FINANCIAL REPORT
April 2021 - March 2022

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. Medium-long term business strategy of the company
Amano launched the 8th Medium-term Business Plan for the three years from April 2020 toMarch 2023. An outline of the plan is set out below.
[1] Basic policies
Under the 8th Medium-Term Business Plan, with the Group's management concept of "The3rd Stage Towards a 100-year Company-Establishing a solid business foundation that leads tosustainable growth," we will address the following two key issues towards achieving the goalof enhancing our corporate value while keeping ESG management in mind and emphasizing
the establishment of a business management system that is suitable for the era of globalizationand further efforts to ensure thorough compliance as a foundation.
(i) Investments in growth drivers
In response to the rapidly evolving digital transformation movements, Amano will vigorously push forward with digitalization and the effective use of IT in each business area. In
particular, we will invest steadily in growth drivers including strategic investments in software assets, IoT, AI, etc., to realize sustainable growth in sales and profit.
We will also continue our investments for further growth in venture companies and startup
companies and M&A activities, which started under the 7th Medium-Term Business Plan, toestablish the sixth core business.
(ii)  Establishment of unparalleled competitive advantage based on synergy among thestrengths of each business division
After analyzing and grasping the strengths of each business division and group companies
all over again, we will execute strategic investments shown in (i) above to further strengthen
them, while ensuring synergy among them to further enhance our competitive advantages.
In the course of this initiative, Amano will strive to deepen and enhance the customer basethat we have developed and to further enhance the product lineup by anticipating market
trends.
The target of the 8th Medium-term Business Plan is the achievement of the "AVERAGE 12% in
the 3KPIs."(1) Operating profit ratio (OPR): Achieve at least 13%(2) Cash conversion cycle (CCC): Shorten by at least 12%(3) Return on equity (ROE): Achieve at least 11%
Measures and issues for each region under these basic policies are as follows:
1. Japanese market
In the Japanese market, we will reinforce ties among domestic group companies and withother companies outside our group, and strengthen our capacity to provide holistic solutions(which cover hardware, software, and services) across all business fields, both qualitatively andquantitatively. We will also promote the 3-in-1 activities that leverage the strength of direct
sales and support. Under our medium-to long-term strategies based on market and competitive
analysis, our group will aim to establish an unparalleled competitive advantage in each business by building a sales capability that fits the market trend to reinforce the relationship withexisting customers and to expand transactions with new customers.
In the Information Systems, the bills related to the "work style reform" were enacted in April

1

2019 and applied to smaller businesses in April 2020. In addition to the need for proper understanding for working hours to correct long working hours, demand continues for employment systems to improve and rebuild legitimate working hour management becoming a corporate responsibilities with change in working styles due to the introduction of equal pay for
equal work, side jobs and dual employment, and teleworking, etc. which expanded rapidly
with the COVID-19 pandemic. Demand for cloud services is also expected to increase as theneed for various administrative procedures to become available electronically grows, in addition to the need to track employees’ work status due to an increase in the number of people
working from outside the office.
In response to this market environment, we will continue to market holistic solutions with the“TimePro-NX,” which is an integrated software package to manage time & attendance, humanresource management, and payroll, to further increase market share in the small-to-medium
sized enterprise (SME) market. At the same time, for the medium-to-large enterprise market
where demand is firm, we will work to strengthen solutions for time & attendance, human resource management, payroll, and accounting software as well as consulting services by collaborating with CREO CO., LTD., and using “TimePro-VG.” We will aim for continued expansion
by improving the functions of our cloud-based time & attendance management systems, which
can be customized to reflect each company’s work rules, in response to the strong demand forcloud services in line with the penetration of new work styles such as teleworking, etc. In addition, we will strengthen our business development efforts around attendance management insuch industries as healthcare, construction, and transportation, etc. to which the bills related
to the "work style reform" will be applied from 2024 onwards, following the expiration of thegrace period and we will actively promote the expansion of the "e-AMANO" cloud service tooffer the electronic processing of various personnel affairs notifications and shift scheduling. In
this way, we will maintain and expand our customer base with our one-stop services encompassing hardware, software, services, and cloud to further expand our business portfolio.
The Parking Systems has not yet seen full-scale recovery in the parking lot market, althoughparking lot utilization rates are recovering from the sharp decline caused by the COVID-19
pandemic. Even in such a situation, new demand continues to arise from the spread of cashless payment and ticketless operation. In addition, there are rising needs to offer solutions to
reduce parking lot management costs, ensure safety and security, heighten environmental considerations, and improve user convenience, as well as to offer cloud-based services and provide operational solutions based on ETC technology amid the trend of digital transformation.
Moreover, we can also expect new demand to be generated from the scheduled issuance of
new banknotes (Bank of Japan notes) and the 2025 Japan International Exposition (Expo 2025
Osaka, Kansai).
Given these changes in the market environment, we will further strengthen partnerships withmajor parking lot management companies and provide various services through our parking
lot data center for small- and medium-sized parking lot management companies while improving the functions and operability of system equipment. We will also continue to respondto transitions in the market, including the increased demand for parking reservations, the migration towards a sharing economy, and the advancement of self-driving technology, etc. In
addition, we will continue to strengthen proposals in the consigned parking lot management
service business by utilizing the data center service and strengthen and expand our efforts forfacilities such as bicycle parking lots, security gates, and toll roads, etc. in order to expand ourbusiness.
The Environmental Systems has seen businesses start to resume their capital investment as the
Chinese economy is recovering, but there is uncertainty currently in the outlook for corporate
appetite for capital investment due to the shortages of parts and materials and rising geopolitical risks.
Given this market environment, we will aim to increase the quantity of sales of standard
equipment in Japan by rolling out new products and applying existing products to new areas,and expand business domains including the pharmaceutical, food, and cosmetics markets,2

which are less affected by business sentiments, and growth strategy areas. We will also work
to strengthen our engineering capabilities and comprehensive sales, including that of peripheral equipment based on energy- and labor-saving proposals as well as new service proposals leveraging IoT, by partnering with industrial equipment manufacturers and combining ourtechnologies with those of other companies. With the rising demand to create a hygienic andsafe environment, we will work to expand the sales of industrial air purifiers to new customers,such as companies in the medical field, various service providers, and retailers.
In the Clean Systems, the trend of companies trying to reduce cleaning costs continues. Amid
the aging of sanitation workers and an increase in the proportion of women among newly
hired workers, the need to improve the safety and operability of cleaning equipment and reduce the burden of these workers has been increasing. At the same time, the need to maintainbuilding aesthetics at a low cost and the demand for cleaning work automation using robot
technology have also been increasing. Furthermore, new demand is expanding with the rising
consciousness for cleanliness under the COVID-19 pandemic and the need for a cleaning stylethat is friendly to the global environment.
In response to these market conditions, in coordination with Preferred Robotics Inc. to which
we contributed capital in November 2021, we will enhance the product lineup to target the
expansion of the robotic cleaning market, enhance various services using communication
functions, and work to expand the factory market by introducing cleaning devices. We will
also strengthen recurring revenues by promoting maintenance contracts and increasing theorder intake for supplies, which will maintain and expand our customer base. We will also
promote comprehensive proposals for consigned janitorial management services that make fulluse of cleaning robots, aesthetic maintenance, and improving public health management byusing electrolyzed water generators.
2. North American market
In the Parking Systems, we will aim to achieve full recovery in the financial performance of Amano
McGann, Inc. as soon as possible by expanding system sales and enhancing the functionality andexpanding the sales of new cloud-based systems in the market to achieve sales recovery. In the Information Systems, we will strive to expand the business by increasing the sales of Accu-Time Systems, Inc.'s time and attendance information terminals and enhancing cloud-based products. In the
Clean Systems, we will further expand the business of the wooden floor sanding machine divisionof Amano Pioneer Eclipse Corp., while developing new niche areas and sales channels. In the Environmental Systems, Amano Time & Ecology de Mexico S.A. de C.V. will proceed with acquiring
new customers and expanding orders received in the North American market, including Mexico.
3. European market
In the Information Systems, we will further enhance our customer base by promoting Horoquartz's workforce management and access control businesses as well as by expanding cloudservices. At the same time, we will aim to expand this business into new countries other thanFrance through M&A. In the Parking Systems, we will strive to expand operations by promoting
system equipment sales and developing a consigned parking lot management service business.
4. Asian market
In the Asian region, we will aim to expand Parking Systems operations by strengthening services in the consigned parking lot management service business and by expanding services
into new regions. In the Environmental Systems, we will strengthen our engineering capabilities as well as sales and service systems for Japanese companies operating in Asia by making
use of the ties between our group companies across Asia and our head office in Japan, while
also making proposals to local companies. We will work to establish a supply chain networkin each region.

3[2] Numerical targets
Our present three-year Medium-Term Business Plan has come into effect from April 2020 until
March 2023, in which we are aiming to achieve ¥130,000 million or higher in net sales and¥16,500 million or higher in operating profit in the FY 2022, the last fiscal year of the plan.
(Major assumptions of the numerical targets)(i)	The earnings plan for the FY2022 (year ending March 31, 2023), which marks the final
year of the 8th Medium-Term Business Plan, has been revised based on the assumptionthat Amano and our group companies in and out of Japan will remain affected by the
COVID-19 pandemic. In the original plan, we expected the COVID-19 pandemic to haveended. However, in reality, COVID-19 has lingered throughout the world. In addition,
procurement issues for parts and materials, such as semiconductors, etc. still remain due
to supply chain disruptions.
(ii)	For unconsolidated Amano, the Information Systems is expected to remain on a growthtrend, particularly in the area of software, supported by the government-driven work stylereform initiatives, with the movement to reform work styles spreading to the public market and industries such as hospitals, construction, and transportation, etc. Meanwhile, theParking Systems will start growing again as the investment appetite of parking lot owners
is expected to recover. The Environmental Systems is expected to keep improving due
to strong orders for machine tools and resumption of equipment investment in the car
industry, etc. In addition, the Clean Systems is expected to achieve growth in net sales,
particularly for robots, due to the increasing demand with the rising consciousness forcleanliness under the COVID-19 pandemic.
(iii)	Consigned parking lot management services of the Parking Systems both in Japan andabroad are expected to drive consolidated growth in FY2022.
(iv)	Amano McGann Inc., in North America will launch a new product on the market in thefirst half of FY2022, and they are expected to improve their profitability drastically fromthe second half of FY2022.
Please note that the numerical targets for more one-year Medium-Term Business Plan set out
below are tentative at this point. Currently, COVID-19 is causing too many uncertainties hampering realistic future planning, so we intend to review these targets appropriately according
to the future changes in the business environment, at which time, we hope to have a better
outlook for the pandemic and the economic recovery trends of each country.

Numerical targets(Millions of yen)

FY 2020
FY 2021
FY 2022
FFY 2022(year ended March 2021) (year ended March 2022) (year ending March 2023) (year ending March 2023)(Results)(Results)(Original)(Revised)
Amount YoY (%) Amount YoY (%) Amount YoY (%) Amount YoY (%)
Net sales
113,598(14.6) 118,429
4.3 140,000
18.2 130,000
9.8Operating profit
9,934(38.6)
12,89329.8
18,50043.5
16,50028.0
Operating profit ratio (%)
8.7%
–
10.9%
–
13.2%
–
–
12.7%
Ordinary profit
11,017(34.7)
13,91926.3
19,50040.1
17,20023.6
Net income attributableto owners of the parent
7,248(31.4)
9,733
34.3
13,00033.6
11,500
18.1
company4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 ¥50 per share, and the annual per-share dividend for this fiscal year
will be ¥75 (including ¥25 per share paid as the interim dividend), an increase of ¥10 from theannual pershare dividend of ¥65 for the previous fiscal year.
In addition, Amano celebrated the 90th anniversary in November 2021. We would like toexpress our sincere gratitude to our shareholders and all other concerned parties for their support, and we would like to pay a commemorative dividend of ¥20 in order to repay the support we have received so far. As a result, the annual dividend per share will increase by ¥30 to¥95.
On the other hands, the Board of Directors approved a resolution regarding the acquisitionof treasury stock on April 26, 2022. The detail of this matter is available for inspection on the
Amano’s website.
(https://www.amano.co.jp/English/ir/dl/news/2022/20220426_2.pdf)
As a result, the consolidated payout ratio will be 72.5%, the net asset dividend rate will be 6.2%,
and the total return ratio will be 98.2%.
With regard to the dividend for the next fiscal year ending March 31, 2023, 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 pershare dividend of ¥100 (with an interim dividend of ¥30
and a year-end dividend of ¥70).
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.

