FINANCIAL REPORT
April 2012 March 2013

Management Policy
1. Basic Management Policy
Throughout its history, Amano has adhered to a basic policy of putting the customer
first. This has meant paying heed to what its customers say—based on its corporate
themes of “people and time” and “people and the environment”—and giving pivotal
importance to customer satisfaction throughout its business activities, particularly insales, production, and development.
In accordance with this fundamental policy, Amano continues to undertake businessactivities with the goal of earning the trust and high regard of all those who support it:
the customers, employees, shareholders, suppliers and other entities with which it does
business, and the local community. It achieves this by providing a variety of products,
systems, services, and solutions that match the needs of its customers in relation to thethemes of “people and time” and “people and the environment.”
Amano and its Group companies direct their efforts toward maximizing corporate value by fostering innovation in management and by ensuring a strong earnings structureand sustained growth in business performance.

2. New Medium-Term Business Plan
Amano and all of its Group companies continue to pursue the Group’s tradition of continuing to evolve in response to the changes of the times, while remaining committed
to the following four immutable strategies of the Amano Group.
(i) Emphasis on the Time & Ecology business fields and enhancement of our core business(ii) Being a niche leader in the business fields in which we excel(iii) Ceaseless restructuring(iv) Management based on cash flow
In accordance with these four fundamental strategies, Amano launched a new medium-term business plan. An outline of the plan is set out below.

[1] Basic Policies
Under its new medium-term business plan, the Group seeks to become a global niche
leader by exploring new market frontiers (advancing aggressively into emerging anduntapped markets), having each office engage in multiple business operations, andestablishing new business domains. We are pursuing a new global growth strategy designed to maximize our corporate value.
Priority issues under the new plan are listed below.

11. North American and European markets
North America: In the Parking System business, we will merge Amano McGann’s parking management software with the Amano Group’s software and hardware, introduce
new parking systems into the market, and strengthen direct sales structures to enable
us to work more closely with customers when proposing solutions. These efforts aredesigned to build upon our business foundations, which are second to none in North
America. In our Time Information System business, Accu-Time Systems Inc. will continue to scale up our operations by launching new products bolstering their alreadydiversified range of time information management terminals, in order to fully utilize
their blue-chip customer base. In addition, Amano Pioneer Eclipse Corp. will endeavor
to strengthen the Environment System business by enhancing the local production anddistribution of oil mist collectors.
Europe: In the Time Information System business, we will continue to enhance
Horosmart’s ability to offer holistic solutions, and to expand its blue-chip customer
base. These efforts are aimed at cementing our position as number one at the high endof the market in France and at increasing our visibility and expanding further into othermarkets across Europe. In the Parking System business, we will step up sales of lowpriced system products, focusing on the UK and the three Benelux countries, in orderto build a stronger business foundation.
2. Asian, Latin American and other emerging markets
Asia: In the Environment System business, we will enhance our ability to offer products
and render services to Japanese companies operating outside Japan in other parts ofAsia by deepening ties between our Group companies across Asia and our head officein Japan. We will also expand our local production capabilities in order to enhance
our cost competitiveness. In the Parking System business, we will seek to further scale
up our South Korean and Malaysian operations, as well as to aggressively promote thedevelopment of business operations in other Asian countries.
Latin America: In light of the local market’s future growth potential, we will aggressively allocate a higher proportion of our management resources, including local production capabilities, to this region, in order to explore the market frontiers in the Information System, Parking System, and Environment System businesses.
3.Japanese market
Japan: We will reinforce ties among Group companies and develop high-quality comprehensive service offerings (combining products and services) across all business fields
to expand our business domain, create new markets, and enhance our cost competitiveness. These efforts should align our entire group to work cohesively towards maximizing its corporate value.
[2] Numerical Targets
Although the business environment has generally improved as described in the Outlook for the Fiscal Year Ending March 31, 2014 on page 7, uncertainty remains regarding trends in capital investment that impact the Environment System business. Therefore, we have reviewed and modified the numerical targets originally set for the fiscal
year ending March 31, 2014 as described in Summary Information, taking into accountcurrent year results.

2

3. Basic Policy on Distribution of Profits and Payment of Dividends forThis Fiscal Year and the Next
Amano places great importance on its policy for the payment of dividends to shareholders. Fundamental to this is its policy for the return of profit to shareholders, based on
maintaining a stable ordinary dividend of ¥26 annually (¥13 interim and ¥13 year-end),
together with appropriate results-based distributions of profits and flexible purchasing oftreasury stock. The Company aims to maintain a payout ratio of at least 35% on a consolidated basis and a ratio of dividend to net assets of at least 2.5%.
In line with this policy, taking into account our current-year operations results, we plan
to pay a year-end dividend of ¥13 per share, unchanged from the amount paid at the endof the previous year. As a result, the annual per-share dividend will be ¥26 (including the¥13 per share paid as the interim dividend). This corresponds to a dividend payout ratioof 50.0% and a 2.7% ratio of dividends to net assets on a consolidated basis.
With regard to the dividend for the next fiscal year, in line with our Basic Policy on Distribution of Profits and in view of our Outlook for Fiscal Year Ending March 31, 2014, we
aim to pay an annual per-share dividend of ¥26 (interim dividend of ¥13, and year-end
dividend of ¥13).
Retained earnings will be earmarked to fund effective investment aimed at the fundamental enhancement of the Company’s capacity to conduct its business operations. This will
include the expansion and strengthening of existing business fields, strategic investment
in growth fields, and spending on research and development, as well as the rationalization of production plants and equipment for the purpose of reducing costs and further
improving product quality.

Izumi NAKAJIMA
President
Representative Director

3Analysis of Business Results
Business Results in the Year Ended March 31, 2013

During the fiscal year ended March
31, 2013, although overseas economies continued to struggle due touncer tainty resulting from the effects of the prolonged European
debt crisis, the slowdown in emerging economies (including China), andother factors, the Japanese economy
showed signs of improvement insentiment based on the prospects ofthe economy because public investments for reconstruction projects,
etc. following the Great East Japan

reduce sales costs and selling, general and administrative expenses.

Earthquake bolstered the economy
and the yen’s depreciation and surging stock prices continued as a resultof expectations stemming from thechange in the government.

As a result of the above, during the
fiscal year under review, the Company recorded sales of ¥90,295 million,
up by 2.4% year-on-year. Operating
profit increased by 23.9% to ¥7,329
million, ordinary profit went up by
22.9% to ¥7,768 million, and net income increased by 65.1% to ¥3,986
million, resulting in increases in bothincome and profit.

Amid this business environment, theAmano Group worked, in accordance with the consolidated growthstrategy (on a global basis) outlined
in its new medium-term businessplan, on global market and productdevelopment as well as enhancement of its capacity to provide holistic solutions. The Amano Group also
concentrated on thoroughly uncovering customer needs, and strove to

The following is a breakdown ofsales by business division.

Sales by business division(Unit: Millions of yen)

FY2011FY2012

year endedMarch 31, 2012

year endedMarch 31, 2013

AmountRatio (%)

AmountRatio (%)

AmountInformation Systems

19,56922.2

19,331

21.4

(238)

(1.2)

Time Management Equipment

4,245

4.8

3,996

4.4

(249)

(5.9)

Parking Systems

40,79446.3

42,208

46.7

1,414

3.5

Subtotal

64,60873.3

65,535

72.5

927

1.4

Environmental Systems

16,374

18.6

17,386

19.3

1,012

6.2

Clean Systems

7,165

8.1

7,374

8.2

209

2.9

Subtotal

23,53926.7

24,760

27.5

1,221

5.2

Total

88,147100.0

90,295

100.0

2,148

2.4

Change%Time Information System Business

Environment System Business

4Time Information System Business• Information systems:
Time & attendance (T&A), payroll,human-resource management, access
control, and cafeteria systems• Time management equipment:
Time recorders and time stamps• Parking systems:
Parking and bicycle-parking space
management systems, and commissioned parking lot management businessInformation Systems
Although information-related investments continued to be constrained
and market competition is intensifying in Japan, this business division isseeing increasing needs for systems
to be used to carry out services aswell as an expansion in the cloudcomputing market resulting fromcompanies’ preparations for theirBusiness Contingency Plans (BCP).
In response to these market conditions, the Company concentrated
on enhancing its cloud services (e.g.,
hosting services), proactively developing proposals that offer comprehensive solutions associated withthe transition from owning systems
to using systems, and uncovering
demand by strengthening businesssupport activities carried out by its
system engineers.
Domestic sales for the current term
were as follows: hardware sales increased by ¥215 million (4.3%) yearon-year, software sales decreasedby ¥366 million (11.1%), and sales
generated by maintenance contracts
and supply ser vices increased by¥81 million (2.5%). The increase inhardware sales was attributed to theeffects of the launch of new products and orders for large-scale projects, and the decrease in softwaresales was attributed to a decrease in
the number of new projects and adelay in the launch of new packaged
software. As a result, T&A systemsales were down by ¥156 million(1.9%), while access control systemsales increased by ¥144 million(12.4%).
Overall overseas sales decreasedby ¥263 million (3.7%). The sales ofAccu-Time Systems, Inc. in Nor th
America slightly increased and thesales of Horosmart S.A. in Europe
declined in terms of Japanese yen
due to fluctuations in exchange
rates, although sales increased on a
local currency basis.
As a result of the above, sales in thisbusiness division totaled ¥19,331
million, representing a decrease of
1.2% year-on-year.

Time management equipment
In Japan, this business division continued to struggle under difficult
conditions because the demand
structure has shifted from standard
machines to systems.
In this mar ket environment, theCompany concentrated on uncovering new demand by developing
and expanding new sales channels(e .g., Inter net and mail order s)
and strengthening sales promotion
activities, in order to enhance andexpand its customer base.
Overall domestic sales for the current term decreased by ¥250 million (7.5%) from a year earlier due
to weak sales in Japan and sluggish
expor ts to Asia. Sales for all of
Nor th America, Europe and Asia
also dropped. As a result, overall
overseas sales decreased by ¥26
million (2.1%).
As a result of the above , sales
in this business division totaled¥3,996 million, representing a decrease of 5.9% year-on-year.

SX-250PC-interface Time Recorder“TimeP@CK” Online seminar

Parking Systems
The Parking Systems business sector in Japan has been working topromote environmentally friendly
initiatives and to reduce the costs ofparking lot management (e.g., reducing energy consumption), as well as

5

ensuring safety and security to prevent crimes and accidents in parking
lots.
In response to these market conditions, the Company has, in cooperation with its Group companies inJapan, focused its efforts on improving commissioned management services by expanding and improving its
support centers to increase convenience for parking lot users as wellas providing parking lot owners andparking lot management companies
with parking lot information distribution services and video streaming
services for crime prevention purposes. The Company has also madeefforts to expand into new markets
for exclusive gate systems, toll roadsystems and lane control systems.
In Japan, sales of parking lot systemequipment during the fiscal year
under review decreased by ¥696
million (4.3%) year-on-year due toa decrease in the number of orders for large parking lot systems,
although medium and small parking
lot system projects remained strong.
Revenues from maintenance contracts and supply services increasedby ¥82 million (0.9%).
The commissioned managementbusiness by the Group subsidiar y
Amano Management Service Corporation expanded steadily and thenumber of commissioned parking
spaces increased by 21,500 (9.4%)
from the end of the previous fiscal
year.
Overall overseas sales increased by¥189 million (1.9%). Sales for North
America increased as Amano McGann, Inc. experienced a recovery.
Sales for Europe declined due tothe prolonged economic slowdown.

Sales in the Asian region declined as
sales in Korea decreased.
As a net result of the above, theParking Systems business division
provided sales totaling ¥42,208 million, an increase of 3.5% year-onyear.

Environment System Business• Environmental Systems:
Standard dust collectors, large
dust collection systems, pneumatic
powder conveyance systems,
high-temperature hazardous-gas
removal systems, deodorization
systems, and electrolytic water
generators• Clean Systems:
Cleaning equipment, dr y-carecleaning systems, and cleaning
management services

resources to where the demand isand focused on scaling-up its operations. The Company’s efforts included an increase in local staff, theestablishment of closer cooperation
with overseas Group companies,
and full-fledged business development in North America in order toboost sales of products and services
to businesses operating overseas.
The Company has also made efforts
to conquer new mar kets in thepharmaceutical, food and cosmetics
fields.
During the current term, domestic
sales of large-scale systems increasedby ¥117 million (2.1%), sales ofstandard dust collectors decreasedby ¥20 million (0.4%), and sales ofmaintenance contracts and supply
services increased by ¥248 million(7.0%) year-on-year by means ofacquiring overseas demand fromcompanies in Japan.
Overall overseas sales increased by¥712 million (38.5%) year-on-year
because Asian markets continued toremain strong.
As a result of the above, sales in thisbusiness division totaled ¥17,386
million, up by 6.2% year-on-year.

