FINANCIAL REPORT
April 2018 - March 2019

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

2. Medium-long term business strategy of the company
Amano launched the 7th Medium-term Business Plan for the three years from April 2017 toMarch 2020. An outline of the plan is set out below.
[1] Basic Policies
Under the 7th Medium-term Business Plan, with the Group’s management concept of “The2nd Stage Towards a 100-year Company-Innovative Creation of Value for Sustainable Growth,”
we will address four key issues towards achieving the goal of “enhancing our corporate value”
while emphasizing compliance and further strengthening corporate governance as a foundation.
(1)
(2)
(3)
(4)

Regional Growth Strategies: Promote growth strategy for each of the four regions (Japan,
North America, Europe and Asia).
Reinforcement Management Foundation: Reinforce management practices based on productivity improvement by continuing cost reduction activities and a work style reform.
Create Innovation: Aim to be the clear niche leader and build the sixth and seventh corebusinesses.
Improve Brand Value: Promote the enhancement of the value of Amano brands throughefforts to address the key issues described above.

The target of the 7th Medium-term Business Plan is the achievement of the “triple 11.”(1) Operating proﬁt ratio: 11% or more
(2) ROE: 11% or more
(3) The ratio of consolidated net sales to non-consolidated net sales: 11% growth
Measures and issues for each region under these basic policies are as follows:
1. Japanese market
In the Japanese market, we will reinforce ties among domestic Group companies and also withother companies outside the Group and strengthen our capacity to provide holistic solutions(which cover hardware, software, and services) across all business ﬁelds both qualitatively andquantitatively. We will also promote the strategic “3-in-1 activity” to increase our customer
base by cultivating and further attracting existing customers and aim to be the clear niche
leader on a medium- to long-term basis in each business ﬁeld.
The Information Systems business is being driven by the strong demand for time & attendance
management systems generated by the Labor Reform Act. The Labor Standards Law establishedapproximately 70 years ago, underwent a signiﬁcant revision with the enactment of the Labor
Reform Act in April 2019, which aims to curb long working hours. Even under the newly established Advanced Professional System, the management of health care time is mandatory. In
other words, employers are now legally obliged to protect the well-being of their employees
by properly grasping working hours and to establish appropriate controls to maintain compliancy with legal working hours. As the Labor Reform Act will be applied progressively depending on the company size and its industry, it is expected that further demand will be generated
from system renewals and conversions to services using cloud and smart devices.
In response to this market environment, for the small-to-medium sized enterprise (SME) market, we will further strengthen the marketing of holistic solutions with the “TimePro-NX” which
is an integrated software to manage time & attendance, human resource management andpayroll. For the medium-to-large enterprise market, we are working to strengthen solutions for1

time & attendance, human resource management, payroll, accounting software, and consulting services by collaborating with CREO CO., LTD., utilizing “TimePro-VG”. We are seeking tobecome an “HR solutions vendor” by expanding our customer base through the provision of aone-stop service that covers hardware, software and cloud services.
The Parking Systems business continues to grow in the nation’s parking lot market despite
the cooling down of the real estate market which was buoyant in advance of the 2020 Tokyo
Olympics. In addition to the need for parking lot management cost reduction, ensuring safety
and security in parking lots, consideration for the environment and the improvement of userconvenience, the need to offer solutions for new operational methods such as use via web
based services and cashless / ticketless use of parking lots is increasing.
Given this market environment, we will further strengthen partnerships with major parking lot
management companies and provide various services through our parking lot data center forsmall- and medium-sized parking lot management companies while improving the functions
and operability of system equipment. In order to respond to transitions in the market including
the increased demand for parking reservations and the migration towards a sharing economy,
we will aim to become a “total parking solutions vendor.” In addition, we will continue tostrengthen and expand our efforts for facilities such as bicycle parking lots, security gates andtoll roads in order to expand our business.
In the Environmental systems business, despite the sense of sluggishness, domestic capital
investments by companies remained solid especially in the automobile-related industry. Overseas on the other hand, the Chinese economy is showing signs of a slowdown and capital investments by Japanese transplants in the U.S. and other regions were somewhat weak.
Given this market environment, in Japan we will aim to increase the quantity of sales of standard equipment by rolling out new products and expand business domains including the pharmaceutical, food, and cosmetics markets, which are less affected by business sentiments. We
will also work to strengthen our engineering capabilities and comprehensive sales, includingthat of peripheral equipment, by partnering with industrial equipment manufacturers and aim
to become an “M2M partial solutions vendor.”In the Clean Systems, while the trend of companies trying to reduce cleaning costs continues,
amid the aging of sanitation workers and an increase in the number of inexperienced workers,
the need to improve safety and operability of cleaning equipment has been increasing. At thesame time, the need to maintain building aesthetics at a low cost has also been increasing.
In response to these market conditions, we will expand the robotic cleaning market by introducing the latest cleaning devices to the factory market. We will also strengthen recurring revenues by means of promoting maintenance contracts and increasing order intake for supplies,
which will reinforce our customer base. In addition to promoting comprehensive proposals forcommissioned cleaning services and aesthetic maintenance, we will also strive to become a“robotic solutions vendor,” with cleaning robots.
2. North American market
In the Parking Systems business, we will focus on the early recovery of Amano McGann, Inc., andat the same time we will continue to expand system sales along with the promotion of a new product for the low-end market so as to gain a sure foothold. In the Information Systems business, wewill strive to expand the business by increasing sales of Accu-Time Systems, Inc.’s time and attendance information terminals and by developing cloud services. In the Clean Systems business, wewill further expand the business of the wooden ﬂoor sanding equipment division of Amano Pioneer
Eclipse Corp., and develop new niche areas and new sales channels. In the Environmental Systems business, Amano Time & Ecology de Mexico S.A. de C.V. will strive to boost sales of standard
equipment to Japanese transplants in the region, especially the automobile-related companies.
3.European market
In the Information Systems business, we will further enhance our customer base by promoting
Horoquartz’s workforce management and access control businesses. In the Parking Systems
business, we will strive to expand operations by developing a commissioned parking lot management business.
4. Asian market
In the Asian region, we will aim to expand Parking Systems operations by strengthening services in the commissioned parking lot management business and by expanding services into
new regions. In the Environmental Systems business, we will strengthen our engineering capabilities as well as sales and service systems for Japanese companies operating in Asia by mak-2

ing use of the ties between our Group companies across Asia and our head ofﬁce in Japan. We
will also expand our local production capabilities in order to enhance cost competitiveness.
Other issues that need to be addressed are listed below:
1. Practical implementation of a work style reform
With the aim of improving productivity of the whole Group, we will continue the efforts toincrease productivity by having each employee regulate their biological clock and create atimetable which reﬂects the prioritization of their job duties. We will publish examples andthe results of our company’s efforts as an “HR solutions vendor” to the public and incorporatesuch examples to enhance the product appeal of time & attendance systems.
2. Create innovation
We will aim to become the “clear niche leader” by increasing each business division’s No. 1
areas. We will also promote open innovation by acquiring technology and know-how fromcompanies outside our Group through cooperation with venture companies and M&As regardless of our existing technology and know-how in order to build the “sixth and seventh corebusinesses” as new businesses. In addition, with future market trends in mind, we will promoteresearch and development that is not necessarily limited to our current product or service
lineup (to defeat innovation dilemmas) in order to aim for leading-edge business development
utilizing AI, IoT, robotic devices and the web.
3. Further improvement of brand value
In order to improve our corporate value, we will strive to gain wider recognition of our company in the overall market by taking advantage of mass media and social media, and aim tofurther enhance our brands by strongly promoting each business division’s brand strategies andby creating synergy effects with our Group companies more than ever before.
[2] Numerical targets
For the next ﬁscal year, which is the ﬁnal year of the current 7th Medium-term Business Plan,
we initially planned for net sales at ¥142,000 million, operating income at ¥16,000 million, ordinary income at ¥16,400 million, and net income attributable to parent company
shareholders at ¥10,800 million. However, in light of the business performance up to thecurrent ﬁscal year and the business plan for the next, we have revised the plan to net sales at¥138,000 million, operating income at ¥16,500 million, ordinary income at ¥16,900 million,
and net income attributable to parent company shareholders at ¥11,000 million.
(The main assumptions and points for revising the plan)(i)

Information systems at unconsolidated ACJ is expected to remain on a growth trend,
however, for parking systems, the demand generated by the Olympics is expected to
weaken as it come to a full circle. As for environmental systems, it is expected that the
US-China trade conﬂict will affect both unconsolidated ACJ and overseas group companies.
(ii) Amano McGann Inc., of North America, which is suffering from product issues, is expected to resolve the problems by mid 2019 and begin to recover. However, the accumulated P&L for the ﬁrst half will remain in deﬁcit.
(iii) We plan to record loss on sales of ﬁxed assets as an extraordinary loss due to the sale of
low-utilization real estate in Japan.

Numerical targets

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

FY 2017(ended March 2018)(Results)
AmountYoY (%)
124,405
3.6%
14,3509.0%
11.5%–
15,0609.1%
10,0198.6%

3FY 2018(ended March 2019)(Results)
AmountYoY (%)
131,713
5.9
15,161
5.7
11.5%–
16,090
6.8
9,142

(8.8)

FY 2019(ending March 2020)
Amount138,000
16,50012.0%
16,900YoY (%)
4.8
8.8
–
5.0

11,00020.3

3. Basic Policy on Distribution of Proﬁts and Payment of Dividends for This Fiscal Yearand the Next
Amano places great importance on its policy of paying dividends to shareholders. Its fundamental policy to return proﬁts to shareholders is to make appropriate performance-based
distributions and to buy back shares, as it deems necessary. The Company aims to maintain adividend payout ratio of at least 40% on a consolidated basis and a net asset dividend rate ofat least 2.5%. However, in order to further enhance shareholder proﬁt returns we are considering to newly adopt the concept of Total Return Ratio in which the target ratio shall be at least
55%.
In line with this policy, taking into account our current-year operations results, we plan to pay
a year-end dividend of ¥35 per share, and the annual per-share dividend for this ﬁscal year willbe ¥60 (including ¥25 per share paid as the interim dividend), an increase of ¥3 comparedwith the previous ﬁscal year.
Furthermore, in line with the newly adopted target for Total Return Ratio, we plan to payout aspecial dividend of ¥20 per share, which, combined with the above annual dividend of ¥60,
the total will be ¥80 per share representing an increase of ¥23 compared to last year. As a result, the consolidated payout ratio will be 65.9%, the net asset dividend rate will be 5.7%, andthe Total Return Ratio will be 65.9%. Moreover, the Total Return Ratio will be 91.4% if we take
into consideration the share buy-back between October 2018 and March 2019, which is prior
to the adoption of Total Return Ratio.
With regard to the dividend for the next ﬁscal year ending March 31, 2020, in line with our
Basic Policy on Distribution of Proﬁts and in view of our Outlook for the next ﬁscal year, we
aim to pay an annual per-share dividend of ¥64 (with an interim dividend of ¥28 and a yearend dividend of ¥36). We also intend to achieve the Total Return Ratio target of 55% or above
through dividends and ﬂexible use of share buy-back.
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 growthﬁelds, 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.

Hiroyuki TSUDA
President
Representative Director

4General Business Results
Business Results in the Year Ended March 31, 2019

General Business Results for This
Fiscal Year
During the consolidated fiscal year
under review, the U.S. economy
remained ﬁrm while the uncertainties remained regarding political andeconomic trends mainly arising fromtrade issues, the Chinese economic
slowdown and the problems surrounding Brexit. In this situation, theJapanese economy remained on amoderate recover y trend, as theemployment environment continued
to improve and corporate earnings
and capital investment were solid
despite current signs of a stagnation.
Amid this business environment, theAmano Group set forth the management concept of “The 2nd Stage
Towards a 100-year Company—
Innovative Creation of Value for
Sustainable Growth” in the 7th Medium-term Business Plan launchedin April 2017, aiming at achieving
growth in Japan, Nor th America,
Europe and Asia, respectively. The
Amano Group has also been striving
to strengthen management practices
through cost reduction activities andAmano’s work style reform methodology.

As a result of the above, during the
fiscal year under review, the Company recorded sales of ¥131,713
million, up by 5.9% year-on-year. Operating proﬁt increased by 5.7% to¥15,161 million and ordinary proﬁt
went up by 6.8% to ¥16,090 million,
resulting in increases in both sales
and profit. Meanwhile, net income
attributable to owners of the parent company decreased by 8.8% to¥9,142 million.
(Main factors behind the businessresults)(i) For Amano, on an unconsolidated
basis, sales of time & attendance(T&A) management software andterminals, which are its mainstay
products, were boosted by thedemand generated by “work stylereform.” The Environmental Systems business also grew as capital
investment in Japan was generallyﬁrm.
(ii) Performance of the Group companies in Japan, Europe and Asia
remained favorable.

(iii) In North America, the malfunctions observed at Amano McGann, Inc. remained unresolved,r e s u l t i n g i n a ye a r- o n - ye a r
increase of the loss. However,the Group recorded increases
in sales and operating and ordinary proﬁt on a consolidated
basis as the loss was covered by
the profits recorded at Amanoon an unconsolidated basis andGroup companies in other regions.
(iv) In terms of extraordinary losses,
Amano, on an unconsolidated
basis, posted a loss on disposalof ﬁxed assets of ¥1,143 million
following the sale of low utilization real estate, as initially scheduled. Additionally, following theunfavorable results for Amano
McGann, Inc. in North America,
the Group posted an impairment loss of ¥220 million andan income tax adjustment of¥423 million mainly due to reversal of deferred tax assets. As
a result, net income decreased
year on year.
The following is a breakdown ofsales by business division.

5

Sales by business division(Unit: Millions of yen)

FY2017FY2018(April 1, 2017–March 31, 2018) (April 1, 2018–March 31, 2019)
Amount Ratio (%) Amount Ratio (%)

Category
Time Information System business:
Information Systems
Time Management Products
Parking Systems
Subtotal
Environment System business:
Environmental Systems
Clean Systems
Subtotal
Total

Time Information System business• Information Systems:
Time & attendance (T&A), payroll,human-resource management, access
control, and cafeteria systems• Time Management Products:
Time recorders and time stamps• Parking Systems:
Parking and bicycle-parking space
management systems, and commissioned parking lot management
serviceParking and bicycle-parking
space management systems, andcommissioned parking lot management service
Sales in this business totaled¥96,665 million, representing an increase of ¥5,397 million (5.9%) yearon-year. The following is a breakdown of sales by business division.