Hiroyuki TSUDA
President
Representative Director

5General Business Results
Business Results in the Year Ended March 31, 2022

General Business Results for This
Fiscal Year
During the consolidated fiscal year
under review, the effect of COVID-19 continues, but the world
economy showed some signs of recovery triggered by the continuous
recovery trend in the Chinese economy and the resumption of economic activities with the COVID-19
vaccination proceeding forward invarious countries. However, it seems
that the future outlook for theJapanese economy continues to be
uncertain due to the global shortage of materials including semiconductors caused by the supply chain
disruptions, and concerns about
resurgence of COVID-19 in Japanand abroad, and impact of tensions
between Russia and Ukraine , 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-term
Business Plan launched in April 2020,

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 ¥118,429 million, up by 4.3%
year-on-year. Operating profit increased by 29.8% to ¥12,893 million,
ordinar y profit went up by 26.3%
to ¥13,919 million, and net income
attributable to owners of the parent company increased by 34.3% to¥9,733 million, resulting in increases
in both sales and profit.
(Main factors behind the businessresults)( i )	 A t non-consolidated Amano,
although the tailwind of “workstyle reform” continues, net sales
decreased due to the reissuanceof a national emergency declaration. Sales of the Information Systems decreased due to the continuation of the negative trend
in hardware, although demand
for software remained strong.
In addition, although the Parking Systems began to recover inthe second half year of this fiscal
year, its sales declined due to thestrong restraint on investment bymajor parking lot management
firms and owners of parking lots
until the first half year of this fiscal year. On the other hand, theEnvironmental Systems remained
firm with the recover y in the
Chinese economy.
(ii)	In domestic group companies,
consigned parking lot management ser vice business was recovering smoothly. In addition,
T&A cloud services continued togrow.
(iii)	In overseas markets, although
Amano McGann, Inc. decreased
their sales, sales in North America increased mainly because
Amano Pioneer Eclipse Corporation in Nor th America grew.
In addition, sales increased inEurope and Asia by double digits.
Especially, Horoquar tz, S.A. in
France continued to grow theirbusiness results by mainly cloudservices, whose sales exceeded
even that as of previous fiscal
ye a r e n d e d M a r c h 31, 2020,
which was before the COVID-19
spreading.

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(Unit: Millions of yen)

FY2020
FY2021(April 1, 2020–March 31, 2021) (April 1, 2021–March 31, 2022)
Amount Ratio (%) Amount Ratio (%)

ChangeAmount%27,8782,856
53,854
84,590

24.6
2.5
47.4
74.5

28,8082,700
55,58187,090

24.3
2.3
46.9
73.5

929
(156)
1,726
2,499

3.3
(5.5)
3.2
3.0

18,664
10,34329,007
113,598

16.4
9.1
25.5
100.0

19,977
11,361
31,339118,429

16.9
9.6
26.5
100.0

1,313
1,017
2,331
4,830

7.0
9.8
8.0
4.3

6

Time Information System business• Information Systems:
Time & Attendance (T&A),
Human Resources (HR) systems,
Payroll information systems, access
control, and digital time stamps• Time Management Products:
PC-linked time recorders, online
time recorders, and time stamps• Parking Systems:
Parking lot management systems,
bicycle parking lot management
systems, and consigned parking lot
management service
The sales in this business totaled¥87,090 million, up by ¥2,499 million (up 3.0%) year-on-year. The following is a breakdown of sales bybusiness division.

Information Systems¥28,808 million (up 3.3% year-on-year)

In this business, with the enactmentof the bills related to the "workstyle reform" in April 2019, attention
is focused on the future trends ofcompanies' labor management efforts with digitalization and network
technologies to improve productivity, make full use of diverse humanresources, and introduce additional
work styles such as teleworking,while new statutory requirements,
such as the upper limit on working
hours, are put into practice one byone.
In response to these market conditions, we, being "Amano—active in
the area of HR (Human Resources),"
added access control and security
to the list of our "3-in-1" proposal,
comprising time & attendance (T&A),
payroll, and human-resource management, thus striving to bolster ouractivities to provide total solutions
from system ownership to systemuse.
Domestic sales for the current term
were as follows. For Amano, on an
unconsolidated basis, software sales
increased by ¥241 million (2.7%),

hardware sales decreased by ¥522
million (16.7%), and sales generated by maintenance contracts andsupplies services increased by ¥41
million (0.9%) year-on-year. Softwaresales increased because the orders
for “TimePro-VG,” a piece of software for medium-sized and large
businesses, remained strong and“TimePro-NX,” which is for small
to medium-sized businesses was
also recovering in the second halfof the current term. The decreasein hardware sales was due to theeffect of repeated declarations of astate of emergency. The cloud services developed by Amano Business
Solutions Corporation continued toperform strongly, supported mainly
by an increase in the number of users due to teleworking.
Overall overseas sales increased by¥1,151 million (11.2%). While thesales of Accu-Time Systems, Inc.
in Nor th America decreased, thesales of Horoquartz S.A. in Europe
increased because their highly profitable cloud services continued toperform strongly.

Time Management Products¥2,700 million (down 5.5% year-on-year)

Although there is constant demand
for standard devices, the trend toward lower prices has continued inthis business.
In this market environment, we havebeen working on expanding sales ofour "TimeP@CK series" time recorders, which are equipped with aggregation software compatible with
PCs and offer improved usability andfunctionality, as well as concentrating
on expanding our customer basethrough the promotion of "Userclub," a fee-based service for members. We have also proposed a newusage method by launching compact
time recorders equipped with Wi-Fi
functions as a standard feature andaccommodating cloud connectivity.
Overall domestic sales for the current term decreased by ¥166 mil7

lion (6.8%) year-on-year as the salesof both standard and PC-linked time
recorders declined.
Overall overseas sales increased by¥31 million (6.0%) as sales in North
America increased, although sales in
Europe and Asia fell.

Parking Systems¥55,581 million (up 3.2% year-on-year)

To respond to the increasingly diverse needs of parking lot management in Japan, the Parking Systems
has been working on improving theefficiency and reducing the cost of
parking lot management, increasing
the level of convenience for parking lot users, ensuring safety andsecurity in parking lots, making reservations and payments through the
integration with the internet, and establishing non-contact ticketless and/or cashless systems.
In response to these market conditions, we further strengthened ourcooperation with major parking lot
management firms and, at the sametime, concentrated on offering various services to small to mediumsized parking lot management firms
through our parking lot data centers.
We have also worked to improve
the functionality and usability of oursystem equipment by strengthening
proposals for our vehicle numberbased ticketless system and madeefforts to expand into the markets,
such as bicycle par king systems,
security-gate systems, and toll roadsystems, as well as strengthening
proposals for improving parking lot
management efficiency and making
new proposals for enhancing parking lot services to users.
Domestic sales for the current term
were as follows. For Amano, on an
unconsolidated basis, domestic parking equipment sales decreased by¥419 million (3.0%) mainly due tothe decrease in projects for management firms although orders received
are recovering, while sales generated by maintenance contracts andsupplies services increased by ¥177
million (2.1%). Sales increased in theconsigned parking lot management
service business operated by Amano Management Service because it
is on a recovery trend. As a result of
the continued investment by them,
the number of parking spaces undermanagement increased by 25,000(4.9%) from the end of the previous
fiscal year.
Overall overseas sales increased by¥1,725 million (8.4%) due to thedecrease in the sales of Amano McGann, Inc. in North America and theincrease in sales of the consigned
parking lot management ser vicebusiness in Korea and Hong Kong in
Asia.

Environment System business• Environmental Systems:
Standard dust collectors, mist collectors, large dust collectors, pneumaticconveyors, deodorizing equipment,
and industrial air purifiers• Clean Systems:
Industrial vacuum cleaners, automatic floor scrubbers, robotic
floor scrubbers, wooden floor
sanding machines, consigned janitorial management services, andelectrolyzed water generators
The sales in this business totaled¥31,339 million, up by ¥2,331 million (up 8.0%) year-on-year. The following is a breakdown of sales bybusiness division.

parts, and automobiles, which continue to invest in the developmentof next-generation automobiles,
while seeking to win additional orders from customers in the pharmaceutical, foods, and cosmetics markets, whose demand was relatively
stable. Meanwhile, we enhanced
cooper ation with our over seas
Group companies, and reinforced
their platforms for engineering, sales
and services. Furthermore, we endeavored to achieve greater costcompetitiveness by expanding theirlocal procurement, while observing
the investment trend of Japanesecompanies operating overseas.
During the current term for Amano,
on an unconsolidated basis, domestic sales of standard equipment
increased by ¥942 million (15.0%)
with the recovery of machine tool
orders market, sales of large dust
collectors decreased by ¥653 million (11.7%) with the decreaseof orders and sales generated bymaintenance contracts and supplies
services increased by ¥330 million(8.8%) year-on-year.
Overall overseas sales increased by¥745 million (26.8%) as sales in Asia
increased, suppor ted by the economic recovery in China.

Clean Systems¥11,361 million (up 9.8% year-on-year)

Although this business was facing
stagnating demand for capital investment, the situation seems improving
with the Chinese economic recovery.

In the Clean System, while the trendof companies tr ying to reducecleaning costs continued domestically amid a shor tage of sanitar yworkers in the building maintenanceindustry as well as an expansion ofdemand for cleanliness under the
COVID-19 pandemic, need for further proposals that lead to higher
cleaning efficiency and improved
quality have been increasing.

In this market environment, our domestic strategy focused on capitalizing the demand for our standard
equipment by strengthening proposals, mainly targeting companies
related to machine tools, electronic

In response to these market conditions, we proposed the automationof cleaning work using automatic
floor scrubbers "EGrobo" and promoted robotic floor scrubbers "EGseries" which feature improved

Environmental Systems¥19,977 million (up 7.0% year-on-year)

8

safety and usability, as well as proposed improving public health management by using electrolyzed water
generators.
During the current term for Amano,
on an unconsolidated basis, overall
domestic sales of cleaning equipment increased by ¥19 million(1.0%) led by the increase in thesales of automatic floor scrubbers,
and domestic sales generated bymaintenance contracts and supplies
services decreased by ¥72 million(3.2%) year-on-year.
Overall overseas sales increased by¥1,121 million (21.1%) as Amano Pioneer Eclipse Corporation in NorthAmer ica achieved the increasein sales by increasing the sales ofwooden floor sanding machines.

General Financial Condition
for This Fiscal Year(i) Assets, liabilities, and net assets
Total assets amounted to ¥159,342
million (up ¥8,783 million from theprevious consolidated fiscal yearend).
• Current assets: an increase of¥6,936 million due to an increasein cash and bank deposits and raw
materials and supplies, etc.
• Fixed assets: an increase of ¥1,846
million due to an increase ininvestment securities and leaseassets, etc.
Total liabilities amounted to ¥43,071
million (up ¥4,097 million from theprevious consolidated fiscal yearend).
• Current liabilities: an increase of¥4,015 million due to an increasein accrued income taxes, etc.
• Long-term liabilities: an increase of¥81 million due to an increase inlease obligations, etc.
Net assets amounted to ¥116,271
million (up ¥4,686 million from theprevious consolidated fiscal year-end).
• Shareholders' equity: an increaseof ¥2,392 million due to posting of net income attributable toowners of the parent company,etc.
• Accumulated other comprehensive income: an increase of ¥2,274
million due to increases in foreign
currency translation adjustments,
etc.

Summary of Cash Flows forThis Fiscal Year
Consolidated cash and cash equivalents increased by ¥3,385 million
from the previous fiscal year-end
to a total of ¥55,931 million as ofMarch 31, 2022. The status of eachtype of cash flow at year-end andthe underlying factors are as follows.
Net cash provided by operating activities totaled ¥19,200 million (anincrease in income of ¥3,604 million
year-on-year).
• Main income factors:
Posting of income before income
taxes amounting to ¥14,253 million and posting of depreciation
and amortization amounting to¥8,070 million.
• Main expenditure factors:
Posting of income taxes paid
amounting to ¥2,938 million.
Net cash used in investing activities
totaled −¥5,891 million (a decreasein cash outflow of ¥463 million yearon-year).
• Main income factors:
Posting of proceeds from withdrawal of time deposits amounting to ¥2,428 million.
• Main expenditure factors:
Posting of increase in time deposits amounting to ¥2,962 million
and posting of payment for acquisition of investment securities
amounting to ¥2,110 million.
Posting of payment for purchaseof tangible fixed assets amounting
to ¥1,951 million and posting of
payment for acquisition of intangible fixed assets amounting to¥1,597 million.
Net cash used in financing activities
amounted to −¥10,870 million (anincrease in cash outflow of ¥2,235
million year-on-year).
• Main income factors:
Posting of proceeds from sale andleaseback amounting to ¥1,312
million.
• Main expenditure factors:
Posting of dividends paid amounting to ¥5,234 million and postingof repayments of lease obligations
amounting to ¥4,606 million.
Posting of payment for acquisitionof treasury stock amounting to¥2,154 million.