Environmental Systems
In this business division, movements
to reduce capital investment continued in Japan due to uncertainties
over the economy, while demandassociated with Japanese-affiliatedcompanies operating abroad remained steady.
In response to these changes in themarket environment, the Company
proactively shifted its management

6

FD-10

Clean Systems
This business division continued
to struggle in Japan under difficult
conditions caused by the impact ofprolonged corporate restraints on
cleaning management costs.
To cope with this market environment, the Company focused on providing proposals to improve efficiency
without compromising quality, which
will reduce total cleaning management costs. In addition, the division
worked to uncover new demand byproactively holding demonstrations ofmachines, launching new products, andproviding holistic solutions, including
peripheral cleaning work.

Analysis of Financial Condition(i) Assets, Liabilities, and Net Assets• Assets
Total assets as of March 31, 2013,
amounted to ¥109,476 million, up by¥5,998 million from the previous fiscal year-end. Current assets increasedby ¥2,987 million year-on-year. Thiswas chiefly due to a ¥1,166 million
increase in notes and accounts receivable—trade and a ¥1,118 million
increase in cash and bank deposits.
Fixed assets increased by ¥3,010 million year-on-year. This was attributableprimarily to a ¥2,176 million increase
in investment securities, a ¥591 million
increase in intangible fixed assets anda ¥500.7 million increase in lease assets.

Domestic sales of cleaning equipment during the fiscal year underreview decreased by ¥49 million(2.5%) year-on-year, and revenue
from maintenance contracts andsupply ser vices increased by ¥48
million (1.6%).
Overall overseas sales increased by¥235 million (15.4%) year-on-year.
Sales for Nor th America star ted
to recover thanks to new productlaunches and cultivation of markets
in Central and South America.

As a result of the above, sales in thisbusiness division totaled ¥7,374 million, up by 2.9% year-on-year.

• Liabilities
Total liabilities as of March 31, 2013,
amounted to ¥32,758 million, up by¥1,472 million year-on-year. Current
liabilities increased by ¥1,468 million
year-on-year. This was chiefly due toan increase of ¥859 million in othercurrent liabilities due to an increasein advances received and accrued
expenses as well as an increase of¥298 million in lease obligations. Fixedliabilities increased by ¥4 million yearon-year. The principal factors behind
this were an increase of ¥581 million
in lease obligations, despite a decreaseof ¥313 million in accrued retirement
benefits for employees.

an increase in retained earnings andan increase of ¥2,450 million in total
accumulated other comprehensive
income resulting from an increase inforeign currency translation adjustments.

• Net Assets
Total net assets as of March 31, 2013
amounted to ¥76,718 million, up by¥4,526 million from the previous fiscal year-end. This was primarily due
to an increase of ¥1,995 million inshareholders’ equity resulting from

Net cash provided by operating activities totaled ¥8,660 million. This
was attributable primarily to income
before income taxes amounting to¥7,333 million and depreciation andamortization amounting to ¥3,558
million, despite income taxes payments amounting to ¥3,443 million.

7

HM-500E(ii) Cash Flows
Consolidated cash and cash equivalents increased by ¥665 million fromthe previous fiscal year-end, to a totalof ¥26,587 million on March 31, 2013.
The status of each type of cash flowat the year-end and the underlying
factors are as follows.
(1) Cash flow from operating activities

million for the acquisition of intangible
fixed assets, and ¥1,118 million for
the acquisition of tangible fixed assets. These outflows more than offset
proceeds of ¥5,265 million fromthe withdrawal of time deposits and¥2,000 million from the redemptionof securities.

(2) Cash flow from investing activities
Net cash used in investing activities totaled −¥5,093 million. This was largely
due to expenditures of ¥5,763 million
for the placement of time deposits,¥2,000 million for the acquisition of
securities, ¥1,803 million for the acquisition of investment securities, ¥1,792(3) Cash flow from financing activities
Net cash used in financing activities
totaled −¥3,383 million. This waschiefly due to expenditures of ¥1,991
million for the payment of cash dividends and ¥1,173 million for the repayment of finance lease obligations.

Reference: Trend of cash flow indicators
As of Mar. 31, 2009

As of Mar. 31, 2010

As of Mar. 31, 2011

As of Mar. 31, 2012

As of Mar. 31, 2013

Equity ratio (%)

72.9

73.4

70.3

69.6

69.8

Fair value equity ratio (%)

58.8

64.7

59.3

56.9

62.3

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

24.1

17.1

31.4

50.2

34.7

Interest coverage ratio

200.7

250.6

275.2

158.1

207.7

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.

Outlook for Fiscal YearEnding March 31, 2014
During the fiscal year ending March
31, 2014, we forecast that theJapanese economy will continue torecover at a modest pace, as exports are expected to increase due
to growth in overseas economies,
including those of the United Statesand Southeast Asia, and the yen’s
depreciation and domestic demand
are expected to remain strong on
the basis of the trends of increased

public investment and improved
business and consumer sentiment.
Amid this business environment,
Amano Corporation and its Group
companies continue to emphasize
the following strategies: 1) emphasis
on Time & Ecology business fields,
and enhancement of core business;2) becoming a niche leader in thebusiness fields in which we excel; 3)ceaseless restructuring; and 4) management based on cash flow. In linewith these four fundamental strategies, we will pursue our consolidated
growth strategy on a global scale to8

ensure sustainable growth and thecontinual improvement of profitability with a view to maximizing thecorporate value of Amano Corporation.
The following business results areprojected for the fiscal year ending
March 31, 2014: net sales of ¥98,000
million, operating profit of ¥8,200
million, ordinar y profit of ¥8,500
million, and net income of ¥4,900
million. These projections assume
currency exchange rates of ¥95 to
the US dollar and ¥120 to the euro.

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.
Ever y effor t are made to identify
factors that may now or in the future pose a risk to the undertakingof business by the Amano Group,and these risk factors are then eliminated or otherwise managed in thecourse of business.
Forward-looking statements are current as of the date of the release of
these financial results (May 8, 2013).
(i) Impact on earnings due tochanges in the business environment
The Amano Group uses the unique
technologies and know-how it has
accumulated to provide customers
with high-quality products, services
and solutions, thereby gaining large
market shares in each sphere ofbusiness in Japan, Nor th America,
Europe, and Asia, and developing its
business globally.
In the year ended March 31, 2013,
the Time Information System business accounted for 72.5% of total
sales, and the Environment Systembusiness accounted for 27.5%. Before the deduction of unallocatedexpenses, the Time Information Sys-

tem business contributed 77.4% tooperating profit, while the Environment System business contributed
22.6%. In terms of weighted averagesales over the last five years, theTime Information System businessaccounted for 73.0% of total sales
and 75.8% of operating profit.
One future r isk factor is that if
market expansion is forecast 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 its business performance.
(ii) Fluctuations in exchange rates
The Group engages in businessactivities on a global scale and has
production and sales bases overseas.
In view of this, the Group’s businessresults may be impacted by fluctuations in exchange rates when theproceeds for overseas transactions
are converted into yen.

9(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.
In view of this, the Company has
strengthened and thoroughly implemented security control measures
based on the Information Security
Management Rules. Specifically, theCompany has implemented measures to protect confidential information (e.g., encr ypting hard disk
drives and external media as wellas periodic staff training through elearning) to ensure that a foolproof
structure is in place. Nevertheless,the occurrence of an unforeseen
situation that results in access toor leakage of confidential information as described above could havean adverse material impact on theGroup’s business performance due
to factors such as loss of confidence.

Issues to Be Addressed
The Company will take the following steps
to achieve the goals set out in its new medium-term business plan.

1) Time information systems•Information systems business
Given the continuing efforts by the laborauthorities to more strictly monitor unpaid over time and long working hours(overworking) in order to eradicate thesepractices and an increasing number of industrial court cases, there is strong potential
demand among companies for T&A systems,
which aim to establish and build labor time
management systems to optimize business
operations by reducing working hours, etc.
and to implement measures for compliancetoward appropriately managing working
hours. However, market conditions remain
tough, reflecting prolonged reductions in
information-related investments, intensifying
competition in the market, and other factors. Meanwhile, the business environment
in which this segment operates has seena significant shift from companies owningsystems to simply utilizing them, with anincreasingly prominent movement in theindustry toward cloud computing.
In this market environment, we will focus on
spurring latent demand in our solutions business, which is targeted at medium and large
companies, by strengthening our competitive
advantage with enhanced software functions
and through cooperation with the humanresource and payroll systems of CREO CO.,LTD., as well as reinforcing our marketing
structures with collaboration between sales
staff and systems engineers. In addition, we
will actively make proposals for comprehensive solutions, including hardware, software,and cloud services, by strengthening allianceswith Group companies in Japan in order to
respond to the changes of the times.
To enhance the profitability of this business,
we will strictly manage revenue from our solutions business targeted at large companies,
enhance our project management systems,
cut costs by standardizing system software,and expand sales of standard software pack-ages to small and medium-scale businessestablishments, so as to boost earnings capacity.
Overseas, Accu-Time Systems Inc. will continue to scale up our operations by launching new products to bolster their alreadydiversified range of time information management terminals, in order to fully utilize
their blue-chip customer base. In addition,
we will work on establishing a global supply
system and reducing development costs by
expanding our hardware lineup. As a meansof expanding our business, we will also extend our sales channels for software products from Horosmart, S.A. (France) acrossEurope and reinforce our organizational
structures toward globalization.

•Parking systems business
The Parking Systems business sector has
been working to promote environmentallyfriendly initiatives and to reduce the costs ofparking lot management (e.g., reducing energy consumption), as well as ensuring safety
and security to prevent crimes and accidents
in parking lots. Thus, the environment surrounding the Parking Systems business has
been changing.
In this environment, the Company will, in
cooperation with its Group companies inJapan, focus its efforts on improving commissioned parking lot management services by
expanding and improving its support centers
to increase convenience for parking lot users
and provide parking lot owners and parking
lot management companies with parking lot
information distribution services and video
streaming services for crime prevention purposes. The Company will also make efforts
to expand into new markets for exclusive
gate systems, toll road systems and lane control systems.
Overseas, we aim to expand our businessand establish ourselves as the top manufacturer of parking systems in the North
American market, leveraging the strengths of
Amano McGann, Inc. to further boost sales
by building closer relationships with customers. In Europe, we will step up our sales of
low-priced system products, focusing on the
UK and the three Benelux countries, in orderto build stronger operational foundations. In
Asia, we will further expand our parking lot
management business, focusing on Korea.

102) Environment systems business•Environment systems
In the Environment System business, theincreasing trend in capital investment by
Japanese-affiliated companies in the Asianand North American regions continues, andit has become apparent in the business environment that demand has shifted from Japanto the rest of the world.
In this market environment, we will continue
to shift our management resources to markets where demand is growing in order toappropriately exploit expansions in demandin the Asian and North American markets.
Our efforts include the bolstering of systems
to sell products and services to businesses
operating overseas, the establishment ofcloser cooperation with overseas Group
companies, and the expansion of productionin China. In addition, we will strengthen ourcapability to develop new products with lessenvironmental impact, launch new products
to match the reduction in size and the diversification of machine tools, and enhance ourlineup of dust-explosion-proof technologies
to raise safety standards. We also aim tospur latent demand by expanding our maintenance business and to further strengthen
profit control for each site in order to boost
profitability.

3) Human resource development
Recognizing that people are the key management resource in the operation of ourbusiness, we have positioned human resource development as a priority issue andwill focus on developing employees who
have no fear of change and are willing tomeet challenges.

Business Activities

Time Information Systems
Enhancing Competitiveness in the Market
for Medium to Large-scale Companies!
Business Alliance with CREO Co. Ltd.
March 2013, Amano acquired approximately 30% of CREO Co. Ltd., (CREO
hereunder) and thereby CREO has now
become an equity-method affiliate. This equity participation is aimed to enhance oursolution offerings by linking CREO’s HR /Payroll and Financial Accounting systems
with Amano’s T&A systems and throughproduct cross-selling we will endeavor to
expand our share in the market for medium to large companies where CREO
already has its strengths.
In addition, we have commenced hosting
services for our “TimeAsset” system, which
is a T&A package system already used bymany large-scale companies. With this andthe “CYBER XEED”, which is already offered, Amano has a full line-up of cloudservices for the small / medium companies
up to the medium / large-scale companies.
We will continue to offer holistic solutions
for the “using-instead-of-owning” market.
Amano T&A System

On Premises
Cloud NEW

Collaboration
CREO HR/PR System
Financial Accouting System※ZeeM is a registered Trademark of CREO

Parking Systems
Expanding the Business Domain!
Consigned Management Services, Exclusive Gates
The business domain for Parking Systems
is expanding. In order to improve user convenience of our consigned management
services, with the cooperation of Amano
Management Services Corp., we are enhancing our “Customer Support Center”
which offers their services 24 / 7 to copewith troubles such as loss of tickets. For
parking lot owners and operating companies, we deliver information via the Internet
such as parking utilization and video streaming for security. We also offer LED lighting
and solar power generation for energy efficiency. These services are all based on our

keywords Safety, Security, and Ecology.
In the exclusive gate market, orders for security gates are increasing. These gates areused in factories and logistic centers to control vehicle movement by restricting entry
or logging the entries and exits of vehicles.
In addition, Amano has developed an Automatic Toll Collector aimed to improvethe efficiency of toll collection at toll roads.
On-site operation has already begun. We
will continue to expand this business domain to improve the infrastructure of ourmotorized society.
Automatic Toll
Collector built into
the tollbooth of ahighway

The “Customer Support
Center” which provides kindand courteous services.