Information Systems¥29,176 million (up 9.0% year-on-year)

In this business, against the backdropof the enactment of the bills related
to the “wor k style reform” promoted by the Japanese government,
attention is turning to the future

ChangeAmount%26,7593,751
60,757
91,268

21.5
3.0
48.8
73.3

29,176
3,609
63,87996,665

22.2
2.7
48.5
73.4

2,416
(141)
3,122
5,397

9.0
(3.8)
5.1
5.9

21,993
11,14333,136
124,405

17.7
9.0
26.7
100.0

23,833
11,21335,047
131,713

18.1
8.5
26.6
100.0

1,840
70
1,911
7,308

8.4
0.6
5.8
5.9

trends of companies’ efforts to address long working hours, improve
productivity and make full use ofdiverse human resources.
In response to these market conditions, the Company, being “Amano—
active in the area of HR (Human
Resources),” added access control
and security to the list of its “3-in-1”
proposal, comprising time & attendance (T&A), payroll, and humanresource management, thus striving
to bolster its activities to provide
total solutions from system ownership to system use.
Domestic sales for the current term
were as follows. For Amano, on an
unconsolidated basis, software sales
increased by ¥1,074 million (15.6%),
hardware sales increased by ¥359
million (8.6%), and sales generated
by maintenance contracts and supplies ser vices increased by ¥443
million (10.8%) year-on-year. The increase in software sales was mainly
attributable to favorable orders for“TimePro-VG” a piece of software
for medium-sized and large businesses, and “TimePro-NX” for small

6

to medium-sized businesses. The
increase in hardware sales was due
to increased orders from the public
sector and several projects requiring multiple units. The cloud services
developed by Amano Business Solutions Corporation continued toperform strongly.
Overall overseas sales increasedby ¥828 million (8.1%), as the salesof both Accu-Time Systems, Inc. inNorth America and Horoquartz S.A.
in Europe increased.

Time Management Products¥3,609 million (down 3.8% year-on-year)

Although there is constant demand for standard devices, thetrend toward lower pr ices has
continued in this business.
In this mar ket environment, theCompany has been wor king on
expanding sales of its “TimeP@CK
series” time recorders, which areequipped with aggregation software compatible with PCs andoffer improved usability and functionality, as well as concentrating
on expanding its customer base

through the promotion of “Userc l u b,” a fe e - b a s e d s e r v i c e fo r
members.
Over all domestic sales for thecurrent term decreased by ¥26
million (0.9%) year-on-year as increased sales of “TimeP@CK-iC IV
CL” were offset by decreased salesof time recorders.
Overall overseas sales decreasedby ¥120 million (14.2%), as sales inNorth America and Asia fell whilesales in Europe were ﬂat.

Parking Systems¥63,879 million (up 5.1% year-on-year)

To respond to the increasingly diverse needs of parking lot management in Japan, the Parking Systems
business division has been working
on improving the efficiency andreducing the cost of par king lot
management, increasing the levelof convenience for parking lot users, ensuring safety and security inparking lots, and integration with theInternet.
In response to these market cond i t i o n s , t h e C o m p a ny f u r t h e rstrengthened its cooperation withmajor parking lot management ﬁrms
and, at the same time, concentrated
on offering various services to small
to medium-sized parking lot management firms through its parking
lot data centers. The Company has
also worked to improve the functionality and usability of its systemequipment and made efforts to expand into new markets, such as bicycle parking systems, security-gate
systems and toll road systems, aswell as strengthening proposals for
improving parking lot management
efﬁciency and making new proposals

for enhancing parking lot services tousers.
Domestic sales for the current term
were as follows. For Amano, on an
unconsolidated basis, while domestic
parking equipment sales decreasedby ¥329 million (1.6%) partly due
to the effect of the large-scale project in the previous term, despite
the increase in projects for management firms, sales generated bymaintenance contracts and supplies
services increased by ¥154 million(1.6%). Amano Management Service Corporation’s commissioned
parking lot management businesshas been steadily expanding withincreased sales, and the number ofparking spaces under management
increased by 30,700 (7.1%) fromthe end of the previous ﬁscal year.
Overall overseas sales increased by¥3,118 million (15.7%) due to an increase in sales in the Asian region as
the commissioned parking lot management business expanded steadily,mainly in Korea.

Environment System business• Environmental Systems:
Standard dust collectors, large dust
collection systems, pneumatic powderconveyance systems, high-temperature hazardous-gas removal systems,
and deodorization systems• Clean Systems:
Cleaning equipment, dry-carecleaning systems, cleaning management services, and electrolytic
water generators
The sales in this business totaled¥35,047 million, up by ¥1,911 million (5.8%) year-on-year. The following is a breakdown of sales by business division.

7

Environmental Systems¥23,833 million (up 8.4% year-on-year)

In Environmental Systems, while theChinese economy continues to slow,
domestic capital investment hasremained solid despite its sluggishness. Therefore, we believe that thebusiness environment remains on arecovery trend.
In this mar ket environment, theCompany’s domestic strategy focused on capitalizing the demand forits standard equipment by strengthening proposals, mainly targetingcompanies related to machine tools,
electronic par ts and automobiles,
while seeking to win additional
orders from customers in the pharmaceutical, foods and cosmetics
markets. Meanwhile, the Company
enhanced cooperation with its overseas Group companies, reinforced its
platforms for engineering, sales andservices. Furthermore, the Company
endeavored to achieve greater costcompetitiveness by expanding its
local procurement, while observing
the investment trend of Japanesecompanies operating overseas.
During the current term for Amano,
on an unconsolidated basis, domestic sales of standard equipment increased by ¥322 million (4.1%), salesof large-scale systems increased by¥875 million (16.1%) and sales generated by maintenance contracts
and supplies services increased by¥52 million (1.0%) year-on-year.
Overall overseas sales increased by¥506 million (13.3%) due to sales
increases in Asia, mainly led by China, Thailand and the Philippines.

Clean Systems¥11,213 million (up 0.6% year-on-year)

In Clean Systems, while the trend ofcompanies trying to reduce cleaning
costs continues domestically amid ashortage of sanitary workers in thebuilding maintenance industry, needs
for proposals that lead to higher
cleaning efficiency and improved
quality have been increasing.
In response to these market conditions, we strengthened our proposals addressing cleaning issues
companies are facing, by introducing new cleaning techniques using
cleaning robots and by promoting
the new automatic ﬂoor scrubbers“EG series” along with the compact
cordless polishers which features
improved safety and usability.
For this fiscal year, overall domestic sales of cleaning equipment
increased by ¥89 million (4.1%)
and domestic sales generated bymaintenance contracts and supplies
ser vices increased by ¥1 million(0.1%) year-on-year due to Amano’s
increased sales of polishers, carpet
cleaners and scrubbers on an unconsolidated basis.
Overall overseas sales decreasedby ¥37 million (0.7%) despite thesolid performance of the wooden
floor sanding equipment businessin North America, as other cleaning
equipment sales were sluggish andsales decreasedr.

General Financial Condition
for This Fiscal Year
Since the current consolidated fiscal year, the representation has beenchanged for deferred tax assets and deferred tax liabilities, and the ﬁgures after
the reclassiﬁcation reﬂecting the change
were compared and analyzed with theﬁgures as of end of the previous consolidated ﬁscal year.

• Assets
Total assets as of March 31, 2019
amounted to ¥147,609 million, up by¥2,169 million from the previous fiscal year-end. Current assets increasedby ¥3,384 million year-on-year. Thiswas mainly due to increases of ¥1,033
million in cash and bank deposits and¥1,734 million in notes and accounts
receivable-trade. Fixed assets decreasedby ¥1,214 million year-on-year. This wasprimarily attributable to decrease of¥1,869 million in tangible fixed assets,
despite an increase of ¥414 million in
intangible ﬁxed assets.
• Liabilities
Total liabilities as of March 31, 2019
amounted to ¥41,017 million, up by¥1,211 million from the previous ﬁscal
year-end. Current liabilities increasedby ¥1,199 million year-on-year. This was
mainly due to increases of ¥560 million
in electronically recorded obligationsand ¥294 million in short-term bankloans and ¥588 million in other current
liabilities following an increase in Advance received. Fixed liabilities increasedby ¥12 million year-on-year.This was primarily attributable to increases of ¥95
million in provision for stock benefitand ¥83 million in provision for directors’ stock beneﬁt, despite a decrease of

8¥235 million in lease obligations.

• Net Assets
Total net assets as of March 31, 2019
amounted to ¥106,592 million, up by¥957 million from the previous fiscal
year-end. This was primarily attributable to increase of ¥2,397 million inshareholders’ equity resulting from therecording of net income attributable toshareholders of the parent company,
despite a decrease of ¥1,527 million inaccumulated other comprehensive income following a decrease in translation
adjustments.

Summary of Cash Flows forThis Fiscal Year
Consolidated cash and cash equivalents
increased by ¥2,255 million from theprevious fiscal year-end to a total of¥42,487 million as of March 31, 2019.
The status of each type of cash ﬂow at
year-end and the underlying factors are
as follows.

• Cash ﬂow from operating activities
Net cash provided by operating activities totaled ¥15,719 million. This was
attributable primarily to income before
income taxes amounting to ¥14,834
million, and depreciation and amortization amounting to ¥5,849 million, despite income taxes payments amounting
to ¥5,473 million.
• Cash ﬂow from investing activities
Net cash used in investing activities totaled −¥6,133 million. This was
mainly because, despite the recordingof ¥9,830 million in proceeds fromwithdrawal of time deposits and ¥2,000
million in proceeds from redemption of
securities, the Company recorded expenditures amounting to ¥8,544 million

in time deposits, ¥2,800 million to purchase tangible ﬁxed assets, ¥2,145 million to purchase intangible ﬁxed assets,¥2,112 million for business acquisitions,and ¥2,000 million to purchase securities.

• Cash ﬂow from ﬁnancing activities
Net cash used in financing activities
amounted to −¥6,800 million. This was
chieﬂy due to the recording of expenditures amounting to ¥4,486 million in
payment of dividends, ¥2,328 million inpurchase of treasury stock, and ¥1,399
million in repayment of finance leaseobligations, despite the recording of¥1,150 million in proceeds from saleand leaseback.

Future Outlook
In the next ﬁscal year ending March 31,
2020, various uncertainties will remaininternationally over developments intrade frictions between the UnitedStates and China, in addition to signsof the economic slowdown in China.
In this situation, the Japanese economy
will likely remain on a recovery trend
as capital investment for improvements
in productivity and laborsaving, as well
as for other purposes, will remain ﬁrm
on the back of the “work style reform”,
although temporary changes in demand
are expected following the increase in
consumption taxes.
Amid this business environment, Amano
Corporation and its Group companies
will set “The 2nd Stage Towards a 100year Company-Innovative Creation of
Value for Sustainable Growth” as its
management concept and work to address key issues in the 7th Mediumterm Business Plan described in “3.
Business Policies” on page 1 with a viewto maximizing the corporate value of

Amano Corporation.
For the next fiscal year ending March
31, 2020, we have revised our forecast
to net sales at ¥138,000 million, operating profit at ¥16,500 million, ordinary
profit at ¥16,900 million and net income attributable to parent company
shareholders at ¥11,000 million. For
details please refer to the numerical targets indicated on page 3, in “3. Business
Policies”.
Furthermore, this forecast assumes thecurrency exchange rates of ¥105 to the
US dollar and ¥125 to the euro.

Operating and Other Risk Factors
Matters relating to the qualitative information contained in these summary
ﬁnancial statements and relating to theconsolidated financial statements that
could be envisaged as having a possible
material impact on investors are described below.
Every effort are made to identify factorsthat may now or in the future pose arisk to the undertaking of business by
the Amano Group, and these risk factors are then eliminated or otherwise
managed in the course of business.
Forward-looking statements are current
as of the date of the release of theseﬁnancial results (April 24, 2019).
(i) Impact on earnings due to changes inthe business environment
The Amano Group uses the unique
technologies and know-how it has accumulated to provide customers withhigh-quality products, ser vices andsolutions, thereby gaining large market
shares in each sphere of business inJapan, North America, Europe, and Asia,and developing its business globally.
In the year ended March 31, 2019, theTime Information System business ac-

9

counted for 73.4% of total sales, and theEnvironment System business accounted
for 26.6%. Before the deduction of unallocated expenses, the Time Information
System business contributed 70.7% tooperating proﬁt, while the Environment
System business contributed 29.3%. In
terms of weighted average sales overthe last ﬁve years, the Time Information
System business accounted for 72.6% of
total sales and 71.6% of operating proﬁt.
One future risk factor is that if market
expansion is forecast for a businessactivity within the Time Information System business segment (which accounts
for a large proportion of the Group’sbusiness) for such reasons as a significant change in the demand structure or
the creation of a new market, entities inother industries or other powerful competitors may be tempted to enter themarket. In such an event, if a competitor
were to enter with innovative products
or solutions that surpass Amano’s, theAmano 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 business activities
on a global scale and has production
and sales bases overseas. In view of this,the Group’s business results may be
impacted by fluctuations in exchange
rates when the proceeds for overseas
transactions are converted into yen.
(iii) Information security
In the course of providing system solutions and developing cloud businessservices (e.g., ASP, SaaS, and hosting services), the Amano Group handles 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.,encrypting hard disk drives and external
media) as well as provided periodic staff
training through e-learning. Furthermore,
the Company obtained the Privacy
Mark certiﬁcation in February 2014 andhas implemented all possible measures
to ensure information security, including
supervision of service providers andthorough compliance with internal rules.
Never theless, the occurrence of an
unforeseen situation that results in loss
or leakage of confidential or personal
information as described above could
have an adverse material impact on theGroup’s business performance due tofactors such as loss of conﬁdence.
(iv) Natural disasters
Natural disaster s (e.g., large-scale

ear thquakes, windstorms, or floods)
may damage human lives or property.
The Amano Group continues to takenecessary measures at ordinary times
comprising: 1) imposition of requirement for employees to carry a disasteremergency contact card at all times; 2)development of emergency contact
networks and personnel safety checksystem; 3) relocation of ﬁle servers toexternal data centers; 4) developmentof a preparedness for setting up the disaster management headquarters at thetime an emergency occurs. However,in the event of a natural disaster, theGroup may temporarily lose the ability
to continue to perform its operating
activities due to damage to its sales
business sites and production bases, orto employees experiencing difﬁculties incarrying out their duties.
(v) Overseas business development

The Amano Group has been developing its business globally in Japan, North
America, Europe, and Asia. Therefore,
there is a possibility that a situation
may arise in which business operations
are disrupted due to the applicationof unique laws, ordinances, or regulations or social disorder due to political
disturbances, war, or terrorism, etc. in
countries or regions where the Group
conducts business, which may adversely
impact the Group’s business performance.

