$17,747

Millions of Yen
Research and development costs

11. Gain on Sale of Fixed Assets
Details of Gain on sale of fixed assets are as follows:
Millions of Yen
2022
¥260
11
2
137
¥412

Buildings and structures
Machinery and equipment
Tools, Furniture and Fixtures
Land
Total

2023
–
¥4
7
–
¥11

Thousands of
U.S.dollars
2023
–
$30
52
–
$82

12. Loss on Disposal of Fixed Assets
Details of Loss on disposal of fixed assets for the years ended March 31, 2022 and 2023 are as follows:
2023
¥8
0
17
30
0
¥58

Thousands of
U.S.dollars
2023
$60
0
127
225
0
$434

2023
–
–
¥1
–
¥1

Thousands of
U.S.dollars
2023
–
–
$7
–
$7

Millions of Yen
2022
¥15
7
11
13
–
¥49

Buildings and structures
Machinery and equipment
Tools, Furniture and Fixtures
Leased Assets
SoftwereTotal

13. Loss on Sale of Fixed Assets
Details of Loss on sale of fixed assets are as follows:
Millions of Yen
2022
¥3
0
–
1
¥5

Buildings and structures
Machinery and equipment
Tools, Furniture and Fixtures
Land
Total

17

14. Other Comprehensive Income
The following table presents reclassification adjustments and tax effects allocated to each component of other comprehensive
income (loss) :Thousands of
U.S.dollars

Millions of Yen
2022

2023

2023

¥305
–
305
(93)
212

¥227
–
227
(76)
150

$1,700
–
1,700
(569)
1,123

Net unrealized gains (losses) on other securities:
Amount arising during the year
Reclassification adjustments
Amount before tax effectTax effectNet unrealized gains (losses) on other securities
Translation adjustments:

0

Amount arising during the year
Reclassification adjustments
Amount before tax effectTax effectTranslation adjustments

1,990
–
1,990
–
1,990

3,583
–
3,583
–
3,583

Retirement benefits liability adjustments:

26,831–
26,831–
26,8310

Amount arising during the year
Reclassification adjustments
Amount before tax effectTax effect
Retirement benefits liability adjustments

(154)
244
90
(20)
70

84
148
232
(58)
174

629
1,108
1,737
(434)
1,303

0
–

0
–

0
–

0
¥2,2730¥3,907

0$29,257

Share of other comprehensive income (loss) ofcompanies accounted for by the equity method:Amount arising during the year
Reclassification adjustments
Share of other comprehensive income of companies
accounted for by the equity method
Total other comprehensive income (loss)

18

15. Consolidated Statements of Changes in Net Assets
Fiscal Year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Shares issued and outstanding
Share type
Common stock (shares)

As of April 1, 2021
76,657,829

Increase–

Decrease–

As of March 31, 2022
76,657,829

As of April 1, 2021
2,033,401

Increase
751,305

Decrease
20,795

As of March 31, 2022
2,763,911(2) Shares of treasury stock
Share type
Common stock (shares)(Reason for change)
The increase in the number of shares is due to the purchases of 1,305 shares less than one unit.
Purchase of treasury stock of 750,000 shares as determined by the Board of Directors' resolution on April 26, 2021.
The decrease in the number of shares is due to delivery of 9,295 shares by Directors' Compensation BIP Trust.
The decrease in the number of shares is due to benefit of 11,500 shares by Employee Stock Ownership Plan (J-ESOP).

(3) Dividends(a) Dividends paid
Resolution
Ordinary general meeting of shareholders, June 29, 2021
Board of directors meeting,
October 28, 2021

Total dividend(Millions of Yen)

Dividend per share(Yen)

Date of record

Effective dateCommon stock¥3,377¥45

March 31, 2021

June 30, 2021

Common stock

1,857

25

September 30, 2021

December 2, 2021

Share type

Notes:
Total dividend" as determined by the Ordinary general meeting of shareholders' resolution on June 29, 2021 includes ¥ 12 million for dividends on the
Company's shares owned by Directors' Compensation BIP Trust and ¥ 6 million for dividends on its shares owned by Employee Stock Ownership Plan (JESOP).
Total dividend as determined by the Board of Directors' resolution on October 28, 2021 includes ¥ 6 million for dividends on the Company's shares owned
by Directors' Compensation BIP Trust and ¥ 3 million for dividends on its shares owned by Employee Stock Ownership Plan (J-ESOP).
(b) Dividends for which the date of record falls in the fiscal year, but the effective date is after the end of the fiscal year.
Resolution

Share typeDividend funding

Ordinary general meeting of shareholders, June 29, 2022

Common stock

Retained earnings

Total dividend Dividend per share(Millions of Yen)
(Yen)
¥5,200¥70

Date of record

Effective date

March 31, 2022

June 30, 2022

Notes:"Total dividend" includes ¥ 18 million for dividends on the Company's shares owned by Directors' Compensation BIP Trust and ¥ 9 million for dividends
on its shares owned by Employee Stock Ownership Plan (J-ESOP).

19

Fiscal Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Shares issued and outstanding
Share type
Common stock (shares)

As of April 1, 2022
76,657,829

Increase–

Decrease–

As of March 31, 2023
76,657,829

As of April 1, 2022
2,763,911

Increase
994,704

Decrease
2,300

As of March 31, 2023
3,756,315(2) Shares of treasury stock
Share type
Common stock (shares)(Reason for change)
The increase in the number of shares is due to the purchases of 804 shares less than one unit.
Purchase of treasury stock of 993,900 shares as determined by the Board of Directors' resolution on April 26, 2022.
The decrease in the number of shares is due to benefit of 2,300 shares by Employee Stock Ownership Plan (J-ESOP).