Environmental Systems
Expanding Sales of Standard Dust Collectors!
Launched 4 New Products
In order to expand the sales of standard
dust collectors, we have launched 4 new
products, the stainless steel “SP” series
for food and pharmaceutical factories, themobile fume collector “FD-10”, the energy& space saving pulsejet dust collector “PiF”
series, and a self-cleaning electric mist collector the “EM-SCII Lt”. We will continue
to offer high quality, safe & secure products,
which are efficient and environmentallyfriendly.
In addition, we held a New Product Showin 6 regions across the nation (Sendai,
To k yo, N a g oya , O s a k a , H i r o s h i m a ,Nagasaki) where we introduced and demonstrated 9 new products, consisting of
dust collectors and cleaning equipment.
Many customers and distributors came tothe venue where they were able to havea first hand experience in using the new
products.
9 New Products in Full Array
New Product Show
Dust Collectors & Cleaners

New dust collectors and cleaning equipment all brought together in one show

Energy & Space saving Pulsejet dust
collector the “PiF” series

11

Clean Systems
Launching a New Product for Carpeted Floors!
Increased Orders from Offices and Hospitals
November 2012, we launched a new carpet
cleaner the “Trailstar” which uses high-speed
rotation technology deriving from conventional polishers.
The “Trailstar” utilizes micro vibration, which
occurs during rotational movement (Oscillation). The oscillation rubs and beats the carpet lifting the soil achieving powerful cleaning.
It is easy to use and now anybody can enjoy
cleanliness of a professional standard.
Furthermore, March 2013, we launched the
low-noise cordless vacuum cleaner the “JV-2e”.
As a battery powered cleaner, the “JV-2e” isamong the highest performers. The powerful suction can remove fine dust and paper
clips deeply embedded in the carpet andwithout the power cord, it is agile and easy
to use in tight spaces. It is widely used in offices, hospitals, health facilities for the elderly,
hotels, commercial facilities to name a few.

Carpet Cleaner“Trailstar” AAP-140

Commercial Cordless
Vacuum Cleaner “JV-2e”

Amano USA Holdings, Inc.
AMANO CINCINNATI, INC.
The ACI time division was pleased to release a new fingerprint terminal at the endof 2012. This new terminal (FPT-80) delivers added features like a full color display,view hours at the clock, department transfer at the clock, view previous punches toname a few. This unit is combined with ourTime Guardian software to create a perfecttime and attendance solution for small to
medium sized business.
The implementation of the business tobusiness dealer portal has proven to bevery effective in reducing the amount ofadministration required in handling dealer
orders. This dealer self service tool allows
order entry directly into our system. Eachdealer has a secure log in and in addition toplacing orders dealers can get marketing information, download manuals, print productbrochures, look up part numbers, productpricing, etc.
The TS-3000i automatic time sync web
clock is the benchmark in the industry andwas designed mainly for the financial market and the OATS compliance rule thatwas imposed by FINRA. We have many
major financial institutions already using
this product to meet the compliance requirement. Our success with this producthas expanded to other markets like healthcare, transportation industry and others
that require exact time synchronizationand stamping. Reporting is one of the mainfeatures of this product. A time synch utility
software comes with this product but when
deploying many units in one location we offer our ATVS software to manage centralized reporting. This
software allows a user
to get email or text
alerts when a single
unit goes off line. Thisis critical in keeping asystem compliant.

ACCU-TIME SYSTEMS, INC.
Worldwide sales for ATS grew in 2012 as
we strengthened our global growth strategy
and expanded our international channel relationship network. Additionally, we began
reinforcing our global support capabilities
with a new service provider partnershipprogram (SPPP). The program will improve
our ability to offer enhanced maintenanceprograms and installation services throughout the world. The SPPP is part of our plan
to enhance our professional services offerings. The SPPP will be an integral program,
now and into the future, as we evolve ourbusiness into a stronger recurring revenue
model.
As part of that recurring revenue evolution,
we also introduced a terminal rental program within North America. The initial success of the rental program encourages us toexpand the offering in markets outside theUSA. This presents some challenges but we
continue to explore how to best expand

this very well-received program with ourglobal partners. Its success is closely tied
to the global trend toward Software-as-aService (SaaS) and hosted services. ATS
also introduced new service programs andintegration software in 2012. These new
products offer our reseller partners unparalleled opportunities for new business. As ourreseller partners succeed, so does ATS.
As part of our core business ATS continued
deploying terminals with its partners in highprofile installations around the globe. We
have a strong presence and channel within
North America and our base of international partners is growing. Our products,
as a result of our growing channel, arenow being used by a large global facilities
management company, a school system in
Dubai, large enterprise resource planningapplication providers, and international hotel chains.  
Planned resources in 2012 were spent on
developing a new series of next-generation
workforce management terminals called the
Universal Series. Introduced in 2012, theUniversal Series terminals allow our partners to offer more graphic-intensive functions to improve the user experience. Withpowerful processors, large color touch
screens, and multiple operating systems thisnew series allows our workforce management software partners to develop new
applications. The series also allows them tooffer touch-enabled software with modern
user interfaces.
ATS also began development of new standalone and integrated biometric technologies
that will be introduced in 2013. In responseto changing market needs ATS expanded
its software development and integration
capabilities in 2012. As part of that expansion we began offering new terminal management software that allows cloud-based
time & attendance and workforce management applications to easily connect to our
terminals. As the year ended we were in
the midst of several new software/hardware
solution deployments for enterprise-level
customers. We expect those opportunities
to grow around the world for us in 2013.
These products are now ready for deployment andwill begin to
impact revenues in Q3
2013 andbeyond.

Amano McGann, Inc.
GeneralThe U.S. economy was on unstable groundfor most of the reporting year due to several events including healthcare reform, thePresidential election, the Eurozone debt
crises, unusual environmental disturbance,and our own Fiscal Cliff. Through all of thisAMI was able to improve both top andbottom lines through improved efficiencies
and strong results from our direct branch
offices, distribution partners, and our specialized teams including Product Development, National Accounts, Vertical Markets,
and Capture Teams. Compliancy driven

12

software upgrades were also a major contributor to this years results.
Amano McGann has continued to show
strong leadership in the parking industry
during these times by maintaining a strong
customer base, pushing the envelope to
win new business, incorporating solid strategic alliances, and continuing new productdevelopment.

Amano McGann Expands Knowledge
and Celebrates the Past while Looking
to a Successful Future
Amano McGann held its 80-30-5 Sales
Summit and Celebration this past fall in
Scottsdale, AZ. AMI personnel and distribution partners joined forces to get up to
speed on the corporate vision, improved
sales techniques, and the latest products including a first glimpse of the OPUS productline and new strategic partnerships.
Guests kicked off their stay with a welcome
reception allowing for mingling and networking with fellow industry professionals
across the United States, Canada, Japan andSouth Africa. The second night’s events included an award ceremony focused on sales
awards and performance in 2011, giving
well deserved recognition to top performing branch offices and distribution partners.
The anniversary banquet was a solid closing to a valuable three day event. The
evening was dedicated to reflecting on themilestones that have led Amano McGannto where it stands today and a future that
continues to shape the parking industry.
Amano McGann was privileged to have Mr.
Kaoru Haruta, Mr. Izumi Nakajima, Mr. Terry McGann as well as other VIPs, speak inhonor of 80 years inbusiness for Amano,
30 successful years
for McGann and 5
years in business as
an industry leader for
Amano McGann.

Product Development – OPUSolutions™
Amano McGann’s Engineering department
and Software Development team havebeen working diligently on a new wellorchestrated, comprehensive line of products that address the unique needs of theowner, operator and the parking patron.
The new OPUS line works to seamlessly
connect current assets with future innovation all tied together through OPUSuite™
cloud based software.
OPUSolutions includes:• Universal Pay Station with optional in-wall mount• Entry Terminal• Exit Terminal• Credit Card Only ExpressParc• Point of Sale Fee Computer• Universal Reader• OPUSuite SaaS Software

Every hardware device encompasses a consistent method of credential handling, voiceannouncement, TCP/IP communicationand modern design for a unified look andfeel. OPUSolutions will be unveiled to theindustry at the 2013 International Parking
Institute Conference and Expo and will beavailable for implementation early next year.

IPI 2012 Best in Show
Amano McGannclaimed another“Best in Show”
award at the 2012
International Parking Institute Conference and Expo,the largest industry
trade show in the
country. AMI developed a market focusedbranding strategy in 2012, beginning withthe launch of the new website, then spanning into advertising and ultimately laying
the design and focus for the 2012 IPI trade
show booth. Eight pods were displayed
focusing on products and services specificto each of the following markets: airport,
education, event, healthcare, hospitality, municipal, office and retail all supported by the
iParcProfessional Software Suite displayedon the center structure.

Strategic Alliances
Bridging the Gap Between On & OffStreet Parking
AMI has partnered with Metric, the United
Kingdom’s leading on-street, multi-spaceparking meter provider, delivering a combined solution for both on and off-street.
This integrated solution provides operatorswith rate management, consolidated reporting and statistical
data for superior audit control
and management while allowing patrons the convenience of
paying by phone, city card, cash,
credit or debit card.
The alliance between Amanoand Metric will enhance revenue
collection and streamline audit
trails, giving operators a morecomprehensive view of theirbusinesses without manual calculation.

Smart Parking for Smart Cities
Amano McGann has collaborated with
Streetline to deliver next generation parking
automation solutions for parking operators,
municipalities and universities. Under the agreement,
Amano and Streetline
will jointly sell a fully integrated package combining
market-leading automationand signage equipmentwith award-winning sensing technology and smart
parking applications. The
joint Amano/Streetline
solution for off-street garage and lot operators will

integrate real-time data from Amano with
Streetline garage and consumer applications,providing both operators and consumers
rich new data to enhance revenue management and consumer services.
For customers managing on-street parking
the joint solution will leverage Streetline
sensor network technology and applications
with Amano’s on-street parking management capability and electronic signage.

Success Story
Amano McGann Wins Kansas City
International Airport Contract
Amano McGann has gained great successin the airport market supporting over 60
installations across North America throughan extensive sales, service and support
network comprised of branch offices, dedicated distribution partners, and U.S.-based
software development and manufacturing
facilities. A great example of this success isthe recent contract award to install an advanced parking access and revenue control
system at Kansas City International Airport.
This contract includes Amano McGann’s
AMG equipment, iParcProfessional webbased facility management software and an
integrated Frequent Parker Loyalty program.
The solution is part of a massive modernization effort that will improve customer
service, increase throughput and reduce
administrative costs through automation.
This combination of hardware, software andautomated loyalty program will supercharge
airport efficiency, enhance
profitability andensure airport
travelers get in,get parked andexit the facility
more quickly.

AMANO PIONEER ECLIPSE CORPORATION
2012 was a successful year for Amano
Pioneer Eclipse (APEC), with global sales
growth of 17%. This positive sales trend
started mid-year 2010 and is the result of
on-going business improvements being
made by our sales, operations, and product development teams. While this threeyear plan is not yet complete, it has shown
positive results in the APEC business, beginning with the improvement of the US sales
team. In 2012, several US sales territories
were upgraded by hiring new sales professionals who have industry experience andsuccessful track records in their respective
geographies. The restructured US territories produced 46% sales growth in 2012.
Operational improvements within the
APEC business are ongoing with significant
improvements achieved in the customer
service and shipping/receiving departments
in 2012. Overall efficiencies are up in all
departments, resulting in a 55% increase insales per employee and a decreased SG&A
spending rate by more than 10% (as a percent of sales).
APEC is also committed to driving sales
growth through new product development
and has established a business goal to have13

one-third of its annual turnover producedby sales of products introduced within thelast 36 months. In 2012, APEC reacheda product vitality score of 35%, thereby
exceeding its goal. 2012 saw the launchof several important products in the core
APEC business of floor care chemicals andequipment. The launch of the 300BU battery burnisher places APEC at the forefrontof battery burnisher development with theintroduction of Steady One™ technology,
a design that improves the burnish performance of the machine while also extending
battery run time. Product development in2012 also focused on several new chemical
products, including a new high performancefloor finish (Equinox HG™), fast acting
floor stripper (Flash 55™), and a deep
scrub floor cleaner (ReBoot™). There are
exciting new product launches planned forthe future, including the 300BU30X and its
patent pending X2™ technology.

2012 also saw the continued development of APEC’s dust and mist collection
business. Originally founded as Amano
Environmental US (AEUS) in 2011, thisbusiness underwent a name change in 2012
to better reflect its geographic reach. Now
known as Amano Environmental America’s(AEA), this business has expanded beyond
its original product offering of small dust
and mist collectors for US based lathe and
CNC manufacturers to now include large
dust collection and material handling systems custom designed for industrial factories across North and Latin America. AEA
sales grew 345% in 2012 and are expected
to exceed 400% in 2013. This business is
growing quickly and is well on its way to becoming an important contributor to APEC’s
future success.