Reference: Trend of cash ﬂow indicators
As of Mar. 31, 2015

As of Mar. 31, 2016

As of Mar. 31, 2017

As of Mar. 31, 2018

As of Mar. 31, 2019

Equity ratio (%)

69.8

69.5

71.8

72.3

71.8

Fair value equity ratio (%)

83.7

99.4

122.6

150.1

132.5

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

52.2

25.5

16.0

11.2

14.0

Interest coverage ratio

122.9

292.2

447.8

483.5

539.4

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

10

Topics
Time Information Systems
April 2019, Labor Reform & Related
Acts were enforced
Strong Orders for TimePro-VG &VG Cloud
The Labor Reform & Related Acts wereenacted in June 2018 and enforced in April
2019.
This major revision for the first time inabout 70 years requires companies to seek
new management duties, such as the regulation of working hours and mandatory
acquisition of paid leave. In addition, evenunder the new highly professional systemthat has no restrictions on working hours,
the calculations thereof and vacations, inview of healthcare obligations, companies
are required to manage the working timeof these professionals. Therefore, morethan ever, the management of employee
work time has become impor tant forcompanies.
Medium and large-sized companies are accelerating the introduction of in-house systems adapted to the legal reforms, and weare receiving many orders for T&A management systems, namely the “TimeProVG”, from well-known companies withover 2,000 employees. In addition, many
companies are taking this oppor tunity
to switch to cloud services, thus orders
for the “TimePro-VG Cloud”, which waslaunched April last year, are also strong.

For some small and medium-sized businesses and industries a regulatory grace
period is applied and for such businesses,
the new reforms will be applied gradually
over the coming years. While further market expansion is expected in the future, wewill work to provide labor management
systems adapted to the latest labor rules,
and will contribute to enterprise efforts
to reform their way of working and to improve their productivity.

The Pneumatic Powder Conveying systems,
which are mainly used by the manufacturesof chemicals and tires in their production
processes, is now ﬁnding new applicationsin the smar tphone and electric vehicle(EV) industry. The increased popularity ofsmartphones and electric vehicles (EVs)has spurred the demand for capital investments to raise production capabilities and
we are now receiving orders from secondary battery related companies in China
and Korea. Going forward, we will seek toexpand our business by strengthening our
proposals to areas of strong demand, suchas battery materials and resin ﬁlms etc., inboth domestic and overseas markets.

Environmental Systems
Strong sales of the Pulse-jet Dust
Collector, our anchor product
The Pneumatic Powder Conveying
system is playing a major role in thetransportation of secondary battery
materials.
PiF Serise

Capital investment by domestic companies
is firm, and sales for both standard dust
collectors and large-scale systems remains
steady. We have completed the launchof all 9 types of pulse-jet dust collectors(PiF series), which is our anchor productline. The wider offering has improved ourcompetitiveness, so we are now ready to
expand sales.

11

Pneumatic Powder Conveying System

Amano USA Holdings, Inc.
Amano Cincinnati, Inc.
Amano Cincinnati, Inc. released the latest addition to
our data collection terminal line 3rd Qtr. of last year.
This new terminal, MTX-30 with ﬁngerprint recognition and WIFI communication has been well received
by all sales channels. It is now in our major accountdistribution channel and is selling well.
In our continued commitment to keep pace withchanging technology we are preparing to release ourlatest addition to our time information systems product suite. This new line of terminals will include facialrecognition and will take employee veriﬁcation to a
new level. This new product offering will work with
our Time Guardian software suite and incorporate
both WIFI communications as well as real time pushtechnology. Real time (push) communication withtime and attendance has been a growing requirement. Even small business customers expect to haveaccess to real time data for their employees. This
technology eliminates the requirement to poll individual devices, the data is sent to the software immediately after the employee punches at the terminal.
We plan to release this new terminal line 3rd Qtr. of
2019.

As we continue to develop new technologies for the
OATS compliant market, we are preparing to release
the next generation of the popular TS-3000i. The
new model, TS-4000i will incorporate a new communication protocol device. This will help eliminate
the potential for interference with network scanningsoftware. This is primarily used by large trading ﬁrms
concerned with security vulnerabilities. The release isscheduled for late 3rd Qtr.

popularity, exceeding 2017 sales by approximately
25%.
ATS’ TimeCom business experienced
continued growthwith a 17% increase
in recurring subscription revenue over2017. The TimeCom
Solution (“TimeCom”)
includes a TCD andrecurring subscriptions
for hosting and professional services. TimeCom allows customers to link remote TCDs to theirEnterprise Resource Planning (ERP), Human CapitalManagement (HCM) or Workforce Management(WFM) solutions. It offers encryption and enhanced
security to protect all potentially sensitive data andcan be implemented in 90 days or less.
At the heart of the ATS TimeCom solution is the
TimeCom middleware which resides on Amazon
Web Services’ cloud-based infrastructure and serves
as a communication link between the TCD and the
ATS customer’s system. In 2018, ATS continued toenhance this middleware with the addition of many
new employee self-service features. Such featuresenhanced the employer-employee relationship byallowing individual employees the ability to view theirwork schedules, request time off, enter tip income,and attest to their actual time worked. Employees
can complete these tasks quickly and conveniently
using the ATS time collection device.
In 2018, ATS launched a customer-facing Portal.
The Portal is designed for use by all ATS customers– including value added resellers (VARs) and direct
end-user companies. Representatives within theseorganizations can assign users and manage their roles
and responsibilities within the Portal. The Portal
enables ATS’s customers to remotely monitor their
TCD operations, send and receive files, including
software development kits (SDK), software updates
and supporting documentation, and enter requests
for technical support from ATS.

Accu-Time Systems, Inc.
Accu-Time Systems, Inc. (ATS) continued with strong
performance in 2018 with sales growth in both its
hardware and cloud-based TimeCom businesses,
resulting in the shipment of more than 27,000 timeand attendance terminals. These ATS terminals, also
known as Time Collection Devices (TCD), continued
to evolve in 2018 to meet our customers’ needs forcustomization, new functionality, and enhancements.
The PeoplePoint terminal, which is available on bothLinux and Android platforms, continued to grow in

Also in 2018, operational efﬁciency became an areaof increased focus as ATS positioned itself for growthin 2018 and beyond. During the year, ATS introduced the Set-up Server, a web-based applicationthat allows ATS to more efﬁciently offer a provision-

12

ing service to its customers. This semi-automatedprovisioning process allows ATS to conﬁgure speciﬁc
settings and load a VAR customer’s proprietary application onto a time and attendance terminal before
it leaves the factory. This provides tremendous
beneﬁt to ATS customers in that it allows for a terminal to be shipped directly to a customer location
as a plug and play device, facilitating a fast and effortless installation process. The provisioning service
is offered to our customers for an incremental fee
per terminal. ATS prides itself on partnering with its
customers to provide value-added products and services to meet their evolving needs in the workforce
management landscape.

Amano McGann, Inc.
Have You Met Aria?
Aria debuted in November of 2018 tomuch excitement at
the National Parking
Association Convention and Expo in
Las Vegas, Nevada.
Combining over 22 years of CVPS’ nimble software
success and “get it done” attitude with over 40 yearsof Amano McGann’s U.S.-based hardware manufacturing expertise, Aria utilizes off-the-shelf IP and USB
hardware components and the CVPS software backend to deliver a robust PARCS solution suitable fora wide range of clients’ self and valet parking needs.
The new system was initially installed in Cincinnati,
Ohio and has since been installed in Nashville, Tennessee; Orlando, Florida; New York, New York; andLos Angeles, California with additional contracts inthe pipeline.

Pro+ Software
Accurate, timely data is the key to making informed,
strategic business decisions. To meet the needs ofa connected operation, Amano McGann released
Pro+ Parking Management Software toward the endof 2018. This solution provides a dynamic, real-timeview of a client’s assets and makes it easy for themto manage all revenue and access control functions
in one fully-scalable, feature-rich program. Pro+ includes multi-credential access, multi-tenant management, digital ticket imaging, system notiﬁcations, andmore in a browser-based user interface. Paired within-lane cameras, Pro+ is LPR-capable and facilitates
tighter revenue controls and frictionless entry andexit.
Continued Canadian Success
Amano McGann Canada, Inc. operations have continued the growth trend experienced in 2018and arewell positioned to move into 2020. The Overture
product line has been an especially strong motivatorwith high-proﬁle, successful installations including the
Brockville General Hospital in Brockville, Ontario
and a dealer installation at the Memorial Parkade
in Winnipeg, Manitoba. Western Canada has also
experienced a positive trend with several projected
installations for the summer of 2019 which include
the Meadowview Mile in Calgary, Alberta. This installation will feature all Amano McGann product lines
including parking, security, and video surveillance.

Projects Awarded
The City of Rock Hill | OPUSeries
The Amano McGann Carolinas offices, establishedlast year, have been experiencing growth and projectsuccess in the region. The team executed a major
installation for the City of Rock Hill, South Carolina
in the latter half of 2018. The City wanted a scalable
solution with integrations for the future expansionof their parking program. To provide residents andvisitors to the City with an efficient, user-friendly
parking experience, the City chose Amano McGann’s
OPUSeries line of PARCS. Further enhancement isrealized through the integration of Parker Technologies video intercom solution and eParcSuite, Amano
McGann’s proprietary, web-based validation solution.
The project also features Amano McGann’s onstreet parking system, Sprite powered by Metric, tostreamline the City’s municipal on-street program.
More parking structures will be added to the project
over time to ensure the City of Rock Hill’s parking
patronage has adequate options.
University of Texas Health and Science Center San
Antonio | Overture Series

Aging infrastructure and outdated parking equipment led to equipment failures and subsequent
revenue loss for the University Parking Department.
As such, they looked for a technology-forward solution to improve the end-user experience, simplify
operations, minimize operational costs, and increase
revenue. This initiative led to the procurement of
Amano McGann’s Overture Line of Parking Accessand Revenue Control Systems hardware, Overture
Management System software, and other technologies which resulted in an immediate return on
investment. The University realized an immediate
30% increase in daily revenue, on average since thesystem went live. Lane-time has decreased by 81%
from an average of 82 seconds to 15 seconds. The
installation was so well received that the University iscommitted to implementing Overture in three moregarage structures as well as numerous other surface
lots. By adopting the modular SaaS Overture model,
the University has future-proofed itself for expansion
and the advent of future technologies.

Amano Pioneer Eclipse Corporation
Amano Pioneer Eclipse Corporation (APEC), which
manufactures and sells products under the Pioneer
Eclipse, American Sanders (AS) and Amano Environmental Americas (AEA) brands, ﬁnished the yearwith modest growth in sales over the prior year,
although behind its total sales plan. There wereseveral areas where signiﬁcant growth occurred, including 33% growth with Home Depot, 29% growthin APEC’s international wood floor segment, 47%
growth in the Australian cleaning business, and 26%
growth in AEA equipment.
Continuing its course as an industry leader in new
product development, APEC launched multiple new
products in 2018, including the 300BU2728, a newBattery Burnisher that can accommodate burnishing pads up to 28”
in diameter. Thishigh performanceburnisher offers increased productivity,
which is attractive tolarge building service
contractors. The
300BU2728 is currently being tested by several large
retailers in North America and Australia. 2018 also
saw the launch of the PowerLab 120, a device which
is used to efﬁciently diagnose electrical problems on
120V machines or tools, as well as monitor job site
power delivery that can affect machine performance.
Additionally, to meet the evolving industry needs inﬂoor care, APEC extended its PowerPolish line withnew 5” diamond discs designed for concrete ﬂoor
maintenance.
APEC chemical product launches in 2018 ranged
from facility cleaning chemicals to soaps, also expanding the ﬂoor coating
line with a premium highsolids acrylic polymer
coating and a resilient low
maintenance coating. Private labeling of chemicals
in the cleaning industry
continued to be a strong
segment for APEC with 15% growth in 2018.
In the professional wood ﬂoor market, the American
Sanders brand continued as the industry’s #1 provider of professional edgers with the launch of the EZ-E
extension edger. This product was received well inthe marketplace,with initial sales
exceeding plan by
68%. The EZ-E is13

an extension edger with interchangeable 8” and 13”
sanding arms, and is engineered for high performanceand low maintenance.
American Sanders TimberGuard product line ofwood floor finishes experienced strong growth in2018, enhanced by the launch of TimberGuard Select. This single-component water-based urethane
blend is engineered for residential or light commercial
applications and expanded the range of applicationsof the TimberGuard productline. The TimberGuard Sport
products achieved certification by the Maple Flooring
Manufacturers Association.
This MFMA designation ishighly valued in the sports
ﬂooring market.
With the implementationof Oracle’s JD Edwards (JDE) enterprise businesssoftware solution completed in February, a focus
on manufacturing process improvement continued
throughout the year with the implementation ofwork station efﬁciency and improved inventory management. Overall efﬁciency of plant operations has
improved by 18.5%.