Future Outlook
In the next fiscal year ending March
31, 2023, the effect of COVID-19
continues, but the world economy
shows some signs of recovery triggered by the continuous recovery
in the Chinese economy and theresumption of economic activities assosiated with the COVID-19
vaccination proceeding forward invarious countries, etc. However, it
seems that the future outlook for
the Japanese economy continues
to be uncertain due to the global
shor tage of mater ials including
semiconductors caused by the supply chain disruptions, the continuation of various social and economic
restrictions to cope with the worldwide resurgence of COVID-19, andsuccessive price hikes against the
backdrop of the tensions in RussiaUkraine, etc.
Amid this business environment,
Amano and our group companies
have set "The 3rd Stage Towards a
100-year Company-Establishing asolid business foundation that leads
to sustainable growth "as our man9

agement concept and work to address key issues in the 8th Mediumterm Business Plan described in"Business Policies" on page 1 with aview to maximizing the corporate
value of Amano.
For the next fiscal year ending
March 31, 2023, we forecast net
sales at ¥130,000 million, operating profit at ¥16,500 million, ordinary profit at ¥17,200 million andnet income attributable to parent
company shareholders at ¥11,500
million. For details, please refer to[2] Numerical targets indicated on
page 4, in " Business Policies." Furthermore, this forecast assumes thecurrency exchange rates of ¥120 to
the US dollar and ¥130 to the euro.
Although we have reflected the effects of COVID-19 in our full-year
forecast above as much as possible,
we intend to disclose them appropriately according to the futurechanges in the situation.

Operating and Other Risk Factors
Matters relating to the qualitative
infor mation contained in thesesummary financial statements andrelating to the consolidated financial
statements that could be envisaged
as having a possible material impact
on investors are described below.
Every effort, including the establishment of various internal committees
such as Compliance Committee
and Risk Management Committee,
are made to identify factors that
may now or in the future pose arisk to the undertaking of businessby the Amano Group, and theserisk factors are then eliminated orotherwise managed in the course ofbusiness. The activities of each committee are reported to the Representative Director as appropriate
and to the Board of Directors asnecessary. The outline of each committee is available for inspection on
the website of our company.
(https://www.amano.co.jp/English/corp/governance.html)
Forward-looking statements are
current as of the date of releaseof these financial results (April 26,2022).
(i) Impact on earnings due to changes in the business environment
The Amano Group uses the unique
technologies and know-how wehave accumulated to provide customers with high-quality products,
ser vices and solutions, thereby
gaining large market shares in eachsphere of business in Japan, North
America, Europe, and Asia, and developing our business globally.
In the year ended March 31, 2022,
the Time Information System business accounted for 73.5% of total
sales, and the Environment Systembusiness accounted for 26.5%. Before the deduction of unallocatedexpenses, the Time Information System business contributed 75.2% tooperating profit, while the Environment System business contributed
24.8%. In terms of weighted averagesales over the last five years, theTime Information System businessaccounted for 74.0% of total sales
and 73.1% of operating profit.
One future risk factor is that if market expansion is forecasted for abusiness activity within the Time Information System business segment(which accounts for a large proportion of the Group's business), forsuch reasons as a significant change
in the demand str ucture or thecreation of a new market, entities
in other industries or other powerful competitors may be tempted toenter the market. In such an event,if a competitor were to enter with
innovative products or solutions
that surpass Amano's, the Amano
Group's market advantage would
decline, which may have a material
impact on our business performance.
As part of our efforts to prepare forthese risks, the Amano Group works
to develop competitive products

on an ongoing basis and strives tostrengthen support systems further,engaging in business activities tomaintain and improve our competitive advantage in each business bystrengthening the relationship withexisting customers and expandingtransactions with new customers.
(ii) Fluctuations in exchange rates
Our group engages in businessactivities on a global scale and has
production and sales bases overseas.
In view of this, our group's businessresults may be impacted by fluctuations in exchange rates when theproceeds for overseas transactions
are converted into yen.
As precautionary measures against
such a risk, our group strives to reduce it by considering entering into,
for example, forward exchange contracts as necessary.
(iii) Information security
In the course of providing systemsolutions and developing cloud business ser vices (e.g., ASP, SaaS, andhosting services), the Amano Grouphandles confidential information,such as personal information concerning, or provided by, customers.
The occurrence of an unforeseen
situation such as a cyberattack that
results in loss or leakage of confidential or personal information
as described above could have an
adver se material impact on ourgroup's business performance due
to factors such as loss of confidence.
As precautionary measures against
such a risk, our group has establishedan Information Security Management Committee to strengthen andensure thorough implementation of
security control measures based onthe "Information Security Management Rules." More specifically, we
have implemented measures to prevent the leakage of confidential information based on the encryptionof hard disks and external storage
media and are providing regular employee education using e-learning.

10

Our company received the PrivacyMark certification in February 2014
and makes every effort in the areaof information security, including thesupervision of subcontractors andthorough compliance with internal
regulations. European subsidiaries ofour company are also working to
reduce risk by, for example, implementing adequate measures regarding the EU General Data Protection
Regulation (GDPR) enacted in May
2018, taking into consideration theguidance of local experts.
(iv) Natural disasters and infectious
diseasesNatural disasters, such as large-scale
earthquakes and windstorms, floods,
etc., caused by climate change on a
global scale, are occurring more andmore frequently, and in the eventof a natural disaster, our group may
sustain damage to human lives or
our property, such as the destruction of sales business sites andproduction bases. In the event ofan outbreak of an infectious disease
that makes it difficult for employees to continue to work, our group
may temporarily lose the ability tocontinue to perform our operating
activities.
As precautionary measures against
such risks, our group has put inplace measures to ascer tain andensure the safety of employees byintroducing an emergency contact
network and safety confirmation
systems. In addition, our group ismoving our file servers and otherequipment to external data centers
and is improving the environment
to facilitate working from home toensure business continuity. Other
necessary measures that we havetaken to reduce risk include the establishment of the protocol for theestablishment of the disaster control headquarter in the event of an
emergency.
(v) Overseas business development
Our group has been developing ourbusiness globally in Japan, Nor thAmerica, Europe, and Asia. Therefore, there is a possibility that a situation may arise in which business
operations are disrupted due tothe application of unique laws, ordinances, or regulations or social disorder due to political disturbances,war, or terrorism, or pandemic, etc.
in countries or regions where ourgroup conducts business, which may
adversely impact our group's business performance.

(vi) Accounting estimate assumptionchangeOur group makes estimates regarding impairment accounting for
fixed assets and deferred tax assets
recoverability at the time of preparing the consolidated financial statements. These estimates are basedon cer tain assumptions about the
future. If the assumptions differ significantly due to the occurrence of
unexpected events such as natural
disasters that may have a significant
impact on domestic and overseas
economic activities and an outbreakof an infectious disease, it may affectour business performance.

In order to be ready for these risks,
our group collects information on
the situation in the countries andregions in which they operates on
an ongoing basis before any emergency occurs. Our group also holds
quar terly meetings of the Global
Str ategy Conference Executive
Management Board, at which top
management directly ascertains thesituation and gives instructions to
reduce risk. In the event that various
risks are materialized, our group will
grasp the situation quickly by sharing and exchanging information withoverseas group companies.

In order to be ready for these risks,
our group strives to calculate a reasonable amount based on available
information at the time of accounting estimation.

Reference: Trend of cash flow indicators
As of Mar. 31, 2018

As of Mar. 31, 2019

As of Mar. 31, 2020

As of Mar. 31, 2021

As of Mar. 31, 2022

Equity ratio (%)

72.3

71.8

70.5

73.6

72.5

Fair value equity ratio (%)

150.1

132.5

116.1

134.0

102.4

Ratio of cash flow to interest-bearing liabilities (%)

11.2

14.0

27.1

43.5

38.1

Interest coverage ratio

483.5

539.4

227.9

101.9

139.1

Notes :	Equity ratio: Equity capital/Total assets
		Fair value equity ratio: Gross market capitalization/Total assets
		Ratio of cash flow to interest-bearing liabilities: Interest-bearing liabilities/Cash flow from operating activities
		Interest coverage ratio: Cash flow from operating activities/Interest payments
Assumptions
		* All indicators are calculated on the basis of consolidated financial values.
		* Gross market capitalization is calculated by multiplying the closing price of the Company's shares at the year-end by the number of shares of common stock issued and outstanding at the year-end (less treasury stock).
		* The term "cash flow from operating activities" refers to cash flow from operating activities posted under the consolidated statements of cash flows. The term "interest-bearing liabilities" refers to those liabilities stated in the consolidated balance sheets on
which interest is paid. Interest payments equate with the interest paid recorded in the consolidated statements of cash flows

11

AMANO Corporation and Subsidiaries

Financial Highlights
For the year ended March 31, 2022
Yen in millions and U.S. dollars in thousands, except per share amounts- See Note 4 to the Consolidated Financial Statements.
Thousands of U.S.dollars(Note 4)

Millions of Yen

2022

2021

2022

Net sales...................................................................

¥118,429¥113,598$970,733

Net income................................................................

9,733

7,248

79,787

Net income per share (Basic)......................................

¥131.49¥97.08$1.078Cash dividends per common share..............................

95.00

65.00

0.779

Total assets...............................................................

¥159,342¥150,559$1,306,090

Working capital.........................................................

70,711

67,790579,606

Total net assets..........................................................

116,271

111,585

953,048

Information Systems..................................................

¥28,808¥27,878$236,135

Time Management Products ......................................

2,700

2,856

22,131

Parking Systems ........................................................

55,58153,854455,587

Environmental Systems .............................................

19,977

18,664

163,753

Clean Systems ..........................................................

11,361

10,343

93,127For the years ended March 31:

Per share data (Yen and U.S. Dollars):

At March 31:

Sales by product:

Note: U.S. dollar amounts have been translated at the rate of ¥122= US $1, the rate prevailing on March 31, 2022.
- See Note 4 to the Consolidated Financial Statements.

Net Sales

Net Income

Net Income Per Share(Millions of Yen)

(Millions of Yen)

(Yen)

140,000

12,000160.00120,000

140.0010,000120.00100,000
8,000

100.0080,000
6,000

80.00

60,000

40.00
2,000

20,000
0

60.00

4,000

40,000

'18

'19

'20

'21

'22

0

20.00

'18

'19

'20

12

'21

'22

0.00

'18

'19

'20

'21

'22

AMANO Corporation and Subsidiaries

Consolidated Balance Sheet
As at March 31, 2022
Thousands of U.S.dollars(Note 4)

Millions of Yen

ASSETS

2022

2021

2022

Current assets:
Cash and bank deposits (Notes 6, 18 and 20) .............
Notes and accounts receivable (Notes 20) ..................
Notes, accounts receivable and contract assets (Notes 7 and 20) ....
Marketable securities (Notes 18 and 20)......................
Merchandise and finished goods ................................
Work in process ........................................................
Raw materials and supplies .......................................
Other current assets ..................................................
Less allowance for doubtful accounts .........................
Total current assets ...............................................

¥60,337–
27,995
3,219
3,687
559
5,741
4,464
(468)
105,537¥56,432
27,175
–
2,556
3,883
540
4,429
3,981
(399)
98,600$494,574–
229,474
26,38730,222
4,583
47,06336,595(3,837)865,059

Non-Current assets:
Tangible fixed assets:
Buildings and structures ............................................
Less accumulated depreciation ..............................
Buildings and structures (net) ...............................
Machinery, equipment and vehicles ...........................
Less accumulated depreciation ..............................
Machinery, equipment and vehicles (net) ..............
Tool, furniture and fixtures ........................................
Less accumulated depreciation ..............................
Tool, furniture and fixtures (net) ...........................
Land ........................................................................
Leased assets (Note 19) .............................................
Less accumulated depreciation ..............................
Leased assets (net) ...............................................
Construction in progress ............................................
Total tangible fixed assets .....................................

28,591(19,697)
8,894
7,355
(6,629)725
15,755(13,717)
2,038
5,818
15,041(7,035)
8,005
298
25,78029,029(19,451)
9,578
7,241
(6,343)898
15,712(13,413)
2,298
5,896
12,639(5,956)
6,683
237
25,592

234,357(161,453)
72,90460,288(54,341)
5,947
129,147(112,438)
16,70947,689123,287(57,668)
65,6202,445
211,313

Intangible fixed assets:
Goodwill ...................................................................
Software ...................................................................
Software in progress ..................................................
Other intangible fixed assets ......................................
Total intangible fixed assets ..................................

1,417
2,980
1,110
1,740
7,249

1,612
3,760
922
1,811
8,107

11,61824,4309,101
14,27059,418Investments and other assets:
Investments in securities (Notes 5 and 20) .....................
Claims Provable in Rehabilitation from Bankruptcy ....
Leasehold and guarantee deposits ..............................
Retirement benefit assets ...........................................
Deferred tax assets (Note 22) .....................................
Other assets .............................................................
Less allowance for doubtful accounts .........................
Total investments and other assets ........................
Total non-current assets ........................................
Total assets............................................................................