Amano Europe Holdings, N.V.
Amano Europe, N.V.
This fiscal year, Amano Europe continued
to optimize the organization in order toserve better in its core mission to build
an indirect sales organization for parking
and time solutions in Europe, Middle East
and Africa, the primary markets of Amano
Europe. For parking solutions also Malaysia,
Hong Kong and Australia were served.
Astrow WEB, the pan-European time andattendance solution for small and medium
sized companies, has been introduced as anext version in the Astrow series. This full
web solution offers the technology base forcloud based services, a direction Amano
Europe will pursue and continue to invest
in the next years. Close cooperation withresellers, understanding their market needs,
pro-active product management, excellent
support and 20 years of accumulated experiences are the key the success.

X-Parc , the parking solution of Amano
Europe, based on barcode technology andan open software platform, is now installedin more than 20 countries. Amano Europe
entered into new distribution agreementswith resellers in France and the UK. It is theresult of the policy to expand its distributer’s network rapidly.
The ongoing shift froma product centric toservice centric businessmodel is the second
core mission from
Amano Europe and it
is reflected optimization of the organizational structure, thecompetences and the
products and services..

Horoquartz:

In this fiscal year, Amano Parking Europe,
the R&D center of X-Parc, has shifted its
operation from development towards
services. Apart from development, Amano
parking Europe now also operates as the XParc competence center as such taking careof the industrialization and the third line
support.

Scopus Omnibadges
With Sogedex Identification Solution acquisition in 2011, allowing Scopus Omnibadges tobecome a major actor in this field in France,
the company has gained a few thousand of
new customers, many of them been quite interested in the company core business : cards
printing and personalization.
Therefore, Scopus Omnibadges have invested
in a sophisticated new offset press that wasup and running in September 2012. Production output is multiplied by 5 and production
cost divided by three, which is a tremendous
change for this part of the business, alreadythe most profitable of the company.
With this new piece of equipment, printed
quantities have been almost doubled in thelast quarter compared to the previous year,
some of them being cards that would havebeen subcontracted before.
At the sametime printing
quality has
been tremendously
improved.

AMANO TIME & PARKING SPAIN, S.A.

14

The FLAP SYSTEM meets the street
and goes flapless! Introducing the new“FLAPLESS LPR (License Plate Recognition) SYSTEM”
As cars continue to increase year by year,
securing a parking place in the city center isbecoming a major problem. The Government is taking initiative to not only build
new off-street parking facilities, but also
working to expand and to build new onstreet parking, and to develop parking facilities using a portion of residential areas. Inview of this situation, Amano Korea Corp.,(AKC) has developed a new on-street parking system, which has high potential.
The “FLAPLESS LPR SYSTEM” breaks thenorms of conventional on-street parking
and addresses the issues, which could not
be solved before. We are anticipating great
potential for this system.
System Unified Network Configuration
Unified Management Center

ITS link
PDA link
LPR
Management

CCTV
Management

Parking
Management

Internet link

Communications Network
Local
Management
ServerLocal
Management
Server(parking information provide
at local goverment home page)

Local
Management
ServerLocal 1

Local 2

Local nLocal 1
Parking lot

Local 2
Parking lot

Local nParking lot

1. The LPR system incorporates wideangle cameras with built-in security
functions enabling the collection of
parking fees!
Flaps of the conventional flap systems werereleased once the user settles their fees at
the unmanned pay stations. With the use of
LPR technology, flaps were no longer needed and the systems evolved to an on-street
system. And now the system has evolved
even further. The built-in wide-angle camera not only recognizes number plates but
it also records a video of the parking space.
There is no need to install a separate CCTV
for security.
FLAPLESS LPR DESIGN
170

Call button
Speaker

NO.1 LPR(Camera + LED)1060

For the purpose of always satisfying 300
customers we have in our territory andkeeping high reputation in the market, it isneedless to say that one of the key things isthe service quality provided by our technicians.
In Amano Time & Parking Spain, one
technical manager and four technicians areworking and their service ability and quality
are highly appreciated by our customers.
We have three service bases, which are located in Barcelona, Madrid and Malaga, andthey take care of 300 customers in Spain,
Portugal and Andorra with some subcontractors. (Please, see the map of the Iberian
Peninsula.)
Recognizing the importance of the service
quality, in the year of 2012 we reinforced
technicians’ service quality by various training and meetings. The regular meeting,at which all our technicians from threebases assist, was organized twice, and thetelephone meeting among three bases has
been held every Monday. Thus, all our technicians, by sharing customer requirements
and exchange opinions, not only improvetheir quality but
also have thesame idea, strategy and market
information.
We will continue
trying to EXCEED
today’s level.

Amano Korea Corporation

1200

In 2012, despite a more difficult economic
environment in Europe and France, Horoquartz observed a growth of its business.
Access control and Security Solutions haveexperienced a significant increase in turnover, surpassing the market growth. For
instance, some major contracts have beenclosed with ministries such as Defence Department and Police Department. For thesecontracts Horoquartz has demonstrated its
ability to manage high security smart cards
including a specific encoding applied for all
government applications. The time and attendance solutions market is now mature
in France. Sales of Horoquartz workforce
management solutions in SaaS mode are
steadily increasing. In order to continue
its growth in this market and confirm its
leadership, Horoquartz concluded two key
partnerships with a leading supplier of MES
solutions (Manufacturing Executing System)
and with a software company which specializes in the field of Human Capital Management solutions. For better efficiency, Horoquartz reorganized its R&D Department
through a vertical organization, structuredby the offered solution. This approach is accelerating the development and release of
new solutions. Four major innovations werelaunched at the end of 2012: a new versionof eTemptation with an entirely renewed
full web user interface, a solution for mobility enabling employees and managers to use
the application on smartphones and tablets,
a data warehouse solution to store all T&A
information on the long run, a new graphical supervision module foraccess control. Horoquartz
also continued the development of its ecosystem andrenewed its partnership with
Oracle and Microsoft, obtaining a gold certified partner
status with these two companies.

Amano Parking Europe:

Select button
E-Card Reader
NO.2 LPR(Camera + LED)

2. In order to enable constant LPR, wehave developed a special 2-way LED
lighting! -Energy saving and no discomfortLED lighting is a necessity for the LPR andthe security video to function properly atnight. However, many pedestrians find the
flashing red 730nm LEDs irritating and discomforting, so we added an 850nm LED,
which is in the infrared spectrum almost
invisible to the human eye. During the night,
the invisible 850nm LED will be in constantoperation and the 730nm will activate only
upon detecting a vehicle.

3. We have developed a camera modulewith two image sensors loaded on asingle CPU, reducing the required number IP channels.
The conventional method required 2 IP
channels to monitor 2 parking spaces andthus 2 network cables were required. Inevitably, it was costly and the installation
complex. This new camera module can load
2 image sensors on a single CPU and only
one IP channel is needed, instead of using 2
cameras on 2 channels.

4. Adopted the daisy-chain method on
our network cabling!
In order to reduce costs arising from complicated network cabling, AKC has adopted
the daisy-chain method (serial) instead of
the conventional parallel communication
method and thereby simplifying installation.

5. Settle the fees either at the central
pay stations or at the FLAPLESS LPR
unit.
Parking fees can be paid either at the central pay stations, which are installed on thestreet or pay at the FLAPLESS LPR unit.
The user no longer needs to go to the central pay station. In addition, the FLAPLESS
LPR will give easy audio guidance whenchoosing one of the two parking spaces itmonitors.
At AKC we are always seeking to develop
unique products, such as the aforementioned, which separates us from our peers.
In addition, we take into consideration the
merits for the Flapless LPR owners. It is
designed so that advertising logos can beplaced on the top part of the Flapless LPRs,
which could be an extra source of income
for the owner.

Specifications are as follows:
On-street LPR Camera specifications
CAMERA
2 Mega-pixels (SONY CMOS)MONITORING CAR SPACE OneO N S T R E E T C A M E R A Dual camera sensors per control module
CONFIGURATIONCAMERA CONNECTION Daisy-chain maximum 10
DATA TRANSFER
Maximum 100M TCP/IP
Ethernet In/Out Power In/Out Separate AC
INTERFACE
power supply
1.3 Mega-pixels 30FPS Video transmission (15FPS
VIDEO TRANSFER
per camera)
LPR METHOD
Parking space recognition device / VideoFee settlement processing after receiving fee
FEE SETTLEMENT
calculation results from host system. For cashless(credit cards) settlement only
VEHICLE DETECTION
Motion & LPR algorythm
INTERCOM
Bidirectional TCP/IP Transfer
Mounted peripher y to the camera with IR
LED LIGHTING
LED(Dimming
SECURITY CAMERA
Synchronized (shared NVR)
EXTERIA DESIGN
Pole TypeThe Flap System was introduced in Korea
from Europe and Japan around the year
2000. It was installed and operated for awhile but due to continuous unlawful exits
and ill-mannered drivers, the system soon
became unpopular labeled as failure. The
Flapless system developed by AKC, accommodates all the deficiencies at the time andhas successfully improved the system to aneffective on-street system.
In addition, this system can operate in any
country outside Korea, such as the U.S., Japan, and China, just by changing the recognition module. AKC has already completed
the basic developed for the U.S., China
and Vietnam. The Vietnamese version canalso recognize motorcycle plates. This will
strengthen our alliance within the Amanogroup and will enable us to deploy a worldwide business strategy.
To meet the responsibilities as an industry
leader, AKC will continue to invest in human resource development and strive forfurther growth without being complacent.

Amano Time & Air Singapore Pte. Ltd.
Access Control Business in Philippine
is expanding.
ATAS has been supplying the access control
systems to all over the South East Asian
countries. Among those countries, Philippine
market is recently very active.
Many Japanese companies are moving into
Philippine to establish their manufacturingbases, attracted by low labor cost and English
speaking personnel. However due to the public safety issue, the strict access control system
is always required. And with this background,
we have a lot of inquiries for our own access
control system, “iAccess”.
“iAccess” is the scalable access control solution from single door to thousand doors. Especially, “AMANONET” is considered as thelargest scale solution. (Maximum 3,000 doors/ 300,000 Tag holders)
In year 2013, ATAS has installed this“AMANONET” system to Japanese camera
manufacturer’s new factory in Philippine. They
have total 81 doors / 5,000 tag holders, and15

we have achieved the strict access control, theinterface to other supplier’s human resource
system interface, automated access rightchange, and so on. Other than this project,
ATAS has received the inquiry from a Japanese printer manufacturer for the system together with finger print reader, and currently
this project is ongoing.
In Philippine, ATAS has a dealer, “Daniel
Merchandising” who has a large sales network
all over Philippine.
Together with Daniel
Merchandising, we
expect the access
control business in
Philippine will be expanding further.

AMANO Corporation and Subsidiaries

Financial Highlights
For the years ended March 31, 2013 and 2012.

Yen in millions and U.S.dollars in thousands, except per share amounts- See Note 5 to the Consolidated Financial Statements.

Thousands of U.S.
dollars (Note 5)

Millions of Yen			2013

2012

2013

For the years ended March 31:
Net sales............................................................

¥90,295¥88,147$960,585

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

3,986

2,415

42,404

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

¥52.04¥31.52$0.554

Cash dividends per common share......................

26.00

26.00

0.277

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

¥109,476¥103,478$1,164,638

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

40,14938,630427,117

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

76,71872,192816,149

Time information systems...................................

¥19,331¥19,569$205,649

Time management equipment.............................

3,996

4,245

42,511

Parking systems.................................................

42,20840,794

449,021

Environmental systems.......................................

17,386

16,374

184,957

Cleaning systems................................................

7,374

7,165

78,447Per 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 ¥94 = US $1, the rate prevailing on March 31, 2013.
-See Note 5 to the Consolidated Financial Statements.

Net Sales

Net Income(Millions of Yen)

(Millions of Yen)

100000

4500

90000

4000

80000

Net Income Per Share
(Yen)

60

50

3500

70000

40

3000

60000

2500

30

50000
2000

40000

1000

20000

10
500

10000
0

20

1500

30000

'09

'10

'11

'12

'13

0

'09

'10

'11

16

'12

'13

0

'09

'10

'11

'12

'13

AMANO Corporation and Subsidiaries

Consolidated Balance Sheets
As at March 31, 2013 and 2012.			

Millions of Yen

ASSETS

Thousands of U.S.
dollars (Note 5)

2013

2012

2013

¥29,175
1,241¥28,057
1,075$310,372
13,202

24,920(177)
24,743
6,698
1,236
2,161
65,25423,754(128)
23,626
6,190
1,447
1,871
62,266265,106(1,883)
263,223
71,255
13,14922,990694,191Land..................................................................
Construction in progress.....................................
Total property, plant and equipment...............