(3) Dividends(a) Dividends paid
Resolution

Share type

Ordinary general meeting ofshareholders, June 29, 2022
Board of directors meeting,
October 28, 2022

Commonstock
Commonstock

Total dividend(Thousands of
U.S. dollars)

Dividend
per share(Yen)

Dividend
per share(U.S. dollars)¥5,200$38,940¥70$0.524

2,199

16,46730

0.225

Total dividend(Millions of Yen)

Date of record Effective date
March 31,2022
September 30,
2022

June 30,
2022
December 2,
2022

Notes:"Total dividend" as determined by the Ordinary general meeting of shareholders' resolution on June 29, 2022 includes ¥ 18 million for dividends on the
Company's shares owned by Directors' Compensation BIP Trust and ¥ 9 million for dividends on its shares owned by Employee Stock Ownership Plan (JESOP).
"Total dividend" as determined by the Board of Directors' resolution on October 28, 2022 includes ¥ 7 million for dividends on the Company's shares
owned by Directors' Compensation BIP Trust and ¥ 4 million for dividends on its shares owned by Employee Stock Ownership Plan (J-ESOP).
(b) Dividends for which the date of record falls in the fiscal year, but the effective date is after the end of the fiscal year.
Total dividend
Dividend
Dividend
Dividend Total dividend
Resolution
Share type
(Thousands ofper shareper share
funding (Millions of Yen)
U.S. dollars)(Yen)(U.S. dollars)
Ordinary general meeting of Common Retained¥5,863$43,904¥80$0.599shareholders, June 29, 2023
stock
earnings

Date ofrecordEffective
date

March 31,2023

June 30,
2023

Notes:"Total dividend" includes ¥ 21 million for dividends on the Company's shares owned by Directors' Compensation BIP Trust and ¥ 10 million for dividends
on its shares owned by Employee Stock Ownership Plan (J-ESOP).

20

16. Consolidated Statement of Cash Flows(1) Reconciliations of cash and cash equivalents to the amounts shown in the consolidated balance sheet are as follows:
Millions of Yen
2022¥60,337
3,219
63,557(5,275)(2,350)–¥55,931

Cash and bank deposits
Marketable securities
Sub total
Time deposits due over three months
Marketable securities due over three months
bank overdraft
Cash and cash equivalents

2023¥62,399
3,357
65,757(8,275)(2,350)(47)¥55,084

Thousands of
U.S.dollars
2023$467,268
25,139492,414(61,966)(17,598)(352)$412,491(2) Supplemental disclosure of non-cash transactions
The significant non-cash transactions for the years ended March 31, 2022 and 2023 are as follows:
Millions of Yen
2022¥4,6995,180

Leased assets
Lease obligations

2023¥7,061
7,606

Thousands of
U.S.dollars
2023$52,876
56,957

17. Lease Commitments(1) Finance lease
Finance lease transactions not involving transfer of ownership(a) Leased assets
Tangible assets:Mainly operating equipment for the parking system business.
(b) Depreciation method
Leased assets are depreciated by the straight-line method over the term of the lease, with a residual value of zero.

(2) Operating lease(a) Lessees' accounting
Minimum future lease payments for non-cancelable operating leases are as follows:

2023
¥63
61
¥125

Thousands of
U.S.dollars
2023
$472
457
$936

2023
¥101
98
¥199

Thousands of
U.S.dollars
2023
$756
734
$1,490Millions of Yen
2022
¥66
125
¥191

Due within 1 year
Due over 1 year
Total(b) Lessors' accounting
Minimum future lease payments for non-cancelable operating leases are as follows:

Millions of Yen
2022
¥101
199
¥300

Due within 1 year
Due over 1 year
Total

21

18. Financial Instruments(1) Matters concerning the status of financial instruments(a) Management policy
The management policy of the Company is to invest surplus funds into low-risk financial instruments. The Company has not held any high-risk financial instruments.
(b) Financial instruments and their risks
Both notes receivable and accounts receivable as operating receivables are exposed to credit-related losses in the event of nonperformance by counterparties. Marketable securities and investments in securities are exposed to changes in market price. The Company holds marketable securities and investments in securities mainly as held-to-maturity or due to relationship-building with counterparties. Notes payable, accounts payable and electronicallyrecorded monetary claims as trade liabilities are due and payable within one year.
(c) Risk management policies① Management policy for credit risk (losses in the event of nonperformance by counterparties)
The Company has an established credit management policy, whereby credit risk exposure arising from both notes and accounts receivable is monitored on an ongoing basis in order to detect credit deterioration as well as to trigger appropriate minimizing measures at its early stages.
Held-to-maturity investments are subject to the examination and decision of the Funds Management Review Committee and accordingly, investments largely consist of negotiable deposits and high graded securities, which are considered to have minimal credit risk.
② Management policy for market risk (foreign currency exchange and interest rates)
Marketable securities and investments in securities are marked to market and the financial condition of the issuer (client company) is monitored
periodically.
In addition, the holdings of bonds and securities, other than held-to-maturity investments, are reviewed on an ongoing basis, taking into consideration the relationship and other factors with the issuer.
③ Management policy for liquidity risk (in default on its financial obligations)
The Company has managed liquidity risk by holding appropriate funds based on the forecasts, and actual cash flow is continuously monitored by
the management.
(d) Supplementary explanation on the fair value of financial instruments		
The fair values of financial instruments are based on quoted market prices. If quoted market prices are unavailable, the fair values are estimated based on
the prices which are assessed as reasonable by the Company. Since the Company takes contingent variable factors into account when estimating the fairvalue, it would vary depending on the different preconditions.

22

(2) Estimated fair value of financial instruments
Differences between carrying value and estimated fair value as of March 31, 2022 and 2023 are as follows:

Carrying
value
Marketable securities and investments in securities① Held-to-maturity② Subsidiaries and affiliates③ Other securities
Total (Assets)¥4,934
2,261
8,339¥15,535

Carrying
value
Marketable securities and investments in securities① Held-to-maturity② Subsidiaries and affiliates③ Other securities
Total (Assets)

Millions of Yen
2022
Estimated
Difference
fair value
in amounts¥4,937
2,287
8,339¥15,565

¥3
25
–
¥29

Millions of Yen
2023
Estimated
Difference
fair value
in amounts¥5,034
2,331
8,735¥16,101¥5,0292,367
8,735¥16,132

(¥4)
35
–
¥30

Thousands of U.S.dollars
2023
Carrying
Estimated
Difference
value
fair value
in amounts$37,697
17,45565,411$120,571$37,659
17,72565,411$120,803

($30)
262
–
$225

(NOTES)"Cash and bank deposits," "Notes and accounts receivable," "Trade notes and accounts payable," and "Electronically recorded monetary claims" are omitted asthey are cash and their fair value is close to the book value since these items are settled in a short period of time.
Financial instruments whose fair values are difficult to estimate are not included in "Marketable securities and investments in securities". These financial instruments are recorded in consolidated balance sheets are as follows:
Millions of Yen
Unlisted securities (Carrying value)2023¥2,3302022¥2,37723