14,694
522
1,547
128
2,505
1,911
(533)
20,77653,805¥159,342

12,250
576
1,724
122
2,403
1,770
(589)
18,25951,959¥150,559

120,443
4,283
12,685
1,052
20,536
15,670(4,371)
170,299
441,030$1,306,090

13Thousands of U.S.dollars(Note 4)

Millions of Yen

LIABILITIES AND NET ASSETS

2022

2021

2022

Current liabilities:
Trade notes and accounts payable (Note 20) ..............
Electronically recorded monetary claims (Note 20) .....
Short-term bank loans ...............................................
Lease obligations (Notes 19 and 20) ...........................
Accrued income taxes ...............................................
Accrued bonuses for employees .................................
Accrued bonuses for directors ....................................
Other current liabilities ..............................................
Total current liabilities ..........................................

¥5,605
5,667
367
3,610
3,426
2,569
128
13,45034,825¥5,371
5,073
520
2,843
1,445
2,379
90
13,08630,809$45,947
46,453
3,012
29,59328,08921,063
1,049
110,248
285,453

Long-term liabilities:
Lease obligations (Notes 19 and 20) ...........................
Liability for retirement benefits (Note 21) .........................
Deferred tax liabilities (Note 22) ................................
Provision for stock benefit .........................................
Provision for directors’ stock benefit ..........................
Asset retirement obligations ......................................
Other long-term liabilities ..........................................
Total long-term liabilities ......................................
Total liabilities ......................................................

4,994
2,377
12
293
203
33
331
8,245
43,071

4,856
2,308
128
245
186
33
405
8,164
38,97440,93919,485
103
2,402
1,666
278
2,715
67,589353,042

18,23919,29386,244(6,546)117,230

18,23919,29381,749(4,443)
114,838

149,505
158,140
706,921(53,658)
960,9082,088(3,250)(549)(1,711)

1,875(5,242)(620)(3,986)

17,120(26,641)(4,507)(14,028)

Non-controlling interests in consolidated subsidiaries .....

752

733

6,168

Total net assets......................................................
Total liabilities and net assets ...............................................

116,271¥159,342

111,585¥150,559

953,048$1,306,090

Net assets (Notes 16 and 17):
Shareholders' equity:
Common stock .....................................................
Capital surplus .....................................................
Retained earnings .................................................
Treasury stock ......................................................

Accumulated other comprehensive income:Net unrealized gains (losses) on other securities .....
Foreign currency translation adjustments ...............
Retirement benefits liability adjustments ................

The accompanying notes are an integral part of these statements.

14

AMANO Corporation and Subsidiaries

Consolidated Statement of Income, andConsolidated Statement of Comprehensive Income
For the year ended March 31, 2022

Consolidated Statement of Income
Thousands of U.S.dollars(Note 4)

Millions of Yen

Net sales
Cost of sales (Note 10) .........................................................
Gross profit ..........................................................
Selling, general and administrative expenses (Notes 9 and 10) .......
Operating income .................................................
Other income ( expenses ):Interest and dividend income .....................................
Interest expense ........................................................
Equity in earnings of affiliates ....................................
Foreign exchange gain (loss) .....................................
Gain on sale of fixed assets (Note 11) ........................
Loss on disposal of fixed assets (Note 12) ..................
Loss on sale of fixed assets (Note 13) .........................
Impairment loss on fixed assets (Note 14)...................
Other, net .................................................................
Income before income taxes and non-controlling interests ........
Income taxes (Note 22):
Current .....................................................................
Deferred ...................................................................
Income before non-controlling interests .................
Non-controlling interests in net income of consolidated subsidiaries ....
Net income............................................................

2022

2021

2022

¥118,429
64,87653,55240,65912,893¥113,598
63,761
49,83739,9029,934$970,733
531,777
438,957
333,275
105,682

411
(138)
228
108
412
(49)
(5)
–
392
14,253

415
(153)
250
(13)
21
(45)
–
(1,121)
499
9,788

3,375
(1,131)
1,869
885
3,380
(402)
(44)
–
3,216
116,830

4,745
(271)
9,778
(45)
¥9,733

2,366
117
7,305
(56)
¥7,24838,896(2,222)80,155(369)$79,787

Consolidated Statement of Comprehensive Income
Thousands of U.S.dollars(Note 4)

Millions of Yen

Income before non-controlling interests ................................

2022

2021

2022

¥9,778¥7,305$80,155

Other comprehensive income (loss) (Note 15):
Net unrealized gains (losses) on other securities .........
Translation adjustments ............................................
Retirement benefits liability adjustments ....................
Share of other comprehensive income (loss) of companies
accounted for by the equity method .............................
Total other comprehensive income (loss) .................
Comprehensive income ........................................................

212
1,990
70

851
(504)
440

1,745
16,313578

0
2,273¥12,052

0788¥8,093

1
18,637$98,792

Total comprehensive income attributable to:Shareholders of the Company ....................................
Non-controlling interests ...........................................

¥12,008¥43¥8,078¥14$98,434$358

The accompanying notes are an integral part of these statements.

15

AMANO Corporation and Subsidiaries

Consolidated Statement of Changes in Net Assets
For the year ended March 31, 2022
Millions of Yen
Shareholders’ equity
Total shareholders’equity(¥4,443)¥114,838(4)(4,443)
114,833

Common stock

Capital surplus

Retained earnings

Balance at April 1, 2021
Cumulative effect of change in accounting principle
Restated balance at April 1, 2021
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year

¥18,239¥19,293

18,23919,293¥81,749(4)
81,744

–

–

4,499

(2,102)

2,397

Balance at March 31, 2022

¥18,239¥19,293¥86,244(¥6,546)¥117,230

Balance at April 1, 2021
Cumulative effect of change in accounting principle
Restated balance at April 1, 2021
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2022

Treasury stock(5,234)
9,733(2,154)52(5,234)
9,733(2,154)52

Accumulated other comprehensive income
Non-controllinginterests in
Net unrealized Foreign currency
Retirement
Total accumulated
gains (losses) on
translation
benefits liability other comprehensive consolidated
subsidiaries
other securities
adjustments
adjustments
income (loss)¥1,875(¥5,242)(¥620)(¥3,986)
¥733
1,875

(5,242)(620)(3,986)733¥111,585(4)
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

Common stockThousands of U.S. dollars (Note 4)
Shareholders’ equity
Capital surplus Retained earnings Treasury stock Total shareholders’equity$158,140$670,075($36,425)$941,296(36)(36)
158,140
670,039(36,425)
941,260

Balance at April 1, 2021
Cumulative effect of change in accounting principle
Restated balance at April 1, 2021
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year

$149,505––

36,881(17,233)

19,648

Balance at March 31, 2022

$149,505$158,140$706,921($53,658)$960,908

Balance at April 1, 2021
Cumulative effect of change in accounting principle
Restated balance at April 1, 2021
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2022

Total net assets

149,505(42,905)(42,905)

79,787(17,663)
429

79,787(17,663)
429

Accumulated other comprehensive income
Non-controllinginterests in
Net unrealized Foreign currency
Retirement
Total accumulated
gains (losses) on
translation
benefits liability other comprehensive consolidated
subsidiaries
other securities
adjustments
adjustments
income (loss)$15,377($42,967)($5,085)($32,676)$6,015
15,377(42,967)(5,085)(32,676)

6,015

Total net assets$914,635(36)
914,599(42,905)

1,744
1,744

16,326
16,326578
578

18,647
18,647

153
153

79,787(17,663)429
18,80038,448$17,120($26,641)($4,507)($14,028)$6,168$953,048

16

Millions of Yen
Shareholders’ equity(4,224)

Total shareholders’equity¥113,5120113,512(246)
26(5,703)
7,248
(246)
26

Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at April 1, 2020
Cumulative effect of change in accounting principle
Restated balance at April 1, 2020
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year

¥18,239¥19,293(¥4,224)

18,23919,293¥80,204
080,204

–

–

1,544

(219)

1,325

Balance at March 31, 2021

¥18,239¥19,293¥81,749(¥4,443)¥114,838

Balance at April 1, 2020
Cumulative effect of change in accounting principle
Restated balance at April 1, 2020
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2021

(5,703)
7,248

Accumulated other comprehensive income
Non-controllinginterests in
Net unrealized Foreign currency
Retirement
Total accumulated
consolidated
gains (losses) on
translation
benefits liability other comprehensubsidiaries
other securities
adjustments
adjustments
sive income (loss)¥1,025(¥4,781)(¥1,061)(¥4,817)
¥783
1,025

(4,781)(1,061)(4,817)Total
net assets

783¥109,4780109,478

850
850

(460)
(460)

440
440

830
830

(49)
(49)

(5,703)
7,248
(246)
26
781
2,106

¥1,875(¥5,242)(¥620)(¥3,986)¥733¥111,585

The accompanying notes are an integral part of these statements.

17

AMANO Corporation and Subsidiaries

Consolidated Statement of Cash Flows
For the year ended March 31, 2022
Millions of Yen

Cash Flows from Operating Activities:
Income before income taxes and non-controlling interests .....
Depreciation and amortization ......................................
Amortization of goodwill ..............................................
Impairment loss on fixed assets ......................................
Increase (decrease) in liability for retirement benefits ...........
Increase (decrease) in allowance for doubtful accounts ........
Interest and dividend income .......................................
Equity in earnings of affiliates .....................................
Interest expenses ...........................................................
Foreign currency translation (gain) loss .......................
(Gain) loss on sale of fixed assets .................................
Loss on disposal of fixed assets ....................................
(Increase) decrease in trade notes and accounts receivable .........
(Increase) decrease in trade notes, accounts receivable and contract assets .....
(Increase) decrease in inventories ................................
Increase (decrease) in trade notes and accounts payable .......
Others ...........................................................................
Subtotal .........................................................................
Interest and dividends received ....................................
Interest paid ..................................................................
Payment for extra retirement payments ........................
Income taxes paid .........................................................
Income taxes refunded ..................................................
Net cash provided by operating activities ................
Cash Flows from Investing Activities:
Payment for purchase of marketable securities ............
Proceeds from redemption of marketable securities .....
Payment for purchase of property, plant and equipment .......
Proceeds from sale of property, plant and equipment ............
Payment for acquisition of intangible assets .................
Payment for acquisition of investments in securities ....
Proceeds from sale of investments in securities ............
Increase in time deposits ..............................................
Decrease in time deposits .............................................
Payment for business acquisition .................................
Others ...........................................................................
Net cash used in investing activities ........................
Cash Flows from Financing Activities:
Proceeds from short-term bank loans ...........................
Repayment of short-term bank loans ............................
Payment for acquisition of treasury stock .....................
Repayments of finance lease obligations ......................
Proceeds from sale and leaseback .................................
Dividends paid ..............................................................
Dividends paid to minority interests .............................
Net cash used in financing activities ........................
Effect of exchange rate changes on cash and cash equivalents ......
Net increase (decrease) in cash and cash equivalents ..............
Cash and cash equivalents at beginning of year .......................
Cash and cash equivalents at end of year (Note 18) .................
The accompanying notes are an integral part of these statements.

18

Thousands of U.S.dollars(Note 4)

2022

2021

2022

¥14,253
8,070
351
–
148
(28)
(411)
(228)
138
(114)
(406)
49
–
(274)
(645)
672
66
21,641524(137)–(2,938)111
19,200¥9,788
8,398
358
1,121
207
7
(415)
(250)
153
(46)
(21)
45
4,065
–
646
(2,572)(1,265)
20,219
475
(153)
(11)
(5,800)865
15,596$116,830
66,154
2,880
–
1,221
(236)
(3,375)(1,869)1,131(939)(3,335)402–(2,248)(5,289)5,511
548
177,386
4,296(1,131)–(24,087)918
157,381(3,850)3,450(1,951)771(1,597)(2,110)–(2,962)
2,428
(200)
129
(5,891)(3,350)2,500(2,395)44(1,686)(2,038)3(3,994)
4,649
–
(86)
(6,355)(31,557)
28,279(15,995)
6,326(13,091)(17,302)–(24,285)
19,907(1,639)1,065(48,293)358(519)(2,154)(4,606)
1,312(5,234)(25)(10,870)
947
3,385
52,546¥55,931

489
(641)
(246)
(3,718)
1,249(5,703)(63)(8,634)(194)
411
52,134¥52,546

2,939(4,261)(17,663)(37,759)
10,754(42,905)(205)(89,100)
7,764
27,752
430,706$458,457

AMANO Corporation and Subsidiaries

Notes to the Consolidated Financial Statements
1. 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 andExchange Act and its related accounting
regulations in Japan. The accounts of
the Company and domestic subsidiaries included in the consolidation are
based on the accounting records maintained in accordance with accounting
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 ExchangeAct, amounts of less than one million
yen have been rounded off. As a result,
the totals shown in the accompanying
consolidated financial statements (bothin 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.