27,995
18,822
5,331
52,148(36,535)
15,613
7,167
206
22,986

27,51918,397
3,907
49,823(34,673)
15,1507,122
104
22,376

297,819200,234
56,713554,766(388,670)
166,096
76,245
2,191
244,532

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

4,679
1,363
1,397
1,042
8,481

4,678
1,840
347
1,025
7,890

49,777
14,50014,862
11,08590,224

Investments and other assets:
Investments in unconsolidated subsidiaries and affiliates........
Investments in securities....................................
Leasehold and guarantee deposits.......................
Deferred tax assets.............................................
Other assets.......................................................
Less allowance for doubtful accounts..................
Total investments and other assets..................

1,863
4,726
1,154
1,740
3,755
(483)
12,755

442
3,832
1,070
1,853
4,205
(456)
10,946

19,81850,277
12,276
18,511
39,947(5,138)135,691

Total.............................................................................

¥109,476¥103,478$1,164,638

Current assets:
Cash and bank deposits......................................
Marketable securities..........................................
Notes and accounts receivable:
Trade..............................................................
Less allowance for doubtful accounts...............
Inventories........................................................
Deferred tax assets.............................................
Other current assets...........................................
Total current assets........................................
Property, plant and equipment, at cost:
Buildings and structures.....................................
Machinery and equipment..................................
Lease assets ......................................................
Less accumulated depreciation..........................

The accompanying notes are an integral part of these statements.

17

Thousands of U.S.
dollars (Note 5)

Millions of Yen

LIABILITIES AND NET ASSETS

2013

2012

2013

Current liabilities:
Trade notes and accounts payable.......................
Short-term bank loans........................................
Lease obligations................................................
Accrued expenses...............................................
Accrued income taxes.........................................
Other current liabilities.......................................
Total current liabilities....................................

¥11,038
197
1,163
5,366
1,879
5,462
25,105¥10,386
169
864
5,183
2,148
4,887
23,637$117,426
2,096
12,372
57,08519,98958,106
267,074

Long-term liabilities:
Long-term loans payable.....................................
Accrued retirement benefits to employees............
Long-term accounts payable...............................
Lease obligations................................................
Deferred tax liabilities.........................................
Asset retirement obligations................................
Other long-term liabilities...................................
Total long-term liabilities................................

1,244
2,671
201
3,134
247
17
139
7,653

1,291
2,984
223
2,552
302
16
281
7,649

13,23428,4152,138
33,340
2,628
181
1,479
81,415

18,240–19,56749,386–
18,24019,56747,391

194,043–
208,160
525,382(3,720)83,473(3,719)81,479(39,574)
888,011317(7,340)(7,023)(179)(9,294)(9,473)

3,372(78,085)(74,713)

Minority interests in consolidated subsidiaries.....

268

186

2,851

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

76,71872,192816,149

Total.............................................................................

¥109,476¥103,478$1,164,638

Net assets:
Shareholders' equity:
Common Stock
Authorized- 185,476,000 shares
Issued:March 31, 2013 - 81, 257, 829 shares.............
March 31, 2012 - 81, 257, 829 shares.............
Capital surplus...............................................
Retained earnings ..........................................
Treasury stock at cost, 4,662,695 shares in 2013
and 4,661,851 shares in 2012 .........................

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

The accompanying notes are an integral part of these statements.

18

AMANO Corporation and Subsidiaries

Consolidated Statements of Income, andConsolidated Statements of Comprehensive Income
For the years ended March 31, 2013 and 2012.		

Consolidated Statements of Income
Thousands of U.S.
dollars (Note 5)

Millions of Yen

		

2013

2012

2013

Net sales ......................................................................
Cost of sales.................................................................
Gross profit....................................................
Selling, general and administrative expenses...............
Operating income...........................................
Other income ( expenses ) :Interest and dividend income .............................
Interest expense ................................................
Equity in earnings (losses) of affiliates ...............
Foreign exchange gain (loss) ..............................
Gain on sale of fixed assets ................................
Loss on disposal of fixed assets ..........................
Loss on sale of fixed assets ................................
Gain on sale of investments in securities ............
Loss on write-down of investments in securities..
Impairment loss on fixed assets..........................
Other, net .........................................................
Income before income taxes and minority interests
Income taxes :Current..............................................................
Deferred............................................................
Income before minority interests.....................
Minority interests in net income of consolidated subsidiaries.....
Net income....................................................

¥90,295
50,52839,76732,4387,329¥88,147
49,34638,801
32,884
5,917$960,585
537,532
423,053
345,085
77,968

176
(42)
(48)
190
7
(42)
(2)
2
(245)
–
8
7,333

158
(38)
37
(70)
5
(24)
0
–
(539)
(87)
151
5,510

1,872
(446)
(511)
2,021
74
(447)
(21)
21
(2,605)–
85
78,011

3,187
79
4,067
(81)
¥3,986

3,038
8
2,464
(49)
¥2,41533,905840
43,266(862)$42,404

Net income per share, basic..........................................
Cash dividends per common share...............................

¥52.04
26.00

Yen

U.S. dollars (Note 5)¥31.52
26.00

Consolidated Statements of Comprehensive Income
Millions of Yen$0.554
0.277

Thousands of U.S.
dollars (Note 5)

		

2013

2012

2013

Income before minority interests..................................

¥4,067¥2,464$43,266

497
1,962

(25)
(794)

5,287
20,872

29

(13)

309

Total other comprehensive income...................
Comprehensive income................................................

2,488¥6,555(832)¥1,632

26,468$69,734

Total comprehensive income attributable to:Shareholders of the Company.............................
Minority interests...............................................

¥6,436¥119¥1,596¥36$68,468$1,266

Other comprehensive income
Net unrealized gains (losses) on other securities.....
Translation adjustments.....................................
Share of other comprehensive income of companies
accounted for by the equity-method.........................

The accompanying notes are an integral part of these statements.
19

AMANO Corporation and Subsidiaries

Consolidated Statements of Net Assets
For the years ended March 31, 2013 and 2012.
Millions of yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at April 1, 2012
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Net changes in items other than shareholders’ equity
Total changes during the year

¥18,240¥19,567¥47,391(¥3,719)

Total shareholders’equity¥81,479(1)(1,991)
3,986
(1)

1,995

(1)

1,994

Balance at March 31, 2013¥18,240¥49,386(¥3,720)¥83,473

Balance at April 1, 2012
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Net changes in items other than shareholders’ equity
Total changes during the year
Balance at March 31, 2013

(1,991)
3,986––¥19,567

Accumulated other comprehensive income
Minority interests
Net unrealized Foreign currency Total accumulated
in consolidated Total net assets
gains (losses) on
translation
other comprehensubsidiaries
other securities
adjustments
sive income(¥179)(¥9,294)(¥9,473)¥186¥72,192

496
496

1,954
1,954

2,450
2,450

82
82

(1,991)
3,986
(1)
2,532
4,526

¥317

(¥7,340)(¥7,023)¥268¥76,718

Thousands of U.S. dollars (Note 5)
Shareholders' equity
Total shareholders'equity$866,798

Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at April 1, 2012
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Net changes in items other than shareholders’ equity
Total changes during the year

$194,043$208,160$504,159($39,564)––

21,223(10)

21,213

Balance at March 31, 2013

$194,043$208,160$525,382($39,574)$888,011

Balance at April 1, 2012
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Net changes in items other than shareholders’ equity
Total changes during the year
Balance at March 31, 2013

(21,181)(21,181)

42,404(10)

42,404(10)

Accumulated other comprehensive income
Minority interests
Net unrealized Foreign currency Total accumulated
in consolidated Total net assets
gains (losses) on
translation
other comprehensubsidiaries
other securities
adjustments
sive income($1,904)($98,872)($100,776)$1,979$768,001

5,276
5,276

20,787
20,787

26,06326,063872
872(21,181)
42,404(10)
26,935
48,148$3,372($78,085)($74,713)$2,851$816,149

The accompanying notes are an integral part of these statements.

20

Millions of yen
Shareholders' equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at April 1, 2011
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year

¥18,240¥19,567¥46,968(¥3,719)

Total shareholders'equity¥81,056(0)(1,992)2,415(0)Balance at March 31, 2012¥18,240

Balance at April 1, 2011
Changes during the year
Dividends from surplus
Net income
Purchase of treasury stock
Net changes in items other than shareholders' equity
Total changes during the year
Balance at March 31, 2012

(1,992)
2,415

–

–

423

(0)

423

¥19,567¥47,391(¥3,719)¥81,479

Accumulated other comprehensive income
Minority interests
Net unrealized Foreign currency Total accumulated
in consolidated Total net assets
gains (losses) on
translation
other comprehensubsidiaries
other securities
adjustments
sive income(¥154)(¥8,501)(¥8,655)¥160¥72,561

(25)
(25)

(793)
(793)

(818)
(818)

26
26

(1,992)
2,415
(0)
(792)
(369)

(¥179)(¥9,294)(¥9,473)¥186¥72,192

The accompanying notes are an integral part of these statements.

21

AMANO Corporation and Subsidiaries

Consolidated Statements of Cash Flows
For the years ended March 31, 2013 and 2012.
Thousands of U.S.
dollars (Note 5)

Millions of Yen

		

2013

Cash Flows from Operating Activities:
Income before income taxes and minority interests...........
Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities:
Depreciation and amortization ...................................
Amortization of goodwill ...........................................
Impairment loss on fixed assets .................................
Increase (decrease) in provision for accrued retirement benefits ..............
Increase (decrease) in allowance for doubtful accounts ...............
Interest and dividend income .....................................
Equity in (earning) losses of affiliates ........................
Interest expenses ......................................................
Foreign currency translation (gain) loss ......................
(Gain) Loss on sale of investments in securities...........
Loss on write-down of investments in securities .............
(Gain) Loss on sale of fixed assets .............................
Loss on disposal of fixed assets ..................................
(Increase) decrease in trade notes and accounts receivable .......
(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 refund
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 and equipment .......
Proceeds from sale of property and equipment ...........
Payment for acquisition of intangible assets ...............
Payment for acquisition of investments in securities ...
Increase in time deposits ...........................................
Decrease in time deposits ..........................................
Loans to third parties ................................................
Collection of loans ....................................................

Others ..............................................................
Net cash used in investing activities ......................

Cash Flows from Financing Activities:
Repayment of short-term bank loans ..........................
Proceeds from long-term debt ....................................
Repayment of long-term debt .....................................
Payment for acquisition of treasury stock ...................
Repayments of finance lease obligations
Dividends paid ..........................................................

2012

2013

¥7,333¥5,510$78,011

3,558
561
–
(337)
39
(176)
48
42
(23)
(2)
245
(5)
42
(413)
(173)
415
935
12,089
222
(42)
(209)
(3,443)
43
8,660

4,030
678
87
(461)
42
(158)
(37)
38
3
–
539
(5)
24
(2,917)
35
447
1,006
8,861
208
(38)
(99)
(3,082)
124
5,974

37,851
5,968–(3,585)415(1,872)
511
447
(245)
(21)
2,605
(53)
447
(4,394)(1,840)4,414
9,947
128,606
2,362(447)(2,223)(36,628)458
92,128(2,000)2,000(1,118)23(1,792)(1,803)(5,763)
5,265
(64)
65
94
(5,093)(2,054)2,241(1,265)
11
(842)
(56)
(4,377)
4,673
(7)
4
137
(1,535)(21,277)
21,277(11,894)245(19,064)(19,181)(61,309)
56,011
(681)
691
1,001
(54,181)(1,851)(1,729)
(174)
–
1,550
–
–
(17)
–
(0)
(0)
(0)
(12,479)(854)(1,173)(21,181)(1,992)(1,991)(478)(9)
Dividends payment to minority interests..............
(45)(35,989)(3,051)
Net cash used in financing activities.......................
(3,383)5,117(80)
Effect of exchange rate changes on cash and cash equivalents..............
481
7,075
1,308
Net increase (decrease) in cash and cash equivalents .............. 		
665
275,766
24,614
Cash and cash equivalents at beginning of year ..................................			
25,922$282,841¥25,922
Cash and cash equivalents at end of year ...........................................			
¥26,587
The accompanying notes are an integral part of these statements.

22

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 called “theCompany”] and its subsidiaries
have been prepared in accordancewith the provisions set forth in theJapanese 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.
The information in the consolidated
financial statements is derived fromthe original text, scope, and thenature of that information, and istherefore limited to that containedin the original text. However, certain reclassifications or summarizations of accounts have been madeto present the consolidated financial
statements in a form which is morefamiliar to the readers outside Japan.

2. Principles of Consolidation(1) Scope of Consolidation
The Company had 27 consolidated
subsidiaries at March 31, 2013; The
accompanying consolidated financial statements include the accountsof the Company and those of its
subsidiaries that are controlled by
the Company. Under the control
concept, major subsidiaries inwhich the Company is able to exer-

cise control over operations are to
be fully consolidated. The accountsof the overseas consolidated subsidiaries are prepared on the basis ofa December 31 fiscal year-end, andare consolidated accordingly with
the Company at March 31, 2013 and2012, and for the years then ended.
The consolidated subsidiaries thathave been consolidated with theCompany for the year ended March
31, 2013 are as follows:
Company Name

EquityPaid In Capitalownership (Thousands)%

1) Amano USA Holdings, Inc.
		
100% US$ 111,702
2) Amano Cincinnati, Inc.
		