Thousands of U.S.dollars
2023$16,699

Note1: Redemption schedule for monetary claims and securities with maturities subsequent to the balance sheet date is as follows:

Cash and bank deposits
Notes and accounts receivable
Marketable securities and investments in securities:
Held-to-maturity securities
Total

Cash and bank deposits
Notes and accounts receivable
Marketable securities and investments in securities:
Held-to-maturity securities
Total

Cash and bank deposits
Notes and accounts receivable
Marketable securities and investments in securities:
Held-to-maturity securities
Total

Millions of Yen
2022
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

Due
within 1 year
¥60,337
27,2372,350¥89,925¥409¥409¥2,174¥2,174––

Millions of Yen
2023
Due after 1 year
Due after 5 years
but within 5 years but within 10 years

Duewithin 1 year
¥62,399
29,703
2,350¥94,452

–
–

–
–

¥859
¥859

¥1,724¥1,724Due
after 10 years

–
–

¥100
¥100

Thousands of U.S. dollars
2023
Due after 1 year
Due after 5 years
but within 5 years but within 10 years

Duewithin 1 year
$467,268
222,4280
17,598$707,294

Dueafter 10 years
–
–

–
–

–
–

0
$6,433$6,4330$12,910$12,910Due
after 10 years

–
–

0
$749
$749

Note2: Repayment schedule for long-term loans payable, lease obligations and other interest-bearing liabilities subsequent to the balance sheet date is as follows:

Long-term loans payable
Lease obligations
Total

Long-term loans payable
Lease obligations
Total

Long-term loans payable
Lease obligations
Total

Due within 1 year–
¥3,610¥3,610Due within 1 year–
¥4,150¥4,150Due within 1 year–
$31,077$31,077

The 2 years–¥2,216¥2,216

Millions of Yen
2022
The 3 years
The 4 years––¥1,265¥704¥1,265¥704

The 5 years
–
¥387
¥387

Thereafter
–
¥420
¥420

The 2 years–¥3,278¥3,278Millions of Yen
2023
The 3 years
The 4 years––¥2,262¥1,036¥2,262¥1,036

The 5 years
–
¥670
¥670

Thereafter
–
¥543
¥543

The 2 years–$24,547$24,547

Thousands of U.S. dollars
2023
The 3 years
The 4 years––$16,939$7,758$16,939$7,758The 5 years–$5,017$5,017

Thereafter–$4,066$4,06624

(3) Matters concerning the breakdown of financial products by fair value level
The fair value of financial instruments is classified into the following three levels according to the observability and importance of the input related to thecalculation of the fair value.
Level 1:quoted prices in active markets for identical assets or liabilities that are observable by the entity at the measurement date are used 		
Level 2:inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly are used
Level 3:Unobservable inputs are used
If the inputs used to measure fair value are categorised into different levels of the fair value hierarchy, the fair value measurement is categorised in its entirety
in the level of the lowest level input that is significant to the entire measurement (based on the application of judgement).
(a) Financial instruments recorded on the consolidated balance sheet at fair value are as follows:
2022
Fair values (Millions of Yen)
Level 2
Level 3

Total

–
–

¥8,339¥8,339Level 1

2023
Fair values (Millions of Yen)
Level 2
Level 3

Total

¥7,728¥7,728¥1,007¥1,007––¥8,735¥8,735

Level 1Thousands of U.S. dollars
2023
Level 2
Level 3

Total

$57,870$57,870$7,541$7,541––$65,411$65,4112022
Fair values (Millions of Yen)
Level 2
Level 3

Total

Level 1Marketable securities and investments in securities:
Other securities
Total

Marketable securities and investments in securities:
Other securities
Total

Marketable securities and investments in securities:
Other securities
Total¥7,470¥7,470¥869¥869(b) Financial instruments that are not recorded on the consolidated balance sheet at fair value are as follows:

Level 1Marketable securities and investments in securities:
Held-to-maturity
Subsidiaries and affiliates
Total

Marketable securities and investments in securities:
Held-to-maturity
Subsidiaries and affiliates
Total

Marketable securities and investments in securities:
Held-to-maturity
Subsidiaries and affiliates
Total

–

¥4,9372,287¥2,287¥4,937–––¥4,9372,287¥7,225

Level 1

2023
Fair values (Millions of Yen)
Level 2
Level 3

Total

–

–

¥5,0292,367¥2,367¥5,029–––¥5,0292,367¥7,396

Level 1Thousands of U.S. dollars
2023
Level 2
Level 3

Total

–
–
–

$37,659
17,725$55,384––$37,659

17,725$17,725$37,659–

Notes:Explanation of the valuation technique used to calculate the fair value and the inputs related to the measurement of the fair value.
Marketable securities and investments in securities:
The fair value of listed stocks is evaluated using the price of the exchange. Listed stocks are traded in active markets and are therefore classified as Level 1 fair value.
Bonds and investment trusts are classified as Level 2 since they are evaluated using the prices offered by the financial institutions.
Since certificates of deposit are short-term, their fair value is almost equal to their book value, so they are classified as Level 2 although they are based on thebook value.

25

[Marketable securities](1) Held-to-maturity securities
Carrying
value

Millions of Yen
2022
Fair
Unrealizedvalue
gains (losses)

Held-to-maturity securities with fair value
exceeding carrying value¥1,326¥1,333¥7

Held-to-maturity securities with fair value notexceeding carrying value

3,608

3,604

(3)

¥4,934¥4,937¥3

Total

Carrying
value

Millions of Yen
2023
Fair
Unrealizedvalue
gains (losses)

Thousands of U.S.dollars
2023
Carrying
Fair
Unrealized
value
value
gains (losses)

Held-to-maturity securities with fair value
exceeding carrying value

¥609

¥611

¥1

$4,560$4,575$7

Held-to-maturity securities with fair value notexceeding carrying value

4,424

4,417

(6)

33,12933,076(45)¥5,034¥5,029(¥4)$37,697$37,659

($30)

Total

(2) Other securities
Carrying
value

Millions of Yen
2022
Acquisition
Unrealized
cost
gains (losses)