Amano Europe Holdings, N.V.
Amano Europe, N.V.
Parking 4.0 or “New models for operating parking
spaces, offering maximum services at minimum costby deploying innovative solutions and optimizing existing business processes.”
In many cases, the operation of parking spaces is still
limited to a ﬁnancial transaction between the operator and the driver. Supply and demand are driven by
the location, size, rates and a number of services offered by the operator, all with the aim of making theparking space as attractive as possible for the driver.
In other words, a balance is sought between supply and demand in a typical two-dimensional, twostakeholders model. This model is outdated for thefollowing reasons:(1) Municipalities: As parking is inextricably linked
to the discussion about mobility, ecology and urban
management, the operator, regardless of the public
or private nature of the activity, will have to comply
to the framework created by the local authorities
that typically will try to maximize the speciﬁc needs
and wishes of all stakeholders such as but not limited
to residents, business, schools, city services, hospitals
and visitors. It is on the one hand to the extent thatthe authorities can create such a framework and on
the other hand to the extent that parking operators can respond to these complex needs, that we
can have a successful parking 4.0 project. Mobility,
accessibility and extended local services to otherstakeholders are new elements that the operator will

have to take into account if he wants to be successful in this new ecosystem.
(2) Technology platforms: Analogously with the
emergence of the automatically driving cars, theparking of the future, in whatever form, will also be
automated. Artiﬁcial intelligence will become an essential part in trafﬁc and occupancy forecasts, route
guidance, accurate reservations, variable tariff calculation, automatic processing of payments, includingﬁnes or fees. As such integration to other stakeholders like owners of software and service platforms will
be required.
The Shop & Stay project in the city of Genk, Belgium
is a good reﬂection of this vision.
In close cooperation
with the municipality ofGenk in Belgium, Amano Europe establishedthe Shop&Stay project. In a well-definedarea of the city, Genk
envisioned to renderimproved services tolocal shops by imposing a new framework developed by Amano. Visitors
can typically stay for free for 30 minutes. However,if they choose to participate in local economy, whichmeans they purchase in one or more of the shops inthis well-deﬁned area, they enjoy a certain comfort
by obtaining an extended free parking time. So there
is no concept of buying time. Extra time can only
be obtained by showing some activity, in this case“shopping”. In order to control the length of stay, themaximum free parking time is capped to 90 minutes.
Exceeding the allowed parking time is in all cases demotivated (enforced) by applying the maximum daily
fee which will be mailed to driver. For this function
Amano integrated to the existing public technology platform which is also used for enforcing speed
tickets on the Belgian highway. The system is 100%
seamless (ticket and paperless). Entry and exit in thewell-deﬁned area are controlled by ANPR camera’s.
Extended time can be “bought” by scanning speciﬁc
QR codes which are given to the related shops with
the AMANO APP or by sending an SMS to the dedicated AMANO Shop&Stay number. It doesn’t require on street hardware, nor physical interventions.
Expansion to application of this model with otherstakeholders, such as car parks at railway stations,
event halls, Kiss&Ride, Park&Ride, business campuses
and hospitals are obvious.
.

Amano Malaysia Sdn. Bhd.

a major Japanese trading house has invested in thiscompany and is increasing its user base through numerous campaigns.

Strengthening the ties with the payment industry! Parking lots are thenext target for cashless settlement!!
The wave of cashless settlement has become a big
topic here in Malaysia and several payment methods,
such as transportation electronic money and QR
code settlements, have been established. Under suchcircumstances, many cashless service providers areapproaching us for possible tie-ups and for future
expansion of the parking business the collaboration
with them is becoming essential.
This time, we would like to introduce the efforts of
Amano Malaysia towards cashless settlement, ourpartner and how cashless settlement works.

Touch’n Go
Similar to the Japanese SUICA card, this system uses
a prepaid electronic money card and is widely used
to pay highway tolls, public transport fares such as
trains and buses but more recently, the provider isactively promoting the system to parking lots. Since
2015, Amano Malaysia has adopted this system into
its entry / exit stations and has linked it with theparking management software. Touch’n Go will beavailable on our pay stations by Q3 2019.

Proximity Type Credit Card Settlement
With the widening use of unmanned credit card
terminals, services specialized for parking lots haveemerged. Parking operators are showing particularinterest as these terminals can handle multiple payment methods including debit cards. Amano Malaysia
has completed the development of a system speciallydesigned for AEON parking lots which is currently
undergoing on-site testing. The same system for general parking lots will be available in Q3 2019 at whichtime the system will be installed at existing sites thatare scheduled for a second phase of construction.

QR Code Settlement
The success story in China drew attention here in
Malaysia and now there are several services provided
by banks, taxi companies (Grab), Touch’n Go, andtelecommunication companies. Amano Malaysia is
working with a company called Boost, an afﬁliate of
Axiata (a telecommunications company) and a pay
station capable of Boost QR settlement is scheduled
for launch in Q3 2019. Axiata has operations in 11
Asian countries with 150 million users. As for Boost,14

Amano Korea Corporation
Developed a smart LPR with advertising function (AK-8700)
AMANO Korea Corporation newly developed asmart LPR device with integrated advertising functions (AK-8700).
This AK-8700 features a 23.8 inch high definition
LED screen which is angled at 20 degrees so that thedriver can easily see.
The embedded camera eliminates the need for aseparate computer and the other 2-line electric
screen displays the recognized vehicle license number.
When the AK-8700 recognizes a license number itruns an enquiry through its data base and displays thedesignated text and image on the 23.8 inch screen.
The text and image can be chosen by the AK-8700
owner. For example, if the visitor information (name& vehicle license number etc.) is preregistered, a welcome message, suchas “Welcome Mr. / Mrs. /Ms. XX,
please proceed to room 407” canbe displayed. Or information such as
parking lot guidance (parking fees, vacancies etc.), and event guidance canalso be displayed. In order to display
advertisements or messages tailoredto each visitor, a unique accountmust be assigned to each visitor on a web server.
Access and editing of the information is only granted
to authorized persons with the appropriate ID andpassword. The AK-8700 will be available in the 2nd
half of 2019.
The AK-8700 was exhibited at the “International Security Exhibition & Conference SECON 2019” held
March 2019 (Photo center)in air transportation systems and the technologicaladvantages in treating powders were the keys to thissuccess.
Since the ofﬁcial operation of the plant, the system
continues to meet targeted conveyance indices andthis is highly appreciated by the customer.

Amano International Trading (Shanghai) Co.,Ltd
Successful Deliver y of Pneumatic
Conveying Systems to Chinese Leading Producer of Cathode Materials for
Lithium-ion Battery
In line with massive production of EV, or Electric
Vehicles supported by China as a National Project,currently we see a big boom in on-vehicle secondary
battery industry in China.
Many market players are trying to accelerate investment for relevant plant and equipment, and also
there is swelling demand for cathode materials forlithium battery.
We, Amano International Trade (Shanghai) Co., Ltd.,
which is a subsidiary 100% owned by Amano corporation, successfully delivered pneumatic powderconveying systems to a leading Chinese providerof cathode materials recently in response to theirrequest for “treating multi-powder”, “conveying in ashort time” and “closed carrying system”.
The production process of cathode materials basically consists of “input of raw materials”, “primary
sintering stage”, “water washing stage” and “secondary crushing stage”. We received orders for new
pneumatic conveying systems to cover the entire
process of producing cathode materials on the 1stphase. Then, received subsequent orders to cover
the alteration and renewal of existing equipment on
the 2nd phase.
We were able to setup the plant in a relatively
short period of time realizing a fully automatic airtransportation system that can accommodate both
“high pressure / high density” and “low pressure /low density” conveyance. Our long-time experience•Two kinds of monthly reports
From the color of calendar, you can intuitively ﬁnd
the problem, detailed data can be seen in the formof tabular monthly reports.
•Application and approval
Overtime, leave, travel and other applications andapproval, can be completed in the mobile phone, thecloud also has a batch approval function.

Continuous Transport Unit for high pressure and highdensity conveyance

Provides the rich functionality requiredfor daily and monthly processing on
cloud side
Continuous Transport System for low pressure and low
density conveyanceLandscape of the Customer’s Headquarters

Amano Software Engineering (Shanghai) Co., Ltd.
ASE Shanghai developed a cloud T&A system called“Anqinyun”, which was released January 2019.
Anqinyun: Attendance Management Cloud Service in
Mobile attendance era
There is no need to purchase servers and attendancemachines, as long as you have a smartphone, you caneasily deploy the attendance management cloud service. Anqinyun uses enterprise WeChat and Tencent
Cloud as the platform, makes itself an assured choice.

Punch in, report monthly and apply for
approval can be done from a mobile
phone.
•Three ways to punch in
Support GPS, WiFi, iBeacon three kinds of punch in,
can be selected according to the work style.

15•Error Handling
Because you can conﬁrm the anomalies such as forgetting to punch in, data mismatch and other errors,
you can keep the system in a healthy state.
•Editable daily and monthly data
Daily data, monthly data can be modiﬁed, and notes
can be taken for avoiding forgetting the reasons forthe modiﬁcation.
•Customizable external output
Monthly data, daily data, punch-in data can be exported externally, data items and the format of themcan be speciﬁed.

AMANO Corporation and Subsidiaries

Financial Highlights
For the year ended March 31, 2019
Yen in millions and U.S. dollars in thousands, except per share amounts- See Note 4 to the Consolidated Financial Statements.
Thousands of U.S.dollars(Note 4)

Millions of Yen

2019

2018

2019

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

¥131,713¥124,405$1,186,608

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

9,142

10,01982,362

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

¥121.17¥132.12$1.092

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

80.00

57.00

0.721

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

¥147,609¥145,446$1,329,815

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

59,87957,694539,456

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

106,592

105,634

960,290¥29,176¥26,759$262,849

For the years ended March 31:

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

At March 31:

Sales by product:
Time information systems .........................................
Time management equipment ...................................

3,609

3,751

32,521

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

63,87960,757575,491

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

23,833

21,993214,720

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

11,213

11,143101,027

Note: U.S. dollar amounts have been translated at the rate of ¥111 = US $1, the rate prevailing on March 31, 2019.
- See Note 4 to the Consolidated Financial Statements.

Net Sales

Net Income

Net Income Per Share(Millions of Yen)

(Millions of Yen)

(Yen)

140,000

11,000140

130,000

10,000120,000

120

9,000

110,000
100,000

8,000

90,0007,000

80,000

100
80

6,000

70,0005,000

60,00050,0004,000

40,0003,000

30,00040

2,000

20,00020

1,000

10,000
0

60

'15

'16

'17

'18

'19

0

'15

'16

'17

16

'18

'19

0

'15

'16

'17

'18

'19

AMANO Corporation and Subsidiaries

Consolidated Balance Sheet
As at March 31, 2019

Thousands of U.S.dollars(Note 4)

Millions of Yen

ASSETS

2019

2018

2019

Cash and bank deposits (Notes 6, 15 and 17) .............

¥45,558¥44,525$410,441

Marketable securities (Note 17) .................................

1,184

1,377

10,667

Trade (Notes 7 and 17) .......................................

35,367

33,632

318,625

Less allowance for doubtful accounts ...................

(476)

(467)

(4,292)

34,89033,165314,333

Merchandise and ﬁnished goods ...........................

4,381

3,699

39,469Work in process ..................................................

767

535

6,912
45,375Current assets:

Notes and accounts receivable:

Inventories:

Raw materials and supplies ..................................

5,036

5,495

Other current assets .................................................

3,630

3,267

32,708

Total current assets ..............................................

95,44992,065859,905

Buildings and structures ...........................................

28,59930,887

257,652

Machinery and equipment ........................................

21,63820,883

194,939

Leased assets (Note 16) .............................................

5,883

6,112

53,00756,121

57,883505,599(40,371)(41,216)(363,711)

15,74916,667

141,888

6,125

7,135

55,180Property, plant and equipment, at cost:Less accumulated depreciation .........................
Land .......................................................................
Construction in progress ...........................................

236

177

2,131

Total property, plant and equipment .....................

22,111

23,980199,199

Goodwill .................................................................

2,734

2,895

24,636

Software ..................................................................

4,552

4,385

41,009Software in progress .................................................

1,985

2,261

17,890

Other intangible ﬁxed assets .....................................

3,510

2,824

31,624

Total intangible ﬁxed assets .................................

12,782

12,367

115,159(Notes 5 and 17) ......................................................

1,947

1,787

17,545Investments in securities (Note 17) ............................

8,153

7,629

73,453

Leasehold and guarantee deposits .............................

1,420

1,287

12,800Intangible ﬁxed assets :Investments and other assets:
Investments in unconsolidated subsidiaries and afﬁliates

Deferred tax assets (Note 19) .....................................

2,320

2,770

20,907

Other assets ............................................................

3,933

4,094

35,433

Less allowance for doubtful accounts ........................

(509)

(542)

(4,586)

Total investments and other assets .......................

17,266

17,026

155,552

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

¥147,609¥145,439$1,329,815

17

Thousands of U.S.dollars(Note 4)

Millions of Yen

LIABILITIES AND NET ASSETS

2019

2018

2019

Current liabilities:
Trade notes and accounts payable (Note 17) ..............
Electronically recorded monetary claims (Note 17) .....
Short-term bank loans .............................................
Lease obligations (Notes 16 and 17) ..........................
Accrued bonuses for employees ................................
Accrued bonuses for directors ...................................
Accrued income taxes ..............................................
Other current liabilities .............................................
Total current liabilities .........................................

¥7,264
7,015
463
1,105
2,531
130
3,135
13,92435,569¥7,034
6,454
169
1,296
2,477
130
3,472
13,33534,370$65,443
63,200
4,178
9,955
22,8091,171
28,246
125,445
320,448

Long-term liabilities:
Liability for retirement beneﬁts (Note 18) ...................
Long-term accounts payable .........................................
Lease obligations (Notes 16 and 17) ..........................
Deferred tax liabilities (Note 19) ................................
Asset retirement obligations ......................................
Other long-term liabilities ..........................................
Total long-term liabilities .....................................
Total liabilities .....................................................

2,478
1
2,354
43
32
536
5,447
41,017

2,446
33
2,590
5
31
326
5,434
39,80522,32815
21,215
395
290
4,834
49,077369,525

18,23919,29375,866

18,23919,293
71,140164,321
173,812683,481(4,220)109,178(1,892)
106,780(38,023)
983,590

1,921(4,189)(948)(3,216)2,225(2,997)(917)(1,689)17,312(37,745)(8,549)(28,982)

Non-controlling interests in consolidated subsidiaries ....

630

543

5,682

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

106,592¥147,609

105,634¥145,439

960,290$1,329,815

Net assets (Notes 13 and 14):
Shareholders' equity:
Common stock
Authorized - 185,476,000 shares
Issued:March 31, 2019 and 2018 - 76,657,829 sharesin 2019 and 2018 .............................................
Capital surplus ....................................................
Retained earnings ................................................
Treasury stock at cost, 1,924,625 shares in 2019
and 923,903 shares in 2018 ................................

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

The accompanying notes are an integral part of these statements.