100% US$ 23,172
3) Amano Cincinnati Canada, Inc.
		100%
C$ 4394) Accu-Time Systems, Inc.
		100%
US$ 0.83
5) Accu-Tech Systems, Ltd.
		100%
£ 0.002
6) Amano McGann, Inc.
		
100% US$ 46,418
7) Amano Pioneer Eclipse Corp.
		
100% US$ 4,606
8) Amano Europe Holdings N.V.
		
100% EUR 77,824
9) Amano Europe N.V.
		
100% EUR 17,850
10) Horosmart S.A.
		
100% EUR 16,000
11) Horoquartz S.A.
		
100% EUR 20,000
12) Horoquartz Marocco S.A.
		100%
DH 20013) Pial Technology S.A.
		100%
EUR 650
14) Scopus-Omnibadges S.A.S.
			67%
EUR 820
15) Amano Time & Parking Spain, S.A.
			
100% EUR 2,518

2316) Amano Malaysia Sdn.Bhd.
			100%
MR 2,500
17)Amano Time & Air Singapore Pte. Ltd.
		
100%
S$700
18)PT. Amano Indonesia		100%
US$ 250
19)Amano Thai International Co., Ltd.
		
49% THB 8,000
20)Amano International Trading (Shanghai)Co., Ltd.
		100%
US$ 200
21)Amano Korea Corp.
		
100%KRW10,605,895
22)Amano Agency Corp.
		
100%¥10,000
23)Environmental Technology Company
		100%¥20,000
24)Amano Management Service Corp.
		
100%¥205,00025)Amano Maintenance Engineering Corp.
		
100%¥30,000
26)Amano Business Solutions Corp.
		
100%¥300,000
27)Amano Musashi Electric Corp.
		
100%¥10,000
Note 1: Investment in Parkinsys
Technology Co., Ltd.,a Taiwanese company,over which the Company has the ability to
exercise significant influence (the Company
owns 36.6 percent) is
accounted for using theequity method.
Note 2: Investment in Creo Co.,
Ltd., a Japanese company, over which theCompany has the ability to exercise significant
influence (the Company
owns 30.5 percent) is
accounted for using theequity method.
* Creo Co., Ltd. is newly accounted
for using the equity method on
8th March, 2013 due to the acquisition of stock.

(2) Accounting for Investments
in Unconsolidated Subsidiaries and Affiliates
None of the 7 unconsolidated subsidiaries are accounted for by theequity method, becauase the effectof their net income or losses and retained earnings on the accompanying Conosolidated Financial Statements are immaterial.

(3) Consolidation and Elimination
For the purpose of preparing theconsolidated financial statements,
all significant intercompany transactions, account balances, and unrealized profits amoung the groupcompanies have been eliminatedfrom the consolidated financial
statements. Intercompany profit
included in the assets sold fromthe Company to the consolidateds ubs id ia r ies h a s b een enti r el yeliminated and charged against theconsolidated earnings of the groupcompnaies. Intercompany profit
included in the assets sold fromthe consolidated subsidiaries to theCompany has been entirely eliminated and the portion applicable tominority interests has been charged
against them.

3. Summary of Significant
Accounting Policies(1) Cash and Cash Equivalents
Cash and cash equivalents include
time deposits whose expiration
dates are within three months.

(2) Inventories
Inventories are stated at cost (writedown due to reduced profitability).
Cost is determined principally using
the periodic average method.

(3) Property, Plant and Equipment(4) Intangible Assets

Property, plant and equipment arestated at cost, less accumulated depreciation. Depreciation is computed on the declining balance method,
except for buildings acquired from
April 1, 1998, computed on thestraight -line method based on theestimated useful lives. The rangesof the useful lives of assets are :Buildings		
7-50 years
Machinery and equipment 7-17 years
Cost of property, plant and equipment, retired or otherwise disposedof, and related accumulated depreciation, is eliminated from therespective accounts, and the resulting gain or loss is reflected in income during the applicable period.
Normal repairs and maintenance,
including minor renewals and improvements, are charged to income
as incurred.

Intangible assets are amortized using the straight-line method. Software costs for internal use are amortized by the straight-line method
over their expected useful lives (fiveyears). Goodwill is amortized overthe estimated useful life, or where
the amount of goodwill is immaterial, is charged to income in theyear of acquisition.

*Accounting Changes:
In accordance with an amendment
to the Corporate Tax Law effective
April 1, 2012, the Company and its
domestic consolidated subsidiaries
have changed their depreciation
method for property, plant andequipment acquired on or after
April 1, 2012, other than certain
buildings, to reflect the methods
prescribed in the amended Corporate Tax Law. The previous applied
250% declining-balance method
was changed to the 200% decliningbalance method. The effect of thischange was immaterial to the consolidated financial statements forthe year ended March 31, 3013.

24(5) Lease Assets
Lease assets in finance lease transactions not involving transfer ofownership are depreciated by thestraight-line method over the termof the lease, with a residual valueof zero. Finance lease transactions
not involving transfer of ownership made prior to the beginningof the first year of application of
the revised Accounting Standard
for Lease Transaction have beenaccounted for using the method applied to rental transactions.

(6) Accounting for Financial
Instruments(a) Derivatives
All derivatives are stated at theirfair values, with changes in fairvalue included in net profit or loss
for the period in which they arise.
(b) Securities
Securities held by the Company andits subsidiaries are classified into four
categories;
Trading securities, which are held
for the purpose of generating profits
on short-term differences in prices,
are stated at their fair values, withchanges in fair values included in
net profit or loss for the period inwhich they arise. Additionally,securities held in trusts for trading
purposes are accounted for in thesame manner as trading securities.
Held-to-maturity debt securities, that
the Company and its subsidiaries
have intent to hold to maturity, arestated at their costs after accounting
for premium or discount on acquisition, which are amortized over theperiod to maturity.
Investments of the Company inequity securities issued by unconsolidated subsidiaries and affiliates
are accounted for by the equity
method. Exceptionally, investments
in certain unconsolidated subsidiaries and affiliates are stated at costbecause the effect of application of
the equity method would be immaterial.
Other securities for which market
quotations are available are stated
at fair value. Net unrealized gains
or losses on these securities are reported as a separate item in the net
assets at a net-of-tax amount.
Other securities for which market
quotations are unavailable are stated at cost, except as stated in theparagraph below.
In cases where the fair value ofheld-to-maturity 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 orloss for the period.

(7) Foreign Currency Translation
Foreign currency transactions aretranslated using foreign exchange
rates prevailing at the respective
transaction dates. Receivables andpayables in foreign currencies aretranslated at the foreign exchange
rates prevailing at the respectivebalance sheet dates and the resulting transaction gains or losses aretaken into income currently.

(8) Translation of Foreign
Currency Financial
Statements (Accounts ofOverseas Subsidiaries)
Foreign currency denominatedstatements of overseas consolidated
subsidiaries have been translated
into Japanese yen using the method
prescribed by the Business Accounting Deliberation Council ofJapan. All the balance sheet accounts of foreign and affiliates aretranslated at the foreign exchange
rates prevailing at the respectivebalance sheet date expect common
stock and capital surplus. On theother hand, all the profit and loss
accounts are translated at the average foreign exchange rates for therespective periods. Differences arising from translation are presented
as “Foreign currency translation adjustments” and “Minority interests
in consolidated subsidiaries” in theaccompanying consolidated financial statements.

(9) Income Taxes
The Company recognizes tax effectof temporary differences between
the carrying amounts and the tax
basis of assets and liabilities. The
provision for income taxes is computed based on the pretax income
included in the consolidated state-

25

ments of income. The asset and liability approach is used to recognize
deferred tax assets and liabilities forthe expected future tax consequences of temporary differences.

(10) Allowance for Doubtful
Accounts
In general, the Company and its
subsidiaries provide the allowancebased on the past receivables loss
experience for a certain reference
period. Furthermore, for receivables with financial difficulty which
could affect the debtors' ability toperform their obligations, the allowance is provided for estimated unrecoverable amounts individually.

(11) Accrued Retirement Benefits
to Employees
The Company and some of its Japanese subsidiaries recognize accrued
pension and severance costs to employees based on the actuarial valuation of projected benefit obligationand plan assets at fair value. Prior
service costs are amortized basedon the straight-line method over a
period of ten years. Actuarial gains
and losses are amortized based on
the straight-line method over a period of ten years starting from the
beginning of the subsequent year.

(12) Research and Development Expenses
Research and development expenses are charged to income as
incurred.

(13) Net Income and Dividends
per Share
Basic net income per share is computed based on the weighted average number of shares of common

stock outstanding during each period. Diluted net income per share iscomputed based on the net income
available for distribution to theshareholders and the weighted-average number of shares of common
stock outstanding during each year
after giving effect to the dilutive potential of shares of common stock
to be issued upon the exercise ofstock subscription rights and stock
options. Cash dividends per share
shown for each fiscal period in theaccompanying consolidated statements of income represent actual
dividends declared as applicable to
the respective fiscal period.

(14) Revenue from Construction Contracts
Revenues and costs of construction contracts are recognized by thepercentage-of-completion method incase the percentage of completion foreach contract can be reliably estimated.
The percentage of completion is measured by the percentage of total costs
incurred to date to estimated total costs
for each contract. The completed-contract method is applied to the contracts
in case the percentage of completioncannot be reliably estimated.

(2) Type of shares to be cancelled:
Cammon stock of the Campany(3)Number of shares to be cancelled:
4,600,000 shares (5.66% of outstanding shares prior to cancellation)(4) Number of shares outstanding
after cancellation: 76,657,829 shares(5) Scheduled date of cancellation:
April 8, 2013
(6) Number of treasury shares held
after cancellation: 62,735 shares

5. United States Dollar Amounts
The Company maintains its accounting records in Japanese yen.
The U.S. dollar amounts includedin the consolidated financial statements and notes thereto represent
the arithmetical results of translating Japanese yen to U.S. dollars at a
rate of ¥94=US $1, the approximate
effective rate of exchange prevailingon March 31, 2013. The inclusionof U.S. dollar amounts is solely forthe 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.

4. Signficant Subsequent Events
At the Board of Directors Meeting
held on March 27, 2013, the Company resolved to cancel treasury
stock pursuant to the provision of
Article 178 of the Companies Act.
The details of this cancellation are
as follows:(1) Reason for cancellation:
To improve capital efficiency andimplement capital policies in response to changes in the businessenvironment.

26

6. Cash and Cash Equivalents
A reconciliation of cash and cash equivalents to the amounts shown in the consolidated balance sheets is as follows:

Cash and bank deposits
Marketable securities
Sub total

Time deposits due overthree months
Marketable securities
due over three months
Cash and cash equivalents

Millions of Yen
2013
2012
¥29,175¥28,057
1,241
1,075
30,41629,132Thousands of U.S.dollars ( Note 5 )2013$310,372
13,202
323,574(2,829)(2,210)(30,095)(1,000)¥26,587(1,000)¥25,922(10,638)$282,841

7. Inventories
Inventories as of March 31, 2013 and 2012 consisted of the following:

Merchandise and finished goods
Work in progress
Raw materials and supplies
Total

Millions of Yen
2013
2012
¥2,985¥3,058
931
707
2,782
2,425
¥6,698¥6,190Thousands of U.S.dollars ( Note 5 )2013$31,755
9,904
29,596$71,255

8. Selling, General, and Administrative Expenses
Selling, general, and administrative expenses during the years ended March 31, 2013 and 2012 include principally:

Labor and payroll
Rental for properties
Travel and transportation

Millions of Yen
2013
2012
¥14,017¥14,037
1,624
1,671
1,157
1,251

Thousands of U.S.dollars ( Note 5 )2013$149,117
17,277
12,309

9. Provisions
Provisions charged to operation during the years ended March 31, 2013 and 2012 are mainly as follows:

Employees’ bonuses
Retirement benefits
Allowance for doubtful accounts

Millions of Yen
2013
2012
SGA
SGA
¥1,199¥1,268
1,180
1,120
(19)
59

27

Thousands of U.S.dollars ( Note 5 )2013
SGA$12,755
12,553(202)

10. Impairment Loss on Fixed Assets
Impairment loss on fixed assets for the years ended March 31, 2013 and 2012 is summarized as follows:
Location
Amano Pioneer Eclipse
Corp. (U.S.A.)

Purpose of use

Category

Business use
Business use
Business use

Buildings and structures
Machinery and equipment
Land
Total

Millions of Yen
2013
2012
–
¥30
–
3
–
54
–
¥87

Thousands of U.S.dollars ( Note 5 )
2013
–
–
–
–

Method to Group Assets:
The Company and its subsidiaries group assets according to minimum units that have identifiable cash flows essentially independent from the cash flowsof other assets or groups of assets.
Recognition of Impairment Losses:
In the year ended March 31, 2012, the total amount of projected future cash flows generated from the asset group of Amano Pioneer Eclipse Corp. fell below thebook values. As a result, the book values of these assets were reduced to the recoverable amount, and the reduction was recognized as impairment losses.
Calculation of Recoverable Amount:
The recoverable amount for the said assets is estimated based on the net selling price. The calculation of market value is mainly based on appraised value.