2. Principles of Consolidation(1) Scope of Consolidation
The Company had 28 consolidated
subsidiaries at March 31, 2022. The
accompanying consolidated financial
statements include the accounts of theCompany and those of its subsidiaries
that are controlled by the Company.
Under the control concept, major subsidiaries in which the Company is able
to exercise control over operations areto be fully consolidated.
The accounts of the overseas consolidated subsidiaries are consolidated us-

ing their financial statements as of theirrespective fiscal year end, which falls
on December 31, 2021 and necessary
adjustments are made to their financial
statements to reflect any significant
transactions from January 1 to March
31, 2022. All significant intercompany
balances and transactions have been
eliminated in consolidation.

which can easily be converted to cash
and are subject to little risk of change invalue.

(2) Accounting for Investments in
Unconsolidated Subsidiaries
and Affiliates(3) Property, Plant andEquipment- Amano Software Engineering(Shanghai) Co. Ltd.
- Mobile Parking Ltd.
- Amano Parking Europe, N.V.
None of the 3 unconsolidated subsidiaries are accounted for by the equity
method, because the effect of their net
income or losses and retained earnings
on the accompanying consolidated financial statements is immaterial. The
affiliates accounted for by the equity
method are listed below:- Creo Co., Ltd.
Names of major affiliated companies
that do not apply the equity method arelisted below:- Preferred Robotics Inc.
Preferred Robotics Inc. has been excluded from the scope of equity method
because their net income or loss (ascalculated by the equity method) andretained earnings (as calculated by theequity method) have a minimal effecton the consolidated financial statements
and they are not significant as a whole.

3. Summary of Significant
Accounting Policies(2) Inventories
Inventories are stated at cost (writedown
due to reduced profitability). Cost is determined principally using the periodic
average method..

Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the
declining balance method, based on theestimated useful lives, except for buildings acquired on or after April 1, 1998
and for facilities attached to buildings
and structures acquired on or after April
1, 2016, which are computed on thestraight-line method. The ranges of theuseful lives of assets are:
Buildings and structures
5-50 years
Machinery and vehicles
7-17 years
Normal repairs and maintenance,
including minor renewals and improvements, are charged to income as incurred.

(4) Intangible Assets
Intangible assets are amortized using
the straight-line method. Software costs
for internal use are amortized by thestraight-line method over their expected
useful lives (five years). Software developed for external sale is amortizedover the estimated sales period, 3 years.
Goodwill is amortized over the estimated useful life, or where the amountof goodwill is immaterial, is charged toincome in the year of acquisition.

(1) Cash and Cash Equivalents(5) Leased Assets

Cash and cash equivalents consist of
cash on hand, cash in banks which can
be withdrawn at any time and shortterm investments with a maturity of
three months or less when purchased

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

19subsidiaries which prepare the financial
statements based on IFRS, in principle,
lessees recognize all leases on the balance sheet as assets and liabilities, anddepreciation of capitalized leased assets is computed based on straight-line
method.

(6) Accounting for Financial
Instruments(a) Derivatives
All derivatives are stated at their fairvalues, with changes in fair value included in net profit or loss for the period in which they arise.
(b) Securities
Securities held by the Company and its
subsidiaries are classified into four categories;
Trading securities, which are held forthe purpose of generating profits on
short-term differences in prices, arestated at their fair values, with changes
in fair values included in net profit orloss for the period in which they arise.
Additionally, securities held in trusts for
trading purposes are accounted for in
the same manner as trading securities.
Held-to-maturity debt securities, that
the Company and its subsidiaries haveintent to hold to maturity, are stated attheir costs after accounting for any premium or discount on acquisition, which
are amortized over the period to maturity.
Investments of the Company in equity
securities issued by unconsolidated
subsidiaries and affiliates are accounted
for by the equity method. Exceptionally,
investments in certain unconsolidated
subsidiaries and affiliates are stated atcost because the effect of application of
the equity method would be immaterial.
Other securities for which market quotations are available are stated at fairvalue. Net unrealized gains or losses onthese securities are reported as a separate item in the net assets section at a

net-of-tax amount. Other securities forwhich market quotations are unavailable are stated at cost, except as statedin the paragraph below.
In cases where the fair value of held-tomaturity debt securities, equity securities issued by unconsolidated subsidiaries and affiliates, or other securities had
declined significantly and such impairment of the value is not deemed temporary, those securities are written down
to the fair value and the resulting losses
are included in net profit or loss for theperiod.

(7) Foreign Currency Translation
Foreign currency transactions aretranslated using foreign exchange rates
prevailing at the respective transaction dates. Receivables and payables inforeign currencies are translated at theforeign exchange rates prevailing at therespective balance sheet dates and theresulting transaction gains or losses areincluded in net profit or loss for the period.

(8) Translation of Foreign
Currency Financial
Statements (Accounts ofOverseas Subsidiaries)
Foreign currency denominated statements of overseas consolidated subsidiaries have been translated into Japanese yen using the method prescribedby the Business Accounting Deliberation
Council of Japan.
All the balance sheet accounts of foreignsubsidiaries and affiliates are translated
at the foreign exchange rates prevailingat the respective balance sheet dates except for common stock and capital surplus. On the other hand, all the profit
and loss accounts are translated at the
average foreign exchange rates for therespective periods. Differences arisingfrom translation are presented as "Foreign currency translation adjustments"

20and "Non-controlling interests in consolidated subsidiaries" in the accompanying consolidated financial statements.

(9) Income Taxes
The Company recognizes the tax effectof temporary differences between the
carrying amounts and the tax basis ofassets and liabilities. The provision forincome taxes is computed based on thepretax income statement of income. The
asset and liability approach is used torecognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences.

(10) A llowance for Doubtful
Accounts
In general, the Company and its subsidiaries provide the allowance based on
the past receivables loss experience fora certain reference period. Furthermore,
for receivables from companies withfinancial difficulty, which could affectthe debtors' ability to perform their obligations, the allowance is provided for
estimated unrecoverable amounts individually.

(11) Retirement Benefits
The Company and some of its subsidiaries recognize accrued pension andseverance costs to employees based on
the actuarial valuation of projected benefit obligation and plan assets at theirvalue. The retirement benefit obligation for employees is attributed to eachperiod by the benefit formula method.
Prior service costs are amortized basedon the straight-line method over a period years(7-10years). Actuarial gains
and losses are amortized based on thestraight-line method over a period years(7-10years) starting from the beginningof the subsequent year.

(12) A ccrued Employees'
Bonuses
Accrued employees' bonuses at thebalance sheet date are based on an
estimate of the amounts to be paid asbonuses for services rendered by employees by that date.

(13) Accrued Directors' 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
by that date.

(14) Provision for stock benefit
In order to prepare for the payment ofcompany 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 thecurrent consolidated fiscal year.

(15) Provision for directors’ stock
benefit
In order to prepare for the paymentof the Company stocks to officers anddirectors under the share payment program, provision for stock benefit is recorded based on the estimated amountof stock benefit obligation corresponding to the merit points allocated to theofficers and directors in the current consolidated fiscal year.

(16) Research and Development
Expenses
Research and development expenses arecharged to income as incurred.

(17) Net Income and Dividends
per Share
Basic net income per share is computed based on the net income and theweighted average number of shares ofcommon stock outstanding during eachperiod. Diluted net income per shareis computed based on the net income
available for distribution to the shareholders and the weighted-average num-bers of shares of common stock outstanding during each year after giving
effect to the dilutive potential of sharesof common stock to be issued upon theexercise of stock subscription rights andstock options. Cash dividends per share
shown for each fiscal period in the accompanying consolidated statement ofincome represent actual dividends declared as applicable to a common stockduring the respective fiscal period.

(18) Recognition criteria forsignificant revenue andexpenses
Amano Group recognizes revenue basedon the following five-step approach:
Step 1: Identify the contract(s) with acustomer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price tothe performance obligations in the contract
Step 5: Recognize revenue when (or as)
the entity satisfies a performance obligation
Major businesses of Amano Group companies are the manufacturing and salesof Information Systems, Time Management Products, Parking Systems, Environmental Systems, and Clean Systems.
See “Segment Information 1. Outline ofReporting Segments” for details.
Amano Group normally recognizes revenue for the sales of these products upon
the completion of acceptance inspection
by the customer, because Amano Grouphas determined that the customer gains
control over the product and our performance obligation is satisfied upon
the completion of the customer’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 isnormal, revenue is recognized at the21time of shipment. Revenue is measured
at the price promised to the customer inthe contract, after deducting any trade
discounts and/or returns, etc.
Amano Group may provide the customer with maintenance and other services
related to these products. In this case,revenue for such services is recognizedover the contract period as the performance obligations for such services are
satisfied basically over the passage oftime. Revenue for construction contracts
for certain Parking systems and Environmental systems is recognized based on
the percentage of completion pertaining to the satisfaction of performanceobligation because Amano Group hasdetermined that the performance obligation is satisfied over a certain period.
For constructions whose construction
period is extremely short, revenue isrecognized when the installation thatfully satisfies the performance obligation is completed. The percentage ofcompletion pertaining to the satisfactionof performance obligation is estimatedbased on the percentage of actual costto estimated total cost (input method) if
the result of performance obligation canbe reasonably measured.

(19) Change of Accounting Policy(Application of “Accounting Standard
for Revenue Recognition”)
Amano Group has applied the “Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29, March 31,2020) and related guidance from beginning of this consolidated fiscal year.
Amano Group now recognizes revenue
as the amount expected to be received
in exchange for promised goods orservices when control of said goods orservices is transferred to the customer.
With regard to construction contracts, inthe past, "Percent-of-Completion Method" was applied to construction work
for which the certainty of the progresswas recognized, and the "Completedcontract Method" was applied to otherconstruction work. By applying the revenue recognition accounting standard,for construction works for which performance obligations are fulfilled over acertain period of time, the level of progress is now estimated. Provided that theresult of the performance obligation canbe reasonably measured, the level ofprogress is estimated based on the ratioof Actual Cost against Total Estimated
Cost (accounting input method). As forconstruction with a very short construction period, revenue is recognized uponcompletely satisfying the performanceobligations.
For the application of the revenue recognition accounting standard, Amano
Group has followed the transitional
treatment prescribed in Article 84 proviso of the standard.
Accordingly, the cumulative effect ofretroactively applying the prescribed in
Article 84 proviso of the standard. Accordingly, the cumulative effect of retroactively applying the subtracted from retained earnings at the beginning of the
fiscal year. However, for the contracts
for which almost all revenues have beenrecognized under the previous accounting method before the beginning of thisconsolidated fiscal year, the method
stipulated in Article 86 of the Revenue
Recognition Accounting Standard is notapplied retroactively. In addition, in accordance to Provision (1) stipulated in
Section 86 of the Accounting Standard
for Revenue Recognition, the accounts
have been processed reflecting allcontract modifications on all contracts
made prior to the beginning of this consolidated fiscal year, and the cumulative
impact amount was either added to or
subtracted from retained earnings at
the beginning of this consolidated fiscal
year. The impact of this change on the

beginning balance of retained earnings,
profit & loss for the consolidated fiscal,
segment information, etc. and per share
information was insignificant.
Due to the application of revenue recognition accounting standards, "Notes andaccounts receivable-trade", which wasindicated in "Current assets" in the previous year's consolidated balance sheet,
is now indicated in "Notes and accounts
receivable-trade and contract assets"from this consolidated fiscal year. In addition, the "(increase) decrease in tradenotes and accounts receivables" which
was indicated in the "cash flow fromoperating activities" of the consolidated
cash flow statement for the previous
consolidated fiscal year, is now includedin the "(increase) decrease in tradenotes and accounts receivables and contract assets" from the consolidated fiscal
year. Furthermore, in accordance withthe transitional treatment stipulated in
Article 89-2 of the Accounting Standard
for Revenue Recognition, the previous
consolidated fiscal year has not been
reclassified using the new presentation
method.
(Application of “Accounting Standard
for Fair Value Measurement”)
The "Accounting Standard for Fair Value
Measurement" (ASBJ Statement No. 30,
July 4, 2019; hereinafter referred to as"Fair Value Measurement AccountingStandard"), etc. has been applied fromthe beginning of this consolidated fiscal
year and in accordance with the transitional treatment stipulated in Paragraph
19 of the Standard and "AccountingStandard for Financial Instruments"(ASBJ Statement No. 10, July 4, 2019)and Paragraph 44-2. shall be applied
prospectively. Moreover, there is no impact on the consolidated financial state-

22

ments.

(20) A ccounting standard issued
but not yet effective"Lease"Overseas subsidiary applying US GAAP
The ASU “Lease” (ASU No.2016-02), issued on February 25, 2016.
(1) Overview
This accounting standard requires thata lessee's lease, in principle, recognize
assets and liabilities for all leases.
(2) Scheduled date of adoption
The Company expects to adopt the accounting standard from the beginning of
the fiscal year ending March 31, 2023.
(3) Impact of adoption of accounting
standard and implementation guidance
The Company is currently evaluating
the effect of the adoption of this accounting standard and implementation
guidance on its consolidated financial
statements.