18

AMANO Corporation and Subsidiaries

Consolidated Statement of Income, andConsolidated Statement of Comprehensive Income
For the year ended March 31, 2019

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

Millions of Yen

Net sales
Cost of sales (Note 9) ..........................................................
Gross proﬁt .........................................................
Selling, general and administrative expenses (Notes 8 and 9) ....
Operating income ................................................
Other income ( expenses ):Interest and dividend income ....................................
Interest expense .......................................................
Equity in earnings of afﬁliates ...................................
Foreign exchange gain (loss) ....................................
Gain on sale of ﬁxed assets .......................................
Loss on disposal of ﬁxed assets .................................
Loss on sale of ﬁxed assets (Note 10) ........................
Gain on sale of investments in securities (Note 17) .....
Impairment loss on ﬁxed assets (Note 11) ..................
Other, net ................................................................
Income before income taxes and non-controlling interests .....
Income taxes (Note 19):
Current ....................................................................
Deferred ..................................................................
Income before non-controlling interests ................
Non-controlling interests in net income of consolidated subsidiaries ....
Net income...........................................................

2019

2018

¥131,713
73,46758,24643,084
15,161¥124,405
69,10355,302
40,951
14,350$1,186,608
661,866
524,742
388,148
136,594

2019

345
(29)
201
(15)
25
(26)
(1,145)
141
220
(396)
14,834

288
(34)
108
(118)
8
(37)
(1)
250
–
465
15,280

3,109
(264)
1,820
(139)
230
(239)
(10,320)
1,274(1,988)
3,569
133,645

5,126
423
9,284
(142)
¥9,142

4,953
209
10,117(97)¥10,019

46,188
3,813
83,644(1,282)$82,362

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

Millions of Yen

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

2019

2018

2019

¥9,284¥10,117$83,644

Other comprehensive income (loss) (Note 12):
Net unrealized gains (losses) on other securities ........
Translation adjustments ...........................................
Retirement beneﬁts liability adjustments ...................
Share of other comprehensive income (loss) of companies
accounted for by the equity method ................................
Total other comprehensive income (loss) ................
Comprehensive income .......................................................

(303)(1,201)
(30)

289
566
68

(2,737)(10,820)(279)(0)(1,535)¥7,748(0)923¥11,041(0)(13,836)$69,808

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

¥7,615¥133¥10,915¥126$68,604$1,204

The accompanying notes are an integral part of these statements.

19

AMANO Corporation and Subsidiaries

Consolidated Statement of Changes in Net Assets
For the year ended March 31, 2019
Millions of Yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Balance at April 1, 2018
Cumulative effect of change in accounting principle
Restated balance at April 1, 2018
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

¥18,239¥19,293

18,23919,293¥71,140
70
71,211––

Balance at March 31, 2019¥18,239¥19,293

Balance at April 1, 2018
Cumulative effect of change in accounting principle
Restated balance at April 1, 2018
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, 2019

Total shareholders’equity(¥1,892)¥106,780
70(1,892)
106,851

Treasury stock(4,486)9,142(2,328)(4,486)9,142(2,328)4,655(2,328)2,326¥75,866(¥4,220)¥109,178

Accumulated other comprehensive income
Non-controllinginterests in
Net unrealized Foreign currency
Retirement
Total accumulated
gains (losses) on
translation
beneﬁts liability other comprehensive consolidated
subsidiaries
other securities
adjustments
adjustments
income (loss)¥2,225(¥2,997)(¥917)(¥1,689)
¥543
2,225

(2,997)(917)(1,689)543¥105,634
70
105,705

(303)
(303)

(1,192)(1,192)(30)(30)(1,527)(1,527)87
87(4,486)9,142(2,328)(1,439)886¥1,921(¥4,189)(¥948)(¥3,216)¥630¥106,592

Common stockThousands of U.S. dollars (Note 4)
Shareholders’ equity
Capital surplus Retained earnings Treasury stock Total shareholders’equity$173,812$640,903($17,046)$961,990
637
637
173,812641,541(17,046)
962,627

Balance at April 1, 2018
Cumulative effect of change in accounting principle
Restated balance at April 1, 2018
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

$164,321––

41,941(20,978)

20,963

Balance at March 31, 2019

$164,321$182,010$683,481($38,023)$983,590

Balance at April 1, 2018
Cumulative effect of change in accounting principle
Restated balance at April 1, 2018
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, 2019

Total net assets

164,321(40,422)(40,422)

82,362(20,978)

82,362(20,978)

Accumulated other comprehensive income
Non-controllinginterests in
Net unrealized Foreign currency
Retirement
Total accumulated
gains (losses) on
translation
beneﬁts liability other comprehensive consolidated
subsidiaries
other securities
adjustments
adjustments
income (loss)$20,047($27,001)($8,270)($15,223)$4,896
20,047(27,001)(8,270)(15,223)

4,896

Total net assets$951,663
637
952,300(40,422)(2,735)(2,735)(10,744)(10,744)

(279)
(279)

(13,759)(13,759)786
786

82,362(20,978)(12,973)
7,990$17,312($37,745)($8,549)($28,982)$5,682$960,290

20

Millions of Yen
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

Treasury stock

Balance at April 1, 2017
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

¥18,239¥19,293¥65,075(¥1,059)

Total shareholders’equity¥101,548(832)(3,954)
10,019
(832)

–

–

6,065

(832)

5,232

Balance at March 31, 2018¥18,239¥19,293¥71,140(¥1,892)¥106,780

Balance at April 1, 2017
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, 2018

(3,954)
10,019

Accumulated other comprehensive income
Non-controllinginterests in
Net unrealized Foreign currency
Retirement
Total accumulated
consolidated
gains (losses) on
translation
beneﬁts liability other comprehensubsidiaries
other securities
adjustments
adjustments
sive income (loss)¥1,934(¥3,533)(¥986)(¥2,585)
¥458

Total
net assets¥99,421

290
290

536
536

68
68

895
895

85
85

(3,954)
10,019
(832)
980
6,213

¥2,225(¥2,997)(¥917)(¥1,689)¥543¥105,634

The accompanying notes are an integral part of these statements.

21

AMANO Corporation and Subsidiaries

Consolidated Statement of Cash Flows
For the year ended March 31, 2019
Millions of Yen

Cash Flows from Operating Activities:
Income before income taxes and non-controlling interests .........
Depreciation and amortization ...........................................
Amortization of goodwill ...................................................
Impairment loss on ﬁxed assets ............................................
Increase (decrease) in liability for retirement beneﬁts ..........
Increase (decrease) in allowance for doubtful accounts .......
Interest and dividend income .............................................
Equity in earnings of afﬁliates ............................................
Interest expenses ...............................................................
Foreign currency translation (gain) loss ..............................
(Gain) loss on sale of ﬁxed assets .......................................
Loss on disposal of ﬁxed assets ..........................................
(Gain) loss on sale of investments in securities ....................
(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 refunded ........................................................
Net cash provided by operating activities ..............
Cash Flows from Investing Activities:
Payment for purchase of marketable securities ....................
Proceeds from redemption of marketable securities .............
Payment for purchase of property, plant and equipment ......
Proceeds from sale of property, plant and equipment ..........
Payment for acquisition of intangible assets ........................
Payment for acquisition of investments in securities ............
Proceeds from sale of investments in securities ...................
Increase in time deposits ....................................................
Decrease in time deposits ...................................................
Proceeds from sale of investments in subsidiaries and afﬁliates .......
Payment for business acquisition ........................................
Collection of loans .............................................................
Others ...............................................................................
Net cash used in investing activities .....................
Cash Flows from Financing Activities:
Proceeds from short-term bank loans ..................................
Repayment of short-term bank loans ..................................
Payment for acquisition of treasury stock ............................
Repayments of ﬁnance lease obligations .............................
Proceeds from sale and leaseback .......................................
Dividends paid ..................................................................
Dividends paid to minority interests ....................................
Net cash used in ﬁnancing activities ..............................
Effect of exchange rate changes on cash and cash equivalents.................
Net increase (decrease) in cash and cash equivalents ........................
Cash and cash equivalents at beginning of year .................................
Cash and cash equivalents at end of year (Note 15) ............................
The accompanying notes are an integral part of these statements.

22

Thousands of U.S.dollars(Note 4)

2019

2018

2019

¥14,834
5,849
545
220
12
2
(345)
(201)
29
36
1,120
26
(141)
(1,948)
(595)
884
496
20,825
398
(29)
(30)
(5,473)28
15,719¥15,280
5,063
511
‒
66
206
(288)
(108)
34
4
(7)
37
(250)
290
(235)
(794)
739
20,550303(34)‒(4,141)73
16,750$133,645
52,694
4,917
1,988
115
18
(3,109)(1,820)264
327
10,091239(1,274)(17,556)(5,369)7,969
4,473
187,613
3,588
(263)
(275)
(49,310)261
141,615(2,000)2,000(2,800)460(2,145)(905)
241(8,544)9,830–(2,112)–(156)(6,133)(2,000)2,150(3,107)25(2,385)(967)
300(9,179)
8,771
46
(168)
0
10
(6,500)(18,018)
18,018(25,231)
4,145(19,327)(8,161)
2,176(76,978)
88,560–(19,036)–(1,408)(55,259)

469(160)(2,328)(1,399)1,150(4,486)(46)(6,800)(528)
2,255
40,231¥42,487

158
(506)
(832)
(1,547)1,331(3,954)(41)(5,392)
103
4,961
35,270¥40,231

4,232(1,446)(20,978)(12,607)
10,368(40,422)(418)(61,270)(4,762)
20,324362,444$382,768

AMANO Corporation and Subsidiaries

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

2. Principles of Consolidation(1) Scope of Consolidation
The Company had 27 consolidated
subsidiaries at March 31, 2019. The
accompanying consolidated financial
statements include the accounts of theCompany and those of its subsidiaries
that are controlled by the Company.
Under the control concept, major subsidiaries in which the Company is able
to exercise control over operations areto be fully consolidated.
With the establishment of a subsidiary
by Corporate Divestiture (Incorporation-type company split), Amano Secure
Japan Corporation was newly consolidated during the year ended March 31,
2019.

The accounts of the overseas consolidated subsidiaries are consolidated using their ﬁnancial statements as of theirrespective fiscal year end, which falls
on December 31, 2018 and necessary
adjustments are made to their ﬁnancial
statements to reflect any significant
transactions from January 1 to March
31, 2019. All significant intercompany
balances and transactions have been
eliminated in consolidation.

(2) Accounting for Investments in
Unconsolidated Subsidiaries
and Afﬁliates
None of the 3 unconsolidated subsidiaries are accounted for by the equity
method, because the effect of their net
income or losses and retained earnings
on the accompanying consolidated financial statements is immaterial. The
affiliates accounted for by the equity
method are listed below:- Creo Co., Ltd.

3. Summary of SigniﬁcantAccounting Policies(1) Cash and Cash Equivalents
Cash and cash equivalents consist of
cash on hand, cash in banks which can
be withdrawn at any time and shortterm investments with a maturity of
three months or less when purchased
which can easily be converted to cash
and are subject to little risk of change invalue.

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

(3) Property, Plant andEquipment
Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the
declining balance method, based on theestimated useful lives, except for buildings acquired on or after April 1, 1998

23

and for facilities attached to buildings
and structures acquired on or after April
1, 2016, which are computed on thestraightline method . The ranges of theuseful lives of assets
are:Buildings and structures 5-50 years
Machinery and vehicles
7-17 years
Normal repairs and maintenance, including minor renewals and improvements, are charged to income as incurred.

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

(5) Leased Assets
Leased assets in finance lease transactions not involving transfer of ownership are depreciated by the straight-line
method over the term of the lease, witha residual value of zero.

(6) Accounting for Financial
Instruments(a) Derivatives
All derivatives are stated at their fairvalues, with changes in fair value included in net profit or loss for the period in which they arise.
(b) Securities
Securities held by the Company and its
subsidiaries are classiﬁed into four categories;
Trading securities, which are held forthe purpose of generating profits on
short-term differences in prices, arestated at their fair values, with changes
in fair values included in net profit orloss for the period in which they arise.
Additionally, securities held in trusts for
trading purposes are accounted for inthe same manner as trading securities.
Held-to-maturity debt securities, that theCompany and its subsidiaries have intent
to hold to maturity, are stated at theircosts after accounting for any premium or
discount on acquisition, which are amortized over the period to maturity.
Investments of the Company in equity
securities issued by unconsolidated
subsidiaries and afﬁliates are accounted
for by the equity method. Exceptionally,
investments in certain unconsolidated
subsidiaries and affiliates are stated atcost because the effect of application of
the equity method would be immaterial.
Other securities for which market quotations are available are stated at fairvalue. Net unrealized gains or losses onthese securities are reported as a separate item in the net assets section at a
net-of-tax amount. Other securities forwhich mar- ket quotations are unavailable are stated at cost, except as statedin the paragraph below.
In cases where the fair value of held-tomaturity debt securities, equity securities issued by unconsolidated subsidiaries and affiliates, or other securities
had dec- lined significantly and such
impairment of the value is not deemed
temporary, those securities are written
down to the fair value and the resulting
losses are included in net proﬁt or loss
for the period.

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

(8) Translation of Foreign
Currency Financial
Statements (Accounts ofOverseas Subsidiaries)
Foreign currency denominated statements of overseas consolidated subsidiaries have been translated into Japanese yen using the method prescribedby the Business Accounting Deliberation
Council of Japan. All the balance sheet
accounts of foreign subsidiaries andafﬁliates are translated at the foreign exchange rates prevailing at the respectivebalance sheet dates except for common
stock and capital surplus. On the other
hand, all the profit and loss accounts
are translated at the average foreign exchange rates for the respective periods.
Differences arising from translation arepresented as “Foreign currency translation adjustments” and “Non-controllinginterests in consolidated subsidiaries”
in the accompanying consolidated financial statements.

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

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

(9) Income Taxes(13) Accrued Directors’ Bonuses

The Company recognizes the tax effectof temporary differences between the
carrying amounts and the tax basis ofassets and liabilities. The provision forincome taxes is computed based on thepretax income included in the consolidated statement of income. The asset
and liability approach is used to recognize deferred tax assets and liabilities
for the expected future tax consequences of temporary differences.

Accrued directors’ bonuses at the balance sheet date are based on an estimate of the amounts to be paid as bonuses for servises rendered by directors
by that date.