11. Other Comprehensive Income
The following table presents reclassification and tax effects allocated to each component of other comprehensive income for the year ended March 31, 2013:
2013
¥693
4
697
(200)
497

Thousands of
U.S.dollars ( Note 5 )2013$7,37243
7,415(2,128)
5,287

1,969
11
1,980
(18)
1,962

20,947
117
21,064(192)
20,87228¥2,487298$26,457

Millions of Yen
Net unrealized gains (losses) on other securities:
Amount arising during the year…………………………………………………………
Reclassification adjustments………………………………………………………………
The amount of net unrealized gains (losses) on other securities before tax effect…………
Tax effect……………………………………………………………………………………
Net unrealized gains (losses) on other securities………………………………………
Translation adjustments:
Amount arising during the year…………………………………………………………
Reclassification adjustments………………………………………………………………
The amount of translation adjustments before tax effect………………………………
Tax effect……………………………………………………………………………………
Translation adjustments……………………………………………………………………
Share of other comprehensive income of companies accounted for by the equity method:Amount arising during the year…………………………………………………………
Total other comprehensive income………………………………………………………

12. Leases Commitments
Finance lease contracts, which commenced on or before March 31, 2008, other than those which are deemed to transfer the ownershipof the leased assets are accounted for by the method that is applicable to operating leases.
Minimum future lease payments under finance leases, which include the imputed interest expense portion are summarized as follows:
Millions of Yen
Due within one year
Due over one year
Total

2013
¥25
2
¥27

2012
¥63
27
¥90

Thousands of U.S.dollars ( Note 5 )
2013
$266
21
$287

Lease payments on finance lease contracts without transfer of ownership for the years ended March 31, 2013 and 2012were ¥62 million ($660 thousand) and ¥182 million, respectively.
Acquisition cost, accumulated depreciation, net book value and depreciation expenses for the year ended March 31, 2013 and2012, if capitalized, are summarized as follows:
Millions of Yen
Acquisition cost
Accumulated depreciation
Net book value
Depreciation

2013
¥345
318
¥27

2012
¥925
834
¥91

Thousands of U.S.dollars ( Note 5 )2013$3,670
3,383
$287

¥62

¥309

$660

Depreciation is calculated based on the straight-line method over the lease term of the leased assets.
28

13. Financial Instruments
Overview(1) Management policy
The management policy of the Company is that temporary surplus fund should be invested in low-risk financial instruments. The Company
has not held any high-risk financial instruments.

(2) Financial instrument and its risk
Both notes receivable and accounts receivable as operating receivable are exposed to credit-related losses in the event of nonperformance bycounterparties. Both notes payable and accounts payable as trade liability are due and payable within one year. Marketable securities andinvestments in securities are exposed to changes in its 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 policiesa) Management policy for credit risk (losses in the event of nonperformance by counterparties)
The Company has a credit management policy. In accordance with the credit management policy, the exposure to credit risk of both notes receivable and accounts receivable is monitored on an ongoing basis in order to detect unrecoverable credits in early stages as well as minimizing them. The Company has operated Fund Operation Council in place. In accordance with the examination and decision of the fund operation council, the Company has made an investment in held-to-maturity securities, which consist largely of negotiable deposits and securities
graded at high credit rating. The Company has expected that no held-to-maturity securities can fail to meet their obligations.

b) Management policy for market risk (foreign currency exchange and interest rates)
The Company has monitored not only fair market value of held-to-maturity securities and investment in securities but also financial conditions of their counterparties on an ongoing basis. The Company has reviewed the securities other than held-to-maturity securities based on
the relationship with its counterparties on an ongoing basis.

c) Management policy for liquidity risk (in default on its financial obligations)
The Company has managed liquidity risk by holding appropriate reserves based on the forecasts and actual cash flows, which are continuously monitored by management department.

(4) Supplementary explanation on the fair value of financial instruments
The fair values of financial instruments are based on quoted market prices. Unless quoted market prices are available, the fair values are estimated based on the prices reasonably assessed by the Company. Since the Company takes contingent variable factors into accounts in orderto estimate the fair value, it would vary depending on the different preconditions.

Estimated fair value of financial instruments
Differences between carrying value and estimated fair value as of March 31, 2013 and 2012 are as follows:
Financial instruments whose fair values are hardly estimated are not stated on the following chart; refer to (* 2).

(1) Cash and bank deposits(2) Notes and accounts receivable(3) Marketable securities and investments in securities① Held-to-maturity② Subsidiaries and affiliates③ Other securities
Total (Asset)(4) Trade notes and accounts payable(5) Electronically recorded monetary claims
Total (Liability)(1) Cash and bank deposits(2) Notes and accounts receivable(3) Marketable securities and investments in securities① Held-to-maturity② Other securities
Total (Asset)(4) Trade notes and accounts payable
Total (Liability)

Carrying
value¥29,175
24,920Millions of Yen
2013
Estimated
Difference
fair value
in amounts¥29,175–
24,920–Thousands of U.S.dollars ( Note 5 )2013
Carrying
Estimated
Difference
value
fair value
in amounts$310,372$310,372–
265,106
265,106
–

1,350
1,406
3,999
¥60,850

1,347
965
3,999
¥60,406(¥3)(¥441)–(¥444)

14,362
14,95742,543$647,340

14,33010,26642,543$642,617($32)($4,691)–($4,723)¥5,634¥5,404¥11,038¥5,634¥5,404¥11,038–––$59,936$57,489$117,425$59,936$57,489$117,425––

Carrying
value¥28,057
23,754

Millions of Yen
2012
Estimated
Difference
fair value
in amounts¥28,057–
23,754
–

1,424
3,203
¥56,438

1,420
3,203
¥56,434

(¥4)
–
(¥4)

¥10,386¥10,386¥10,386¥10,386––29

(NOTES)(* 1): Methods to determine the estimated fair value of financial instruments and other matters related to securities and derivative transactions.
Asset:(1) Cash and bank deposits, and (2) Trade notes and accounts receivable:
Since these items are settled in a short period of time, their carrying value approximates fair value.
(3) Marketable securities and investments in securities:
The fair value of stocks is based on quoted market prices. The fair value of debt securities is based on either quoted market prices or prices provided by thefinancial institutions making markets in these securities. For information on securities classified by holding purpose, please refer to (*5) Held-to-maturity
and other securities with readily determinable fair value as of March 31, 2013 and 2012.
Liability:(4) Trade notes and accounts payable:
Since these items are settled in a short period of time, their carrying value approximates fair value.
(*2): Financial instruments, whose fair values are hardly estimated, are as follows:

Unlisted stocks (Carrying value)

2013
¥935

Millions of Yen

2012
¥720

Thousands of U.S.dollars ( Note 5 )2013$9,947The unlisted stocks 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.

(*3) Redemption schedule for monetary claim, and securities with maturities as of March 31, 2013 and 2012 is as follows:
Millions of Yen
2013
Due
Due after 1 year
Due after 5 years
within 1 year
but within 5 years
but within 10 years
Cash and bank deposits¥29,175––
Notes and accounts receivable
24,920––Marketable securities and investments in securities:
Held-to-maturity securities
1,200
¥100
¥50
Other securities with maturity date
–
700
–
Total
¥55,295¥800¥50

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

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

Millions of Yen
2012
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

Due
within 1 year
¥28,057
23,754
1,075–¥52,886¥300
700¥1,000¥50–¥50

Thousands of U.S.dollars ( Note 5 )2013
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

Due
within 1 year
$310,372
265,106
12,766–$588,244$1,064
7,447$8,511

30

$532
–
$532

Due
after 10 years
–
–
–
–
–

Due
after 10 years
–
–
–
–
–

Due
after 10 years
–
–
–
–
–

(*4) Repayment schedule for long-term loan payable and lease obligations at the balance sheet dates:
Millions of Yen
Long-term loan payable
Lease obligations
Total

Due within 1 year The second year–
¥189
¥1,162
1,102¥1,162¥1,291

2013

The third year
¥185
786
¥971

The fourth year
¥870
563
¥1,433

The fifth year
299
¥299

Thereafter
–
¥382
¥382

The fifth year–
3,181
$3,181

Thereafter–$4,064$4,064–

Millions of Yen
2012

Long-term loan payable
Lease obligations
Total

Due within 1 year The second year
–
¥331
¥864
889
¥864
¥1,220

The third year
¥168
711
¥879

The fourth year
$9,255
5,989$15,244

Thousands of U.S.dollars ( Note 5 )Long-term loan payable
Lease obligations
Total

Due within 1 year The second year–
$2,011$12,362
11,723$12,362$13,734

2013

The third year
$1,968
8,362$10,330

The fourth year
$9,255
5,989$15,244

The fifth year–
3,181
$3,181

Thereafter–$4,064$4,064(*5) Held-to-maturity and other securities with readily determinable fair value as of March 31, 2013 and 2012, are as follows:
Millions of Yen

Held-to-maturity

Other securities with carrying
value exceeding acquisition cost
StocksOther
		Subtotal
Other securities with carrying
value not exceeding acquisition cost
StocksOther
		Subtotal
		Total

2013

Carrying
value¥1,350Fair value

Unrealized
gains (losses)(¥3)

Carrying
value$14,362

Fair value

Carrying
value

Acquisition Unrealized
gains (losses)
cost

Carrying
value

Acquisition Unrealized
cost
gains (losses)¥1,347

Other securities with carrying
value exceeding acquisition cost
StocksOther
		Subtotal
Other securities with carrying
value not exceeding acquisition cost
StocksOther
		Subtotal
		Total$14,330

Unrealized
gains (losses)($32)¥1,679
310
1,989

¥961
300
1,261

¥718
10
728

$17,862
3,298
21,160$10,223
3,191
13,414$7,639
107
7,746

1,614
395
2,009

1,901
400
2,301

(287)
(5)
(292)

17,1704,202
21,372

20,223
4,255
24,479(3,053)(53)(3,107)¥3,998¥3,562¥436$42,532$37,893$4,639Millions of Yen

Held-to-maturity

Thousands of U.S.dollars ( Note 5 )
2013

2012

Carrying
value¥1,424

Acquisition
cost¥1,420

Unrealized
gains (losses)(¥4)

Carrying
value

Fair value

Unrealized
gains (losses)

¥817
305
1,122

¥563
300
863

¥254
5
259

1,684
387
2,071

2,192
400
2,592

(508)
(13)
(521)

¥3,193¥3,455(¥262)

31

14. Retirement Benefits
Outline of the retirement benefit plans adopted(1) Defined 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) Defined contribution pension scheme: From March 1, 2009, the Company adopted a defined contribution pension scheme as partof its retirement benefit plan.
(3) Employees' pension fund: Since April 1, 1980, the Company has used an employees' pension fund plan (comprehensive establishment type) as a supplement to its existing retirement benefit scheme.
The components of accrued retirement benefits to employees as of March 31, 2013 and 2012 are as follows:

Projected benefit obligation
Plan assets
Unfunded benefit obligation
Unrecognized actuarial difference
Unrecognized prior service cost
Prepaid pension costAccrued retirement benefits to employees

Millions of Yen
2013
2012
¥11,360¥11,149(7,713)(6,677)
3,647
4,472(1,054)(1,547)21
25
57
34¥2,671¥2,984

Thousands of U.S.
dollars ( Note 5 )2013$120,851(82,053)
38,798(11,213)223
606$28,414

The components of retirement benefit expenses for the years ended March 31, 2013 and 2012 are as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization of unrecognized prior service cost
Amortization of unrecognized actuarial loss
Contribution to the multi-employer pension plan
Other*Net retirement benefit expenses

Millions of Yen
2013
2012
¥663
¥592
161
245
(164)
(213)
(3)
(3)
211
167
523
513
320
319
¥1,711¥1,620Thousands of U.S.
dollars ( Note 5 )2013$7,053
1,713(1,745)
(32)
2,245
5,564
3,404
$18,202* Contribution paid to defined contribution pension scheme.