(21) 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 mediumto long-term businessperformance and to increase the corporate value, Amano Corporation andsome of its subsidiaries have introduced
the Compensation BIP Trust system fordirectors(excluding external directors and directors residing overseas) and operating
officers (excluding officers residing
overseas), as well as the Employee
Stock Ownership Plan (J-ESOP) systemfor employees who meet the prescribed
requirements.
(a) Outline of the system
Under the system, a trust is establishedwith funds contributed by Amano
Corporation. Stocks of Amano Corporation are acquired by the trust and to
be provided to eligible persons.Under

the Directors' Compensation BIP Trust,in accordance with the stock distribution rules and based on points granted
according to their positions and theattainment level of numerical targetsof performance indicators, stocks of
Amano Corporation are provided by thetrust to directors and operating officers.
Under the Employee Stock Ownership
Plan (J-ESOP), in accordance with thestock distribution rules and based on
points granted according to their positions and operating performance, stocksof Amano Corporation are provided by
the trust to employees who meet theprescribed requirements.
(b) Stocks of Amano Corporation thatremain in the trust
Stocks of Amano Corporation that remain in the trust are recorded as treasury stock in the net assets section withthe book value of the trust (excluding
incidental expenses). The book value
and the numbers of the treasury stock
at March 31, 2022 are ¥993 million and
400,519 shares, respectively. (The status
of COVID-19 initiatives and the estimated accounting impact)
As an effort to ensure the health andsafety of employees, the Company andits domestic subsidiaries have adopted
flexible work such as telework (workfrom home) and staggered working
hours as well as workplace vaccinationin limited areas.
Overseas group companies respond inaccordance with instructions given,such as a curfew, by the local authorities of the countries or the states where
they are located, and they generally
work from home where a curfew is
imposed. As for our factory operations,domestic factories are now operating
normally. Our U.S. factories are currently operating normally depending
on enforcements issued by their local authorities. We, the Amano Group

companies makes accounting estimatesfor impairment loss on fixed assets anddeferred tax assets recoverability basedon information available at the time of
preparing the consolidated quarterly financial statements. Although the impact
and severity of COVID-19 on our groupwill differ depending on the business,
it is assumed that the impact would
still remain in FY2022, with the gradual
recovery after the first half of the last
fiscal year ending March 2021, but inwhich we had not a significant impact
on the estimated accounting.

4. 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 oftranslating Japanese yen to U.S. dollars
at a rate of ¥ 122= US$1, the approximate effective rate of exchange prevailing on March 31, 2022. 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.

23

5. Investments in Unconsolidated Subsidiaries and Affiliates
Among investments in securities, the amount in aggregate corresponding to unconsolidated subsidiaries and affiliates at
March 31, 2022 and 2021 is as follows:
Millions of Yen

Investments in equity securities………………
Others………………………………………………

2022¥4,31653

2021¥2,18453

Thousands of U.S.dollars ( Note 4 )2022$35,377434

6. Assets Pledged as Collateral and Obligations Secured by Collateral
As at March 31, 2022 and 2021, the following assets were pledged as collateral:
Millions of Yen

2022–

Cash and bank deposits…………………………

2021
¥67

Thousands of U.S.dollars ( Note 4 )2022–

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:
Millions of Yen

Trade notes receivable ……………………………
Accounts receivable ………………………………
Contract assets ……………………………………

2022¥2,335¥24,902
¥757

2021
–
–
–

Thousands of U.S.dollars ( Note 4 )2022$19,139
204,115
6,205

8. Other current liabilities
Of the others, the amount of contract liability is as follows:
Millions of Yen(1) Contract liability………………………………

2022¥4,5402021–

Thousands of U.S.dollars ( Note 4 )2022$37,213

9. Selling, General and Administrative Expenses
Selling, general and administrative expenses during the years ended March 31, 2022 and 2021 principally include:
Millions of Yen

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

2022¥1,788128
1,123
18,737
85
70
38

2021
¥1,60190
1,142
18,249157
55
34

Thousands of U.S.dollars ( Note 4 )2022$14,656
1,049
9,205
153,582
697
574
311

10. Research and Development Costs
Research and development costs included in selling, general and administrative expenses and manufacturing cost for the years
ended March 31, 2022 and 2021 are as follows:
Millions of Yen

Research and development costs…………………

2022¥2,01524

2021¥1,793Thousands of U.S.dollars ( Note 4 )2022$16,516

11. Gain on sale of fixed assets
Details of Gain on sale of fixed assets for the years ended March 31, 2022 and 2021 are as follows:
Millions of Yen

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

2022
¥260
11
2
137
¥412

Thousands of U.S.dollars ( Note 4 )2022$2,13994
191,128$3,380

2021
¥3
6
11
–
¥21

12. Loss on disposal of fixed assets
Details of Loss on disposal of fixed assets for the years ended March 31, 2022 and 2021 are as follows:
Millions of Yen

Buildings and structures…………………………
Machinery and equipment………………………
Tools, Furniture and Fixtures…………………
Leased Assets……………………………………
Total………………………………………………

2022
¥15
7
11
13
¥49

Thousands of U.S.dollars ( Note 4 )

2022
$128
64
94
114
$402

2021
¥4
2
31
7
¥45

13. Loss on sale of fixed assets
Details of Loss on sale of fixed assets for the years ended March 31, 2022 and 2021 are as follows:
Millions of Yen

Buildings and structures…………………………
Machinery and equipment………………………
Land………………………………………………
Total………………………………………………

2022
¥3
0
1
¥5

Thousands of U.S.dollars ( Note 4 )

2022
$25
0
8
$41

2021
–
–
–
–

14. Impairment Loss on Fixed Assets
No impairment loss on fixed assets was recorded for the year ended March 31, 2022.
Impairment loss on fixed assets for the year ended March 31, 2021 is as follows:
Location

Purpose of use

Amano McGann, Inc. (U.S.A.)

Business use

Amano Accu-Time Systems,
Inc. (U.S.A.)

Head officeCategory
Software
Other intangible fixed assets
Buildings and structures
Machinery and equipment
Land

2021

Thousands of
U.S. dollars ( Note 4 )2021¥1,060$8,689¥61$550

Millions of Yen

Method to Group Assets:
The Company and its subsidiaries group assets according to minimum units that generate cash flows essentially independent
from the cash flows of other assets or groups of assets.
Recognition of Impairment Loss:As the forecasted profit was not expected due to poor performance, the book values of Amano McGann, Inc.'s groups of assets
were reduced to the recoverable amounts, and the reductions were recognized as impairment losses.
Due to decision of sale of fixed assets, the book values of Amano Accu-Time Systems, Inc.'s groups of assets were reduced
to the recoverable amounts, and the reductions were recognized as impairment losses.
Calculation of Recoverable Amount:
As to Amano McGann, Inc., the recoverable amount for said assets were reasonably estimated based on the value in use, whichwere determined to be zero as no future cash flow is expected.
As to Amano Accu-Time Systems, Inc., the recoverable amount for said assets were reasonably estimated based on the net selling
price, which were measured by the estimated selling price.
25

15. Other Comprehensive Income
The following table presents reclassification adjustments and tax effects allocated to each component of other comprehensive
income (loss) for the years ended March 31, 2022 and 2021:

2022
¥305
–
305
(93)
212

2021
¥1,225
–
1,225
(374)
851

Thousands of U.S.dollars( Note 4 )2022$2,500
–
2,500
(762)
1,745

1,990
–
1,990
–
1,990

(504)
–
(504)
–
(504)

16,313–
16,313–
16,313

(154)
244
90
(20)
70

349
288
638
(198)
440

(1,262)
2,000
738
(164)
578

0
–

0
–

0
–

0
¥2,2730¥788

1$18,637

Millions of Yen
Net unrealized gains (losses) on other securities:
Amount arising during the year ……………………………………………
Reclassification adjustments …………………………………………………
Amount before tax effect ……………………………………………………
Tax effect ………………………………………………………………………
Net unrealized gains (losses) on other securities …………………………
Translation adjustments:
Amount arising during the year ……………………………………………
Reclassification adjustments …………………………………………………
Amount before tax effect ……………………………………………………
Tax effect ………………………………………………………………………
Translation adjustments ………………………………………………………
Retirement benefits liability adjustments:
Amount arising during the year ……………………………………………
Reclassification adjustments …………………………………………………
Amount before tax effect ……………………………………………………
Tax effect ………………………………………………………………………
Retirement benefits liability adjustments …………………………………
Share of other comprehensive income (loss) of companies 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) ……………………………………

26

16. Changes in Shareholders' Equity
Changes in "Shares issued and outstanding" and "Shares of treasury stock" during the period from April 1, 2021 to March 31, 2022 are as follows:(1) Shares issued and outstanding
Share type
As of April 1, 2021
Increase
Decrease
Common stock (shares)
76,657,829––(2) Shares of treasury stock
Share type
As of April 1, 2021
Increase
Decrease
Common stock (shares)
2,033,401
751,305
20,795(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).

As of March 31, 2022
76,657,829
As of March 31, 2022
2,763,911

Changes in "Shares issued and outstanding" and "Shares of treasury stock" during the period from April 1, 2020 to March 31, 2021 are as follows:(1) Shares issued and outstanding
Share type
Common stock (shares)

As of April 1, 2020
76,657,829

Increase–

Decrease(2) Shares of treasury stock
Share type
As of April 1, 2020
Increase
Decrease
Common stock (shares)
1,925,901
118,186
10,686(Reason for change)
The increase in the number of shares is due to the purchases of 486 shares less than one unit.
The increase in the number of shares is due to acquisitions of 117,700 shares by Directors' Compensation BIP Trust.
The decrease in the number of shares is due to delivery of 10,586 shares by Directors' Compensation BIP Trust.
The decrease in the number of shares is due to benefit of 100 shares by Employee Stock Ownership Plan (J-ESOP).

–

As of March 31, 2021
76,657,829
As of March 31, 2021
2,033,401

17. Dividends
Information on dividends for the fiscal year ended March 31, 2022 is as follows:(1) Dividends paid
Total dividend Total dividend Dividend per share Dividend per share Date of record Effective date(Millions of Yen) (Thousands of U.S.dollars)(Yen)(U.S.dollars)
Ordinary general meeting of shareholders, Common stock
March 31,
¥3,377$27,681¥45$0.369June 30, 2021
June 29, 2021
2021
Board of directors meeting,
September
30,
December 2,
Common stock¥1,857$15,224¥25$0.205October 28, 2021
2021
2021
(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 our shares owned by Employee Stock Ownership Plan (J-ESOP).
"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 our shares owned by Employee Stock Ownership Plan (J-ESOP).
(2) Dividends for which the date of record falls in the fiscal year, but the effective date is after the end of the fiscal year.
Dividend Total dividend Total dividend Dividend per share Dividend per share Date of record Effective date
Resolution
Share typefunding(Yen)(U.S.dollars)(Millions of Yen) (Thousands of U.S.dollars)
Ordinary general meeting of shareholders, Common
Retained
March 31,
June 30,¥5,200$42,628¥70$0.574
June 29, 2022
stock
earnings
2022
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 our shares owned by Employee Stock Ownership Plan (J-ESOP).
Resolution

Share type

Information on dividends for the fiscal year ended March 31, 2021 is as follows:(1) Dividends paid
Resolution

Share type

Total dividend(Millions of Yen)

Total dividend
Dividend per share Dividend per share Date of record(Thousands of U.S. dollars)(Yen)(U.S. dollars)
March 31,
$37,861¥56$0.5052020
September 30,¥13,522¥20$0.1802020

Effective dateOrdinary general meeting of shareholders, Common stock
June 29,¥4,202June 26, 2020
2020
December 2,
Board of directors meeting,Commonstock¥1,5002020
October 28, 2020
(NOTES)"Total dividend" as determined by the Ordinary general meeting of shareholders' resolution on June 26, 2020 includes ¥ 9 million for dividends on the Company's shares owned by Directors' Compensation BIP Trust and ¥ 8 million for dividends on our shares owned by Employee Stock Ownership Plan (J-ESOP).
"Total dividend" as determined by the Board of Directors' resolution on October 28, 2020 includes ¥ 5 million for dividends on the Company's shares owned
by Directors' Compensation BIP Trust and ¥ 2 million for dividends on our shares owned by Employee Stock Ownership Plan (J-ESOP).
(2) Dividends for which the date of record falls in the fiscal year, but the effective date is after the end of the fiscal year.
Dividend
Total dividend Dividend per share Date of record Effective date
Resolution
Share typefunding(Millions of Yen)
(Yen)
Ordinary general meeting of shareholders, Common
Retained
March 31,
June 30,¥3,377¥45
June 29, 2021
stock
earnings
2021
2021(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 our shares owned by Employee Stock Ownership Plan (J-ESOP).