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

24(14) Provision for stock beneﬁt
In order to prepare for the payment ofcompany stocks to employees under
the stock benefit program, provision
for stock benefit is recorded based on
the estimated amount of stock benefit
obligation corresponding to the merit
points allocated to the employees in thecurrent consolidated ﬁscal year.

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

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

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

(18) Revenue from Construction
Contracts
Revenues and costs of construction
contracts are recognized by the percentage-ofcompletion method in casethe percentage of completion for eachcontract can be reliably estimated. The
percentage of completion is measured
by the percentage of total costs incurred
to date to estimated total costs for eachcontract. The completed-contract method is applied to the contracts in casethe percentage of completion cannot be
reliably estimated.

(19) Accounting for Consumption
Taxes
Transactions subject to consumption
taxes are recorded at amounts exclusiveof consumption taxes.

(20) Change in Accounting Policy(Application of IFRS 15 “ Revenue fromContracts with Customers”)
For our subsidiaries that are subject to

IFRS accounting, we have applied IFRS 15“Revenue from Contracts with Customers”
from the current consolidated fiscal year.
In adopting this accounting standard, weapplied the permitted transitional measure
whereby the cumulative effect when applying this standard, is recognized on the effective date of application.
As a result, compared with the previous accounting standard, the balance ofretained earnings at the beginning of thecurrent consolidated ﬁscal year increasedby ¥70 million. In the current consolidated fiscal year, net sales decreased by¥21 million, income tax adjustments
decreased by ¥7 million, and net income
attributable to parent company shareholders decreased by ¥14 million.

(21) Change in Reporting Method(Application of Partial Amendments to“Accounting Standard for Tax Effect Accounting”)
Partial Amendments to “AccountingStandard for Tax Effect Accounting”(ASBJ Statement No. 28, February 16,2018) have been applied from the beginning of the current consolidated fiscal
year. Deferred tax assets are presented
in the category of investments and otherassets, and deferred tax liabilities arepresented in the category of long-term
liabilities.
As a result, ¥1,838 million of deferred
tax assets in current assets previously
presented in the consolidated balance
sheet as of March 31,2018 have been
reclassiﬁed and included within ¥2,770
million of deferred tax assets in investments and other assets.

(22) Additional Information
For the purpose of enhancing the motivation to contribute the improvementof mediumto long-term business performance and to increase the corporate
value,Amano Corporation and some ofits subsidiaries have introduced the Compensation BIP Trust system for directors(excluding external directors and directors
residing overseas) and operating ofﬁcers(excluding ofﬁcers residing overseas), as

25

well as the Employee Stock Ownership
Plan (J-ESOP) system for employees whomeet the prescribed requirements.
(a) Outline of the system
Under the system, a trust is establishedwith funds contributed by Amano Corporation. Stocks of Amano Corporation are
acquired by the trust and to be provided
to eligible persons. Under the Directors’Compensation BIP Trust, in accordancewith the stock distribution rules andbased on points granted according totheir positions and the attainment levelof numerical targets of performanceindicators,stocks of Amano Corporation
are provided by the trust to directors andoperating officers. Under the Employee
Stock Ownership Plan (J-ESOP), in accordance with the stock distribution rules
and based on points granted according
to their positions and operating performance, stocks of Amano Corporation areprovided by the trust to employees whomeet the prescribed requirements.
(b) Stocks of Amano Corporation thatremain in the trust
Stocks of Amano Corporation that remain in the trust are recorded as treasury stock in the net assets section withthe book value of the trust (excluding
incidental expenses).
The book value and the numbers of thetreasury stock at March 31, 2019 are ¥827
million and 314,300 shares,respectively.

4.United States Dollar Amounts
The Company maintains its accounting
records in Japanese yen. The U.S. dollar
amounts included in the consolidated
ﬁnan- cial statements and notes thereto
represent the arithmetical results oftranslating Japan- ese yen to U.S. dollars at a rate of ¥ 111 = US$1, the approximate effective rate of exchange
prevailing on March 31, 2019. The inclusion of U.S. dollar amounts is solely for convenience of readers outside
Japan and is not intended to imply thatyen amounts could be converted, realized, or settled in U.S. dollars at that, or
any other rate.

5. Investments in Unconsolidated Subsidiaries and Afﬁliates
Among investments in securities, the amount in aggregate corresponding to unconsolidated subsidiaries and afﬁliates at
March 31, 2019 and 2018 is as follows:
Millions of Yen

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

2019¥1,89353

Thousands of U.S.dollars ( Note 4 )2018¥1,73353

2019$17,054477

6. Assets Pledged as Collateral and Obligations Secured by Collateral
As at March 31, 2019 and 2018, the following assets were pledged as collateral:
Millions of Yen

Cash and bank deposits ………

2019
¥8

Thousands of U.S.dollars ( Note 4 )

2018
¥9

2019
$72

7. Notes and Accounts Receivable
The Company recognizes settlements of trade notes receivable when the banks actually clear the notes.
As March 31, 2019 was a holiday for ﬁnancial institutions, the following account includes the unsettled balance of tradenotes receivable due on that date in the accompanying consolidated balance sheet as of March 31, 2019.
Millions of Yen

Trade notes receivable ………

2019
¥226

Thousands of U.S.dollars ( Note 4 )

2018
¥380

2019
$2,036

8. Selling, General and Administrative Expenses
Selling, general and administrative expenses during the years ended March 31, 2019 and 2018 principally include:
Millions of Yen

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

2019¥1,699130
1,093
18,90698
79
88

Thousands of U.S.dollars ( Note 4 )2018¥1,705130
1,148
17,741
306
–
–

2019
$15,306
1,171
9,847
170,324
883
712
793

9. Research and Development Costs
Research and development costs included in selling, general and administrative expenses and manufacturing cost for the years
ended March 31, 2019 and 2018 are as follows:
Millions of Yen

Research and development costs …

2019¥1,6492018¥1,325

26

Thousands of U.S.dollars ( Note 4 )2019$14,856

10. Loss on sale of ﬁxed assets
Details of Loss on sale of ﬁxed assets for the years ended March 31, 2019 and 2018 are as follows:
Millions of Yen

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

2019
¥357
1
5
780
1,145

Thousands of U.S.dollars ( Note 4 )

2018
¥0
¥0
¥1

2019
$3,216945
7,027
10,320–¥1

11. Impairment Loss on Fixed Assets
Impairment loss on ﬁxed assets for the years ended March 31, 2019 is as follows:
Location

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

Purpose of use

Business use

Other intangible ﬁxed assets …

2019
¥141

Thousands of
U.S. dollars ( Note 4 )2019$1,270

Buildings and structures ………

78

703

Category

Millions of Yen

Method to Group Assets:
The Company and its subsidiaries group assets according to minimum units that generate cash ﬂows essentially independent
from the cash ﬂows of other assets or groups of assets.
Recognition of Impairment Loss:As the forecasted proﬁt was not expected due to poor performance, the book values of above groups of assets were reduced to therecoverable amounts, and the reductions were recognized as impairment losses based on US-GAAP.
Calculation of Recoverable Amount:
The recoverable amount for said assets is reasonably estimated based on the value in use, which was determined to be zero as no
future cash ﬂow is expected.

27

12. Other Comprehensive Income
The following table presents reclassiﬁcation adjustments and tax effects allocated to each component of other comprehensive
income (loss) for the years ended March 31, 2019 and 2018:
Millions of Yen
Net unrealized gains (losses) on other securities:
Amount arising during the year ……………………………………………
Reclassiﬁcation adjustments …………………………………………………
Amount before tax effect ……………………………………………………
Tax effect ………………………………………………………………………
Net unrealized gains (losses) on other securities …………………………
Translation adjustments:
Amount arising during the year ……………………………………………
Reclassiﬁcation adjustments …………………………………………………
Amount before tax effect ……………………………………………………
Tax effect ………………………………………………………………………
Translation adjustments ………………………………………………………
Retirement beneﬁts liability adjustments:
Amount arising during the year ……………………………………………
Reclassiﬁcation adjustments …………………………………………………
Amount before tax effect ……………………………………………………
Tax effect ………………………………………………………………………
Retirement beneﬁts liability adjustments …………………………………
Share of other comprehensive income (loss) of companies accounted for by the equity method:Amount arising during the year ……………………………………………
Reclassiﬁcation adjustments …………………………………………………
Share of other comprehensive income of companies accounted
for by the equity method ……………………………………………………
Total other comprehensive income (loss) …………………………………

28

Thousands of U.S.dollars( Note 4 )2019($1,261)(1,270)(2,541)(189)(2,737)2019(¥140)
(141)
(282)
(21)
(303)

2018
¥432
–
432
(143)
289

(1,201)–(1,201)–(1,201)

566
–
566
–
566

(10,819)–(10,819)–(10,820)

(300)
256
(44)
13
(30)

(205)
304
98
(30)
68

(2,703)
2,306
(396)
117
(279)

0
–

0
(0)

0
–

(0)
(¥1,535)

(0)
¥923

(0)
($13,836)13. Changes in Shareholders’ Equity
Changes in “Shares issued and outstanding” and “Shares of treasury stock” during the period from April 1, 2018 to March 31,
2019 are as follows:(1) Shares issued and outstanding
Share type
Common stock (shares)

As of April 1, 201876,657,829

Increase

Decrease––

As of March 31, 201976,657,829(2) Shares of treasury stock
Share type
As of April 1, 2018
Increase
Decrease
As of March 31, 2019
Common stock (shares)
923,9031,000,722–
1,924,625(Reason for change)
The increase in the number of shares is due to the purchases of 722 shares less than one unit.
The increase in the number of shares is due to the purchases of 1,000,000 shares by a resolution of the Board of Directors meeting held on October 29, 2018.
Changes in “Shares issued and outstanding” and “Shares of treasury stock” during the period from April 1, 2017 to March 31, 2018 are as follows:(1) Shares issued and outstanding
Share type
As of April 1, 2017
Increase
Decrease
As of March 31, 2018
Common stock (shares)
76,657,829––
76,657,829(2) Shares of treasury stock
Share type
As of April 1, 2017
Increase
Decrease
Common stock (shares)
607,651
316,252–(Reason for change)
The increase in the number of shares is due to the purchases of 1,952 shares less than one unit.
The increase in the number of shares is due to acquisitions of 164,900 shares by Directors’ Compensation BIP Trust.
The increase in the number of shares is due to acquisitions of 149,400 shares by Employee Stock Ownership Plan (J-ESOP).

As of March 31, 2017
923,903

14. Dividends
Information on dividends for the ﬁscal year ended March 31, 2019 is as follows:(1) Dividends paid
Resolution

Share type

Total dividend Total dividend Dividend per share Dividend per share Date of record(Millions of Yen) (Thousands of U.S.dollars)(Yen)(U.S.dollars)

Effective dateOrdinary general meeting of shareholders, Common stock¥2,585$23,294¥34$0.306 March 31, 2018 June 29, 2018
June 28, 2018
Board of directors meeting,
September 30, December 4,
Common stock¥1,901$17,128¥25$0.225October 29, 2018
2018
2018
(NOTES)“Total dividend” as determined by the Ordinary general meeting of shareholders’ resolution on June 28, 2018 includes ¥ 5 million for dividends on the Company’s shares owned by Directors’ Compensation BIP Trust and ¥ 5 million for dividends on our shares owned by Employee Stock Ownership Plan (J-ESOP).
“Total dividend” as determined by the Board of Directors’ resolution on October 29, 2018 includes ¥ 4 million for dividends on the Company’s shares owned by
Directors’ Compensation BIP Trust and ¥ 3 million for dividends on our shares owned by Employee Stock Ownership Plan (J-ESOP).
(2) Dividends for which the date of record falls in the ﬁscal year, but the effective date is after the end of the ﬁscal year.
Date of
Dividend Total dividend Total dividend Dividend per share Dividend per share
Resolution
Share type
Effective datefunding(Yen)(U.S.dollars)(Millions of Yen) (Thousands of U.S.dollars)recordOrdinary general meeting of shareholders,CommonRetained¥4,127$37,180¥55$0.495
March 31, 2019 June 28, 2019
June 27, 2019stock
earnings(NOTES)“Total dividend” as determined by the Ordinary general meeting of shareholders’ resolution on June 27, 2019 includes ¥ 9 million for dividends on the Company’s shares owned by Directors’ Compensation BIP Trust and ¥ 8 million for dividends on our shares owned by Employee Stock Ownership Plan (J-ESOP).
Information on dividends for the ﬁscal year ended March 31, 2018 is as follows:(1) Dividends paid
Total dividend
Total dividend
Dividend per share Dividend per share
Resolution
Share type
Date of record Effective date(Millions of Yen) (Thousands of U.S. dollars)(Yen)(U.S. dollars)
Ordinary general meeting of shareholders, Common stock
March 31,
June 30,¥2,205¥20,806¥29$0.274
June 29, 2017
2017
2017
September 30,
December 4,
Board of directors meeting,Commonstock¥1,749¥16,501¥23$0.2172017
2017
October 27, 2017
(NOTES)“Total dividend” as determined by the Board of Directors’ resolution on October 27, 2017 includes ¥ 3 million for dividends on the Company’s shares owned by
Directors’ Compensation BIP Trust and ¥ 3 million for dividends on our shares owned by Employee Stock Ownership Plan (J-ESOP).
(2) Dividends for which the date of record falls in the ﬁscal year, but the effective date is after the end of the ﬁscal year.
Dividend
Total dividend
Total dividend
Dividend per share Dividend per share Date of record Effective date
Resolution
Share typefunding(Millions of Yen) (Thousands of U.S. dollars)(Yen)(U.S. dollars)
Ordinary general meeting of shareholders,CommonRetained
March 31,
June 29,¥2,585$24,387¥34$0.321
June 28, 2018stock
earnings
2018
2018(NOTES)“Total dividend” as determined by the Ordinary general meeting of shareholders’ resolution on June 28, 2018 includes ¥ 5 million for dividends on the Company’s shares owned by Directors’ Compensation BIP Trust and ¥ 5 million for dividends on our shares owned by Employee Stock Ownership Plan (J-ESOP).