Other securities with carrying
value exceeding acquisition cost
StocksOther
Subtotal¥5,724705
6,430¥2,492
697
3,190¥3,232
7
3,239

1,745
163
1,909
¥8,339

1,976
163
2,140
¥5,330

(230)
–
(230)
¥3,009Other securities with carrying
value not exceeding acquisition cost
StocksOther
Subtotal
Total

Carrying
value

Millions of Yen
2023
Acquisition Unrealized
cost
gains (losses)

Thousands of U.S.dollars
2023
Carrying
Acquisition Unrealized
value
cost
gains (losses)

Other securities with carrying
value exceeding acquisition cost
StocksOther
Subtotal¥6,417787
7,204¥2,858776
3,635¥3,55810
3,569$48,053
5,893
53,946$21,402
5,811
27,220$26,64475
26,726

1,310
220
1,531
¥8,735

1,616
247
1,863
¥5,498

(305)
(26)
(332)
¥3,236

9,810
1,647
11,465$65,411

12,101
1,850
13,951$41,171(2,284)(195)(2,486)$24,232

Other securities with carrying
value not exceeding acquisition cost
StocksOther
Subtotal
Total(3) Other securities soldNo sale of other securities was recorded for the year ended March 31, 2022 and 2023.

(4) Impaired securities
If the market value at the end of the period falls by 50% or more compared to the acquisition cost, the entire amount will be treated as impairment loss, andif it falls by 30% to 50%, the amount deemed necessary in consideration of the possibility of recovery will be treated as impairment loss.
Not applicable for the year ended March 31, 2022. Also for the year ended March 31, 2023, were omitted due to lack of significance.

[Derivative transaction]
Not applicable26

19. Retirement Benefits(1) Outline of the retirement benefit plans adopted
The Company adopted a defined benefit corporate pension scheme and a defined contribution pension scheme as part of its retirement benefit plan.
In addition, certain subsidiaries have lump-sum payment plans and a defined benefit corporate pension plan. They calculate assets and liabilities for retirement benefits, and the retirement benefit expenses by means of a simplified method.

(2) Defined benefit plans (excluding plans to which the simplified method is applied)(a) Reconciliation of balance of retirement benefit obligation at beginning and end of the year
Millions of Yen
2022¥13,890
11,996
1,026
70
(166)
(781)
(2)
18
¥14,055

Balance at the beginning of the year
Restated balance at the beginning of the year
Service cost
Interest cost
Actuarial loss
Retirement benefits paid
Prior service cost
Other
Balance at the end of the year2023
¥14,055
11,996994
87(618)(1,747)–76¥12,847

Thousands of
U.S.dollars
2023$105,249
89,831
7,443
651(4,628)(13,082)–569$96,203(b) Reconciliation of balance of pension assets at beginning and end of the year
Millions of Yen
2022¥11,783
285
(314)
744
(620)
13
¥11,892

Balance at the beginning of the year
Expected return on plan assets
Actuarial loss
Contributions by the Company
Retirement benefits paid
Other
Balance at the end of the year2023
¥11,892
293
(534)
757
(1,672)
57¥10,794

Thousands of
U.S.dollars
2023$89,052
2,194(3,999)5,669(12,521)427$80,830(c) Reconciliation of balance of retirement benefit obligation and pension assets at end of year and net defined benefit liability and assets
recognized on the consolidated balance sheet
Millions of Yen

Unfunded retirement benefit obligation
Net liability for retirement benefits in the balance sheet

2022¥13,971(11,892)
2,079
84
2,163

2023
¥12,751(10,794)
1,956
96
2,053

Liability for retirement benefits
Asset for retirement benefits
Net defined benefit liabilities in the balance sheet

2,163–¥2,163

2,053–¥2,053Funded retirement benefit obligation
Plan assets at fair value

27

Thousands of
U.S.dollars
2023$95,484(80,830)
14,647719
15,3740
15,374–$15,374

(d) Retirement benefit expenses and detailed breakdown
Millions of Yen
2022¥1,026
70
(285)
239
(2)
¥1,048Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial loss
Amortization of prior service cost
Retirement benefit expense

2023
¥994
87
(293)
149
–
¥937

Thousands of
U.S.dollars
2023$7,443651(2,194)
1,116–$7,017(e) Reconciliation related to retirement benefits
A breakdown of items (prior to tax effect deduction) recognized as adjustments related to retirement benefits are as follows.

Prior service cost

–

2023
–

Thousands of
U.S.dollars
2023–

Actuarial loss (gain)

¥89

¥234

$1,752

Total

¥89

¥234

$1,752Millions of Yen
2022(f) Cumulative adjustments related to retirement benefits
A breakdown of items (prior to tax effect deduction) recognized as cumulative adjustments related to retirement benefits are as follows.
Millions of Yen
2022
Unrecognized prior service cost
Unrecognized actuarial loss
Total–(¥796)(¥796)

2023–(¥562)(¥562)

Thousands of
U.S.dollars
2023–($4,208)($4,208)(g) Pension assets① Breakdown of principal pension assets
The main categories by percentage of total pension assets are as follows.
Millions of Yen
2022
2023
14%
10%
51%
54%
16%
17%
19%
19%
100%
100%

General accounts
Bonds
StocksOther
Total② Method for setting long-term expected rate of return
The current and projected allocation of pension assets and the current and future long-term rates of return for the diverse assets that comprise thepool of pension assets are considered when determining the long-term expected rate of return on pension assets.
(h) Actuarial assumptions
Major actuarial assumptions (weighted-average) used are as follows.
Millions of Yen
2022
2023
0.8%
1.4%
2.5%
2.7%
5.0%
5.0%

Discount rate
Expected long-term rate of return on plan assets
Expected rates of salary increases28

(3) Defined benefit plans to which the simplified method is applied(a) Adjustment of balance of defined benefit plans to which the simplified method is applied in the retirement benefit obligation at beginning and end of the year
Millions of Yen
2022
¥79
41
(10)
(25)
0
¥85

Balance at the beginning of the year
Retirement benefit expense
Retirement benefits paid
Contributions to plans
Other
Balance at the end of the year

2023
¥85
67
(17)
(25)
2
¥112

Thousands of
U.S.dollars
2023
$637
502
(127)
(187)
15
$839

(b) Adjustment of balance of Retirement Benefit Obligations and Pension Assets at the End of the Year and Retirement Benefit Liabilities
and Retirement Benefit assets Recorded on the Consolidated Balance Sheets