The assumptions used for calculation of retirement benefits for the years ended March 31, 2013 and 2012 are as follows:
Method of attribution of estimated retirement
benefits to periods of employee service
Discount rate
Expected return on plan assets
Amortization period for unrecognized priorservice cost
Amortization period for unrecognized actuarial difference

2013

2012

Straight-line method

Straight-line method

1.5%
2.5%

1.5%
3.5%

10 years

10 years

10 years

10 years32

15. Deferred Tax
Deferred tax assets and liabilities (both current and non-current) consisted of the following elements:
Millions of Yen
2013
2012

Thousands of
U.S.dollars (Note 5)2013

Deferred tax assets:
Accrued enterprise tax
Accrued employees’ bonuses
Accounts payable and long-term accounts payable
Accrued retirement benefits to employees
Loss carried forward
Loss on write-down of investments in securities
Surplus on allowance for doubtful accounts
Unrealized loss on other securities
Unrealized gains
OthersLess: valuation allowance
		 Total deferred tax assets

¥115
679
78
950
941
546
121
–
598
833
(1722)¥3,139

¥148
734
79
1,087
737
444
97
79
528
693
(1301)¥3,325$1,2237,223
830
10,106
10,011
5,809
1,287
–
6,362
8,862
(18,319)$33,394

Deferred tax liabilities:
Reserve for advanced depreciation of building
Acquired intangible assets
Unrealized loss on other securities
Others		 Total deferred tax liabilities
		 Net deferred tax assets

(15)
(96)
(122)
(178)
(411)
¥2,728

(16)
(129)
–
(182)
(327)
¥2,998(160)(1,021)(1,298)(1,894)(4,372)$29,022

2013
38.0%

2012
40.6%

0.5
(5.7)
1.1
2.3
5.6
(0.1)
(0.3)
3.0
–
(1.8)
0.3
1.6
44.5%

1.6
(6.0)
1.5
3.1
5.8
(0.2)
(1.7)
6.7
3.6
(2.4)
(0.3)
3.0
55.3%

Reconciliation of 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
Realization of tax benefits on operating losses
Tax credit for research and development expenses
Valuation allowance
Deferred tax assets reduced by change of taxation rates
Difference of subsidiaries’ tax rates
Equity in earnings of affiliates
Others		 Actual tax rate33

16. 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
2.Environmental equipment(1) Sales, profits or losses, assets and other items by reportable segments
Millions of Yen
2013
Reportable segments
Adjustments/
Time Information Environment
Total
Eliminations
Net sales:
Sales to third parties¥65,535¥24,760¥90,295–
Intersegment sales and transfers
		Total65,53524,76090,295
Segment profit or loss
¥7,846¥2,293¥10,139(¥2,810)Segment assets¥49,761¥19,499¥69,260¥40,216
Depreciation and amortization
2,743
419
3,162
396
Investments accounted for by the equity method
1,614
–
1,614
–
Capital expenditures
4,203
380
4,583
131

90,295¥7,329¥109,476
3,558
1,614
4,714

Millions of Yen
2012
Reportable segments
Adjustments/
Time Information Environment
Total
Eliminations

Consolidated

Net sales:
Sales to third parties
transfers
		TotalSegment profit or loss
Segment assets
Depreciation and amortization
Impairment loss for fixed assets
Investments accounted for by the equity method
Capital expenditures

Net sales:
Sales to third parties
transfers
		TotalSegment profit or loss
Segment assets
Depreciation and amortization
Impairment loss for fixed assets
Investments accounted for by the equity method
Capital expenditures

Consolidated¥90,295¥64,608¥23,539¥88,147

–

–

–

–

–

–

64,608¥6,698¥43,908
3,142

23,539¥2,278¥17,505440
87

88,147¥8,976¥61,413
3,582
87
219
3,362

–
(¥3,059)¥42,065448

88,147¥5,917¥103,478
4,030
87
219
3,419

–

219
3,208

–

154

–
–

57

¥88,147

Thousands of U.S. dollars (Note 5)2013
Reportable segments
Adjustments/
Time Information Environment
Total
Eliminations

Consolidated$697,181$263,404$960,585$960,585–––

697,181$83,468$529,372
29,181

263,404$24,394$207,436
4,457
0960,585$107,862$736,808
33,6380
17,17048,756–

17,17044,713

–

4,043
34

–
–
–

($29,894)$427,830
4,213
–
–

1,394

–

960,585$77,968$1,164,638
37,8510
17,17050,150(2)Supplementary Information(a) Geographic segments
Information by geographic areas based on location for the years ended March 31, 2013 and 2012, is summarized as follows:

Net sales:
Customers
Intersegment
		TotalOperating income

Net sales:
Customers
Intersegment
		TotalOperating income

Net sales:
Customers
Intersegment
		TotalOperating income

Domestic(in Japan)

Asia

Millions of Yen
2013
Overseas
Total
North America Europe¥67,713
1,479
69,192¥8,895¥7,099
362
7,461
¥654

¥10,046
141
10,187¥303

Domestic(in Japan)

Asia

Millions of Yen
2012
Overseas
Total
North America Europe¥66,413
1,609
68,022¥8,696¥6,453
199
6,652
¥593

Domestic(in Japan)

Asia$720,351
15,734
736,085$94,628$75,521
3,851
79,372$6,957¥5,437
16
5,453
¥169

¥9,423
126
9,549
(¥79)

¥5,858145,872(¥221)¥90,295
1,998
92,293¥10,021¥88,147
1,948
90,095¥8,989Eliminations/ Consolidated
Corporate
Total(¥1,998)(1,998)(¥2,692)¥90,295
90,295¥7,329Eliminations/ Consolidated
Corporate
Total¥88,147(¥1,948)(1,948)(¥3,072)

88,147¥5,917

Thousands of U.S. dollars (Note 5)2013
Overseas
Eliminations/ Consolidated
Total
Corporate
Total
North America Europe$106,873
1,500
108,373$3,223$57,840
171
58,011$1,798$960,585
21,256 ($21,256)
981,841 (21,256)$106,606 ($28,638)$960,585
960,585$77,968(b) Overseas sales
Overseas sales for the years ended March 31, 2013 and 2012 are summarized as follows:
Millions of Yen
Thousands of U.S.dollars (Note 5)
2013
2012
2013
Overseas sales
Asia¥7,779¥7,032$82,755
North America
10,086
9,427
107,298
Europe5,438
5,858
57,851Others
90
173
958
Total
¥23,393¥22,490$248,862
Percentage of overseas sales
to consolidated net sales

25.9%

25.5%

Overseas and export sales represent the total amount of export sales of the Company and domestic subsidiaries
and sales of the overseas subsidiaries.

17. Per Share Data
Net assets and net income per share as of and for the years ended March 31, 2013 and 2012:

Amounts per share
Net assets
Net income:
Basic

2013

Yen

2012

U.S.dollars (Note 5)2013¥998.09¥940.07$10.618

52.04

31.52

0.554

35

Corporate Data
Board of Directors

Domestic Operations

Chairman & Representative Director

HEAD OFFICESYSTEM CENTERS

Kaoru HARUTA

275 Mamedocho, Kohoku-ku, Yokohama,

SAPPORO System Center

Kanagawa, JAPAN 222-8558

SENDAI System Center

President & Representative Director

Izumi NAKAJIMAOMIYA System Center
FACILITIESTOKYO System Center

YOKOHAMA Facility

SHINAGAWA System Center

Executive Officer & Representative Director

TSUKUI Facility

SHINJUKU System Center

Haruhiko YAMAGUCHIHOSOE Facility

TACHIKAWA System Center

MIYAKODA Facility

NAGANO System Center

Director & Managing Operating Officers

NIIGATA System Center

Minoru KOYAMASALES OFFICESKANAGAWA System Center

Nobuyuki TABATA

73 Sales Officers Located in major cities,

SHIZUOKA System Center

Hiroshi SHIRAISHI

including

NAGOYA System Center

Director & Operating Officers

SAPPORO Office

OSAKA System Center

Toru UENOSENDAI Office

KOBE System Center

Isao TERASAKIOMIYA Office

HIROSHIMA System Center

TOKYO Office

TAKAMATSU System Center(Outside) Director

NAGANO Office

FUKUOKA System Center

Isao KISHINIIGATA Office

KANAZAWA System Center

YOKOHAMA Office

DOMESTIC SUBSIDIARIES(Full-time) Audit & Supervisory Board Member

HAMAMATSU Office

AMANO MANAGEMENT SERVICE CORPORATION

Tsuyoshi FUJIWARA

NAGOYA Office

AMANO MAINTENANCE ENGINEERING CORPORATION

Naoki NAKADA

KANAZAWA Office

AMANO BUSINESS SOLUTIONS CORPORATIONKYOTO Office

ENVIRONMENTAL TECHNOLOGY CO., LTD.

(Outside) Audit & Supervisory Board Member

OSAKA Office

AMANO MUSASHI ELECTRIC CORPORATION

Yoshiyuki SATOOKAYAMA Office

AMANO AGENCY CORPORATION

Takehide ITONAGAHIROSHIMA Office
TAKAMATSU Office

Managing Operating Officer

FUKUOKA Office

Masamiki KONNO
Operating Officers

Kenji KOHORI
Bungo NOGAWA
Takeshi AKAGI
Kunihiro IHARA
Morio KANEKO
Minoru YONEZAWA
Yasuhiro SASAYA
Tatsuo NIIHO
Masahiko MORITA
Hiroyuki TSUDA
Myeong-Jin JEON

36

Overseas Operations
1. AMANO USA HOLDINGS,INC.
		CORPORATE HEADQUARTERS

11.AMANO TIME&PARKING SPAIN S.A.

		C/. Plomo, N°5-7, Planta 2 - Oficina 2 08038 Barcelona, Espana

		140 Harrison Avenue Roseland,
New Jersey 07068 U.S.A.

12. HOROSMART, S.A.
		CORPORATE HEADQUARTERS

2. AMANO CINCINNATI,INC.
		HEAD OFFICE

		Tour CIT, 3 rue de l'Arrivée 75015 Paris,
France		140 Harrison Avenue Roseland,
New Jersey 07068 U.S.A.

13. HOROQUARTZ, S.A.
		HEAD OFFICE

3. AMANO CINCINNATI,INC.
		OHIO FACTORY

		Tour CIT, 3 rue de l'Arrivée 75015 Paris,
France		130 Commerce Blvd. Loveland, Ohio
45140-7726 U.S.A.

14. HOROQUARTZ MAROC, S.A.

		2740 Matheson Blvd. East, Unit 4
Mississauga, ONT L4W 4X3 Canada

		67, Bd Al Massira Al
Khadra Mâarif 20100 Casablanca,
Kingdom of Morocco

5. AMANO PIONEER ECLIPSE CORPORATION

15.		 SCOPUS-OMNIBADGES, S.A.

		1 Eclipse Road, Sparta, North Carolina
28675-0909 U.S.A.

		19 rue Nicolas Leblanc, 33700 Mérignac

4. AMANO CINCINNATI CANADA INC.

16. PIAL TECHNOLOGIES, S.A.
6. AMANO McGANN, INC.
		HEAD OFFICE		ZI route de Niort BP 251 85205
Fontenay-le-Comte, France

		651 Taft Street NE, Minneapolis,
Minnesota 55413 U.S.A.

17.		 AMANO KOREA CORPORATION		HEAD OFFICE

7. ACCU-TIME SYSTEMS, INC.

		420 Somers Road, Ellington, Connecticut
06029 U.S.A.

		#407 Woolim e-Biz Center2,
Yangpyeong-Dong 3Ga,
Yeongdeungpo-Gu,Seoul,Korea

8. ACCU-TECH SYSTEMS, Ltd.

18.		 TIME STAMP SOLUTION CORPORATION		C1 Caerphilly Business Park, Caerphilly
Mid Glamorgan CF83 3ED, U.K.

		#411, Woolim e-BIZ Center2,
Yangpyeong-Dong 3Ga,
Yeongdeungpo-Gu, Seoul, Korea

9. AMANO EUROPE HOLDINGS, N.V.
		CORPORATE HEADQUARTERS

		14F Nextage Business Center, No.1111
Pudong Road(South), Pudong New Area,
Shanghai, China 200120
21.		 AMANO MANUFACTURING(SHANGHAI)CO.,LTD.

		No, 128, 2232 Alley, Chuanliugong Rd,
Shanghai, China
22.		 AMANO MALAYSIA SDN.BHD.

		No.12, Jalan Pengacara U1/48, Temasya
Industrial Park 40150 Shah Alam, Selangor Darul Ehsan, Malaysia
23.		 AMANO TIME&AIR SINGAPORE PTE.LTD.

		BIk 213 Henderson Road, #04-06/07
Henderson Industrial Park Singapore
15955324.		 PT.AMANO INDONESIA

		Gedung Pusat Perfilman H.Usmar
Ismail,Lantai3 JL.H.R.Rasuna Said Kav.
C-22 Jakarta 12940 Indonesia
25.		 AMANO THAI INTERNATIONAL CO.,LTD.

		Room No. 3A, 3rd Fl., Chai-Ho Wong
Wai Wit Building, 889 Moo 5, Srinakarin
Road, T. Samrong-nua, A. Muang
Samutprakarn 10270, Thailand

19.AMANO INTERNATIONAL
TRADING(SHANGHAI)CO.,LTD.
		HEAD OFFICE

		Westerring 2, 3600 Genk, Belgium
10. AMANO EUROPE, N.V.
		CORPORATE OFFICE

		Room No.901,Zhongdian Mansion 1029
Nanquan Road (N), Pudong, Shanghai,
China 200122

		Westerring 2, 3600 Genk, Belgium

812,13,15,16

20. AMANO SOFTWARE ENGINEERING(SHANGHAI)CO.,LTD.

9,10
6

11
17,18

14

AMANO CORPORATION

19,20,21

22

25
23
24

37

4
3
5

1,2,7

275 MAMEDOCHO, KOHOKU-KU , YOKOHAMA, KANAGAWA,
JAPAN 222-8558
PHONE : +81 (45) 401-1441
FAX: +81 (45) 439-1150
HOME PAGE : http://www.amano.co.jp/English/

CAT-115200
K9806A3-2013.6