29

15. Cash and Cash Equivalents
Reconciliations of cash and cash equivalents to the amounts shown in the consolidated balance sheet as at March 31, 2019 and2018 are as follows:
Millions of Yen
Cash and bank deposits ………………………………
Marketable securities ………………………………
Sub total …………………………………………
Time deposits due over three months ………………
Marketable securities due over three months ………
Cash and cash equivalents …………………………

2019¥45,558
1,184
46,742(3,255)(1,000)¥42,4872018¥44,525
1,377
45,903(4,671)(1,000)¥40,231

Thousands of U.S.dollars( Note 4 )2019$410,441
10,667421,108(29,331)(9,009)$382,768(Supplemental disclosure of non-cash transactions)
The signiﬁcant non-cash transactions for the years ended March 31, 2019 and 2018 are as follows:
Millions of Yen
Leased assets ………………………………………
Lease obligations ……………………………………

2019
¥884
1,112

30

2018
¥1,045
1,290

Thousands of U.S.dollars( Note 4 )2019$7,964
10,018

16. Lease Commitments(1) Lessees’ accounting
Minimum future lease payments under operating leases subsequent to March 31, 2019 and 2018 for non-cancelable operatingleases are summarized as follows:
Millions of Yen
Due within one year ………………
Due over one year ………………
Total ………………………………

2019¥1,321
1,094¥2,415

2018
¥987
1,332
¥2,319Thousands of U.S.dollars ( Note 4 )2019$11,901
9,856$21,757(2) Lessors’ accounting
Minimum future lease income under operating leases subsequent to March 31, 2019 and 2018 for non-cancelable operatingleases is summarized as follows:
Millions of Yen
Due within one year ………………
Due over one year ………………
Total ………………………………

2019
¥101
502
¥604

2018
¥101
604
¥705

31

Thousands of U.S.dollars ( Note 4 )
2019
$910
4,523
$5,441

17. Financial Instruments
Overview(1) Management policy
The management policy of the Company is to invest surplus funds into low-risk ﬁnancial instruments. The Company has not held any high-risk ﬁnancial instruments.

(2) Financial instruments and their risks
Both notes receivable and accounts receivable as operating receivables are exposed to credit-related losses in the event of nonperformance by counterparties. Trade notes, accounts payable and electronically recorded monetary claims as trade liabilities are due and payable within one year. Marketable securities and investments in securities are exposed to changes inmarket 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 an established credit management policy, whereby credit risk exposure arising from both notes and accounts receivable is monitored on an ongoing basis in order todetect credit deterioration as well as to trigger appropriate minimizing measures at its early stages.
Held-to-maturity investments are subject to the examination and decision of the Funds Management Review Committee and accordingly, investments largely consist of negotiable
deposits and high graded securities, which are considered to have minimal credit risk.

b) Management policy for market risk (foreign currency exchange and interest rates)
Marketable securities and investment securities are marked to market and the ﬁnancial condition of the issuer (client company) is monitored periodically.
In addition, the holdings of bonds and securities, other than held-to-maturity investments, are reviewed on an ongoing basis, taking into consideration the relationship, and other factors, with the issuer.

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

(4) Supplementary explanation on the fair value of ﬁnancial instruments
The fair values of ﬁnancial instruments are based on quoted market prices. If quoted market prices are unavailable, the fair values are estimated based on the prices which are assessed asreasonable by the Company. Since the Company takes contingent variable factors into account when estimating 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, 2019 and 2018 are as follows:
Financial instruments whose fair values are difﬁcult to estimate are not stated in the following table; refer to (* 2).

(1) Cash and bank deposits ……………………
(2) Notes and accounts receivable ……………
(3) Marketable securities and investments in securities① Held-to-maturity …………………………
② Subsidiaries and afﬁliates ………………
③ Other securities ……………………………
Total (Assets) ………………………………
(4) Trade notes and accounts payable …………
(5) Electronically recorded monetary claims …
Total (Liabilities) …………………………

(1) Cash and bank deposits ……………………
(2) Notes and accounts receivable ……………
(3) Marketable securities and investments in securities① Held-to-maturity …………………………
② Subsidiaries and afﬁliates ………………
③ Other securities ……………………………
Total (Assets) ………………………………
(4) Trade notes and accounts payable …………
(5) Electronically recorded monetary claims …
Total (Liabilities) …………………………

Carrying
value¥45,558
35,367

Millions of Yen
2019
Estimated
Difference
fair value
in amounts¥45,558–
35,367
–

1,651
1,843
7,402
¥91,823

1,649
3,261
7,402
¥93,239¥7,264¥7,264

7,015¥14,279

7,015¥14,279

Carrying
value¥44,525
33,632
1,350
1,681
7,378
¥88,568¥7,034
6,454¥13,488

(¥1)
1,417
–
¥1,415–––

Millions of Yen
2018
Estimated
Difference
fair value
in amounts¥44,525–
33,632
–
1,341
2,764
7,378
¥89,642¥7,034
6,454¥13,488

32

(¥8)
1,082
–
¥1,074–––

Thousands of U.S.dollars ( Note 4 )2019
Carrying
Estimated
Difference
value
fair value
in amounts$410,441$410,441–
318,625
318,625–
14,874
16,604
66,685$827,234$65,443
63,200$128,640

14,856
29,37866,685$839,991$65,443
63,200$128,640($9)
12,766–$12,748–––

(NOTES)(*1): Methods to determine the estimated fair value of ﬁnancial instruments and other matters related to securities and derivativetransactions.
Assets:(1) Cash and bank deposits, and (2) 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:
Since negotiable certiﬁcate of deposits are settled in a short period of time, their carrying values approximate fair value.
The fair value of the other stocks is based on quoted market prices. The fair value of debt securities is based on either quoted market prices or prices provided by the ﬁnancial institutions making markets in these securities. For information on securities classiﬁed by holding purpose, please refer to (*5) Heldto-maturity and other securities with readily determinable fair value as at March 31, 2019 and 2018.
Liabilities:(4) Trade notes and accounts payable, and (5) Electronically recorded monetary claims:
Since these items are settled in a short period of time, their carrying value approximates fair value.

(*2): Financial instruments whose fair values are difﬁcult to estimate are as follows:
Millions of Yen
Unlisted securities (Carrying value)

2018
¥331

2019
¥333

Thousands of U.S.dollars ( Note 4 )2019$3,000The unlisted securities as stated above are not included in (3) Marketable securities and investments in securities because it is difﬁcult to estimate the fair value
based on the quoted market prices in active markets.

(*3) Redemption schedule for monetary claims and securities with maturities subsequent to the balance sheet date is as follows:

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

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

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

Millions of Yen
2019
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

Due
within 1 year
¥45,558
35,3671,000¥81,926

–
–

¥651
¥651

Millions of Yen
2018
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

Due
within 1 year
¥44,525
33,632
1,000¥79,157

–
–

¥350
¥350

Thousands of U.S.dollars ( Note 4 )2019
Due after 1 year
Due after 5 years
but within 5 years
but within 10 years
–
–
–
–

Due
within 1 year
$410,441
318,625
9,009$738,072––

33$5,865$5,865Due
after 10 years
–
–
–
–

Due
after 10 years
–
–
–
–

Due
after 10 years––––

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

Due within 1 year The second year––
¥1,105¥909¥1,105¥909

Millions of Yen
2019
The third year The fourth year
–
–
¥623
¥394
¥623
¥394

The ﬁfth year
–
¥220
¥220

Thereafter
–
¥206
¥206

Millions of Yen

2018
Long-term loans payable ………………
Lease obligations ………………………
Total ………………

Due within 1 year The second year––
¥1,296¥944¥1,296¥944

The third year
–
¥748
¥748

The fourth year
–
¥460
¥460

The ﬁfth year
–
¥239
¥239

Thereafter
–
¥198
¥198

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

Thousands of U.S.dollars ( Note 4 )2019
Due within 1 year The second year The third year The fourth year
The ﬁfth year
–
–
–
–
–
$9,955$8,197$5,614$3,556$1,985$9,955$8,197$5,614$3,556$1,985

Thereafter–$1,863$1,863(*5) Held-to-maturity and other securities with readily determinable fair value as at March 31, 2019 and 2018 are as follows:
Millions of Yen
2019
Fair value

Unrealized
gains (losses)

¥201

¥201

¥0

$1,811$1,811$0¥1,450¥1,448(¥2)$13,063$13,045($18)¥1,651¥1,649(¥1)$14,874$14,856($9)

Carrying value

Acquisition
cost

Unrealized
gains (losses)

Carrying value

Acquisition
cost

Unrealized
gains (losses)¥6,505
184
6,689¥3,650181
3,832¥2,8542
2,857$58,604
1,658
60,261$32,883
1,631
34,523$25,71218
25,739712–
712¥7,402799–
799¥4,632(87)–(87)¥2,769

6,414
–
6,414
$66,685

7,198
–
7,198
$41,730

(784)
–
(784)
$24,946

Carrying
value

Millions of Yen
2018
Fair
value

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

Other securities with carrying
value exceeding acquisition cost
Stocks ……………………………
Other ………………………………
Subtotal………………………
Other securities with carrying
value not exceeding acquisition cost
Stocks ……………………………
Other ………………………………
Subtotal………………………
Total …………………………

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

Other securities with carrying
value exceeding acquisition cost
Stocks ……………………………
Other ………………………………
Subtotal………………………
Other securities with carrying
value not exceeding acquisition cost
Stocks ……………………………
Other ………………………………
Subtotal………………………
Total …………………………

Thousands of U.S.dollars ( Note 4 )2019
Unrealized
Carrying value
Fair value
gains (losses)

Unrealized
gains (losses)¥1,350¥1,341(¥8)

Carrying
value

Acquisition
cost

Unrealized
gains (losses)¥6,606375
6,981¥3,546373
3,919¥3,059
2
3,061

394
2
396
¥7,378399
2402¥4,322(5)–(5)¥3,05634

(*6) Other securities sold for the year ended March 31, 2019 and 2018 are as follows:

Stocks ………………………………
Total ……………………………

Millions of Yen
2019
Total amount of Total amount ofSales amountloss on salegain on sale
¥241
¥141
¥0
¥241
¥141
¥0

Thousands of U.S.dollars ( Note 4 )2019Total amount of Total amount ofSales amountloss on salegain on sale
$2,176$1,274$0$2,176$1,274$0

Stocks ………………………………
Total ……………………………

Millions of Yen
2018
Total amount of Total amount ofSales amountloss on salegain on sale
¥300
¥250
–
¥300
¥250
–

Thousands of U.S.dollars ( Note 4 )2018
Total amount of Total amount ofSales amountloss on salegain on sale$2,838$2,366–$2,838$2,366–35

18. 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 schemeas part of its retirement beneﬁt plan.
(3) Employees’ pension fund: Since April 1, 1980, the Company has used an multi-employer contributory funded pension plan
as a supplement to its existing retirement beneﬁt scheme.
In addition, certain subsidiaries have lump-sum payment plans and a deﬁned beneﬁt corporate pension plan. They calculate theretirement beneﬁt expenses, and assets and liabilities for retirement beneﬁts by means of a simpliﬁed method.
The changes in the retirement beneﬁt obligation for the years ended March 31, 2019 and 2018 are as follows:
Millions of Yen
Balance at the beginning of the year ……………………………
Service cost ……………………………………………………
Interest cost ……………………………………………………
Actuarial loss ……………………………………………………
Retirement beneﬁts paid ………………………………………
Prior service cost ………………………………………………
Other ……………………………………………………………
Balance at the end of the year …………………………………

2019¥12,926
937
58
265
(676)
–
(53)
¥13,4582018¥12,008
885
56
176
(313)
63
50
¥12,926

Thousands of U.S.dollars( Note 4 )2019$116,450
8,441
523
2,387
(6,090)–(477)$121,243

The changes in plan assets for the years ended March 31, 2019 and 2018 are as follows:
Millions of Yen
Balance at the beginning of the year ……………………………
Expected return on plan assets ………………………………
Actuarial loss ……………………………………………………
Contributions by the Company ………………………………
Retirement beneﬁts paid ………………………………………
Other ……………………………………………………………
Balance at the end of the year …………………………………

2019¥10,661
264
(65)
909
(580)
(21)
¥11,168

36

2018¥9,733
242
(26)
935
(249)
25
¥10,661

Thousands of U.S.dollars( Note 4 )2019$96,045
2,378
(586)
8,189
(5,225)(189)$100,613

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as ofMarch 31, 2019 and 2018 for the Company’s and the consolidated subsidiaries’ deﬁned beneﬁts plans:

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

2019¥13,360(11,168)
2,191
97
2,289

2018
¥12,796(10,661)
2,135
129
2,265

Thousands of U.S.dollars( Note 4 )2019$120,360(100,613)
19,739874
20,622

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

2,289–¥2,2892,265–¥2,265

20,622–$20,622

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

The components of retirement beneﬁt expense for the years ended March 31, 2019 and 2018 are as follows:
Millions of Yen
2019
¥937
58
(264)
289
(3)
¥1,017

Service cost ……………………………………………………
Interest cost ……………………………………………………
Expected return on plan assets ……………………………
Amortization of actuarial loss ………………………………
Amortization of prior service cost …………………………
Retirement beneﬁt expense …………………………………

2018
¥885
56
(242)
304
59
¥1,064

Thousands of U.S.dollars( Note 4 )2019$8,441523(2,378)2,604(27)$9,162The components of retirement beneﬁts liability adjustments included in other comprehensive income (before tax effect) for theyears ended March 31, 2019 and 2018 are as follows:
Thousands of U.S.dollars
Millions of Yen

2019
(¥3)
(41)
(¥44)

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

2018
(¥3)
102
¥98

( Note 4 )
2019
($27)
(369)
($396)

The components of retirement beneﬁts liability adjustments included in accumulated other comprehensive income (before tax
effect) as of March 31, 2019 and 2018 are as follows:
Thousands of U.S.dollars
Millions of Yen

2019–(1,366)(¥1,366)

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

2018¥3(1,325)(¥1,322)( Note 4 )2019–(12,306)($12,306)

The fair value of plan assets, by major category, as a percentage of total plan assets as of March 31, 2019 and 2018 is as follows:
Millions of Yen
2019
2018
12%
12%
54%
56%
13%
13%
21%
19%
100%
100%

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

The expected return on plan assets has been estimated based on the anticipated allocation to each asset class and the expectedlong-term returns on assets held in each category.
The assumptions used in accounting for the above plans were as follows:**They are calculated by the weighted average method.
2019
0.6%
2.5%
5.0%

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

37

2018
0.7%
2.5%
5.1%

For deﬁned beneﬁt plans to which the simpliﬁed method is applied, the changes in the retirement beneﬁt obligation for the years
ended March 31, 2019 and 2018 are as follows:
Millions of Yen
2019
¥84
45
(19)
(24)
(0)
¥85