Unfunded retirement benefit obligation
Net liability for retirement benefits in the balance sheet

2022
¥311
(386)
(75)
161
85

2023
¥336
(400)
(63)
176
112

Liability for retirement benefits
Asset for retirement benefits
Net liability for retirement benefits in the balance sheet

213
(128)
¥85

227
(115)
¥112

Thousands of
U.S.dollars
2023$2,516(2,995)
(472)
1,318
839
0
1,700
(861)
$839

2023
¥67

Thousands of
U.S.dollars
2023
$502

Millions of Yen
Funded retirement benefit obligation
Plan assets at fair value(c) Retirement benefit expenses
Retirement benefit expenses calculated using the simplified method are as follows:
Millions of Yen
2022
¥41

Retirement benefit expenses(4) Defined contribution plan
Contributions to defined contribution plans of the Company and its consolidated subsidiaries are as follows:
Millions of Yen
2022
¥567

Contributions to defined contribution plans

29

2023
¥606

Thousands of
U.S.dollars
2023$4,538

20. Tax Effect Accounting(1) The principal components of deferred tax assets and deferred tax liabilities are as follows:
2022

2023

Thousands of
U.S.dollars
2023

¥181
797
702
1,662
230
143
527
2,094
6,339
(1,529)(1,304)(2,834)
3,505

¥194
821
681
1,719
245
127
584
2,355
6,729
(1,585)(1,520)(3,105)3,624$1,4536,148
5,100
12,873
1,835
951
4,373
17,63550,389(11,869)(11,382)(23,251)
27,138(843)(168)(1,012)¥2,492(889)(160)(1,049)¥2,574(6,657)(1,198)(7,855)$19,275

Millions of Yen
Deferred tax assets:
Accrued enterprise tax
Accrued employees' bonuses
Net liability for retirement benefits
Loss carried forward(Note2)
Loss on write-down of investments in securities
Surplus on allowance for doubtful accounts
Unrealized gains
OthersSubtotal deferred tax assets
Less: valuation allowance for tax loss carryforwards(Note2)
Less: valuation allowance for deductible temporary difference
Subtotal valuation allowance(Note1)
Total deferred tax assets
Deferred tax liabilities:
Unrealized loss on other securities
OthersTotal deferred tax liabilities
Net deferred tax assets

Note1: Valuation allowance increased by ¥ 271 million, but there are no tmain reason.
Note2: A breakdown of net operating loss carryforwards and valuation allowance by expiry as follows:
Millions of Yen
2022
Due in 1 Yearor Less
Net operating loss carryforwards (a)Valuation allowance
Deferred tax assets–––

Due after
1 Year through2 Years–––

Due after
2 Years through3 Years–––

Due after
3 Years through4 Years–––

Due after
4 Years through5 Years–––

Due after
5 Years

Total¥1,662(1,529)¥132¥1,662(1,529)¥132(b)(a)The amount is determined by multiplying the corresponding net operating loss carryforwards by the effective statutory tax rate.
(b)Deferred tax assets of ¥ 132 million are related to tax loss carryforwards of ¥ 1,662 million. The tax loss carryforwards for which the Company recognizeddeferred tax assets are determined to be recoverable by expected future taxable income.
Millions of Yen
2023
Due in 1 Yearor Less
Net operating loss carryforwards (a)Valuation allowance
Deferred tax assets–––

Due after
1 Year through2 Years–––

Due after
2 Years through3 Years–––

Due after
3 Years through4 Years–––

Due after
4 Years through5 Years–––

Due after
5 Years

Total¥1,719(1,585)¥134¥1,719(1,585)¥134

Due after
5 Years

Total$12,873(11,869)$1,003$12,873(11,869)$1,003(b)

Thousands of U.S. dollars
2023
Due in 1 Yearor Less
Net operating loss carryforwards (a)Valuation allowance
Deferred tax assets–––

Due after
1 Year through2 Years–––

Due after
2 Years through3 Years–––

Due after
3 Years through4 Years–––

Due after
4 Years through5 Years–––(a)The amount is determined by multiplying the corresponding net operating loss carryforwards by the effective statutory tax rate.
(b)Deferred tax assets of ¥ 134 million are related to tax loss carryforwards of ¥ 1,719 million. The tax loss carryforwards for which the Company recognizeddeferred tax assets are determined to be recoverable by expected future taxable income.

30

(b)

(2) The reconciliation between the statutory effective tax rate and the actual effective tax rate when there is a difference between
the statutory effective tax rate and the actual effective tax rate after the application of tax effect accounting is as follows.
2022–

Effective statutory tax rate
Adjustments:
Entertainment and other nondeductible expenses
Dividends and other nontaxable income
Inhabitant tax on per capita levy
Nondeductible amortization of goodwill
Eliminated dividend received from subsidiaries
Effect of North Americas CARES Act.
Tax credit for research and development expenses
Valuation allowance
Difference of foreign subsidiaries' taxation rates
Equity in earnings of affiliates
OthersActual effective tax rate after adoption of tax effect accounting

–
–
–
–
–
–

–
–
–

–
–
–

2023
30.6
0.7
(6.1)
0.5
0.6
6.1
(0.2)
(0.2)
0.2
(0.1)
(0.3)
0.4
32.2%

Notes:
Fiscal Year ended March 31, 2022 are omitted as the difference between the effective statutory tax rates and the actual effective tax rates after adoption oftax effect accounting is five one-hundredths or less of the effective statutory tax rates.

31

21. Revenue Recognition(1) Disaggregated information for revenue generated from contracts with customers

Time Information
System business¥28,808
2,700
55,581––¥87,090

Millions of Yen
2022
Reportable segments
Environment
System business–––¥19,977
11,361¥31,339¥28,808
2,700
55,581
19,977
11,361¥118,429

Information Systems
Time Management Products
Parking Systems
Environmental Systems
Clean Systems
Revenue generated from contracts with customers

Time Information
System business¥31,353
2,841
64,708––¥98,903

Millions of Yen
2023
Reportable segments
Environment
System business–––¥20,838
13,068¥33,906¥31,353
2,841
64,70820,83813,068¥132,810

Information Systems
Time Management Products
Parking Systems
Environmental Systems
Clean Systems
Revenue generated from contracts with customers

Thousands of U.S. dollars
2023
Reportable segments
Time Information
Environment
System business
System business$234,784–
21,275–484,559––$156,043–
97,858$740,625$253,901

Information Systems
Time Management Products
Parking Systems
Environmental Systems
Clean Systems
Revenue generated from contracts with customers

Total

Total

Total
$234,784
21,275484,559
156,043
97,858$994,533

Notes
Some revenues from lease transactions are included, but they are included in revenue generated from contracts with customers because they are immaterial.