27

18. Cash and Cash Equivalents
Reconciliations of cash and cash equivalents to the amounts shown in the consolidated balance sheet as at March 31, 2022 and2021 are as follows:
Millions of Yen
Cash and bank deposits…………………………………
Marketable securities…………………………………
Sub total……………………………………………
Time deposits due over three months…………………
Marketable securities due over three months…………
Cash and cash equivalents……………………………

2022¥60,337
3,219
63,557(5,275)(2,350)¥55,9312021¥56,432
2,556
58,989(4,593)(1,850)¥52,546

Thousands of U.S.dollars( Note 4 )2022$494,574
26,387
520,960(43,241)(19,262)$458,457(Supplemental disclosure of non-cash transactions)
The significant non-cash transactions for the years ended March 31, 2022 and 2021 are as follows:
Millions of Yen
Leased assets…………………………………………
Lease obligations………………………………………

2022¥4,6995,180

2021¥4,123
4,525

Thousands of U.S.dollars( Note 4 )2022$38,516
42,45919. Lease Commitments(1) Lessees' accounting
Minimum future lease payments under operating leases subsequent to March 31, 2022 and 2021 for non-cancelable operatingleases are summarized as follows:
Millions of Yen
Due within 1 year…………………
Due over 1 year……………………
Total…………………………………

2022
¥66
125
¥191

2021
¥69
191
¥261

Thousands of U.S.dollars ( Note 4 )
2022
$541
1,025
$1,566(2) Lessors’ accounting
Minimum future lease income under operating leases subsequent to March 31, 2022 and 2021 for non-cancelable operatingleases is summarized as follows:
Millions of Yen
Due within 1 year…………………
Due over 1 year……………………
Total…………………………………

2022
¥101
199
¥300

2021
¥101
300
¥401

28

Thousands of U.S.dollars ( Note 4 )
2022
$828
1,631
$2,45920. Financial Instruments
1. Overview(1) 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.

(2) 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. Tradenotes, accounts payable and electronically recorded monetary claims as trade liabilities are due and payable within one year. 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.

(3) Risk management policiea) 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.

b) Management policy for market risk (foreign currency exchange and interest rates)
Marketable securities and investment 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 therelationship, and other factors, with the issuer.

c) 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.

(4) 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 theprices which are assessed as reasonable by the Company. Since the Company takes contingent variable factors into account when estimating the fair value, itwould vary depending on the different preconditions.

2. Estimated fair value of financial instruments
Differences between carrying value and estimated fair value as of March 31, 2022 and 2021 are as follows:
Financial instruments whose fair values are difficult to estimate are not stated in the following table; refer to (* 2).

Carrying
value
Marketable securities and investments in securities① Held-to-maturity……………………………
② Subsidiaries and affiliates…………………
③ Other securities………………………………
Total (Assets)…………………………………

4,934
2,261
8,339
¥15,535

Carrying
value
Marketable securities and investments in securities① Held-to-maturity……………………………
② Subsidiaries and affiliates…………………
③ Other securities………………………………
Total (Assets)…………………………………

4,434
2,134
7,866
¥14,435

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

¥3
25
–
¥29

Thousands of U.S.dollars ( Note 4 )2022
Carrying
Estimated
Difference
value
fair value
in amounts
40,443
18,53368,352$127,336

40,467
18,746
68,352$127,582

$25
205
–
$238

Millions of Yen
2021
Estimated
Difference
fair value
in amounts
4,457
3,732
7,866
¥16,056

¥23
1,597
–
¥1,621(NOTES)"Cash and bank deposits," "Notes and accounts receivable," "Trade notes and accounts payable," and "Electronically recorded monetary claims" are omitted as they are cash and their fair value is close to the book value since these items are settled in a short period of time.

29

Financial instruments whose fair values are difficult to estimate are as follows:
Millions of Yen
2022¥2,377

Unlisted securities (Carrying value)

Thousands of U.S.dollars ( Note 4 )2022$19,484

2021¥372

The unlisted securities as stated above are not included in (3) Marketable securities and investments in securities because it is difficult to estimate the fair value
based on the quoted market prices in active markets.
(*1) 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¥89,925409¥409¥2,174¥2,174––

Millions of Yen
2021
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

Due
within 1 year
¥56,432
27,175
1,850¥85,457

409¥409¥2,174¥2,174

19,262$737,090$3,352$3,352Due
after 10 years––––

Thousands of U.S.dollars ( Note 4 )2022
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

Due
within 1 year
$494,574
223,261

Due
after 10 years––$17,820$17,820

Due
after 10 years––––(*2) Repayment schedule for bonds payable, long-term loans payable, lease obligations and other interest-bearing liabilities subsequent to the balance sheet date:Long-term loans payable…………………
Lease obligations…………………………
		
Total…………………

Due within 1 year–
¥3,610¥3,610The 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

Millions of Yen

2021
Long-term loans payable…………………
Lease obligations …………………………
		
Total…………………

Long-term loans payable…………………
Lease obligations…………………………
		
Total…………………

Due within 1 year–
¥2,843¥2,843

The 2 years–¥2,459¥2,459The 5 years
–
¥439
¥439

Thereafter
–
¥461
¥461

Due within 1 year–
$29,593$29,593

Thousands of U.S.dollars ( Note 4 )2022
The 2 years
The 3 years
The 4 years
The 5 years––––$18,165$10,374$5,775$3,178$18,165$10,374$5,775$3,178Thereafter–$3,447$3,44730

The 3 years
–
¥959
¥959

The 4 years
–
¥537
¥537

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 the calculation 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 inthe level of the lowest level input that is significant to the entire measurement (based on the application of judgement).

(1) Financial instruments recorded on the consolidated balance sheet at fair value are as follows:

Marketable securities and investments in securities:
Other securities……………………………………
Total……………………

Level 1

2022
Fair values (Millions of Yen)
Level 2
Level 3

Total

¥7,470¥7,470¥869¥869¥8,339¥8,339Thousands of U.S. dollars ( Note 4 )2022
Level 2
Level 3

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

––$61,230$61,230$7,123$7,123––

Total$68,352$68,352(2) Financial instruments that are not recorded on the consolidated balance sheet at fair value are as follows:

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……………………

Level 1

2022
Fair values (Millions of Yen)
Level 2
Level 3

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

Level 1Thousands of U.S. dollars ( Note 4 )2022
Level 2
Level 3–
$18,746$18,746$40,467–$40,467

–
–
–

Total
$40,467$18,746$59,221(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
the book value.

31

Marketable securities
1. Held-to-maturity securities as at March 31, 2022 and 2021 are as follows:
Millions of Yen
2022

Held-to-maturity securities with fair……
value exceeding carrying value
Held-to-maturity securities with fair……
value not exceeding carrying value
		Total……………………………

Thousands of U.S.dollars ( Note 4 )2022
Unrealized
Carrying value
Fair value
gains (losses)

Carrying value

Fair value

Unrealized
gains (losses)¥1,326¥1,333¥7$10,869$10,926

$57

3,608

3,604

(3)

29,57429,541(25)¥4,934¥4,937¥3$40,443$40,467$25

Millions of Yen
2021
Carrying value
Held-to-maturity securities with fair……
value exceeding carrying value
Held-to-maturity securities with fair……
value not exceeding carrying value
		Total……………………………

¥2,283

Fair value

Unrealized
gains (losses)¥2,307¥23¥2,150¥2,150(¥0)¥4,434¥4,457¥23

2. Other securities as at March 31, 2022 and 2021 are as follows:
Millions of Yen
2022
Acquisition
Carrying value
cost
Other securities with carrying
value exceeding acquisition cost
Stocks………………………………
Other…………………………………
		Subtotal…………………………
Other securities with carrying
value not exceeding acquisition cost
Stocks………………………………
Other…………………………………
		Subtotal…………………………
		Total……………………………

Unrealized
gains (losses)¥5,724705
6,430¥2,492
697
3,190¥3,232
7
3,239$46,918
5,779
52,705$20,426
5,713
26,148$26,49257
26,549

1,745
163
1,909
¥8,339

1,976
163
2,140
¥5,330

(230)
–
(230)
¥3,00914,303
1,336
15,648$68,352

16,197
1,336
17,541$43,689(1,885)–(1,885)$24,664

Millions of Yen
2021
Carrying value Acquisition cost
Other securities with carrying
value exceeding acquisition cost
Stocks………………………………
Other…………………………………
		Subtotal…………………………
Other securities with carrying
value not exceeding acquisition cost
Stocks………………………………
Other…………………………………
		Subtotal…………………………
		Total……………………………

Thousands of U.S.dollars ( Note 4 )2022
Unrealized
Acquisition
Carrying value
gains (losses)
cost

Unrealized
gains (losses)¥6,306706
7,013¥3,503699
4,202¥2,803
7
2,810

853
–
853
¥7,866959–
959¥5,162

(106)
–
(106)
¥2,70432

21. Retirement Benefits
Outline of the retirement benefit plans adopted(1) D efined benefit corporate pension scheme: From March 1, 2009, the Company adopted a defined benefit corporate pension
scheme as part of its retirement benefit plan.
(2) D efined contribution pension scheme: From March 1, 2009, the Company adopted a defined contribution pension schemeas part of its retirement benefit plan.
(3) E mployees' pension fund: Since April 1, 1980, the Company has used an multi-employer contributory funded pension plan
as a supplement to its existing retirement benefit scheme.
In addition, certain subsidiaries have lump-sum payment plans and a defined benefit corporate pension plan. They calculate theretirement benefit expenses, and assets and liabilities for retirement benefits by means of a simplified method.
The changes in the retirement benefit obligation for the years ended March 31, 2022 and 2021 are as follows:
Millions of Yen
2022¥13,890
1,026
70
(166)
(781)
(2)
18
¥14,055

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 year……………………………………

2021¥13,739
999
68
(38)
(879)
–
(0)
¥13,890

Thousands of U.S.dollars( Note 4 )2022$113,852
8,410
574(1,361)(6,402)(16)
148$115,205

The changes in plan assets for the years ended March 31, 2022 and 2021 are as follows:
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 year……………………………………

33

2021
¥11,201
278
309
774
(789)
7
¥11,783

Thousands of U.S.dollars( Note 4 )2022$96,582
2,336(2,574)
6,098(5,082)
107$97,475

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as ofMarch 31, 2022 and 2021 for the Company's and the consolidated subsidiaries' defined benefits plans:

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

2022¥13,971(11,892)
2,079
84
2,163

2021
¥13,811(11,783)
2,028
78
2,107

Thousands of U.S.dollars( Note 4 )2022$114,516(97,475)
17,041689
17,730Liability for retirement benefits………………………………
Asset for retirement benefits……………………………………
Net liability for retirement benefits in the balance sheet……

2,163–¥2,163

2,107–¥2,107

17,730–$17,730

Millions of Yen
Funded retirement benefit obligation……………………………
Plan assets at fair value…………………………………………

The components of retirement benefit expense for the years ended March 31, 2022 and 2021 are as follows:
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……………………………………

2021
¥999
68
(278)
290
–
¥1,080Thousands of U.S.dollars( Note 4 )2022$8,410574(2,336)
1,959(16)$8,590The components of retirement benefits liability adjustments included in other comprehensive income (before tax effect) for theyears ended March 31, 2022 and 2021 are as follows:
Thousands of U.S.dollars
Millions of Yen

2022
–
89
¥89

Prior service cost …………………………………………………
Actuarial loss (gain)……………………………………………
Total………………………………………………………………

2021
–
638
¥638

( Note 4 )
2022
–
730
$730

The components of retirement benefits liability adjustments included in accumulated other comprehensive income (before tax
effect) as of March 31, 2022 and 2021 are as follows:
Thousands of U.S.dollars
Millions of Yen

2022
–
(796)
(¥796)

Unrecognized prior service cost…………………………………
Unrecognized actuarial loss……………………………………
Total………………………………………………………………

2021
–
(885)
(¥885)( Note 4 )2022–(6,525)($6,525)

The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2021 and 2020 is as follows:
Millions of Yen
2022
2021
14%
13%
51%
53%
16%
15%
19%
19%
100%
100%

General accounts…………………………………………………
Bonds………………………………………………………………
Stocks……………………………………………………………
Other………………………………………………………………
Total………………………………………………………………

The expected return on plan assets has been estimated based on the anticipated allocation to each asset class and the expectedlong-term returns on assets held in each category.
The assumptions used in accounting for the above plans were as follows:**They are calculated by the weighted average method.
2022
0.8%
2.5%
5.0%

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

34

2021
0.7%
2.5%
5.0%

For defined benefit plans to which the simplified method is applied, the changes in the retirement benefit obligation for the years
ended March 31, 2022 and 2021 are as follows:
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……………………………………

2021
¥102
30
(29)
(24)
(0)
¥79

Thousands of U.S.dollars( Note 4 )
2022
$648
336
(82)
(205)
0
$697

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as ofMarch 31, 2022 and 2021 for the Company's and the consolidated subsidiaries' defined benefits plans:

