Business Policies
1. Basic Management Policy
Amano's management philosophy is to create new values and contribute to the realization of asafe, comfortable, and 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-year period from April
2023 to March 2026, and has revised the numerical targets in consideration of the businessresults of the current period.
The details of the plan are posted 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 (digital transformation) 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 to solve social issues such as maximizing the value of human capitaland reducing environmental impacts.
Under this policy, we will expand our business performance based on the three growth drivers, aiming to achieve sales of ¥168,000 million, operating profit of ¥23,000 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 MediumTerm Business Plan.".
(i) Information Systems: Software plus cloud services(ii) Parking Systems: Proposals centric to the Data center for Systems and Management Services(iii) Clean Systems: Robot plus cloud service proposals[2] Numerical targets(Major assumptions of the numerical targets)(i)	Information Systems Business at non-consolidated Amano is expected to see continued
investment in systems by various companies, including those in industries that are exempt
from the "Work Style Reform Law" and in the public and education sectors. In addition,
Parking Systems Business is expected to post record-high performance due to full-scale
expansion of renewal investment, which had been settled by the Coronavirus Pandemic,
as well as support for new banknotes. Environmental Systems Business is expected to growmainly due to investment in large-scale systems for rechargeable batteries for EVs, etc.,
while Clean Systems Business is expected to achieve significant earnings growth due to expanded sales of cleaning robots.
(ii)	The domestic and overseas parking lot management service business will further drive theAmano Group overall performance as a growth driver.
(iii)	Amano-McGann, Inc. in North America, whose performance is on the way to recovery,plans to further improve profitability through new products and restructuring of the sales
structure.
1

(Millions of yen)

Net sales
Operating profit
Operating profit ratio (%)
Ordinary profit
Net income attributable to ownersof the parent company

FY 2023
FY 2024
FY 2024
FY 2025FY 2025
(year ended March 2024) (year ending March 2025) (year ending March 2025) (year ending March 2026) (year ending March 2026)(Results)(Original Plan)(Revised)(Original Plan)(Revised)
Amount YoY (%) Amount YoY (%) Amount YoY (%) Amount YoY (%) Amount YoY (%)
152,86415.1 150,000(1.9) 160,000
4.7 160,000
6.7 168,000
5.0
19,56723.9
19,500(0.3)
21,0007.3
21,0007.7
23,000
9.5
12.8%
–
13.0%
–
13.1%
–
13.1%
–
13.7%
–
20,85523.0
20,500(1.7)
22,0005.522,000
7.3
24,0009.1
13,141

16.4

13,5002.7

14,50010.3

14,5007.4

15,500

6.9

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 acquire treasury stock, 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, the year-end
dividend for the fiscal year ending March 31, 2024, is ¥95 per share, and the annual per-share
dividened for this fiscal year is ¥135 (including ¥40 per share paid as the interim dividend), an
increase of ¥25 from the annual per share dividend of ¥110 for the previous fiscal year.
In addition, the Board of Directors approved a resolution regarding the acquisition of treasury
stock on April 25, 2024. The detail of this matter is available for inspection on the Amano’swebsite.
(https://www.amano.co.jp/en/ir/dl/news/2024/20240425_2.pdf).
As a result, the consolidated payout ratio was 74.5%, the net asset dividend rate was 7.9%,
and the total return ratio was 89.7%.
With regard to the dividend for the next fiscal year ending March 31, 2025, 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 ¥140 (with an interim dividend of ¥45
and a year-end dividend of ¥95).
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 Director2