(2) Basis for understanding the revenue generated from contracts with customers
The information that is the basis for understanding the revenue generated from contracts with customers is described in the "4. Summary of Significant Accounting Policies (5) Recognition criteria for significant revenue and expenses" in "Notes to Consolidated Financial Statements.

32

(3)Information about the relationship between the fulfillment of performance obligations based on the contract with customers and cash flow generated from the contract, and the amount and timing of revenue expected to be recognized from thecontract with customers existing at the end of the current consolidated fiscal year after the next consolidated fiscal year.
Fiscal Year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(a) Balance of contract assets and contract liabilities, etc.

Receivables generated from contracts with customers (Balance at the beginning of the year)
Receivables generated from contracts with customers (Balance at the end of the year)
Contract assets (Balance at the beginning of the year)
Contract assets (Balance at the end of the year)
Contract liability (Balance at the beginning of the year)
Contract liability (Balance at the end of the year)

Millions of Yen
2022¥26,407¥27,237¥768¥757¥3,902¥4,540On the consolidated balance sheet, contract assets are recorded in "Notes receivable, accounts receivable and contract assets", and contract liabilities are recorded in "Other current liabilities".
Contract assets are unbilled accounts receivable related to revenue recognized based on progress measurement in construction contracts
for some Parking Systems and Environmental Systems, and are transferred to trade receivables at the time of customer acceptance. Consideration for these performance obligations is generally received within one year after the performance obligation is satisfied, according
to separately determined payment conditions, and does not include any significant financing components.
In addition, there are no significant financial factors in the receivables arising from contracts with the Company group's customers.
Contract liabilities are primarily customer advance payments in contracts that continue to provide services. Of the outstanding contract
liabilities at the beginning of the period, the amount of revenue recognized in the current consolidated fiscal year is 2,973 million yen.
Also, the amount of revenue recognized from performance obligations that have been satisfied(or partially satisfied) in previous periods,
are immaterial.

(b) Transaction price allocated to residual performance obligations
The Company group applies practical expedients, and the above amounts do not include transaction prices related to unsatisfied performance obligations with an initially expected remaining period of one year or less.
As of March 31, 2022, the total transaction price allocated to the remaining performance obligations is 1,019 million yen. The remaining performance obligation is related to construction contracts for some Parking Systems and Environmental Systems, and is expected to be recognized asrevenue typically within two years depending on the progress of construction.
Also, there are no significant amounts not included in the transaction price in the consideration arising from the contract with the customer.
Fiscal Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(a) Balance of contract assets and contract liabilities, etc.
Millions of Yen
2023

Thousands of U.S. dollars
2023

Receivables generated from contracts with customers (Balance at the beginning of the year)¥27,237$203,961

Receivables generated from contracts with customers (Balance at the end of the year)¥29,703$222,428¥757$5,669Contract assets (Balance at the beginning of the year)
Contract assets (Balance at the end of the year)¥1,254$9,390Contract liability (Balance at the beginning of the year)¥4,540$33,997

Contract liability (Balance at the end of the year)¥5,186$38,835

On the consolidated balance sheet, contract assets are recorded in "Notes receivable, accounts receivable and contract assets", and contract liabilities
are recorded in "Other current liabilities".
Contract assets are unbilled accounts receivable related to revenue recognized based on progress measurement in construction contracts for some
Parking Systems and Environmental Systems, and are transferred to trade receivables at the time of customer acceptance. Consideration for these
performance obligations is generally received within one year after the performance obligation is satisfied, according to separately determined payment conditions, and does not include any significant financing components.
In addition, there are no significant financial factors in the receivables arising from contracts with the Company group's customers.
Contract liabilities are primarily customer advance payments in contracts that continue to provide services. Of the outstanding contract liabilities atthe beginning of the period, the amount of revenue recognized in the current consolidated fiscal year is 3,636 million yen.
Also, the amount of revenue recognized from performance obligations that have been satisfied(or partially satisfied) in previous periods, are immaterial.
(b) Transaction price allocated to residual performance obligations
The Company group applies practical expedients, and the above amounts do not include transaction prices related to unsatisfied performance obligations with an initially expected remaining period of one year or less.
As of March 31, 2023, the total transaction price allocated to the remaining performance obligations is 2,263 million yen. The remaining performance obligation is related to construction contracts for some Parking Systems and Environmental Systems, and is expected to be recognized asrevenue typically within two years depending on the progress of construction.
Also, there are no significant amounts not included in the transaction price in the consideration arising from the contract with the customer.

33

22. Segment Information(1) Outline of reporting segments
The reporting segments are defined as those business units which constitute the Company and from which separate financial information can be obtained.
The reporting segments are periodically reviewed by the Company's highest decision-making body to determine the allocation of management resourcesand evaluate financial results.
The Company maintains several business units at its head office, separated into product and service types. The role of these business units is to formulate
and implement domestic business strategies for similar types of products and services. In overseas business, meanwhile, local subsidiaries in each region
develop strategies in their respective business fields in cooperation with the relevant business unit at its head office and carry out business activities in accordance with such strategy.
Based on the above, the Company divides its business into two segments, from which separate financial information can be obtained on a consolidated
basis: the Time Information System business and the Environment System business. The operating results of these two segments are periodically reviewed by
the Company's highest decision-making body to determine the allocation of management resources and evaluate financial results.
As described above, the Company's reporting segments consist of the Time Information System business and the Environment System business.
The Time Information System business and the Environment System business manufacture and sell the following products:

Business segment

Time Information
System business

Sales category

Principal products

Information Systems

Time & Attendance (T&A), Human Resource (HR) systems, payroll
information systems, cafeteria systems, access control, proximity IC card
solutions, system time recorders, T&A and HR and payroll ASP services,time distribution and authentication services (digital time stamps)