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

2022
¥311
(386)
(75)
161
85

2021
¥284
(356)
(71)
150
79

Thousands of U.S.dollars( Note 4 )2022$2,549(3,164)
(615)
1,320
697

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

213
(128)
¥85

201
(122)
¥79

1,746
(1,049)$697

Millions of Yen
Funded retirement benefit obligation………………………………
Plan assets at fair value……………………………………………

Retirement benefit expenses calculated using the simplified method for the years ended March 31, 2022 and 2021 are as follows:
Millions of Yen
2022
¥41

Retirement benefit expenses………………………………………

2021
¥30

Thousands of U.S.dollars( Note 4 )
2022
$336

Contributions to defined contribution plans of the Company and its consolidated subsidiaries for the years ended March 31,
2022 and 2021 are as follows:
Millions of Yen
2022
¥567

Contributions to defined contribution plans………………………

35

2021
¥582

Thousands of U.S.dollars( Note 4 )2022$4,648

22. Income Taxes
Deferred tax assets and liabilities (both current and non-current) as at March 31, 2022 and 2021 consisted of the following elements:
Millions of Yen

Thousands of U.S.dollars(Note 4)

2022

2021

2022

Deferred tax assets:
Accrued enterprise tax …………………………………………………………………
Accrued employees' bonuses…………………………………………………………
Net liability for retirement benefits……………………………………………………
Loss carried forward(* 2)…………………………………………………………………
Loss on write-down of investments in securities……………………………………
Surplus on allowance for doubtful accounts…………………………………………
Unrealized gains…………………………………………………………………………
Others……………………………………………………………………………………
Subtotal deferred tax assets………………………………………………………
Less: valuation allowance for tax loss carryforwards(* 2)…………………………
Less: valuation allowance for deductible temporary difference……………………
Subtotal valuation allowance(* 1)………………………………………………
Total deferred tax assets……………………………………………………………

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

¥115
772
673
1,103
240
155
523
1,860
¥5,444(981)(1,278)(2,259)¥3,185$1,484
6,533
5,754
13,623
1,885
1,172
4,320
17,164$51,959(12,533)(10,689)(23,230)$28,730

Deferred tax liabilities:
Unrealized loss on other securities……………………………………………………
Others……………………………………………………………………………………
Total deferred tax liabilities………………………………………………………
Net deferred tax assets……………………………………………………………

(843)
(168)
(1,012)¥2,492

(760)
(149)
(909)
¥2,275(6,910)(1,377)(8,295)$20,426(NOTES)(* 1): V aluation allowance increased by ¥ 574 million. The main reason is that valuation allowance due to an increase in carried forward
loss of a consolidated subsidiary in North America increased by ¥ 536 million.
(* 2): A breakdown of net operating loss carryforwards and valuation allowance by expiry date as of March 31, 2022 is 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)

Due after
5 Years

Total$13,623(12,533)$1,082$13,623(12,533)$1,082(b)

Thousands of U.S. dollars ( Note 4 )2022
Due in One 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 ¥ 132 million are related to tax loss carryforwards of ¥ 1,662 million. The tax loss carryforwards for which theCompany recognized deferred tax assets are determined to be recoverable by expected future taxable income.

36

Millions of Yen
2021
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¥1,103(981)¥121¥1,103
(981)
¥121
(b)

Due after
5 Years

Total$9,937(8,838)$1,090$9,937(8,838)$1,090(b)

Thousands of U.S. dollars ( Note 4 )2021
Due in One 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 ¥ 121 million are related to tax loss carryforwards of ¥ 1,103 million. The tax loss carryforwards for which theCompany recognized deferred tax assets are determined to be recoverable by expected future taxable income.

Reconciliation of the effective statutory tax rate and the actual tax rate is shown below:
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……………………………………………………
Others……………………………………………………………………………………
Actual tax rate……………………………………………………………………

2022
–

2021
30.6%

–
–
–
–
–
–
–
–
–
–
–
–

0.8
(4.5)
0.9
0.8
4.3
(4.7)
(0.3)
(1.4)

0.1
(0.8)
(0.4)
25.4%

(NOTES)
Notes are omitted as the difference between the normal effective statutory tax rates and the actual effective tax rates in the current fiscal year is five onehundredths or less of the normal effective statutory tax rates.

37

23. Revenue Recognition
1 Disaggregated information for revenue generated from contracts with customers.
Millions of Yen
2022
Reportable segments
Environment
system business–––
19,977
11,361
31,339–31,339

Information Systems…………………………………………………
Time Management Products…………………………………………
Parking Systems………………………………………………………
Environmental Systems………………………………………………
Clean Systems…………………………………………………………
Revenue generated from contracts with customers…………………
Other revenue ……………………………………………………………
Sales to third parties……………………………………………………

Time information
system business¥28,808
2,700
55,581––87,090–87,090Information Systems…………………………………………………
Time Management Products…………………………………………
Parking Systems………………………………………………………
Environmental Systems………………………………………………
Clean Systems…………………………………………………………
Revenue generated from contracts with customers…………………
Other revenue ……………………………………………………………
Sales to third parties……………………………………………………

Thousands of U.S. dollars (Note 4)2022
Reportable segments
Time information
Environment
Total
system businesssystem business$236,135–$236,135
22,131–
22,131
455,587–455,587–
163,753
163,753–
93,127
93,127
713,853
256,880
970,733–––
713,853
256,880
970,733

Total¥28,808
2,700
55,581
19,977
11,361
118,429–
118,429

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 "3. Summary of Significant Accounting Policies (18) Recognition criteria for significant revenues and expenses" in "Notes to Consolidated Financial Statements,.

3 Information about the relationship between the fulfillment of performance obligations based on the contract with customer
and cash flow generated from contract, and the amount and timing of revenue expected to be recognized from the contract
with the customer existing at the end of the current consolidated fiscal year after the next consolidated fiscal year.
(1) 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

Thousands of U.S. dollars ( Note 4 )2022¥26,407$216,451

27,237
768
757
3,902
4,540

223,254
6,295
6,205
31,984
37,213On 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 forsome Parking systems and Environmental systems, and are transferred to trade receivables at the time of customer acceptance. Consideration forthese 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 Group 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 ofrevenue recognized from performance obligations that have been satisfied(or partially satisfied) in previous periods, are immaterial.

(2) Transaction price allocated to residual performance obligations
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.
The 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.
Also, there are no significant amounts not included in the transaction price in the consideration arising from the contract with the customer.

38

24. Segment Information
The reportable segments of the Company are components for which discrete financial information is available and whose operating results are regularly reviewed by the Executive Committee to make decisions about resource allocation and to assess performance.
The reportable segments are as follows:
1. Time information system business
2. Environment system business(1) Sales, profits or losses, assets and other items by reportable segments
Millions of Yen
2022
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……………………
Impairment loss for fixed assets…………………
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
29,704644––
334¥118,429–
118,429
16,706
100,036
7,523
–
2,261
7,274

Adjustments/
Eliminations

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

Adjustments/
Eliminations

Consolidated–––(¥3,753)
59,285580––
201¥113,598–
113,598
9,934
150,559
8,398
1,121
2,134
6,997

Millions of Yen
2021
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……………………
Impairment loss for fixed assets…………………
Investment in equity-method affiliates……………
Increase in tangible and intangible fixed assets……

¥84,590–
84,5909,654
65,616
7,229
1,121
2,134
6,297

¥29,007–
29,007
4,033
25,657
588
–
–
498

Total
¥113,598–
113,598
13,687
91,273
7,817
1,121
2,134
6,796

Thousands of U.S. dollars (Note 4)2022
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……

$713,853–
713,853
103,033
576,489
56,387
18,54056,889$256,880–
256,880
33,907
243,482
5,283
–
2,739

39

$970,733–
970,733
136,940
819,972
61,67018,54059,628–––($31,258)
486,118
4,484
–
2,127

Consolidated$970,733–
970,733
105,682
1,306,090
66,154
18,54061,755

(2) Related Information
Geographic Segments
Information by geographic region for the years ended March 31, 2022 and 2021 is summarized as follows:
Millions of Yen

Net sales:
Japan……………………………………
North America…………………………
Others……………………………………
Total…………………………………

2022¥74,104
14,15530,170¥118,429

2022$607,410
116,026
247,296$970,733

2021¥74,061
13,61525,921¥113,598

Millions of Yen

Tangible fixed assets:
Japan……………………………………
Others……………………………………
Total…………………………………

Thousands of U.S.dollars(Note 4)2022
¥17,474
8,305¥25,780

Thousands of U.S.dollars(Note 4)2022
$143,231
68,081$211,313

2021¥18,0457,546¥25,592(3) Information on "Impairment loss of fixed assets" by reportable segments for the years ended March 31, 2022 and 2021 issummarized as follows:

Impairment loss……………………………

Millions of Yen
2022
Reportable segments
Time information Environment
Total
system business system business–––Eliminations/
Corporate

Total

–

–

Millions of Yen
2021

Impairment loss……………………………

Reportable segments
Time information
Environment
system business system business¥1,121–

Total¥1,121Eliminations/
Corporate–

Total¥1,121(4) Information on both "amortization of goodwill" and "unamortized balance" by reportable segments as at and for the years
ended March 31, 2022 and 2021 is summarized as follows:

Amortization of goodwill…………………
Unamortized balance………………………

Millions of Yen
2022
Reportable segments
Time information Environment
Total
system business system business
¥336
¥14
¥351
¥1,417–¥1,417

Eliminations/
Corporate
–
–

Total
¥351
¥1,417

Millions of Yen
2021

Amortization of goodwill…………………
Unamortized balance………………………

Reportable segments
Time information
Environment
system business system business¥300¥57¥1,598¥14

Amortization of goodwill…………………
Unamortized balance………………………

Thousands of U.S. dollars ( Note 4 )2022
Reportable segments
Eliminations/Time information Environment
Corporate
Total
system business system business$2,760$119$2,880––$11,617–$11,617

40

Total
¥358
¥1,612Eliminations/
Corporate
–
–

Total
¥358
¥1,612Total$2,880$11,617

25. Per Share Data
Net assets and net income per share as at and for the years ended March 31, 2022 and 2021 are as follows:(1) Net assets per share
Yen

Net assets per share …………………………………

2022¥1,563.31

The basis for these calculations is as follows:
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………………

U.S.dollars (Note 4)

2021¥1,485.46

Thousands of U.S.dollars(Note 4)

Millions of Yen

2022¥116,271
752(752)
115,5192022$12.8142021¥111,585
733(733)
110,8512022$953,048
6,168(6,168)946,877

SharesNumber of shares of common stock used tocompute net assets per share………………………

2022

2021

73,893,918

74,624,428(2) Net income per share
Yen

2022
¥131.49

Net income per share ………………………………

U.S.dollars (Note 4)2021¥97.082022$1.078Notes: Diluted net income per share is omitted as there were no potential shares with dilutive effect.
The basis for these calculations is as follows:
Millions of Yen

2022¥9,733
9,733

Net income in the consolidated statement of income……
Net income relating to common stock……………

2021¥7,248
7,248

Thousands of U.S.dollars(Note 4)

2022
$79,787
79,787

SharesAverage number of shares ofcommon stock outstanding during the year……

2022

2021

74,027,602

74,660,620(3) 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 theaverage 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 385,352 shares for the previous fiscal year and 412,477 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 421,314
shares for the previous fiscal year and 400,519 shares for the current fiscal year.

4126. Significant Subsequent Events
On April 26, 2022, 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 capital efficiency in response to changes in the business environment.

(2) Details of the acquisition
Class of shares to be acquired
Total number of shares to be acquired
Total acquisition cost
Acquisition period:Common stock of the Company:Up to 1,000,000 shares (upper limit):[Representing 1.35% of the Total number of shares issued (excluding treasury stock)]:Up to 2,500,000,000 yen (upper limit):[Up to 20,492 Thousands of U.S. dollars ( Note 4 ) ]:From April 27, 2022 to August 31, 2022

42

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

Izumi NAKAJIMA
President & Representative Director

Masahiko MORITA
Yasuhiro SASAYA

Hiroyuki TSUDA(Outside) Audit & Supervisory Board Member

Director & Managing Operating Officer

Hanae NAKAYA
Naofumi NAGAKAWA

Kunihiro IHARA
Manabu YAMAZAKI

Takatoshi TAKAHASHI
Tetsuji ISHIKAWA
Yasuo FUJII
Masashi NABESHIMA
Tatsuo MAEKAWA
Tomonori KITAMIManaging Operating Officer

Susumu IKOMA

Director & Operating Officer

Operating Officer

Fujinori TAZO
Yoshihiko HATA

Myeong-Jin JEON
Toshiyuki NISHIKIORI
Hideo HONDA
Kouji AKIYAMA
Takeya HAYASHITANI(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

43

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 : http://www.amano.co.jp/English/