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

2018
¥82
38
(12)
(24)
0
¥84

Thousands of U.S.dollars( Note 4 )
2019
$757
405
(171)
(216)
(0)
$766

The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheet as ofMarch 31, 2019 and 2018 for the Company’s and the consolidated subsidiaries’ deﬁned beneﬁts plans:

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

2019
¥247
(296)
(48)
134
85

2018
¥224
(269)
(44)
129
84

Thousands of U.S.dollars( Note 4 )2019$2,225(2,667)
(432)
1,207
766

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

188
(102)
¥85

181
(96)
¥84

1,694
(919)
$766

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

Retirement beneﬁt expenses calculated using the simpliﬁed method for the years ended March 31, 2019 and 2018 are as follows:
Millions of Yen
2019
¥45

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

2018
¥38

Thousands of U.S.dollars( Note 4 )
2019
$405

Contributions to deﬁned contribution plans of the Company and its consolidated subsidiaries for the years ended March 31,
2019 and 2018 are as follows:
Millions of Yen
2019
¥581

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

38

2018
¥563

Thousands of U.S.dollars( Note 4 )2019$5,234

19. Income Taxes
Deferred tax assets and liabilities (both current and non-current) as at March 31, 2019 and 2018 consisted of the following elements:
Millions of Yen

Thousands of U.S.dollars(Note 4)

2019

2018

2019

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

¥177
840
734
1,306
228
136
555
1,246
¥5,225(1,185)(856)(2,041)¥3,184

¥192
826
729
972
305
156
585
1,137
¥4,905––(1,239)¥3,666$1,595
7,568
6,613
11,766
2,054
1,225
5,000
11,225$47,072(10,676)(7,712)(18,387)$28,685

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

–
(769)
(137)
(907)
¥2,276

(10)
(824)
(66)
(901)
¥2,764–(6,928)(1,234)(8,171)$20,505(NOTES)(* 1): Valuation allowance increased by ¥ 802 million. While valuation allowance of the Company decreased by ¥ 551 million, valuation
allowance of a consolidated subsidiary in North America increased by ¥ 1,204 million.
(* 2): A breakdown of net operating loss carryforwards and valuation allowance by expiry date as of March 31, 2019 is as follows:
Millions of Yen
2019
Due in One Yearor Less
Net operating loss forwards (a) …
Valuation allowance …………
Deferred tax assets ……………

–––Due after
One Year throughTwo Years–––

Due after
Due after
Due after
Two Years through Three Years through Four Years throughThree YearsFour Years
Five Years
–
–
–
–
–
–
–
–
–

Due after
Five Years

Total¥1,306(1,185)120¥1,306(1,185)120(b)

Due after
Five Years

Total$11,766(10,676)$1,081$11,766(10,676)$1,081(b)

Thousands of U.S. dollars ( Note 4 )2019
Due in One Yearor Less
Net operating loss forwards (a) …
Valuation allowance …………
Deferred tax assets ……………

–––Due after
One Year throughTwo Years–––

Due after
Due after
Due after
Two Years through Three Years through Four Years throughFour Years
Five Years
Three Years
–
–
–
–
–
–
–
–
–

(a): The amount is determined by multiplying the corresponding net operating loss carryforwards by the effective statutory tax rate.
(b): Deferred tax assets of ¥ 120 million are related to tax loss carryforwards of ¥ 1,306 million. The tax loss carryforwards for which theCompany recognized deferred tax assets are determined to be recoverable by expected future taxable income.

39

Reconciliation of the effective statutory tax rate and the actual tax rate is shown below:
Effective statutory tax rate ………………………………………………………
Adjustments:
Entertainment and other nondeductible expenses ………………………
Dividends and other nontaxable income ……………………………………
Inhabitant tax on per capita levy ………………………………………………
Nondeductible amortization of goodwill ……………………………………
Eliminated dividend received from subsidiaries……………………………
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 foreign subsidiaries' taxation rates …………………………
Equity in earnings of afﬁliates …………………………………………………
Others …………………………………………………………………………………
Actual tax rate …………………………………………………………………

40

2019
30.6%

2018
30.8%

0.7
(2.7)
0.6
0.7
3.1
(0.8)
(0.3)
5.9

0.6
(2.3)
0.6
0.8
2.5
(0.5)
(0.2)
(0.2)
2.4
(0.7)
(0.2)
0.2
33.8%

–
(0.3)
(0.4)
0.3
37.4%

20. Business Combinations
Business Combinations by Acquisition:(1) Outline(a) Name of Company and Description of Acquired Business
Name of Company: Service Tracking Systems, Inc. (hereinafter referred to as “STS”)
Description of Acquired Business : Valet Parking Business(b) Purpose of Business Acquisition
In addition to the market share of parking fee maintenance system which is Amano McGann, Inc. (hereinafter referred toas “AMI”) mainstream business, through the acquisition of the valet parking business from STS who pioneered the related
market and has the top market share, we are seeking further growth in the parking business in North America based on STS’s
products, services and customer base.
(c) Acquisition Date
February 2, 2018(d) Legal form for Business Combinations
Business Acquisition(e) Main basis for deciding on the acquirer
As AMI took over the bisiness in compensation for cash, AMI was determined to be an acquirer.
(2) Period of performance of the acquired company included in the consolidated ﬁnancial statements
From February 2, 2018 to December 31, 2018(3) Purchase Price
Acquisition price : ¥2,178 million (US$20.5 million)
Acquisition cost : ¥2,178 million (US$20.5 million)*Convert 1USD = JPY106.27: as of March 31, 2018(4) Goodwill(a) Amount of Goodwill¥519 million (US$4.892 million)*Convert 1USD = JPY106.27: as of March 31, 2018(b) Cause of occurence
Expected excess earning power of future by business expension from now on.
(c) Amortization method and period
Straightline method for 3 years(5) Amount and details of main acquisition related expenses
Remuneration and fees for Lawyer, Accountant, Advisory : ¥94 million (US$0.85 million)
Transactions under common control (Incorporation-type Company Split of consolidated subsidiary)(1) Outline of transactions(a) Name and content of the targeted businessTime distribution & authentication service, Time stamp service(b) Date of business combination
July 2, 2018(c) Legal form for Business Combinations
Incorporation-type company split in which Amano Business Solutions Corporation (hereinafter referred to as “ABS”) is the
splitting company and Amano Secure Japan Corporation is the newly established successor company.
(d) Company name after combination
Amano Secure Japan Corporation(e) Other Matters for outline of transactions
Following the enforcement of the Act on Electronic Signatures and Certiﬁcation Business (E-Signature Law) in the year
2000, the Amano Group started its timestamp service business in 2001.
In 2003, Amano Time Business Corporation (“ATB”) was established and in 2010, ATB was merged into ABS. ABS has continued to provide time certiﬁcation and distribution services as well as engaging in the timestamp service business as a part ofits business.
As demand for timestamp service has been increasing not only in Japan but also overseas, the Company has decided to spin
off this time certiﬁcation, distribution and timestamp service business from ABS and create a new subsidiary enabling faster
decision-making processes and to allow greater organizational independence for further expansion and growth of this business.
(2) Outline of implemented accounting
Accounted for as transactions under common control in accordance with “Accounting Standard for Business Combination” and“Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures”.

4121. Segment Information
The reportable segments of the Company are components for which discrete ﬁnancial information is available and whose operating results are regularly reviewed by the Executive Committee to make decisions about resource allocation and to assess performance.
The reportable segments are as follows:
1. Time information system business
2. Environment system business(1) Sales, proﬁts or losses, assets and other items by reportable segments
Millions of Yen
2019
Reportable segments
Time information Environment
Total
system business system businessNet sales:
Sales to third parties ……………………………
Intersegment sales and transfers ………………
Total ………………………………
Segment proﬁt or loss ……………………………
Segment assets ……………………………………
Depreciation and amortization …………………
Investment in equity-method afﬁliates …………
Increase in tangible and intangible ﬁxed assets …

¥96,665–
96,665
13,59071,224
4,706
1,843
4,020

¥35,047–
35,047
5,621
29,277565–
513¥131,713–
131,713
19,211
100,501
5,271
1,843
4,534

Adjustments/
Eliminations

Consolidated–––(¥4,049)
47,107577–
547¥131,713–
131,713
15,161
147,609
5,849
1,843
5,081

Adjustments/
Eliminations

Consolidated–––(¥3,884)
48,982573–
655¥124,405–
124,405
14,350145,446
5,063
1,681
5,659

Millions of Yen
2018
Reportable segments
Time information
Environment
system business system businessNet sales:
Sales to third parties ……………………………
Intersegment sales and transfers ………………
Total ………………………………
Segment proﬁt or loss ……………………………
Segment assets ……………………………………
Depreciation and amortization …………………
Investment in equity-method afﬁliates …………
Increase in tangible and intangible ﬁxed assets …

¥91,268–
91,26813,044
69,041
3,980
1,681
4,537

¥33,136–
33,136
5,189
27,422
509
–
466

Total
¥124,405–
124,405
18,23496,464
4,489
1,681
5,004

Thousands of U.S. dollars (Note 4)
2019
Reportable segments
Adjustments/
Time information Environment
Eliminations
Total
system business system businessNet sales:
Sales to third parties ……………………………
Intersegment sales and transfers ………………
Total ………………………………
Segment proﬁt or loss ……………………………
Segment assets ……………………………………
Depreciation and amortization …………………
Investment in equity-method afﬁliates …………
Increase in tangible and intangible ﬁxed assets …

$870,861–
870,861
122,437
641,658
42,397
16,61236,222$315,747–
315,747
50,641
263,762
5,097
–
4,626

42

$1,186,608–
1,186,608
173,078
905,420
47,495
16,612
40,848–––($36,484)
424,395
5,200
–
4,930

Consolidated$1,186,608–
1,186,608
136,594
1,329,815
52,694
16,61245,778

(2) Related Information
Geographic Segments
Information by geographic region for the years ended March 31, 2019 and 2018 is summarized as follows:
Millions of Yen

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

2019¥86,425
16,89528,392¥131,713

2018¥83,620
16,46924,315¥124,405

Millions of Yen

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

2019¥18,765
3,345¥22,111

Thousands of U.S.dollars(Note 4)

2019$778,610
152,209
255,787$1,186,608
Thousands of U.S.dollars(Note 4)

2018
¥20,745
3,234¥23,9802019$169,055
30,143$199,199(3) Information on both “amortization of goodwill” and “unamortized balance” by reportable segments as at and for theyears ended March 31, 2019 and 2018 is summarized as follows:

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

Millions of Yen
2019
Reportable segments
Time information Environment
Total
system business system business
¥485
60
¥545
¥2,598135¥2,734

Eliminations/
Corporate
–
–

Total
¥545
¥2,734

Millions of Yen
2018

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

Reportable segments
Time information
Environment
system business system business¥450
60¥2,695199

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

Thousands of U.S.dollars (Note 4)
2019
Reportable segments
Eliminations/Time information Environment
Corporate
Total
system business system business$4,375540$4,916––$23,412
1,223$24,635

Total¥511¥2,895

Eliminations/
Corporate
–
–

Total
¥511
¥2,895

Total$4,916$24,635(4) Information on “Impairment loss of ﬁxed assets” by reportable segments for the years ended March 31, 2019 is summarized as follows:

Impairment loss …………………………

Millions of Yen
Reportable segments
Time information Environment
Total
system business system business
¥220
–
¥220

Impairment loss …………………………

Thousands of U.S. dollars ( Note 4 )Reportable segments
Eliminations/Time information Environment
Corporate
Total
system business system business$1,988–$1,988–43

Eliminations/
Corporate
–

Total
¥220

Total
$1,988

22. Per Share Data
Net assets and net income per share as at and for the years ended March 31, 2019 and 2018 are as follows:(1) Net assets per share
Yen

Net assets per share ………………………………

2019¥1,417.86

U.S.dollars (Note 4)

2018¥1,381.90

The basis for these calculations is as follows:

Thousands of U.S.dollars(Note 4)

Millions of Yen

Total net assets in consolidated balance sheet …
Amount to be deducted from total net assets …
(Out of the above non-controlling interest portion) …
Net assets relating to common stock ……………

2019¥106,592
630(630)
105,9612019$12.7742018¥105,634
543(543)
105,0912019$960,290
5,682(5,682)
954,605

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

2019

2018

74,733,204

76,048,226(2) Net income per share
Yen

Net income per share2019¥121.17……………………………

U.S.dollars (Note 4)2018¥132.122019$1.092

Notes: Diluted net income per share is omitted as there were no potential shares with dilutive effect.
The basis for these calculations is as follows:
Millions of Yen

2019¥9,142
9,142

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

2018¥10,019
10,019
SharesAverage number of shares ofcommon stock outstanding during the year …

2019

2018

75,452,437

75,839,732

44

Thousands of U.S.dollars(Note 4)

2019$82,362
82,362

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

72 Sales Ofﬁces Located in major cities,
including

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

SAGAMIHARA Factory
HOSOE Factory

Board of Directors
Chairman & Representative Director(Outside) Directorr

Operating Ofﬁcers

Izumi NAKAJIMA

Isao KISHI
Kiyoshi KAWASHIMA
Michinobu OMORI

Susumu IKOMA
Tatsuo NIIHO
Masahiko MORITA
Myeong-Jin JEON
Tetsuhiro KONDO
Jun NAKAKURO
Sachio OTAKA
Takashi KASAI
Yoshihiko HATA
Hiroyuki KOBARI
Kirihito NINOMIYA
Fujinori TAZO

President & Representative Director

Hiroyuki TSUDA
Director & Managing Operating Ofﬁcer(Full-time) Audit & Supervisory Board Member

Takeshi AKAGI
Yasuhiro SASAYA

Toru UENO
Bungo NOGAWA

Director & Operating Ofﬁcer(Outside) Audit & Supervisory Board Member

Kunihiro IHARA
Manabu YAMAZAKI

Takehide ITONAGA
Hanae NAKAYA
Executive Operating Ofﬁcer

Hiroshi SHIRAISHIManaging Operating Ofﬁcer

Minoru YONEZAWA

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

9

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

10,11

13

4

6

12

3
15

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5

AMANO CORPORATION

16,17
18

8

22
19
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21

45

7
1,2

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