Time Management Products

PC-linked time recorders, online time recorders, computerized time recorders, standard electronic time recorders, electronic time stamps, patrol
recordersParking Systems

Automatic fee settlement systems, access control systems, parking lot
management systems, bicycle parking lot management systems, automatictime registers, parking tower management systems, Internet-based parking guidance systems, commissioned parking lot management business

Environmental Systems

Industrial vacuum cleaners, standard dust collectors, mist collectors, fume
collectors, large dust collection systems, deodorization systems, hightemperature hazardous-gas removal systems, pneumatic powder conveyance systems, environmental equipment monitoring/maintenance support
systems, industrial air purifiers

Clean Systems

Commercial vacuum cleaners, automatic floor scrubbers, robotic floor
scrubbers, road and industrial sweepers, high-speed burnishers, polisher chemical products, supplies and accessories, wooden floor sanding
machines, consigned janitorial management services, electrolytic watercleaning systems, alkaline electrolytic water industrial cleaning systems

Environment
System business(2) Methodology for determining Net Sales, Profit/Loss, Assets, Liabilities, and other line item amounts by reporting segment
The accounting methods of the reported business segments are in accordance with the accounting policies adopted to prepare the consolidated financial
statements.
Profits for the reporting segments are reported at the operating profit level.
Intersegment internal earnings and transfers are based on prevailing market prices.

34

(3) Sales, profits or losses, assets and other items by reportable segments
Millions of Yen
2022
Reportable segments
Time information Environment
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
Total
Segment profit or loss
Segment assets
Depreciation and amortization
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets¥87,090–
87,09012,56970,331
6,879
2,261
6,940

¥31,339–
31,3394,136
29,704
644
–
334

Total
¥118,429–
118,429
16,706
100,036
7,523
2,261
7,274

Millions of Yen
2023
Reportable segments
Time information Environment
Total
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
Total
Segment profit or loss
Segment assets
Depreciation and amortization
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets¥98,903–
98,903
14,92779,509
7,773
2,331
9,363

¥33,906–
33,906
4,705
30,935748–
781¥132,810–
132,810
19,632
110,4448,521
2,331
10,145Adjustments/
Eliminations

Consol:dated–––(¥3,813)59,306547–
259¥118,429–
118,429
12,893
159,342
8,070
2,261
7,534

Adjustments/
Eliminations–––(¥3,844)
60,806496–
257

Thousands of U.S. dollars
2023
Reportable segments
Adjustments/
Time information
Environment
Eliminations
Total
system business system businessNet sales:
Sales to third parties
Intersegment sales and transfers
Total
Segment profit or loss
Segment assets
Depreciation and amortization
Investment in equity-method affiliates
Increase in tangible and intangible fixed assets$740,625–
740,625
111,779
595,395
58,207
17,455
70,114$253,901–
253,901
35,233
231,653
5,601
–
5,848

35

$994,533–
994,533
147,012
827,048
63,80917,45575,970–––($28,785)
455,339
3,714
–
1,925

Consol:dated¥132,810–
132,810
15,787
171,250
9,017
2,331
10,402

Consol:dated$994,533–
994,533
118,219
1,282,387
67,523
17,45577,894

[Related Information]
Fiscal Year ended March 31, 2022 (April 1, 2021 to March 31, 2022)(1) Information by product and service
Since similar information is disclosed in the segment information, the description is omitted.

(2) Geographic Segments(a) Net salesJapan¥74,104

North America¥14,155

Millions of Yen
Total¥118,429

Others¥30,170

Note: Sales are based on the location of customers and are classified by country or region.
(b) Tangible fixed assets
Japan¥17,474

Others¥8,305

Millions of Yen
Total¥25,780(3) Information by major customer
Not applicable because there is no single customer who accounts for more than 10% of net sales shown in the consolidated statement of income.

Fiscal Year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Information by product and service
Since similar information is disclosed in the segment information, the description is omitted.

(2) Geographic Segments(a) Net salesJapan¥77,492

America¥16,919

Korea¥16,060

Others¥22,338

Millions of Yen
Total¥132,810

Others$167,276

Thousands of U.S. dollars
Total$994,533

Note: Sales are based on the location of customers and are classified by country or region.

Japan$580,291(b) Tangible fixed assets
Japan¥17,621Japan¥131,953

America$126,696

Korea$120,264

China¥6,292Others¥5,221Millions of Yen
Total¥29,135

North America¥47,117

Others¥39,097

Thousands of U.S. dollars
Total¥218,174(3) Information by major customer
Not applicable because there is no single customer who accounts for more than 10% of net sales shown in the consolidated statement of income.
Geographic Segments in the previous consolidated fiscal year is presented in accordance with the classification before the change, since it is difficult to prepare such information in accordance with the classification after the change.

36

[Information on "Impairment loss of fixed assets" by reportable segments]
Not applicable for the year ended March 31, 2022 and 2023.

[Information on both "amortization of goodwill" and "unamortized balance" by reportable segments]
Information on both "amortization of goodwill" and "unamortized balance" by reportable segments as at and for the years ended March 31, 2022 and 2023 are
as follows:
Millions of Yen
2022

Amortization of goodwill
Unamortized balance

Reportable segments
Time Information Environment
System business System business
¥336
¥14
1,417
–

Amortization of goodwill
Unamortized balance

Millions of Yen
2023
Reportable segments
Time Information Environment
Total
System business System business
¥311
–
¥311
1,214
–
1,214

Amortization of goodwill
Unamortized balance

Thousands of U.S. dollars
2023
Reportable segments
Eliminations/Time Information
Environment
Corporate
Total
System business System business$2,329–¥2,329
–
–
9,091
–
9,091

37

Total
¥351
1,417

Eliminations/
Corporate––

Eliminations/
Corporate
–
–

Total
¥351
1,417

Total
¥311
1,214

Total
$2,3299,091

23. Per Share Data
Yen
2022
¥1,563.31
131.49Net assets per share
Net income per share

U.S. dollars
2023¥1,656.43
154.422023$12.404
1.16

Note1: Details for the diluted net income per share are not stated, because there are no potential shares.
Note2: The basis for these calculations is as follows:
Millions of Yen
2022¥9,733
9,733
74,027,602

Net income in the consolidated statement of income
Net income relating to common stock
Average number of shares of common stock outstanding during the year2023
¥11,288
11,28873,104,399

Thousands of
U.S. dollars
2023$84.52984.529Note3: The basis for these calculations is as follows:
Millions of Yen
2022
116,271752(752)
115,519
73,893,918

Total net assets in consolidated balance sheet
Amount to be deducted from total net assets(Out of the above non-controlling interest portion)
Net assets relating to common stock
Number of shares of common stock used to compute net assets per share2023
121,638882(882)
120,756
72,901,514

Thousands of
U.S. dollars
2023$910.873
6.605(6.605)904.268

Note4:
Shares remaining in trust of the Director's Compensation BIP Trust and the Employee Stock Ownership Plan (J-ESOP) recognized in shareholders' equity
as treasury stock are included in treasury stock to be deducted in the calculation of the average number of shares outstanding over the period to calculate
net income per share and also included in treasury stock to be deducted in the calculation of the number of shares of treasury stock at the end of the period to calculate net assets per share. The average number of shares of such treasury stock outstanding over the period that was deducted to calculate net
income per share was 412,477 shares for the previous fiscal year and 398,794 shares for the current fiscal year. The number of shares of treasury stock at
the end of the period that was deducted to calculate net assets per share was 400,519 shares for the previous fiscal year and 398,219 shares for the current
fiscal year.

38

24. Significant Subsequent Events[Acquisition of treasury stock]
On April 26, 2023, the Board of Directors of the Company approved the resolution to acquire treasury stock pursuant to theprovisions of Article 156 of the Companies Act as applied by replacing certain terms under the provisions of Article 165, Paragraph 3 of the same Act.
(1) Reasons for acquisition of treasury stock
While strengthening shareholder returns, treasury stock is acquired in order to flexibly carry out its capital management strategies and to improve capitalefficiency in response to changes in the business environment.

(2) Details of the acquisition① Class of shares to be acquired:Common stock of the Company② Total number of shares to be acquired:Up to 800,000 shares (upper limit)[Representing 1.09% of the Total number of shares issued (excluding treasury stock)]③ Total acquisition cost

:Up to JPY2,400 Million (upper limit)[Up to 17,972 Thousands of U.S. dollars]④ Acquisition period:From April 27, 2023 to August 31, 2023

39

Corporate Data
Domestic Operations
HEAD OFFICESALES OFFICESDOMESTIC SUBSIDIARIES275 Mamedocho, Kohoku-ku, Yokohama,
Kanagawa, JAPAN 222-8558

71 Sales Offices Located in major cities,
including

AMANO MANAGEMENT SERVICE CORPORATIONAMANO MAINTENANCE ENGINEERING CORPORATIONAMANO BUSINESS SOLUTIONS CORPORATIONAMANO SECURE JAPAN CORPORATIONENVIRONMENTAL TECHNOLOGY CO., LTD.
AMANO MUSASHI ELECTRIC CORPORATIONAMANO AGENCY CORPORATIONFACILITIESSAPPORO Office, SENDAI Office
OMIYA Office, TOKYO Office
NAGANO Office, NIIGATA Office
YOKOHAMA Office, HAMAMATSU Office
NAGOYA Office, KANAZAWA Office
KYOTO Office, OSAKA Office
OKAYAMA Office, HIROSHIMA Office
TAKAMATSU Office, FUKUOKA Office

SAGAMIHARA Factory
HOSOE Factory

Board of Directors
Chairman & Representative Director(Full-time) Audit & Supervisory Board Member

Hiroyuki TSUDA
President & Representative Director

Masahiko MORITA
Yasuhiro SASAYA

Manabu YAMAZAKI(Outside) Audit & Supervisory Board Member

Director & Managing Operating Officer

Hanae NAKAYA
Naofumi NAGAKAWA

Kunihiro IHARA
Yoshihiko HATAManaging Operating Officer

Susumu IKOMA

Director & Operating Officer

Yasuo FUJII
Masashi NABESHIMA
Tatsuo MAEKAWA
Tomonori KITAMI
Nobuyuki HORIMOTO
Kenichiro SAKAGUCHI
Aki MORIGUCHI
Eiji IWATA

Operating Officer

Fujinori TAZO

Myeong-Jin JEON
Yoshikazu TOAKE
Toshiyuki NISHIKIORI
Takeya HAYASHITANI
Tetsuji ISHIKAWA(Outside) Director

Kiyoshi KAWASHIMA
Michinobu OMORI
Sumie WATANABE

Overseas Operations
1. AMANO USA HOLDINGS,INC.
2. AMANO CINCINNATI,INC.
3. AMANO CINCINNATI,INC. OHIO FACTORY
4. AMANO McGANN CANADA INC.
5. AMANO PIONEER ECLIPSE CORPORATION
6. AMANO McGANN, INC.
7. ACCU-TIME SYSTEMS, INC.
8. AMANO TIME&ECOLOGY DE MEXICO S.A. DE C.V.

9

17.		AMANO SOFTWARE ENGINEERING (SHANGHAI)CO.,LTD.
9. ACCU-TECH SYSTEMS, Ltd.
18.		AMANO PARKING SERVICE LTD.
10. AMANO EUROPE HOLDINGS, N.V.
19.		AMANO MALAYSIA SDN.BHD.
11. AMANO EUROPE, N.V.
20.		AMANO TIME&AIR SINGAPORE PTE.LTD.
12. AMANO TIME&PARKING SPAIN S.A.
21.		PT.AMANO INDONESIA
13. HOROQUARTZ S.A.
22.		AMANO THAI INTERNATIONAL CO.,LTD.
14. HOROQUARTZ MOROCCO S.A.
23.		AMANO VIETNAM CO.,LTD.
15. AMANO KOREA CORPORATION
16. AMANO INTERNATIONAL TRADING(SHANGHAI)CO.,LTD.

10,11

13

6

12
15

14

19

22

8

23

20
21

40

3
5

AMANO CORPORATION

16,17
18

4

7
1,2

275 Mamedocho, Kohoku-ku, Yokohama, Kanagawa, 222-8558 JAPAN
PHONE : +81 (45) 401-1441
FAX: +81 (45) 439-1150
HOME PAGE : https://www.amano.co.jp/en/